Annual report pursuant to Section 13 and 15(d)

Note 18 - Major Customers and Segment Information

v3.19.1
Note 18 - Major Customers and Segment Information
12 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
18.
MAJOR CUSTOMERS AND SEGMENT INFORMATION
 
During the years ended
December 31, 2018,
2017
and
2016,
Perenco was responsible for
$26.5
million or
10.3%,
$26.8
million or
15.2%
and
$28.4
million or
13.2%,
respectively, of the Company's total consolidated operating revenues. During the years ended
December 
31,
2018,
2017
and
2016,
the
ten
largest customers of the Company accounted for approximately
47%,
59%,
and
58%,
respectively, of the Company's operating revenues. The loss of
one
or more of these customers could have a material adverse effect on the Company's results of operations and cash flows.
 
For the years ended
December 
31,
2018,
2017
and
2016,
approximately
79%,
87%,
and
85%,
respectively, of the Company's operating revenues and $(
1.3
) million,
$1.9
million, and $(
4.2
) million, respectively, of equity in (losses) earnings from
50%
or less owned companies, net of tax, were derived from its foreign operations.
 
The Company's offshore support vessels are highly mobile and regularly and routinely move between countries within a geographic region of the world. In addition, these vessels
may
be redeployed among the geographic regions, subject to flag restrictions, as changes in market conditions dictate. Because of this asset mobility, operating revenues and long-lived assets in any
one
country and capital expenditures for long-lived assets and gains or losses on asset dispositions and impairments in any
one
geographic region are
not
considered meaningful.
 
The following tables summarize (in thousands) the operating results and property and equipment of the Company's reportable segments. Direct vessel profit is the Company's measure of segment profitability, a key metric in assessing the performance of its fleet. Direct vessel profit is defined as operating revenues less direct operating expenses excluding leased-in equipment expense. The Company utilizes direct vessel profit as its primary financial measure to analyze and compare the operating performance of its individual vessels, fleet categories, regions and combined fleet.
 
   
United States
(primarily Gulf
of Mexico)
   
Africa
(primarily
West Africa)
   
Middle East
and Asia
   
Brazil, Mexico, Central and
South America
   
Europe
(primarily
North Sea)
   
Total
 
For the year ended
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues:
                                               
Time charter
  $
38,802
    $
43,847
    $
50,072
    $
17,343
    $
72,188
    $
222,252
 
Bareboat charter
   
     
— 
     
     
4,635
     
     
4,635
 
Other
   
14,762
     
7,661
     
(887
   
1,554
     
3,632
     
26,722
 
     
53,564
     
51,508
     
49,185
     
23,532
     
75,820
     
253,609
 
Direct Costs and Expenses:
                                               
Operating:
                                               
Personnel
   
18,708
     
16,538
     
16,806
     
4,399
     
38,577
     
95,028
 
Repairs and maintenance
   
5,152
     
6,330
     
11,172
     
1,011
     
9,614
     
33,279
 
Drydocking
   
1,957
     
2,085
     
1,362
     
128
     
6,055
     
11,587
 
Insurance and loss reserves
   
2,922
     
1,096
     
1,371
     
495
     
1,190
     
7,074
 
Fuel, lubes and supplies
   
3,568
     
3,826
     
4,027
     
1,225
     
4,329
     
16,975
 
Other
   
393
     
4,313
     
3,980
     
1,130
     
1,332
     
11,148
 
     
32,700
     
34,188
     
38,718
     
8,388
     
61,097
     
175,091
 
Direct Vessel Profit
  $
20,864
    $
17,320
    $
10,467
    $
15,144
    $
14,723
     
78,518
 
Other Costs and Expenses:
                                               
Operating:
                                               
Leased-in equipment
  $
7,420
    $
3,843
    $
    $
    $
212
     
11,475
 
Administrative and general
   
 
     
 
     
 
     
 
     
 
     
52,813
 
Depreciation and amortization
  $
23,227
    $
10,453
    $
18,762
    $
7,908
    $
11,896
     
72,246
 
     
 
     
 
     
 
     
 
     
 
     
136,534
 
Losses on Asset Dispositions and Impairments, Net    
 
     
 
     
 
     
 
     
 
     
(8,747
Operating Loss
   
 
     
 
     
 
     
 
     
 
    $
(66,763
As of
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property and Equipment:
                                               
Historical cost
  $
432,336
    $
184,361
    $
306,897
    $
124,177
    $
194,963
    $
1,242,734
 
Accumulated depreciation
   
(224,737
   
(55,206
   
(81,378
   
(57,002
   
(142,949
   
(561,272
    $
207,599
    $
129,155
    $
225,519
    $
67,175
    $
52,014
    $
681,462
 
Total Assets
(1)
  $
351,748
    $
140,335
    $
260,002
    $
137,983
    $
59,716
    $
949,784
 

(
1
)
Total assets exclude
$153,151
thousand of corporate assets.
 
   
United States
(primarily Gulf
of Mexico)
   
Africa
(primarily
West Africa)
   
Middle East
and Asia
   
Brazil, Mexico, Central and
South America
   
Europe
(primarily
North Sea)
   
Total
 
For the year ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues:
                                               
Time charter
  $
18,079
    $
32,866
    $
33,410
    $
2,977
    $
73,213
    $
160,545
 
Bareboat charter
   
     
     
     
4,636
     
     
4,636
 
Other
   
4,217
     
1,080
     
474
     
552
     
2,279
     
8,602
 
     
22,296
     
33,946
     
33,884
     
8,165
     
75,492
     
173,783
 
Direct Costs and Expenses:
                                               
Operating:
                                               
Personnel
   
15,621
     
13,419
     
16,883
     
809
     
34,768
     
81,500
 
Repairs and maintenance
   
3,594
     
5,957
     
9,037
     
274
     
8,793
     
27,655
 
Drydocking
   
1,828
     
2,180
     
968
     
     
4,059
     
9,035
 
Insurance and loss reserves
   
3,286
     
677
     
1,444
     
316
     
801
     
6,524
 
Fuel, lubes and supplies
   
1,485
     
2,815
     
3,727
     
223
     
3,782
     
12,032
 
Other
   
249
     
3,319
     
5,240
     
117
     
980
     
9,905
 
     
26,063
     
28,367
     
37,299
     
1,739
     
53,183
     
146,651
 
Direct Vessel Profit (Loss)
  $
(3,767
)
  $
5,579
    $
(3,415
)
  $
6,426
    $
22,309
     
27,132
 
Other Costs and Expenses:
                                               
Operating:
                                               
Leased-in equipment
  $
8,152
    $
3,870
    $
862
    $
    $
64
     
12,948
 
Administrative and general
   
 
     
 
     
 
     
 
     
 
     
56,217
 
Depreciation and amortization
  $
22,060
    $
9,280
    $
17,724
    $
3,608
    $
10,107
     
62,779
 
     
 
     
 
     
 
     
 
     
 
     
131,944
 
Losses on Asset Dispositions and Impairments, Net    
 
     
 
     
 
     
 
     
 
     
(23,547
)
Operating Loss
   
 
     
 
     
 
     
 
     
 
    $
(128,359
)
As of December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property and Equipment:
                                               
Historical cost
  $
410,475
    $
192,600
    $
326,378
    $
72,484
    $
177,899
    $
1,179,836
 
Accumulated depreciation
   
(230,636
)
   
(57,228
)
   
(100,435
)
   
(37,281
)
   
(134,580
)
   
(560,160
)
    $
179,839
    $
135,372
    $
225,943
    $
35,203
    $
43,319
    $
619,676
 
Total Assets
(1)
  $
310,675
    $
140,173
    $
234,471
    $
103,135
    $
50,704
    $
839,158
 

(
1
)
Total assets exclude
$169,346
thousand of corporate assets
.
 
   
United States
(primarily Gulf
of Mexico)
   
Africa
(primarily
West Africa)
   
Middle East
and Asia
   
Brazil, Mexico, Central and
South America
   
Europe
(primarily
North Sea)
   
Total
 
For the year ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues:
                                               
Time charter
  $
28,902
    $
36,706
    $
41,657
    $
196
    $
78,866
    $
186,327
 
Bareboat charter
   
     
     
     
8,833
     
     
8,833
 
Other
   
3,954
     
856
     
12,230
     
1,180
     
2,256
     
20,476
 
     
32,856
     
37,562
     
53,887
     
10,209
     
81,122
     
215,636
 
Direct Costs and Expenses:
                                               
Operating:
                                               
Personnel
   
22,305
     
12,628
     
18,381
     
2,117
     
39,713
     
95,144
 
Repairs and maintenance
   
2,721
     
2,628
     
6,426
     
232
     
9,275
     
21,282
 
Drydocking
   
228
     
1,098
     
2,117
     
     
4,378
     
7,821
 
Insurance and loss reserves
   
3,363
     
539
     
731
     
43
     
1,006
     
5,682
 
Fuel, lubes and supplies
   
1,392
     
2,512
     
4,215
     
21
     
3,948
     
12,088
 
Other
   
271
     
2,519
     
3,247
     
114
     
1,180
     
7,331
 
     
30,280
     
21,924
     
35,117
     
2,527
     
59,500
     
149,348
 
Direct Vessel Profit
  $
2,576
    $
15,638
    $
18,770
    $
7,682
    $
21,622
     
66,288
 
Other Costs and Expenses:
                                               
Operating:
                                               
Leased-in equipment
  $
7,975
    $
3,898
    $
4,389
    $
913
    $
402
     
17,577
 
Administrative and general
   
 
     
 
     
 
     
 
     
 
     
49,308
 
Depreciation and amortization
  $
27,052
    $
6,720
    $
11,550
    $
4,083
    $
8,664
     
58,069
 
     
 
     
 
     
 
     
 
     
 
     
124,954
 
Losses on Asset Dispositions and Impairments, Net    
 
     
 
     
 
     
 
     
 
     
(116,222
)
Operating Loss
   
 
     
 
     
 
     
 
     
 
    $
(174,888
)
As of December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property and Equipment:
                                               
Historical cost
  $
404,226
    $
136,428
    $
197,389
    $
57,744
    $
162,972
    $
958,759
 
Accumulated depreciation
   
(233,075
)
   
(60,794
)
   
(97,433
)
   
(34,455
)
   
(114,862
)
   
(540,619
)
    $
171,151
    $
75,634
    $
99,956
    $
23,289
    $
48,110
    $
418,140
 
Total Assets
(1)
  $
325,190
    $
96,847
    $
140,166
    $
94,373
    $
84,783
    $
992,692
 

(
1
)
Total assets exclude
$22,427
thousand of corporate assets.
 
The Company's investments in
50%
or less owned companies, which are accounted for under the equity method, also contribute to its consolidated results of operations. As of
December 
31,
2018,
the Company's investments, at equity and advances to
50%
or less owned companies in MexMar and its other
50%
or less owned companies were
$53.8
million and
$65.8
million, respectively (see Note
4
). Equity in (losses) earnings of
50%
or less owned companies, net of tax for the years ended
December 31
were as follows (in thousands):
 
   
2018
   
2017
   
2016
 
MexMar
  $
2,736
    $
10,103
    $
3,556
 
Other
   
(6,151
)    
(6,026
)
   
(9,870
)
    $
(3,415
)   $
4,077
    $
(6,314
)