So what you’re saying is “Oops, I thought I knew HOS management, but I’m just pulling crap out my rear.” There’s PLENTY of young hawspipe guys in the oil field, I’ve worked beside them.
Payments! Ha that’s why I but everything cash-in-hand. Guess it’s why I have less toys too.
…am I reading this right? HOS will have stacked [U][B]SIX[/B][/U] of the HOSMax 300’s???
That’s gonna hurt the stock price in the morning. F-word
[QUOTE=Wrench;184059]…am I reading this right? HOS will have stacked [U][B]SIX[/B][/U] of the HOSMax 300’s???
That’s what it looks like to me. Five currently stacked with plans to stack one more.
Looks like running off all those good mariners and screwing the ones they kept really paid off. Made $28 million in the 1st quarter during one of the worst downturns ever seen. Easy to see now the mariners are just pawns.
There is no loyalty these days. My company laid off people this week and guys who has been here for years were laid off just as quick as the new people.
HOS Conference Call today. Great question was asked. Brain Surgeon might be a new USCG endorsement…
Will Thompson, Barclays Capital - Analyst asks:
And then you mentioned the labor, obviously it’s preliminary to be talking about bringing back mariners and engineers, but some of these guys it takes longer to become a mariner than it is to become a brain surgeon. So can you help us understand, when we do see green shoots in the recovery, getting those guys to come back into your workforce, and how challenging that might be and what might then mean for cost inflation?
Todd Hornbeck, Hornbeck Offshore Services, Inc. - Chairman, President & CEO says:
Yes, it’s correct. It just depends on how long the downturn is. As you know, whether it’s our type of equipment with the high-end vessels or the drill ships or the semi-submersibles, we are all in the same boat, excuse the pun, but getting qualified mariners for all of that equipment will take some lead time.
During the upcycle we did pack the pipeline with a lot of qualified mariners, did a lot of training, this is still a great industry to come back to when it kicks back up again. But it is at a price and it is at a cost. And that is why I think longer term right now, the oil industry is really pushing down on the backs of the service companies to get costs down but there’s only so much cost we can really go down. Two thirds of our daily costs are crew, and that is indicative throughout the industry. And if we shut it down, and then we have to get these highly complemented – like you said, brain surgeons – back, it is not going to be cheap. That cost structure will go back up as the green shoots start and the industry comes back.
In the interim it makes absolutely no sense for companies to keep equipment in the market to subsidize the industry and just burn all of their cash, because that is what is happening today. I think a lot more equipment needs to be stacked throughout the industry, not just in the Gulf of Mexico but worldwide.
It’s should be my new pick up line in the bar “I could have been a brain surgeon”. Would think it gets more traction then I’m a unemployed mariner.
I found this interesting, especially mentioning foreign competition:
For the time being we do not have plans to stack MPSVs; however, that has less to do with our market outlook than it does with our belief that the summer construction season usually brings increased activity, and a decision to stack MPSVs now would be premature. In addition, we are seeing some attrition of foreign competitors who have succumbed to poor markets and high-debt levels. This dynamic is coupled with our expectation that our customers will increasingly migrate to Jones Act solutions for their sub-sea construction and IRM activities in the Gulf of Mexico.
[QUOTE=z-drive;184090]I found this interesting, especially mentioning foreign competition:
For the time being we do not have plans to stack MPSVs; however, that has less to do with our market outlook than it does with our belief that the summer construction season usually brings increased activity, and a decision to stack MPSVs now would be premature. In addition, we are seeing some attrition of foreign competitors who have succumbed to poor markets and high-debt levels. This dynamic is coupled with our expectation that our customers will increasingly migrate to Jones Act solutions for their sub-sea construction and IRM activities in the Gulf of Mexico.[/QUOTE]
Just saw this brand new OCV today. She is getting ready to sail, I don’t know to where.
But with Helix as the Charterer I would not be surprised if the join her sister ships in GOM in a few weeks time:
PS> This must be the fastest OCV in the business, judging from the reported previous Ports of Call here: https://www.vesselfinder.com/vessels/GRAND-CANYON-III-IMO-9695963-MMSI-354775000
OCV ??? please
If it’s coming here they will have many eyes on them making sure they are following the law. We already have vessels here to do the work.
http://hornbeckoffshore.com/fleet/featured/hosmpsv-fleet/310-class-mpsv/hos-bayou
http://hornbeckoffshore.com/fleet/featured/hosmpsv-fleet/310es-class-mpsv/hos-warland
http://hornbeckoffshore.com/fleet/featured/hosmpsv-fleet/430-class-mpsv/hos-iron-horse
[QUOTE=sailcapt;184104]OCV ??? please[/QUOTE]
OCV = Offshore Construction Vessel: http://worldmaritimenews.com/archives/68809/volstad-maritime-receives-newbuild-ocv-grand-canyon-norway/
Not my invention, I call this a CSV = Construction Support Vessel.
PS> This is Grand Canyon I, delivered in 2012.
I’m sure the Grand Canyon III will comply with all laws, rules and regulations that may be thrown at her, as has her two sisterships working in GOM already done for some years now.
These have more in common with the Ebb Tide than the Grand Canyon III. Only the Main Crane and the Diesel/Electric propulsion system is remotely modern. DP2, Portable ROVs and 4-men cabins are outdated for OCVs.
Are there any US-flag vessels with DP3-class operating in the GOM at all?
Waivers aren’t being handed out so easily these days. The market is tight and operators with vested interest will be watching their every move.
Unless they are gonna do subsea work in a hurricane DP3 is overkill for this area. Everything is modern in fact most everything comes from Norway, Germany or some other Eurotrash locale. Their is nothing the Canyon vessels can do that any of the domestic OCV’s, MPSV’s, IMRV’s, LCV’s, IE, EG, FU, can’t do.
[QUOTE=Fraqrat;184149]Waivers aren’t being handed out so easily these days. The market is tight and operators with vested interest will be watching their every move.
Unless they are gonna do subsea work in a hurricane DP3 is overkill for this area. Everything is modern in fact most everything comes from Norway, Germany or some other Eurotrash locale. Their is nothing the Canyon vessels can do that any of the domestic OCV’s, MPSV’s, IMRV’s, LCV’s, IE, EG, FU, can’t do.[/QUOTE]
Why buy “Eurotrash” when you can get just as good trash locally??
PS> Impressed with all the abbreviations. Wish I knew what they stand for.
We have to buy Eurotrash because sadly we only manufacture debt and worthless paper currency here in America. Maybe Trump will nationalize all foreign vessels working under waiver here in the GOM. Then we will have some nice pipe layers and fancy axe bow OCV’s without having to pay a dime. It’s not like y’all pack the gear to come and take them back.
'Merica!!!