Question-and-Answer Session
Operator
Thank you. (Operator instructions) Our first question from Jim Rollyson.
Jim Rollyson
Good morning, guys.
John Clerico
Good morning, Jim.
Peter Atkinson
Good morning.
Jim Rollyson
Excellent rebound. John, you talked about West Africa and the fact that you’re wrapping up some work there and going to close things down for now because there’s not a lot of work. Obviously that region contributed quite a bit to the first quarter profitability. Thoughts going through the rest of the year on whether or not you’ve got opportunities elsewhere to replace that? Just kind of how you’re thinking.
John Clerico
In the near term, I don’t think it’s going to be a problem replacing the lost revenue from West Africa. But longer term, it’s obviously an issue. I commented on that a little bit in my backlog comments, and we had some problems in West Africa. But as you could see from the quarter’s results, we had solid profitability as we finished up the work, and man, I wish we had more.
Jim Rollyson
Obviously in the Gulf, Peter you mentioned the OCD segment was a negative number, and I think you mentioned part of that was idle vessel time, the Hercules, Sea Constructor, et cetera. As you go into what’s normally the high season, it looks like you’ve got the Hercules scheduled to work for Shell. Kind of status update on how work is progressing otherwise, and if you expect to get back to profitability there.
Peter Atkinson
As we mentioned, we’re starting to see quite an interest, a lot of inquiries for salvage work in the Gulf. We’re also starting to see some inquiries for pipeline work in the Gulf. We do expect to see the activity pick up as we go into the second and third quarters, which are traditionally the best quarters in the Gulf of Mexico.
Jim Rollyson
Do you think you’ll get back to the black in there in that segment, with what you see?
Peter Atkinson
That’s what we’re trying to.
Jim Rollyson
Perfect, and then the last one for me, maybe guys a status kind of update on where the new builds stand?
Peter Atkinson
The new build’s on schedule. The direction of the hull blocks is slightly ahead of schedule. We’ve had several meetings with the Keppel and with all the owner-furnished equipment vendors, and that is on schedule for delivery in April of 2010.
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