SEACOR Holdings Announces Third Quarter Results

FORT LAUDERDALE, FL -- (MARKET WIRE) -- October 26, 2006 -- SEACOR Holdings Inc. (NYSE: CKH) announced net income for the third quarter ended September 30, 2006 of $63.2 million, or $2.28 per diluted share, on operating revenues of $349.4 million. For the nine months ended September 30, 2006, net income was $176.0 million, or $6.32 per diluted share, on operating revenues of $986.3 million.

For the third quarter ended September 30, 2005, net income was $20.5 million, or $0.76 per diluted share, on operating revenues of $294.9 million. For the nine months ended September 30, 2005, net income was $64.2 million, or $2.81 per diluted share, on operating revenues of $637.9 million. The results for the three and nine months ended September 30, 2005 include the 2005 third quarter results of Seabulk International, Inc. which was acquired by the Company on July 1, 2005.

For the immediately preceding quarter ended June 30, 2006, the Company reported net income of $62.8 million, or $2.24 per diluted share, on operating revenues of $331.0 million.

Highlights for the Quarter

Offshore Marine Services -- Operating Income in the third quarter was $70.6 million on operating revenues of $179.7 million compared to operating income of $70.8 million on operating revenues of $168.3 million in the preceding quarter. Third quarter results included $10.2 million in gains on asset dispositions compared to $22.5 million in gains in the preceding quarter.

Overall fleet utilization was slightly higher in the third quarter at 87.7% compared to 86.8% in the preceding quarter. In the third quarter the number of days available for charter was lower by 934 days, or 4.3% as a result of a net reduction in the overall fleet count.

The improvement in operating revenues was primarily driven by a 10.4% increase in average day rates from $8,663 per day to $9,564 per day. The most significant improvements were in the Gulf of Mexico and West Africa, where average day rates increased by 10.4% and 14.8%, respectively.

Operating expenses in the third quarter were $89.8 million, an increase of $3.1 million over the previous quarter. The majority of the increase related to higher insurance costs, expenses incurred in the mobilization of three vessels between regions and higher wage costs in the Gulf of Mexico.

Marine Transportation Services -- Operating income in the third quarter was $3.4 million on operating revenues of $35.6 million compared to operating income of $8.2 million on operating revenues of $37.4 million in the preceding quarter.

Operating revenues decreased primarily due to one vessel being off-hire for a regulatory docking and an overall decrease in contract of affreightment revenue.

Operating expenses increased $3.0 million primarily due to higher general maintenance and repair expenses and insurance costs and a $1.6 million regulatory docking during the quarter.

Inland River Services -- Operating income in the third quarter was $15.4 million on operating revenues of $38.8 million compared to operating income of $13.6 million on operating revenues of $36.3 million in the preceding quarter.

Operating revenues increased primarily due to improved spot and charter rates. Operating expenses were comparable with the preceding quarter as increased towing costs and vendor service charges were offset by a reduction in charter-in expenses. During the quarter the company returned 158 barges that had been chartered-in on a multi-year arrangement.

Aviation Services -- Operating income in the third quarter was $3.7 million on operating revenues of $43.8 million compared to an operating income of $3.8 million on operating revenues of $39.9 million in the preceding quarter. Third quarter results included $1.9 million in gains on asset dispositions compared to $1.8 million in gains in the preceding quarter.

Operating expenses increased $4.1 million primarily due to wage and training costs in preparation of new contracts, fuel costs due to increased flight hours and repair and maintenance expenses incurred for overhauls on major components completed in the third quarter.

Environmental Services -- Operating income in the third quarter was $5.9 million on operating revenues of $38.9 million compared to operating income of $4.5 million on operating revenues of $36.9 million in the preceding quarter.

The improvement in operating income was primarily due to higher revenues from retainer service contracts and increased project management and consulting activity.

Derivative Transactions -- Derivative transactions, primarily consisting of interest rate swaps and foreign currency contracts, resulted in gains of $2.8 million in the third quarter compared to gains of $3.1 million in the preceding quarter.

Foreign Currency Transactions -- Foreign currency transaction gains were $0.7 million in the third quarter compared to gains of $1.2 million in the preceding quarter.

Marketable Security Transactions -- Marketable security and short sale transactions resulted in gains of $4.5 million in the third quarter compared to losses of $3.3 million in the preceding quarter.

Equity in Earnings of 50% or Less owned Companies -- Earnings were $2.6 million in the third quarter compared to $6.0 million in the preceding quarter. In the second quarter one of the Company's offshore marine joint ventures sold a vessel to a third party and the Company's share of the gain on the sale was $4.2 million.

Capital Commitments -- The Company's unfunded capital commitments as of September 30, 2006 consisted primarily of marine service vessels, harbor tugs, helicopters, barges and capital improvements to certain of the existing marine transportation fleet and totaled $685.8 million, of which $474.8 million is payable in 2006 and 2007, with the remaining balance payable through 2009. Of these commitments, approximately $183.8 million may be terminated without further liability other than the payment of liquidated damages of $9.9 million in the aggregate. As of September 30, 2006 the Company held balances of Cash, Cash Equivalents, Restricted Cash, Securities, Construction Reserve Funds and Title XI Reserve Funds totaling $839.1 million.

SEACOR is a global provider of marine support and transportation services, primarily to the energy and chemical industries. SEACOR and its subsidiaries provide customers with a full suite of marine-related services including offshore services, U.S. coastwise shipping, inland river services, helicopter services, environmental services, and offshore and harbor towing services. SEACOR is uniquely focused on providing highly responsive local service, combined with the highest safety standards, innovative technology, modern efficient equipment, and dedicated, professional employees.

This release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements concerning management's expectations, strategic objectives, business prospects, anticipated economic performance and financial condition and other similar matters involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of results to differ materially from any future results, performance or achievements discussed or implied by such forward-looking statements. Such risks, uncertainties and other important factors include, among others: the cyclical nature of the oil and gas industry, activity in foreign countries and changes in foreign political, military and economic conditions, the dependence of Offshore Marine Services, Marine Transportation Services and Aviation Services on several customers, industry fleet capacity, consolidation of our customer base, the ongoing need to replace aging vessels, restrictions imposed by the Shipping Acts and Aviation Acts on the amount of foreign ownership of the Company's Common Stock, increased competition if the Jones Act is repealed, safety record requirements related to Offshore Marine Services and Aviation Services, changes in foreign and domestic oil and gas exploration and production activity, vessel and helicopter-related risks of Offshore Marine Services and Aviation Services, effects of adverse weather conditions and seasonality on Aviation Services, decreased demand for our tanker and towing services due to construction of additional refined petroleum product, natural gas or crude oil pipelines or due to decreased demand for refined petroleum products, crude oil or chemical products or a change in existing methods of delivery, future phase-out of our single-hull tankers, dependence of spill response revenue on the number and size of spills and upon continuing government regulation in this area and our ability to comply with such regulation and other governmental regulation, changes in NRC's OSRO classification, liability in connection with providing spill response services, effects of adverse weather and river conditions and seasonality on inland river operations, the level of grain export volume, the effect of fuel prices on barge towing costs, variability in freight rates for inland river barges, the effect of international economic and political factors in inland river operations, the intense competition faced by Inland River Services, adequacy of insurance coverage, compliance with government regulation, including environmental laws and regulations, currency exchange fluctuations, the attraction and retention of qualified personnel by the Company, our integration of the internal controls and procedures of Seabulk International, Inc. to continue our compliance with the Sarbanes-Oxley Act of 2002 and various other matters, many of which are beyond the Company's control and other factors. In addition, these statements constitute our cautionary statements under the Private Securities Litigation Reform Act of 1995. You should understand that it is not possible to predict or identify all such factors. Consequently, you should not consider the following to be a complete discussion of all potential risks or uncertainties. The words "estimate," "project," "intend," "believe," "plan" and similar expressions are intended to identify forward-looking statements. Forward-looking statements speak only as of the date of the document in which they are made. We disclaim any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in our expectations or any change in events, conditions or circumstances on which the forward-looking statement is based. The forward-looking statements in this release should be evaluated together with the many uncertainties that affect our businesses, particularly those mentioned under "Forward-Looking Statements" in Item 7 of our Form 10-K and SEACOR's periodic reporting on Form 10-Q and Form 8-K (if any), which we incorporate by reference.

For additional information, contact Timothy McKeand, Vice President, at (954) 524-4200 ext. 820 or visit SEACOR's website at www.seacorholdings.com.

 SEACOR HOLDINGS INC.
 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
 (in thousands, except per share data, unaudited)


 Three Months Ended Nine Months Ended
 September 30, September 30,
 ------------------------ -----------------------
 2006 2005 2006 2005
 ----------- ----------- ----------- -----------

Operating Revenues $ 349,361 $ 294,869 $ 986,262 $ 637,885
 ----------- ----------- ----------- -----------

Costs and Expenses:
 Operating expenses 196,608 180,136 553,401 412,916
 Administrative and
 general 30,880 31,115 95,238 68,939
 Depreciation and
 amortization 40,977 46,535 126,555 83,309
 ----------- ----------- ----------- -----------
 268,465 257,786 775,194 565,164
 ----------- ----------- ----------- -----------

Gains (Losses) on Asset
 Dispositions and
 Impairments, Net 12,054 (618) 57,020 14,710
 ----------- ----------- ----------- -----------

Operating Income 92,950 36,465 268,088 87,431
 ----------- ----------- ----------- -----------

Other Income (Expense):
 Interest income 10,279 4,754 26,501 12,917
 Interest expense (13,307) (16,541) (40,222) (31,682)
 Derivative
 transaction gains
 (losses), net 2,813 (4,425) 3,085 (6,193)
 Foreign currency
 transaction gains,
 net 650 2,436 2,026 6,288
 Marketable security
 transaction gains
 (losses), net 4,549 10,388 (2,377) 25,124
 Other, net 117 891 740 1,531
 ----------- ----------- ----------- -----------
 5,101 (2,497) (10,247) 7,985
 ----------- ----------- ----------- -----------
Income from Continuing
 Operations Before
 Income Tax Expense,
 Minority Interest in
 (Income) Loss of
 Subsidiaries and
 Equity In Earnings of
 50% or Less Owned
 Companies 98,051 33,968 257,841 95,416
Income Tax Expense 37,037 13,894 96,171 36,082
 ----------- ----------- ----------- -----------
Income from Continuing
 Operations Before
 Minority Interest in
 (Income) Loss of
 Subsidiaries and
 Equity in Earnings of
 50% or Less Owned
 Companies 61,014 20,074 161,670 59,334
Minority Interest in
 (Income) Loss of
 Subsidiaries (451) 223 (638) 103
Equity in Earnings of
 50% or Less Owned
 Companies 2,607 200 15,007 4,411
 ----------- ----------- ----------- -----------
Income from Continuing
 Operations 63,170 20,497 176,039 63,848
Income from
 Discontinued
 Operations, Net of Tax 364
 ----------- ----------- ----------- -----------
Net Income $ 63,170 $ 20,497 $ 176,039 $ 64,212
 =========== =========== =========== ===========

Basic Earnings Per
 Common Share:
 Income from
 Continuing
 Operations $ 2.57 $ 0.83 $ 7.11 $ 3.12
 Income from
 Discontinued
 Operations 0.01
 ----------- ----------- ----------- -----------
 Net Income $ 2.57 $ 0.83 $ 7.11 $ 3.13
 =========== =========== =========== ===========

Diluted Earnings Per
 Common Share:
 Income from
 Continuing
 Operations $ 2.28 $ 0.76 $ 6.32 $ 2.79
 Income from
 Discontinued
 Operations 0.02
 ----------- ----------- ----------- -----------
 Net Income $ 2.28 $ 0.76 $ 6.32 $ 2.81
 =========== =========== =========== ===========

Weighted Average Common
 Shares Outstanding:
 Basic 24,575 24,789 24,743 20,486
 Diluted 28,282 28,562 28,448 24,151



 SEACOR HOLDINGS INC.
 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
 (in thousands, except per share data, unaudited)



 Three Months Ended
 ----------------------------------------------------
 Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
 2006 2006 2006 2005 2005
 --------- --------- --------- --------- ---------

Operating Revenues $ 349,361 $ 330,986 $ 305,915 $ 334,119 $ 294,869
 --------- --------- --------- --------- ---------

Costs and Expenses:
 Operating expenses 196,608 187,149 169,644 177,012 180,136
 Administrative and
 general 30,880 32,865 31,493 36,256 31,115
 Depreciation and
 amortization 40,977 42,318 43,260 44,405 46,535
 --------- --------- --------- --------- ---------
 268,465 262,332 244,397 257,673 257,786
 --------- --------- --------- --------- ---------

Gains (Losses) on
 Asset Dispositions
 and Impairments,Net 12,054 24,089 20,877 13,575 (618)
 --------- --------- --------- --------- ---------

Operating Income 92,950 92,743 82,395 90,021 36,465
 --------- --------- --------- --------- ---------

Other Income
 (Expense):
Interest income 10,279 9,086 7,136 6,284 4,754
Interest expense (13,307) (12,847) (14,068) (16,470) (16,541)
 Derivative
 transaction gains
 (losses), net 2,813 3,084 (2,812) (881) (4,425)
 Foreign currency
 transaction
 gains, net 650 1,217 159 16,895 2,436
 Marketable
 security
 transaction gains
 (losses), net 4,549 (3,341) (3,585) 2,957 10,388
 Other, net 117 595 28 176 891
 --------- --------- --------- --------- ---------
 5,101 (2,206) (13,142) 8,961 (2,497)
 --------- --------- --------- --------- ---------
Income Before Income
 Tax Expense
 (Benefit), Minority
 Interest in (Income)
 Loss of
 Subsidiaries and
 Equity In Earnings
 of 50% or Less
 Owned Companies 98,051 90,537 69,253 98,982 33,968
Income Tax Expense
 (Benefit) 37,037 33,703 25,431 (6,336) 13,894
 --------- --------- --------- --------- ---------
Income Before
 Minority Interest
 in (Income) Loss of
 Subsidiaries and
 Equity in Earnings
 of 50% or Less
 Owned Companies 61,014 56,834 43,822 105,318 20,074
Minority Interest in
 (Income) Loss of
 Subsidiaries (451) (104) (83) (71) 223
Equity in Earnings
 of 50% or Less
 Owned Companies 2,607 6,031 6,369 1,250 200
 --------- --------- --------- --------- ---------
Net Income $ 63,170 $ 62,761 $ 50,108 $ 106,497 $ 20,497
 ========= ========= ========= ========= =========

Basic Earnings Per
 Common Share $ 2.57 $ 2.52 $ 2.02 $ 4.28 $ 0.83

Diluted Earnings Per
 Common Share $ 2.28 $ 2.24 $ 1.80 $ 3.76 $ 0.76

Weighted Average
 Common Shares
 Outstanding:
 Basic 24,575 24,869 24,767 24,884 24,789
 Diluted 28,282 28,568 28,495 28,618 28,562
Common Shares
 Outstanding at
 Period End 24,457 24,801 25,076 24,819 25,009



 SEACOR HOLDINGS INC.
 OPERATING INCOME (LOSS) BY LINE OF BUSINESS
 (in thousands, unaudited)


 Three Months Ended
 ----------------------------------------------------
 Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
 2006 2006 2006 2005 2005
 --------- --------- --------- --------- ---------
Offshore Marine
 Services
Operating Revenues $ 179,687 $ 168,285 $ 159,852 $ 168,823 $ 146,842
 ---------- --------- --------- --------- ---------
Costs and Expenses:
 Operating expenses 89,791 86,695 79,506 85,377 82,726
 Administrative and
 general 10,118 11,470 11,688 12,809 11,290
 Depreciation and
 amortization 19,353 21,793 23,127 22,772 25,040
 ---------- --------- --------- --------- ---------
 119,262 119,958 114,321 120,958 119,056
 ---------- --------- --------- --------- ---------

Gains on Asset
 Dispositions and
 Impairments, Net 10,168 22,489 20,552 6,578 (905)
 ---------- --------- --------- --------- ---------
Operating Income $ 70,593 $ 70,816 $ 66,083 $ 54,443 $ 26,881
 ========== ========= ========= ========= =========

Marine
 Transportation
 Services
Operating Revenues $ 35,617 $ 37,446 $ 37,724 $ 36,625 $ 35,723
 ---------- --------- --------- --------- ---------
Costs and Expenses:
 Operating expenses 21,017 18,064 21,471 17,677 24,692
 Administrative and
 general 1,064 1,049 964 874 705
 Depreciation and
 amortization 10,159 10,162 10,185 11,641 11,663
 ---------- --------- --------- --------- ---------
 32,240 29,275 32,620 30,192 37,060
 ---------- --------- --------- --------- ---------

Gains on Asset
 Dispositions 
 ---------- --------- --------- --------- ---------
Operating Income
 (Loss) $ 3,377 $ 8,171 $ 5,104 $ 6,433 $ (1,337)
 ========== ========= ========= ========= =========

Inland River
 Services
Operating Revenues $ 38,798 $ 36,339 $ 34,488 $ 40,666 $ 29,702
 ---------- --------- --------- --------- ---------
Costs and Expenses:
 Operating expenses 18,563 18,649 15,395 18,498 17,203
 Administrative and
 general 1,013 829 816 691 644
 Depreciation and
 amortization 3,804 3,267 3,474 3,479 3,151
 ---------- --------- --------- --------- ---------
 23,380 22,745 19,685 22,668 20,998
 ---------- --------- --------- --------- ---------

Gains on Asset
 Dispositions 
 ---------- --------- --------- --------- ---------
Operating Income $ 15,418 $ 13,594 $ 14,803 $ 17,998 $ 8,704
 ========== ========= ========= ========= =========

Aviation Services
Operating Revenues $ 43,799 $ 39,903 $ 33,454 $ 38,856 $ 43,949
 ---------- --------- --------- --------- ---------
Costs and Expenses:
 Operating expenses 33,269 29,137 26,345 26,960 30,583
 Administrative and
 general 3,413 4,158 3,494 4,571 3,579
 Depreciation and
 amortization 5,264 4,591 4,254 4,199 4,212
 ---------- --------- --------- --------- ---------
 41,946 37,886 34,093 35,730 38,374
 ---------- --------- --------- --------- ---------

Gains on Asset
 Dispositions 1,880 1,818 325 7,024 306
 ---------- --------- --------- --------- ---------
Operating Income
 (Loss) $ 3,733 $ 3,835 $ (314) $ 10,150 $ 5,881
 ========== ========= ========= ========= =========

Environmental
 Services
Operating Revenues $ 38,885 $ 36,946 $ 27,923 $ 37,583 $ 27,466
 ---------- --------- --------- --------- ---------
Costs and Expenses:
 Operating expenses 26,370 26,345 20,508 21,852 17,400
 Administrative and
 general 5,931 5,156 4,405 4,669 4,546
 Depreciation and
 amortization 731 741 733 664 901
 ---------- --------- --------- --------- ---------
 33,032 32,242 25,646 27,185 22,847
 ---------- --------- --------- --------- ---------

Gains (Losses) on
 Asset Dispositions
 and Impairments,
 Net 6 (215) (27) (19)
 ---------- --------- --------- --------- ---------
Operating Income $ 5,859 $ 4,489 $ 2,277 $ 10,371 $ 4,600
 ========== ========= ========= ========= =========



 SEACOR HOLDINGS INC.
 OPERATING INCOME (LOSS) BY LINE OF BUSINESS (continued)
 (in thousands, unaudited)

 Three Months Ended
 ----------------------------------------------------
 Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
 2006 2006 2006 2005 2005
 --------- --------- --------- --------- ---------
Harbor and Offshore
 Towing Services
Operating Revenues $ 12,552 $ 12,156 $ 12,884 $ 11,949 $ 11,343
 --------- --------- --------- --------- ---------
Costs and Expenses:
 Operating expenses 7,744 8,336 6,841 7,043 7,673
 Administrative and
 general 1,662 1,851 1,604 1,663 1,333
 Depreciation and
 amortization 1,265 1,275 1,259 1,303 1,226
 --------- --------- --------- --------- ---------
 10,671 11,462 9,704 10,009 10,232
 --------- --------- --------- --------- ---------

Gains on Asset
 Dispositions 
 --------- --------- --------- --------- ---------
Operating Income $ 1,881 $ 694 $ 3,180 $ 1,940 $ 1,111
 ========= ========= ========= ========= =========

Corporate and
 Eliminations
Operating Revenues $ 23 $ (89) $ (410) $ (383) $ (156)
 --------- --------- --------- --------- ---------
Costs and Expenses:
 Operating expenses (146) (77) (422) (395) (141)
 Administrative and
 general 7,679 8,352 8,522 10,979 9,018
 Depreciation and
 amortization 401 489 228 347 342
 --------- --------- --------- --------- ---------
 7,934 8,764 8,328 10,931 9,219
 --------- --------- --------- --------- ---------

Losses on Asset
 Dispositions (3) 
 --------- --------- --------- --------- ---------
Operating Loss $ (7,911) $ (8,856) $ (8,738) $ (11,314) $ (9,375)
 ========= ========= ========= ========= =========




 SEACOR HOLDINGS INC.
 SELECTED CONSOLIDATED BALANCE SHEET DATA
 (in thousands, unaudited)


 Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
 2006 2006 2006 2005 2005
 --------- --------- --------- --------- ---------

Cash, Cash Equivalents,
 Restricted
 Cash, Securities,
 Construction Reserve
 Funds, and Title
 XI Reserve Funds $ 839,057 $ 803,360 $ 764,649 $ 684,521 $ 664,164
Receivables 282,040 278,000 270,794 260,831 267,108
Current Assets 893,813 915,245 900,488 839,091 867,290
Net Property and
 Equipment 1,764,990 1,737,811 1,733,757 1,759,393 1,784,083
Total Assets 3,076,296 3,014,963 2,961,627 2,885,141 2,959,169
Current Portion
 of Long-term
 Debt and
 Capital Lease
 Obligations 10,443 8,970 10,420 10,505 13,164
Current Liabilities 287,872 287,797 280,279 247,906 209,396
Long-term Debt
 & Capital
 Lease Obligations 964,567 955,567 964,096 977,635 1,126,431
Stockholders
 Equity 1,493,036 1,458,302 1,418,190 1,361,305 1,280,028