December 30, 2009
Trico Marine to take impairment charge
Trico Marine Services, Inc. (Nasdaq:TRMA ) yesterday announced that it has amended its $50 million U.S. credit agreement to, among other things, exclude the effect of impairment charges related to the cancellation of shipbuilding contracts for four multipurpose vessels being constructed in India.
Back in September, Trico said it had suspended delivery of the ships, which are the last four in a series of eight subsea services vessels from India's Tebma Shipyards.a
The company expects to take an impairment charge during the fourth quarter in the range of $110 to $130 million principally for the shipbuilding cancellation.
Trico also expects its fourth quarter earnings to be negatively impacted by:
the 75 day drydocking and upgrade of a construction vessel prior to a one year contract in Mexico
continued softness in the North Sea for all offshore activity
termination of a time charter of a consistently under-utilized vessel within its fleet; and
the decision to keep vessels in certain emerging subsea markets for existing contracts commencing in 2010 rather than mobilize them for spot contracts, which resulted in low utilization during the fourth quarter.