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Bruce Streeter, the Company’s President and CEO, will present at the 2009 RBC Capital Markets Global Energy and Power Conference in New York City, New York, on Monday, June 1 st , at 4:40 pm
form 8-K filed
GulfMark Announces Impairment Charge Relating to Vessel Construction
HOUSTON, April 15, 2009 (GLOBE NEWSWIRE) -- GulfMark Offshore, Inc. (NYSE:GLF) announced today that a shipyard contracted to construct three vessels for the Company is in default of the contract. Construction of the vessels is no longer in progress. The vessels were previously projected to be delivered to the U.S. market in the first half of 2010. The Company will record an impairment charge against its construction-in-progress of $46.2 million ($29.2 million after tax, or $1.16 earnings per diluted share) in the first quarter of 2009 related to these three vessels.
While the Company intends to pursue all contractual and legal remedies available to recover its investment, due to the uncertainty of recovery, the Company is taking an impairment charge for the full amount of its investment in these vessels. Other than costs to pursue any such remedies, which the Company does not expect will be material, this non-cash charge should not result in future cash expenditures.
GulfMark Offshore, Inc. provides marine transportation services to the energy industry through a fleet of offshore support vessels serving every major offshore energy market throughout the world.
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve known and unknown risk, uncertainties and other factors. Forward-looking statements contained in this document include statements regarding GulfMark's expectation regarding its first quarter impairment charge, the likelihood of any recovery of its investment, and the expectation that none of the impairment charges will result in future cash expenditures other than non-material costs to pursue its remedies. Because actual results may differ materially from expectations, we caution readers not to place undue reliance on these statements. Among the factors that could cause actual results to differ materially from historical results, or from results or outcomes expected or sought by GulfMark, are: price of oil and gas and their effect on industry conditions; industry volatility; fluctuations in the size of the offshore marine vessel fleet in areas where GulfMark operates; changes in competitive factors; inability to complete or delay or cost overruns on construction projects and other material factors that are described from time to time in GulfMark's filings with the SEC, including its Form 10-K for the quarter and year ended December 31, 2008. Consequently, the forward-looking statements contained herein should not be regarded as representations that the projected outcomes can or will be achieved.
CONTACT: GulfMark Offshore, Inc.
James (Jay) Harkness, Vice President of Investor Relations
and Treasurer
Jay.Harkness@GulfMark.com
Edward A. Guthrie, Executive Vice President & CFO
Ed.Guthrie@GulfMark.com
(713) 963-9522
GulfMark Offshore, Inc. Announces 1st Quarter 2009 Earnings Release Date and Conference Call Information
HOUSTON, April 21, 2009 (GLOBE NEWSWIRE) -- GulfMark Offshore, Inc. (NYSE:GLF) announced today that it has scheduled a conference call for Monday, April 27, 2009, at 9:00 a.m. Eastern Time. The purpose of the call is to discuss the Company's financial results for the first quarter ended March 31, 2009, which will be released before the market opens the same day. Those who wish to participate in the conference call should dial 877-381-5943 in the United States (international callers should use 973-638-3424).
A telephonic replay of the conference call will be available for 4 days starting approximately 2 hours after the completion of the call and can be accessed by dialing 800-642-1687 (international callers should use 706-645-9291) and entering access code 96597068.
The call is also being webcast and can be accessed from the Investor Relations section of GulfMark Offshore's website at www.GulfMark.com or www.InvestorCalendar.com. The webcast will be available for replay until July 27, 2009.
GulfMark Offshore, Inc. provides marine transportation services to the energy industry through a fleet of offshore support vessels serving every major offshore energy industry market in the world.
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve known and unknown risk, uncertainties and other factors. Among the factors that could cause actual results to differ materially are: price of oil and gas and their effect on industry conditions; industry volatility; fluctuations in the size of the offshore marine vessel fleet in areas where GulfMark operates; changes in competitive factors; delay or cost overruns on construction projects and other material factors that are described from time to time in the GulfMark's filings with the SEC, including its Form 10-Q for the quarter ended September 30, 2008. Consequently, the forward-looking statements contained herein should not be regarded as representations that the projected outcomes can or will be achieved.
CONTACT: GulfMark Offshore, Inc.
James (Jay) Harkness, Vice President - Investor
Relations & Treasurer
(713) 963-9522
Jay.Harkness@GulfMark.com
Edward A. Guthrie, Executive Vice President & CFO
(713) 963-9522
Ed.Guthrie@GulfMark.com
GLF beats earnings est at 1.72, revs miss estimate.
Conf call 9:00 AM today
Gulfmark Offshore Cut To Hold From Buy By Jefferies >GLF Last update: 2/18/2009 7:51:33 AM(END) Dow Jones NewswiresFebruary 18, 2009 07:51 ET (12:51 GMT)
another offshore vessel services co- Tidewater TDW
Tidewater Added To Goldman Sachs Conviction Sell List Last update: 2/18/2009 8:32:47 AM(MORE TO FOLLOW) Dow Jones NewswiresFebruary 18, 2009 08:32 ET (13:32 GMT)
GLF 10-K release and conf call on Feb 23, 2009
February 4, 2009 - HOUSTON - GulfMark Offshore, Inc. (NYSE:GLF) today announced plans to release earnings for the fourth quarter and year ended December 31, 2008 before the market opens on Monday, February 23, 2009. The Company will also conduct a conference call to discuss the results with analysts, investors and other interested parties at 9:00 a.m. EST the same day. Those who wish to participate in the conference call should dial 877-381-5943 in the United States (international callers should use 973-638-3424).
A telephonic replay of the conference call will be available for 4 days starting approximately 2 hours after the completion of the call and can be accessed by dialing 800-642-1687 (international callers should use 706-645-9291) and entering access code 84504120.
The call is also being webcast and can be accessed from the Investor Relations section of GulfMark Offshore’s website at www.GulfMark.com or www.InvestorCalendar.com. The webcast will be available for replay until May 23, 2009.
GulfMark Offshore, Inc. provides marine transportation services to the energy industry through a fleet of 94 offshore support vessels serving every major offshore energy industry market in the world.
Contact: James (Jay) Harkness, Vice President – Investor Relations & Treasurer
E-mail: Jay.Harkness@GulfMark.com
Phone: (713) 963-9522
Edward A. Guthrie, Executive Vice President & CFO
E-mail: Ed.Guthrie@GulfMark.com
Phone: (713) 963-9522
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve known and unknown risk, uncertainties and other factors. Among the factors that could cause actual results to differ materially are: price of oil and gas and their effect on industry conditions; industry volatility; fluctuations in the size of the offshore marine vessel fleet in areas where GulfMark operates; changes in competitive factors; delay or cost overruns on construction projects and other material factors that are described from time to time in the GulfMark’s filings with the SEC, including its Form 10-Q for the quarter ended September 30, 2008. Consequently, the forward-looking statements contained herein should not be regarded as representations that the projected outcomes can or will be achieved.
Capital One downgrades GulfMark Offshore (NYSE: GLF) from Add to Neutral.
January 21, 2009 10:39 AM EST
Capital One analyst says, "Downgrading to Neutral as N Sea and SE Asia have considerably weakened over the past couple months. While the company has significant contract coverage for both regions in '09, we believe the headline exposure will continue to weigh on the stock. Rigdon rollovers in the GOM could still provide upside, but weakening in the N Sea likely offsets in the back half of the year. We continue to highlight Hornbeck Offshore (NYSE: HOS) and believe the GOM deepwater will remain a stable market, that TTB utilization could actually improve from 3Q levels, and that there are certain sets of OSVs HOS could still acquire."
GulfMark Offshore, Inc. provides offshore marine services primarily to companies involved in offshore exploration and production of oil and natural gas.
Island Boats Delivers Second Crewboat
Wednesday, January 14, 2009, 2:44 AM The Swordfish, Christened January 14 on Bayou Teche, is a sister-ship in all but two significant features to the Bourbon Libeccio delivered earlier in 2008 from Jeaneratte Louisianaís Island Boats. The move from green for the 175 by 32 ft hull to a deep royal blue is the result of an ownership change from Rigdon to GulfMark in the intervening months. The second difference results from the advent of Tier II engine technology. While the Bourbon Libeccio was powered by four Cummins KTA50 engines rated at for 1800 HP each 1900-RPM, the Swordfish is powered by Tier 2 compliant QSK50 engines with the same horsepower. These engines feature a modular common rail fuel system that provides constant high injection pressure regardless of engine speed or load conditions along with a range of other advantages. The engines will drive Hamilton HM811 water jets through Reintjes gears with 2.54:1 reduction. The DP I boat also has a pair of Cummins 6CTA8.3-powered 148 kW generators and a 30-inch bow thruster powered by a third 6CTA8.3 engine.
GLF a strong mover today, broke thru the 50 dma on good volume too.
Happy New Year to you, spec! I'll be watching here and there for better times this year.
GLF trading at a nice discount to tangible book value now.
Secure contract cover going forward and deep operations have had minimal slow-down so far.
Sub $70 crude prices will begin to factor in during 2009.
GulfMark Announces Organization Changes
HOUSTON, Dec. 9, 2008 (GLOBE NEWSWIRE) -- GulfMark Offshore, Inc. (NYSE:GLF) announced today the appointment of three individuals to undertake key positions in the development and improved capacity of the company's accounting, finance and internal audit/compliance functions.
Bruce Streeter, President and CEO, said: "We are pleased to promote Messrs. Kneen, Rubio and White, as they have demonstrated their capabilities to assume positions of greater responsibility. We believe these appointments will serve to provide strong financial leadership to the Company, both now and in the future."
Quintin V. Kneen - Senior Vice President - Finance and Administration
Quintin will be responsible for all finance functions of the Company, including accounting, finance and treasury, as well as tax and investor relations. He will transition to the role of Chief Financial Officer subsequent to the filing of the Company's 2008 10-K in February 2009, as Ed Guthrie, currently Executive Vice President & CFO, moves into the role of assisting the President prior to his retirement in 2009.
Quintin joined GulfMark in June 2008. Previously, he was Vice President - Finance & Investor Relations for Grant Prideco, Inc., serving in executive finance positions at Grant Prideco since June 2003. Prior to joining Grant Prideco, Mr. Kneen held executive finance positions at Azurix Corp. and was an Audit Manager with the Houston office of Price Waterhouse LLP. He holds an M.B.A. from Rice University and a B.B.A. in Accounting from Texas A&M University and is a Certified Public Accountant and a Chartered Financial Analyst.
Samuel R. Rubio - Vice President - Controller and Chief Accounting Officer
Sam will be responsible for all accounting functions of the Company and will assume the role of Chief Accounting Officer. He will also be responsible for all regulatory filings of the Company with the SEC and compliance with current accounting standards.
Sam has been with GulfMark since 2005, when he joined the group as Assistant Controller and was subsequently promoted to Controller in 2007. He has a B.B.A. degree from Sul Ross State University and is a Certified Public Accountant and a member of both the American Institute of Certified Public Accountants and the Texas Society of CPA's. In addition, Sam has over 25 years of experience in accounting at both operating division and corporate levels as well as the management of accounting organizations.
Anthony L. White - Vice President - Internal Audit and Chief Compliance Officer
Anthony will be responsible for the internal audit function of the Company and assume the role of Chief Compliance Officer. He will coordinate the Company's internal audit function and compliance with Sarbanes Oxley in addition to monitoring and improving the internal control processes throughout the Company's worldwide operating and finance functions.
Anthony has been responsible for developing the internal audit function at GulfMark since 2005 when he joined the Company as Director - Internal Audit. He has both a B.S. and an M.B.A. from the University of Kentucky and has attained certifications as a Certified Public Accountant, Certified Management Accountant, Certified Internal Auditor and Certified Information Systems Auditor. Anthony had over 15 years of financial and audit experience prior to joining GulfMark in 2005 and since that time has been instrumental in establishing the internal audit function in the Company.
Carla S. Mashinski Resignation
Carla Mashinski, currently Vice President - Accounting and Chief Accounting Officer, has tendered her resignation effective as of December 31, 2008 to pursue other interests. Bruce Streeter, commenting on her resignation, said: "Carla has been instrumental in leading the recent project to upgrade the information and accounting system as well as a key driver in the development of our accounting group over the last five years. Her dedication to her job will be missed, and while we are saddened by her departure, we wish her well and are sure she will be successful in whatever position she takes on in the future."
GulfMark Offshore, Inc. provides marine transportation services to the energy industry through a fleet of ninety-three (93) offshore support vessels serving every major offshore energy industry market in the world.
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve known and unknown risk, uncertainties and other factors. Among the factors that could cause actual results to differ materially are: price of oil and gas and their effect on industry conditions; industry volatility; fluctuations in the size of the offshore marine vessel fleet in areas where GulfMark operates; changes in competitive factors; delay or cost overruns on construction projects and other material factors that are described from time to time in the GulfMark's filings with the SEC, including its Form 10-Q for the quarter ended September 30, 2008. Consequently, the forward-looking statements contained herein should not be regarded as representations that the projected outcomes can or will be achieved.
CONTACT: GulfMark Offshore, Inc.
James (Jay) Harkness, Vice President - Investor Relations &
Treasurer
(713) 963-9522
Jay.Harkness@GulfMark.com
Quintin V. Kneen, Senior Vice President - Finance &
Administration
(713) 963-9522
Quintin.Kneen@GulfMark.com
Floating rig day rates continue to rise
Filed from Houston
11/14/2008 6:00:37 PM GMT
Day rates for floating drilling rigs, including rigs rated for both mid and deep water, continue to rise, and this month are at record levels, according to ODS-Petrodata's Offshore Rig Day Rate Index. At the same time, rates in the troubled U.S. Gulf jackup market have given up gains made since mid-year.
The ODS-Petrodata Deepwater Rig Day Rate Index increased again, and now stands at a record 956. Three new deepwater drilling contracts for future work at rates in excess of $600,000 per day boosted the index to its new high, according to ODS-Petrodata's online RigBase market intelligence tool. Deepwater rig fleet utilization remains at 100 percent, and is expected to remain at this level for the foreseeable future, despite the recent slide in world crude oil prices. Any short-term slow down in the growth of worldwide energy demand is unlikely to put the brakes on deepwater exploration and development activity due to the long-term nature of the projects.
The ODS-Petrodata Mid-Water Depth Semisubmersible Day Rate Index also is at an all-time high at 1,111. Behind the rise are recent drilling contracts inked at rates in excess of $400,000 per day. Fleet utilization is unchanged at 97 percent.
The ODS-Petrodata U.S. Gulf of Mexico Jackup Day Rate Index slid to 364 this month, giving up gains made over the past four months. Lingering aftereffects of the stormy summer and uneven demand for shallow water drilling services in the region are likely to constrain U.S. Gulf jackup activity in the near term.
The ODS-Petrodata North Sea Jackup Day Rate Index increased slightly this month, continuing the pattern seen for many months now. Fleet utilization remains 100 percent, and little significant change in the market is expected in the near-term.
The ODS-Petrodata Day Rate Indices track the movement of competitive mobile offshore drilling fleet day rates and utilization for four rig categories. Day rates are charted as an index with the average market day rate in January 1994 equal to 100. Utilization is the percentage of contracted rigs out of the total competitive fleet supply. The data is updated on the second Friday of each month by ODS-Petrodata. Additional information is available from ODS-Petrodata in Houston, Aberdeen, Oslo, Dubai and Singapore.
GulfMark Announces New Corporate Positions
November 21, 2008 - Houston - GulfMark Offshore, Inc. (NYSE:GLF) announced today the appointment of new officers designed to strengthen operations, marketing, business development and finance functions. Bruce Streeter, President and CEO, said: “We are pleased to fill the following positions with personnel from within the Company who have both the experience and knowledge to develop their respective areas of responsibility. We look forward to their contributions in the months and years to come.”
David Darling: Vice President – Human Resources
David will be responsible for recruitment and retention initiatives, training, employee relations, legal compliance, policy & procedure development, and compensation and employee benefit and wellness plans.
David has over 15 years of experience in the offshore vessel industry as a Captain, Operations Manager, and Human Resource Manager with Zapata Gulf Marine and Tidewater, Inc. In addition to his offshore vessel industry experience, David has led human resource organizations in the manufacturing, distribution and automotive industries.
David earned his Bachelors of Science in Human Resource Management from Brenau University and his M.S. in Human Resource Management and Labor Relations from the Ellis College of Business at the New York Institute of Technology. David completed the University of Michigan Human Resources Executive Program.
William (“Billy”) Guice: Vice President - Marketing
Billy will coordinate marketing initiatives and, in conjunction with business development, evaluate existing and potential market trends. In addition to the direct responsibility for Gulf of Mexico marketing, he will also focus on corporate branding and the identification and evaluation of world wide revenue opportunities.
Billy began his career in vessel construction management in 1997 until he left to become involved in international sales and marketing with Tidewater, Inc. He left Tidewater in 2003 to become Vice President of Sales and Marketing with Rigdon Marine Corp. where he was responsible for business development, sales and marketing, advertising and overall corporate communications.
He earned his Bachelor of Arts in economics from Washington & Lee University and a Master of Business Administration from Millsaps College. Most recently, he completed the Advanced Management Program at Harvard Business School. Billy also retains the rank of Lieutenant in the U.S. Navy (Reserve).
Nathan Guice: Vice President – Business Development
Nathan will be responsible for evaluating global commercial data and market trends as well as the identification and development of world wide strategic corporate initiatives to expand the Company into new projects or growth opportunities complimentary to the Company’s existing markets.
Nathan began his career in 1997 with Tidewater Inc. serving in various managerial roles both domestically and internationally. His positions included Manager of Domestic Marketing & Sales, Manager of Gulf of Mexico Crew Boats Division, Manager of Arabian Gulf and India, as well as other Sales and Marketing roles. Most recently he was the Vice President of Operations for Rigdon Marine before its acquisition by GulfMark Offshore.
He graduated Cum Laude from Millsaps College with a Bachelors of Business Administration and earned a Master of Business Administration Degree from Tulane University’s AB Freeman School of Business.
James (“Jay”) Harkness: Vice President – Investor Relations & Treasurer
Jay will be responsible for all investor relations functions as well as all treasury activities both domestically and internationally.
He has over eighteen years of domestic and international experience within the offshore marine service industry, including foreign assignments in West Africa, Middle East, and Europe. In 2004 he moved back to the United States to take over as the Chief Financial Officer of Rigdon Marine where he coordinated and supervised setting up the accounting and reporting systems, controls and processes as well as financing of the construction of 29 PSV/Crew vessels from 2005 to 2008.
Jay graduated from Washburn University with a Bachelor of Science in Accounting and earned a Masters in Business Administration from Our Lady of the Lake University. Most recently he completed the Advanced Management Program at Harvard Business School.
Darrel Plaisance: Vice President – International Operations
Darrel will be responsible for the coordination and project support for vessel operations on a global basis. This will involve coordination of inter-regional projects and assessment of means to maximize cost containment initiatives throughout the fleet.
Darrel has over 26 years of experience in vessel operations beginning his career as an operations assistant in 1982 and culminating as Vice President of Sea Mar Management LLC before it was acquired. Subsequently he joined GulfMark as Region Manager – U.S. in January of 2008 and established an operating base in the U.S. for the Company prior to the acquisition in July 2008 of Rigdon Marine Corp.
Darrell graduated with a degree in Petroleum Engineering Technology from Nicholls State University.
GulfMark Offshore, Inc. provides marine transportation services to the energy industry through a fleet of ninety-three (93) offshore support vessels serving every major offshore energy industry market in the world.
Contact: Edward A. Guthrie, Executive Vice President & CFO
E-mail: Ed.Guthrie@GulfMark.com
Phone: (713) 963-9522
James ("Jay") A. Harkness, Vice President – Investor Relations & Treasurer
E-mail: Jay.Harkness@GulfMark.com
Phone: (713) 963-9522
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve known and unknown risk, uncertainties and other factors. Among the factors that could cause actual results to differ materially are: price of oil and gas and their effect on industry conditions; industry volatility; fluctuations in the size of the offshore marine vessel fleet in areas where GulfMark operates; changes in competitive factors; delay or cost overruns on construction projects and other material factors that are described from time to time in the GulfMark’s filings with the SEC, including its Form 10-Q for the quarter ended September 30, 2008. Consequently, the forward-looking statements contained herein should not be regarded as representations that the projected outcomes can or will be achieved.
gotta like that chart this week
shhhh! only 3 boardmarks?
GLF chart is looking sweet
GLF moving up nicely on lower than 10 day average volume.
The PPS is well off the 52-week $24.49 low.
I think I'll put in a 60-day limit at $30.
Trueheart
They had a few under construction even before they acquired Rigdon and the vessels under construction that came with that deal.
Their conference presentations on the investor page are very informative on the mix of vessels and relative age mix.
IMO, they are doing a great job of keeping their fleet young and high end by both the newbuild program and retirement of older vessels.
Rigdon was a perfect match for both parties, a win-win.
Thanks for the background, Spec.
The order for additional boats is a positive sign of their outlook for growth.
It looks like a winner.
Trueheart
This has been a great trading stock for me. I picked up a bunch down at $26-27 and took a quick 25% on a bit less than a third of them earlier today when it hit my sell point.
The forced liquidation of a portion of many funds really was a blessing for individuals to pick this up cheap.
Big portion held by institutions here so it gets tossed around a lot when they buy and sell.
They have so much of their capacity under contract, their revenues are pretty predictable so I knew earnings would be good.
enjoy
Hey, Spec.
Not many shares here compared to Deep Down.
I'm looking at this service company.
Good luck.
Trueheart
GulfMark Offshore Reports Record Revenue and Operating Income for the Third Quarter of 2008
8:06p ET October 28, 2008 (GlobeNewswire)
GulfMark Offshore, Inc. (NYSE:GLF) today announced results of operations for the third quarter and nine months ended September 30, 2008. Third quarter highlights include:
* Revenue of $124.6 Million * Operating Income of $50.0 Million Before Gains on Vessel Sales * Acquisition of Rigdon Marine Exceeding Expectations * Record EPS of $1.69 Before Gains on Vessel Sales
Financial Review
3rd Quarter 2008 Compared to 3rd Quarter 2007
Revenue of $124.6 million for the third quarter of 2008 was $49.9 million, or 66.8%, above the same period in 2007. Operating income of $50.0 million in the third quarter of 2008, before gains on vessel sales, increased $20.3 million, or 68.6%, over the prior period in 2007. Net income for the third quarter of 2008, also excluding gains on vessel sales, established a new record of $1.69 per diluted share, when compared to the previous record of $1.59 per diluted share, excluding gains on vessel sales, established in the third quarter of 2006. The acquisition of Rigdon Marine Corporation ("Rigdon") was completed on July 1, 2008 and during the third quarter contributed $34.8 million, or 46.6%, of the revenue increase while internal growth across the other operating segments provided $15.1 million, or 20.2% of the increase. Operating income contribution from the Rigdon acquisition was $14.1 million, or 47.7%, of the increase over the previous year. Strong operating results from virtually all of the operating segments, excluding the Rigdon contribution, provided an increase of $6.2 million, or 20.9%, in operating income when compared to the third quarter of 2007.
3rd Quarter 2008 Compared to 2nd Quarter 2008
Revenue for the third quarter increased $42.7 million, or 52.2%, over the second quarter of 2008. As referenced above, the Rigdon acquisition provided $34.8 million, or 42.5%, of the revenue increase, quarter over quarter, while internal growth provided $7.9 million, or 9.7% of the quarterly increase. Operating income, excluding gains on vessel sales, for the third quarter was $19.6 million, or 64.5%, above the previous quarter in 2008 with $14.1 million, or 46.5%, attributable to the Rigdon acquisition and internal growth responsible for $5.5 million, or 18.0%. Overall, a 3.1% increase was realized in the operating income margin, before gains on vessel sales, in the third quarter when compared to the second quarter of 2008.
Commentary
Bruce Streeter, President and CEO, commented: "We are very pleased with our third quarter accomplishments. The Rigdon acquisition is providing us with strong incremental improvement in the Americas region and is exceeding our initial estimates. More importantly, all of our operations demonstrated solid revenue and operating income growth during the quarter.
"As reported earlier, we relocated the Sea Kiowa during the quarter from Southeast Asia to Brazil in the Americas region where we now have a total of six vessels. During the third quarter we also took delivery of three new vessels: the AHTS Sea Choctaw, the PSV Knockout, and the crew boat Albacore. In addition, we disposed of two vessels in the third quarter: the Sem Valiant, a small AHTS built in 1981 and the Sea Eagle, a small AHTS built in 1976. Subsequent to the third quarter, we took delivery of the Mako, a 181 foot fast supply vessel, and sold the North Fortune, a large PSV built in 1983, for approximately $19 million. Our fleet now comprises 93 vessels, 70 of which are owned vessels with an average age of less than 8 years. We have one of the youngest fleets of our publicly traded peer group and our upcoming deliveries of another 12 vessels through 2010 will provide our customers with one of the safest, most advanced, and youngest fleets available.
"Our new build program is generally on track; however, we have revised the delivery date estimates due to delays in delivery of key equipment components on two vessels, the Sea Cherokee and the Sea Comanche. Both of these vessels had been scheduled to be delivered in the fourth quarter of 2008 and we are now expecting them to be delivered during the first quarter of 2009.
"We are in a period of volatile and uncertain economic conditions and must be prepared to face market conditions as they develop. We have not seen a decrease in activity in the areas where we operate; however, our strategy of establishing a significant forward contract position, a diversification of our operating areas and a broad client base, we believe will minimize any near term impact if a decrease in oil and gas expenditures were to occur. Furthermore, the young age and technical qualifications of our fleet should allow us to do well as new deepwater offshore rigs are delivered and activity develops over the next several years."
Liquidity and Capital Commitments
Cash flow from operations totaled $128.5 million for the nine months ended September 30, 2008, compared to $86.2 million for the same period in 2007. Cash from operations plus cash on hand were used to fund approximately $93.1 million in capital expenditures, primarily related to the new build program. Estimated cash commitments for the fourth quarter of 2008 for the new build program are approximately $21.3 million and are expected to be funded from cash on hand.
On July 1, 2008, we closed the Rigdon acquisition, utilizing $152.6 million of our cash on hand at the end of the second quarter and assuming approximately $268.9 million of existing Rigdon debt. During the quarter, we reduced this indebtedness by approximately $89.8 million.
Liquidity at quarter-end was $174.7 million, consisting of $84.7 million of working capital and $90.0 million available under the $175.0 revolving credit facility. Total debt at September 30, 2008 was $487.4 million, comprised of $159.6 million for the 7.75% Senior Notes due 2014, $85.0 million outstanding under our revolving credit facility, and $242.8 under the debt assumed through the Rigdon acquisition.
Conference Call Information
GulfMark will conduct a conference call to discuss the earnings with analysts, investors and other interested parties at 9:00 a.m. EDT on October 29, 2008. Those interested in participating in the conference call should call 877-381-5943 (international callers should use 793-638-3424) five minutes in advance of the start time and ask for the GulfMark Third Quarter Earnings conference call. A telephonic replay of the conference call will be available for four days, starting approximately 2 hours after the completion of the call, and can be accessed by dialing 800-642-1687 (international callers should use 706-645-9291) and entering access code 70180115. The conference call will also be available via audio webcast and available for podcast download and can be accessed from the Investor Relations section of GulfMark's website at www.gulfmark.com or by visiting www.investorcalendar.com. The webcast will be available for replay until December 29, 2008. A transcript of the call will be filed with the SEC on Form 8-K as soon as practicable.
GulfMark Offshore, Inc. provides marine transportation services to the energy industry through a fleet of 93 offshore support vessels serving every major offshore energy market throughout the world.
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve known and unknown risk, uncertainties and other factors. Among the factors that could cause actual results to differ materially are: price of oil and gas and their effect on industry conditions; industry volatility; fluctuations in the size of the offshore marine vessel fleet in areas where GulfMark operates; changes in competitive factors; delay or cost overruns on construction projects and other material factors that are described from time to time in the GulfMark's filings with the SEC, including its Registrations Statement on form S-3 Dated September 12, 2008 and its Form 10-K for the year ended December 31, 2007. Consequently, the forward-looking statements contained herein should not be regarded as representations that the projected outcomes can or will be achieved.
Statement of Operations (unaudited) Three Months Ended ------------ ------------------------------------------------ Sept. 30, June 30, March 31, Dec. 31, Sept. 30, 2008 2008 2008 2007 2007 -------- -------- -------- -------- -------- Revenue $124,616 $ 81,893 $ 83,348 $ 91,455 $ 74,717 Direct operating expenses 46,482 29,912 27,698 31,908 26,876 Drydock expense 3,504 2,630 3,692 4,067 3,068 General and administrative expenses 11,123 9,421 8,777 9,612 7,482 Depreciation and amortization expense 13,463 9,515 8,748 8,476 7,615 Gain on sale of assets (2,347) (16,407) (3) (1,776) (4,131) -------- -------- -------- -------- -------- Operating Income 52,391 46,822 34,436 39,168 33,807 Interest expense (5,151) (935) (1,182) (1,809) (1,464) Interest income 385 296 296 451 825 Foreign currency gain (loss) and other 2,278 195 (150) (520) 134 -------- -------- -------- -------- -------- Income before income taxes 49,903 46,378 33,400 37,290 33,302 Income tax benefit (provision) (4,484) 403 (1,136) (24,621) (2,070) -------- -------- -------- -------- -------- Net Income $ 45,419 $ 46,781 $ 32,264 $ 12,669 $ 31,232 ======== ======== ======== ======== ======== Earnings per share: Basic $ 1.83 $ 2.06 $ 1.43 $ 0.56 $ 1.39 Diluted $ 1.78 $ 2.00 $ 1.40 $ 0.55 $ 1.35 Weighted average common shares 24,865 22,661 22,543 22,502 22,497 Weighted average diluted common shares 25,445 23,334 23,116 23,097 23,198 Operating Statistics Three Months Ended ----------- ---------------------------------------------------- Sept. 30, June 30, March 31, Dec. 31, Sept. 30, 2008 2008 2008 2007 2007 -------- -------- -------- -------- -------- Revenue by Region (000's) ---------- North Sea based fleet $ 59,169 $ 53,452 $ 60,508 $ 71,882 $ 58,117 Southeast Asia based fleet 21,094 20,175 16,228 13,154 10,940 Americas based fleet 44,353 8,266 6,612 6,419 5,660 Rates Per Day Worked ------------- North Sea based fleet $ 23,449 $ 21,766 $ 24,974 $ 28,324 $ 22,941 Southeast Asia based fleet 18,844 17,992 14,335 13,475 10,470 Americas based fleet 16,815 15,854 13,062 12,292 11,132 Overall Utilization ------------ North Sea base fleet 94.1% 95.3% 92.4% 93.0% 94.5% Southeast Asia based fleet 97.2% 86.6% 96.8% 93.2% 96.6% Americas based fleet 93.9% 85.5% 88.0% 97.0% 94.2% Average Owned/ Chartered Vessels -------------- North Sea based fleet 27.0 27.0 28.3 28.2 28.2 Southeast Asia based fleet 12.8 14.8 13.0 12.0 12.0 Americas based fleet 31.0 7.0 6.3 6.0 6.0 -------- -------- -------- -------- -------- Total 70.8 48.8 47.6 46.2 46.2 ======== ======== ======== ======== ======== Drydock Days ------------ North Sea based fleet 28 51 45 55 60 Southeast Asia based fleet 5 21 13 28 -- Americas based fleet 54 84 37 -- 14 -------- -------- -------- -------- -------- Total 87 156 95 83 74 ======== ======== ======== ======== ======== Expenditures (000's) $ 3,504 $ 2,630 $ 3,692 $ 4,067 $ 3,068 ======== ======== ======== ======== ======== At October 24, At October 23, 2008 2007 ---------------- ---------------- 2008(2) 2009(3) 2007(2) 2008(3) ------- ------- ------- ------- Forward Contract Cover(1) ------------------------- North Sea based fleet 96% 65% 85% 72% Southeast Asia based fleet 81% 51% 81% 34% Americas based fleet 92% 53% 100% 88% ------- ------- ------- ------- Total 90% 57% 86% 64% ======= ======= ======= ======= (1) Forward contract cover represents number of days vessels are under contract or option by customers divided by total calendar days vessels are available for charter hire and includes the newly acquired Rigdon fleet effective July 1, 2008. (2) Represents three months (10/1-12/31). (3) Represents full year (1/1-12/31). Statement of Operations (unaudited) ----------------------------------- Nine Months Ended ----------------------- Sept. 30, Sept. 30, 2008 2007 --------- --------- Revenue $ 289,857 $ 214,571 Direct operating expenses 104,092 76,478 Drydock expense 9,826 8,539 General and administrative expenses 29,321 22,699 Depreciation and amortization expense 31,726 22,147 Gain on sale of assets (18,757) (10,393) --------- --------- Operating Income 133,649 95,101 Interest expense (7,268) (6,114) Interest income 977 2,696 Foreign currency gain (loss) and other 2,323 222 --------- --------- Income before income taxes 129,681 91,905 Income tax benefit (provision) (5,217) (5,599) --------- --------- Net Income $ 124,464 $ 86,306 ========= ========= Earnings per share: Basic $ 5.33 $ 3.85 Diluted $ 5.19 $ 3.73 Weighted average common shares 23,358 22,413 Weighted average diluted common shares 23,994 23,127 Operating Statistics -------------------- Nine Months Ended ---------------------- Sept. 30, Sept. 30, 2008 2007 --------- --------- Revenue by Region (000's) ------------------------- North Sea based fleet $ 173,129 $ 169,782 Southeast Asia based fleet 57,497 28,103 Americas based fleet 59,231 16,686 Rates Per Day Worked -------------------- North Sea based fleet $ 23,389 $ 22,684 Southeast Asia based fleet 17,062 9,254 Americas based fleet 16,164 11,072 Overall Utilization ------------------- North Sea based fleet 93.9% 92.7% Southeast Asia based fleet 93.2% 93.4% Americas based fleet 91.7% 94.2% Average Owned/Chartered Vessels ------------------------------- North Sea based fleet 27.4 28.7 Southeast Asia based fleet 13.5 12.2 Americas based fleet 14.8 6.0 --------- --------- Total 55.7 46.9 ========= ========= Drydock Days ------------ North Sea based fleet 124 145 Southeast Asia based fleet 39 64 Americas based fleet 176 44 --------- --------- Total 339 253 ========= ========= Expenditures (000's) $ 9,826 $ 8,539 ========= ========= Owned & Managed Vessels: Count by Reporting Segment --------------------------------------------------- Southeast North Sea Asia Americas Total --------- --------- --------- --------- Owned Vessels as of June 30, 2008 28 13 6 47 --------- --------- --------- --------- Rigdon Acquisition -- -- 22 22 Newbuild Deliveries -- 1 3 4 Sales (1) (2) -- (3) Intersegment Transfers -- (1) 1 -- --------- --------- --------- --------- Owned Vessels as of October 28, 2008 27 11 32 70 Managed Vessels 15 2 6 23 --------- --------- --------- --------- Total Fleet as of October 28, 2008 42 13 38 93 ========= ========= ========= ========= As of As of Balance Sheet Data (unaudited) ($000) Sept. 30, 2008 Dec. 31, 2007 ------------------------------------- -------------- -------------- Cash and cash equivalents $ 39,451 $ 40,119 Working capital 84,685 83,556 Vessel and equipment, net 1,117,749 641,333 Construction in progress 132,577 112,667 Total assets 1,595,321 934,012 Long term debt 468,411 159,558 Shareholders' equity 886,966 676,091 -------------- -------------- Nine Months Nine Months Ended Ended Cash Flow Data (unaudited) ($000) Sept. 30, 2008 Sept. 30, 2007 --------------------------------- -------------- -------------- Cash flow from operating activities $ 131,931 $ 86,243 Cash flow used in investing activities (215,726) (111,560) Cash flow used in financing activities 83,666 238
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: GulfMark Offshore, Inc.
GLF may be getting a few new interested investors after that earnings report and some analyst action like in the vid posted.
I'd like to see it run another cycle to push out new 52 week highs. Of course, I have a bullish bias
GLF will now move quickly to $65-70 on RECORD EARNINGS, look at the stock move after the last 2 quarterly reports, up big
TTM earnings increase of 37% to $6.30
At the close of Q2 GLF was trading at $58.18 with a EPS TTM of $5.57 for a P/E of 10.45
Closing price today of $52.75 and the current EPS TTM of $6.30 gives a P/E of 8.37
Monthly average P/E over the past 3 yrs has ranged from 9.1 to 37.2 which, if applied to current EPS would yield a PPS range of $57.33 to $234.36 Oil service industry average P/E is reported at 17.9
Just crunching some numbers here but with the sustained growth rate in revenue and earnings, it is probable that a move higher is in the cards, IMO.
Earnings Q2 report
GulfMark Offshore Reports Record Results for Second Quarter 2008
7:00a ET July 29, 2008 (PrimeNewswire)
GulfMark Offshore, Inc. (NYSE:GLF) today announced earnings per share of $2.00 for the second quarter and $3.40 for the first half of 2008. Highlights include:
* Highest Quarterly and First Half Earnings Per Share in Company History * Acquired Rigdon Marine on July 1st Immediately Adding 19 Deepwater Gulf of Mexico Vessels * Southeast Asia Sequential Quarterly Revenue Growth of 24% and 139% Over Prior Year * Americas Revenue Growth of 25% in 2nd Quarter vs. 1st Quarter and 40% Year Over Year * Proactive Drydocking Increases Revenue and Profit Potential for Second Half of 2008
Financial Review
Revenues for the quarter of $81.9 million increased $7.6 million over the same period in the prior year principally due to increased day rates in our Southeast Asia and Americas regions. Net income for the second quarter was $46.8 million, or $2.00 per diluted share, including a gain of $16.4 million from the sale of two vessels, representing a 52% increase over the prior year level.
Revenues for the first six months of 2008 increased 18.2% over the same period in the prior year to $165.2 million resulting from higher revenues from all regions. Net income was $79.0 million, or $3.40 per diluted share, including the gains on the vessel sales, which represents a 43.5% increase in net income compared to the same period in the previous year.
Compared to the first quarter this year revenues decreased $1.4 million, or 1.7%, as a result of the strategic positioning of several vessels to earn higher revenues in future quarters, increased drydock days and lower revenue in the North Sea, partially offset by improved revenue from Southeast Asia and the Americas. Net income increased $14.5 million compared to the first quarter of 2008 due primarily to the gain on vessel sales.
Commentary
Bruce Streeter, President and CEO, commented: "Although concluded on the first day of the third quarter, the major accomplishment of the second quarter was obviously our coming to an agreement and subsequently closing the Rigdon Marine acquisition. As we've previously noted, we believe this immediate entry into a leading position in the U.S. Gulf comes at a time when the current and forward looking fundamentals of that market are very favorable. Day rates in this region are moving up and a recent report suggested that supply vessel utilization hit 100% in the month of June.
"With regards to the second quarter results, several areas deserve to be pointed out. First is the tremendous growth in the Southeast Asia region. Since the beginning of 2007 we have sold six older vessels operating in this region and have taken delivery of five new builds, the most recent being the Sea Choctaw in mid-July this year which has already started work on a one-year plus options charter in Vietnam. The combination of our vessel renewal initiative and the strengthening of day rates in the region have more than doubled this region's revenue and operating profits year over year. During the second quarter, we substituted the Sea Kiowa for the Sea Apache and have completed the modifications required for its initial two-year charter with Petrobras. The Sea Kiowa is currently underway to Brazil and is due to go on-hire late in the third quarter.
"The second area relates to our positioning for future quarters and the impact on the current quarter. As I noted on the conference call on July 8th, we took steps during the second quarter that, while negatively impacting revenue this quarter, improves our position as it relates to revenue and earnings in future quarters. We incurred a total of 156 drydock days in the quarter versus the 110 estimated, resulting in lost revenue of approximately $3 million and a 3.5% reduction in overall fleet utilization. The advantage to the remainder of the year is we have now completed the majority of our planned drydocks for the year, 12 out of 18, and accomplished two dynamic positioning (DP) conversions. Also, as we've discussed, two of our large North Sea based anchor handlers are due to begin term contracts in West Africa by mid-August. One of these vessels mobilized to a North Sea shipyard to undergo a DP conversion while completing its drydock, thus ensuring 100% availability once it begins its contract, but adversely affecting 2nd quarter revenues.
"Lastly, we completed the sale of two older vessels during the quarter, the Sea Diligent, a 1981-built anchor handler, and the North Crusader, a 1984-built anchor handler. As has been the case in all of our vessel sales, we sold both of them at a profitable level, generating a gain of $16.4 million on sales proceeds of $21.4 million. Also, early in the third quarter we completed the sale of the Sem Valiant, another 1981-built anchor handler, for an estimated $0.9 million profit. These sales are part of our continued fleet evaluation and renewal initiative, and in the case of the North Crusader, resulted in an addition to our managed fleet.
"Overall we are very satisfied with the achievements of the quarter and year to date. In comparing average vessel day rates mid-year compared to the previous year, we are pleased to note increases in each region. Reports indicate that our regions should continue to benefit from strong demand both in the near future and the longer-term as potential continues to develop in areas such as Brazil, the deepwater Gulf of Mexico, West Africa and Southeast Asia. The addition of Rigdon Marine, with its 22 vessels currently operating and 6 under construction, comes at optimal time coupled with the 11 remaining GulfMark new builds set to deliver over the next two years. We've significantly strengthened and diversified our operating base for the remainder of 2008 and are well positioned to continue to increasing shareholder value over the long-term."
Liquidity and Capital Commitments
Cash flow from operations totaled $76.6 million for the six months ended June 30, 2008, compared to $56.4 million for the same period in 2007. Cash from operations plus cash on hand were used to fund approximately $62.9 million in capital expenditures primarily related to the new build program. Estimated remaining cash commitments for 2008 under the new build program, including the new build program of Rigdon Marine, are approximately $51.7 million and are expected to be funded from a combination of cash flow from operations, available cash, and borrowings under the credit facilities assumed in the Rigdon Marine acquisition.
Liquidity at quarter-end was $295.5 million, consisting of $261.4 million of working capital and $34.1 million available under the $175.0 revolving credit facility. The working capital balance included $214.7 million of cash that included a $140 million draw on our revolver that was done in anticipation of our July 1 closing of the Rigdon Marine acquisition. Total debt at June 30, 2008 was $300.5 million, comprised of $159.6 million for the 7.75% senior notes due 2014 and $140.9 million on the revolver.
On July 1, 2008, we closed the Rigdon acquisition, utilizing $150 million of our cash on hand at the end of the quarter and assumed approximately $269 million of existing Rigdon debt and $26 million of working capital. Concurrent with the closing of the acquisition, we repaid $33 million of acquired construction loans. Upon completing the transaction our total outstanding indebtedness increased to approximately $536 million.
Conference Call Information
GulfMark will conduct a conference call to discuss the earnings with analysts, investors and other interested parties at 9:00 a.m. EDT/8:00 a.m. CDT on Tuesday, July 29, 2008. Those interested in participating in the conference call should call 877-381-5943 (international callers should use 706-679-4543) five minutes in advance of the start time and ask for the GulfMark Second Quarter Earnings conference call. A telephonic replay of the conference call will be available for four days, starting approximately 2 hours after the completion of the call, and can be accessed by dialing 800-642-1687 (international callers should use 706-645-9291) and entering access code 55764122. The conference call will also be available via audio webcast and available for podcast download and can be accessed from the Investor Relations section of GulfMark's website at www.gulfmark.com or by visiting www.investorcalendar.com. The webcast will be available for replay until October 29, 2008. A transcript of the call will be filed with the SEC on Form 8-K as soon as available.
GulfMark Offshore, Inc. provides marine transportation services to the energy industry through a fleet of ninety (90) offshore support vessels that serve every major offshore energy industry market in the world.
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve known and unknown risk, uncertainties and other factors. Among the factors that could cause actual results to differ materially are: price of oil and gas and their effect on industry conditions; industry volatility; fluctuations in the size of the offshore marine vessel fleet in areas where GulfMark operates; changes in competitive factors; delay or cost overruns on construction projects and other material factors that are described from time to time in the GulfMark's filings with the SEC, including its Form 10-K for the year ended December 31, 2007. Consequently, the forward-looking statements contained herein should not be regarded as representations that the projected outcomes can or will be achieved.
GulfMark Offshore selected in S&P Global Challenger List 2008
The S&P Global Challengers List highlights emerging players in the global equity markets. The List identifies 300 mid-size companies that show the highest growth characteristics along dimensions encompassing intrinsic and extrinsic growth. The list is rules-based with consistent standards applied to multiple countries. This report introduces the S&P Global Challengers Class of 2008 and identifies their representative countries and sectors.
link to pdf
http://www2.standardandpoors.com/spf/pdf/index/072308_GlobalChallengers_2008.pdf?vregion=us&vlang=en
Thanks for the chart Bud Fox, looks like we're back on the uptrend. If we break and close above the 20MA at 56.42, I'm thinking the trend continues.
1 week to earnings
GLF Chart ~> Looking Sexy Again
Charts are Coooool
July 8, 2008 02:57 pm ET ... S&P UPGRADES OPINION ON SHARES OF GULFMARK OFFSHORE
TO STRONG BUY FROM BUY (GLF 52.44*****):
GLF provided more details today on the completed Rigdon Marine deal, which we think offers the company a sizable catalyst. We see the deal as enabling GLF to compete strongly in the U.S. Gulf of Mexico offshore supply vessel market, particularly in deepwater where we see demand remaining solid. We believe the recently acquired assets can leverage rising dayrates and high spot exposure to generate sizable EPS growth. We are raising our '08 EPS estimate by $0.42 to $6.33, '09's by $1.64 to $8.24 and, on relative metrics and our DCF model, our 12-month target price by $7 to $78. /S. Glickman
GLF Q2 coming out July 29 before market opens and conf call at 9 AM.
The Rigdon deal really changes the game for GLF. It is my opinion that Rigdon was in a bind to sell because of the Jones Act issues of foreign interest in US vessels and he (Larry Rigdon) picked the operator who could add the most value to his visionary company going forward.
GulfMark has
a)The $$$ to make the deal
b)The expertise in managing the high-specification PSVs
c)A similar vision for PSV operations in harsh/deep/distant locations.
looks like you got that right and now that macd cross looks inevitable
Looks like a turning point here at around 51.25
Waiting to see confirmation of reversal
GLF getting into oversold territory.
Watching closely for a reversal.
Several SEC filings, 8K details of the Rigdon deal, forms 3 & 4. I only skimmed them so far, no suprises for me anyway. I'll crunch numbers later, holiday time.
GulfMark Offshore Announces Closing of Rigdon Marine Transaction
HOUSTON, July 1, 2008 (PRIME NEWSWIRE) -- GulfMark Offshore, Inc. (NYSE:GLF) today announced it has closed on the previously announced acquisition of Rigdon Marine. The combined company will initially operate 90 vessels with an additional 16 vessels under construction for delivery through 2010. Geographically diversified, the GulfMark fleet will operate 24 vessels in the U.S. Gulf of Mexico and bring the total Americas based fleet to 34 vessels, with an additional 43 vessels based in the North Sea and 13 vessels based in Southeast Asia.
Bruce Streeter, GulfMark's Chief Executive Officer, commenting on the closing, said, "We are pleased to welcome the Rigdon Marine employees to the GulfMark team and to complete the acquisition of the modern 28 vessel fleet (22 new builds delivered since 2004, and 6 under construction), Subsequent to the acquisition announcement on May 28, 2008, an additional PSV vessel of the R4000 Series (GPA 654 design) has been delivered and started its first job. On behalf of the Board of Directors, we also welcome Larry T. Rigdon as a valued member to the Board.
"Trends within our industry are very positive and, in our view, this is a particularly advantageous time to add these modern and effective vessels to our fleet. We will hold a conference call on July 8, 2008 to more completely describe the significant benefit to GulfMark from the completed acquisition."
Closing Details
GulfMark acquired 100% of the outstanding equity interest of Rigdon Marine and its holding company for approximately $150 million in cash, 2,085,700 shares of GulfMark common stock and the assumption of approximately $268 million in debt. In addition, GulfMark will fund approximately $19 million in expenditures to complete the vessels under construction. GulfMark funded the cash portion of the purchase price through a borrowing of $135 million under its revolving credit facility and cash on hand.
Conference Call
GulfMark will hold a conference call to discuss the transaction with analysts, investors and other interested parties at 9:00 A.M. EDT/8:00 A.M. CDT on Tuesday, July 8, 2008. Those interested in participating in the conference call should dial 877-381-5943 (706-679-4543 if outside the U.S. and Canada) 5 minutes in advance of the start time and ask for the GulfMark Conference Call. The conference call will also be available via audio webcast and can be accessed from the Investor Relations section of the company's website at www.gulfmark.com, or by going to www.investorcalendar.com. A telephonic replay of the conference call will be available for 4 days, starting approximately 2 hours after the completion of the call, and can be accessed by dialing 800-642-1687 (international callers should use 706-645-9291) and entering access code 54461545.
About GulfMark
GulfMark Offshore, Inc. provides marine transportation services to the energy industry through a fleet of ninety (90) offshore support vessels, and now serves every major offshore energy industry market throughout the world.
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve known and unknown risk, uncertainties and other factors. Among the factors that could cause actual results to differ materially are: price of oil and gas and their effect on industry conditions; industry volatility; fluctuations in the size of the offshore marine vessel fleet in areas where GulfMark operates; changes in competitive factors; delay or cost overruns on construction projects and other material factors that are described from time to time in the GulfMark's filings with the SEC, including its Form 10-K for the year ended December 31, 2007. Consequently, the forward-looking statements contained herein should not be regarded as representations that the projected outcomes can or will be achieved.
CONTACT: GulfMark Offshore, Inc.
Russell K. Bay, Vice President - Investor Relations &
Treasurer
(713) 963-9522
Rusty.Bay@GulfMark.com
Edward A. Guthrie, Executive Vice President - Finance &
CFO
(713) 963-9522
Ed.Guthrie@GulfMark.com
Workboat Magazine July '04
more background on Rigdon fleet of diesel-electric PSVs
Boats & Gear
Moving Day
Electrifying
Rigdon Marine goes diesel-electric for its new PSV fleet.
By Max Hardberger, Correspondent
In an example of technology catching up with the past, the first in a series of 210' ´54' diesel-electric platform supply vessels was recently delivered to Rigdon Marine Inc. The vessel is also the first for the new Houston-based offshore service vessel operator.
Built by Bender Shipbuilding & Repair Co. Inc., Mobile, Ala., and designed by Guido Perla & Associates Inc., Seattle, the Orleans has three generators forward, producing up to 4,560kw, and two electric Z-drives aft.
“Diesel-electric drives have been around for decades,” said Richard Currence Jr., Rigdon’s vice-president of operations, “but in the past their advantages were offset by their higher initial cost and higher fuel consumption. Now, with a modern diesel-electric’s fuel consumption substantially lower than a conventional drive’s, its higher initial cost is easier to justify.”
Two stern-mounted Steerprop SP 20 azimuthing Z-drive units driven by two Alconza 2,100-hp variable-frequency AC electric motors provide main propulsion. (The Z-drives turn 92" props.) The motors are directly coupled to eliminate the expense, weight and vibration of shafts.
Currence said the Steerprop Z-drives, manufactured in Sweden, are refinements on the proven Aquamaster design.
THE DP DIFFERENCE
Other offshore supply vessels with diesel-electric drives are already in service, but, according to Currence, the advent of dynamic positioning systems has brought the diesel-electric drive into its own.
DP systems give vessels the ability to standby near an offshore platform for cargo or other operations without the risk and difficulty of a line connection.
“Geared engines, even when connected to Z-drives, can only produce power within specific rpm ranges,” Currence said. “When a vessel is in DP mode, the engine computer has to clutch the engines in and out continually in order to maintain position. Not only is this hard on the drive train, it also causes delays in the vessel’s reaction to commands, degrading her position-keeping ability. By contrast, electric motors provide torque throughout their rpm range, so the Z-drive’s response to command is precise and instantaneous.”
Larry Rigdon, Rigdon Marine’s CEO, added: “There’s another dimension to diesel-electric drive and dynamic positioning. DP-2 requires total redundancy, so that a failed system can be bypassed without loss of control. That kind of redundancy in shaft and gear is expensive to buy and maintain. With diesel-electric, much of the redundancy in the electrical circuits is achieved through duplicate LANs (local area networks) that are cheap to buy and easy to maintain.”
According to Rigdon, the PSVs’ hull lines are derived from a highly successful series of tuna seiners designed by Guido Perla several years ago.
“Tuna seiners need to go out fast and come back heavy,” Rigdon explained. “They’ve always gone out 120 to 150 miles or more. Supply boat designers don’t usually consider the boat’s speed in light condition, but times have changed. The time saved on a light-boat trip means better utilization of the asset.”
Rigdon said that the Orleans has achieved speeds of 13 knots at full load and more than 15 knots light.
“Until recently, platform service vessels only went out a hundred miles or so. Now, with the longer trips involved in servicing deepwater fields, a new hull form was needed. We think this is the hull.”
Rigdon said that the task of fitting the vessel’s machinery and cargo tanks into the speedy lines of a seiner hull was made easier since the generating plant could be located anywhere in the hull. The small size of the electric Z-drive units also provided the cargo bay with more room, allowing placement of the tanks for best trim and stability.
LOWER FUEL BURN
Fitted into the vessel’s compact engine room are two 1,825kw (2,500 hp) generators driven by Cummins QSK 60 engines, and a third 910kw (1,220 hp) generator driven by a Cummins KTA 38 engine. The boat’s Alstom DP system can start and stop any of the diesel engines and bring any or all of the generators online as needed. By analyzing the vessel’s overall power requirements, and by using each diesel engine only within its peak-efficiency rpm range, the Alstom system’s computer can meet given power requirements at the lowest fuel-burn rates.
Rigdon said that the Orleans burns 230 gph at 13 knots fully loaded but only 88 gph at 10 knots, providing fuel savings of up to 10 percent over conventional drives. “The real fuel savings is in DP mode,” he added, “because that’s when shaft drives are least efficient. But even on long voyages, diesel-electric drives save money.”
Rigdon pointed out that another benefit to the reduced fuel-burn is a reduction of noxious emissions produced per ton-mile.
For harbor maneuvering and to assist in DP stationkeeping, the Orleans has two Berg bowthrusters driven by two 1,000-hp electric motors in a thruster room at the bow.
According to Jim Whitley, project manager for Rigdon, the choice of two smaller diameter thrusters over a single, larger thruster was dictated by the redundancy requirements of DP-2 certification, but the smaller tunnels also allowed the designers to fit them into the hulls more efficiently.
“We had Berg design special blades for (the thrusters),” Rigdon added. “Since bowthrusters are in constant use during DP, their noise does affect the crew environment. So we had Berg install special highly skewed blades in the thrusters to reduce noise. Looks like they’re working, because the captain says he has to look at the gauges to see if the thrusters are engaged.”
Another advantage to diesel-electric drives, according to Whitley, is their inherent reliability and the variety of responses available to meet an equipment failure.
“Compared to diesel engines, electric motors are almost failure-free,” said Whitley. “And each of the generators, even the little 910kw generator, can provide all the power the vessel needs, either underway or in DP mode, so the operator has a number of options if a failed component has to be isolated and bypassed.”
Although the primary purpose of moving the house forward was to provide a larger afterdeck, another benefit was more space in the cargo bay underdeck for the dry-material and liquid-mud tanks.
“With the house forward and the generators under the house, we’re able to run power back to the drives with flexible electric cables,” Whitley said. “That avoids the expense and the alignment difficulties of drive shafts, and greatly reduces lost space in the cargo bay. It lets us put the mud and dry-material tanks exactly where we want them for best stability and trim.”
Another advantage of the house-forward design is the efficiency it provides in the exhaust system. “We’re able to route the exhaust stacks straight up from the engines,” Whitley explained. “That avoids the loss of efficiency caused by deflecting the exhaust stream outboard to side-stacks.”
The Orleans’ huge cargo bay is able to carry 7,133 cu. ft. of bulk material and 5,107 bbls. of liquid mud. The liquid-mud tanks are designed so there’s no internal structure. With completely smooth interiors and fixed Butterworth washdown systems, they rarely have to be opened for cleaning. The vessel’s two Mission Magnum 5" ´4" ´14" pumps deliver mud to a height of 196' above the water, and her two 80-psi air compressors deliver 50 metric tons of dry cement or barite per hour to the same height.
The vessel’s hexagonal wheelhouse contains a head and refreshment station in addition to the forward and aft steering consoles. At the forward console, the operator faces two completely redundant Alstom ADP 21 control panels and plasma-screen displays. To maintain a desired track or position, the system accepts data input from the vessel’s two Furuno ARPA radars, two Leica DGPS receivers, and two Meridian gyrocompasses. In DP mode, a Cyscan laser reference unit provides distance and bearing to the platform. The system even accepts and incorporates wind data from digital anemometers.
MORE TO COME
The Orleans was delivered in early May amid a swirl of controversy regarding her financing.
According to Rigdon, the vessel was issued a U.S. Coast Guard Certificate of Documentation (COD) on May 13. On May 19, the Offshore Marine Service Association and several U.S. Gulf service vessel operators sent a letter to the Coast Guard alleging that the financing for the 10 Orleans-class boats Rigdon ordered from Bender violated foreign-ownership requirements for U.S. documentation.
“The Coast Guard did come to us with some questions,” Rigdon said. “We resolved the issue by obtaining financing for the boats through a U.S. subsidiary of the original financier, France’s Groupe Bourbon. The Coast Guard was satisfied with that and the vessel’s COD has remained valid since issuance. In fact, she’s already out on hire. The matter is closed.”
The second and third boats in the Orleans class will be the Bourbon and the Royal, both already in the water at Bender Shipyard, with the fourth through seventh under construction in the yard.
The Bourbon will be delivered in July and the Royal will follow in September.
“We’re funding the steel for number eight tomorrow,” Rigdon said. “We’ve got the funding for 10 boats. After that, we’ll see what happens.”
He added with a laugh, “Right now, we’re concentrating on putting the first 10 to work.”
Rigdon is confident that the U.S. Gulf will offer steady employment for his new vessels, even at a time when other OSV companies have boats stacked and looking for work.
“It’s a competitive market, and we’re confident these boats can compete in it. Maybe some others won’t, but that’s the free market.”
SIDEBAR
PSV rescue boats need special handling
When Rigdon Marine chose to fit each of its new PSVs with a 14'8"¥6'2" Schat-Harding rescue boat, some adjustments needed to be made.
Norway-based Schat-Harding’s SPMOB 350/3.65/12E davit had to be morphed into a lower profile configuration to fit the design of the Rigdon boats.
“Standard headroom for our davits is about 14 feet,” said Clifford Monaghan, Schat-Harding’s sales representative based in Covington, La., “but on this boat we had eight feet, three inches. This one had to be tucked in. By offering both luffing and slewing davits as well as low-profile configurations, we can accommodate most any deck arrangement we come across.”
The USCG/SOLAS-certified rescue boats are made of fiberglass and were built at the Norwegian company’s New Iberia, La., facility. The boat has a capacity of six.
“The boat is low maintenance, low cost, and will fit in a variety of rescue-boat davits,” said Monaghan. “By building the boat in Louisiana, we save thousands of dollars in freight alone. We can now produce and deliver a boat in less time than it took to ship one from Europe.”
The boats can be launched quickly. From the time the crew enters the rescue boat until the boat is in the water takes about one minute, said Monaghan.
“The fixed davit arm is slewing [swings out] less than 180 degrees, we’re lowering at IMO specific speeds of about 120' per minute, and we’re not going very far. The whole operation meets USCG and SOLAS requirements.”
The rescue boats are powered by 40-hp Johnson outboards that push the boats through the water at 14 knots. The engines comply with the latest USCG and EPA emissions regulations.
Schat-Harding specializes in total lifesaving system packages ranging from design consultancy through supply, fitting, maintenance, and lifetime service. One of its main target areas is the offshore oil and gas industry. — Ken Hocke
RIGDON PSVs SPECIFICATIONS
Builder: Bender Shipbuilding & Repair
Designer: Guido Perla & Associates Inc.
Owner: Rigdon Marine Inc.
Mission: Oilfield service
Length: 210' Beam: 54' Depth: 19'
Maximum Draft: 16'
Main Propulsion: (2) Alconza electric AC motor, 2,100 hp
Z-Drive: (2) Steerprop SP 20
Bowthruster: (2) Berg, 1,000 hp
Propellers: (2) 92" dia.
Ship’s Service Power: (2) Cummins QSK60 diesel engine, 1,825kw; Cummins KTA38, 910kw; Cummins 6CTA8.3 diesel engine, 170kw
Speed: 13 knots loaded; 15 knots light
Hull construction: Steel
Crew Capacity: 22
Tankage: Fuel, 4,881 gals.; liquid mud, 5,107 bbls.; potable water, 5,642 bbls.; drill water, 2,886 bbls.; bulk mud/cement, 7,133 cu. ft.
Electronics: (2) Furuno 2115 radar with ARPA; (2) Leica MX420 DGPS receiver; (2) Furuno FA100A1S auto-identification transceiver; Furuno FE700 depthsounder; Furuno DS80 doppler speedometer; Furuno MX500 Navtex receiver; Furuno FAX207 weatherfax receiver; (2) Furuno FM8500 VHF transceiver; Furuno F1815 GMDSS station; (2) Meridian gyrocompass
Classification: ABS +A1 Offshore Support Vessel +AMS +DPS-2, SOLAS, USCG Subchapter L, Full Ocean
Delivery Dates: Orleans, May; Bourbon, July; Royal, September
Workboat Magazine September '04
a little background on the Rigdon - Jones Act issue (now resolved beyond any doubt with the acquisition by GulfMark Offshore)
News Log
Coast Guard bill closes Jones Act loophole
Before breaking for summer recess, a House-Senate Conference Committee signed off on the Coast Guard’s fiscal year 2005 budget. It authorized $8.2 billion for Coast Guard operations and new equipment.
The big news for the marine industry was that it contained language to close the Jones Act lease-financing loophole. It also brought towing vessels under Coast Guard inspection.
The marine industry has been working since 1996 to fight what it called a major threat to billions in investments made by U.S. operators in Jones Act vessels. Congress approved a change in the law in 1996 that was meant to expand lease-financing sources for Jones Act vessels. At the same time, Congress did not want to change the requirement that these vessels must be built in the U.S. and owned and operated by U.S. citizens. The marine industry, led by the American Waterways Operators, the Offshore Marine Service Association and others, cried foul saying that the expanded financing was instead permitting foreign operators to gain a foothold in the U.S. Jones Act vessel market.
The final fiscal 2005 Coast Guard Authorization Act changed the requirements for coastwise endorsements. The change “protects U.S.-owned, -flagged, and –crewed vessels by clarifying that foreign firms can finance, but not operate, ships in the coastwise trade,” the House said in a summary of H.R. 2443. It also grandfathered in certain foreign-chartered vessels that are currently permitted to operate in U.S. waters.
“We consider this a very big victory for the U.S.-flag fleet and a victory for the many maritime groups that came together,” said Ken Wells, president of Harahan, La.-based OMSA. “When we had to come together and rally around the Jones Act, the industry did.”
Wells said this should put an end to arrangements such as Rigdon Marine LLC’s deal with France-based Groupe Bourbon. Groupe Bourbon is providing up to $125 million in financing to Rigdon for the construction of up to 10 210'¥75' diesel-electric platform supply vessels — almost 100 percent of the construction costs. The deal called for the operation and chartering of the vessels in the U.S. market by Rigdon with Groupe Bourbon marketing the vessels internationally through its maritime group. So far, two boats have been delivered with a third scheduled for delivery in July.
“We believe it will now be impossible for Groupe Bourbon to do a similar deal such as Rigdon’s in the future,” said Wells, who added that OMSA is urging the Coast Guard to continue to study whether the arrangement violates ownership requirements for U.S. documentation. “We think the Coast Guard needs to look at whether this constitutes [foreign] control over the vessels.”
Rigdon officials have maintained that the issue has been resolved since financing for the boats was obtained through a U.S. subsidiary of Groupe Bourbon.
The authorization act also gave the Coast Guard the authority to establish regulations requiring the inspection of towing vessels and governing the maximum hours of service for towing vessel crewmen.
Included in the Coast Guard budget authorization is $1.1 billion for the Integrated Deepwater System, which will put the program on track for a 15-year timeline, five years ahead of the original 20-year schedule.
— David Krapf
Workboat Magazine May '08
Cover Story
Deep Route
Outlook stays rosy for the deepwater market.
By Jerry Greenberg, Correspondent
The U.S. Gulf offshore sector continues to be a tale of two markets — the Outer Continental Shelf and the deepwater/ultradeepwater area.
The latter continues to be extremely active and offers a bright future for operators with modern deepwater vessels as new semisubmersibles and drillships are set to enter the Gulf under long-term contracts. Reportedly, several existing deepwater rigs will mobilize to the Gulf during the next couple of years, all with long-term contracts.
The OCS, however, continues to struggle. While there are some signs that the Gulf jackup rig market could strengthen a bit in the near term, drilling contractors continue to seek more lucrative work outside the Gulf for their jackups. Vessel operators that can move vessels to international markets are following the rigs.
Offshore service vessel operators continue to build new boats that can service deepwater and ultradeepwater rigs and platforms as well as be economically competitive on the shelf. For these diversified vessel owners, the future is just as bright as deepwater rig activity.
But standard 180' supply vessels may finally be nearing the end of the line, at least as far as operating in the Gulf is concerned.
Demand remains high for rigs able to work in the deepwater market. While several semisubmersibles are scheduled to mobilize out of the Gulf this summer, three newbuild deepwater rigs should replace those rigs in the Gulf by the end of the year. Two are scheduled to arrive in the Gulf this summer, and the third in November. There are another half dozen or so semisubmersibles and drillships scheduled to enter the U.S. Gulf this year from other areas — at least temporarily. Some deepwater rigs will move into the area to drill several wells, then will mobilize to another market to drill for other wells.
Next year, an additional 10 deepwater rigs are expected to enter the Gulf, followed by at least two more in 2010. There are also several ultradeepwater drillships under construction for delivery in 2011 and 2012 with long-term drilling contracts for work in the U.S. Gulf.
Flat Gulf Jackup Market
The Gulf jackup rig market is expected to be essentially flat for the remainder of 2008, according to Tom Marsh, publisher USA for ODS-Petrodata, Houston. Drilling contractors are still seeking more lucrative markets in international areas, including offshore Mexico, which continues to be one of the most active and easily accessible markets for U.S. Gulf-based jackups as well as semisubmersibles. Additional rigs are expected to move to Mexico from the U.S. and international areas. Other strong areas are the Middle East, West Africa and Southeast Asia.
For example, Hercules Offshore purchased three jackup rigs from Transocean last February, two rated for 250' of water and one capable of working in up to 350' of water, the water depths most in demand globally. Hercules immediately began negotiating long-term contracts for two of the rigs, and the company was expected to market the third jackup internationally soon after the sale closed in mid-March. Additionally, one other jackup relocated from the Gulf to the Middle East in April. These rigs are in addition to the dozen or so rigs that exited the Gulf during 2007.
Marsh and others pin the hopes of the U.S. Gulf jackup market partly on the price of natural gas, which has increased by about 50 percent since last October when the Henry Hub price was $6.69 per MMBtu. At the beginning of this year, the price had risen to $7.84 and by mid-March had increased to $9.69. Futures prices through the summer indicate gas prices could reach more than $10 per MMBtu and remain above that level for several months.
However, Marsh said, it’s expected that the U.S. jackup market will “only see a very modest increase over the next few months. We are forecasting a net demand increase of four rigs through most of the next 12 months. Demand could fluctuate between 44 and 55 jackups throughout 2008.”
Perhaps the best news is that Marsh doesn’t expect to see a decline in jackup rig activity. Still, he’s not very bullish on the shelf’s near-term prospects. “Based on rig demand and the level of anticipated construction activity, [this year] it is not going to be a good market for service and supply contractors on the shelf.”
Boat companies that can move their vessels out of the Gulf are doing just that, following the rigs to areas of higher activity. For example, Trico Marine Services has reduced the number of its Gulf of Mexico vessels by over 50 percent since 2004. Trico moved six vessels to overseas markets during the fourth quarter alone. This brought the total number of Trico vessels that left the Gulf during 2007 to 13. Most of the vessels were moved to Mexico and West Africa. Trico currently operates about 41 supply vessels, with just 12 of them in the U.S. Gulf.
As a result, the company’s international operations accounted for 90 percent of its total earnings last year.
The Houston-based company said that average day rates for its Gulf fleet decreased 22 percent last year. It’s likely that the company will continue to market its vessels internationally and move what it can of the remaining Gulf fleet out of the region when opportunities arise. Trico also has two supply vessels under construction at Bender Shipbuilding & Repair set for delivery this summer. They were still available for contract in mid-March, which raises the possibility that they will also find work outside the Gulf.
There are only a few large boat operators in the Gulf with global operations that give them the flexibility of moving equipment to international regions. In other cases, smaller vessel operators may have to partner with larger operators that already have an international infrastructure established.
“All of my crewboats under construction will be SOLAS ready and capable of working anywhere in the world,” said Ed Schreiber with Southern States Offshore. “If I found something internationally more than likely I would have to join up with one of the [larger companies] already established in the region. But you go where the work is.”
Southern States is having a pair of 168', 7,200-hp crewboats built at Island Boats in Jeanerette, La. The first crewboat is scheduled for delivery in January 2009. (See related story in April WorkBoat, page 42.) Southern States also plans on taking delivery of a 240' supply vessel in 2010 from another builder.
John Belsome with Laborde Marine LLC, New Orleans, is also looking at moving OSVs out of the Gulf. “We are looking at international areas,” he said. “We have operations in Brazil so we are looking there as well as in the Gulf.”
Too Many Boats?
Overall, deepwater will be the place to be for drilling contractors. This is good news for vessel operators that have deepwater units and are building new boats aimed at this market. Among them are Hornbeck Offshore Services, Southern States, Rigdon Marine and Abdon Callais.
Hornbeck recently ordered two additional proprietary 240 ED class supply vessels to be built at Atlantic Marine, which is also building four identical vessels for the Covington, La.-based operator. The two new boats will be delivered in 2010. With these orders, the company’s newbuild program now consists of contracts with three U.S. yards to build 16 DP-2 vessels, made up of six 240 ED vessels, nine 250 ED units and one 285' boat.
Abdon Callais took delivery of a new 205' DP-2 vessel earlier this year from Master Boat Builders. The Golden Meadow, La., vessel operator is scheduled to take delivery of six additional boats in 2008 and also holds shipyard options to build similar boats.
Laborde recently took delivery of a 162' crewboat with another to be delivered in September. The company also has two 265' DP-2 supply vessels under construction and is considering ordering two more identical supply vessels.
In mid-March, Rigdon Marine had four of its 4000-class supply vessels still to be delivered as well as seven aluminum vessels. The latter comprises four 181' fast supply vessels scheduled for delivery over the next 12 months, two 165' crewboats and one 176' DP-1 jet-powered crewboat. “We are also looking at other designs,” said Billy Guice, a vice president with Rigdon Marine.
There were reports earlier this year that several vessel operators were worried about overbuilding and had not exercised their options. At the same time, there have also been reports that several boat companies are still seeking slots for new vessels at U.S. yards. The bottom line, however, is that vessels ordered now likely won’t be delivered until 2010 or 2011. Some of this is attributable to tight shipyard capacity, but it is primarily a result of extremely long lead times for equipment.
“If a vessel owner does all of their due diligence and talks with the right shipyards they should be able to identify some capacity,” said Guice. “But delivery won’t necessarily be as soon as they hoped. It isn’t necessarily the shipyard that is the major clog in the artery. It is the key components, winches, engines, Z-drives and DP systems.”
However, deliveries of some of the new vessels should coincide with the arrival of several large state-of-the-art rigs to the Gulf. These rigs will be under multiyear contracts to operators with portfolios bursting with newly leased deepwater tracts.
Strong Gulf lease sales
A sign of just how strong the deepwater and ultradeepwater markets are was evident in the two latest Central Gulf of Mexico OCS Lease sales — #205 held in October and #206 held in March.
The central Gulf offshore Louisiana is still the prime area of the Gulf despite over 60 years of exploration and production since the first well was drilled in 1947.
In sale #205, a total of 84 companies submitted 1,428 bids on 723 tracts. High bids totaled $2.9 billion, at that time the second highest total of high bids in U.S. leasing history. It was thought that this amount would be tough to top, but that’s just what happened six months later when a whopping $3.7 billion in 1,057 bids for 615 tracts in Central sale #206 were submitted. Before the March Central Gulf lease sale, you have to go all the way back to the 1983 sale to find a larger total dollar amount of high bids.
Operators set their sights on deepwater acreage in both sales, with about two-thirds of the blocks receiving bids in sale #205 located in deepwater and ultradeepwater. About one-third of sale #206’s blocks are in ultradeepwater of 5,249 feet or greater. In sale #205, operators submitted bids on 477 deep and ultradeepwater blocks compared with 246 bids on shallower water tracts. Operators in sale #205 also submitted high bids of $2.6 billion just for the deepwater blocks, illustrating how determined the companies were to garner certain areas thought to hold large reserves, or surrounding blocks where large reserves were already discovered.
In Sale #205, Shell Offshore submitted the highest bid, a $90.5 million offer for a block in 6,562' of water in the Walker Ridge area. Competition for certain blocks was intense, with Shell’s Walker block attracting 13 bids.
In Sale #206, Anadarko Petroleum and its partners offered the highest bid of the sale, over $105 million for Green Canyon Block 432 in deepwater. The second highest bid was higher than the highest bid in Sale #205: Marathon Oil Co.’s $93,024,910 bid. The deepest block receiving a bid was in Lloyd Ridge Block 286 in more than 10,000' of water.
Of course, the more operators spend for a block, the more likely they are to drill on it. That’s good news for the future of drilling contractors and boat operators with deepwater-capable equipment.
— J. Greenberg
I updated the ibox with a link to the annual report.
Some good narrative on SE Asia and Brazil in the intro. Can't wait to see Rigdon close and start performing!
Looks like this is the bottom of another dip. I had a buy order triggered yesterday to add some more.
spec machine, you're no slacker and either is GLF!
I figured I had better get on the stick and get that posted before the "one" and only other person that boardmarked this board starts giving me crap about being a slacker mod.
Soooo, there it is - a new VP of Finance.
I'm sure that integrating an operation like Rigdon will be handled by Mr. Kneen in an efficient and productive manner.
Except for the Jones Act issue (which will be moot as of the closing date), Rigdon is a work of pure genius. Innovative design and ultra-high specification vessels to service the deep water sector is reason enough to be confident in their ability to provide excellent revenues. Adding in the fuel efficiency of the diesel-electric drive system is icing on the cake.
Brazil - here we come!!!
The only thing that would make this better is a $75 million contract with Deep Down (DPDW) for deepwater products and services
To find real treasure you've gotta DIG
GulfMark Offshore Announces Appointment of V.P. of Finance
Monday June 9, 4:24 pm ET
HOUSTON, June 9, 2008 (PRIME NEWSWIRE) -- GulfMark Offshore, Inc. (NYSE:GLF - News) announced today that it has appointed Quintin V. Kneen as Vice President-Finance. Previously, Mr. Kneen was Vice President-Finance & Investor Relations for Grant Prideco, Inc., serving in executive finance positions at Grant Prideco since June 2003. Prior to joining Grant Prideco, Mr. Kneen held executive finance positions at Azurix Corp. and was an Audit Manager with the Houston office of Price Waterhouse LLP. Mr. Kneen holds an M.B.A. from Rice University and a B.B.A. in Accounting from Texas A&M University and is a Certified Public Accountant and a Chartered Financial Analyst.
Mr. Kneen brings additional financial experience to the existing management team, particularly in the area of mergers and acquisitions. Bruce Streeter, President and CEO, said, ``Mr. Kneen's experience in managing acquisitions and the related transitions will be an immediate benefit to GulfMark as we conclude the recently announced agreement with Rigdon Marine. His past financial management experience, as well as his business development background, will also complement and expand the capabilities of our current management team.''
GulfMark Offshore, Inc. provides marine transportation services to the energy industry through a fleet of sixty-three (63) offshore support vessels, primarily in the North Sea, offshore Southeast Asia, and the Americas.
Certain statements and answers to questions during the company's presentation and projections shown on the company's slide presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve known and unknown risk, uncertainties and other factors. Among the factors that could cause actual results to differ materially are: price of oil and gas and their effect on industry conditions; industry volatility; fluctuations in the size of the offshore marine vessel fleet in areas where the Company operates; changes in competitive factors; delay or cost overruns on construction projects and other material factors that are described from time to time in the Company's filings with the SEC. Consequently, the forward-looking statements made during the presentation or projections depicted on the company's slide presentation should not be regarded as representations that the projected outcomes can or will be achieved.
Contact:
GulfMark Offshore, Inc.
Russell K. Bay, Vice President - Investor Relations &
Treasurer
(713) 963-9522
Rusty.Bay@GulfMark.com
Edward A. Guthrie, Executive Vice President & CFO
(713) 963-9522
Ed.Guthrie@GulfMark.com
Just in case there are actually people reading this board -
After the recent announcement of Gulfmark inking a deal to purchase Rigdon, I was a bit concerned about how the Jones Act issues with Rigdon/Bourbon would be dealt with.
I finally had a chance to dig into it further this weekend and the following articles sum it up.
Article #1 is a background item that was the best (bearish Rigdon/Bourbon) short summary of the issue that I found and Article #2 is an opposing view, stating that the financing offered by Bourbon was allowed in the rules. Article #3 is from the Bourbon website (english version) and states that Bourbon will sell its share to Gulfmark, issue resolved!
#1 Another assault on the Jones Act.
By Wells, Ken
Publication: Marine Log
Date: Wednesday, June 1 2005
When Congress passed the Jones Act in 1916, it meant to prohibit foreign control of vessels engaged in domestic trade "by any other means whatsoever." At the time, Congressman Saunders said, "We have sought to make the language so sweeping and comprehensive that no lawyer, however ingenious, would be able to work out any device under this section to keep the letter, while breaking the spirit of the law."
The jury is still out on whether lawyers have gotten more ingenious over the years, but the assaults on the Jones Act just keep on coming. A recent column in Marine Log (April 2005, p. 48) written by Constantine Papavizas purported to be an objective look at whether mortgages might be used to circumvent the Jones Act. Unfortunately, he failed to mention his involvement, working on behalf of a foreign shipping company that is using mortgages to establish a presence in the Jones Act trade. Nor did he mention his role in promoting the lease finance loophole in the Jones Act that Congress was forced to close last year.
In the interests of full disclosure, let me explain that the Offshore Marine Service Association (OMSA) has taken the lead in trying to stop the potential abuse of the Jones Act by Mr. Papavizas' client. Let's be clear from the start that this threat doesn't come from foreign banks or other financial institutions making conventional passive loans. It comes from foreign vessel owners who would use mortgages to buy market share in the U.S. Jones Act trade. By way of background, in 2002, France's Groupe Bourbon announced a major newbuild program to establish itself in a number of offshore oil and gas areas, including the Gulf of Mexico. Bourbon's intent couldn't have been clearer. According to its annual reports, "thus 2002 saw the strengthening of our offshore division, with growth operations in ... the United States" and "the underlying aim is to develop a corporate presence in the Gulf of Mexico."
To establish that corporate presence in the Jones Act trade, Bourbon signed a deal with Rigdon Marine to pay $12.5 million each for the construction of 10 U.S. flag vessels. Who was Rigdon Marine? A start-up company that had no track record and no vessels. In fact Rigdon only came into existence about a week before the deal with Group Bourbon was signed.
The deal was first pitched as a lease finance arrangement, but the Coast Guard was so suspicious of Bourbon's control of Rigdon that it delayed the coastwise endorsement on the first boat and later Congress outlawed that type of lease finance agreement altogether. By then Bourbon had already moved onto its next scheme, a $128 million mortgage to Rigdon (or more than the cost of constructing the vessels.) In the experience of OMSA's members, that kind of "no money down" deal is unheard of in the offshore sector and OMSA has been pushing for a thorough investigation for more than a year.
So where are we today? Despite a unified concern from the offshore sector, eight of the 10 Rigdon OSVs are now in service, all bearing the distinctive Groupe Bourbon green hull colors. And as for control, the mortgage deal makes it clear that as a practical matter, Rigdon can't sell the boats or even refinance without Bourbon's permission. Nor can Rigdon take its boats anywhere that they would compete directly with Bourbon without Bourbon's permission. How much more evidence of control is necessary?
More than anything we are concerned about the implications for the Jones Act. The Coast Guard says its powers to investigate are limited and that it could do little more than scratch beneath the surface of the deal. For example, the Coast Guard lacks the authority to seek information from the mortgagee that would allow it to unmask impermissible non-citizen control of vessels engaged in the U.S. Coastwise trade.
That is the real problem here. If the Bourbon approach allows a foreign vessel owner to "develop a corporate presence" in the Jones Act trade without any acceptable level of scrutiny by the U.S. government, the next deal can't be far behind, followed by the next deal and the next and the next. That is how loopholes are born.
By Ken Wells, President, Offshore Marine Service Association (OMSA)
#2 also from Marine Log date unknown (probably mid 2002)
A SPLASH OF BOURBON IN THE GULF
Larry Rigdon sure knows how to make the most out of “retirement.” The former Tidewater executive vice president created a stir in late November when his newly formed company, Rigdon Marine LLC, New Orleans, La., announced it would use $125 million in financing from France’s Groupe Bourbon to build ten deepwater DP2 Platform Supply Vessels (PSVs) at Bender Shipbuilding & Repair Co., Inc., Mobile, Ala.
So why would Rigdon, a 28-year veteran of the offshore energy business, want to go up against the likes of Tidewater, Edison Chouest, and Seabulk International? “
I was bored and I wasn’t really ready to retire,” says Rigdon (laughing). “Really, I’ve always had a long term desire to own my business. So when I did not get the top job [at Tidewater], I saw it as an opportunity.”
Continues Rigdon, “One question I had to ask was, ‘How do I differentiate the company from existing players. I had to use the technological advantage. I saw a market niche that I could fill, if I was willing to take a technology risk. That’s the huge advantage of being a small company. We think we can be more flexible than a large company.” Adds Rigdon, “If you had to look at someone whose done this really well, it’s Edison Chouest. They took a technology risk. And it’s paid off.”
The PSVs were designed in conjunction with naval architectural and marine engineering firm Guido Perla & Associates, Inc., Seattle.
One of the technological edges incorporated in the 210 ft PSVs ordered by Rigdon Marine is their diesel-electric propulsion plants. “That’s unusual for a vessel this size,” says Rigdon. “But Otto Candies showed me the way with that. Diesel-electric propulsion will improve the environmental and economic performance of these vessels. Adds Rigdon, “Ordinarily, offshore service vessels of this size go about 10 knots at full load; with this design we can go 13 knots; a 30% gain in efficiency.”
The vessels’ electric motors will drive the 360 degree azimuthing thrusters. One rumor had it that the PSVs would be fitted with azipods.
“Azipods are excellent technology, but too expensive—at least right now—for vessels this size. They’re are better suited for use in 280 footers,” says Rigdon.
Each PSV will be equipped with a DP2 level dynamic positioning capability for superior station keeping. DP2 is the latest generation of dynamic positioning technology, the most advanced equipment available, and its operational capability will be certified by the American Bureau of Shipping. All the vessels will be U.S. flag.
The Coast Guard will allow the use of a dynamic positioning (DP) system on an OSV for the purpose of “mooring” the vessel during oil and hazardous material (HAZMAT) transfers to and from an offshore facility or rig, in water depths that exceed 300 feet where compliance with the mooring requirements of 33 CFR 156.120(a) became difficult and/or expensive.
In shallower waters vessels must fully comply with 33 CFR 156.120(a) using a suitable anchoring/mooring system.
Rigdon plans to have Rigdon Marine certified under the strict, high standards of ISO 9000 and ISO 14000, substantially exceeding the minimum ISM (International Safety Management Code) standards.
According to Rigdon, Bender has already developed a build strategy and a complete 3D CAD model should be ready for a “complete walkthrough” in April 2003. Once approved, it will take Bender between 9 to 10 months to build the first vessel.
Deliveries are scheduled to begin in the first quarter of 2004, continuing until the third quarter of 2005.
These vessels were designed to satisfy the needs of the growing worldwide deepwater offshore markets, with current focus on West Africa, Brazil and the Gulf of Mexico. They will also serve to rejuvenate the Gulf of Mexico classical service/supply vessel fleet, much of which exceeds 20 years in age.
MUCH ADO ABOUT BOURBON
Rigdon sought and obtained interim financing from France’s Groupe Bourbon for the venture. Groupe Bourbon concentrates in two business sectors: retail distribution and maritime services with a fleet of over 200 vessels operating in harbor towage, dry bulk transport and offshore oilfield services.
The agreement between Rigdon and Groupe Bourbon provides for the operation and employment of the vessels in the U.S. market by Rigdon Marine. The offshore division of Groupe Bourbon will assist Rigdon Marine with the marketing of the vessels internationally.
This development will provide a major step forward for Groupe Bourbon’s strategic growth in the deepwater offshore marine service sector.
When it was announced, the Rigdon Marine-Groupe Bourbon deal raised a hullabaloo among Jones Act proponents. But shipbuilding consultant Tim Colton doesn’t see what all the fuss is about.
On Colton’s website, www.coltoncompany.com, Colton says, “The American Waterways Operators and a few other folks are getting all worked up about the use of foreign sources of lease financing for Jones Act ships. This is allowed under a change in the regulations that was introduced in [the Coast Guard Authorization Act of 1996] and is being used now, for example, by Rigdon Offshore to obtain financing from Groupe Bourbon for the construction of a 10-vessel fleet of PSVs.
“Proponents say that this is a healthy change, introducing much needed new sources of capital into the industry, without any down side, and gives overseas investors an interest in preserving the Jones Act. Opponents say that the revised language was snuck into the law in the middle of the night without any discussion, is contrary to all the principles of the Jones Act and presents a serious threat to the national security.
“I say that money is money and the more of it our industry can lay its hands on, the better (me included of course).” Says Colton, “I suspect that the Jones Act operators who object to this financing mechanism are: (a) jealous and (b) afraid of the competition.”
#3
Paris, May 29, 2008, pdf version
Under the merger proposal between Rigdon Marine Corporation and Gulfmark Offshore announced on May 28, BOURBON is to sell its interest in the Rigdon companies.
This sale will be effective on completion of the merger which is due to take place in the 3rd quarter of 2008.
For BOURBON it will generate:
capital gain on sale of approximately 60 million euros,
repayment by Rigdon of loans granted by BOURBON, for a total of 110 million euros, which, in addition to the cash proceeds from the sale, will reduce the group’s debt.
Since January 2006, BOURBON had contributed to the implementation of Rigdon’s financial structure.
As this company has been so far accounted for according to the equity method, the sale will have no impact on revenues nor on BOURBON’s EBITDA.
AP - Moody's leaves GulfMark ratings unchanged
Friday May 30, 1:12 pm ET
Moody's leaves GulfMark ratings unchanged for now after Rigdon Marine deal
NEW YORK (AP) -- Moody's Investors Service said Friday it would not change its ratings on GulfMark Offshore Inc. after the oil service provider agreed to buy private offshore vessel operator Rigdon Marine Corp. for about $283 million in cash and stock.
The rating firm affirmed GulfMark's speculative-grade "Ba3" corporate family rating and a "B1" rating on $160 million worth of senior notes due 2014.
The rating on the notes could be cut to "B2" once the deal closes, however, because of the $268 million in additional debt GulfMark will take on, Moody's said.
The outlook is "Stable."
Under the terms of the deal, GulfMark will pay $150 million in cash and offer 2.1 million GulfMark shares to Rigdon.
GulfMark shares rose $2.33, or 3.6 percent, to $67.75 in afternoon trading
link - http://biz.yahoo.com/ap/080530/gulfmark_moody_s.html?.v=1
AP - GulfMark shares jump to new high on deal news
Friday May 30, 5:09 pm ET
GulfMark shares surge to all-time high after oil service provider announced Rigdon deal
NEW YORK (AP) -- Shares of GulfMark Offshore Inc. surged to an all-time high Friday, a day after the oil service provider announced plans to buy private offshore vessel operator Rigdon Marine Corp. for about $283 million.
Wall Street analysts cheered the move, with one raising his rating on the company and another noting that the acquisition "significantly expands" the Houston company's U.S. presence.
Under the terms of the deal, GulfMark will pay $150 million in cash and offer 2.1 million GulfMark shares to Rigdon, making the stock portion of the deal worth about $133 million at the time it was announced. GulfMark will also assume about $268 million in debt and spend about $19 million to complete the construction of some new vessels.
Capital One Southcoast analyst Pierre Conner III raised his rating on GulfMark, which provides transportation to offshore oil drillers, to "Add" from "Neutral" after the transaction was announced.
"With the deal, GulfMark is delevered from the North Sea and adds a large (Gulf of Mexico) exposure that should provide more stable dayrates that should continue to grow," he wrote in a client note.
Jefferies & Co. analyst Judson Bailey, who noted that the deal "significantly expands" GulfMark's U.S. presence, well positions the company to take advantage of demand in lucrative "deepwater" regions far from the coast.
GulfMark shares rallied $1.72, or 2.6 percent, to $67.13. The stock jumped as high as $70.98, a new high, earlier in the session.
link - http://biz.yahoo.com/ap/080530/gulfmark_mover.html?.v=1
That sure brings GLF more into the domestic market than they have been.
Wish I hadn't pared back so much here lately.
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http://www.gulfmark.com/index.php
GulfMark Offshore, Inc. provides offshore marine services primarily to companies involved in offshore exploration and production of oil and natural gas. The Company's vessels transport materials, supplies and personnel to offshore facilities, as well as move and position drilling structures. The Company and its subsidiaries operate through three segments: the North Sea, Southeast Asia and the Americas. As of December 31, 2006, its fleet consisted of 59 offshore supply vessels, of which 33 are in the North Sea, 12 vessels offshore Southeast Asia, four vessels offshore Brazil, two in the Mediterranean Sea, two vessels offshore India, three in the Gulf of Mexico and three offshore Africa. In April 2006 and September 2006, it acquired two vessels under construction, which are working in Southeast Asia. Its principal customers are major integrated oil and natural gas companies, large independent oil and natural gas exploration and production companies working in international markets.
GulfMark Offshore Announces Closing of Rigdon Marine Transaction |
HOUSTON, July 1, 2008 (PRIME NEWSWIRE) -- GulfMark Offshore, Inc. (NYSE:GLF) today announced it has closed on the previously announced acquisition of Rigdon Marine. The combined company will initially operate 90 vessels with an additional 16 vessels under construction for delivery through 2010. Geographically diversified, the GulfMark fleet will operate 24 vessels in the U.S. Gulf of Mexico and bring the total Americas based fleet to 34 vessels, with an additional 43 vessels based in the North Sea and 13 vessels based in Southeast Asia. |
Rigdon - M/V First and Ten
A post with more detailed charts - http://investorsh ub.advfn.com/boards/read_msg.asp?message_id=23395041
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