Tebma subsea services vessels and Trico Marine

Trico Marine Services, Inc. (Nasdaq:TRMA) has suspended delivery of the last four in a very series of eight subsea services vessels from India's Tebma Shipyards.

Suspension of the newbuild contracts was one among a series of moves announced yesterday by Trico, that has previously disclosed its intent to target improving its balance sheet, reducing outstanding debt and strengthening close to term liquidity.

In addition to renegotiating its contract with Tebma, Trico has inked agreements for the sale of 2 North ocean category vessels for an mixture sales worth of roughly $40 million. the primary sale is currently scheduled to shut in early October. The second sale is ready to shut in late October, subject to delivery and inspection in Hong Kong. Trico can utilize the proceeds to repay European bank debt outstanding. each vessels are sold to patrons in Asia.

The company conjointly announced that it had reached an agreement concerning the delivery of seven remaining subsea services vessels from what it identifies solely as "the shipyard in India."

The ships in question are a series of eight VS470 MPSV's on order at Tebma Shipyards, the primary of that, Trico Sabre, was delivered from Tebma's Malpe shipyard on could twenty.

Trico Marine say the primary 3 of the remaining vessels are delivered as currently scheduled between December 2009 and July 2010. the development contracts for these 3 vessels are amended to cut back the acquisition worth. Approximately $40 million of extra capital expenditures are incurred between October 2009 and July 2010 to complete these 3 vessels.

Delivery of the last four subsea service vessels has been suspended and Trico Marine says it "preserves the proper to cancel its obligation to require delivery of such vessels" which "preserving the choice to construct the remaining four vessels permits the corporate flexibility in developing its strategic growth plans for subsea services to regulate for market conditions and liquidity desires at a future date. The impact of the indefinite suspension of delivery is to cut back previous committed capital expenditures for 2010 and 2011 by approximately $80 million."

Trico says the vessel sales, that are within the North ocean spot vessel market, cut back debt, improve liquidity and are per its strategy to cut back each its spot OSV exposure and its dependence on the provision vessel market. The amendments to the subsea service newbuild contracts guarantee capability for subsea services growth with the delivery of 3 subsea services vessels and conjointly cut back 2010 and 2011 committed capital expenditures.

The company -- that earlier this year was embroiled in a very bitter proxy battle with major shareholder Kistefos -- conjointly announced what it referred to as "steps its Board of administrators has taken in its continuing effort to own the Company's governance provisions mirror best practices, together with some revisions to governance provisions dating back to 2005. The Board can look for stockholder approval to declassify the Board, with stockholders voting on declassification at the 2010 annual meeting."

Trico conjointly announced variety of changes to its bylaws and company governance tips.

Tebma subsea services vessels and Trico Marine 2012-05-15T18:13:00-07:00 Rating: 4.5 By: Admin