Re vi e w of Op e ra tio n s Fighting Through All Challenges With an average age of just over five years, our new vessels represent  approximately 43% of our total fleet. This percentage will continue to grow as we have 36 additional vessels due to enter the fleet over the next two and a half years at a total expected  investment of $742 million. Based on these future vessel deliveries, along with the continued disposal of our mature fleet, we anticipate the average age of Tidewater’s entire fleet declining by 20% over the next two years.  Core principles of our strategic plan call for Tidewater to maintain a solid balance sheet, utilize our  cash flow to renew our fleet, return  surplus capital to our shareholders and remain ready to capitalize on business expansion opportunities  if the price, quality of assets and  timing are right. We continue to  evaluate these principles and find little need to revise or deviate  from them. The significance of our fleet  renewal program is becoming clear. In fiscal 2010, our new  vessels contributed about 74% of the company’s total vessel cash operating margin. In the fourth quarter of fiscal 2010, these newer, larger and more capable vessels contributed about 88% of our vessel cash operating margin, and we believe that this new fleet will be the principal prospective While executing on these principles may appear to  some as mundane, we find that most mistakes made in a capital-intensive, cyclical industry such as ours are made by  investing at the wrong time and/or by overpaying for those investments. As our record has shown, we have been  successful in positioning our vessels in geographic markets where employment opportunities are high, and in not overpaying, to date, for our investments. This approach has translated into strong cash flows that we have used to renew our fleet’s capabilities while avoiding the use of large amounts of debt. At the same time, we have continued to pay one of the highest dividends among companies engaged in the oilfield service industry, which driver of Tidewater’s revenues, earnings and cash flows. The new vessels are in greater demand by our customers, tend to realize substantially higher utilization rates (30 percentage points higher than the mature vessels in fiscal 2010) and they generally earn higher average day rates. Last year marked a significant achievement for  Tidewater as the company operated for the entire year without any lost time accidents. Given the nature of our work and the conditions in which we are asked to work, this  is a major achievement. Overall, the company’s 0.13 total recordable incident rate (TRIR) beat our target and, along  with our no lost time accidents, marks our best overall  safety performance in company history.  Rou n d 6