GulfMark Offshore will record an impairment charge against its construction-in-progress of $46.2 million ($29.2 million after tax, or $1.16 earnings per diluted share) in the first quarter of 2009 concerning these three vessels.
While GulfMark Offshore looks to follow all contractual and legal remedies available to recover its investment, because of the uncertainty of recovery, the company is taking an impairment charge for the full amount of its investment in these vessels. Other than costs to pursue any such remedies, which the company does not suppose will be material, this non-cash charge should not effect in future cash expenditures.
