Page 58: of Marine News Magazine (November 2017)

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GULF COAST OUTLOOK “There are more vessels that aren’t being utilized than there are in service. But the limited activity that is occur- ring in the U.S. GoM is being serviced out of Port Four- chon. The discount on our basic land rental is 20 percent, and that’s been in effect since April 2015. We’re budgeting for it to continue through all of 2018.” – Chett Chiasson, Port Fourchon’s executive director fell to $9,619 in that quarter from $10,133 in the year's ? rst two new-builds. Hornbeck's NASDAQ-traded stock has quarter. Among the company's 42 owned and leased vessels improved since June's credit announcement.

in the United States, 32 were cold-stacked on June 30. That Meanwhile, after two decades of new builds and an ex- total included ten anchor-handling towing supply vessels, panded presence at Port Fourchon, Edison Chouest Off- 16 fast support vessels, ? ve lift boats and one specialty vessel. shore in 2015 laid off yard workers at LAShip in Houma.

Chouest’s world ? eet exceeds 200 offshore service and sup-

HORNBECK LINES UP NEW CREDITS; port vessels chartered to customers. Early last year, Chouest

CHOUEST BUILDS FOR ALASKA said it would also build boats at a new site, TopShip, LLC,

In February, Moody's downgraded its credit rating for in Gulfport, Miss.

Hornbeck Offshore Services, Inc. in Covington, La. At the In August of last year, Alyeska Pipeline Service Co., op- time, Moody's expected that low OSV usage and weak day erator of the trans-Alaska pipeline and the Valdez Marine rates would extend through mid-2018 at least. Hornbeck Terminal, said Chouest had been chosen to provide its sup- owns 70 vessels, mainly serving the energy industry, and has port services, starting in July 2018. For the Alaskan con- two boats under construction for 2018 delivery. The compa- tract, Chouest is building tugs to escort oil tankers, along ny had 41 OSV’s stacked in early August when it announced with general purpose tugs, at its Louisiana and Mississippi second-quarter earnings, and it predicted that 45 OSV’s yards, and it is producing oil-spill response barges in Or- would be idle when 2017's third quarter ends. Hornbeck last egon. Construction on the tugs began last year. Chouest month didn't respond to inquiries about its GoM situation. didn't respond to inquiries last month about those builds.

Twenty years ago, Hornbeck began building advanced, In other good news, Chouest in April extended its busi- new-generation OSV’s, using in-house designs. In late ness alliance with BP, a deepwater GoM player, for 30 2011, the company announced plans to build sixteen months. That accord includes delivery of a new-generation

U.S.-? agged 300 class DP-2 new generation OSV’s. That PSV, under construction at LaShip this year, to take sup- number was expanded to 24 OSV’s. Hornbeck expected plies to BP’s Gulf platforms. them to serve increased deepwater and ultra-deep drilling in its core areas – the GoM, Brazil and Mexico. Two re- PORT FOURCHON SIGNS NEW TENANTS maining boats in this 24-vessel build plan should be ready Vessel utilization is still down considerably in the U.S. Gulf, in next year's second half. Chett Chiasson, Port Fourchon's executive director, said last

In a development that expands its liquidity, Hornbeck month. “There are more vessels that aren't being utilized than on June 15 said it would use $300 million from a new there are in service,” he said. “But the limited activity that credit facility to re? nance an existing $200 million in cred- is occurring in the U.S. GoM is being serviced out of Port its. Hornbeck can use funds drawn under its new facility Fourchon.” The port has given leaseholders a break. “The dis- for working capital and general corporate purposes. The count on our basic land rental is 20 percent, and that's been new credits are collateralized in part by the company's in effect since April 2015,” he said. “We're budgeting for it to high-spec OSV’s and MPSV’s and a security interest in the continue through all of 2018.”

November 2017

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