Crew Boat Market Report - Marcon International, Inc.

Marcon International, Inc.
P.O. Box 1170,9 NW Front Street, Suite 201
Coupeville, WA 98239 U.S.A.
Telephone (360) 678 8880
Fax (360) 678-8890
E Mail: [email protected]
http://www.marcon.com
Vessels and Barges for Sale or Charter Worldwide
December 2003
Crewboat Market Report
Gentlemen:
Marcon presently has the following crew boats, pilot boats and launches officially available for sale, both
domestically and abroad. Others though can be developed on a private and confidential basis.
Jan 1997
Jan 1998
Jun 1998
Oct 1998
Jan 1999
Jan 2000
Jun 2000
Sep 2000
Feb 2001
May 2001
Sep 2001
Dec 2001
Mar 2002l
Jun 2002
Sep 2002
Dec 2002
Mar 2003
Jun 2003
Sep 2003
Dec 2003
Dec 2003 - U.S.
Dec 2003 - Foreign
Avg. Age - Worldwide
Avg. Age - U.S.
Avg. Age - Foreign
Charter - Worldwide
Charter – U.S.
Charter - Foreign
Under
30’
7
5
1
0
2
2
7
8
9
9
8
6
6
5
7
7
5
5
5
4
1
3
1983
1974
1987
1
0
1
30- 40’
10
14
12
13
14
21
31
26
18
20
21
18
17
15
17
17
14
8
8
7
6
1
1974
1974
2
0
2
40’ –
50’
36
24
20
21
25
24
23
24
25
27
23
15
15
23
27
27
25
22
23
14
8
6
1981
1975
1986
5
2
3
50’ –
60’
9
5
8
5
6
6
7
9
7
6
8
6
6
9
9
9
10
7
7
9
1
8
1989
1957
1993
2
0
2
60’ –
70’
11
11
10
8
7
8
8
10
11
8
11
8
10
9
9
10
10
10
10
9
7
2
1965
1965
1964
4
2
2
70’ –
80’
6
5
4
4
4
10
10
9
9
9
9
3
3
2
3
3
3
3
3
6
2
4
1983
2000
1974
3
2
1
80’ –
90’
5
4
3
0
2
3
3
2
3
3
5
5
5
5
4
4
4
3
3
3
0
3
1997
1997
0
0
0
90’ –
100’
2
1
2
2
2
2
3
4
3
3
4
4
4
4
4
4
4
2
1
1
1
0
1973
1973
0
0
0
100’ –
110’
29
11
12
11
11
15
24
27
27
24
22
17
17
17
20
18
19
16
14
12
9
3
1981
1978
1993
2
0
2
110’ –
120’
8
3
6
8
8
10
12
8
14
15
12
12
9
15
17
18
21
21
16
16
11
5
1979
1979
1979
3
2
1
120’ –
130’
1
1
2
2
2
4
6
5
5
6
4
4
4
4
5
7
5
5
5
4
2
2
1980
1979
1982
0
0
0
Over
130’
0
0
0
0
0
1
3
3
3
3
2
2
1
2
2
3
4
4
4
3
1
2
1997
1998
1996
4
2
2
Total
125
84
80
74
83
105
134
132
134
133
129
99
97
110
124
127
124
106
99
88
49
39
26
10
16
The end of 2003 has shaped up to be another disappointing quarter for owners and operators of crew/utility
and supply boats in the U.S. Gulf. Demand for crew boats has been relatively flat with little appreciable
movement up or down since our last report. The lackluster quarter does not bode well for the start of 2004.
Even with fairly good supplies on hand and average to mild temperatures in most of the country so far Natural
Gas Prices have spiked suddenly for no apparent reason. Seems geopolitical forces are driving the market
place now rather traditional supply and demand factors. We are however sensing what appears to be a
general rise in activity level, across the board, and feel optimistic that 2004 will be slightly better than 2003, if
for no other reason than the last half of 2003 was much more active than the first half.
www.marcon.com
Details believed correct, not guaranteed. Offered subject to availability.
Marcon International, Inc.
Crew Boat Market Report – December 2003
Market Overview & Rates
Of the 6,312 vessels (excluding barges) Marcon tracks, 453 are crew & pilot boats with 88 officially on the
market for sale down from 127 vessels a year ago and 26 available for charter worldwide. Just over half, or 49
of the boats officially for sale are U.S. flag. Sixteen of the crew boats for sale worldwide were built within the
last 10 years and 33 boats are 25 years of age or older with seven listed having no year built given. The
oldest boat listed is still a 65’ pilot boat built in 1947 in the Netherlands.
There have been some fluctuations, but
very little change in average official asking
prices for crewboats since the September
2003 report. Average official asking
prices for boats in the 100 – 110’ range
did fall though 7.5%. Actual sale prices
for all vessels and barges sold by Marcon
to-date in 2003 have averaged 81.46% of
asking prices.
Crewboat Location
Far East
3%
South Pacific
3%
Canada
3%
Mediterranean
5%
Mid East
22%
Africa
8%
Of the crewboats, pilot boats and
launches listed for sale, not surprisingly
the most popular engine type is still GM
Southeast Asia
diesels powering 63 out of 88 boats
Europe
15%
where engine types are given, followed
22%
by CAT’s in seven vessels and two each
powered by MAN, MTU or Volvo’s.
Other engine types include Cummins,
Caribbean
Gardner, Lugger, Mirrlees, MWM’s,
19%
Perkins, Scania and SKL. 47 boats for
sale are located in the U.S. followed by 9 each in Europe and Middle East, eight in the Caribbean / So.
America region, six Southeast Asia, three in Africa and one each in the South Pacific, Far East and Canada.
Recent Marcon Sales
Marcon is pleased to report the sale of the U.S.
flag, 43’ x 14’ x 6.4’ aluminum hull crew boat
‘Dawn” from Ecomar Inc. to Riverview Equipment
Company LLC. The 1977 built Breaux’s Bay Craft
vessel had been converted to a dive boat in 1995.
The new Owners took delivery of their new boat in
San Francisco Bay and will be employed in
transporting crew members to various construction
sites. This is the second time Marcon sold this
vessel in the last two years and the second vessel
sold by Marcon to this Buyer in 2003. Marcon
acted as sole broker in the sale.
www.marcon.com
Details believed correct, not guaranteed. Offered subject to availability.
Marcon International, Inc.
Crew Boat Market Report – December 2003
Recent Corporate News
Tidewater Inc. announced second quarter net earnings for the period ended 30th September of $12.3
million on revenues of $164.2 million. For the same quarter last year, net earnings were $23.4 million on
revenues of $158.6 million. Net earnings in the immediately preceding quarter ended 30th June, were $18
million on revenues of $164.8 million. Prolonged weakness in the natural gas drilling market in the U.S.
Gulf continues to negatively impact domestic operations. Strong natural gas commodity prices and tight
inventory levels for the resource for the majority of 2003 have not resulted in increased gas drilling. The
reasons for the continuing low level of offshore drilling and exploration activity are not fully known.
Tidewater believes that general uncertain economic conditions and concerns about the stability of natural
gas prices are contributing factors. Natural gas commodity prices declined in recent weeks as concerns
over insufficient natural gas supplies abated because storage levels for the resource rose to near 5-year
averages. Despite this negative trend, many market analysts forecast that natural gas supply and demand
will be tight during the winter thus supporting higher commodity pricing later in the year and into calendar
year 2004, which are positive indicators for increased drilling activity. Vessel demand in the domestic
market is primarily driven by natural gas exploration and production and, at present time, it is unknown how
domestic-based vessel demand will be affected by current market conditions. International results of
operations for the second quarter of fiscal 2004 have been negatively impacted by reduced utilization of the
supply and towing supply vessels in certain international markets, particularly in Nigeria, Venezuela and
Brazil. Although international results have benefited from stable average day rates, the effect was
insufficient in alleviating the negative impact lower utilization had on international results. At present time,
crude oil commodity prices are at attractive levels and consumer demand for crude oil remains high, which
are optimistic gauges for steady international exploration and production. The following tables compare
day-based utilization percentages and average day rates by vessel class and in total for the quarters and
six-month period ended September 30 and for the quarter ended June 30, 2003:
Six Months Ended
September 30,
Quarter Ended
September 30,
2003
UTILIZATION:
Domestic Crew/utility
International Crew/utility
Worldwide Crew/utility
AVERAGE VESSEL DAY RATES:
Domestic Crew/utility
International Crew/utility
Worldwide Crew/utility
2002
2003
Quarter Ended
June 30,
2002
2003
76.2
69.9
71.9
66.7
82.2
76.6
73.8
73.9
73.9
66.7
81.8
76.3
71.5
78.1
75.9
2,879
3,135
3,048
2,665
2,843
2,787
2,853
3,038
2,977
2,699
2,879
2,822
2,827
2,945
2,907
The following table compares the average number of vessels by geographic distribution for the quarters and
six-month periods ended September 30 and for the quarter ended June 30, 2003: During fiscal 2003,
Tidewater sold and/or scrapped five crew/utility vessels.
Quarter Ended
September 30,
Domestic-based Crew/utility
International-based Crew/utility
Six Months Ended
September 30,
2003
2002
2003
29
61
31
56
29
60
2002
31
55
www.marcon.com
Details believed correct, not guaranteed. Offered subject to availability.
Quarter Ended
June 30,
2003
30
58
Marcon International, Inc.
Crew Boat Market Report – December 2003
Trico Marine Services, Inc. in November reported a net loss for the quarter ended September 30, 2003 of
$9.5 million on revenues of $31.6 million, compared to a net loss of $35.0 million on revenues of $34.0 million
for the third quarter of 2002. Average day rates and utilization for Trico’s 17 crew boats and line handling
vessels for the third quarter of 2003 increased to $2,769 and 79%, respectively, as compared to average day
rates and utilization of $2,649 and 60%, respectively for 16 vessels during the comparable 2002 period.
Based on a nine month period ending 30th September, average day rates for crew boats and line handling
vessels increased 6.0% to $2,835 compared to $2,674 for comparable 2002 period. Utilization was 71%
(average 17.6 boats) for the 2003 period compared to 65% (average 17.4 boats) in 2002.
Seabulk International reported in November a loss of nearly 94 percent on a slight revenue decline In
part because the charges it had to pay were smaller,. Shares closed down 6.73 percent. The company
said it lost $1.9 million, or 8 cents a share, on revenue of $79.7 million for the third quarter. For the same
period last year, Seabulk said it lost $30.6 million, or $2.37 a share, on revenue of $80.4 million. Included
in the most recent loss are charges of about $1.7 million, or 7 cents a share, the company said is related
to early extinguishment of $11 million in debt in connection with the company's $150 million note offering
in August. For the third quarter the year before, Seabulk said its loss included charges of $27.8 million,
or $2.16 a share, related to early debt extinguishment related to the company's September 2002
recapitalization. Discounting the charges for both periods, the company would have reported a $200,000
loss, or a penny a share, in the most recent period, and a loss of $2.8 million, or 21 cents, in the yearago quarter. Revenue from Seabulk Offshore, the company's largest business with a fleet of 120 offshore
energy support vessels, was $42 million, or 53 percent, of total company revenue in the most recent
quarter. In the same period last year, the segment reported revenue of $43 million Revenue from
Seabulk Tankers, the company's fleet of 10 product carriers, was $28 million, or 35 percent, of total
company revenue, down from $30.4 million in the year-earlier period. "The revenue decline resulted from
downtime associated with unscheduled engine repairs to the Seabulk Challenge and regularly scheduled
drydockings for the Seabulk Power and Seabulk Arctic," the company said, adding it has two more dry
dockings scheduled for the fourth quarter. Seabulk Towing, which operates a fleet of 26 tugs in seven
southeastern ports and the offshore Gulf of Mexico, reported revenue of $9.8 million in the quarter, or 12
percent of total company revenue, up $7 million in the year-earlier period. "The revenue gain was driven
by a number of factors, including higher traffic in certain of the company's ports and improved utilization
of the tug fleet," Seabulk said. Shares closed down 55 cents to $7.62. The 52-week high was $10.28 on
May 29. The 52-week low was $4.38 on Nov. 25.
Recent New Construction
C&G Boat Works of Mobile, AL and Tidewater would have to receive a top crew boat award this year, if
one was given, for designing and building a totally new aluminum Fast Crew/Supply class vessel.
Further blurring the distinction between crew and supply boat they are reportedly the first aluminum
vessel built to carry liquid mud (1,000 tons) in four tanks below deck as well carrying a crew change of
up to 36 people and providing a service speed of excess 20 knots loaded. The ‘Vickie Tide’ delivered in
February was followed this year by the ‘Bonnette Tide’ in April, ‘Lourdes Tide’ in June and ‘Ursula Tide’
in August. The boat is no longer classified as a Subchapter T passenger vessel, but as a Subchapter L
and does not meet the under-100 GRT required by Subchapter T. They are however under 200 GRT
and less than 500 tons, so that according to the International tonnage Convention, they do not need to
comply with SOLAS requirements. “I believe these new boats will set the standard for how fast supply
vessels in the oil service industry are designed and utilized, said Steve Dick, Exec VP of Ops for the
North Sea, West Africa, and North America. “This vessel has the speed, the capacity and the versatility
to be used on a variety of projects. We believe our customers are going to be very pleased with how
these new vessels perform”.
www.marcon.com
Details believed correct, not guaranteed. Offered subject to availability.
Marcon International, Inc.
Crew Boat Market Report – December 2003
Following are Current Commercial Shipbuilding Contracts according to MarineLog and Tim Colton:
Type
Name or Hull #
Customer
GT
Size
$mm
Delivery
175 ft.
3
Oct-04
Conrad Industries (Morgan City LA)
Crew Boat
Firm
Diamond Services
Gulf Craft (Patterson LA)
Crew Boat
175 ft.
452
Nov-03
Conrad Industries, Inc. announced on November 10th, that its subsidiary, Conrad Aluminum had been
awarded a $2.8 million contract to build a 175’ aluminum crew/supply vessel for Diamond Services
Corp. of Amelia, Louisiana. Construction will begin in the Conrad’s new facility in Amelia with delivery
scheduled for October 2004. When delivered, the vessel will immediately service the oilfield in the Gulf
of Mexico. Kenneth G. "Jerry" Myers, Jr., Conrad's President and CEO, commented, "We have received
a number of indications of interest for projects for our new aluminum facility and are extremely excited to
announce our very first contract award for aluminum vessel construction. This award demonstrates
Diamond's confidence in our expanded capabilities." The vessel will have a 32’ beam and hull depth of
14’ 6”. Diamond Services is providing the major machinery including main engines, generators, water
jets, dynamic positioning systems and electronics. The vessel will be powered by four Cummins KTA38M2 diesels driving four Hamilton HM-721 water jets. Wallace Carline, President of Diamond Services,
stated, "We are pleased to award this contract to Conrad. Conrad has always been recognized as a
quality shipbuilder and we are confident in their abilities as they expand into the aluminum market. Their
new site is impressive and we look forward to a continued successful relationship for both vessel
construction and repair." Conrad Industries established in 1948 and headquartered in Morgan City,
designs, builds and overhauls tugboats, ferries, liftboats, barges, offshore supply vessels and other steel
and aluminum products for both commercial and government markets. The company provides repair
and new construction services at its four shipyards located in southern Louisiana and Texas.
Neuville Boat Works of New Iberia, Louisiana was busy readying and painting their latest boat in mid
October, the ‘Colin B. McCall’ for her November delivery. In the next bay to the “Colin B.”, a second hull
was plated while in the third bay and a newly framed hull was having the first aluminum plates welded in
place prior to the hull turning. Word around the Louisiana bayous is that building activity has slowed but
the Neuville brothers, Errol and Kerry, seem confident that their yard will have steady work. “Colin B.
McCall”, named for noted Cummins engineer Colin Black, is 160’ x 30’ with an aft deck that is 91.5’ by
24.75’ that can carry 280 long tons with about 7,000 gallons of fuel on board. Seating is provided for a
total of 68 passengers with 52 of those in business class seats. Main propulsion is provided by four
Cummins KTA38 M2 engines delivering 1350 HP each in a Heavy Duty rating at 1900 RPM for a total of
5400 HP. A Thrustmaster 75 HP electric hydraulic bow thruster is installed in a 24” tunnel. Electrical
service is provided by two Cummins-powered 99 kW generator sets. The vessel’s U.S gross registered
tonnage is under 100 tons while the International Gross tonnage is under 400 tons. It is built to U.S.
Coast Guard Subchapter T/L and has an ABS load line. Tankage includes 20,986g fuel, 37,674g rig
water and 1,232g fresh water. Sleeping accommodation is provided for eight with two in single bunk and
six in double bunk rooms. A second hull to these same dimensions was plated and work was
progressing. The third hull, that had been framed only, is slightly larger at 167’. It will receive the same
Cummins KTA 38 M2 engine package but will be propelled by jets rather than the propellers used on the
first two. Neuville delivered the 170’ x 34’ crew boat “Randall B. McCall” earlier this year. The “Randall”
is powered by four Cummins KTA50 main engines each delivering 1800 HP at 1900 RPM for a total of
7200 HP. The propeller driven boat is DP equipped. and features variable ratio Twin Disc MG-6848
gears to accommodate the high horsepower engines.
www.marcon.com
Details believed correct, not guaranteed. Offered subject to availability.
Marcon International, Inc.
Crew Boat Market Report – December 2003
Featured Listings
CB12202 Crew Boat 122.08' x 24.63' x 9.71' depth x abt.
8.5’ loaded draft aft. Built 1981 at Swiftships, Inc.; Morgan
City and rebuilt / repowered by Allied Shipbuilders, Ltd. of
Vancouver, BC in 1993. All aluminum. Canadian Flag.
GRT: 210 NRT: 58 ABS +A1 (E) AMS. (Allowed to lapse
3/2002). Canadian Coast Guard / CSI. 40 tons cargo on
49.9'x17.9' clear deck aft. 1 x 1200# Wajax crane Ship’s
fuel: 6000g. 2 x CAT3512 total 2890 BHP at 1800rpm. ZF
reduction gears. 4-blade fixed pitch props. Speed abt. 23kn.
Vessel originally built as triple screw configuration powered by MTU 12V396 TB83’s delivering 4,230 bhp
with a max speed of 32 knots. In 1993, the MTU main engines required a major re-built, so owners
elected to re-power with U.S. manufactured engines. Design provided by Peter S. Hatfield Ltd. naval
architects, which converted vessel to twin screw with CAT 3512 DITA engines delivering 2,890 bhp with
a max speed of 23kn. Repower reportedly delivered better fuel economy, smoother operation, less
smoke and less lube oil consumption. 2-50kW/GM4-71 generators. Fire Monitor. Full navaids including
2 radars, Autopilot, 2 VHF’s, 2 SSB’s, 2-station hydraulic steering, etc. Quarters for 4 crew and 61
passengers. Medivac capabilities. Vessel interior reconfigured when purchased in 1989 to reduce
passenger capacity from 91 to 61 thereby increasing passenger comfort and cargo capacity. Inspection /
delivery "as is, where is" West Coast Canada. Please call Marcon for further details, price guidance
and to arrange inspection. Photographs available on the internet at www.marcon.com . Type in the file
number CB12202 in the block provided in the left hand navigation bar.
CB10529 Crew Boat - Newbuilding Hulls 105' x 23' x 10.5'
x 5.6' depth of hull. Built this year (2003/4) in Austrailia bur
Panamainian flagged and ABS Classed. The Vessels have
capacity to carry 80 passengers and a crew of six plus 25 tons
of deck cargo; 9,510 gallons of fuel and 2,640 gallons of water.
Vessel is powered by 2 Cat 3512B diesel engines delivering
3,500 BHPO and driving two 5 – blade custom propellers
providing 27- 30 knots maximum lightship speed.
Accommedations include two double berths and one single
berth with galley, walk-in fridge and freezer, head, shower, laundry and dry storagage. Additional features
include fire monitor with foam, aft steering station, sewage treatment plant, oily water seperator and chemical
discharge system. Three vessels are being built in Australia with the first delivery anticipated for March of
2004.
A complete list of crewboats available for sale, charter & newbuilding designs are available on our website.
We are interested in receiving information on any vessels surplus to your requirements that may be available
for sale or charter on either a published or private and confidential basis. We are also interested in receiving
your press releases, news and comments about the industry on a regular basis for our market reports.
All of us here at Marcon wish you the very best for the holiday season and a most prosperous New Year.
www.marcon.com
Details believed correct, not guaranteed. Offered subject to availability.