John Rogers (D.A. Davidson): Do you have capacity to put at the market in Asia and the Middle East?

Mike Taff: If you look at our bids outstanding, the majority of those would be in those two hot markets.

Joe Agular (Johnson Rice): Is the $6 billion of focus projects, outside of the $3 billion bids you have standing?

Mike Taff: Yes, it is outside the bids.

Joe Agular (Johnson Rice): Any mega projects in there or just a lot of similar size wins?

Bruce Wilkinson: There are a number of big ones. It is very much the Mid East and Asia, where the center of this universe has moved to. And when you look a little further out, you have to think in terms where we think we are nearing the tail end of the long lull of the Gulf of Mexico.

We see the offshore market for Gulf both the U.S. and Mexican sector to be coming back late 2008, and 2009, and beyond. And also in this present environment for us, our work in the Caspian is almost totally now in the marine sector, where the large fabrication work that we did in Azerbaijan has essentially been completed and the whole world is watching Kazakhstan get it''s act together and things sorting out there.

Joe Agular (Johnson Rice): Are you confident that you can fill up your new yard in Mexico, as well as Louisiana?

Bruce Wilkinson: We have started out in a modest approach by optimizing rolling capacity we have in Morgan City, not do that in Mexico initially, and then assemble and ship across from Louisiana that which we had rolled and began to fabricate there.

Over time, both Morgan City and the Mexican operation will be utilized for projects in both sectors of the Gulf, U.S. sector and the Mexican sector.
Joe Agular (Johnson Rice): Is the growth in China as a potential source of income likely to continue?

Bruce Wilkinson: There is no sign of slowdown in the China market, sometimes we generate royalty income and other times we generate project income, depending on whether it is an export product out of China, or whether it''s for the Chinese market.

Joe Gibney (Capital One Southcoast): Any comments relative to PEMEX in terms of improving their infrastructure offshore?

Bruce Wilkinson: We have very good direct dialog with them on their project developments. We are going to be on the list, not only for fabrication, but for marine work as well.

We historically did only marine work and no fabrication, and we did the marine work through a joint venture, which was not always a smoothly operating joint venture. So we are very optimistic about a longer-term larger roll with PEMEX.

Joe Gibney (Capital One Southcoast): On the Aramco project., are you satisfied with the pace of work to date?

Bruce Wilkinson: We are pleased with what is going on to date. We have improved our operating margin on shallow water jackets in the Arabian Gulf.

Jeff Spatel (Natixis Bleichroeder): In terms of the $3 billion in bids outstanding and the $6 billion of focus projects, what could potentially impact 2008 in terms of revenue?

Bruce Wilkinson: Most of that would be beyond 2008.

Sam Nicholls (Quillen Securities): On equity in income from investments, is the reported amount sustainable?

Bruce Wilkinson: It would be sustainable, but it''s going to be lumpy.