UPDATE 2-Trico Marine shares surge on contract win, asset sale

* Says wins subsea contracts worth $25 mln * Says closes
sale of subsea vessel for $16 mln * Shares up as much as 46
(Recasts; adds details, analyst comments, updates share

By Thyagaraju Adinarayan

BANGALORE, April 14 (BestGrowthStock) – Oil field services company
Trico Marine Services Inc (TRMA.O: ) said it won over $25 million
of subsea contracts for projects in the North Sea, and sold one
of its vessels, sending its shares up as much as 46 percent.

Trico Marine Services’ subsea services and subsea
protection divisions, involving DeepOcean and CTC Marine, were
awarded the new subsea contracts, the company said in a

The company also said it sold one of its vessels for about
$16 million to a buyer in Asia, taking the total proceeds to
$20 million from asset sale since the beginning of this year.

The asset sale will help Trico Marine Services, which has a
liquidity crunch, CRT Capital Group analyst Amer Tiwana told

“The 20 million asset sale will definitely help the company
in getting enough runway in 2010.”
Trico Marine said it expects to use the proceeds from the
assets sale to repay debt.

“As previously indicated, the levels of tendering activity
we are seeing within DeepOcean and CTC Marine lead us to be
cautiously optimistic for our subsea outlook from the second
quarter in 2010 and beyond,” Trico Marine Group’s Chief
Executive Compofelice said.

However, analyst Tiwana believes the contract win will not
be meaningful to the company’s immediate future but will add to
earnings in the latter part of this year.

Analysts on average expect the company to sequentially
narrow down its losses over the second and third quarters, from
the first quarter, according to Thomson Reuters I/B/E/S.

Shares of the company were trading up 27 percent at 2.90.
They touched a high of $3.35 earlier in the day.

About 4 million shares changed hands by 1810 GMT, about 10
times their 10-day moving average volume.

Stock Market Money

(Reporting by Thyagaraju Adinarayan; Editing by Unnikrishnan

UPDATE 2-Trico Marine shares surge on contract win, asset sale