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To: jbe who wrote (17703)	4/2/1998 2:28:00 PM
From: Chuzzlewit	Respond to of 95453

jbe, I think what LT was refereing to as "fundis" are not so much the numbers you generated (which are all backward looking), as the industry outlook which is forward looking. There is a general perception on this thread that there may be overbuilding in the supply boat business, and as a result, day rates are like to either be stagnant or even fall. By contrast, the deepwater drillers are seeing continued upward movement in dayrates. Boats can be built much faster than even shallow water rigs, not to mention deepwater. Regards, Paul

To: jbe who wrote (17703)	4/2/1998 2:30:00 PM
From: Lucretius	Read Replies (3) \| Respond to of 95453

I'm not talking about any of that stuff, financial health is good but further improvement and keeping of that health relies on economic funidmentals of the business. These industries are cyclical. the cycle for the boats is MUCH shorter than the drillers cause of the ease in building new boats. Boats depend on more rigs being in service every yr so they can service those rigs. As I see it, Rig building is not keeping up w/ againg fleet retirements, thus dayrates continue to rise but the # of rigs at work declines. at some point this will reverse, but I believe there will be plenty of boats to service them. There's not a total lack of upside in the boat co's just mujch better opportunities elsewhere. IMHO of course! -Lucretius