GulfMark settles PSV dispute with U.S. shipyard

March 16, 2016

GulfMark Offshore, a provider of offshore support vessels, on Tuesday announced that a settlement has been reached in the dispute resolution proceedings with a U.S. shipyard over two delayed platform supply vessels.

Back in 2012, GulfMark ordered two new 300-Class Green DP2 PSVs from BAE Systems shipyard in Mobile, Alabama.

These two vessels were originally scheduled for delivery in the fourth quarter of 2014, and the first quarter of 2015.

According to GulfMark, the settlement reached results in no additional payments required to that shipyard. The delivery of the first vessel is scheduled for the third quarter of 2016. The settlement also grants an option to purchase the second vessel for $26 million on June 30, 2017, with payment due at delivery if the option is exercised.

Quintin Kneen, President and CEO commented, “We are pleased with the results of the settlement and to have this uncertainty resolved. The option to make no further capital expenditures allows us to adjust our investment to match market conditions.”

Kneen added: “These 300 Class Jones Act qualified platform supply vessels are designed to work in any market, under any market conditions. They meet the higher cargo carrying capacities, fuel efficiency, increased berthing, safety, firefighting and environmental classifications preferred by our customers in the global marketplace. They will be the only U.S. flagged platform supply vessels that have Fire Fighting Vessel Class 2 (FFV2) with 3 water monitors and mobile foam generators; Safety Standby Service GR B – (300) with 2 Fast Rescue Craft, facilities and equipment to treat 300 survivors; Oil Recovery Capability Class 2; HAB (WB) for vibration, noise, climate control and lighting; Green Passport (GP); and Environmental Notation (ENVIRO) for MARPOL.”

GulfMark Offshore recently posted a net loss of $16.6 million and stacked half of its fleet.

The company has eight vessels currently stacked in the North Sea, seven in Southeast Asia, and 22 currently stacked in the Americas.

As of February 29, 2016, GulfMark’s total fleet consisted of 73 offshore vessels.