North Sea helps GulfMark Offshore profits boost
Improved day rates in North Sea and Asian regions plus sale of vessel make record profits

GulfMark Offshore, Inc. (Nasdaq:GMRK) today announced net income of $24.4 million on revenue of $65.5 million for the quarter ended March 31, 2007, which represents a record first quarter in the company's history.

This compares to net income of $6.3 million on revenue of $47.7 million for the first quarter of 2006. The improvement is directly related to improved day rates in both the North Sea and Southeast Asia regions.

The sale of the North Prince, a vessel operating in the North Sea region, contributed $5.0 million to these results. Excluding the gain on the sale of the vessel, net income would have been $19.4 million, more than double the earnings from the first quarter of 2006.

Operating income for the three months ended March 31, 2007 was $27.4 million, compared to $10.2 million for the same period in 2006. The increase in operating income for the quarter was primarily driven by the 37% increase in revenues from period to period, the gain on sale of the North Prince and improved operating margins. This is offset somewhat by higher operating cost related to planned dry docks in the first quarter.

Bruce Streeter, President and CEO of the Company, commented, "First quarter results are particularly noteworthy compared to our previous record quarters considering it contained fewer available operating days, generally has the largest impact from seasonality and had a higher number of completed drydocks. Our earnings are a reflection of the continued strong demand in all our market areas, particularly the North Sea and Southeast Asia regions. The addition of the two new vessels in Southeast Asia in the latter part of 2006 and the delivery of the Highland Prestige in the North Sea on April 4, 2007 have enhanced our capability to meet the growing demands of our customers. Three additional vessels should arrive in 2007, one in the North Sea in the fourth quarter and two in Southeast Asia during the third and fourth quarter, respectively.

"Our contract cover for the remainder of 2007 and beyond remains strong. We expect demand for vessel services to stay healthy in all of our markets in the near term which will help continue to provide improved cash flow. As we further develop our fleet through the new build program, we continue to enhance our earnings potential for the future."

GulfMark Offshore, Inc. provides marine transportation services to the energy industry through a fleet of sixty (61) offshore support vessels, primarily in the North Sea, offshore Southeast Asia, and the Americas.