Costs Wave Rocks Superior Offshore

US deep-water construction and subsea services group Superior Offshore saw first quarter earnings fall as it was forced to shell out on vessel charters and equipment rentals due to the drydocking for maintenance of the Superior Endeavour.

The company managed to boost its revenue during the period by providing services using third-party equipment, but the gains were offset by higher rental, labour and insurance costs.

Superior also said its available vessels saw lower utilisation rates than in the year-ago period, when customers paid higher rates to engage vessels to repair damage in the wake of hurricanes Kathrina and Rita.

The company said its first quarter was usually a low-activity period due to harsh weather in the Gulf of Mexico.

Superior reported net earnings of $6.2m, or 42¢ a share, compared with $11.9m, or 80¢ a share, in the first quarter of 2005.

Revenues for the period rose to $54.3m from $49.4m previously.

The company saw income from operations fall to $9m from $18.7m previously as costs rose.

The company said it was also working to expand its operations internationally after winning a contract to provide services to a major project off Trinidad, starting in mid-June.