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CARBON TAX ON BUNKER FUEL
IMO is looking at a global levy (tax) on marine fuels. Do you think this is

a really good idea
an unfortunate necessity
a bad idea
a really bad idea

Marine Log

June 6, 2008

Hornbeck Offshore may sell tug and tank barge business

Hornbeck Offshore Services, Inc. (NYSE: HOS) may sell off its tug and tank barge (TTB) business.

It has retained J.P. Morgan Securities Inc. to act as its financial advisor in a thorough review of strategic alternatives for the TTB activities.

Possible alternatives, according to Hornbeck Offshore, include: (i) potential further growth by acquisitions, mergers or consolidations; (ii) potential "disposition or monetization of" [in other words sale] all or a portion of the company's ownership interests in the TTB business; (iii) other potential restructuring transactions involving the use of a master limited partnership ("MLP") structure; or (iv) maintaining the status quo.

Chairman, President and CEO Todd M. Hornbeck said: "Given the substantial pending growth in our upstream fleet over the next 24 months as a result of previously announced growth initiatives, and absent any further growth in our TTB fleet, we currently expect our overall business mix to shift from roughly 80-20 today to roughly 90-10 between our OSV and TTB segments, based on relative percentages of current and pro forma operating cash flow, respectively. While our TTB business has always been and continues to be a stable source of diversified cash flow for our company, we have hired J.P. Morgan to help us explore our options with regard to this segment and to see if we can unlock additional value for our shareholders. It is important to note that no decision has been made yet. We simply want to run a disciplined process that would allow us to make the best possible decision for the company. We expect to announce additional details regarding our plans for the TTB business later this year."


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