6.
INCOME TAXES

Loss before income tax (benefit) expense and equity in earnings of 50% or less owned companies derived from U.S. and foreign companies for the years ended December 31 were as follows (in thousands):

 

 

 

2025

 

 

2024

 

 

2023

 

United States

 

$

(8,385

)

 

$

(67,632

)

 

$

(3,576

)

Foreign

 

 

(10,520

)

 

 

(15,255

)

 

 

(335

)

Eliminations

 

 

(160

)

 

 

(160

)

 

 

(160

)

 

 

$

(19,065

)

 

$

(83,047

)

 

$

(4,071

)

 

The components of income tax (benefit) expense for the years ended December 31 were as follows (in thousands):

 

 

 

2025

 

 

2024

 

 

2023

 

Current:

 

 

 

 

 

 

 

 

 

Federal

 

$

1,517

 

 

$

 

 

$

(18

)

State

 

 

18

 

 

 

(44

)

 

 

47

 

Foreign

 

 

11,636

 

 

 

11,111

 

 

 

13,831

 

 

 

13,171

 

 

 

11,067

 

 

 

13,860

 

Deferred:

 

 

 

 

 

 

 

 

 

Federal

 

 

(2,546

)

 

 

(13,629

)

 

 

(5,062

)

State

 

 

(115

)

 

 

(53

)

 

 

8

 

Foreign

 

 

 

 

 

 

 

 

(7

)

 

 

(2,661

)

 

 

(13,682

)

 

 

(5,061

)

 

$

10,510

 

 

$

(2,615

)

 

$

8,799

 

 

Income tax payments during the year ended December 31, 2025 were as follows (in thousands):

 

 

 

2025

 

Federal

 

$

1,150

 

State and Local (1)

 

 

(1,101

)

Foreign

 

 

 

Angola

 

 

5,190

 

Saudi Arabia

 

 

2,552

 

Guyana

 

 

2,247

 

Other Jurisdictions

 

 

865

 

 

 

10,903

 

 

(1)
Includes a refund of the Louisiana ad valorem offshore vessel tax credits for both 2023 and 2022 tax years.

During the years ended December 31, 2024 and 2023, income taxes paid were $10.3 million and $9.9 million, respectively.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”), which includes a broad range of tax reform provisions, was signed into law in the United States. The Company has determined that the OBBBA did not have a material effect on the Company’s consolidated financial position, results of operations or disclosures.

In October 2024, the Company received a tax assessment from the General Tax Authority in Qatar for $0.6 million relating to tax returns for the years 2018 through 2023 for which the Company is filing an appeal.

The following table reconciles the difference between the statutory federal income tax rate for the Company and the effective income tax rate after the adoption of ASU 2023-09 for the years ended December 31 (in thousands):

 

 

 

2025

 

 

2025

 

 

Amount

 

 

Rate

 

U.S. federal statutory rate

 

 

(4,004

)

 

 

(21.0

)%

State and local income taxes, net of federal income tax effect (1)

 

 

(101

)

 

 

(0.5

)%

Foreign tax effects

 

 

 

 

 

 

Withholding tax on services

 

 

 

 

 

 

Angola

 

 

5,190

 

 

 

27.2

%

Saudi Arabia

 

 

1,715

 

 

 

9.0

%

Guyana

 

 

2,247

 

 

 

11.8

%

Qatar

 

 

786

 

 

 

4.1

%

Other foreign jurisdictions

 

 

204

 

 

 

1.1

%

Withholding tax on dividends

 

 

 

 

 

 

Saudi Arabia

 

 

856

 

 

 

4.5

%

Other foreign taxes

 

 

 

 

 

 

United Kingdom

 

 

455

 

 

 

2.4

%

Other foreign jurisdictions

 

 

183

 

 

 

1.0

%

Effects of cross-border tax laws

 

 

 

 

 

 

Subpart F Income

 

 

621

 

 

 

3.3

%

Tax credits

 

 

 

 

 

 

Foreign tax credits

 

 

(1,237

)

 

 

(6.6

)%

Changes in valuation allowances

 

 

53

 

 

 

0.3

%

Nontaxable or Nondeductible items

 

 

 

 

 

 

162(m) - executive compensation

 

 

529

 

 

 

2.8

%

Share award plans

 

 

430

 

 

 

2.3

%

Other nontaxable or nondeductible items

 

 

39

 

 

 

0.2

%

Other adjustments

 

 

 

 

 

 

Loss of foreign subsidiaries not includable in U.S. return

 

 

2,243

 

 

 

11.8

%

True-up of section 965 tax

 

 

210

 

 

 

1.1

%

Other

 

 

91

 

 

 

0.3

%

 

 

10,510

 

 

 

55.1

%

 

(1)
Comprised primarily of state and local taxes in Louisiana.

The following table reconciles the difference between the statutory federal income tax rate for the Company and the effective income tax rate prior to the adoption of ASU 2023-09 for the years ended December 31 (in thousands):

 

 

 

2024

 

 

2023

 

 

Amount

 

 

Rate

 

 

Amount

 

 

Rate

 

Statutory rate

 

 

(17,440

)

 

 

(21.0

)%

 

 

(855

)

 

 

(21.0

)%

Income (loss) of foreign subsidiaries not includable in U.S. return and foreign withholding tax

 

 

13,243

 

 

 

15.9

%

 

 

9,095

 

 

 

223.4

%

Non-Deductible Expenses

 

 

50

 

 

 

0.1

%

 

 

49

 

 

 

1.2

%

162(m) - Executive compensation

 

 

1,486

 

 

 

1.8

%

 

 

726

 

 

 

17.8

%

State Taxes

 

 

(88

)

 

 

(0.1

)%

 

 

45

 

 

 

1.1

%

Subpart F Income and GILTI

 

 

1,070

 

 

 

1.3

%

 

 

269

 

 

 

6.6

%

Share Award Plans

 

 

(934

)

 

 

(1.1

)%

 

 

(527

)

 

 

(12.9

)%

Other

 

 

(2

)

 

 

%

 

 

(3

)

 

 

%

 

 

(2,615

)

 

 

(3.1

)%

 

 

8,799

 

 

 

216.2

%

 

 

For the year ending December 31, 2025, the Company’s effective income tax rate of 55.1% was primarily due to foreign taxes paid that are not creditable against U.S. income taxes and foreign losses for which there is no benefit in the U.S. for income tax purposes.

For the year ending December 31, 2024, the Company’s effective income tax rate of (3.1)% was primarily due to foreign taxes paid that are not creditable against U.S. income taxes and foreign losses for which there is no benefit in the U.S. for income tax purposes.

For the year ending December 31, 2023, the Company’s effective income tax rate of 216.2% was primarily due to foreign withholding taxes.

The components of net deferred income tax liabilities as of December 31 were as follows (in thousands):

 

 

 

2025

 

 

2024

 

Deferred tax liabilities:

 

 

 

 

 

 

Property and equipment

 

$

30,391

 

 

$

43,732

 

Other

 

 

156

 

 

 

684

 

Total deferred tax liabilities

 

 

30,547

 

 

 

44,416

 

Deferred tax assets:

 

 

 

 

 

 

Federal net operating loss carryforwards

 

 

6,376

 

 

 

16,501

 

Foreign tax credits

 

 

3,738

 

 

 

4,283

 

Deferred state taxes

 

 

2,271

 

 

 

1,934

 

Other

 

 

3,427

 

 

 

4,573

 

 

 

15,812

 

 

 

27,291

 

Valuation allowance

 

 

(4,641

)

 

 

(4,912

)

Total deferred tax assets

 

 

11,171

 

 

 

22,379

 

Net deferred tax liabilities

 

$

19,376

 

 

$

22,037

 

 

The Section 163(j) interest deduction limitations were amended to limit the ability of the Company to deduct net interest expense to 30% of adjusted taxable income. For the year ended December 31, 2025, no interest expense was suspended and carryforwards of $1.2 million from prior years were deducted. For the year ended December 31, 2024, $1.2 million of interest expense was suspended and carried forward.

 

Net operating losses generated in 2017 and prior may be carried forward 20 years (expiring in 2037). Future utilization of net operating losses (“NOL”) arising in tax years after December 31, 2017 are limited to 80% of taxable income and are allowed to be carried forward indefinitely. As of December 31, 2025, the Company has $30.4 million of net operating losses generated after 2017. As of December 31, 2024, the Company had $78.6 million of net operating losses generated after 2017.

As of December 31, 2025 and 2024, the Company's valuation allowance of $4.6 million and $4.9 million, respectively, consists of $3.8 million and $4.3 million, respectively, of foreign tax credit carryforwards which the Company expects to expire unutilized and $0.8 million and $0.6 million, respectively, of Louisiana state net operating loss carryforwards. During the year ended December 31, 2025, $1.9 million of foreign tax credits expired and the corresponding valuation allowance was removed. In addition, during the year ended December 31, 2025, $1.3 million of foreign tax credits were generated for which the Company expects to expire unutilized.

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 26, 2025
2023Feb 29, 2024
2022Mar 6, 2023
2021Mar 10, 2022
2020Mar 12, 2021
2019Mar 4, 2020
2018Mar 12, 2019
2017Mar 22, 2018

About Income Taxes Disclosures

The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.

Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.