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Gold/Mining/Energy : Trico Marine Services (TMAR)
TMAR 22.47+0.3%Nov 5 2:59 PM EST
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To: D.J.Smyth who wrote (869)10/7/1998 10:02:00 AM
From: Stephen L. Smith  Read Replies (4) of 1153
 
Article posted on Yahoo thread today:

It takes approximately 1.75 vessels to service each rig. So with a rig count down another 20, approximately 35 supply vessels "hit the dock."

An interesting article in the October issue of "Work Boat" regarding supply vessels. Utilization on 180' vessels is down 40 percent from the beginning of the year. Additionally, from earlier this year into 1999, another 80 new builds are entering service. this shall drive down utilization and day rates. Some will argue that the new builds are to service deep water exploration, however, there are not enough deep water rigs under construction to absorb the number of new builds.

Someone recently posted a message commenting that many of TMAR's (and others) vessels were under contracts. The shortest term contracts in the world are those in the Gulf of Mexico. In 1980, I had 15 vessels under 1 year charter to various major and independent oil companies, and lost each one in a period of 3 weeks.

I don't mean to be a purveyor of doom, but, this picture gets worse before it gets better.

By the way, the cover story of the aforementioned issue of Workboat is entitled GLUT, Barge Overcapacity on the Inland Waterways. The article illustrates how the extended service life's of barges is contributing to overcapacity. A similar argument could be made regarding OSV's.
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