921549--2/25/2008--TRICO_MARINE_SERVICES

related topics

{gas, price, oil}

{competitive, industry, competition}

{customer, product, revenue}

{personnel, key, retain}

{regulation, change, law}

{operation, natural, condition}

{operation, international, foreign}

{cost, regulation, environmental}

{stock, price, share}

{capital, credit, financial}

{provision, law, control}

{tax, income, asset}

{interest, director, officer}

{cost, operation, labor}

{cost, contract, operation}

{product, liability, claim}

Our fleet includes many older vessels that may require increased levels of maintenance and capital expenditures to be maintained in good operating condition, are less efficient than newer vessels, and may be subject to a higher likelihood of mechanical failure, inability to economically return to service or requirement to be scrapped. If we are unable to continue to upgrade our fleet successfully, our financial condition and results of operations could be materially adversely affected. Our inability to recruit, retain and train crew members may affect our ability to offer services, reduce operational efficiency and increase our labor rates. The forecasted demand for subsea services may not materialize. Our operations are subject to operating hazards and unforeseen interruptions for which we may not be adequately insured. The cost and availability of dry-dock services may impede our ability to return vessels to the market in a timely manner. Increases in size, quality and quantity of the offshore vessel fleet in areas where we operate could increase competition for charters and lower day rates and/or utilization, which would adversely affect our revenues and profitability. Operating internationally subjects us to significant risks inherent in operating in foreign countries. Our business plan involves establishing joint ventures with partners in targeted foreign markets. As a U.S. corporation, we are subject to the Foreign Corrupt Practices Act ( FCPA ) and a determination that we violated this act, including actions taken by our foreign agents or joint venture partners, may adversely affect our business and operations. Our marine operations are seasonal and depend, in part, on weather conditions. As a result, our results of operations will vary throughout the year. Our operations are subject to federal, state, local and other laws and regulations that could require us to make substantial expenditures. Our U.S. employees are covered by federal laws that may subject us to job-related claims in addition to those provided by state laws. The loss of a key customer could have an adverse impact on our financial results. The early termination of contracts on our vessels could have an adverse effect on our operations. We are exposed to the credit risks of our key customers and certain other third parties, and nonpayment by our customers could adversely affect our financial condition or results of operations. Unionization efforts could increase our costs, limit our flexibility or increase the risk of a work stoppage. The removal or reduction of the reimbursement of labor costs by the Norwegian government may adversely affect our costs to operate our vessels in the North Sea. Certain management decisions needed to successfully operate EMSL, our 49% partnership, are subject to the majority owner s approval. The inability of our management representatives to reach a consensus with the majority owner may negatively affect our results of operations. Risks Related to Our Industry Changes in the level of exploration and production expenditures, in oil and gas prices or industry perceptions about future oil and gas prices could materially decrease our cash flows and reduce our ability to meet our financial obligations. If our competitors are able to supply services to our customers at a lower price, then we may have to reduce our day rates, which would reduce our revenues. Risks Relating to our Capital Structure Our business is highly cyclical in nature due to our dependency on the levels of offshore oil and gas drilling activity. If we are unable to stabilize our cash flow during depressed markets, we may not be able to meet our obligations under our current or any future debt obligations, and we may not be able to secure financing or have sufficient capital to support our operations, which may materially adversely affect our financial condition or results of operations. We may not be able to repatriate funds from Norway to the U.S., which could negatively impact our operational flexibility. Our ability to utilize certain net operating loss carryforwards or foreign tax credits may be limited by certain events which could have an adverse impact on our financial condition. We may face material tax consequences or assessments in countries in which we operate. If we are required to pay material tax assessments, our financial condition may be materially adversely affected. Our business segments have been capitalized and are financed on a stand-alone basis, which may hinder efficient utilization of available financial resources. Financial statements for periods subsequent to our emergence from bankruptcy will not be comparable to those of prior periods, which will make it difficult for stockholders to assess our performance in relation to prior periods. Currency fluctuations could adversely affect our financial condition and results of operations. The terms of our existing registration rights agreement with certain of our common stockholders may restrict the timing of any public offering or other distribution of shares of our common stock and may depress the market price of our stock. Risks Relating to the Ownership of our Common Stock Our charter documents include provisions limiting the rights of foreign owners of our capital stock.

Full 10-K form ▸

921549--2/25/2008--TRICO_MARINE_SERVICES_INC