Note 4 - Vessel Acquisitions and Dispositions

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

( 4 ) VESSEL ACQUISITIONS AND DISPOSITIONS

Interest is capitalized in connection with the construction of vessels. During the

six

months ended

June 30, 2017,

we capitalized

$0.1

million of interest, all in the

first

quarter. Since we took delivery of the last of the new build vessels we had under construction during the

first

quarter of

2017,

no

further interest was capitalized during the

second

quarter of

2017.

During the

three

and

six

months ended

June 30, 2016,

we capitalized

$0.7

million and

$1.7

million of interest, respectively.

In the

first

quarter of

2016,

we had

two

vessels under construction in the U.S. that were significantly delayed. In

March 2016,

we resolved certain matters under dispute with the shipbuilder and reset the contract schedules so that we would take delivery of the

first

vessel in mid-

2016

and the

second

vessel in mid-

2017,

at which time a final payment of

$26.0

million would be due.  We took delivery of the

first

of these vessels during the

second

quarter of

2016.

Under the settlement, we had the right to elect

not

to take delivery of the

second

vessel and forego the final payment, in which case the shipbuilder would retain the vessel. On

May 8, 2017,

we advised the shipbuilder that we had elected

not

to take delivery. We have

no

other vessels under construction as of

June 30, 2017.

During the

first

quarter of

2017

we took delivery of a vessel built in Norway and paid a final installment on delivery of

195.0

million NOK (approximately

$23.3

million).

The following tables illustrate the details of vessels sold and vessels added:

Vessel Additions Since December 31, 2016
			Year	Length						Month
Vessel	Region	Type (1)	Built	(feet)		BHP (3)		DWT (4)		Delivered
North Barents	N. Sea	LgPSV	2017		304		11,935		4,700	Jan-17

Vessels Disposed of Since December 31, 2016
			Year	Length						Month
Vessel	Region	Type (2)	Built	(feet)		BHP (3)		DWT (4)		Disposed
Mako	Americas	FSV	2008		181		7,200		552	Mar-17
Tiger	Americas	FSV	2009		181		7,200		552	Mar-17

(

1

)

LgPSV - Large Platform Supply Vessel

(

2

)

FSV - Fast Supply Vessel

(

3

)

BHP - Brake Horsepower

(

4

)

DWT - Deadweight Tons