Hornbeck Offshore Expands Already Impressive Newbuild Program

HOS Bluewater, a 240ED-Class Offshore Supply Vessel, courtesy Hornbeck Offshore

Hornbeck Offshore Services, Inc. (NYSE: HOS) announced Tuesday that it has expanded a massive U.S.-built, owned and operated OSV newbuild program and has commenced a new 200 Class OSV Retrofit Program.

The Louisiana-based offshore services company says that they are exercising the first four of 48 options under a recently announced newbuild program and spending $180 million to build two additional 310 class OSVs and two additional 320 class OSVs. The four new vessels expand the company’s fifth-such program from 16 vessels to a total of 20 U.S.-flagged HOSMAX class DP-2 new generation OSVs. ¬†Today’s announcement brings HOS’ Newbuild Program #5 to $900 million and the potential for¬†64-vessels.

In addition to the newbuild construction, HOS says that they have extended the exercise dates for 44 remaining options by roughly 60 days each, as well as commenced a retrofit program to stretch and upgrade six 200 class DP-1 OSVs into 240 class DP-2 OSVs.

Once complete the OSVs will support deepwater and ultra-deepwater offshore oil and gas activities in the U.S. Gulf of Mexico Mexico, and Brazil. The four options announced today have an expected delivery of late 2014 and early 2015.

The 300 class DP-2 vessel design features 6,000 deadweight tons and 20,000 barrels of liquid mud carrying capacity. The length and high load capacity of these OSVs make them ideal candidates for conversion into deepwater construction service and for subsea inspection, repair and maintenance work. HOS expects these new class vessels to offer double the deadweight tons and more than double the liquid mud capacity of its 240 class OSVs, which should allow the 300 class OSVs to command higher dayrates.

As a footnote HOS also mentioned that it’s vessels suffered no damage and no charter cancellations as a result of Hurricane Isaac. The company also said it’s HOS Port, the Company’s logistics shore-base in Port Fourchon, LA, is fully operational.