July 23, 2004
Hornbeck orders tank barge
Hornbeck Offshore Services, Inc. announced today that its wholly-owned subsidiary, Hornbeck Offshore Transportation, LLC has signed a definitive agreement with LEEVAC Industries, LLC for the construction of an additional 135,000-barrel double-hulled tank barge.
The vessel, expected to be delivered during the fourth quarter of 2005, has already been committed to a long-term time charter. Hornbeck has also committed one of its 110,000-barrel double-hulled tank barges, currently under construction at a different yard, to a long-term time charter.
Hormbeck says it is currently finalizing documentation for these two charters, which are expected to commence during the fourth quarter of 2005.
President and CEO Todd Hornbeck commented, "All four of the double-hulled tank barges that we now have under construction are expected to commence service under long-term contracts following their delivery from the shipyards. In light of our current backlog of customer demand for new double-hulled tonnage for additional long-term contract opportunities, we are evaluating our remaining two fixed-price shipyard options for the construction of two additional double-hulled tank barges."
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 today's announcement, the company now has a total of four double-hulled tank barges under construction--two 135,000-barrel units and two 110,000-barrel units. Hornbeck also recently completed its acquisition of two 6,000 horsepower ocean- going tugs that were built in 1983. Following conversion for service in the Hornbeck's U.S. transportation fleet, the newly acquired tugs are expected to be placed into service during the fourth quarter of 2004.
All of the tank barges in the current newbuild program are based on proprietary designs developed in-house by Hornbeck engineers. By the end of calendar 2005, Hornbeck's tug and tank barge segment is currently expected to consist of 14 ocean-going tugs and 17 ocean-going tank barges, five of which will be double-hulled. This fleet count reflects the two newly acquired tugs and the four double-hulled tank barges currently under construction, net of the retirement of three single-hulled tank barges.