GulfMark settles dispute over newbuild Jones Act PSVs

MARCH 15, 2016 — GulfMark Offshore, Inc. (NYSE:GLF) today announced that a settlement has been reached in dispute resolution proceedings with a U.S. shipyard [BAE Systems, Mobile, AL] over two PSV ordered in 2012.

GulfMark Offshore says that the settlement reached results in no additional payments to the shipbuilder being required. 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.

"We are pleased with the results of the settlement and to have this uncertainty resolved," commented GulfMark Offshore President and CEO Quintin Kneen. "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.

"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 three water monitors and mobile foam generators; Safety Standby Service GR B – (300) with two 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.

"We will continue to be innovative and forward-looking in the vessels we design and in our cost and liability management as we proactively manage the company through the current environment."

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