Trico Marine Expects Weaker 4th Quarter

THE WOODLANDS, Texas (AP) — Trico Marine, which provides work boats to the offshore oil and natural gas industry, said Tuesday that its fourth quarter results could be hurt by a soft market and several other factors.

The company also said it has amended its $50 million credit agreement to exclude the effect of impairment charges related to the cancellation of shipbuilding contracts for several 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, mainly for the shipbuilding cancellation.

It did not provide a forecast for its quarterly earnings. It earned 36 cents a share on revenues of $189.9 million in the third quarter.

Trico said a soft market for offshore business in the North Sea and the shipbuilding cancellation impairment charges would negatively impact its fourth quarter results. The company also said an upgrade to one vessel, the termination of a time charter of another vessel, and the decision to keep vessels in certain markets for existing contracts rather than use them for spot business, will also hurt its fourth quarter.

Shares of Trico fell 22 cents, or 4.2 percent, to $5.06 in after-market trading Tuesday after ending the regular session down 11 cents at $5.28.

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