The company’s vessels and associated vessel services provide support
of all phases of offshore exploration, field development and production. These
services include towing of, and anchor handling for, mobile offshore drilling
units; transporting supplies and personnel necessary to sustain drilling, workover
and production activities; offshore construction, remotely operated vehicle
(ROV) operations, and seismic and subsea support; and a variety of specialized
services such as pipe and cable laying. The company’s offshore support
vessel fleet includes vessels that are operated under joint ventures, as well
as vessels that have been stacked or withdrawn from service.
The company has one of the broadest geographic operating footprints in the
offshore energy industry with operations in most of the world’s significant
offshore crude oil and natural gas exploration and production offshore regions.
Our global operating footprint allows us to react quickly to changing local
market conditions and to respond to the changing requirements of the many customers
with which we believe we have strong relationships. The company is also one
of the most experienced international operators in the offshore energy industry
with over five decades of international experience.
Our revenues, net earnings and cash flows from operations are largely dependent
upon the activity level of our offshore support vessel fleet. As is the case
with other energy service companies, our business activity is largely dependent
on the level of crude oil and natural gas and exploration, field development
and production activity by our customers. Our customers’ business activity,
in turn, is dependent on crude oil and natural gas prices, which fluctuate depending
on expected future levels of supply and demand for crude oil and natural gas,
and on estimates of the cost to find, develop and produce reserves.
Offices and Facilities
The company’s worldwide headquarters and principal executive offices are
located at 601 Poydras Street, Suite 1500, New Orleans, Louisiana 70130, and
its telephone number is (504) 568-1010. The company’s U.S. marine operations
are based in Amelia, Louisiana; Oxnard, California; and Houston, Texas. We conduct
our international operations through facilities and offices located in over
30 countries. Our principal international offices and/or warehouse facilities,
most of which are leased, are located in Rio de Janeiro and Macae, Brazil; Ciudad
Del Carmen, Mexico; Port of Spain, Trinidad; Aberdeen, Scotland; Cairo, Egypt;
Luanda and Cabinda, Angola; Lagos and Onne Port, Nigeria; Douala, Cameroon;
Singapore; Perth, Australia; Shenzhen, China; Al Khobar, Kingdom of Saudi Arabia;
Dubai, United Arab Emirates, and Oslo and Tromso, Norway. The company’s
operations generally do not require highly specialized facilities, and suitable
facilities are generally available on a lease basis as required.
The company’s fleet is deployed in the major global offshore oil and
gas areas of the world. The principal areas of the company’s operations
include the U.S. GOM, the Arabian Gulf, the Mediterranean Sea and areas offshore
Australia, Brazil, India, Malaysia, Mexico, Norway, the United Kingdom, Thailand,
Trinidad, and West and East Africa.
The company’s vessels are dispersed throughout the major offshore crude
oil and natural gas exploration, field development and production areas of the
world. Although the company considers, among other things, mobilization costs
and the availability of suitable vessels in its fleet deployment decisions,
and cabotage rules in certain countries occasionally restrict the ability of
the company to move vessels between markets, the company’s diverse, mobile
asset base and the wide geographic distribution of its vessel assets generally
enable the company to respond relatively quickly to changing market conditions
and customer requirements.
Revenues in each of our segments are derived primarily from vessel time charter
or similar contracts that are generally three months to four years in duration
as determined by customer requirements, and, to a lesser extent, from vessel
time charter contracts on a “spot” basis, which is a short-term
(one day to three months) agreement to provide offshore marine services to a
customer for a specific short-term job. The base rate of hire for a term contract
is generally a fixed rate, though some charter arrangements allow the company
to recover specific additional costs.
In each of our business segments, and depending on vessel capabilities and
availability, our vessels operate in the shallow, intermediate and deepwater
offshore markets of the respective regions. In recent years, the deepwater offshore
market has been a growing sector in the offshore crude oil and natural gas markets
due to technological developments that have made deepwater exploration and development
feasible. It is the one sector that did not experience significant negative
effects from the 2008-2009 global economic recession, largely because deepwater
exploration and development projects involve significant capital investment
and multi-year development plans. Such projects are generally underwritten by
the participating exploration, development and production companies using relatively
conservative assumptions in regards to crude oil and natural gas prices and,
therefore, have not been as susceptible to short-term fluctuations in the price
of crude oil and natural gas.
Deepwater Vessels
Deepwater vessels, in the aggregate, are currently the company’s largest
contributor to consolidated vessel revenue and vessel operating margin. Included
in this vessel class are large (typically greater than 230-feet and/or with
greater than 2,800 tons in dead weight cargo carrying capacity) PSVs and large,
higher-horsepower (generally greater than 10,000 horsepower) AHTS vessels. These
vessels are generally chartered to customers for use in transporting supplies
and equipment from shore bases to deepwater and intermediate water depth offshore
drilling rigs and production platforms and for otherwise supporting intermediate
and deepwater drilling, production, construction and maintenance operations.
Deepwater PSVs generally have large cargo capacities, both below deck (liquid
mud tanks and dry bulk tanks) and above deck. Deepwater AHTS vessels are equipped
to tow drilling rigs and other marine equipment, as well as to set anchors for
the positioning and mooring of drilling rigs that generally are without dynamic
positioning capabilities. Many of our deepwater PSVs and AHTS vessels are outfitted
with dynamic positioning capabilities, which allow the vessel to maintain an
absolute or relative position when mooring to an offshore installation, rig
or another vessel is deemed unsafe, impractical or undesirable. Many of our
deepwater vessels also have oil recovery, firefighting, standby rescue and/or
other specialized equipment. Our customers demand a high level of safety and
technological advancements to meet the more stringent regulatory standards,
especially in the wake of the 2010 Deepwater Horizon incident.
Our deepwater class of vessel also includes specialty vessels that can support
offshore well stimulation, construction work, subsea services and/or serve as
remote accommodation facilities. These vessels are generally available for routine
supply and towing services, but these vessels are also outfitted, and primarily
intended, for specialty services. For example, these vessels can be equipped
with a variety of lifting and deployment systems, including large capacity cranes,
winches or reel systems. Included in the specialty vessel category is the company’s
one multi-purpose platform supply vessel (MPSV). Our MPSV is approximately 311
feet in length, has a 100-ton active heave compensating crane, a moonpool and
a helideck and is designed for subsea service and light construction support
activities. This vessel is significantly larger in size, more versatile, and
more specialized than the PSVs discussed above. The MPSV typically commands
a higher day rate because the vessel has more capabilities, and because the
vessel has a higher construction cost and higher operating costs.
Towing-Supply Vessels
This is currently the company’s largest fleet class by number of vessels.
Included in this class are non-deepwater towing-supply vessels with horsepower
below 10,000 BHP, and non-deepwater supply vessels that are generally less than
230 feet. The vessels in this class perform the same respective functions and
services as deepwater AHTS vessels and deepwater PSVs except non-deepwater towing-supply
vessels and non-deepwater supply vessels are generally chartered to customers
for use in intermediate and shallow waters.
Other Vessels
The company’s “Other” vessels include crew boats, utility
vessels and offshore tugs. Crew boats and utility vessels are chartered to customers
for use in transporting personnel and supplies from shore bases to offshore
drilling rigs, platforms and other installations. These vessels are also often
equipped for oil field security missions in markets where piracy, kidnapping
or other potential violence presents a concern. Offshore tugs are used to tow
floating drilling rigs and barges; to assist in the docking of tankers; and
to assist pipe laying, cable laying and construction barges.
Subsea Services
Historically, the company’s subsea services were composed primarily of
seismic and subsea vessel support. During fiscal 2014 the company expanded its
subsea services capabilities by hiring a dedicated group of employees with substantial
ROV and subsea expertise and by purchasing six work-class ROV.
Shipyard Operations
Quality Shipyards, L.L.C., a wholly-owned subsidiary of the company, operated
two shipyards in Houma, Louisiana, that constructed, upgraded and repaired vessels.
The shipyards performed repair work and new construction work for third-party
customers, as well as the construction, repair and modification of the company’s
own vessels.
3.97%