August 3, 2004

Hornbeck orders tank barge

Hornbeck Offshore Services, Inc. (NYSE: HOS) announced yesterday that its wholly-owned subsidiary, Hornbeck Offshore Transportation, LLC has exercised the second of its three fixed-price shipyard options for the construction of one additional 110,000-barrel double-hulled tank barge.

The vessel, which will be constructed by Manitowoc Marine Group, is expected to be delivered during the second half of 2005. This will be the fifth vessel -- the third by Manitowoc -- to be constructed under the Company's current tank barge newbuild program, which is based on a proprietary new design developed in-house by Hornbeck.

President & CEO Todd Hornbeck commented, "With the first four of our proprietary double-hulled tank barges that are currently under construction already committed to customers, and in light of our current backlog of customer demand for new double-hulled tonnage, we have decided to exercise the option for a fifth barge at this time. We are also continuing to evaluate customer demand for our one remaining fixed-price shipyard option with Manitowoc for the construction of a potential sixth double-hulled tank barge in our current newbuild program."

Hornbeck Offshore Transportation currently operates a fleet of 12 ocean- going tugs and 16 ocean-going tank barges, one of which is double-hulled. Three of its existing single-hulled tank barges are scheduled to be retired under OPA 90 by January 1, 2005.

With yesterday's announcement, the company now has a total of five double-hulled tank barges under construction--three 110,000-barrel barges at Manitowoc and two 135,000-barrel barges at Leevac Industries, LLC.

Hornbeck also recently purchased two additional ocean-going tugs that are currently being converted for service in its U.S. transportation fleet.


Tell a friend: