Trico Marine Services, Inc. today announced that it has amended the company's $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. 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.
In addition to the impairment charges above, Trico expects its fourth quarter earnings to be negatively impacted by:
|a.||one construction vessel undergoing a combined regulatory dry docking and upgrade in vessel capability for 75 days prior to a one year contract in Mexico which has commenced;|
|b.||continued softness in the North Sea for all offshore activity;|
|c.||termination of a time charter of a consistently under-utilized vessel within its fleet; and|
|d.||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.|