Fundamentals for both the tank barge and offshore supply vessel (OSV) markets remain healthy over the near to medium term; Recent growth has been largely funded through internal cash flows; and Recent debt and equity issuances provide liquidity for new vessel construction. The company will continue to aggressively expand both its barge and OSV fleets, which could lead to higher debt levels if cash flow weakens; The OSV and tank barge businesses are subject to very cyclical pricing; Better-capitalized competitors may enter the deepwater market through new-vessel construction and create an oversupply of vessels, sinking day rates, and utilization; and The expiration of the long-term tank barge contract with Amerada Hess Corp. could raise the volatility of earnings and cash
