Trico Lands $35MM in New Subsea Contract Awards
Trico Marine Services announced new contract awards representing $50 million in value, approximately $35 million of which are new subsea contract awards for projects in Norway, Mexico, and the United States.
In the Company's Towing and Supply division, contract awards include securing term work in Brazil for an anchor handler, reducing Trico's North Sea spot market exposure. Contracts awarded for the Company's Subsea Services and Subsea Protection divisions (primarily DeepOcean and CTC Marine) include the following types of services:
- Decommissioning project in the North Sea involving surveys and drill cutting repositioning using DeepOcean's ROVs;
- One year additional IMR work through September 2010 for one of the main contractors for PEMEX in Mexico;
- Providing ROV support for the end customer StatoilHydro in the North Sea; and
- Performing cable lay and trenching for a customer in the United States.
Mr. Compofelice, Chairman and Chief Executive Officer of Trico, commented, "These contract awards show the strength of our subsea services and subsea protection businesses worldwide. Subsea volume growth and pricing remain steady. We continue to win contract awards directly or indirectly for national oil companies in the international arena. For the rest of 2009, we expect good utilization and margins in our subsea services segments."
"In addition," he added, "we believe our advanced subsea capabilities will continue to differentiate us from our competitors on a global basis. Together with another service provider, we recently performed the deepest hot-tap into a live pipeline on the Ormen Lange field in Norway. The hot-tap was done with an ROV and a special remotely operated hot-tap tool and was completed under one of our IMR frame contracts with StatoilHydro. We expect to secure similar projects built around advanced subsea technologies in the future."
The Company anticipates third quarter 2009 revenues, earnings and utilization for the Subsea divisions to be consistent with those of the second quarter of 2009. The Towing and Supply division revenues, earnings and utilization are expected to be below the second quarter results (principally in West Africa), but are expected to improve in the fourth quarter. The Company anticipates revenues for the third quarter to be in excess of $170 million with adjusted EBITDA to be in the range of $24 million to $29 million.