1030749--2/26/2010--GULFMARK_OFFSHORE

related topics

{regulation, change, law}

{operation, natural, condition}

{cost, regulation, environmental}

{operation, international, foreign}

{gas, price, oil}

{cost, contract, operation}

{personnel, key, retain}

{investment, property, distribution}

Government regulation and environmental risks can reduce our business opportunities, increase our costs, and adversely affect the manner or feasibility of doing business. We are subject to hazards customary for the operation of vessels that could adversely affect our financial performance if we are not adequately insured or indemnified. A substantial portion of our revenue is derived from our international operations and those operations are subject to government regulation and operating risks. Our tax expense and effective tax rate on our worldwide earnings could be higher should there be changes in tax legislation in countries where we operate, loss of our tonnage tax qualifications or tax exemptions and/or increased operations in high tax jurisdictions where we operate . Our international operations and new vessel construction programs are vulnerable to currency exchange rate fluctuations and exchange rate risks. Vessel construction and repair projects are subject to risks, including delays, cost overruns, and ship yard insolvencies which could have an adverse impact on our results of operations. Our current new vessel construction program, maintaining our current fleet size and configuration, and acquiring vessels required for additional future growth require significant capital. Our industry is highly competitive, which could depress vessel prices and utilization and adversely affect our financial performance. The operations of our fleet may be subject to seasonal factors. We are subject to war, sabotage, pirate and terrorism risk. Our U.S. flagged vessels may be requisitioned or purchased by the United States in case of national emergency or a threat to security. Our business could be adversely effected if we do not comply with the Jones Act. Circumvention or repeal of the Jones Act may have an adverse impact on us. The Maritime Restrictions imposed as a result of the Reorganization may have an adverse effect on us and our stockholders. We depend on key personnel, and our U.S. Citizen requirements may limit our ability to recruit and retain qualified directors and executive officers. The recent volatility in oil and gas prices and disruptions in the credit markets and general economy may adversely impact our business. Climate change, climate change regulations and greenhouse effects may adversely impact our operations and markets.

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1030749--2/26/2010--GULFMARK_OFFSHORE_INC