SEACOR Marine Announces Joint Venture with Affiliates of COSCO SHIPPING GROUP
Contracts purchase of eight platform supply vessels
SEACOR Marine Holdings Inc. (NYSE:SMHI) (“SEACOR Marine”), a leading provider of global marine and support transportation
services to offshore oil and gas exploration, development and production facilities worldwide, today announced the final formation
of SEACOSCO Offshore LLC, a jointly owned Marshall Islands company (“SEACOSCO”) with affiliates of COSCO SHIPPING GROUP, the
world’s largest ship owner.
SEACOSCO entered into contracts for the purchase of eight Rolls-Royce designed new construction platform supply vessels (“PSVs”)
from COSCO SHIPPING HEAVY INDUSTRY (GUANGDONG) CO., LTD (the “Shipyard”). Six of the PSVs are of UT 771WP design (4,400 tons
deadweight) and two are of UT 771CD design (3,800 tons deadweight).
SEACOSCO will take title to seven of the PSVs in 2018 and one in 2019. Thereafter, the Shipyard, at their cost, will store the
PSVs at their facility for periods ranging from six to 18 months. The storage period can be shortened by mutual agreement.
Separately, SEACOSCO contracted with Rolls-Royce Marine AS to outfit six of the PSVs with a state-of-the-art battery energy
storage system designed to reduce fuel consumption and enhance the safety and redundancy of the vessels’ systems. This follows
SEACOR Marine’s recent order for battery energy storage systems on four large PSVs in Mexico.
John Gellert, SEACOR Marine’s Chief Executive Officer, commented: “We are excited to partner with COSCO SHIPPING GROUP. We are
confident that we have structured a transaction that meets the needs of the Shipyard while also managing the cash outlay from the
equity owners. The acquired vessels will modernize our operating fleet and expand our offerings to our customers. Combining a
proven and advanced design, best in category accommodations, and the innovative Rolls-Royce battery system, these vessels will be
highly marketable across all major offshore energy regions worldwide.”
SEACOSCO will be funded 30% with equity and 70% with debt financing secured by the PSVs on a non-recourse basis to the equity
owners. Aggregate total consideration for the eight PSVs, including the battery system, is approximately $161.1 million. SEACOR
Marine’s total cash outlay is approximately $22.4 million, with approximately $20.0 million payable in the first quarter of 2018
and the balance due over the next 14 months as vessels and the Rolls Royce battery equipment are delivered.
SEACOR Marine will be responsible for full commercial, operational, and technical management of the vessels on a worldwide basis
under a separate management agreement with SEACOSCO.
Forward Looking Statements
Certain statements discussed in this release as well as in other reports, materials and oral statements that the Company
releases from time to time to the public constitute “forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995. Generally, words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “believe,” “plan,”
“target,” “forecast” and similar expressions are intended to identify forward-looking statements. Such forward-looking
statements concern management’s expectations, strategic objectives, business prospects, anticipated economic performance and
financial condition and other similar matters. These statements are not guarantees of future performance and actual events
or results may differ significantly from these statements. Actual events or results are subject to significant known and
unknown risks, uncertainties and other important factors, including decreased demand and loss of revenues as a result of a decline
in the price of oil and resulting decrease in capital spending by oil and gas companies, an oversupply of newly built offshore
support vessels, additional safety and certification requirements for drilling activities in the U.S. Gulf of Mexico and delayed
approval of applications for such activities, the possibility of U.S. government implemented moratoriums directing operators to
cease certain drilling activities in the U.S. Gulf of Mexico and any extension of such moratoriums, weakening demand for the
Company’s services as a result of unplanned customer suspensions, cancellations, rate reductions or non-renewals of vessel charters
or failures to finalize commitments to charter vessels in response to a decline in the price of oil, increased government
legislation and regulation of the Company’s businesses could increase cost of operations, increased competition if the Jones Act
and related regulations are repealed, liability, legal fees and costs in connection with the provision of emergency response
services, such as the response to the oil spill as a result of the sinking of the Deepwater Horizon in April 2010, decreased demand
for the Company’s services as a result of declines in the global economy, declines in valuations in the global financial markets
and a lack of liquidity in the credit sectors, including, interest rate fluctuations, availability of credit, inflation rates,
change in laws, trade barriers, commodity prices and currency exchange fluctuations, the cyclical nature of the oil and gas
industry, activity in foreign countries and changes in foreign political, military and economic conditions, including as a result
of the recent vote in the U.K. to leave the European Union, changes in foreign and domestic oil and gas exploration and production
activity, safety record requirements, compliance with U.S. and foreign government laws and regulations, including environmental
laws and regulations and economic sanctions, the dependence on several key customers, consolidation of the Company’s customer base,
the ongoing need to replace aging vessels, industry fleet capacity, restrictions imposed by the Jones Act and related regulations
on the amount of foreign ownership of the Company’s Common Stock, operational risks, effects of adverse weather conditions and
seasonality, adequacy of insurance coverage, the ability to remediate the material weaknesses the Company has identified in its
internal controls over financial reporting, the attraction and retention of qualified personnel by the Company, and various other
matters and factors, many of which are beyond the Company’s control as well as those discussed in “Risk Factors” included in the
Information Statement filed as Exhibit 99.1 to Amendment No. 3 to the Company’s Registration Statement on Form 10 and other reports
filed by the Company with the SEC. It should be understood that it is not possible to predict or identify all such
factors. Consequently, the preceding should not be considered to be a complete discussion of all potential risks or
uncertainties. Forward-looking statements speak only as of the date of the document in which they are made. The Company
disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change
in the Company’s expectations or any change in events, conditions or circumstances on which the forward-looking statement is based,
except as required by law. It is advisable, however, to consult any further disclosures the Company makes on related
subjects in its filings with the Securities and Exchange Commission, including Annual Reports on Form 10-K, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K (if any). These statements constitute the Company’s cautionary
statements under the Private Securities Litigation Reform Act of 1995.
About SEACOR Marine
SEACOR Marine provides global marine and support transportation services to offshore oil and gas exploration, development and
production facilities worldwide. SEACOR Marine currently operates a diverse fleet of offshore support and specialty vessels that
deliver cargo and personnel to offshore installations; handle anchors and mooring equipment required to tether rigs to the seabed;
tow rigs and assist in placing them on location and moving them between regions; provides construction, well workover and
decommissioning support; and carry and launch equipment used underwater in drilling and well installation, maintenance and repair.
Additionally, SEACOR Marine’s vessels provide accommodations for technicians and specialists, safety support and emergency response
services.
Please visit SEACOR Marine’s website at www.seacormarine.com for additional information.
About COSCO SHIPPING GROUP
The total fleet of COSCO SHIPPING GROUP comprises of 1114 vessels with a capacity of 85.32 million DWT, ranking No.1 in the
world. Its container fleet capacity is 1.58 million TEU, ranking the fourth in the world. Its self-owned dry bulk fleet (365
vessels/33.52 million DWT), tanker fleet(120 vessels/17.85 million DWT), general cargo and specialized cargo fleet (3 million DWT),
are No.1 in the world in terms of capacity.
COSCO SHIPPING GROUP owns over 46 container terminals all over the world, with over 190 berthing spaces. The throughput of its
container terminals worldwide amounts to 90 million TEU, taking the second place in the world; the global sales volume of its ship
bunker fuel exceeds 25 million tons, topping the world’s list; the container leasing business scale surpasses 2.7 million TEU,
which is the third-largest in the world; and its offshore engineering manufacturing competence and vessel agency business are also
leading in the world.
The vision of COSCO SHIPPING GROUP is to undertake the mission of globalizing Chinese economy, consolidate advantageous
resources, take global shipping, integrated logistics, and shipping related financial services as core business, and develop
diversified industrial clusters, so as to build a world-leading business entity that provides integrated logistics and supply chain
services.
Focusing on four strategic dimensions, which are “scale growth, profitability, anti-cyclical capability and building a global
company”, the Group highlights the “6+1” industrial clusters layout. The “6” is shipping, logistics, finance, equipment
manufacturing, shipping services, and social services industrial clusters. The “1” means “Internet Plus” business based on business
model innovation. This layout will help facilitate the integration of shipping factors and build a world-class logistics service
provider.
Please visit COSCO SHIPPING GROUP’s website at http://en.coscoshipping.com for additional information.
SEACOR Marine Holdings Inc.
Erica Bartsch, 212-446-1875
ebartsch@seacormarine.com
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