You will need the Flash plugin to view this publication

Download the Flash plugin for free here. Just refresh this page after installing Flash.
Also make sure that javascript is enabled in your browser.

Alternatively, you can download this publication in PDF-format - Click here.

Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
Page 11
Page 12
Page 13
Page 14
Page 15
Page 16
Page 17
Page 18
Page 19
Page 20
Page 21
Page 22
Page 23
Page 24
AHISTORYOFGULFMARKOFFSHORE 1958-2013FromhumblebeginningsmorethanfiftyyearsagoGulfMarkOffshoreInc.hasgrownintooneoftheworldspremierprovidersofoffshoremarineservices.Thejourneyhastakenthecompanythroughseveralchangesinheadingswithplentyofinterestingsightsandportsofcallalongtheway.Butwhetherthewindswerefavorableortheseaswereroughwithkeeneyeschartingthecourseandskilledhandsatthehelmthecompanyhasalwaysmovedforward. 2AHistoryofGulfMarkOffshoreeEarlyYearsGulfInterstateInJulyof1958HoustonentrepreneurHyBirdarmedwithbusinessacumenandamodestamountofcapitalincorporatedGulfInterstateCompany.ItbeganbusinessoperationsinJanuaryofthefollowingyearwithanetworthof431000.AttheoutsetGulfInterstatewasessentiallyapipelineengineeringrm.OneofitsinitialprojectswastheengineeringandconstructionoftheTranswesternPipelinethatoriginatedinWestTexasandterminatedinCalifornia.The200millionprojectwascompletedin1960.Alsoin1960thermbeganinvestinginofcebuildingsindowntownHouston.Laterrealestateinvestmentsincludedindustrialandmixed-usepropertiesinBuffaloNewYorkaswellasinterestsinresortpropertiesinArizonaColoradoHawaiiAcapulcoandCozumel.EvervigilantforotherstrategicopportunitiesGulfInterstateventuredintothewholesaleairconditioningandheatingbusinessandlaterintothepollutioncontrolindustry.Whenthereturnswerenotdeemedsatisfactorythecompanyexitedthosebusinessestofreeupfundsforotherinvestments.Aftertenyearsatthehelmin1969Mr.BirdresignedfromhispositionsasChairmanoftheBoardandPresident.MarkMillardwhohadbeenontheBoardofthecompanysinceitsbeginningwaselectedChairmanandFarrileYoungwasnamedPresident.ThesameyearGulfInterstatedesignedandsupervisedconstructionoftheGulfCentralPipelinetheworldsrstlong-distanceammoniapipeline.Alsoin1969GulfInterstatebecameactiveinaninternationalventureamarineterminalinEngland.TheterminalortankfarmwaslocatedatthemouthoftheTyneRivernearNewcastle.Itconsistedof26storagetankscapableofaccommodatingmorethan70shipsannually.GulfInterstateCompanyisfoundedwithanetworthof431000.Thecompanybeginsinvestinginrealestate.GulfInterstateCompanydesignsandsupervisesconstructionoftheGulfCentralPipelinetheworldsrstlong-distanceammoniapipeline.GulfInterstateCompanyengineersandconstructstheTranswesternPipelinethatoriginatesinWestTexasandterminatesinCalifornia.MarkJ.MillardiselectedChairmanoftheBoard.19581960196919601969Withapproximately100rigsoperatingintheGulftodayandeachrequiringtwoormoreserviceandsupplyboatsthisboatingoperationshouldplayamajorroleinGulfInterstatescontinuousprogramofexpansion.FarrileYoungPresident1971 319582013In1971GulfInterstategotaglimpseofitsfuturewhenitacquireda45percentinterestinGulfOverseasMarineCorporationaLouisiana-basedrmthatfurnishedutilityboatstoserviceoffshoredrillingrigsintheGulfofMexico.CompanypresidentFarrileYoungnotedWithapproximately100rigsoperatingintheGulftodayandeachrequiringtwoormoreserviceandsupplyboatsthisboatingoperationshouldplayamajorroleinGulfInterstatescontinuousprogramofexpansion.DuetothegrowthinthenumberofrigsoperatingintheGulfGulfOverseasMarineiscurrentlynegotiatingforanadditionalsupplyboat.BythattimeGulfInterstatesmanagementphilosophywasrmlyestablished.Inthecompanys1971annualreporttoshareholdersYoungsaidItisGulfInterstatesintentiontocontinueitsexperiencedapplicationofhumaningenuityandmaterialsourcesintheareaofrealestateinvestmentandenergytransportation.Thishasbeenitshistoryoneinwhichthermsspecialskillsabilitiesandknowledgeweretestedandproved.Thecompanysmanagementstudiesthepresentaswellasitspastwithintentionsofmakingfutureaggressivemovesintonewareasofinvestmentopportunities.ThatishowtheirideashavebecomerealitiesandhowGulfInterstatesambitionshavebeensuccessfullyaccomplished.Companyrevenuesexceed10million.ThesubsidiaryGulfOverseasShipbuildingCorporationisformedtotakeadvantageoftheburgeoningdemandforshipyardconstruction.GulfInterstateEngineeringCompanyengineeringsubsidiaryisselectedaspartofateamtoprovidetechnicalandenvironmentalassistancealongwithmonitoringthedesignconstructionandinitialoperationoftheTrans-AlaskaPipelineSystem.TheCoalDevelopmentandConsultingDepartmentisformedtodevelopcoaltransportationandhandlingprojects.19731973197319741969AmmoniaPipelineSystemMap 4AHistoryofGulfMarkOffshoreThermsstrongportfolioofassetsisreadytouseandwillbeusedinmoreinnovativewaystoimprovethevalueofthecompany.AlsothatyearDr.C.T.WellsjoinedthecompanyasViceChairmanoftheBoard.AnEnvironmentalPriorityIn1972twosubjectsweregaininginprominenceintheU.S.Theecologymovementwasbuildingmomentumandthecountrywasfeelingthebeginningsofanenergycrisis.Mr.YoungexplainedtoshareholdersTwocriticalareasofconcernhavebeenmuchinthemindsofthecompanysmanagementduringtheyear.Oneisthecountrysenergyshortageandtheotheristherelatedproblemofprotectingourenvironment.Inadditiontothegrowingshortageofoilandgasandotherenergyresourcesthisnationisincriticalneedofmoreterminaldocksandcrudeoilstoragefacilitiesinsufcientquantitytoprovidenationalsecurity.Itisthecorporatepurposetoengageintheefforttosolvetheseproblems.Thecompanyisalsomuchawareofitsresponsibilitytomakeeveryefforttoprotectthecountrysecologywhileconductingitsbusiness.Itisaseriousresponsibilitythatweshallpursue.EnergyTransportationStorageandDistributionIn1973Dr.C.T.WellswaselectedPresidentofGulfInterstateCompanytosucceedthelateFarrileYoung.InthatyearsannualreportGulfInterstateEngineeringCompanyisselectedtoserveastheexecutivearchitectengineerfortheFederalGovernmentsEarlyStrategicPetroleumReserveProgramandtoprovidetheoverallconceptualdesignforallearlystoragefacilities.TheMarineProjectsDivisionisestablishedasthecompanybecomesinvolvedinthegeneraloffshoreenergydevelopmentmarketthroughparticipationinmarineconstructionofoffshoreproductionfacilitiesandpipelines.AcquiresInternationalPipelineEngineersInc.AcquiresHoldThatRiverInc.engagedinrivererosioncontrolfortheprotectionofpipelinecrossingsbridgeabutmentspowerlinetowersandaerialpipelinesupports.19761978197719791972AnnualReportCoverIllustrationTwocriticalareasofconcernhavebeenmuchinthemindsofthecompanysmanagementduringtheyear.Oneisthecountrysenergyshortageandtheotheristherelatedproblemofprotectingourenvironment.FarrileYoungPresident1972 519582013WellsandBoardChairmanMillardannouncedOurnewlydenedcorporategoalistobuildanaggressiveorganizationspecializingininvestmentsinanengineeringoftransportationandstoragesystemsfordistributionofallformsofenergyandsimilarbulkmaterials.AsamajorstepinkeepingwiththatgoalGulfInterstateenteredthedomesticcommercialterminalingeld.ThecompanybeganconstructingdockfacilitiesawaterfrontterminalandpipelinesintheWilmingtonDelawarearea.GulfInterstatealsoformedthesubsidiaryGulfOverseasShipbuildingCorporationtotakeadvantageoftheburgeoningdemandforshipyardconstruction.Astheoffshoreoilandgasindustrygrewthenumberofopportunitiesforsaleorchartershipbuildingandlaborserviceswouldalsogrow.AccordinglyGulfOverseasMarinewasexpectedtobecomeasignicantcontributortothecompanysgrowthandearnings.TheTrans-AlaskaPipelineInthemid-1970soneofthemostcontroversialandcloselywatchedprojectswastheconstructionofapipelineacrossAlaska.WhilePresidentCarterandCanadianPrimeMinisterTrudeauendorsedtheNorthwestAlaskanPipelineasthebestmethodfordeliveryofPrudhoeBaynaturalgastothelower48statesmanypeoplewereconcernedabouttheecologicallysensitiveareasthepipelinewouldpassthrough.GulfInterstateGeophysicalisformedtoprovidelandseismicdataacquisitionfortheoilgascoalanduraniumindustries.GulfInterstateandTheAppalachianCompanyformGulfInterstateCoalInvestments.GulfInterstateCompanyisorganizedintofourenergy-relatedbusinessareasEngineeringPipelineandProductTerminalsEnergyandAdvancedTechnology.1980198119811973AnnualReportIllustrationOurnewlydenedcorporategoalistobuildanaggressiveorganizationspecializingininvestmentsinanengineeringoftransportationandstoragesystemsfordistributionofallformsofenergyandsimilarbulkmaterials.Dr.C.T.WellsPresident1973 6AHistoryofGulfMarkOffshoreDuring1973GulfInterstateEngineeringCompanyanengineeringsubsidiarywasselectedaspartofateamtoprovidetechnicalandenvironmentalassistancealongwithmonitoringthedesignconstructionandinitialoperationoftheTrans-AlaskaPipelineSystem.Atthetimethe48-inch731-milepipelinewasthelargestprivateindustrialprojectinhistory.TheOPECEmbargoandtheEnergyCrisisInOctoberof1973concernsaboutanenergyshortagebecameafull-blownnightmare.Middle-EasternmembersofOPECcurtailedshipmentsofoiltotheU.S.andquadrupledtheprice.Theresultingturmoilincludedgasolineshortagesandnationwiderationingtheloweringofthenationalspeedlimitfrom70m.p.h.to55m.p.h.andadoptionofyear-rounddaylightsavingtime.GulfInterstateChairmanMillardobservedTherecentoilembargogeneratedconsiderableinterestonthepartofgovernmentandindustryinstandbyenergystorageforcrudeoilandrenedproducts.Coupledwiththehistoricallyincreasingdemandfortidewaterstoragefacilitiesthisinteresthasplacednewprioritiesonthecompanysdevelopmentofadditionalwaterterminalfacilities.ConcentratedFocusonEnergyBy1974GulfInterstatebegandisposingofselectedrealestateinvestmentsandreinvestingtheproceedsintoownershipofpipelineandterminalsystems.TotakeadvantageoftherapidlyincreasingdemandsforcoalthecompanyformedaCoalDevelopmentandConsultingDepartment.ThisnewgroupofmanagersandengineerswaschargedwithdevelopingTheoilbust.MarkR.WellmanisnamedPresidentandChiefExecutiveOfcer.CompanynameischangedtoGulfAppliedTechnologies.Beginstoexpandfocusofpipelinebusinesstoincludemarinepipelineengineering.19811983198319831974AnnualReportIllustration 719582013coaltransportationandhandlingprojectsincludingcoalslurrypipelinestrainandrailloadingandunloadingfacilitiestrans-shipmentterminalsandminesitehandlingfacilities.In1981GulfInterstateandTheAppalachianCompanywouldformGulfInterstateCoalInvestmentstoinvestinacoalmineinBooneCountyWestVirginia.PipelineprojectscontinuedintheU.S.andabroad.ThecompanyworkedwithanEnglishengineeringandconstructiongrouptomakeaproposaltotheRussiangovernmentforthedesignandconstructionofa2200-mileSovietammoniapipelineanddistributionsystem.TheStrategicPetroleumReserveStorageProgramIn1976GulfInterstateEngineeringCompanysignedacontractwiththeFederalEnergyAdministrationnowtheDepartmentofEnergytoserveastheexecutivearchitectengineerfortheFederalGovernmentsEarlyStrategicPetroleumReserveProgramandprovidetheoverallconceptualdesignforallearlystoragefacilitiesactingastheFEAsprimaryconsultant.InthisroleGulfInterstateEngineeringCompanywasresponsiblefortheengineeringconceptsofundergroundstoragepipelinesandmarinefacilitiesrequiredatselectedlocations.ThepurposeofthePetroleumReserveProgramwastominimizetheimpacttothenationseconomyandsecuritycausedbyanyinterruptionoftheowofimportedcrudeoil.MarkJ.MillardChairmanoftheBoardpassesaway.TheBoardelectsHaroldS.GeneenChairman.MarkR.WellmanisnamedChairmanoftheBoard.LouisF.CraneisnamedPresidentandChiefExecutiveOfcer.AcquirescapitalstockofErconCorporationincreasingthescaleoftheErosionControlsegment.GulfInterstateEngineeringinstallsber-opticcableforU.S.Sprint.19841986198519861976AnnualReportIllustrationerecentoilembargogeneratedconsiderableinterestonthepartofgovernmentandindustryinstandbyenergystorageforcrudeoilandrenedproducts.Coupledwiththehistoricallyincreasingdemandfortidewaterstoragefacilitiesthisinteresthasplacednewprioritiesonthecompanysdevelopmentofadditionalwaterterminalfacilities.MarkMillardChairman1973 8AHistoryofGulfMarkOffshoreOilandGasExplorationandDevelopmentIn1978thecompanyembarkedonaprogramofoilandgasexplorationanddevelopmentwiththeformationofGulfInterstateExplorationInc.ThissubsidiaryenteredintoanagreementwithaHouston-basedgeologicalandpetroleumengineeringconsultingrmfortheexclusiveuseoftheirexplorationtechnologyinTexasandOklahoma.TheMarineProjectsDivisionwasestablishedasthecompanybecameinvolvedinthegeneraloffshoreenergydevelopmentmarketthroughparticipationinmarineconstructionofoffshoreproductionfacilitiesandpipelines.Thisfurtherapplicationofcompanyexpertiseandcapabilitiescomplementedexistingengineeringservicesandprovidedentryintoanewmarketsegment.In1979GulfInterstateacquiredtheunusuallynamedcompanyHoldThatRiverInc.Itwasengagedinthebusinessofrivererosioncontrolfortheprotectionofpipelinecrossingsbridgeabutmentspowerlinetowersandaerialpipelinesupports.SovietsinAfghanistanandAnotherOilScareAlsoin1979theSovietUnionsinvasionandoccupationofAfghanistancausedfearofanothermajordisruptionoftheworldssupplyofoil.GulfInterstateBoardChairmanMarkMillardobservedForthesakeofnationalsecuritydependenceonforeignoilmustbereduced.Realisticallyfortheforeseeablefutureareductioninoilconsumptionwouldhavetobeaccompaniedbyincreaseduseofnaturalgasandcoalasenergysources.GulfAppliedResearchadaptsRODARtechnologyforanewbattleeldlandminedetectionsystemfortheU.S.Army.SellsGulfInterstateEngineeringCompany.SellsEntrix.Endsber-opticcableventure.SellsPipelinesandTerminalssegment.SellsGulfAppliedResearch.AcquiresEntrixanenvironmentalconsultingrm.EnergyVenturesisthenumberoneperformingstockinthecountry.19861988198719891978AnnualReportIllustrationForthesakeofnationalsecuritydependenceonforeignoilmustbereduced.Realisticallyfortheforeseeablefutureareductioninoilconsumptionwouldhavetobeaccompaniedbyincreaseduseofnaturalgasandcoalasenergysources.MarkMillardChairman1979 919582013PropheticWordsChairmanMillardthenprescientlynotedThenewlevelofgaspriceshasmadepossibletheexplorationanddevelopmentoflargereservoirswhichhavenotbeencommercializedbefore.PerhapsnoonecouldhaveimaginedtheinnovationsinexplorationandproductionthatwouldunlockthevastgasreservesofshaleformationssuchastheBarnettandBakken.Mr.MillardconcludedGasisourbusiness.GulfInterstatecanlookwithcondencetoitsprospectsinaperiodwhenitsgas-relatedcapabilitieswillbeusefulinhelpingtosolvesomeofthedifcultproblemsfacingourcountry.ADeregulatedMarketIn1980Mr.MillardnotedOPECiswillingandabletosupplyoilcoveringtheneedsoftheindustrializedworldbutourmarginofenergysecurityisnarrowing.AthometheNaturalGasPolicyActandthederegulationofoilweregreatstepstowardgivingthemarketstrengthtoencourageproductionandreduceconsumption.PresidentReaganwillcarrythispartoftheprogramforwardwithenthusiasmandconviction.Openingdoorstoprivateinitiativeinoilandgaswillundoubtedlyimproveourenergysupplies.By1982howeverslowedeconomicactivityandenergyconservationpracticescausedaworldwideoilsurplusandpricestumbled.GulfAppliedTechnologiesDevelopingAdvancedSolutionsIn1983thecompanynamewaschangedtoGulfAppliedTechnologiesasthecompanyturnedtotechnologytopreserveopenandexpandmarketsintheenergyindustry.CompanyPresidentWellsexplainedWerealizethatourlong-termsuccessisdependentonadaptingtotheshiftofAmericanenterprisefromanindustrial-basedeconomytoonemoreorientedbothdomesticallyandinternationallytoserviceandtechnology.DavidJ.ButtersisnamedChairmanoftheBoard.Revenuesexceed20million.Revenuesexceed30million.ChangesnametoGulfMarkInternationalInc.AcquiresBPShippingLtd.thewhollyownedmarineservicesarmofBritishPetroleumBP.1989199019931980AnnualReportIllustration19921994 10AHistoryofGulfMarkOffshoreChairmanMillardaddedAcombinationofnewandgreateradvancesintheeconomiesofenergyusewithbettermethodsforthedetectionofwherehydrocarbonsliehiddenandbettertechniquesforreachingthematgreaterdepthsandinincreasinglyinhospitableplacescouldhaltorreversethedownwardtrendofannualworldwidepetroleumreserves.WemayevenbeblessedbygreaterluckincominguponunsuspectedlargenewreservoirsMr.WellscontinuedWehavemadesignicantprogresstowarddevelopinginstrumentsforidentifyingandmeasuringsubsurfaceconditionsbasedonnewprinciplesandtechniques.Intheprocesswehavefoundthatsomeoftheseinstrumentshaveapplicationsoutsidetheenergyindustry.GulfInterstatesAdvancedTechnologybusinessdevelopedpulseradartoinspectpavedsurfacestodeterminethethicknessofconcreteorasphaltaswellasthepresenceofmoistureandvoidsunderneaththeselayersofpavingmaterials.WithapplicationforhighwayscitystreetsandairportrunwaysitwastrademarkedasRODAR.ThesametechnologywasexploitedinthedevelopmentofanewbattleeldlandminedetectionsystemfortheU.S.Army.IntheerosioncontrolbusinessHoldThatRiverscapabilitiestomodelriversandoceancurrentsledtothedevelopmentofascourprotectiondeviceforplatformlegsonoffshoreoilfacilities.ManagementChangesDuring1983Dr.C.T.WellsbecameViceChairmanoftheBoardandMarkWellmanwasnamedPresidentandChiefExecutiveOfcer.TakesdeliveryofHighlandPipertherstsupplyvesselorderedandbuilttoGulfMarksspecications.EnergyVentureInc.andErconownershipareseparatedfromthenewentity.ChangesnameofcompanytoGulfMarkOffshoreInc.BruceA.StreeterisnamedPresident.19961997199719971983AnnualReportRODARAnalysisWerealizethatourlong-termsuccessisdependentonadaptingtotheshiofAmericanenterprisefromanindustrial-basedeconomytoonemoreorientedbothdomesticallyandinternationallytoserviceandtechnology.Dr.C.T.WellsPresident1983 1119582013InJanuaryof1984MarkMillardthecompanyslong-timeChairmanpassedaway.TheBoardelectedHaroldGeneentolltheposition.Thecompanyshowedanoperatinglossin1983andmanagementtookactionstoreduceshort-termlossesandpositionthecompanytopreserveitsliquidityandresourcebaseinthepotentiallydifcultmonthsahead.Newinvestmentswerelimitedtoareaswherethecompanyhadstrongexpertiseorotheradvantageovercompetitors.Thecompanycontinuedtosellassetsandbusinessesthatdidnottinwithitsstrategyandstructure.Adecentralizationplantransferredcertainfunctionsfromthecorporategrouptotheoperatingcompanieswithasignicantincreaseintheauthorityandresponsibilityoftheoperatingcompanypresidents.Overallefciencyimproved.Thecompanyprunedoperatingcostsdramaticallywhilebeingcarefulnottosacricetheabilitytodeliverrst-rateserviceinalllinesofbusiness.In1986thecompanyreturnedtoprotability.MarkWellmanwaselectedChairmanoftheBoardandLouisCranewasnamedPresidentandChiefExecutiveOfcer.RestructuringandStreamliningIn1986thecompanybegantorestructure.ThePipelinesandTerminalssegmentwassoldinearly1987andtheRadarSystemssegmentwasdiscontinuedinthatsameyear.ThecompanyalsotransferredallofitsoilandgaspropertiestoitssubsidiaryEnergyVenturesInc.Therestructuringcontinuedin1988withthesaleoftheEngineeringandProjectManagementsegment.Thecompanyentered1989withoperationsintwoareas1erosioncontrolservicesand2oileldserviceandequipmentthroughits27percentownershipofEnergyVenturesInc.itspubliclyheldsubsidiary.Revenuesexceed46million.AcquiresBrovigSupplyASAanditsvevessels.AddstheHighlandRoverandHighlandSpirittothecompanysownedeet.TakesdeliveryofHighlandDrummerUT755designsupplyvessel.Revenuesexceed86million.199719971998199719981981MarkMillardATributetoMarkMillardMarkJ.MillardjoinedtheBoardofDirectorsatthetimeofthecompanysfounding.HewaselectedChairmanin1969andheldthatpositionuntilhisdeathin1984providingvisionaryleadershipforthecompanythroughaperiodofgreatstrategicgrowth.ThenameGulfMarkisatributetoMr.Millard. 12AHistoryofGulfMarkOffshoreDavidButterswaselectedChairmanoftheBoardapositionhecontinuestohold.In1989EnergyVenturesstockwasthehighestperformingstockontheNASDAQexchangeandexceededbyafactoroftwothebestperformingstocksontheNewYorkandAmericanStockExchangesmakingEnergyVenturesthenumberoneperformingstockinthecountry.Mr.ButtersobservedTheresurgenceofinvestorinterestintheoilpatchisreectiveofthegrowingconsensusthatfutureearningsforthissectorarestrong.EnergyVenturesisstrategicallyposturedtocapitalizeontheanticipatedimprovementinoperatingconditionsforthismarketbecauseofitsaggressiveacquisitionprograminitiatedinmid-1987.GulfMarkInternationalInc.ATurningPointIn1990thecompanypurchasedthemarinedivisionofOffshoreLogisticsInc.ThisacquisitionformedthenucleusofwhatbecametheGulfOffshoreMarineDivisionwhichoperatedelevenoffshoreservicevesselsinthreegeographicareastheNorthSeaSoutheastAsiaandBrazil.Thepurchaseofthisbusinessrepresentedaninitialmoveasadirectoperatingentityintotheinternationaloileldserviceindustry.TheacquisitiongavethecompanyasignicantpresenceinthemostactiveoffshoreexplorationanddevelopmentmarketsintheworldwhileavoidinganyexposuretothelessfavorableconditionsintheGulfofMexico.Shiftsstrategytobeingintheroleofvesselmanager.AddsnewlyconstructedHighlandGuideandHighlandScout.EdGuthriejoinsthecompanyandservesasChiefFinancialOfceruntilhisretirementin2009.HighlandPioneerisaddedtoeet.19981999199919991991AnnualReportImageeresurgenceofinvestorinterestintheoilpatchisreectiveofthegrowingconsensusthatfutureearningsforthissectorarestrong.DavidButtersChairman1989 1319582013RecognizingthatitsbusinesshadfundamentallychangedthecompanychangeditsnameaswelltoGulfMarkInternationalInc.Thenamewaschosentorecognizetheleadershipandcontributionsofthecompanyslong-servingandreveredChairmanthelateMarkMillard.GulfMarksnewmarineservicesdivisionGulfOffshoreMarinesupportedabroadrangeofoffshoreexplorationdrillingandproductionactivities.Itsservicesincludedtowingandpositioningofmobiledrillingrigsanchorhandlingtransportingpersonnelandsuppliestooffshoreplatformsandsupportingoffshorepipelayingandconstructionprojects.SuccessAmidsttheStormDuring1991theU.S.petroleumindustrywasundersiege.Oilmarketswerevolatileandunstable.Naturalgaspricesreachedlowsthathadnotbeenseenforoveradecade.Majoroilcompaniesreduceddomesticexplorationexpenditures.Theexodusbythesmallerindependentoperatorscontinuedandnewregulatoryandenvironmentalrestrictionswereenacted.Allthesefactorsconvergedin1991andthedomesticdrillingrigcountplungedtoitslowesthistoricallyrecordedlevel.Mr.ButtersexplainedAtGulfMarkwewerefortunatetohaveanticipatedthesetrends.InourmarineservicesoperationGulfOffshoreMarineallofourvesselsarebasedoutsideoftheUnitedStates.EnergyVenturesournon-consolidatedafliateachievedrecordrevenuesandoperatingprotswhilegeographicallybroadeningitsrevenuebasehavingone-quarterofitsrevenuestreamsourcedfromareasoutsideNorthAmerica.HecontinuedGulfOffshoreMarineourprincipaloperatingcompanyiswellregardedbyitsindustrypeersandenjoysexcellentrelationshipswithitscustomers.Ourstrategyhasbeentotakealong-termgrowthapproachupgradingoureetthroughnewconstructionandequipmentEmbarksonanewvesselconstructionprogramtoaugmentadiversiedandtechnologicallyadvancedeetwithninenewvessels.AcquiresHighlandPatriot.Revenuesexceed100million.AcquiresSeaTruckHoldingASaNorwegiancompanywithvesselsthatincludetheSafeTruckStoutTruckandSteamTruck.2000200120012001GulfMarksnewmarineservicesdivisionGulfOshoreMarinesupportedabroadrangeofoshoreexplorationdrillingandproductionactivities.Itsservicesincludedtowingandpositioningofmobiledrillingrigsanchorhandlingtransportingpersonnelandsuppliestooshoreplatformsandsupportingoshorepipelayingandconstructionprojects.1990AnnualReport 14AHistoryofGulfMarkOffshoremodernizationandfocusingoninternationalmarkets.Thisstrategyhaspermittedyourcompanytogrowandoperateprotablywhenmostoilservicecompaniesareexperiencingoperatinglossesandareshrinkingtheircorebusiness.Thenumberofdomesticcompaniesandthenumberofpeopleinvolvedinoilservicetodayisonlyafractionofwhatitoncewas.Theremainingplayersarefewerbettercapitalizedhaveloweroperatingcostsaremorefocusedtechnicallyandtypicallyhavelargermarketsharethantheyoncehad.Theeetgrewfromtheoriginalelevenvesselsin1990totwenty-vebyyear-end1993.MuchofthedramaticincreaseresultedfromtheacquisitionofBPShippingLtd.thewhollyownedmarineservicesarmofBritishPetroleumBP.TheVesselsofGulfOffshoreMarineThenasnowGulfsvesselsweregenerallyoftwotypesplatformsupplyandanchorhandling.Theyeachperformavarietyoffunctions.Anchorhandlersarecharacterizedbyhigherhorsepowerandspecialequipmentsuchaslargetowingwinches.Thistypeofvesselisusedparticularlyduringtheeldexplorationphasetomoveandrepositionlargemobiledrillingrigs.Platformsupplyvesselshavelargedeckareaswhichareusedforcarryingcargosorcontainersaswellasextensiveunder-decktankfacilitiesfortransportingliquidproductsincludingfueldrinkingwaterandspecialtyuidsusedindrillingandproduction.Thelargestsupplyvesselshavespeciallydesignedandcongureddeckareasforcarryinglargediameterpipetoremotesitesinsupportofmajorsubseapipelineconstructionprograms.AdditionallythesevesselsarecapableofperformingsurveyROVremoteoperatedvehicleandotherspecializedsupportservices.TakesdeliveryofthenewbuildvesselHighlandFortress.TakesdeliveryofthenewbuildvesselsHighlandNavigatorNorthMarinerHighlandCourageandHighlandBugler.AcquirestheSeftonSupporterandClwydSupporteraftermanagingthesevesselsforoversixyears.TakesdeliveryofthefourremainingnewbuildprogramvesselsHighlandEagleHighlandMonarchHighlandValourandHighlandEndurance.20012002200120031993AnnualReportCoverImage 1519582013Gulfseetconsistedprincipallyofsupplyvessels.Theobjectivewastoprovidethehighestlevelofservicewithmodernsafetechnologicallyadvancedequipmentespeciallytothemorestableproductionanddevelopmentactivitiesofthemajorinternationaloilcompanies.ANewGenerationBuilttoOrderGulfsnewlyconstructedvesselsrepresentedanewgenerationofsupplyvessels.TheHighlandPiperdeliveredin1996wasacompletelynewdesigntheUT755developedtobecost-effectiveinmeetingcurrentandprojectedroutineoffshorerequirements.Featuresofthisdesignwereadisproportionatelylargedeckareaandenhancedunder-deckcapacitieswhichweremadepossiblebyconcentratingtheforwardsuperstructurewithinthebowarealeavingtheentireparallelcargorailandmid-bodysectionsavailableexclusivelyforcargooperation.Tankcapacitieswerefurtherincreasedasaresultofconcentratedeffortstondandeliminateeverypossiblebelow-deckareaofunusedordeadspace.Inadditiontheworkingdeckenvironmentwasimprovedbythedeeperhullformandprovisionofafullyplatedcargorailinsteadofapipestructure.Thisbothprovidesaweatherbreakandispreferredbycraneoperatorswhodislikethepipestructure.SellstheSeaWhipSeaWitchandSeaConquestthreeoftheoldersmallershipsintheeet.Revenuesexceed200million.TakesdeliveryofColosoandTitanvesselsbuiltspecicallyforlong-termcontractswithPEMEXandthecompanysrstentryintotheMexicanmarket.EntersintoacontractthatpositionstwovesselsinEgyptforatleasttwoyears.2004200520042005enumberofdomesticcompaniesandthenumberofpeopleinvolvedinoilservicetodayisonlyafractionofwhatitoncewas.eremainingplayersarefewerbettercapitalizedhaveloweroperatingcostsaremorefocusedtechnicallyandtypicallyhavelargermarketsharethantheyoncehad.DavidButtersChairman1991HighlandPiper 16AHistoryofGulfMarkOffshoreTheUT755couldoperatemuchmoreefcientlythanpreviousdesignsrequiringonlytwo-thirdsthecargotooperatecost-effectively.ThesevesselsenabledthecompanytocontinuetheobjectiveofbuildingonitsstrengthsinservicingnichemarketsintheNorthSeaSoutheastAsiaandSouthAmerica.PeopleareacompanysmostvaluableresourceandGulfMarkhasalwaysemployedtheindustrystopprofessionals.Byusingastrictselectionprocesstochooseemployeesandthenprovidingthemwiththebesttrainingworkingconditionsandenvironmenttheestablishmentofanextraordinarystaffisassured.Thecrewshavebeenbackedbyatop-ightmanagementorganizationtestedbyyearsofleadershipexperienceinmarinevesseloperation.Vesselperformancesafetyandreliabilityareimprovedbyacrewsabilitytoworktogetherasateamandthecompanyhasemphasizedkeepingcrewstogether.Personnelturnoveriskepttoaminimumandonoccasionworkingunitshavebeentogethermorethanadecade.GulfMarkOshoreInc.BuiltforPerformanceWiththeheadingforthebusinessrmlyestablished1997markedthelastrestructuringofthecompany.Therewasapro-ratadistributiontoallstockholdersofthecompanysholdingsinthepubliclytradedoilservicecompanyEnergyVenturesInc.EVI.AlongwiththeEVIsharesstockholdersreceivedasimultaneousdistributionofsharestwonewforeachexistinginanewentitycalledGulfMarkOffshoreInc.whichsucceededtothemainoperationsofthecompanytheoffshoremarineservicesunit.TheerosioncontrolunitErconwasseparatedfromthenewentity.ThetransactionprovidedimprovedliquidityforthenewGulfMarksharesfurtherbroadenedthecompanysequitybasewiththeadditionofanumberofnewstockholdersandraisedapproximately34millioninnewequity.HasonevesselworkinginAustraliatwoinQataroneinWestAfricatwoinIndiatwointheBlackSeaoperatingfromTurkey.SellstwooldervesselsHighlandPatriotandSentinel.Revenuesexceed300million.Revenuesexceed250million.Increasesthesharebaseinthecompanyby2millionshares.200520062007200620061997AnnualReportCoverImage 1719582013OntheleadershipfrontBruceStreeterwhohadbeenwiththecompanysince1990wasnamedPresident.AGrowingFleetGulfMarkseethascontinuedtogrow.Aconstructionprogramthatwascompletedin1999providedexpansionofactivityintoBrazilanentryintoWestAfricaandtherstcontractforamodernplatformsupplyvesselPSVinAsia.Aprograminitiatedin2000addedninenewvessels.Aprogramlaunchedin2006addedtwovesselstotheNorthSeaoperationsin2007andtenvesselstoSoutheastAsiaby2008.WiththeacquisitionofRigdonMarinein2008GulfMarkownedandmanagedmorethan90technologicallysophisticatedhighspecicationvessels.In2011GulfMarklaunchedaprogramtoaddsevenoftheworldsmostadvancedPSVstotheeet.Thelastofthenewlyorderedvesselsisscheduledfordeliveryin2015.Mr.ButtersnotedRatherthanmerelybuyingmorevesselswereinvestingincraftthatsetthestandardsfortechnologyandefciencywideningmarginsforourselvesandourclients.Operatingmodernequipmentwithnewertechnologiesprovidesrealbenets.ForexampletherehavebeenseveralupanddowncyclesintheindustryandGulfMarkwasaffectedbythe1999-2000downcyclehoweveritsnewerhightechnologyvesselsmaintainedahigherlevelofutilizationandrevenuelevelsabovethoseofolderlesssophisticatedvessels.ForinstancetheHighlandGuidecompletedatwo-yearcontractinIndonesia.Thisvesseldemonstratedtheefciencieswhichmodernequipmentcanbringtothisregionasitreplacedanumberofoldervesselsinsupplyingthedrillingrigsandplatformsforthecustomer.Marketcapitalizationexceeds1billion.SeaSupporterisplacedintoservice.CompanybecomeslistedontheNewYorkStockExchangeGLF.AcquiresRigdonMarine.2007200720072008Weintendtobeanaggressiveanddynamicparticipantintheoshoreenergymarketofthefuture.edemandforoshoremarineservicesshouldcontinueoverthelongtermastheworldsrequirementsforenergyaccelerateandcompaniesexplorefartheranddeeperoshore.Webelieveweareverywellpreparedandpositionedtobenetfromthesearchforoilandgasaroundtheglobenowandinthefuture.BruceStreeterPresidentCEO2008 18AHistoryofGulfMarkOffshoreWeatheringtheFinancialStormIn2008astheenergymarketcontinuedtobeaffectedbytheupheavalinthenancialmarketsGulfMarkcontinuedtofocusonstrengtheningitsbalancesheetandsecuringthefuturecontractpositionoftheeet.Mr.StreetercommentedWerealizethatthisisnotatimeforunwarrantedexposureandrisk.Wecontinuetopracticedisciplinedcostcontrolandmanagementofmarketriskthroughabalanceofshort-andlong-termcharters.Wehavealwaysfocusedonstabilityofourearningstoensurewemeetourcapitalrequirements.Weintendtobeanaggressiveanddynamicparticipantintheoffshoreenergymarketofthefuture.Thedemandforoffshoremarineservicesshouldcontinueoverthelongtermastheworldsrequirementsforenergyaccelerateandcompaniesexplorefartheranddeeperoffshore.Webelieveweareverywellpreparedandpositionedtobenetfromthesearchforoilandgasaroundtheglobenowandinthefuture.In2012thecompanysoldvesmallervesselsduringtheyeargenerallymovingtowardlargermulti-capablecraftthatgeneratehigherdayrates.AsistypicalforGulfMarkextensivemaintenanceandupgradeprogramsenabletheshipstosellformorethantheiroriginalcost.Continuedinvestmentintheverybesthullsandtechnologiesmeansthecompanycancontinuetoattracttheindustrystopocean-goingtalent.Thiswilladdtoitsalreadyhighcrewretentionrates.In2013BruceStreeterretiredfromthecompanyafter23yearsofserviceincludingpositionsasPresidentChiefExecutiveOfcerandBoardmember.FormerExecutiveVicePresidentandChiefFinancialOfcerQuintinKneenwasnamedPresidentandChiefExecutiveOfcer.EquippedforSuperiorPerformanceRegardlessofthetypeofvesselonorderGulfMarkOffshoreworkstoensurethatitispurpose-builttoperformitsjobwithamaximumofeffectivenessandaminimumofcostandtime.MuchofitseetconsistsRevenuesexceed400million.NorthPurposeSeaValiantSeaVictorandThomasWainwrightareplacedintoservice.HighlandPrinceSeaCherokeeSeaComancheSwordshBlacktipandTigerareplacedintoservice.SellstheHighlandPioneer.2008201020092011Wereworkingtoensurethatoureetof70ownedGulfMark-aggedvesselsremainsamongtheyoungestandmosttechnologicallyadvancedeetsintheindustrythusensuringthatGulfMarkcancontinuetoprovidemaximumperformanceinallclimatesaroundtheworld.QuintinKneenPresidentCEO2013 1919582013ofthelargertypeofopen-oceancraftthatoilandgasproducerswillneedastheyventurefartheroffshoreintodeeperwaterandintoever-harsherenvironments.Mr.KneensaidOurinternaldesignstaffisresponsibleforanumberofourowninnovationscontinuallyexploringwaystohelpourcustomersdotheirjobswithgreaterefciencyandlowercost.Forexamplemaximizingthesizeoffuelanddrillingmudtanksanddesigningself-cleaningtankscankeepGulfMarkvesselsatsealongeroptimizingonsiteperformancebyreducingthenumberoftripstoshoreforresupply.FromplatformsupplyvesselsPSVsanchor-handlingtugsAHTsandfastsupplyvesselsFSVstomultipurposespecialtyvesselsMPSVswereworkingtoensurethatoureetof70ownedGulfMark-aggedvesselsremainsamongtheyoungestandmosttechnologicallyadvancedeetsintheindustrythusensuringthatGulfMarkcancontinuetoprovidemaximumperformanceinallclimatesaroundtheworld.AsproducersexploretoughnewproductionenvironmentssuchastheFalklandIslandstheeastcostofAfricatheIndianOceanandtheBarentsSeaGulfMarkslargerruggedlybuiltvesselsarethetypescustomersneedtosupportvarioustypesofoffshoreprojects.Mr.KneenconcludedWehaveidentiedandarecommittedtofullysupportingvemajorinitiativesthatwillgiveourcustomersoffshoresupportanywhereandunderalmostallconditionsOperatingefciency.Safetyandtraining.Reducingourenvironmentalfootprintwhereverwework.Implementingcontinuousimprovementplans.Buildinglong-termrelationsbasedonethicsintegrityandtrust.Wewillcontinuetoseekopportunitiesinthosegeographicareaswherecustomersneedourequipment.Webelievethiswillleadtocontinuedgrowthinearningscashowandshareholdervalue.Launchesanewvesselprogramtoconstructsevenstate-of-the-arthighperformanceships.GeneLeechretires.Hejoinedthecompanyin1990andservedasitsrstVicePresident-Operations.QuintinKneenisnamedPresidentandChiefExecutiveOfcer.Sellsvesmalleroldervessels.BruceStreeterretires.20112012201320122013123452012AnnualReportImage AWorldofPossibilities.FormorethanfivedecadesthemanagementandemployeesofGulfMarkhavesuccessfullynavigatedthecompanytodestinationsthatbecamepartofagranderjourney.Thecompanyhasaproudhistoryofsoundbusinesscorporateresponsibilitymeetingcustomerneedsandincreasingshareholdervalue.Todaythecompanyispoisedforevengreatersuccessasthevoyagecontinues.GulfMarksperformanceisdrivenbypowerfulattributesAlargeversatilefleetofyoungtechnologicallyadvancedvessels.Solidmarketpositionsinthemostactiveoffshorepetroleumfields.Strongcustomerrelationships.1700skilledseasonedandwell-trainedcrewmembers.200dedicatedandprofessionalon-shoreemployees.Visionaryengagedmanagement.Alookbackprovidesaglimpseofwhatliesahead.ForGulfMarkOffshorethehorizonsareunlimited. GulfMarkOffshoreInc.842WestSamHoustonParkwayNorthSuite400HoustonTX77024T7139639522F7139639796www.gulfmark.comCopyright2013GulfMarkOffshore.Allrightsreserved.