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Marine Log

February 22, 2007

SEACOR reports fourth quarter results

SEACOR Holdings Inc. (NYSE:CKH) reported net income for the fourth quarter ended December 31, 2006 of $58.4 million, or $2.12 per diluted share, on operating revenues of $337.2 million. For the twelve months ended December 31, 2006, net income was $234.4 million, or $8.44 per diluted share, on operating revenues of $1,323.4 million.

For the fourth quarter ended December 31, 2005, net income was $106.5 million, or $3.76 per diluted share, on operating revenues of $334.1 million. For the twelve months ended December 31, 2005, net income was $170.7 million, or $6.95 per diluted share, on operating revenues of $972.0 million. As a result of the repatriation of foreign earnings under the provisions of the American Job Creation Act of 2004, net income for the fourth quarter ended December 31, 2005 included a $46.2 million income tax benefit, or $1.61 per diluted share, and a foreign currency gain of $10.7 million, net of tax, or $0.37 per diluted share.

For the quarter ended September 30, 2006, the company reported net income of $63.2 million, or $2.28 per diluted share, on operating revenues of $349.4 million.

Highlights for the Quarter

Offshore Marine Services -- Operating income in the fourth quarter was $75.2 million on operating revenues of $174.8 million compared to operating income of $70.6 million on operating revenues of $179.7 million in the preceding quarter. Fourth quarter results included $13.8 million in gains on asset dispositions compared to $10.2 million in gains in the preceding quarter.

Overall average day rates continued to improve increasing from $9,564 per day to $10,447 per day. The most significant improvements were in the Gulf of Mexico and West Africa, where average day rates increased by 13.9% and 4.7%, respectively. Average rates were also significantly higher in the Middle East due to more sophisticated equipment operating in that region.

The number of days worked in the fourth quarter declined by 1,977 or 10.9%. This was due to a combination of lower overall utilization, which fell from 87.7% to 82.3%, and a 1,065, or 5.1% reduction in the number of days available for charter, as a result of a net decrease in fleet count.

Utilization improved in all international regions except in West Africa where there was a heavy drydock and repair schedule in the fourth quarter. In the Gulf of Mexico demand for anchor handling, supply and towing supply vessels remained at high levels with most vessels remaining fully utilized except for reasons of survey or repair. Demand for crew boats and mini-supply vessels decreased due to a reduction in shelf activity and a seasonal decline in construction activity.

Marine Transportation Services -- Operating income in the fourth quarter was $2.2 million on operating revenues of $34.4 million compared with operating income of $3.4 million on operating revenues of $35.6 million in the preceding quarter.

The decrease in operating income was primarily due to one vessel being off-hire for the entire quarter while undergoing a retrofit to a double-hull configuration and completing a regulatory dry-docking.

Inland River Services -- Operating income in the fourth quarter was $16.1 million on operating revenues of $37.8 million compared with operating income of $15.4 million on operating revenues of $38.8 million in the preceding quarter.

Operating revenues were slightly lower due to a reduction in available barge days following the return of 20 barges that had been chartered-in on a multi year arrangement and the contribution of 27 barges into a new joint venture company.

The improvement in operating income was primarily due to a reduction in towing costs because of lower fuel prices and the reduction in fleet size.

Aviation Services -- Operating income in the fourth quarter was $3.4 million on operating revenues of $38.9 million compared to an operating income of $3.7 million on operating revenues of $43.8 million in the preceding quarter. Fourth quarter results included $7.1 million in gains on asset dispositions compared to $1.9 million in gains in the preceding quarter.

The decrease in operating income was primarily due to seasonal factors affecting revenues generated from flightseeing operations in Alaska which were inactive in the fourth quarter together with a decrease in flight hours in the Gulf of Mexico because of adverse weather conditions.

Environmental Services -- Operating income in the fourth quarter was $4.6 million on operating revenues of $40.8 million compared to operating income of $5.9 million on operating revenues of $38.9 million in the preceding quarter. The decrease in operating income was primarily due to lower revenues from retainer service contracts and response services, partially offset by higher revenues from project management and consulting activity.

Derivative Transactions -- Derivative transactions, primarily consisting of interest rate swaps and foreign currency contracts, resulted in gains of $3.3 million in the fourth quarter compared to gains of $2.8 million in the preceding quarter.

Foreign Currency Transactions -- Foreign currency transaction gains were $0.3 million in the fourth quarter compared to $0.7 million in the preceding quarter.

Marketable Security Transactions -- Marketable security and short sale transactions resulted in losses of $6.6 million in the fourth quarter compared to gains of $4.5 million in the preceding quarter.

Equity in Earnings (Losses) of 50% or Less Owned Companies -- Equity losses from joint ventures were $0.2 million in the fourth quarter compared to earnings of $2.6 million in the preceding quarter. During the fourth quarter the Company provided $7.0 million for income taxes on the accumulated earnings of certain foreign joint ventures which had previously been deemed permanently reinvested overseas. Additionally, the company recognized earnings of $5.0 million, net of tax, on the fourth quarter disposition of an asset from one of its foreign joint ventures.

Capital Commitments -- The company's unfunded capital commitments as of December 31, 2006 consisted primarily of marine service vessels, harbor tugs, helicopters, barges and capital improvements to certain of the existing marine transportation fleet and totaled $567.9 million, of which $335.9 million is payable in 2007, with the remaining balance payable through 2009. Of these commitments, approximately $177.3 million may be terminated without further liability other than the payment of liquidated damages of $26.9 million in the aggregate. Subsequent to the end of the quarter the company committed to purchase additional property and equipment for $70.1 million. As of December 31, 2006 the company held balances of Cash, Cash Equivalents, Restricted Cash, Securities, Construction Reserve Funds and Title XI Reserve Funds totaling $925.7 million.

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