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Hornbeck reviews its tug and tank barge business |
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Thursday, 12 June 2008 04:05 |
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COVINGTON, La.:
Supply vessel provider Hornbeck Offshore Services has retained J. P. Morgan Securities to act as its financial advisor in a review of strategic alternatives for its downstream tug and tank barge (TTB) business. The review will consider several possibilities for the TTB business including growth by acquisitions and mergers, potential disposition or monetization of all or a portion of Hornbeck's interests in the TTB business, restructuring transactions under a master limited partnership or simply maintaining the current status of the business segment.
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Chairman, President and CEO Todd M. Hornbeck stated, "Given the substantial pending growth in our upstream fleet over the next 24 months as a result of previously announced growth initiatives, and absent any further growth in our TTB fleet, we currently expect our overall business mix to shift from roughly 80-20 today to roughly 90-10 between our OSV and TTB segments, based on relative percentages of current and pro forma operating cash flow, respectively."
"While our TTB business has always been and continues to be a stable source of diversified cash flow for our company, we have hired JPMorgan to help us explore our options with regard to this segment and to see if we can unlock additional value for our shareholders. It is important to note that no decision has been made yet."
Hornbeck owns and operates 17 ocean-going tugs and 21 ocean-going tank barges. The company expects to announce a decision on the TTB business later in the year.
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