Page 46: of Maritime Logistics Professional Magazine (Q4 2016)

45 47

OFFSHORE LOGISTICS “We’re long-term thinkers and fortunately we don’t live for today and we don’t live to sell stock. Last quarter, our

EBITDA was more than Seacor, Tidewater, GulfMark, and

Hornbeck put together. Our returns were over 60%. That’s purely from being in the business all my life, understand- ing my clients’ needs, getting down in the weeds with my crew members and my staff, and working with them to understand what’s coming next, how we all survive to- gether, in your personal lives and in the business.” – Shane Guidry,

CEO Harvey Gulf International Marine safety, a ? eet of modern redundant DP-2 tonnage, and a com- operational advantages of operating a boat between Point A and mitment to LNG power – both for the economy and the long Point B with only one generator. “Where my ‘Shark Class’ boat term environmental bene? ts that it brings. We asked Guidry if runs just diesel, I have to run two and three engines. On the LNG the ‘two tier’ market that he envisioned is working out. He in- vessel, I’m running one big, low RPM-turning Wartsila engine sists that it is. “Where you survive is lining yourself with big oil on LNG, and I’m just crushing it for them. A huge difference.” companies. Big oil companies are not going to sacri? ce safety. Turning to his now established bunkering operation, Guidry

If they can get with an operator that has operational excellence, admits he has no other customers, but says, “It’s a long-term like we do, at 99.9 percent utilization on contract, annually, they investment; a necessity for the space to grow.” With the Har- know they can run their business with fewer boats because they vey Gulf 300-foot class vessel – LNG verses non-LNG – about know we are reliable. They are still not going to sacri? ce safety 25% less fuel is burned. Guidry adds quickly, “That’s nothing for rate. So, if they can get a DP-1 boat for $2,000 less per day, to do with the dollar difference. Just fuel burned, period. And, they simply won’t take that risk. We haven’t seen that.” that’s one more place that the client saves money. What’s more attractive about it is when you have emission monitoring that

LNG: pure & simple you have to do at certain, permanent sites offshore, that’s where

Guidry clings to his plans for LNG; both in terms of his Four- these boats come in and emit low emissions and so it helps with chon-based bunkering operation and LNG/dual fuel tonnage has the problem at the platform.” Looking ahead, Guidry believes yet to be delivered. Separately, in stark contrast, representatives that as that continues to tighten up in the future, it will make it from Island Offshore, Remoy Shipping and Bourbon Offshore more advantageous to have LNG boats, explaining, “The last

Norway recently offered a different perspective. “It’s a bloody thing you want to do is have a boat that you don’t need for four disaster,” says Island managing director, Haavard Ulstein. “The hours, so you tell it to go outside the zone and stand by. We still amount of environmental effect these (LNG) vessels offer and have to account for the emissions, whereas right now you have also the amount of pluses saved by the clients and that con- to tell them, ‘Go out to the 25-mile zone.’ Well, that takes a lot verted into day rates for the owners is a disaster, and personally of time to go out to 25 and come back in. Then you have to go

I have asked (Rolls-Royce business) Bergen Engines (AS) for two and a half hours away at 10 knots.” technical proposals to convert those LNG engines into diesel. Today, Harvey Gulf has three working LNG vessels, one de-

LNG is a big, big … a huge disappointment,” Ulstein added. livering in March, another in April, and the last will deliver next

Guidry couldn’t disagree more. “We still see that the ma- summer of ’18 if Guidry decides to do it. With two ? ve-year jors here in America want LNG. Just this year we’ve signed charters with oil major Shell (signed in March 2016) for the ? rst two ? ve-year charters for two of our LNG boats still under two vessels, there’s a good chance the third hull will become a construction. In this market, the rates make a ton of sense. reality. Separately, Harvey Gulf recently received full class ap-

So, yes, I still think LNG is the future and I still believe that proval for an LNG bunker ATB concept. Guidry claims to be ne- you’re going to pay more for it and you’re not going to get the gotiating with a potential client now for “a long term charter.” If incremental increase in rate that you’d like to get because of so, construction could begin as early as the ? rst quarter of 2017.

the investment. But I’d rather have ten LNG boats working, Dr. Loren Scott insists that the LNG price is down and it is than 10 diesel boats at the dock with no work.” going to stay there. U.S. Natural Gas is today cheaper than EU

The difference in price between LNG and diesel has shrunk, and Far East sources, and as the price of crude oil recovers, but LNG still remains the cheaper option. Guidry points to the that price differential (and related ? nancial & environmental 46 Maritime Logistics Professional 4Q 2016I I 34-49 Q4 MP2016.indd 46 11/9/2016 12:26:48 PM