Vessel Acquisitions and Dispositions

3 Months Ended

Mar. 31, 2012

Vessel Acquisitions and Dispositions [Abstract]

Vessel Acquisitions and Dispositions

(2) VESSEL ACQUISITIONS AND DISPOSITIONS

As of May 3, 2012, we have one vessel that is being held for sale that is not included in our fleet numbers. We have assessed the value of the vessel during this quarter and at this time we believe that it is recorded at fair value. However, we will continue to assess the value on a quarterly basis and make the proper adjustment, if needed.

Interest is capitalized in connection with the construction of vessels. During the three month period ended March 31, 2012, we capitalized $0.7 million of interest. We did not capitalize any interest during the three month period ended March 31, 2011.

In January 2012, we purchased a vessel for operation in the Americas region for a total price of $22.5 million, and we sold one of our Americas vessels and recorded a gain of $1.2 million. In May 2012, we sold two of our Americas vessels and recorded a combined gain of approximately $4.2 million.

In the third quarter of 2011, our Board of Directors approved the initiation of a new-build construction program. We began the program in the North Sea region where we contracted with three shipyards to build a total of six new platform supply vessels. The estimated total cost of these initial six vessels is $245.0 million. In addition, in late 2011, we exercised an option with one of the shipyards to build an additional vessel at an estimated cost of $60.9 million. The first of these vessels is scheduled to be delivered in the second quarter of 2013 and the last is scheduled to be delivered in the first quarter of 2014.

In May 2012, we entered into a letter of agreement with a shipyard to negotiate a contract to build two U.S. flagged platform supply vessels for the U.S. Gulf of Mexico. The vessels will be 270 foot, dynamic positioning (“DP2”) capability, fire fighting certified, multi-service platform supply vessels. The estimated total cost of these two vessels is approximately $73.0 million with expected deliveries in the second and third quarters of 2013.

The following tables illustrate the details of the vessels under construction, the vessels acquired, the vessels disposed of and the vessels classified as held for sale as indicated.

Construction Yard	Region		Type(1)		Expected Delivery		Length (feet)		BHP(2)		DWT(3)		Expected Cost
													(millions)
Remontowa		North Sea		LgPSV		Q2 2013		291		9120		5100	$	41.0
Remontowa		North Sea		LgPSV		Q3 2013		291		9120		5100	$	41.1
Remontowa		North Sea		LgPSV		Q3 2013		260		9120		4000	$	37.7
Rosetti Marino		North Sea		LgPSV		Q4 2013		246		7483		3000	$	32.1
Rosetti Marino		North Sea		LgPSV		Q1 2014		246		7483		3000	$	32.1
Simek		North Sea		LgPSV		Q2 2013		304		11265		4700	$	60.9
Simek		North Sea		LgPSV		Q4 2013		304		11265		4700	$	60.9

⁽¹⁾ LgPSV—Large Platform Supply Vessel

PSV—Platform Supply Vessel

SpV—Specialty Vessel

Crew—Crewboat

⁽²⁾  BHP—Breakhorse Power

⁽³⁾  DWT—Deadweight Tons

Vessels Acquired Since December 31, 2011

Vessel

Region

Type(1)

Year

Length

BHP(2)

DWT(3)

Cost

Built

(feet)

(in millions)

Thomas Wainwright

Americas

PSV

2010

242

4,200

2,700

$

22.5

Vessels Disposed of Since December 31, 2011

Vessel

Region

Type(1)

Year

Length

BHP(2)

DWT(3)

Month

Built

(feet)

Disposed

Bluefin

Americas

Crew

2008

165

7,200

337

Jan-12

Sailfish

Americas

Crew

2007

176

7,200

307

May-12

Swordfish

Americas

Crew

2009

176

7,200

307

May-12

Vessels Held for Sale (Laid Up)

Vessel

Region

Type(1)

Year

Length

BHP(2)

DWT(3)

Built

(feet)

Clwyd Supporter

N. Sea

SpV

1984

266

10,700

1,350