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Gold/Mining/Energy : Trico Marine Services (TMAR) -- Ignore unavailable to you. Want to Upgrade?

To: Grommit who wrote (623)	7/31/1998 9:11:00 AM
From: D.J.Smyth	Respond to of 1153

Grommit, HMAR is a much smaller player than TRICO in the gulf with limited supply boat exposure in the gulf (compared to TDW or TMAR). HMAR's boats in the gulf serve nearly exclusively the shallow water rigs which can be more volatile. TMAR serves both the shallow and deep water rigs as it has the appropriate vessels to do so, HMAR also has relative no exposure to the north sea. HMAR's exposure is based equally between Africa, Asia and the Persian Gulf. All three of these areas have lower dayrates. TMAR made $.32 per quarter when dayrates were $5500 in the gulf and they had 1/4 the ships. The gulf continues to command the higher day rates. TMAR is a better managed firm than HMAR in my view and has been for the past two years at least. Also HMAR's utiization ratio was down due to their own choosing to drydock/upgrade vessels at this time. HMAR has a few newer rigs that can't run profitably below $7000 a day in the gulf - so these get shelved. HMAR's earnings would expect to be lower, not TMAR. It just doesn't shake. Each company is different as are their markets. They are not all the same.