1030749--3/10/2006--GULFMARK_OFFSHORE

related topics

{operation, natural, condition}

{operation, international, foreign}

{competitive, industry, competition}

{cost, contract, operation}

{gas, price, oil}

{control, financial, internal}

{personnel, key, retain}

{cost, regulation, environmental}

{acquisition, growth, future}

An increase in the supply of offshore support vessels would likely have a negative effect on charter rates for our vessels, which could reduce our earnings. Government regulation and environmental risks reduce our business opportunities and increase our costs. 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 Substantially all our revenues are derived from our international operations and those operations are subject to government regulation and operating risks. Our international operations are vulnerable to currency exchange rate fluctuations and exchange rate risks. Vessel construction and repair projects are subject to risks, including delays and cost overruns, that could have an adverse impact on our results of operations. Our current operations and future growth may require significant additional capital, and our substantial indebtedness could impair our ability to fund our capital requirements. Our industry is highly competitive, which depresses vessel prices and utilization and adversely affects our financial performance. The operations of our fleet may be subject to seasonal factors. We are subject to war, sabotage and terrorism risk. We depend on key personnel. We have previously identified material weaknesses under the Sarbanes-Oxley Act relating to the effectiveness of our internal controls over financial reporting and we may identify additional material weaknesses in the future.

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1030749--3/10/2006--GULFMARK_OFFSHORE_INC