SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                   ----------

                                    FORM 10-K

                        FOR ANNUAL AND TRANSITION REPORTS
                     PURSUANT TO SECTIONS 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934
    (Mark One)

         [X]      ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
                  SECURITIES EXCHANGE ACT OF 1934

                   For the fiscal year ended   December 31, 1999
                                              ---------------------------------

                                       OR

         [ ]      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
                  SECURITIES EXCHANGE ACT OF 1934

       For the transition period from _______________ to ________________


                         Commission file number 1-12289
                                                -------

                                SEACOR SMIT INC.
                                ----------------
             (Exact name of Registrant as Specified in Its Charter)


           Delaware                                      13-3542736
           --------                                      ----------
(State or Other Jurisdiction of             (I.R.S. Employer Identification No.)
 Incorporation or Organization)


11200 Richmond Avenue, Suite 400, Houston, Texas                   77042
- ------------------------------------------------                   -----
(Address of Principal Executive Offices)                        (Zip Code)


Registrant's telephone number, including area code       (713) 782-5990
                                                         --------------

Securities registered pursuant to Section 12 (b) of the Act:

        Title of Each Class            Name of Each Exchange on Which Registered
        -------------------            -----------------------------------------

      Common Stock, par value                    New York Stock Exchange
      $.01 per share


Securities registered pursuant to Section 12 (g) of the Act:

                                      None
- --------------------------------------------------------------------------------
                                (Title of Class)

       Indicate by check mark whether the registrant (1) has filed all reports
       required to be filed by Section 13 or 15 (d) of the Securities Exchange
       Act of 1934 during the preceding 12 months (or such shorter period that
       the registrant was required to file such reports), and (2) has been
       subject to such filing requirements for the past 90 days. [X] Yes  [ ] No

       Indicate by check mark if disclosure of delinquent filers pursuant to
       Item 405 of Regulation S-K is not contained herein, and will not be
       contained, to the best of registrant's knowledge, in definitive proxy or
       information statements incorporated by reference in Part III of this Form
       10-K or any amendment to this Form 10-K. [X]

       The aggregate market value of the voting stock of the registrant held by
       non-affiliates as of March 24, 2000 was approximately $582,147,000. The
       total number of shares of Common Stock issued and outstanding as of March
       24, 2000 was 11,206,436.

                       DOCUMENTS INCORPORATED BY REFERENCE

       The Registrant's definitive proxy statement to be filed with the
       Commission pursuant to Regulation 14A within 120 days after the end of
       the Registrant's last fiscal year is incorporated by reference into Items
       10 through 13, Part III of this Annual Report on Form 10-K.


                                SEACOR SMIT INC.
                                    FORM 10-K
                                TABLE OF CONTENTS

                                     PART I

          
                                                                                                      Page
Item 1.       Business..............................................................................    1
              Offshore Marine Services..............................................................    2
              Environmental Services................................................................    7
              Drilling Services.....................................................................    9
              Other Investments.....................................................................   12
              Employees.............................................................................   12
              Glossary of Selected Offshore Marine Industry Terms...................................   13

Item 2.       Properties............................................................................   14

Item 3.       Legal Proceedings.....................................................................   14

Item 4.       Submission of Matters to a Vote of Security Holders...................................   14

Item 4A.      Executive Officers of the Registrant..................................................   14

                                                      PART II

Item 5.       Market for Registrant's Common Equity and Related Stockholder Matters.................   16

Item 6.       Selected Financial Data...............................................................   17

Item 7.       Management's Discussion and Analysis of Financial Condition and
                  Results of Operations.............................................................   18
              Offshore Marine Services..............................................................   18
              Environmental Services................................................................   20
              Drilling Services.....................................................................   21
              Results of Operations.................................................................   22
              Liquidity and Capital Resources.......................................................   27

Item 8.       Financial Statements and Supplementary Data...........................................   33

Item 9.       Changes in and Disagreements with Accountants on Accounting and
                  Financial Disclosure..............................................................   33

                                                      PART III

Item 10.      Directors and Executive Officers of the Registrant....................................   34

Item 11.      Executive Compensation................................................................   34

Item 12.      Security Ownership of Certain Beneficial Owners and Management........................   34

Item 13.      Certain Relationships and Related Transactions........................................   34

                                                      PART IV

Item 14.      Exhibits, Financial Statement Schedules, and Reports on Form 8-K......................   36





        When included in this Annual Report on Form 10-K or in documents
        incorporated herein by reference, the words "expects," "intends,"
        "anticipates," "believes," "estimates," and analogous expressions are
        intended to identify forward-looking statements. Such statements
        inherently are subject to a variety of risks and uncertainties that
        could cause actual results to differ materially from those projected.
        Such risks and uncertainties include, among others, general economic and
        business conditions, industry fleet capacity, changes in foreign and
        domestic oil and gas exploration and production activity, competition,
        changes in foreign political, social and economic conditions, regulatory
        initiatives and compliance with governmental regulations, customer
        preferences and various other matters, many of which are beyond the
        Company's control. These forward-looking statements speak only as of the
        date of this Annual Report on Form 10-K. The Company expressly disclaims
        any obligation or undertaking to release publicly any updates or any
        change in the Company's expectations with regard thereto or any change
        in events, conditions, or circumstances on which any statement is based.

        ITEM 1.      BUSINESS

        GENERAL

        The Company is a major provider of offshore marine services to the oil
        and gas exploration and production industry, is one of the leading
        providers of oil spill response services to owners of tank vessels and
        oil storage, processing, and handling facilities, and owns a majority
        equity interest in companies that own and operate mobile offshore jackup
        drilling rigs.

        The Company's offshore marine service business operates a diversified
        fleet of vessels principally through wholly owned, majority owned, and
        50% or less owned subsidiaries, many of which have been organized to
        facilitate vessel acquisitions and various financing transactions in
        connection therewith and to satisfy foreign and domestic vessel
        certification requirements. The Company's vessels are primarily
        dedicated to servicing offshore oil and gas exploration and production
        facilities mainly in the U.S. Gulf of Mexico, offshore West Africa, the
        North Sea, the Far East, Latin America, and the Mediterranean. The
        Company's offshore marine fleet, including owned, chartered-in, joint
        ventured, pooled, and managed vessels, delivers cargo and personnel to
        offshore installations, handles anchors for drilling rigs and other
        marine equipment, supports offshore construction and maintenance work,
        and provides standby safety support and oil spill response services. The
        Company may also from time to time furnish vessels for special projects
        such as well stimulation, seismic data gathering, salvage, freight
        hauling, and line handling. In connection with its offshore marine
        services, the Company offers logistics services, which include
        shorebase, marine transport, and other supply chain management services
        in support of offshore exploration and production operations.

        The Company's environmental service business provides contractual oil
        spill response and other professional services to those who store,
        transport, produce, or handle petroleum and certain non-petroleum oils
        as required by the Oil Pollution Act of 1990, as amended ("OPA 90"), and
        various state regulations. The Company's environmental services,
        provided primarily through its wholly owned subsidiaries, National
        Response Corporation ("NRC"), International Response Corporation
        ("IRC"), and ERST/O'Brien's Inc. ("ERST"), include training, consulting
        and supervision for emergency preparedness, response and crisis
        management associated with oil or hazardous material spills, fires, and
        natural disasters, and the maintenance of specialized equipment for
        immediate deployment in response to spills and other events. NRC has
        acted as the principal oil spill response contractor on several of the
        largest oil spills that have occurred in the United States since the
        enactment of OPA 90.

        The Company owns a 58.3% membership interest in Chiles Offshore LLC, a
        Delaware limited liability company ("Chiles Offshore"), that was formed
        for purposes of constructing, owning, and operating mobile offshore
        drilling rigs. Since inception in 1997 and until July 1999, Chiles
        Offshore operated as a development stage company, devoting substantially
        all its efforts to constructing two state-of-the-art premium jackup
        offshore drilling rigs (each a "Rig" and together, the "Rigs"), raising
        capital, and securing contracts for the Rigs. The first Rig, the Chiles
        Columbus, entered service in June 1999. The second Rig, the Chiles
        Magellan, entered service in November 1999. References herein to
        "Chiles" shall mean Chiles Offshore together with its wholly owned
        subsidiaries, Chiles Columbus LLC and Chiles Magellan LLC (the "Rig
        Owners"), both of which are Delaware limited liability companies and
        owners of the Chiles Columbus and Chiles Magellan, respectively.

        Unless the context indicates otherwise, any reference in this Annual
        Report on Form 10-K to the "Company" refers to SEACOR SMIT Inc.,
        incorporated in 1989 in Delaware, and its consolidated subsidiaries,
        "SEACOR" refers to SEACOR SMIT Inc., and "Common Stock" refers to the
        common stock, par value $.01 per share, of SEACOR. SEACOR's principal
        executive offices are located at 11200 Richmond Avenue, Suite 400,
        Houston, Texas 77082, where its telephone number is (713) 782-5990.
        Certain industry terms used in the description of the Company's offshore
        marine business are defined or described under "Glossary of Selected
        Offshore Marine Industry Terms" appearing at the end of this Item 1.


                                       1

        OFFSHORE MARINE SERVICES

        GEOGRAPHIC MARKETS SERVED

        The operations of the Company's offshore marine service business are
        concentrated in five geographic regions of the world. The table below
        sets forth, at the dates indicated, the number of vessels owned,
        bareboat chartered-in, and managed by the Company and vessels operated
        through its joint ventures and pooling arrangements in each of those
        regions.



                                                                               At December 31,
                                                      ---------------------------------------------------------
                 Geographic Market                           1997               1998               1999
- ----------------------------------------------------- ------------------- ----------------- -------------------
Domestic, principally the U.S. Gulf of Mexico.....              195                 177               181
                                                      ------------------- ----------------- -------------------
                                                                                   
Foreign:
    Offshore West Africa..........................               31                  39                30
    North Sea.....................................               31                  28                24
    Far East......................................               17                  14                13
    Latin America.................................               20                  34                32
    Other Foreign.................................               12                  15                14
                                                      ------------------- ----------------- -------------------
        Total Foreign.............................              111                 130               113
                                                      ------------------- ----------------- -------------------
           Total Fleet............................              306                 307               294
                                                      =================== ================= ===================


        DOMESTIC. The Company is a major provider of offshore marine services to
        the oil and gas exploration and production industry that operates
        primarily in the U.S. Gulf of Mexico. In support of exploration
        activities, the Company utilizes its supply, towing supply, anchor
        handling towing supply, and crew vessels; whereas, in production support
        activities, the Company employs its utility as well as crew vessels. The
        Company also operates or bareboat charters-out specially equipped
        vessels that provide well stimulation, seismic data gathering, oil spill
        response, and freight services.

        At December 31, 1999, the Company owned and operated 41 of approximately
        374 supply, towing supply, and anchor handling towing supply vessels and
        137 of approximately 385 crew and utility vessels currently operating in
        the U.S. Gulf of Mexico. At December 31, 1999, the Company also owned 1
        utility vessel that was bareboat chartered-out to an environmental
        service segment joint venture and 2 vessels providing seismic and
        freight services. Twenty-one vessels in the Company's domestic fleet,
        including 11 supply, 5 crew, 3 towing supply, and 2 anchor handling
        towing supply, are bareboat chartered-in under leases that expire at
        various times between 2000 and 2004 and contain purchase and lease
        renewal options.

        OFFSHORE WEST AFRICA. The Company is one of the largest offshore marine
        operators serving the West African coast, and at December 31, 1999, it
        owned 28 (including 3 bareboat chartered-out) and bareboat chartered-in
        2 of approximately 225 offshore support vessels working in this region.
        Competition is more concentrated in this market than in the U.S. Gulf of
        Mexico in that 9 companies operate most of the vessels currently active
        in the region. The need for offshore support vessels in this market is
        primarily dependent upon multi-year offshore oil and gas exploration and
        development projects and production support.

        NORTH SEA. The Company provides standby safety, supply, and towing
        supply vessel services to customers in the North Sea. At December 31,
        1999, there were approximately 140 vessels certified to provide standby
        safety services in the North Sea, and the Company owns and operates 11
        of those vessels. The Company or its managing agent, under pooling
        arrangements with U.K. companies, markets 8 additional standby safety
        vessels. See "Joint Ventures and Pooling Arrangements." Demand in this
        market for standby safety service developed in 1991 after the United
        Kingdom promulgated increased safety legislation requiring offshore
        operations to maintain higher specification standby safety vessels. The
        legislation requires a vessel to "stand by" to provide a means of
        evacuation and rescue for platform and rig personnel in the event of an
        emergency at an offshore installation. The Company believes that it was
        one of the first companies to convert offshore support vessels for use
        as standby safety service vessels.

        On February 9, 2000, the Company announced that it signed a letter of
        intent to acquire all of the issued share capital of Putford Enterprises
        Ltd. and associated companies (collectively "Boston Putford"). Pursuant
        to this letter of intent, Boston Putford's standby safety vessels,
        certain joint venture interests and vessels, and fixed assets would be
        acquired. Boston Putford's standby safety fleet, including vessels held
        in joint ventures but excluding vessels managed for third parties,
        consists of 18 vessels operating primarily in the southern U.K. sector
        of the North Sea. The Company expects to consolidate its standby safety
        services in the U.K. sector of the North Sea into the Boston Putford
        operations following completion of its acquisition of Boston Putford.

        Also, at December 31, 1999, the Company operated 5 of approximately 220
        offshore support vessels working in the North Sea. Two towing supply and
        1 supply vessel were working on the Netherlands' Continental Shelf and 2
        supply vessels were employed in the U.K. sector.


                                       2

        FAR EAST. At December 31, 1999, 7 owned, 2 bareboat chartered-in, and 1
        managed vessel of the Company and 3 vessels owned by joint venture
        corporations in which the Company has an equity interest, operated in
        this region, including 6 anchor handling towing supply, 5 towing supply,
        and 2 crew vessels. See "Joint Ventures and Pooling Arrangements." At
        December 31, 1999, there were approximately 281 offshore support vessels
        owned by approximately 20 companies supporting exploration, production,
        construction, and special project activities in approximately 16
        countries in the Far East.

        LATIN AMERICA. The Company provides offshore marine services in Latin
        America for both exploration and production activities. At December 31,
        1999, 19 of the Company's 32 vessels in this region were based in
        Mexican ports, and the remaining fleet was based in ports in Chile,
        Brazil, Venezuela, Trinidad, St. Croix, Barbados, and Argentina. Joint
        venture corporations in which the Company holds an equity interest owned
        20 of its Latin American vessels and bareboat or time chartered-in an
        additional 9 vessels, 7 from the Company and 2 from outside sources. See
        "Joint Ventures and Pooling Arrangements." Two additional Latin American
        offshore support vessels owned by the Company were bareboat
        chartered-out to a Brazilian customer, and 1 offshore support vessel was
        operated by the Company's environmental service segment in support of
        oil spill response activities in St. Croix.

        Operating conditions in Mexico are, in many respects, similar to those
        in the U.S. Gulf of Mexico; however, demand for offshore support vessels
        in Mexico historically has been affected to a significant degree by
        Mexican government policies, particularly those relating to Petroleos
        Mexicanos ("PEMEX"), the Mexican national oil company. At December 31,
        1999, there were approximately 165 offshore support vessels, including
        tugs and barges, operating in the Mexican offshore market.

        OTHER FOREIGN. The Company provides offshore marine services in various
        other foreign regions. At December 31, 1999, the Company's 14 Other
        Foreign vessels were based in ports in Egypt, the United Arab Emirates,
        Greece, Tunisia, and France. Of these vessels, joint venture
        corporations in which the Company holds an equity interest owned 10, and
        the Company bareboat chartered-in 1 and owned 3, including 1 bareboat
        chartered-out. See "Joint Ventures and Pooling Arrangements."

        FLEET

        The offshore marine service industry supplies vessels to owners and
        operators of offshore drilling rigs and production platforms. Two of the
        largest groups of offshore support vessels that the Company operates are
        crew boats, which transport personnel and small loads of cargo when
        expedited deliveries are required, and utility boats, which support
        offshore production by delivering general cargo and facilitating infield
        transportation of personnel and materials. Two other significant classes
        of vessels operated by the Company are towing supply and anchor handling
        towing supply vessels. These vessels have more powerful engines and deck
        mounted winches and are capable of towing and positioning offshore
        drilling rigs as well as providing supply vessel services. The Company
        also operates supply vessels, which transport drill pipe, drilling
        fluids, and construction materials, and special service vessels, which
        support well stimulation, seismic data gathering, line handling, freight
        hauling, oil spill response, salvage, and standby safety. As of December
        31, 1999, the average age of the Company's owned offshore marine fleet
        was approximately 14.1 years. Excluding the Company's standby safety
        vessels, the average age of the Company's fleet was approximately 13.7
        years.

        The following table sets forth, at the dates indicated, certain summary
        fleet information for the Company. For a description of vessel types,
        see "Glossary of Selected Offshore Marine Industry Terms" at the end of
        this Item 1.



                                                                       At December 31,
                                                      ---------------------------------------------------
                  Type of Vessels                          1997            1998              1999
- ----------------------------------------------------- --------------- ---------------- ------------------
                                                                              
Crew..............................................               83              82               81
Utility and Line Handling.........................               86              83               81
Supply and Towing Supply..........................               75              81               80
Anchor Handling Towing Supply.....................               37              34               30
Standby Safety....................................               22              23               19
Geophysical, Freight, and Other...................                3               4                3
                                                      --------------- ---------------- ------------------
  Total Fleet.....................................              306             307              294(1)
                                                      =============== ================ ==================


        ------------
               (1)   Includes 222 offshore support vessels owned by the Company
                     and 72 offshore support vessels that are not owned by the
                     Company. Of the 72 offshore support vessels that are not
                     Company owned, 33 are owned by joint venture corporations
                     in which the Company has an equity interest, 8 are operated
                     under pooling arrangements with Company owned vessels, 29
                     are chartered-in or managed by the Company, and 2 are
                     chartered-in by the TMM Joint Venture, as hereinafter
                     defined, for use in their operations.

        Since 1994, vessel acquisition transactions and investments in joint
        ventures that have significantly increased the size of the Company's
        fleet include: (i) 127 utility, crew, and supply vessels acquired in a
        1995 transaction (the "Graham Transaction") with John E. Graham & Sons
        and certain of its affiliated companies (collectively "Graham"), (ii) 11
        towing and anchor handling towing supply vessels acquired pursuant to
        transactions in 1995 and 1996 (the "1995 and 1996 CNN Transactions")
        with Compagnie Nationale de Navigation ("CNN"), a French corporation,


                                       3

        (iii) 41 crew and utility vessels acquired in a 1996 transaction (the
        "McCall Transaction") with McCall Enterprises, Inc. and its affiliated
        companies (the "McCall Companies"), (iv) 28 anchor handling towing
        supply, supply, and towing supply vessels acquired and equity
        investments in joint ventures that owned 21 anchor handling towing
        supply and towing supply vessels pursuant to a 1996 transaction (the
        "SMIT Transaction") with SMIT Internationale N.V. ("SMIT"), (v) 24
        utility, crew, and supply vessels acquired in a 1997 transaction (the
        "Galaxie Transaction") with Galaxie Marine Service, Inc. and affiliated
        companies ("Galaxie"), and (vi) 25 crew, anchor handling towing supply,
        supply, and utility vessels constructed for the Company during the three
        years ending December 31,1999. The vessels acquired in the Graham
        Transaction, the McCall Transaction, and the Galaxie Transaction and
        those constructed for the Company primarily support the oil and gas
        exploration and production industry in the U.S. Gulf of Mexico; whereas,
        vessels acquired in the 1995 and 1996 CNN Transactions and the SMIT
        Transaction are employed in foreign offshore support markets.

        At December 31, 1999, 2 crew and 1 anchor handling towing supply vessel
        were being constructed for the Company and are expected to enter
        service in 2000.

        The Company actively monitors opportunities to buy and sell vessels that
        will maximize the overall utility and flexibility of its fleet. The
        table below sets forth, during the fiscal years indicated, the number of
        offshore support vessels sold by type of service. At December 31, 1999,
        23 of those vessels, including 15 supply/towing supply, 5 crew, and 3
        anchor handling towing supply were bareboat chartered-in by the Company.



                       Type of Vessel                   1995        1996        1997         1998        1999        Total
         ------------------------------------------ ------------ ----------- ----------- ------------ ----------- -----------
                                                                                                
         Utility...................................         6           16           7           7            2          38
         Supply....................................         4            -          15           6            -          25
         Anchor Handling Towing Supply.............         1            -           5           8            1          15
         Crew......................................         1            -           2           5           11          19
         Towing Supply.............................         -            -           6           8            -          14
         Freight...................................         -            -           1           -            -           1
         Seismic...................................         -            -           1           -            -           1
                                                    ------------ ----------- ----------- ------------ ----------- -----------
                                                           12           16          37          34           14         113
                                                    ============ =========== =========== ============ =========== ===========


        JOINT VENTURES AND POOLING ARRANGEMENTS

        The Company has formed or acquired interests in offshore marine joint
        ventures and entered into pooling arrangements with various third
        parties to enter new markets, enhance its marketing capabilities, and
        facilitate operations in certain foreign markets. These arrangements
        allow the Company to expand its fleet and lessen the risks and capital
        outlays associated with independent fleet expansion. The joint venture
        and pooling arrangements in which the Company participates are described
        below:

        VEESEA JOINT VENTURE. Standby safety vessels operated by the Company in
        the North Sea are owned by a subsidiary of the Company, VEESEA Holdings,
        Inc. ("VEESEA Holdings") and its subsidiaries (collectively, "VEESEA").
        All standby safety vessels operated by the Company in the North Sea are
        managed under an arrangement with Vector Offshore Limited, a U.K.
        company ("Vector"), which owns a 9% interest in VEESEA Holdings (the
        "Veesea Joint Venture"). The Veesea Joint Venture enabled the Company,
        beginning in 1991, to enter a niche market using local management and an
        existing infrastructure. At December 31, 1999, 11 vessels owned by the
        Company were providing standby safety services pursuant to the Veesea
        Joint Venture.

        SEAVEC POOL. In January 1995, the Company entered into a pooling
        arrangement with Toisa Ltd., a U.K. offshore marine transportation and
        services company ("Toisa"). Under this pooling arrangement (the "SEAVEC
        Pool"), the Company and Toisa jointly market their standby safety
        vessels in the North Sea market, with operating revenues pooled and
        allocated to the respective companies pursuant to a formula based on the
        class of vessels each company contributes to the pool. At December 31,
        1999, the SEAVEC Pool was comprised of 15 vessels of which Toisa owned
        4.

        AVIAN FLEET POOL. In November 1996, Vector bareboat chartered-in seven
        standby safety vessels which provided for VEESEA Holdings, Toisa, and
        the owners of the vessels to share in net operating profits after
        certain adjustments for maintenance and management expenses (previously
        known as the "Saint Fleet Pool"). Vector assumed management control of
        these vessels in December 1996 and currently markets the vessels in
        coordination with the SEAVEC Pool. Three of the Saint Fleet Pool vessels
        have been returned to the owners, and the remaining four vessels
        (collectively, the "Avian Fleet") have been upgraded to comply with the
        latest statutory standby safety requirements. Following the Avian Fleet
        upgrade, net operating profit sharing after certain adjustments for
        maintenance and management expenses was limited to the vessel owners and
        Veesea Holdings (the "Avian Fleet Pool").

        TMM JOINT VENTURE. During 1994, the Company and Transportacion Maritima
        Mexicana S.A. de C.V., a Mexican corporation ("TMM"), organized a joint
        venture to serve the Mexican offshore market (the "TMM Joint Venture").
        The TMM Joint Venture is comprised of two corporations, Maritima
        Mexicana, S.A. and SEAMEX International Ltd., in each of which the
        Company owns a 40% equity interest. The TMM Joint Venture enabled the
        Company to expand into a market contiguous to the U.S. Gulf of Mexico


                                       4

        and provides greater marketing flexibility for the Company's fleet in
        the region. At December 31, 1999, the TMM Joint Venture operated 12
        vessels owned by the joint venture and 7 bareboat and time chartered-in
        vessels, 5 of which were provided by the Company.

        SMIT JOINT VENTURES. Pursuant to the SMIT Transaction, the Company
        acquired certain joint venture interests owned by SMIT and structured a
        joint venture with SMIT (the "SMIT Joint Ventures") that increased the
        Company's presence in international markets. During the third quarter of
        1999, the Board of Directors of a SMIT Joint Venture adopted a plan of
        liquidation, which provided for the complete liquidation of the joint
        venture corporation. At December 31, 1999, the Smit Joint Ventures owned
        15 vessels, including 3 to be sold under the plan of liquidation, and
        bareboat chartered-in an additional vessel. The SMIT Joint Ventures'
        vessels operate in the Far East, Latin America, the Middle East, and the
        Mediterranean.

        VISION JOINT VENTURE. During 1997, the Company and a wholly owned
        subsidiary of TMM structured a limited liability company, SEACOR VISION
        LLC (the "Vision Joint Venture"), that owns and operates an anchor
        handling towing supply vessel that was constructed in 1997. The TMM
        subsidiary owns 25% of the Vision Joint Venture, and the Company owns
        all of the remaining membership interest. At December 31, 1999, the
        vessel was servicing the oil and gas industry in the U.S. Gulf of
        Mexico.

        LOGISTICS JOINT VENTURE. During 1996, the Company structured a joint
        venture corporation, Energy Logistics, Inc., with Baker/M.O. Services,
        Inc. Since its inception, Energy Logistics, Inc.'s mission has been to
        provide shorebase, marine transport, and other supply chain management
        services in support of offshore exploration and production operations
        primarily in the U.S. Gulf of Mexico. In December 1999, the Company
        acquired additional common shares of Energy Logistics, Inc., increasing
        its ownership interest from 50% to 67%. Also, in December 1999, Energy
        Logistics, Inc. acquired Liberty Services, Inc. and its affiliated
        companies (collectively referred to as "Liberty"), Louisiana based
        corporations that have provided base services, equipment rental, and
        personnel in support of the offshore energy industry for over 15 years.
        At December 31, 1999, Energy Logistics, Inc. and Liberty (collectively
        referred to as "ELI") operated shorebase support facilities in six
        Louisiana, Texas, and Mississippi cities and employed six of the
        Company's crew and utility vessels in its operations.

        OTHER JOINT VENTURES. The Company participates in eight additional joint
        ventures that provide offshore marine vessel services to the oil and gas
        industry (the "Other Joint Ventures"). At December 31, 1999, the Other
        Joint Ventures owned six vessels that are operated internationally,
        including a vessel bareboat chartered-out to the Smit Joint Ventures.
        The Other Joint Ventures also chartered-in three vessels from the
        Company; two operated internationally and one operated in the U.S. Gulf
        of Mexico. One of the Other Joint Ventures assists with management of
        the Company's vessels operating offshore Nigeria.

        INDUSTRY CONDITIONS

        Exploration and drilling activities, which affect the demand for
        vessels, are influenced by a number of factors, including the current
        and anticipated prices of oil and natural gas, the expenditures by oil
        and gas companies for exploration and development, and the availability
        of drilling rigs. In addition, demand for drilling services remains
        dependent on a variety of political and economic factors beyond the
        Company's control, including worldwide demand for oil and natural gas,
        the ability of the Organization of Petroleum Exporting Countries
        ("OPEC") to set and maintain production levels and pricing, the level of
        production of non-OPEC countries, and the policies of various
        governments regarding exploration and development of their oil and
        natural gas reserves.

        Extremely low oil and gas commodity prices during 1998 and early 1999
        resulted in a significant decline in the number of wells drilled.
        Drilling activities on the U.S. continental shelf declined over the past
        three years with approximately 1,100 wells drilled in 1997 compared to
        approximately 700 wells drilled in 1999. Conversely, U.S. deepwater
        drilling activities, in water depths generally greater than 1,500 feet,
        have remained steady since 1997 with approximately 85 wells being
        drilled in each of the past three years. At the end of 1999, worldwide
        and U.S. Gulf of Mexico rig utilization approximated 73% and 78%,
        respectively. Also during 1998 and 1999, the availability of offshore
        support vessels has grown due to vessel construction worldwide.

        Utilization of the Company's domestic offshore support fleet began to
        decline following the second quarter of 1998, during which it averaged
        96.3% compared to 74.7% during the fourth quarter of 1999. Also, between
        1998 and 1999, rates per day worked declined for all classes of the
        Company's domestic offshore support fleet, except for its anchor
        handling towing supply vessel class, whose rates per day worked rose due
        to the recent construction of more advanced vessels. During the two year
        period ended December 31, 1999, domestic rates per day worked declined
        over 40% to approximately $4,220 for the Company's supply and towing
        supply fleet, over 8% to approximately $2,480 for its crew fleet, and
        over 14% to approximately $1,630 for its utility fleet.

        Utilization and rates per day worked of the Company's foreign offshore
        support fleet were also adversely affected by the decline in commodity


                                       5

        prices. As in its domestic operations, demand and rates per day worked
        for the Company's foreign offshore support vessels began to decline
        following the second quarter of 1998. Foreign utilization and rates per
        day worked averaged 91.1% and $7,200, respectively, during the second
        quarter of 1998 compared to 61.9% and $5,550, respectively, during the
        fourth quarter of 1999. In the Company's two principal foreign operating
        regions, Offshore West Africa and the North Sea, utilization and rates
        per day worked declined for all vessels owned and operated by the
        Company.

        During the fourth quarter of 1999, the Company experienced a slight
        increase in the demand for certain of its offshore support vessels due
        to an increase in the number of drilling rigs operating in the U.S. Gulf
        of Mexico. Improvement in demand for the Company's vessels cannot be
        expected without further increases in the number of rigs in operation.
        Beginning in the second half of 1999 and continuing into 2000, rig
        utilization and day rates improved, primarily in the U.S. Gulf of
        Mexico.

        CUSTOMERS

        The Company offers offshore marine services to over 200 customers who
        are primarily major integrated oil companies and large independent oil
        and gas exploration and production companies. The Company has enjoyed
        long-standing relationships with several of its customers, and the
        Company has established alliances with some of them. The percentage of
        revenues attributable to any individual customer varies from time to
        time, depending on the level of oil and gas exploration undertaken by a
        particular customer, the suitability of the Company's vessels for the
        customer's projects, and other factors, many of which are beyond the
        Company's control. For the fiscal year ended December 31, 1999,
        approximately 10% of the Company's offshore marine service segment's
        operating revenues was received from Chevron.

        CHARTER TERMS

        Customers for offshore support vessels generally award charters based on
        suitability and availability of equipment, price and reputation for
        quality service, and duration of employment. Charter terms may vary from
        several days to several years.

        COMPETITION

        The offshore marine service industry is highly competitive. In addition
        to price, service, and reputation, the principal competitive factors for
        offshore support fleets include the existence of national flag
        preference, operating conditions and intended use (all of which
        determine the suitability of vessel types), complexity of maintaining
        logistical support, and the cost of transferring equipment from one
        market to another.

        Although there are many suppliers of offshore marine services,
        management believes that only Tidewater, Inc. operates in all geographic
        markets and has a substantial percentage of the domestic and foreign
        offshore marine market in relation to that of the Company and its other
        competitors.

        GOVERNMENT REGULATION

        DOMESTIC REGULATION. The Company's operations are subject to significant
        federal, state, and local regulations, as well as international
        conventions. The Company's domestically registered vessels are subject
        to the jurisdiction of the United States Coast Guard (the "Coast
        Guard"), the National Transportation Safety Board, the U.S. Customs
        Service, and the U.S. Maritime Administration, as well as subject to
        rules of private industry organizations such as the American Bureau of
        Shipping. These agencies and organizations establish safety standards
        and are authorized to investigate vessels and accidents and to recommend
        improved maritime safety standards. Moreover, to ensure compliance with
        applicable safety regulations, the Coast Guard is authorized to inspect
        vessels at will.

        The Company is also subject to the Shipping Act, 1916, as amended (the
        "Shipping Act"), and the Merchant Marine Act of 1920, as amended (the
        "1920 Act," and together with the Shipping Act, the "Acts"), which
        govern, among other things, the ownership and operation of vessels used
        to carry cargo between U.S. ports. The Acts require that vessels engaged
        in the U.S. coastwise trade be owned by U.S. citizens and built in the
        United States. For a corporation engaged in the U.S. coastwise trade to
        be deemed a citizen of the U.S., (a) the corporation must be organized
        under the laws of the U.S. or of a state, territory, or possession
        thereof, (b) each of the president or other chief executive officer and
        the chairman of the board of directors of such corporation must be U.S.
        citizens, (c) no more than a minority of the number of directors of such
        corporation necessary to constitute a quorum for the transaction of
        business can be non-U.S. citizens, and (d) at least 75% of the interest
        in such corporation must be owned by U.S. "Citizens" (as defined in the
        Acts). Should the Company fail to comply with the U.S. citizenship
        requirements of the Acts, it would be prohibited from operating its
        vessels in the U.S. coastwise trade during the period of such
        non-compliance.

        To facilitate compliance with the Acts, the Company's Restated
        Certificate of Incorporation: (i) contains provisions limiting the


                                       6

        aggregate percentage ownership by Foreigners of any class of the
        Company's capital stock (including the Common Stock) to 22.5% of the
        outstanding shares of each such class to ensure that such foreign
        ownership will not exceed the maximum percentage permitted by applicable
        maritime law (presently 25.0%), and authorizes the Board of Directors,
        under certain circumstances, to increase the foregoing percentage to
        24.0%, (ii) requires institution of a dual stock certification system to
        help determine such ownership, and (iii) permits the Board of Directors
        to make such determinations as reasonably may be necessary to ascertain
        such ownership and implement such limitations. In addition, the
        Company's Amended and Restated By-Laws provide that the number of
        foreign directors shall not exceed a minority of the number necessary to
        constitute a quorum for the transaction of business and restrict any
        officer who is not a U.S. citizen from acting in the absence or
        disability of the Chairman of the Board of Directors and Chief Executive
        Officer and the President, all of whom must be U.S. citizens.

        FOREIGN REGULATION. The Company, through its subsidiaries, joint
        ventures, and pooling arrangements, operates vessels registered in the
        following foreign jurisdictions: St. Vincent and the Grenadines,
        Vanuatu, the Cayman Islands, France, Chile, Egypt, the Netherlands,
        Bahamas, Greece, Panama, Liberia, the Philippines, Argentina, Trinidad,
        Tunisia, and Mexico. The Company's vessels registered in these
        jurisdictions are subject to the laws of the applicable jurisdiction as
        to ownership, registration, manning, and safety of vessels. In addition,
        the vessels are subject to the requirements of a number of international
        conventions to which the jurisdiction of registration of the vessels is
        a party. Among the more significant of these conventions are: (i) the
        1978 Protocol Relating to the International Convention for the
        Prevention of Pollution from Ships, (ii) the International Convention on
        the Safety of Life at Sea, 1974 and 1978 Protocols, and (iii) the
        International Convention on Standards of Training, Certification, and
        Watchkeeping for Seafarers, 1978. The Company believes that its vessels
        registered in these foreign jurisdictions are in compliance with all
        applicable material regulations and have all licenses necessary to
        conduct their business. In addition, vessels operated as standby safety
        vessels in the North Sea are subject to the requirements of the
        Department of Transport of the U.K. pursuant to the U.K. Safety Act.

        ENVIRONMENTAL REGULATION. The Company's offshore support vessels
        routinely transport diesel fuel to offshore rigs and platforms and carry
        diesel fuel for their own use, transport certain bulk chemical materials
        used in drilling activities, transport rig-generated wastes to shore for
        delivery to waste disposal contractors, and transport liquid mud which
        contains oil and oil by-products. These operations are subject to a
        variety of federal and analogous state statutes concerning matters of
        environmental protection. Statutes and regulations that govern the
        discharge of oil and other pollutants onto navigable waters include OPA
        90 and the Clean Water Act of 1972, as amended (the "Clean Water Act").
        The Clean Water Act imposes substantial potential liability for the
        costs of remediating releases of petroleum and other substances in
        reportable quantities. State laws analogous to the Clean Water Act also
        specifically address the accidental release of petroleum in reportable
        quantities.

        OPA 90, which amended the Clean Water Act, increased the limits on
        liability for oil discharges at sea, although such limits do not apply
        in certain listed circumstances. In addition, some states have enacted
        legislation providing for unlimited liability under state law for oil
        spills occurring within their boundaries. Other environmental statutes
        and regulations governing the Company's offshore marine operations
        include, among other things, the Resource Conservation and Recovery Act,
        as amended ("RCRA"), which regulates the generation, transportation,
        storage, and disposal of on-shore hazardous and non-hazardous wastes;
        the Comprehensive Environmental Response, Compensation and Liability Act
        of 1980, as amended ("CERCLA"), which imposes strict and joint and
        several liability for the costs of remediating historical environmental
        contamination; and the Outer Continental Shelf Lands Act, as amended
        ("OCSLA"), which regulates oil and gas exploration and production
        activities on the Outer Continental Shelf.

        OCSLA provides the federal government with broad discretion in
        regulating the leasing of offshore resources for the production of oil
        and gas. Because the Company's offshore marine operations rely on
        offshore oil and gas exploration and production, the government's
        exercise of OCSLA authority to restrict the availability of offshore oil
        and gas leases could have a material adverse effect on the Company's
        financial condition and results of operations.

        In addition to these federal and state laws, state and local laws and
        regulations and certain international treaties to which the U.S. is a
        signatory, such as MARPOL 73/78, subject the Company to various
        requirements governing waste disposal and water and air pollution.

        ENVIRONMENTAL SERVICES

        MARKET

        The Company's environmental service business is operated primarily
        through NRC, IRC, and ERST and provides contractual oil spill response
        and other related training and consulting services. The market for these
        services has grown substantially since 1990 when the United States
        Congress passed OPA 90 after the Exxon Valdez spill in Alaska. OPA 90
        requires that all tank vessels operating within the Exclusive Economic
        Zone of the United States and all facilities and pipelines handling oil
        that could have a spill impacting the navigable waters of the United
        States, develop a plan to respond to a "worst case" oil spill and ensure


                                       7

        by contract or other approved means the ability to respond to such a
        spill.

        EQUIPMENT AND SERVICES

        OIL SPILL RESPONSE SERVICES. The Company owns and maintains specialized
        equipment that is positioned in designated areas to comply with
        regulations promulgated by the Coast Guard and also has personnel
        trained to respond to oil spills as required by customers and
        regulations. The Company provides these services on the East, Gulf, and
        West Coasts of the United States as well as in the Caribbean. West Coast
        coverage is provided through Clean Pacific Alliance ("CPA"), a joint
        venture between NRC and Crowley Marine Services.

        When an oil spill occurs, the Company mobilizes specialized oil spill
        response equipment, using either its own personnel or personnel under
        contract, to provide emergency response services for both land and
        marine oil spills. The Company has established a network of
        approximately 85 independent oil spill response contractors that may
        assist it with the provisioning of equipment and personnel. NRC has
        acted as the principal contractor on several of the largest oil spills
        that have occurred in the United States after the enactment of OPA 90.

        TRAINING, DRILL, AND OTHER PROFESSIONAL SERVICES. The Company has
        developed customized training programs for industrial companies that
        educate personnel on the risks associated with the prevention of and
        response to oil spills, handling of hazardous materials, fire fighting,
        and other crisis-related events. The Company also plans for and
        participates in customer oil spill response drill programs, vessel
        response plans, and response exercises. The Company's drill services and
        training programs are offered both on a stand-alone basis and as part of
        its base retainer services.

        INTERNATIONAL. The Company operates its environmental service business
        internationally through IRC. Client services of IRC include oil spill
        response, training, exercise support, and special projects in assessing
        risk of spills, response preparedness, strategies, and resource
        requirements. International response services are currently provided in
        the Southeast Asia, Indian Ocean, Caribbean, and Latin America regions.
        Joint ventures have been formed with local partners in Thailand and
        Venezuela to provide spill response and other services to multinational
        oil companies, governments, and industry. The Company expects to
        complete the structuring of a Brazilian joint venture in 2000.

        CUSTOMERS AND CONTRACT ARRANGEMENTS

        The Company offers its retainer services and oil spill response services
        primarily to the domestic and international shipping community and to
        owners of facilities such as refineries, pipelines, exploration and
        production platforms, and tank terminals. In addition to its retainer
        customers, the Company also provides oil spill response services to
        others, including, under certain circumstances, the Coast Guard. The
        Company presently has approximately 700 customers. The Company's
        retainer arrangements with these customers include both short-term
        contracts (one year or less) and long-term agreements, in some cases as
        long as ten years from inception. For the fiscal year ended December 31,
        1999, approximately 25% and 13% of the Company's environmental retainer
        revenue was received from Coastal Refining and Marketing, Inc. and Citgo
        Petroleum Corporation, respectively.

        The Company also generates revenue from the supervision of activities in
        response to oil spill emergencies. The level of spill activity can
        dramatically impact the Company's environmental service revenue. A
        single large spill can contribute significantly to overall revenues and
        to operating income. However, the Company is unable to predict revenues
        from oil spills.

        COMPETITION

        The principal competitive factors in the environmental service business
        are price, service, reputation, experience, and operating capabilities.
        Management believes that the lack of uniform regulatory development and
        enforcement on a federal and state level has created a lower barrier to
        entry in several market segments, which has increased the number of
        competitors. The Company's oil spill response business faces competition
        primarily from the Marine Spill Response Corporation, a non-profit
        corporation funded by the major integrated oil companies, other industry
        cooperatives, and also from smaller contractors who target specific
        market niches. The Company's environmental consulting business faces
        competition from a number of relatively small privately held spill
        management companies.

        GOVERNMENT REGULATION

        NRC is "classified" by the Coast Guard as an Oil Spill Removal
        Organization ("OSRO"). The OSRO classification process is strictly
        voluntary and plan holders who utilize classified OSROs are exempt from
        the requirement to list their response resources in their plans. The
        classification process represents standard guidelines by which the Coast
        Guard and plan holders can evaluate an OSRO's potential to respond to
        and recover oil spills of various types and sizes in different operating


                                       8

        environments and geographic locations. NRC and CPA, in combination, hold
        OSRO classification under the current Coast Guard guidelines for every
        port in the continental United States, Hawaii, and the Caribbean.

        In addition to the Coast Guard, the Environmental Protection Agency
        ("EPA"), the Office of Pipeline Safety, the Minerals Management Service
        division of the Department of Interior, and individual states regulate
        vessels, facilities, and pipelines in accordance with the requirements
        of OPA 90 or under analogous state law. There is currently little
        uniformity among the regulations issued by these agencies.

        When responding to third-party oil spills, the Company's environmental
        service business enjoys immunity from imposition of liability under
        federal law and some state laws for any spills arising from its response
        efforts, except if the Company's environmental service business is found
        to be grossly negligent or to have engaged in willful misconduct. The
        Company's environmental service business maintains insurance coverage
        against such claims arising from its response operations. It considers
        the limits of liability adequate, although there can be no assurance
        that such coverage will be sufficient to cover future claims that may
        arise

        DRILLING SERVICES

        THE RIGS

        Jackup rigs are the largest category of mobile offshore drilling units,
        representing approximately 60% of such units. A mobile offshore drilling
        unit consists of a drilling package mounted on a hull, which is
        maintained at a specific location during drilling operations. The
        drilling package typically consists of a power plant, hoisting
        equipment, a rotary system, tubulars, and systems for mud treating and
        pumping, well control, and the handling of bulk materials. The
        specifications of the drilling package determine the capability of the
        rig to drill to various depths and penetrate certain sub-surface
        environments. The drilling unit also includes the living quarters,
        heliport, cranes, and other equipment necessary to support the drilling
        operations. The design of the particular drilling unit determines the
        marine environment in which it can operate.

        Several factors determine the type of rig most suitable for a particular
        project, the more significant of which are the marine environment, water
        depth, and seabed conditions at the proposed drilling location, whether
        the drilling is being done over a platform or other structure, the
        intended well depth and variable deck load, and well control
        requirements. Considerable variation in utilization and day rates often
        exists for different types of rigs, primarily as a function of their
        capabilities and location.

        Jackup rigs are mobile, self-elevating drilling platforms equipped with
        legs that are lowered to the ocean floor until a foundation is
        established to support the drilling platform. A jackup rig consists of
        the hull, jacking system, drilling equipment, crew quarters, loading and
        unloading facilities, storage areas, heliport, and other related
        equipment. Oil and gas exploration companies use jackup rigs extensively
        for offshore drilling in water depths from 20 feet to 350 feet. A jackup
        rig is towed to the drillsite with its hull riding in the sea and its
        legs retracted. At the drillsite, the legs are jacked down to the ocean
        floor until the hull has been elevated a sufficient distance above the
        water to allow storm waves to pass beneath. After completion of drilling
        operations, the hull is lowered until it rests in the water and then the
        legs are retracted for relocation to another drillsite.

        The nature of the seabed at a particular drilling location dictates the
        appropriate rig-leg configuration of the jackup rig to be used. Some
        jackup rigs have a lower hull (mat) attached to the bottom of the rig
        legs, while others have independent legs. A mat-supported rig provides a
        stable foundation in flat soft-bottom areas, while independent-leg rigs
        are better suited for harder or uneven seabed conditions.

        Jackup rigs can be generally characterized as either slot jackup rigs or
        cantilevered jackup rigs. Slot-design rigs are configured for drilling
        operations to take place through a slot in the hull. A slot design is
        appropriate for drilling exploratory wells in the absence of any
        existing permanent structure, such as a production platform, although
        some slot design rigs are capable of drilling over certain production
        platforms. A cantilevered jackup rig can extend its drill floor and
        derrick over an existing, fixed structure, thereby permitting the rig to
        drill or work over a well located on such a structure.

        Jackup rigs vary a great deal in size and capability. The Company
        defines premium jackup rigs as cantilevered, independent-leg, jackup
        rigs capable of operating in water depths of 300 feet or greater,
        excluding (due to their substantially higher construction cost) the
        class of jackup rigs built for service in "harsh environments," such as
        the North Sea and Eastern Canada.

        The Rigs constructed by the Company consist of one LeTourneau Enhanced
        116-C jackup rig and one LeTourneau Super 116 jackup rig, both of which
        are improved versions of the most versatile and popular design in the
        worldwide jackup rig fleet (the LeTourneau 116-C). The hulls, machinery,
        and outfitting are identical on the two Rigs and are based on the larger
        LeTourneau Super 116 design. The only difference is that the LeTourneau


                                       9

        Super 116 design has a leg that has been designed to a higher
        specification while the LeTourneau Enhanced 116-C design is based on a
        LeTourneau 116-C design that has subsequently been strengthened to carry
        the larger LeTourneau Super 116 hull and longer legs. The Rigs have
        capabilities that exceed those of typical existing premium jackup rigs,
        including increased engine horsepower, increased hydraulic horsepower,
        and an enlarged mud handling and solids control system. The Rigs also
        incorporate such features as digital drilling controls, dual pipe
        handling, pipe handling robotics, and a drillpipe identification and
        tracking system.

        The Rigs are registered in Panama with an "A1--Self Elevating Drilling
        Unit" certification from the American Bureau of Shipping.

        MARKET

        The offshore contract drilling business is influenced by a number of
        factors, including the current and anticipated prices of oil and natural
        gas, the expenditures by oil and gas companies for exploration and
        development, and the availability of drilling rigs. In addition, demand
        for drilling services remains dependent on a variety of political and
        economic factors beyond the Company's control, including worldwide
        demand for oil and natural gas, the ability of OPEC to set and maintain
        production levels and pricing, the level of production of non-OPEC
        countries, and the policies of the various governments regarding
        exploration and development of their oil and natural gas reserves.

        The Company expects to focus its operations initially on the U.S. Gulf
        of Mexico market, which is the largest single market for jackup rigs in
        the world and which features the presence of an established pipeline and
        production infrastructure. Due to the Company's initial focus on the
        U.S. Gulf of Mexico, the Company's business and operations will be
        particularly dependent upon the condition of the oil and natural gas
        industry in the U.S. Gulf of Mexico and on the exploration and
        production expenditures of oil and gas companies there.

        Historically, the offshore contract drilling industry has been highly
        competitive and cyclical, with periods of high demand, short rig supply,
        and high day rates followed by periods of low demand, excess rig supply,
        and low day rates. During 1998 and early 1999, the decline in product
        prices in the oil and gas industry resulted in reduced day rates and
        decreased utilization worldwide and particularly in the U.S. Gulf of
        Mexico jackup market. Should recent improvements in product prices in
        the oil and gas industry be sustained, owners of jackup rigs should
        benefit through an improvement in day rates and utilization.

        COMPETITION

        The contract drilling industry is highly competitive. Customers
        sometimes award contracts on a competitive bid basis, and although a
        customer selecting a rig may consider, among other things, a
        contractor's safety record, crew quality, and quality of service and
        equipment, price is the major factor in determining the selection of a
        drilling contractor. The Company believes that competition for drilling
        contracts will continue to be intense for the foreseeable future because
        of the ability of contractors to move rigs from areas of low utilization
        and day rates to areas of greater activity and relatively higher day
        rates. Such movement or a decrease in drilling activity in any major
        market could further depress day rates and could adversely affect
        utilization of the Company's Rigs. Substantially all of the Company's
        competitors in the business of providing jackup drilling services have
        substantially larger fleets and are more established as drilling
        contractors.

        OFFSHORE CONTRACT DRILLING SERVICES

        The Company's contracts to provide offshore drilling services are
        expected to vary in their terms and provisions. The Company expects that
        it may obtain contracts through competitive bidding, although the
        Company may also be awarded drilling contracts without competitive
        bidding. Drilling contracts generally provide for a basic drilling rate
        on a fixed day rate basis regardless of whether such drilling results in
        a successful well. Drilling contracts may also provide for lower rates
        during periods when a rig is being moved or when drilling operations are
        interrupted or restricted by equipment breakdowns, adverse weather or
        water conditions, or other conditions beyond the control of the Company.
        Under day rate contracts, the Company would generally expect to pay the
        operating expenses of the Rig, including wages and the cost of
        incidental supplies. Revenues from day rate contracts are expected to
        account for a substantial portion of the Company's revenues. In
        addition, the Company may work a Rig under day rate contracts pursuant
        to which the customer also agrees to pay the Company an incentive bonus
        based upon performance.

        A day rate drilling contract generally extends over a period of time
        covering either the drilling of a single well, a group of wells (a
        "well-to-well contract"), or a stated term (a "term contract") and may
        be terminated by the customer in the event the drilling unit is
        destroyed or lost or if drilling operations are suspended for a
        specified period of time as a result of a breakdown of major equipment
        or in some cases due to other events beyond the control of either party.
        In addition, it is expected that certain of the Company's Rig contracts


                                       10

        may permit the customer to terminate the contract early by giving notice
        and in some circumstances may require the payment of an early
        termination fee by the customer. The contract term in many instances may
        be extended by the customer exercising options for the drilling of
        additional wells at fixed or mutually agreed terms, including day rates.

        The duration of offshore drilling contracts is generally determined by
        market demand and the respective management strategy of the offshore
        drilling contractor and its customers. In periods of rising demand for
        offshore rigs, contractors typically prefer well-to-well contracts that
        give contractors the flexibility to profit from increasing day rates. In
        contrast, during these periods customers with reasonably definite
        drilling programs typically prefer longer term contracts to maintain
        drilling prices at the lowest level possible. Conversely, in periods of
        decreasing demand for offshore rigs, contractors generally prefer longer
        term contracts to preserve day rates at existing levels and ensure
        utilization, while the customers prefer well-to-well contracts that
        allow them to obtain the benefit of lower day rates. In general, the
        Company intends to seek a reasonable balance of single well,
        well-to-well, and term contracts to minimize the downside impact of a
        decline in the market while still participating in the benefit of
        increasing day rates in a rising market.

        The Company's Rig operations will be subject to the many hazards
        inherent in the offshore drilling business, including blowouts,
        craterings, fires, collisions, and groundings of drilling equipment,
        which could cause substantial damage to the environment, and damage or
        loss from adverse weather and sea conditions. These hazards could also
        cause personal injury and loss of life, suspend drilling operations, or
        seriously damage or destroy the property and equipment involved and, in
        addition to environmental damage, could cause substantial damage to
        producing formations and surrounding areas. The Company's offshore
        drilling equipment will also be subject to hazards inherent in marine
        operations, such as capsizing, grounding, collision, damage from weather
        or sea conditions, or unsound location. In addition, the Company may be
        subject to liability for oil spills, reservoir damage, and other
        accidents that could cause substantial damages.

        Although as of the date of this Report, the Company's Rig operations
        have received no revenues from external customers attributable to
        foreign countries, and the Company's long-lived Rig assets are currently
        located in the United States, in the future all or a portion of the
        revenues from operation of the Rigs may be derived from foreign
        operations and be subject, in varying degrees, to risks inherent in
        doing business abroad. The Company's non-U.S. Rig operations will be
        subject to certain political, economic, and other uncertainties not
        encountered in U.S. operations, including risks of war and civil
        disturbances (or other risks that may limit or disrupt markets),
        expropriation, and the general hazards associated with the assertion of
        national sovereignty over certain areas in which operations are
        conducted. The Company's Rig operations outside the United States may
        face the additional risks of fluctuating currency values, hard currency
        shortages, controls of currency exchange, and repatriation of income or
        capital.

        GOVERNMENTAL REGULATION

        The Company's Rig operations are subject to numerous federal, state, and
        local environmental laws and regulations that relate directly or
        indirectly to its operations, including certain regulations controlling
        the discharge of materials into the environment, requiring removal and
        clean-up under certain circumstances, or otherwise relating to the
        protection of the environment. For example, the Company may be liable
        for damages and costs incurred in connection with oil spills for which
        it is held responsible. Laws and regulations protecting the environment
        have become increasingly stringent in recent years and may in certain
        circumstances impose "strict liability" and render a company liable for
        environmental damage without regard to negligence or fault on the part
        of such company. Such laws and regulations may expose the Company to
        liability for the conduct of or conditions caused by others, or for acts
        of the Company that were in compliance with all applicable laws at the
        time such acts were performed. The application of these requirements or
        the adoption of new requirements could have a material adverse effect on
        the Company.

        OPA 90 and similar legislation enacted in Texas, Louisiana, and other
        coastal states address oil spill prevention and control and
        significantly expand liability exposure across all segments of the oil
        and gas industry. OPA 90, such similar legislation, and related
        regulations impose a variety of obligations on the Company related to
        the prevention of oil spills and liability for damages resulting from
        such spills. OPA 90 imposes strict, and with limited exceptions, joint
        and several liability upon each responsible party for oil removal costs
        and a variety of public and private damages. OPA 90 also imposes ongoing
        financial responsibility requirements on a responsible party. A failure
        to comply with such ongoing requirements or inadequate cooperation in a
        spill could subject a responsible party, including in some
        circumstances, the Company, to civil or criminal enforcement action. OPA
        90 also requires the U.S. Minerals Management Service to promulgate
        regulations to implement the financial responsibility requirements for
        offshore facilities. If implemented as written, the financial
        responsibility requirements of OPA 90 could have the effect of
        significantly increasing the amount of financial responsibility that oil
        and gas operators must demonstrate to comply with OPA 90. While industry


                                       11

        groups and marine insurance carriers are seeking modification of these
        requirements, implementation of these requirements in their current form
        could adversely affect the ability of some of the Company's prospective
        customers to operate in U.S. waters, which could have a material adverse
        effect on the Company.

        The Clean Water Act prohibits the discharge of certain substances into
        the navigable waters of the U.S. without a permit. The regulations
        implementing the Clean Water Act require permits to be obtained by an
        operator before certain exploration or drilling activities occur.
        Violations of monitoring, reporting, and permitting requirements can
        result in the imposition of civil and criminal penalties. The provisions
        of the Clean Water Act can also be enforced by citizens' groups. Many
        states have similar laws and regulations.

        OCSLA authorizes regulations relating to safety and environmental
        protection applicable to lessees and permittees operating on the Outer
        Continental Shelf. Specific design and operational standards may apply
        to Outer Continental Shelf vessels, rigs, platforms, vehicles, and
        structures. Violation of lease terms relating to environmental matters
        or regulations issued pursuant to OCSLA can result in substantial civil
        and criminal penalties as well as potential court injunctions curtailing
        operations and the cancellation of leases. Such enforcement liabilities
        can result from either governmental or citizen prosecution.

        CERCLA currently exempts crude oil, and RCRA currently exempts certain
        drilling materials, such as drilling fluids and production waters, from
        the definitions of hazardous substances and hazardous wastes. However,
        the Company's operations may involve the generation, use, or handling of
        other materials, such as fracturing fluids or acids that may be
        classified as environmentally hazardous substances or waste, and that
        are subject to RCRA and comparable state statutes. There can be no
        assurance that such exemptions will be preserved in future amendments of
        such acts, if any, or that more stringent laws and regulations
        protecting the environment will not be adopted. The EPA and various
        state agencies have limited the disposal options for certain hazardous
        and nonhazardous wastes and are considering the adoption of stricter
        handling and disposal standards for nonhazardous wastes. CERCLA assigns
        strict liability to each responsible party, as defined, for all response
        and remediation costs, as well as natural resource damages. Few defenses
        exist to the liability imposed by CERCLA.

        The Company's Rig operations are subject to the Clean Air Act, as
        amended, and comparable state statutes. Traditional air quality programs
        relating to the prevention of significant deterioration of air quality
        in areas with unacceptable pollution levels ("nonattainment areas")
        restrict drilling in affected areas. Amendments to the Clean Air Act
        were adopted in 1990 and contain provisions that may impose certain
        requirements with respect to air emissions that may require capital
        expenditures by the Company. Any greater degree of regulation in
        nonattainment areas would increase the cost associated with operation in
        those areas.

        OTHER INVESTMENTS

        In 1998, the Company acquired an interest in the predecessor of Globe
        Wireless, LLC ("Globe Wireless") and now owns approximately 38% of the
        voting Units issued by Globe Wireless. Globe Wireless is a provider of
        advanced marine telecommunication services using satellite and high
        frequency radio technologies. It owns and operates a worldwide network
        of high frequency radio stations to offer email, data transfer, and
        Telex services to ships at a much lower cost than competing satellite
        services. The Company believes that Globe Wireless offers the only such
        service combining radio, satellite, and Internet communications to the
        maritime community. See "Management's Discussion and Analysis of
        Financial Condition and Results of Operations - Liquidity and Capital
        Resources - Globe Wireless."

        In addition, the Company from time to time, makes investments in other
        related businesses. See "Management's Discussion and Analysis of
        Financial Condition and Results of Operations - Liquidity and Capital
        Resources - Capital Expenditures."

        EMPLOYEES

        As of December 31, 1999, the Company directly or indirectly employed
        approximately 2,800 persons. Of the individuals directly employed by the
        Company, approximately 1,700 work aboard offshore support vessels or
        Rigs and 405 work ashore. The Company's administrative, base support,
        and managerial personnel include 302 offshore marine, 80 environmental,
        and 12 drilling service segment employees and 11 corporate employees.

        The Company also indirectly employs personnel for its various
        operations. West Africa Offshore, Ltd., a Nigerian corporation of which
        the Company owns 40%, assists with the management of the Company's
        vessels operating offshore Nigeria and, at December 31, 1999, employed
        approximately 215 shipboard and 100 administrative, shore support, and
        managerial personnel. At December 31, 1999, approximately 90 shipboard
        personnel were provided to the Company for its North Sea offshore supply
        vessel operations pursuant to an agreement with SMIT. At December 31,


                                       12

        1999, Celtic Pacific Ship Management Overseas, Ltd., a vessel manning
        agency, provided approximately 210 shipboard personnel for the Company's
        North Sea standby safety operations. At December 31, 1999, the Company's
        partner in ELI provided approximately 80 base support and administrative
        personnel for its logistics operations.















                                       13

        GLOSSARY OF SELECTED OFFSHORE MARINE INDUSTRY TERMS

        ANCHOR HANDLING TOWING SUPPLY VESSELS. Anchor handling towing supply
        vessels are equipped with winches capable of towing drilling rigs and
        lifting and positioning their anchors and other marine equipment. They
        range in size and capacity and are usually characterized in terms of
        horsepower and towing capacity. For U.S. Gulf of Mexico service, anchor
        handling towing supply vessels typically require 6,000 horsepower or
        more to position and service semi-submersible rigs drilling in deep
        water areas.

        BAREBOAT CHARTER. This is a lease arrangement under which the lessee
        (charterer) is responsible for all crewing, insurance, and other
        operating expenses, as well as the payment of bareboat charter hire to
        the vessel owner.

        CREW BOATS. Crew boats transport personnel and cargo to and from
        production platforms and rigs. Older crew boats, early 1980's built, are
        generally 100 ft. to 110 ft. in length and are generally designed for
        speed to transport personnel and small amounts of cargo. Newer crew boat
        designs, also known as Fast Support Intervention Vessels ("FSIV"), are
        generally larger, 130 ft. to 180 ft. in length, and have greater cargo
        carrying capacities. They are used primarily to transport cargo on a
        time sensitive basis.

        FREIGHT VESSELS. Freight vessels have a substantial amount of clear deck
        space for cargo and adequate stability to handle tiers of containers or
        overdimensional cargo. Speed and fuel consumption are also important
        factors in this vessel category.

        LINE HANDLING VESSELS. Line handling vessels are outfitted with special
        equipment to assist tankers while they are loading at single buoy
        moorings. They have a high degree of maneuverability, are well fendered
        and include pollution dispersal capability.

        OIL SPILL RESPONSE VESSELS. Oil spill response vessels are specially
        equipped to respond to oil spill emergencies and are certified as such
        by the U.S. Coast Guard.

        OVERALL UTILIZATION. For any vessel with respect to any period, the
        ratio of aggregate number of days worked by such vessel to total
        calendar days available during such period.

        PROJECT AND GEOPHYSICAL VESSELS. These vessels generally have special
        features to meet the requirements of specific jobs. The special features
        include large deck spaces, high electrical generating capacities, slow
        controlled speed and unique thrusters, extra berthing facilities, and
        long range capabilities. These vessels are primarily used for well
        stimulation and for the deployment of seismic data gathering equipment.

        RATE PER DAY WORKED. For any vessel with respect to any period, the
        ratio of total charter revenue of such vessel to the aggregate number of
        days worked of such vessel for such period.

        STANDBY SAFETY VESSELS. Standby safety vessels operate in the U.K.
        sector of the North Sea. They typically remain on station to provide a
        safety backup to offshore rigs and production facilities, carry special
        equipment to rescue personnel, are equipped to provide first aid and
        shelter and, in some cases, also function as supply vessels.

        SUPPLY VESSELS. Supply vessels serve drilling and production facilities
        and support offshore construction and maintenance work. They are
        differentiated from other vessels by cargo flexibility and capacity. The
        size of a vessel typically determines deck capacity, although vessels
        constructed after 1979 with exhaust stacks forward have better
        configurations for cargo stowage and handling. In addition to deck
        cargo, such as pipe or drummed materials on pallets, supply vessels
        transport liquid mud, potable and drill water, diesel fuel and dry bulk
        cement. Generally, customers prefer vessels with large liquid mud and
        bulk cement capacity and large areas of clear deck space. For certain
        jobs, other characteristics such as maneuverability, fuel efficiency, or
        firefighting capability may also be important.

        TIME CHARTER. This is a lease arrangement under which the entity
        providing the vessel is responsible for all crewing, insurance, and
        other operating expenses and the charterer only pays a time charter hire
        fee to the providing entity.

        TOWING SUPPLY VESSELS. These vessels perform the same functions as
        supply vessels but are equipped with more powerful engines (3,000 to
        5,000 horsepower) and deck mounted winches, giving them the added
        capability to perform general towing duties, buoy setting and limited
        anchor handling work. Towing supply vessels are primarily used in
        international operations, which require the additional versatility that
        these vessels offer relative to supply vessels.

        UTILITY VESSELS. These vessels provide service to offshore production
        facilities and also support offshore maintenance and construction work.
        Their capabilities include the transportation of fuel, water, deck
        cargo, and personnel. They range in length from 96 feet to 135 feet and
        can, depending on the vessel design, have enhanced features such as
        firefighting and pollution response capabilities.


                                       14

        ITEM 2.         PROPERTIES

        SEACOR's executive offices in Houston, Texas and New York, New York and
        its offshore marine and drilling service segments' headquarters are
        located in Houston, Texas. Headquarters for the Company's environmental
        service segment are located in Calverton, New York.

        The Company also maintains additional facilities in support of its
        offshore marine, environmental service, and logistics operations.
        Domestically, the offshore marine service segment's largest base is
        located in Morgan City, Louisiana and includes administrative offices,
        warehouse facilities, and a waterfront site for vessel dockage. Other
        domestic offshore marine service segment facilities are located
        primarily in Louisiana cities that both serve as ports-of-call for many
        customers and represent strategically dispersed operating bases along
        the U.S. Gulf of Mexico. In its foreign operations, the Company's
        offshore marine service segment maintains offices in Rotterdam, the
        Netherlands, Paris, France, Great Yarmouth, London, and Aberdeen, United
        Kingdom, Dubai, United Arab Emirates, and Singapore in support of its
        widely dispersed foreign fleet. The Company's logistics operation has
        sites in Morgan City, Cameron, Venice, Belle Chasse, and Dulac,
        Louisiana, Sabine Pass, Texas, and Pascagoula, Mississippi that serve as
        operating bases or provide administrative offices and warehouse
        facilities. The Company's environmental service segment maintains small
        marketing offices in Florida, Texas, Tennessee, California, Louisiana,
        New Jersey, Washington, St. Croix, and Puerto Rico. The Company believes
        that its facilities, including waterfront locations used for vessel
        dockage and the undertaking of certain vessel repair work, provide an
        adequate base of operations for the foreseeable future. Information
        regarding the Company's fleet is included in Item 1 of this Form 10-K.

        ITEM 3.           LEGAL PROCEEDINGS

        The Company is involved in various legal and other proceedings which are
        incidental to the conduct of its business. The Company believes that
        none of these proceedings, if adversely determined, would have a
        material adverse effect on its financial condition or results of
        operations.

        ITEM 4.         SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

        No matters were submitted to a vote of security holders during the
        fourth quarter of 1999.

        ITEM 4A.          EXECUTIVE OFFICERS OF THE REGISTRANT

        The name, age, and offices held by each of the executive officers of the
        Company at December 31, 1999 were as follows:



             NAME                           AGE                                           POSITION
- --------------------------------     ------------------       -----------------------------------------------------
                                                        
Charles Fabrikant                           55                Chairman of the Board of Directors,
                                                              President, and Chief Executive Officer
Randall Blank                               49                Executive Vice President, Chief Financial
                                                              Officer and Secretary
Alice Gran                                  50                Vice President and General Counsel
Lenny Dantin                                47                Vice President and Treasurer
Milton Rose                                 55                Vice President
Andrew Strachan                             52                Vice President



        Charles Fabrikant has been Chairman of the Board and Chief Executive
        Officer of SEACOR since December 1989 and has served as a director of
        certain of SEACOR's subsidiaries since December 1989. He has been
        President of SEACOR since October 1992. For more than the past five
        years, Mr. Fabrikant has been the Chairman of the Board and Chief
        Executive Officer of SCF Corporation ("SCF") and President of Fabrikant
        International Corporation ("FIC"), each a privately owned corporation
        engaged in marine operations and investments. Since January 1992, Mr.
        Fabrikant has been Chairman of the Board of NRC. Each of SCF and FIC may
        be deemed to be an affiliate of the Company. Mr. Fabrikant is a licensed
        attorney admitted to practice in the State of New York and in the
        District of Columbia.

        Randall Blank has been Executive Vice President and Chief Financial
        Officer of SEACOR since December 1989 and has been the Secretary since
        October 1992. Since June 1994, Mr. Blank has been Chief Financial
        Officer and Vice President of NRC. From December 1989 to October 1992,
        Mr. Blank was Treasurer of SEACOR. In addition, Mr. Blank has been a
        director of certain of SEACOR's subsidiaries since January 1990. Since
        1986, Mr. Blank has served as President and Chief Operating Officer of
        SCF.

        Alice Gran has been Vice President and General Counsel of SEACOR since
        July 1998. From 1978 until joining SEACOR, Ms. Gran was a partner in the
        Washington, D.C. law firm of Fort & Schlefer, L.L.P. Ms. Gran is a
        licensed attorney admitted to practice in the District of Columbia.


                                       15

        Lenny Dantin has been Vice President of SEACOR since March 1991,
        Treasurer since October 1992, and has been Vice President and the
        Secretary, Treasurer and a director of certain of SEACOR's subsidiaries
        since January 1990. Also, since 1994, Mr. Dantin has been a director of
        one of the companies comprising the TMM Joint Venture.

        Milton Rose has been Vice President of SEACOR and President and Chief
        Operating Officer of SEACOR Marine, Inc. since January 1993. In
        addition, since January 1993, Mr. Rose has been a director of certain of
        SEACOR's subsidiaries. Since 1994, he has been a director of one of the
        companies comprising the TMM Joint Venture. From 1985 to January 1993,
        Mr. Rose was Vice President-Marine Division for Bay Houston Towing
        Company.

        Andrew Strachan has been a Vice President of SEACOR since April 1997 and
        a director of certain SEACOR subsidiaries since December 1996. Prior to
        joining SEACOR, Mr. Strachan held various positions at SMIT from 1967
        through 1996, and most recently, Mr. Strachan served as Group Director
        for SMIT's offshore shipping business.












                                       16

                                     PART II


        ITEM 5.  MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER
                 MATTERS

        On October 23, 1996, SEACOR's Common Stock commenced trading on the New
        York Stock Exchange, Inc. (the "NYSE") under the trading symbol "CKH."
        Prior to October 23, 1996, SEACOR's Common Stock was traded on the
        Nasdaq Stock Market's National Market under the trading symbol "CKOR."
        Set forth in the tables below for the periods presented are the high and
        low sale prices for SEACOR's Common Stock:



                                                                                HIGH                        LOW
                                                                        ----------------------     ----------------------
                                                                                             
     Fiscal Year Ending December 31, 1998:
       First Quarter...........................................                  61 1/8                     50 1/4
       Second Quarter..........................................                  61 15/16                   53 1/2
       Third Quarter...........................................                  61 7/16                    33
       Fourth Quarter..........................................                  54 3/8                     31 1/4

     Fiscal Year Ending December 31, 1999:
       First Quarter...........................................                  54 1/2                     38 1/2
       Second Quarter..........................................                  57 5/8                     48 1/2
       Third Quarter...........................................                  55 9/16                    47 1/2
       Fourth Quarter..........................................                  53 11/16                   44 11/16

     Fiscal Year Ending December 31, 2000:
       First Quarter (through March 24, 2000)..................                  57 1/8                     43 9/16



        The closing sale price of SEACOR's Common Stock, as reported on the NYSE
        Composite Tape on March 24, 2000, was $56 per share. As of March 24,
        2000, there were 81 holders of record of the Common Stock.

        SEACOR has not paid any cash dividends in respect of its Common Stock
        since its inception in December 1989 and has no present intention to pay
        any such dividends in the foreseeable future. Instead, SEACOR intends to
        retain earnings for working capital and to finance the expansion of its
        business. Pursuant to the terms of the Company's $100.0 million reducing
        revolving credit facility with Den norske Bank ASA (the "DnB Credit
        Facility"), SEACOR may declare and pay dividends if it is in full
        compliance with the covenants contained in the DnB Credit Facility and
        no Events of Default, as defined in the DnB Credit Facility, have
        occurred and are continuing or will occur after giving effect to any
        declaration or distribution to shareholders. In addition to any
        contractual restrictions, as a holding company, SEACOR's ability to pay
        any cash dividends is dependent on the earnings and cash flows of its
        operating subsidiaries and their ability to make funds available to
        SEACOR. See "Management's Discussion and Analysis of Financial Condition
        and Results of Operations - Liquidity and Capital Resources."

        The payment of future cash dividends, if any, would be made only from
        assets legally available therefor, and would also depend on the
        Company's financial condition, results of operations, current and
        anticipated capital requirements, plans for expansion, restrictions
        under then existing indebtedness, and other factors deemed relevant by
        the Company's Board of Directors in its sole discretion.





                                       17

        ITEM 6.      SELECTED FINANCIAL DATA

                    SELECTED HISTORICAL FINANCIAL INFORMATION

        The following table sets forth, for the periods and at the dates
        indicated, selected historical and consolidated financial data for the
        Company, in thousands of dollars, except per share data. Such financial
        data should be read in conjunction with "Management's Discussion and
        Analysis of Financial Condition and Results of Operations" and the
        Consolidated Financial Statements of the Company included in Parts II
        and IV, respectively, of this Annual Report on Form 10-K.


                                                                                YEAR ENDED DECEMBER 31,
                                                        ------------------------------------------------------------------------
                                                           1995           1996           1997           1998           1999
                                                        ------------   ------------   ------------   ------------   ------------
                                                                                                   
INCOME STATEMENT DATA:
Operating revenue:
   Marine............................................   $    104,894   $    193,557   $    325,009   $    359,611   $    258,705
   Other.............................................         21,765         30,887         21,939         26,180         30,720
                                                        ------------   ------------   ------------   ------------   ------------
                                                            126,659        224,444        346,948        385,791        289,425
Costs and Expenses:
   Operating expenses -
      Marine..........................................       66,205        108,043        158,175        177,236        154,947
      Other...........................................       12,223         16,625          9,318         10,486         11,839
   Administrative and general.........................       13,953         22,304         28,299         36,102         34,744
   Depreciation and amortization......................       18,842         24,967         36,538         36,449         41,282
                                                        ------------   ------------   ------------   ------------   ------------
Operating Income......................................       15,436         52,505        114,618        125,518         46,613
Net interest income (expense).........................       (4,098)        (2,155)        (1,412)         2,548         (1,835)
Gain from equipment sales or retirements, net.........        4,076          2,264         61,928         38,338          1,677
Other income (expense) (1)............................          228           (646)           569          6,492         (2,939)
                                                        ------------   ------------   ------------   ------------   ------------
Income before income taxes, minority interest,
   equity in net earnings of 50% or less owned
   companies, and extraordinary item..................       15,642         51,968        175,703        172,896         43,516
Income tax expense....................................        5,510         18,535         61,384         60,293         15,249
                                                        ------------   ------------   ------------   ------------   ------------
Income before minority interest, equity in
   net earnings of 50% or less owned
   companies, and extraordinary item..................       10,132         33,433        114,319        112,603         28,267
Minority interest in (income) loss of subsidiaries....          321            244           (301)        (1,612)         1,148
Equity  in  net   earnings  of  50%  or  less  owned            872          1,283          5,575         13,627            330
companies............................................. ------------   ------------   ------------   ------------   ------------
Income before extraordinary item......................       11,325         34,960        119,593        124,618         29,745
Extraordinary  item - gain (loss) on  extinguishment
of debt, net of tax.................................              -           (807)          (439)         1,309          1,191
                                                        ------------   ------------   ------------   ------------   ------------
Net income...........................................   $     11,325   $     34,153   $   119,154    $    125,927   $     30,936
                                                        ============   ============   ============   ============   ============
Net income per common share:
      Basic earnings per common share................   $       1.50   $       2.97   $       8.61   $       9.59   $       2.60
      Diluted earnings per common share...............          1.37           2.74           7.47           8.25           2.54

STATEMENT OF CASH FLOWS DATA:
   Cash provided by operating activities.............   $      9,939   $     58,737   $    105,548   $    122,141   $     47,872
   Cash provided by (used in) investing activities....       (78,695)      (100,120)      (215,087)      (149,202)        39,779
   Cash provided by (used in) financing activities....        53,291        161,482        135,468         27,308        (82,686)

OTHER FINANCIAL DATA:
   EBITDA (2)........................................   $     35,964   $     79,730   $    157,341   $    174,293   $     91,977

BALANCE SHEET DATA (AT PERIOD END):
   Cash and cash equivalents(3)......................   $       28,786 $    149,053   $    175,381   $    175,267   $    178,509
   Total assets......................................          350,883      636,455      1,019,801      1,257,975      1,196,991
   Total long-term debt, including current portion...          111,095      220,452        360,639        474,921        468,493
   Stockholders' equity..............................          183,464      351,071        474,014        542,782        508,130


- -------------------
            (1)  In 1998 and 1999, other income primarily includes gains or
                 losses from commodity swap transactions, the sale of marketable
                 securities, and the sale of investments in 50% or less owned
                 companies.
            (2)  As used herein, "EBITDA" is operating income plus depreciation
                 and amortization, amortization of deferred mobilization costs,
                 which is included in marine operating expenses, minority
                 interest in (income) loss of subsidiaries and equity in net
                 earnings of 50% or less owned companies, before applicable
                 income taxes. EBITDA should not be considered by an investor as
                 an alternative to net income as an indicator of the Company's
                 operating performance or as an alternative to cash flows as a
                 better measure of liquidity.
            (3)  Cash and cash equivalents exclude restricted cash in 1997,
                 1998, and 1999 of $46,983, $69,234, and $21,985, respectively,
                 and marketable securities in 1996, 1997, 1998, and 1999 of
                 $311, $160,440, $194,703, and $73,005, respectively.


                                       18

        ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                 AND RESULTS OF OPERATIONS

        OFFSHORE MARINE SERVICES

        The Company provides marine transportation, logistics, and related
        services largely dedicated to supporting offshore oil and gas
        exploration and production. Marine transportation services are provided
        through the operation, domestically and internationally, of offshore
        support vessels. The Company's vessels deliver cargo and personnel to
        offshore installations, tow and handle the anchors of drilling rigs and
        other marine equipment, support offshore construction and maintenance
        work, and provide standby safety support. The Company's vessels also are
        used for special projects, such as well stimulation, seismic data
        gathering, freight hauling, line handling, salvage, and oil spill
        emergencies. Logistics services include shorebase, marine transport, and
        other supply chain management services in support of offshore
        exploration and production operations.

        Operating revenues are affected primarily by the number of vessels
        owned, average rates per day worked and utilization of the Company's
        fleet, and the number of vessels bareboat and time chartered-in.

        Since 1994, acquisition transactions and investments in joint ventures
        that have significantly increased the size of the Company's fleet
        include: (i) 127 vessels acquired in the 1995 Graham Transaction, (ii)
        11 vessels acquired in the 1995 and 1996 CNN Transactions, (iii) 41
        vessels acquired in the 1996 McCall Transaction, (iv) 28 vessels
        acquired and equity investments in joint ventures that owned 21 vessels
        pursuant to the 1996 SMIT Transaction, (v) 24 vessels acquired in the
        1997 Galaxie Transaction, and (vi) 25 vessels constructed during 1997,
        1998, and 1999. The vessels acquired in the Graham Transaction, the
        McCall Transaction, and the Galaxie Transaction and the vessels
        constructed primarily support the oil and gas exploration and production
        industry in the U.S. Gulf of Mexico; whereas, vessels acquired in the
        1995 and 1996 CNN Transactions and the SMIT Transaction are employed in
        foreign offshore support markets. The Company also actively monitors
        opportunities to buy and sell vessels that will maximize the overall
        utility and flexibility of its fleet. Since 1994, the Company has sold
        113 vessels, and at December 31, 1999, 23 of the vessels sold were
        bareboat chartered-in. At December 31, 1999, the Company was
        constructing 2 crew and 1 anchor handling towing supply vessel that are
        expected to enter service in 2000.

        Rates per day worked and utilization of the Company's fleet are a
        function of demand for and availability of marine vessels that is
        closely aligned with the level of exploration and development of
        offshore areas. The level of exploration and development of offshore
        areas is affected by both short-term and long-term trends in oil and gas
        prices which, in turn, are related to the demand for petroleum products
        and the current availability of oil and gas resources. The table below
        sets forth rates per day worked and utilization data for the Company
        during the periods indicated.



                                                                             Year Ended December 31,
                                                            -----------------------------------------------------------
                                                                  1997                 1998                1999
                                                            ------------------   -----------------   ------------------
                                                                                            
Rates per Day Worked ($):(1)(2)
   Supply/Towing supply...............................               6,283                6,572               5,432
   Anchor handling towing supply......................              10,176               12,283              11,869
   Crew...............................................               2,291                2,701               2,493
   Standby safety.....................................               6,033                6,620               6,045
   Utility/Line handling..............................               1,381                1,904               1,691
   Geophysical, Freight, and Other....................               4,586                6,120               5,576
       Overall fleet..................................               3,598                4,254               3,929

Overall Utilization (%):(1)
   Supply/Towing supply...............................                92.3                 89.4                69.9
   Anchor handling towing supply......................                84.4                 85.8                73.5
   Crew...............................................                97.5                 93.2                83.0
   Standby safety.....................................                94.0                 99.5                74.1
   Utility/Line handling..............................                97.9                 91.6                65.9
   Geophysical, Freight, and Other....................                97.7                 99.2                55.7
       Overall fleet..................................                95.2                 91.5                73.1



          ------------

                 (1)    Rates per day worked is the ratio of total charter
                        revenue to the total number of vessel days worked. Rates
                        per day worked and overall utilization figures exclude
                        owned vessels that are bareboat chartered-out, vessels
                        owned by corporations that participate in pooling
                        arrangements with the Company, joint venture vessels,
                        and managed/operated vessels and include vessels
                        bareboat and time chartered-in by the Company.
                 (2)    Revenues for certain of the Company's vessels, primarily
                        its standby safety vessels, are earned in foreign
                        currencies, primarily British pounds sterling, and have
                        been converted to U.S. dollars at the weighted average
                        exchange rate for the periods indicated.


                                       19

        From time to time, the Company bareboat or time charters-in vessels.
        Operating revenues for vessels owned and bareboat or time chartered-in
        are incurred at similar rates. However, operating expenses associated
        with vessels bareboat and time chartered-in include charter hire
        expenses that, in turn, are included in vessel expenses, but exclude
        depreciation expense. At December 31, 1999, 28 vessels were bareboat
        chartered-in, including 23 under sale and leaseback arrangements, and no
        vessels were time chartered-in.

        The Company also bareboat charters-out vessels. Operating revenues for
        these vessels are lower than for vessels owned and operated or bareboat
        chartered-in by the Company, because vessel expenses, normally recovered
        through charter revenue, are the burden of the charterer. Operating
        expenses include depreciation expense if the vessels which are
        chartered-out are owned. At December 31, 1999, the Company had 14
        vessels bareboat chartered-out, which included 11 chartered to its joint
        ventures, entities affiliated with its joint venture operations, or the
        environmental service segment.

        The table below sets forth the Company's fleet structure at the dates
        indicated.



                                                                             At December 31,
                                                        -----------------------------------------------------------
                  Fleet Structure                             1997                 1998                1999
- -----------------------------------------------------   -----------------    -----------------   ------------------
                                                                                        
Owned..............................................             248                  225                 222
Bareboat and time chartered-in.....................              11                   27                  28
Managed............................................               1                    4                   1
Joint ventures and pool vessels(1):
    TMM Joint Venture..............................              13                   17                  14
    SMIT Joint Venture.............................              21                   18                  15
    Other Joint Ventures...........................               -                    4                   6
    SEAVEC Pool....................................               5                    5                   4
    Avian Fleet Pool (formally, Saint Fleet Pool)..               7                    7                   4
                                                        -----------------    -----------------   ------------------
      Overall Fleet................................             306                  307                 294
                                                        =================    =================   ==================


- ------------
(1)        See "Business - Joint Ventures and Pooling Arrangements."


        Vessel operating expenses are primarily a function of fleet size and
        utilization. The most significant vessel operating expense items are
        wages paid to marine personnel, maintenance and repairs, and marine
        insurance. In addition to variable vessel operating expenses, the
        offshore marine business also incurs fixed charges related to the
        depreciation of property and equipment. Depreciation is a significant
        operating cost, and the amount related to vessels is the most
        significant component.

        A portion of the Company's revenues and expenses, primarily from the
        Company's North Sea operations, are paid in foreign currencies. For
        financial statement reporting purposes, these amounts are translated
        into U.S. dollars at the weighted average exchange rates during the
        relevant period. Overall, approximately 39% of the Company's offshore
        marine operating revenues were derived from foreign operations, whether
        in U.S. dollars or foreign currencies, for the twelve months ended
        December 31, 1999.

        The Company's foreign offshore marine operations are subject to various
        risks inherent in conducting business in foreign nations. These risks
        include, among others, political instability, potential vessel seizure,
        nationalization of assets, fluctuating currency values, hard currency
        shortages, controls of currency exchange, the repatriation of income or
        capital, import-export quotas, and other forms of public and
        governmental regulation, all of which are beyond the control of the
        Company. Although, historically, the Company's operations have not been
        affected materially by such conditions or events, it is not possible to
        predict whether any such conditions or events might develop in the
        future. The occurrence of any one or more of such conditions or events
        could have a material adverse effect on the Company's financial
        condition and results of operations.

        Regulatory drydockings, which are a substantial component of marine
        maintenance and repair costs, are expensed when incurred. Under
        applicable maritime regulations, vessels must be drydocked twice in a
        five-year period for inspection and routine maintenance and repair. The
        Company follows an asset management strategy pursuant to which it defers
        required drydocking of selected marine vessels and voluntarily removes
        these marine vessels from operation during periods of weak market
        conditions and low rates per day worked. Should the Company undertake a
        large number of drydockings in a particular fiscal quarter or fiscal
        year or drydock and repair a disproportionate number of older vessels,
        which typically have higher drydocking costs, comparative results may be
        affected. For the years ended December 31, 1999, 1998, and 1997,
        drydocking costs totaled $5.5 million, $10.8 million, and $11.6 million,
        respectively. During those same periods, the Company completed the
        drydocking of 81, 95, and 109 marine vessels, respectively.

        As of December 31, 1999, the average age of vessels owned by the Company
        was approximately 14.1 years. Excluding the Company's standby safety
        vessels, the average age of the Company's fleet was approximately 13.7
        years. The Company believes that after offshore support vessels have
        been in service for approximately 25 years (20 years for crewboats), the
        level of expenditures (which typically increase with vessel age)
        necessary to satisfy required marine certification standards may not be


                                       20

        economically justifiable. There can be no assurance that the Company
        will be able to maintain its fleet by extending the economic life of
        existing vessels or acquiring new or used vessels, or that the Company's
        financial resources will be sufficient to enable it to make capital
        expenditures for such purposes.
        Operating results are also affected by the Company's participation in
        the following joint ventures: (i) the Veesea Joint Venture, a majority
        owned subsidiary which operated 11 standby safety vessels in the North
        Sea at December 31, 1999; (ii) the SEAVEC Pool and Avian Fleet Pool
        which coordinate the marketing of 19 standby safety vessels in the North
        Sea, of which 11 were owned by the Veesea Joint Venture at December 31,
        1999; (iii) the TMM Joint Venture which operated 19 offshore marine
        vessels in Mexico at December 31, 1999, including 5 bareboat or time
        chartered-in from the Company; (iv) the SMIT Joint Ventures which
        operated 16 offshore marine vessels in the Far East, Latin America, the
        Middle East, and the Mediterranean at December 31, 1999; (v) the Vision
        Joint Venture, a majority owned subsidiary which operated 1 offshore
        marine vessel in the U.S. Gulf of Mexico at December 31, 1999; (vi) the
        Logistics Joint Venture, which provides shorebase, marine transport, and
        other supply chain management services, and (vii) Other Joint Ventures
        which operated 8 offshore marine vessels in Latin America, the
        Mediterranean, the Far East and the U.S. Gulf of Mexico. See "Business -
        Joint Ventures and Pooling Arrangements."

        On December 2, 1999, Energy Logistics, Inc. acquired all of the
        outstanding common shares of Liberty for $1.9 million, subject to
        certain adjustments as defined in the associated stock purchase
        agreement. To finance the transaction, Energy Logistics, Inc. sold
        additional shares of its common stock to the Company for $0.7 million,
        borrowed $1.2 million from the Company, and used existing cash balances.
        The Company's ownership interest in Energy Logistics, Inc. rose to 67%
        following its recent share acquisition, and from December 1999, the
        financial condition, results of operations, and cash flows of ELI are
        reflected in the Company's consolidated financial statements. Prior to
        December 1999, the Company reported its equity interest in Energy
        Logistics, Inc. as an investment in a 50% or less owned company that was
        accounted for by the equity method.

        On February 9, 2000, the Company announced that it signed a letter of
        intent to acquire all of the issued share capital of Boston Putford.
        Boston Putford's standby safety vessels, certain joint venture interests
        and vessels, and fixed assets will be acquired for aggregate
        consideration of approximately (pound)19.0 million. Boston Putford will
        also receive aggregate consideration of approximately (pound)5.0 million
        for working capital in the companies at closing. The purchase
        consideration will consist of (pound)15.0 million in cash, approximately
        84,000 shares of Common Stock, approximately (pound)9.1 million in five
        year zero coupon notes having a current value of (pound)6.2 million, and
        the assumption of certain liabilities. The final purchase price is
        subject to certain closing adjustments. Boston Putford's standby safety
        fleet, including vessels held in joint ventures but excluding vessels
        managed for third parties, consists of 18 vessels operating primarily in
        the southern U.K. sector of the North Sea. Consummation of the
        transaction is also subject to satisfactory completion of due diligence,
        execution of definitive documentation, and receipt of all necessary
        regulatory approvals and compliance with appropriate procedures in the
        United States and the United Kingdom. The Company expects to consolidate
        its standby safety services in the U.K. sector of the North Sea into the
        Boston Putford operations following completion of its acquisition of
        Boston Putford.

        ENVIRONMENTAL SERVICES

        The Company's environmental service business provides contractual oil
        spill response and other related training and consulting services. The
        Company's clients include tank vessel owner/operators, refiners and
        terminal operators, exploration and production facility operators, and
        pipeline operators. The Company charges a retainer fee to its customers
        for ensuring by contract the availability (at predetermined rates) of
        its response services and equipment. Retainer services include employing
        a staff to supervise response to an oil spill emergency and maintaining
        specialized equipment, including marine equipment, in a ready state for
        emergency and spill response as contemplated by response plans filed by
        the Company's customers in accordance with OPA 90 and various state
        regulations. The Company maintains relationships with numerous
        environmental sub-contractors to assist with response operations and
        equipment maintenance and provide trained personnel for deploying
        equipment in a spill response.

        Pursuant to retainer agreements entered into with the Company, certain
        vessel owners pay in advance to the Company an annual retainer fee based
        upon the number and size of vessels in each such owner's fleet and in
        some circumstances pay the Company additional fees based upon the level
        of each vessel owner's voyage activity in the U.S. The Company
        recognizes the greater of revenue earned by voyage activity or the
        portion of the retainer earned in each accounting period. Certain vessel
        and facility owners pay a fixed fee or a fee based on volume of
        petroleum product transported for the Company's retainer services and
        such fee is recognized ratably throughout the year. The Company's
        retainer agreements with vessel owners generally range from one to three
        years while retainer arrangements with facility owners are as long as
        ten years.

        Spill response revenue is dependent on the magnitude of any one spill
        response and the number of spill responses within a given fiscal period.


                                       21

        Consequently, spill response revenue can vary greatly between comparable
        periods and the revenue from any one period is not indicative of a trend
        or of anticipated results in future periods. Costs of oil spill response
        activities relate primarily to (i) payments to sub-contractors for
        labor, equipment and materials, (ii) direct charges to the Company for
        equipment and materials, (iii) participation interests of others in
        gross profits from oil spill response, and (iv) training and exercises
        related to spill response preparedness.

        The Company charges consulting fees to customers for customized training
        programs, its planning of and participation in customer oil spill
        response drill programs and response exercises, and other special
        projects.

        The principal components of the Company's operating costs are salaries
        and related benefits for operating personnel, payments to
        sub-contractors, equipment maintenance, and depreciation. These expenses
        are primarily a function of regulatory requirements and the level of
        retainer business. Operating results are also affected by NRC's
        participation in CPA on the West Coast of the United States.

        DRILLING SERVICES

        The Company's drilling service business is conducted through Chiles
        Offshore, a 58.3% majority owned subsidiary. From inception and until
        July 1999, Chiles operated as a development stage company, devoting
        substantially all its efforts constructing two mobile offshore drilling
        rigs, raising capital, and securing contracts for the Rigs. In 1997,
        Chiles commenced construction of two premium jackup mobile offshore
        drilling rigs, the Chiles Columbus and the Chiles Magellan, which were
        delivered to Chiles in May 1999 and October 1999, respectively.

        The drilling service segment's operating revenues are affected by rates
        per day worked and utilization of the Rigs. The rates per day worked and
        utilization of the Rigs are a function of demand for and availability of
        rigs, which are closely aligned with the level of exploration and
        development of offshore areas. The level of exploration and development
        of offshore areas is affected by both short-term and long-term trends in
        oil and gas prices which, in turn, are related to the demand for
        petroleum products and the current availability of oil and gas
        resources.

        The drilling service segment's operating expenses are primarily a
        function of fleet size and utilization. The most significant variable
        operating expenses for the Rigs are compensation and related expenses
        for personnel, maintenance and repairs, supplies, and insurance. In
        addition to variable operating expenses, the drilling service segment
        also incurs fixed charges related to the depreciation of property and
        equipment. Depreciation is a significant fixed operating charge and the
        amount related to the Rigs is the most significant component.

        The Chiles Columbus was placed in service in June 1999. At December 31,
        1999, it was operating under a multi-well contract in the U.S. Gulf of
        Mexico. If all wells currently planned by the customer of the Chiles
        Columbus are drilled, work is expected to continue through the third
        quarter of 2000. The Chiles Magellan was placed in service in November
        1999. At December 31, 1999, it was operating in the U.S. Gulf of Mexico
        under a drilling contract with expected completion in February 2000.
        Following this project, the Chiles Magellan is contracted to provide
        additional drilling services in the U.S. Gulf of Mexico with expected
        completion in June 2000 (the "Magellan Contract"). Under the terms of
        the Magellan Contract, Chiles received a $1.5 million advance deposit
        from the customer against expected contractual revenues under the
        Magellan Contract. Failure of the Chiles Magellan to be available in
        accordance with certain terms and conditions of the Magellan Contract
        could obligate Chiles to return the $1.5 million advance deposit to its
        customer. After an initial well, the customer under the Magellan
        Contract has certain options to use the Chiles Magellan, under certain
        circumstances, for additional wells in the same area for a specified
        period of time at the then-current market rates. Chiles has also entered
        into arrangements for the deferral, until October 2000, of certain
        vendor payments totaling $3.5 million with respect to the construction
        of the Rigs.

        Chiles has recently entered into a Bareboat Charter Agreement
        ("Charter") for a rig ("Chartered Rig") constructed for the owner at a
        U.S. shipyard. The Chartered Rig is similar in class to the Rigs owned
        by Chiles. The Charter commenced in January 2000 upon delivery of the
        Chartered Rig from the shipyard. Chiles is presently commissioning the
        Chartered Rig in preparation for service in the U.S. Gulf of Mexico to
        start in the second quarter of 2000.

        Since delivery of the Rigs in 1999 and through December 31, 1999,
        utilization and average day rates were 99.4% and $29,900, respectively.


                                       22

        RESULTS OF OPERATIONS

        The following table sets forth operating revenue and operating profit by
        the Company's various business segments for the periods indicated, in
        thousands of dollars. The Company evaluates the performance of each
        operating segment based upon the operating profit of the segment
        including gains or losses from equipment sales and retirements and the
        sale of interest in 50% or less owned companies and equity in the net
        earnings of 50% or less owned companies, but excluding minority interest
        in income or loss of subsidiaries, interest income and expense, gains or
        losses from commodity swap transactions and the sale of marketable
        securities, corporate expenses, and income taxes. Operating profit is
        defined as Operating Income as reported in the Consolidated Statements
        of Income included in Part IV of this Annual Report on Form 10-K net of
        corporate expenses and certain other income and expense items. The
        disaggregation of financial results has been prepared using a management
        approach. Segment assets exclude those considered by the Company to be
        of a corporate nature. Corporate assets include SEACOR and its wholly
        owned subsidiaries' unrestricted cash, marketable securities, certain
        other assets, and property and equipment related to corporate
        operations. Information disclosed in the tables presented below may
        differ from separate financial statements reported by subsidiaries of
        the Company due to certain elimination entries required in
        consolidation.



                                                                                                  Corporate
                                                    Marine      Environmental     Drilling      and Other        Total
                                                 ------------  --------------  -------------  -------------  ------------
                                                                                               
1999
Operating Revenues -
  External Customers.............................$   258,177   $       22,659   $      7,651  $         938(a)$   289,425
  Intersegment...................................        528              161              -           (689)            -
                                                 ------------  --------------  -------------  -------------  ------------
   Total.........................................$   258,705   $       22,820   $      7,651  $         249  $    289,425
                                                 ============  ==============  =============  =============  ============
Operating Profit (Loss)..........................$    46,158   $        4,801   $       (585) $         144  $     50,518
Gains from Equipment Sales or Retirements, net...      1,661               16              -              -         1,677
Loss from Sale of Interest in a 50% or Less
Owned Company....................................        (72)               -              -              -           (72)
Equity in Net Earnings (Losses) of 50% or
  Less Owned Companies...........................      4,906              814              -         (3,107)        2,613
Minority Interest in Loss of Subsidiaries........          -                -              -          1,148         1,148
Net Interest Expense.............................          -                -              -         (1,835)       (1,835)
Losses from Commodity Swap Transactions, net.....          -                -              -         (1,323)       (1,323)
Losses from Sale of Marketable Securities, net...          -                -              -           (279)         (279)
Corporate Expenses...............................          -                -              -         (5,169)       (5,169)
Income Taxes.....................................          -                -              -        (17,533)      (17,533)
                                                 ------------  --------------  -------------  -------------  ------------
    Income (Loss) before Extraordinary Item......$    52,653   $        5,631   $       (585) $     (27,954) $     29,745
                                                 ============  ==============  =============  =============  ============
Investments, at Equity, and Receivables from 50%
  or Less Owned Companies........................$    41,989   $        1,288   $          -  $      33,999  $     77,276
Other Segment Assets.............................    621,197           27,650        199,294              -       848,141
                                                 ------------  --------------  -------------  -------------  ------------
  Subtotal Segment Assets........................    663,186           28,938        199,294         33,999       925,417
Corporate........................................          -                -              -        271,574       271,574
                                                 ------------  --------------  -------------  -------------  ------------
    Total Assets.................................$   663,186   $       28,938   $    199,294  $     305,573  $  1,196,991
                                                 ============  ==============  =============  =============  ============
Depreciation and Amortization....................$    34,936   $        3,815   $      2,478  $          53  $     41,282
=========================================================================================================================
1998
Operating Revenues -
  External Customers.............................$   359,611   $       26,180   $          -  $           -  $    385,791
  Intersegment...................................          -                -              -              -             -
                                                 ------------  --------------  -------------  -------------  ------------
   Total.........................................$   359,611   $       26,180   $          -  $           -  $    385,791
                                                 ============  ==============  =============  =============  ============
Operating Profit (Loss)..........................$   127,403   $        4,479   $       (823) $           -  $    131,059
Gains from Equipment Sales or Retirements, net...     38,227              111              -              -        38,338
Gain from Sale of Interest in a 50% or Less
Owned Company....................................      1,197                -              -              -         1,197
Equity in Net Earnings of 50% or Less Owned
Companies........................................     13,657              554              -              -        14,211
Minority Interest in Income of Subsidiaries......          -                -              -         (1,612)       (1,612)
Net Interest Income..............................          -                -              -          2,548         2,548
Gains from Commodity Swap Transactions, net......          -                -              -          3,273         3,273
Gains from Sale of Marketable Securities, net....          -                -              -          1,827         1,827
Corporate Expenses...............................          -                -              -         (5,344)       (5,344)
Income Taxes.....................................          -                -              -        (60,879)      (60,879)
                                                 ------------  --------------  -------------  -------------  ------------
    Income (Loss) before Extraordinary Item......$   180,484   $        5,144  $        (823) $     (60,187) $    124,618
                                                 ============  ==============  =============  =============  ============
Investments, at Equity, and Receivables from 50%
  or Less Owned Companies........................$    54,954   $          524  $           -  $           -  $     55,478
Other Segment Assets.............................    770,614           29,103        177,832              -       977,549
                                                 ------------  --------------  -------------  -------------  ------------
  Subtotal Segment Assets........................    825,568           29,627        177,832              -     1,033,027
Corporate........................................          -                -              -        224,948       224,948
                                                 ------------  --------------  -------------  -------------  ------------
    Total Assets.................................$    825,568  $       29,627  $     177,832  $     224,948  $  1,257,975
                                                 ============  ==============  =============  =============  ============
Depreciation and Amortization....................$     32,534  $        3,846  $          56  $          13  $     36,449
=========================================================================================================================




                                       23



                                                                                               Corporate
                                                    Marine       Environmental    Drilling      and Other        Total
                                                 ------------   -------------  -------------  -------------  -------------
                                                                                              
 1997
 Operating Revenues -
   External Customers............................$    325,009   $      21,939  $           -  $           -  $     346,948
   Intersegment..................................           -               -              -              -              -
                                                 ------------   -------------  -------------  -------------  -------------
    Total........................................     325,009   $      21,939  $           -  $           -  $     346,948
                                                 ============   =============  =============  =============  =============

 Operating Profit                                $    115,818   $       3,029  $       (382)  $           -  $     118,465
 (Loss).............................
 Gains (Losses) from Equipment Sales or                62,027             (99)             -              -         61,928
 Retirements, net................................
 Equity in Net Earnings of 50% or Less Owned            5,656             771              -              -          6,427
 Companies.......................................
 Minority Interest in Income of Subsidiaries.....           -               -              -           (301)          (301)
 Net Interest Expense............................           -               -              -         (1,412)        (1,412)
 Corporate Expenses..............................           -               -              -         (3,278)        (3,278)
 Income Taxes....................................           -               -              -        (62,236)       (62,236)
                                                 ------------   -------------  -------------  -------------  -------------
     Income (Loss) before Extraordinary Item.....$    183,501   $       3,701  $        (382) $     (67,227) $     119,593
                                                 ============   =============  =============  =============  =============
 Investments, at Equity, and Receivables from 50%
   or Less Owned Companies.......................$     37,151   $       1,219  $           -  $           -  $      38,370
 or Less Owned Companies.........................
 Other Segment Assets............................     702,449          32,861         67,398              -        802,708
                                                 ------------   -------------  -------------  -------------  -------------
   Subtotal Segment Assets.......................     739,600          34,080         67,398              -        841,078
 Corporate.......................................           -               -              -        178,723        178,723
                                                 ------------   -------------  -------------  -------------  -------------
     Total Assets................................$    739,600   $      34,080  $      67,398  $     178,723  $   1,019,801
                                                 ============   =============  =============  =============  =============

 Depreciation and Amortization...................$     32,914   $       3,563  $           6  $          55  $      36,538
==========================================================================================================================


            (a)  Includes the operating revenues of the Company's
                 telecommunications business, Marinet (hereinafter defined),
                 that was acquired in April 1999 and sold effective July 1,
                 1999.


        Revenues attributed to geographic areas were based upon the country of
        domicile for offshore marine service segment customers and the country
        in which the Company provided oil spill protection or other related
        training and consulting services for environmental service segment
        customers. The Company considers long-lived assets to be property and
        equipment that has been distributed to geographical areas based upon the
        assets' physical location during the applicable period. Certain of the
        Company's offshore marine service segment's long-lived vessel assets
        relocate between its geographical areas of operation. The costs of
        long-lived vessel assets that are relocated have been allocated between
        geographical areas of operation based upon length of service in the
        applicable region. The following table is presented in thousands of
        dollars.



                                                                       United           Other
                                   United States      Nigeria          Kingdom         Foreign           Total
                                   --------------   -------------   --------------   -------------   --------------
                                                                                      
1999:
Revenue........................ $       186,673  $        19,324 $        24,643  $        58,785 $       289,425
Long-Lived Assets..............         550,106           40,486          33,083           91,522         715,197
1998:
Revenue........................         234,651           30,655          28,524           91,961         385,791
Long-Lived Assets..............         406,945           47,257          31,416          139,243         624,861
1997:
Revenue........................         216,513           25,318          39,099           66,018         346,948
Long-Lived Assets..............         262,309           42,888          42,213          135,524         482,934



        COMPARISON OF FISCAL YEAR 1999 TO FISCAL YEAR 1998

        OFFSHORE MARINE SERVICES

        OPERATING REVENUE. The Company's offshore marine service segment's
        operating revenues decreased $100.9 million, or 28.1%, in the twelve
        month period ended December 31, 1999 compared to the twelve month period
        ended December 31, 1998 due primarily to lower utilization and rates per
        day worked and the sale of vessels. The adverse effect of reduced
        drilling and production support activities due to declines in oil and
        gas prices was partially offset by an increase in operating revenues
        resulting from the entry into service of vessels both constructed for
        and chartered-in by the Company.

        Operating revenues declined approximately $71.2 million in the twelve
        month period ended December 31, 1999 compared to the twelve month period
        ended December 31, 1998 due to lower vessel utilization. Demand for all
        classes of the Company's U.S. Gulf of Mexico fleet was adversely
        affected and declines in demand for its supply/towing supply and utility
        vessels were particularly significant. The Company's domestic fleet
        utilization ranged from 68.9% to 79.0% throughout 1999 and averaged
        75.4% in December; whereas, in 1998, utilization ranged from 82.8% to
        97.2%. Utilization of the Company's offshore West Africa supply/towing
        and anchor handling towing supply, North Sea standby safety, and Far
        East and Other Foreign regions anchor handling towing supply and
        supply/towing supply vessels also declined. Utilization of the Company's
        vessels operating offshore West Africa was 84.9% in 1998 compared to
        60.9% in 1999. North Sea standby safety vessel utilization was 99.5% in
        1998 compared to 74.1% in 1999, and in the Far East and Other Foreign
        regions, utilization declined from 85.6% in 1998 to 76.0% in 1999.

        Operating revenues declined approximately $32.8 million in the twelve
        month period ended December 31, 1999 compared to the twelve month period


                                       24

        ended December 31, 1998 due to declines in rates per day worked of the
        Company's worldwide fleet. Approximately 60% of the decrease resulted
        from lower rates per day worked of the Company's domestic fleet of
        supply/towing supply, crew, and utility vessels. Rates per day worked of
        the Company's domestic supply/towing supply vessels declined sharply,
        averaging $7,000 during the first quarter of 1998 compared to $4,275 in
        the fourth quarter of 1999. Rates per day worked also declined for the
        Company's offshore West Africa anchor handling towing supply and
        supply/towing supply, Far East and Other Foreign anchor handling towing
        supply, and North Sea standby safety and supply/towing supply vessels.

        Vessels removed from the Company's operations due to their sale or the
        cancellation of certain charter-in agreements resulted in an approximate
        $27.6 million decline in operating revenues between years. The entry
        into operation of vessels constructed for the Company or chartered-in
        increased operating revenues by approximately $36.5 million between
        years. Revenues also declined between years as certain vessels
        previously operated by the Company have been bareboat chartered-out.

        OPERATING PROFIT. The Company's offshore marine business segment's
        operating profit declined $81.2 million, or 63.8%, in the twelve month
        period ended December 31, 1999 compared to the twelve month period ended
        December 31, 1998 due primarily to those factors adversely affecting
        operating revenues outlined above. Operating profits were also adversely
        affected between comparable years due to an increase in foreign currency
        translation losses resulting from the revaluation of Dutch Guilder cash
        deposits during periods of a strengthening U.S. dollar. At December 31,
        1999, weak demand and low rates per day worked resulted in the Company
        removing 46 vessels from service, including 27 that require drydocking
        prior to re-entering operation. The vessels removed from service were
        primarily from the utility fleet that operated in the U.S. Gulf of
        Mexico. Performance based compensation expense for administrative
        personnel declined between comparable years in response to declining
        profits. Operating costs also declined between years as bad debt
        expenses recognized in 1998 did not recur in 1999, and the Company
        recovered certain receivables written-off in prior periods.

        GAINS (LOSSES) FROM EQUIPMENT SALES AND RETIREMENTS, NET. Net gains from
        equipment sales and retirements decreased $36.6 million in the twelve
        month period ended December 31, 1999 compared to the twelve month period
        ended December 31, 1998 due to fewer and less valuable vessel sales. In
        the twelve month period ended December 31, 1999, the Company sold 14
        vessels; whereas, during the fiscal year 1998, the Company sold 34
        vessels. During 1999, the Company sold 11 crew, 2 utility, and 1 anchor
        handling towing supply vessel. In 1998, 8 towing supply, 8 anchor
        handling towing supply, 7 utility, 6 supply, and 5 crew vessels were
        sold. Of the vessels sold in 1999 and 1998, 5 and 11, respectively, were
        subsequently bareboat chartered-in pursuant to sale and leaseback
        transactions, and certain of the gains realized from those sales were
        deferred and are being credited to income as reductions in rental
        expense over the life of the respective bareboat charters.

        EQUITY IN NET EARNINGS OF 50% OR LESS OWNED COMPANIES. Equity earnings
        declined $8.8 million in the twelve month period ended December 31, 1999
        compared to the twelve month period ended December 31, 1998 due
        primarily to: (i) reduced drilling and production activities that
        resulted from declines in oil and gas prices, (ii) lower gains from less
        valuable vessel sales, (iii) reduced fleet size in the SMIT Joint
        Ventures resulting from vessel sales, and (iv) increased trade accounts
        receivable bad debt reserves with respect to customers of the TMM Joint
        Venture.

        In 1999, the Board of Directors of one of the SMIT Joint Ventures
        adopted a plan of liquidation due to such venture's limited
        opportunities for future investments and growth and the Company received
        a $10.0 million liquidating dividend. The SMIT joint venture to be
        liquidated was structured in 1996 pursuant to the SMIT Transaction and
        commenced operations with nine owned vessels. This joint venture shall
        continue operations until such time as its remaining fleet (three
        vessels at December 31, 1999) can be sold or otherwise liquidated. With
        respect to the Company's equity interest in the earnings of the SMIT
        joint venture to be liquidated, the Company has recorded $3.0 million of
        income tax expense in 1999. In prior periods, no income tax expense was
        recorded in connection with this foreign joint venture's operations in
        accordance with Statement of Financial Accounting Standards No. 109,
        "Accounting for Income Taxes."

        ENVIRONMENTAL SERVICES

        OPERATING REVENUE. The environmental service segment's operating
        revenues decreased $3.4 million, or 12.8%, in the twelve month period
        ended December 31, 1999 compared to the twelve month period ended
        December 31, 1998. The decrease was due primarily to a decline in the
        number and severity of oil spills managed by the Company and reduced
        retainer revenues that resulted from the loss of a large customer.

        OPERATING PROFIT. The environmental service segment's operating profit
        increased $0.3 million, or 7.2%, in the twelve month period ended
        December 31, 1999 compared to the twelve month period ended December 31,
        1998. Declines in operating revenues were offset by the Company's
        reduction in operating and general and administrative expenses.


                                       25

        EQUITY IN NET EARNINGS OF 50% OR LESS OWNED COMPANIES. Equity earnings
        increased $0.3 million in the twelve month period ended December 31,
        1999 compared to the twelve month period ended December 31, 1998 due
        primarily to an increase in the oil spill response activities of CPA.
        DRILLING SERVICES

        The Chiles Columbus was placed in service during June 1999 and the
        Chiles Magellan was placed in service during November 1999. Prior to
        such time, and since inception, Chiles has not engaged in operations
        other than managing construction of the Rigs and related matters. With
        the delivery and commissioning of the two Rigs, Chiles generated
        operating revenues of $7.7 million. Chiles has incurred operating losses
        since its inception in 1997.

        OTHER

        EQUITY IN NET EARNINGS OF 50% OR LESS OWNED COMPANIES. Equity losses in
        the twelve month period ended December 31, 1999 resulted primarily from
        the Company's recognition of its share of the operating losses of Globe
        Wireless. Due to an ability to significantly influence the operating
        activities of Globe Wireless, the Company began accounting for its
        investment in Globe Wireless under the equity method during the second
        quarter of 1999. Prior to this time, the Company carried its investment
        in Globe Wireless at cost. See "Liquidity and Capital Resources - Globe
        Wireless Investment."

        NET INTEREST INCOME (EXPENSE). In the twelve month period ended December
        31, 1999, the Company incurred net interest expense; whereas, in
        comparable periods of 1998, the Company realized net interest income.
        Between comparable periods, funds invested in interest bearing
        securities declined due primarily to the Company's use of cash for the
        purchase of property and equipment, Common Stock, and the retirement of
        certain indebtedness. The decrease in interest income was partially
        offset by a decline in interest costs that resulted primarily from the
        Company's debt repurchase program and entry into swap agreements. See
        "Liquidity and Capital Resources - Stock and Debt Repurchase Program and
        Certain Credit Facilities and Financial Instruments," below.

        GAINS (LOSSES) FROM COMMODITY SWAP TRANSACTIONS, NET. In the twelve
        month period ended December 31, 1999, the Company recognized a net loss
        of $1.3 million from commodity price hedging arrangements; whereas, in
        the twelve month period ended December 31, 1998, the Company recognized
        a net gain of $3.3 million. In 1999, the net loss was due primarily to
        the settlement prices quoted on the New York Mercantile Exchange
        ("NYMEX") exceeding the contract prices for various natural gas and
        crude oil positions; whereas, during 1998, the net gain was due
        primarily to the contract prices exceeding the settlement prices quoted
        on the NYMEX for various natural gas positions. See Item 7A
        "Quantitative and Qualitative - Disclosures About Market Risks" for
        additional discussion of the Company's commodity price hedging
        arrangements.

        GAINS (LOSSES) FROM SALE OF MARKETABLE SECURITIES, NET. In the twelve
        month period ended December 31, 1999, losses resulted primarily from the
        sale of interest bearing securities during periods when interest rates
        exceeded those in effect at date of purchase. These losses were
        substantially offset by gains realized from the sale of other marketable
        securities. In the twelve months ended December 31, 1998, gains resulted
        primarily from the sale of interest bearing securities during periods
        when interest rates were lower than those in effect at date of purchase.

        CORPORATE EXPENSES. In the twelve month period ended December 31, 1999
        compared to the twelve month period ended December 31, 1998, corporate
        expenses declined $0.2 million due primarily to a reduction in
        performance based compensation expense in response to declining profits.

        COMPARISON OF FISCAL YEAR 1998 TO FISCAL YEAR 1997

        OFFSHORE MARINE SERVICES

        OPERATING REVENUE. The Company's offshore marine service segment's
        operating revenues increased $34.6 million in the twelve month period
        ended December 31, 1998 compared to the twelve month period ended
        December 31, 1997. The increase was due primarily to higher rates per
        day worked by many of the Company's vessels operating domestically and
        in foreign regions. Domestic revenue rose due to improvements in rates
        per day worked and vessel acquisitions partially offset by vessel
        dispositions, a decline in the utilization of supply/towing supply,
        crewboats, and utility vessels, and the relocation of vessels to work
        offshore West Africa and in other foreign regions. Revenues earned from
        the Company's operations offshore West Africa rose due primarily to the
        relocation of vessels into the region, improved rates per day worked,
        additional chartered-in vessels, and vessel acquisitions partially
        offset by vessel dispositions. Revenues earned from the Company's
        operations in the Far East and Latin America rose due primarily to
        higher rates per day worked, additional chartered-in vessels, and vessel
        acquisitions offset by vessel dispositions and the relocation of
        equipment to offshore West Africa. Revenues earned from the Company's
        operations in the North Sea declined due to vessel dispositions and the


                                       26

        relocation of vessels to other foreign regions offset by the effect of
        higher rates per day worked.

        OPERATING PROFIT. The Company's offshore marine service segment's
        operating profit increased $11.6 million in the twelve month period
        ended December 31, 1998 compared to the twelve month period ended
        December 31, 1997. The increase was due to factors affecting operating
        revenue as outlined above offset by higher costs associated with (i)
        crew wages, (ii) administration (as discussed below), (iii) repairs and
        maintenance, (iv) bareboat and time charters-in, (v) a vessel
        construction contract cancellation, and (vi) crew travel. Domestic and
        foreign crew wages rose in response to competition for qualified
        personnel in an active offshore market. Main engine and hull repair
        costs rose primarily in response to greater running time of the
        Company's crewboats. Electronic and communication costs rose due to the
        installation and use of additional communication equipment aboard
        vessels working domestically and in foreign regions. Bareboat charter
        expense rose domestically in connection with the Company's sale and
        leaseback of 19 vessels. Charter expense also rose in foreign operations
        due to the addition of vessels to the Company's fleet. Certain fees and
        expenses were incurred domestically pursuant to the cancellation of a
        contract for the construction of a supply vessel. Crew travel expenses
        rose due primarily to the relocation of vessels from domestic to foreign
        markets and an increase in the frequency of crew rotation aboard other
        vessels working offshore West Africa. These cost increases were offset
        by a decline in domestic drydocking expenses due primarily to the
        disposition and drydock deferral of certain vessels.

        GAINS (LOSSES) FROM EQUIPMENT SALES AND RETIREMENTS, NET. Net gains from
        equipment sales and retirements decreased $23.8 million in the twelve
        month period ended December 31, 1998 compared to the twelve month period
        ended December 31, 1997. During 1998, net gains from equipment sales and
        retirements aggregated $38.2 million, resulting primarily from the sale
        of 34 offshore marine vessels: 8 towing supply (3 of which were bareboat
        chartered-in), 8 anchor handling towing supply (3 of which were bareboat
        chartered-in), 7 utility, 6 supply (5 of which were bareboat
        chartered-in), and 5 crew. During 1997, net gains from equipment sales
        and retirements aggregated $62.0 million, resulting primarily from the
        sale of 37 offshore marine vessels: 15 supply (7 of which were bareboat
        chartered-in), 6 towing supply, 5 anchor handling towing supply (1 of
        which was bareboat chartered-in), 7 utility, 2 crew, 1 freight, and 1
        seismic. The decrease in gains between comparable periods was due
        primarily to a decline in the number of offshore marine vessels sold and
        the increase in the deferral of gains associated with sale and leaseback
        transactions. In accordance with generally accepted accounting
        principles, gains from sale and leaseback transactions are deferred to
        the extent of the present value of minimum lease payments and are
        credited to income as a reduction in rental expense over the applicable
        lease terms.

        EQUITY IN NET EARNINGS OF 50% OR LESS OWNED COMPANIES. Equity earnings
        from 50% or less owned companies increased $8.0 million in the twelve
        month period ended December 31, 1998 compared to the twelve month period
        ended December 31, 1997. The increase primarily related to a $2.1
        million and $1.4 million gain from the sale of an offshore marine vessel
        by the TMM Joint Venture and the SMIT Joint Ventures, respectively. The
        TMM Joint Venture's earnings also rose due to fleet expansion and higher
        revenues earned by offshore support vessels operating between comparable
        years.

        GAIN FROM SALE OF INTEREST IN A 50% OR LESS OWNED COMPANY. Gain from the
        sale of the Company's investment in a 50% or less owned company
        increased $1.2 million in the twelve month period ending December 31,
        1998 compared to the twelve month period ending December 31, 1997.
        During 1998, the Company sold its equity interest in a joint venture
        entity that provided marine and underwater services to offshore terminal
        and oilfield operations internationally. There was no comparable
        disposition of an equity interest in a 50% or less owned company during
        1997.

        ENVIRONMENTAL SERVICES

        OPERATING REVENUE. The Company's environmental service segment's
        operating revenues increased $4.2 million in the twelve month period
        ended December 31, 1998 compared to the twelve month period ended
        December 31, 1997 due primarily to oil spill, retainer, and other
        service revenue earned during 1998 as a result of the Company's
        acquisition of ERST in October 1997.

        OPERATING PROFIT. Operating profit of the Company's environmental
        service segment increased $1.4 million in the twelve month period ended
        December 31, 1998 compared to the twelve month period ended December 31,
        1997. In addition to including the results of ERST, which was acquired
        in October 1997, operating profits rose due to reduced operating costs.

        DRILLING SERVICES

        Since inception, the Company's drilling service segment has engaged in
        no operations other than managing construction of the Rigs and related
        matters. The Company has not generated any operating revenues to date.
        The drilling service business' operating loss was $0.8 million in the


                                       27

        twelve month period ending December 31, 1998 as a result of general and
        administrative and depreciation expenses.

        OTHER

        MINORITY INTEREST IN INCOME (LOSSES) OF SUBSIDIARIES. Minority interest
        in income of subsidiaries of the Company increased $1.3 million in the
        twelve month period ended December 31, 1998 compared to the twelve month
        period ended December 31, 1997 due primarily to the commencement of
        operations in June 1997 of the Vision Joint Venture.

        NET INTEREST INCOME (EXPENSE). Interest income increased $12.6 million
        in the twelve month period ended December 31, 1998 compared to the
        twelve month period ended December 31, 1997 due primarily to greater
        invested cash balances that resulted from (i) the sale in September 1997
        of the Company's 7.2% Senior Notes due 2009 ("7.2% Notes"), (ii) the
        sale of offshore marine vessels, (iii) the sale in April 1998 of $110.0
        million aggregate principal amount of Chiles' 10.0% Senior Notes Due
        2008 (the "Chiles 10.0% Notes"), and (iv) the continuing strong results
        of operations.

        Interest expense increased $8.6 million in the twelve month period ended
        December 31, 1998 compared to the twelve month period ended December 31,
        1997 due primarily to the (i) sale in September 1997 of the 7.2% Notes,
        (ii) sale in April 1998 of the Chiles 10.0% Notes, and (iii)
        amortization of debt discount recognized on indebtedness issued pursuant
        to the SMIT Additional Consideration Transaction. The increase in
        interest expense was partially offset by the capitalization of interest
        costs in connection with the construction of offshore marine vessels and
        the Rigs.

        GAINS (LOSSES) FROM COMMODITY SWAP TRANSACTIONS, NET. Gains from
        commodity swap transactions increased $3.3 million in the twelve month
        period ended December 31, 1998 compared to the twelve month period ended
        December 31, 1997. During 1998, the Company entered into natural gas
        commodity swap transactions that resulted in the recognition of a net
        gain. There were no comparable commodity swap transactions during the
        prior year. See "Liquidity and Capital Resources" for additional
        discussion of the Company's commodity swap activities.

        GAINS (LOSSES) FROM SALE OF MARKETABLE SECURITIES, NET. Gains from the
        sale of marketable securities increased $1.8 million in the twelve month
        period ended December 31, 1998 compared to the twelve month period ended
        December 31, 1997. During 1998, the Company sold certain
        available-for-sale securities that resulted in net gains from those
        transactions. No available-for-sale securities were sold during the
        prior year.

        CORPORATE EXPENSES. Corporate administrative expenses also increased
        between the comparable twelve month periods due to higher wage and legal
        costs.

        LIQUIDITY AND CAPITAL RESOURCES

        GENERAL. The Company's ongoing liquidity requirements arise primarily
        from its need to service debt, fund working capital, acquire, construct,
        or improve equipment and make other investments. Management believes
        that cash flow from operations will provide sufficient working capital
        to fund the Company's operating needs. The Company may, from time to
        time, issue shares of Common Stock, preferred stock, debt, or a
        combination thereof, or sell vessels to finance the acquisition of
        equipment and businesses or make improvements to existing equipment.

        The Company's cash flow levels and operating revenues are determined
        primarily by the size of the Company's offshore marine and rig fleet,
        rates per day worked and overall utilization of the Company's offshore
        marine vessels and rigs, as well as retainer, spill response, and
        consulting activities of the Company's environmental service business.
        The Company's marine and drilling service businesses are directly
        affected by the volatility of oil and gas prices, the level of offshore
        production and exploration activity, and other factors beyond the
        Company's control.

        CASH AND MARKETABLE SECURITIES. At December 31, 1999, the Company's cash
        and investments in marketable securities totaled $273.5 million,
        including $178.5 million of unrestricted cash and cash equivalents,
        $73.0 million of investments in marketable securities, and $22.0 million
        of restricted cash. The Company's cash and investments in marketable
        securities declined $165.7 million in the twelve month period ending
        December 31, 1999 compared to the twelve month period ending December
        31, 1998. See " - Cash Generation and Deployment" below.

        Restricted cash at December 31, 1999 is intended for use in defraying
        costs to construct offshore support vessels for the Company. At December
        31, 1999, the Company had funded approximately $20.4 million in offshore
        marine vessel construction costs from unrestricted cash balances, and
        subject to the Maritime Administration's approval, the Company expects
        such amounts to be reimbursed from construction reserve fund restricted
        cash accounts.

        During the years 1997 through 1999, the Company deposited proceeds from
        the sale of certain offshore support vessels into escrow and
        construction reserve fund bank accounts for purposes of acquiring newly


                                       28

        constructed U.S.-flag vessels and qualifying for the Company's temporary
        deferral of taxable gains realized from the sale of the vessels. Escrow
        accounts were established pursuant to certain exchange and escrow
        agreements and restrict the use of funds deposited therein for a period
        of six months. Should replacement offshore marine vessels not be
        delivered prior to expiration of the applicable six-month escrow period,
        funds then remaining in the escrow accounts will be released to the
        Company for general use. The Company has also established, pursuant to
        Section 511 of the Merchant Marine Act, 1936, as amended, joint
        depository construction reserve fund accounts with the Maritime
        Administration. From date of deposit, withdrawals from these accounts
        are subject to prior written approval of the Maritime Administration.
        Funds must be committed for expenditure within three years or be
        released for the Company's general use. Gains from vessel sales
        previously deferred would become immediately taxable upon release to the
        Company, for general use, of sale proceeds that were deposited into
        joint depository construction reserve fund accounts.

        During 1998, net proceeds from the sale of the Chiles 10.0% Notes were
        deposited into escrow accounts in accordance with certain escrow
        agreements between Chiles and U.S. Bank Trust National Association, as
        Escrow Agent. The use of these funds was limited to (i) partially
        funding the construction of the Rigs, (ii) paying interest on the Chiles
        10.0% Notes through the first two semi-annual interest payment dates,
        and (iii) providing working capital. At December 31, 1999, the net
        proceeds from the sale of the Chiles 10.0% Notes had been expended in
        accordance with the terms of the escrow agreements.

        Investments in marketable securities at December 31, 1999 were primarily
        comprised of debt securities issued by U.S. Government and also included
        equity securities, debt securities of the government of the United
        Kingdom, debt securities of a state of the United States, and corporate
        debt. Of the Company's investments in debt securities, approximately 80%
        have contractual maturities of five years or less.

        STOCK AND DEBT REPURCHASE PROGRAM. In 1999 and 2000, SEACOR's Board of
        Directors increased its previously announced securities repurchase
        authority by $120.0 million. The securities covered by the repurchase
        program include Common Stock, the Company's 5 3/8% Convertible
        Subordinated Notes Due 2006 (the "5 3/8% Notes") and 7.2% Notes, and the
        Chiles 10.0% Notes (collectively, the "SEACOR Securities"). In the
        twelve month period ended December 31, 1999, the Company acquired
        1,462,000 shares of Common Stock, $43.2 million principal amount of the
        Chiles 10.0% Notes, $5.2 million principal amount of the 5 3/8% Notes,
        and $2.5 million principal amount of the 7.2% Notes for an aggregate
        cost of $112.8 million. Since initiating its security repurchase program
        in 1997, the Company has acquired 2,877,300 shares of Common Stock and
        $69.0 million principal amount of the Chiles 10.0% Notes, 7.2% Notes,
        and 5 3/8% Notes, at an aggregate cost of $193.3 million as of December
        31, 1999. The Company has entered into swap agreements with respect to
        the Chiles 10.0% Notes. See " - Credit Facilities" and Item 7A
        "Quantitative and Qualitative Disclosures About Market Risks". At March
        24, 2000, the Company had $37.4 million of its Board of Directors
        authority available for the purchase of additional SEACOR Securities
        that may be conducted from time to time through open market purchases,
        privately negotiated transactions, or otherwise depending on market
        conditions.

        GLOBE WIRELESS. During April 1998, the Company entered into a financing
        arrangement with Globe, Inc., the predecessor of Globe Wireless,
        providing for potential financing from the Company aggregating $20.0
        million, comprised of $10.0 million of Globe, Inc.'s Series C
        Convertible Preferred Stock ("Series C Stock") and $10.0 million of
        senior secured promissory notes ("Promissory Notes"). Upon signing of
        the financing agreements, the Company acquired 3,288,156 shares of
        Series C Stock for $7.0 million, exchanged a note evidencing a $3.0
        million loan in 1997 for Promissory Notes, and received a warrant for
        the purchase of additional Series C Stock at an exercise price of $2.13
        per share (the "Series C Warrant"). In October 1998, the Company
        purchased an additional 1,750,000 shares of Series C Stock for $3.0
        million, renegotiated certain covenants of the April 1998 financing
        agreement, and in connection therewith, the exercise price of the Series
        C Warrant was reduced to $1.71 per share. In April 1999, the Series C
        Warrant was exchanged for a warrant to purchase Class C Preferred Units
        of Globe Wireless ("Class C Units") at an exercise price of $1.71 per
        unit (the "SEACOR Warrants"), and all of Globe, Inc.'s Series C Stock,
        including that held by the Company, was exchanged for an equivalent
        number of Class C Units. Through December 16, 1999, the Company advanced
        Globe Wireless an additional $13.7 million.

        In May 1999, SEACOR, through its wholly owned subsidiary, SEACOR Malted
        Inc., and its wholly owned subsidiary Malted Ltd., acquired all of the
        issued and outstanding stock of Marinet Systems Ltd. ("Marinet"), a
        United Kingdom based provider of communications services and equipment
        to the maritime industry. Effective July 1, 1999, Globe Wireless
        acquired all of the issued and outstanding stock of SEACOR Malted Inc.
        and its wholly owned subsidiaries for a $5.3 million note payable to the
        Company (the "Marinet Loan").

        In December 1999, Globe Wireless commenced a private placement offering
        (the "Private Placement") to raise a minimum of $34.0 million (the
        "Minimum Offering") and a maximum of $44.0 million (the "Maximum
        Offering") in additional capital for general corporate purposes,
        including capital expenditures and working capital, through the sale of
        18,565,401 Class D Preferred Units ("Class D Units") at $2.37 per unit.


                                       29

        In February 2000, the Maximum Offering was increased to $57.0 million.
        The Minimum Offering was consummated as of December 16, 1999, and in
        connection therewith, Globe Wireless issued 15,470,047 Class D Units in
        exchange for gross cash proceeds of $24.7 million and the conversion
        into Class D Units of certain advances by the Company to Globe Wireless
        and the Marinet Loan, aggregating $12.0 million. In connection with the
        consummation of the Minimum Offering, the Company exercised the SEACOR
        Warrant and purchased 7,556,667 Class C Units at the exercise price of
        $1.71 per unit from Globe Wireless in exchange for the cancellation of
        $10.0 million of Promissory Notes and the payment of $3.0 million in
        cash. In February 2000, Globe Wireless completed the Maximum Offering
        through the sale of 8,580,586 additional Class D Units in exchange for
        gross cash proceeds of $20.3 million.

        Prior to 1999, the Company carried its investment in Globe Wireless at
        cost. Due to an ability to significantly influence the operating
        activities of Globe Wireless, the Company began accounting for its
        investment in Globe Wireless under the equity method of accounting
        during the second quarter of 1999.

        CASH GENERATION AND DEPLOYMENT. Cash flow provided from operating
        activities totaled $47.9 million in fiscal year 1999 and declined $74.3
        million, or 60.8%, from the prior fiscal year due primarily to a decline
        in operating profits of the Company's offshore marine service segment
        resulting from reduced drilling and production activities.

        During fiscal year 1999, the Company generated $269.0 million from
        investing and financing activities. Available-for-sale securities were
        sold for $134.4 million. Restricted cash balances declined by $47.2
        million as withdrawals from vessel joint depository construction reserve
        fund and rig escrow accounts used to defray vessel and rig construction
        costs exceeded deposits into such accounts generated from the sale of
        equipment. Fourteen offshore support vessels were sold for $20.9
        million. Chiles borrowed $22.0 million under the Amended Chiles Bank
        Facility; the Company sold, subject to swap agreements, $18.6 million
        notional amount of the Chiles 10.0% Notes that it had previously
        reacquired, to a financial institution; and Chiles completed an offering
        of membership interests and rights to purchase membership interests, and
        the Company realized $4.3 million, net of offering cost. See " - Credit
        Facilities" and Item 7A "Quantitative and Qualitative Disclosures About
        Market Risks." Offshore marine and environmental service segment joint
        ventures distributed $11.5 million in dividends and additional cash was
        provided primarily from regularly scheduled and the accelerated
        repayment of notes receivable due from various of the Company's joint
        ventures, cash settlements on commodity swap transactions, and the
        Energy Logistics, Inc. acquisition.

        During fiscal year 1999, the Company used $311.9 million in its
        investing and financing activities. Capital expenditures for property
        and equipment, primarily Rigs and offshore support vessels, totaled
        $140.5 million. SEACOR Securities were repurchased pursuant to the Stock
        and Debt Repurchase Program for $112.8 million. Investments in and
        advances to 50% or less owned companies rose by $21.8 million due
        primarily to the Company's investment in Globe Wireless. Marketable
        securities were acquired for $15.7 million. The Company has provided
        $10.2 million of cash collateral pursuant to swap agreements for the
        Chiles 10.0% Notes, which may be released under certain conditions. The
        costs to purchase Liberty and Marinet and additional equity interest in
        Energy Logistics, Inc., net of cash acquired, totaled $6.2 million.
        Additional cash was used primarily for scheduled repayments of
        outstanding indebtedness and the purchase of other investments.

        CAPITAL EXPENDITURES. Property and equipment capital expenditures
        totaled $140.5 million, $226.8 million, and $136.1 million in 1999,
        1998, and 1997, respectively. Property additions in each of those years
        primarily related to the Company's acquisition, construction, and
        improvement of offshore support vessels, and capital expenditures in
        1999 and 1998 additionally included costs to construct the Rigs. The
        offshore marine service segment's construction program that began in
        1996 reflects the Company's continuing commitment to serve the offshore
        oil and gas industry with equipment well suited for deep water drilling
        and production activities.

        At December 31, 1999, the Company was committed to the construction of
        three offshore support vessels at an approximate aggregate cost of $30.3
        million of which $20.9 million has been expended. These vessels are
        expected to enter service in 2000.

        Joint venture corporations, in which the Company owns a 50% equity
        interest, are committed to the construction of two Handymax Dry-Bulk
        ships that are expected to enter service in 2001. The cost to construct
        and place these ships into service will approximate $39.0 million, 75%
        of which is expected to be financed from external sources. The Company
        also holds a 50% equity interest in another joint venture that is
        currently operating a Handymax Dry-Bulk vessel built in 1990.

        The Company may make selective acquisitions of offshore marine vessels
        or fleets of offshore support vessels, drilling rigs, and oil spill
        response equipment or expand the scope and nature of its environmental
        and logistics services. The Company also may upgrade or enhance its
        offshore support vessels or construct offshore support vessels to remain
        competitive in the marketplace. Management anticipates that such
        expenditures would be funded through a combination of existing cash
        balances, cash flow provided by operations, sale of existing equipment


                                       30

        and, potentially, through the issuance of additional indebtedness,
        shares of Common Stock, or the Company's preferred stock.

        CREDIT FACILITIES. On November 17, 1998, the Company entered into the
        DnB Credit Facility, as agent for itself and other lenders named
        therein, which replaced an existing revolving credit facility with Den
        norske Bank ASA. Under the terms of the DnB Credit Facility, the Company
        may borrow up to $100.0 million aggregate principal amount (the "Maximum
        Committed Amount") of unsecured reducing revolving credit loans maturing
        on November 17, 2004. The Maximum Committed Amount will automatically
        decrease semi-annually by 4.54% beginning November 17, 1999, with the
        balance payable at maturity. Outstanding borrowings will bear interest
        at annual rates ranging from 45 to 110 basis points (the "Margin") above
        LIBOR. The Margin is determined quarterly and varies based upon the
        percentage the Company's funded debt bears to earnings before interest,
        taxes, depreciation, and amortization ("EBITDA"), as defined, and/or the
        credit rating maintained by Moody's and Standard & Poor's, if any. The
        DnB Credit Facility requires the Company, on a consolidated basis, to
        maintain a minimum ratio of vessels' values to Maximum Committed Amount,
        as defined, a minimum cash and cash equivalent level, a specified
        interest coverage ratio, specified debt to capitalization ratios, and a
        minimum net worth. The DnB Credit Facility limits the amount of secured
        indebtedness which the Company and its subsidiaries may incur, provides
        for a negative pledge with respect to certain activities of the
        Company's vessel owning/operating subsidiaries, and restricts the
        payment of dividends. At December 31, 1999, the Company had
        approximately $95.0 million available for future borrowings under the
        DnB Credit Facility.

        On April 29, 1998, Chiles Offshore completed the sale of the Chiles
        10.0% Notes. Interest on the Chiles 10.0% Notes is payable semi-annually
        on May 1 and November 1 of each year commencing November 1, 1998. The
        Chiles 10.0% Notes are not redeemable at the option of Chiles Offshore
        prior to May 1, 2003, except that until May 1, 2001, Chiles Offshore may
        redeem, at its option, in the aggregate, up to 35% of the original
        principal amount of the Chiles 10.0% Notes, on a pro rata basis, with
        the net proceeds of one or more Public Equity Offerings (as defined), at
        a redemption price of 110% plus accrued interest to the redemption date;
        provided, however, that at least $71.5 million aggregate principal
        amount of the Chiles 10.0% Notes remains outstanding after each such
        redemption. On and after May 1, 2003, the Chiles 10.0% Notes may be
        redeemed at the option of Chiles Offshore, in whole or in part,
        initially at 105.0% of the principal amount thereof and declining by
        1.67% each year thereafter to 100.0% of the principal amount on and
        after May 1, 2006, plus accrued interest to the date of redemption. The
        proceeds from the issuance of the Chiles 10.0% Notes were placed in
        escrow and used to (a) partially fund the construction of Rigs, (b) pay
        interest on the Chiles 10.0% Notes through the first two semi-annual
        interest payment dates, and (c) provide working capital. All obligations
        with respect to the Chiles 10.0% Notes are limited exclusively to Chiles
        Offshore and are nonrecourse to SEACOR. Chiles Offshore incurred $4.2
        million in costs associated with the sale of the Chiles 10.0% Notes. In
        October 1999, Chiles Offshore entered into amendments to the Indenture
        governing the Chiles 10% Notes (the "Amendments") which were approved by
        the holders of a majority of the Chiles 10.0% Notes and that had the
        effect of removing certain covenants contained in such Indenture. In
        consideration for such approval, consenting noteholders received $1.00
        for each $1,000 in aggregate principal amount of Chiles 10.0% Notes held
        by them. In January 2000, Chiles filed a notice with the Securities
        and Exchange Commission terminating, retroactively effective to December
        31, 1999, its reporting obligations pursuant to the Securities Exchange
        Act of 1934, as amended.

        Also, on April 29, 1998, Chiles Offshore entered into a bank credit
        agreement that provided for a $25.0 million revolving credit facility
        (the "Chiles Bank Facility") maturing December 31, 2004. The Chiles Bank
        Facility was arranged by Nederlandse Scheepshypotheek Bank N.V. and
        MeesPierson Capital Corporation. In December 1999, the Chiles Bank
        Facility was amended and available borrowings rose from $25.0 million to
        $40.0 million (the "Amended Chiles Bank Facility"). The Amended Chiles
        Bank Facility provides for a floating interest rate of LIBOR plus 1 3/8%
        per annum (approximately 7.3% at December 31, 1999) on amounts
        outstanding under the Amended Chiles Bank Facility and provides for
        repayment of such amounts in eight quarterly installments of $1.875
        million beginning March 31, 2003, followed by eight quarterly
        installments of $3.125 million, with the remaining balance payable on
        December 31, 2006. As a condition precedent to the increase in the
        Amended Chiles Bank Facility, Chiles Offshore was required to reduce the
        outstanding principal amount of the Chiles 10% Notes by $15.0 million to
        $95.0 million.

        During November 1999, Chiles Offshore completed an offering of
        membership interests and rights to purchase membership interests (the
        "Offering") which provided all current members with a pro rata right to
        purchase such securities in an aggregate amount of $15.0 million. The
        proceeds from this Offering were used by Chiles Offshore to repurchase,
        at par, $15.0 million aggregate principal amount of the Chiles 10.0%
        Notes from SEACOR. A wholly owned subsidiary of SEACOR, acquired $10.6
        million or approximately 71% of the Offering, and certain other members
        acquired the balance of the Offering. Purchasers in the Offering have
        the right to acquire an additional $3.0 million of membership interests
        in Chiles Offshore at the same valuation for a period of four and
        one-half years following the Offering.


                                       31

        The Rig Owners guarantee the Amended Chiles Bank Facility and such
        guarantees are secured by first priority mortgages on the Rigs,
        assignment of earnings of the Rigs (which may continue to be collected
        by Chiles Offshore unless there occurs an event of default), and
        assignments of insurance proceeds. The Amended Chiles Bank Facility
        contains customary affirmative covenants, representations, and
        warranties and is cross-defaulted to the related promissory notes;
        provided, however, should there occur an event of default under the
        Amended Chiles Bank Facility (other than arising from enforcement
        actions undertaken by a holder of other indebtedness of Chiles Offshore,
        enforcement actions arising from in rem claims against either of the
        Rigs or bankruptcy events with respect to Chiles Offshore or a Rig
        Owner), the lenders under the Amended Chiles Bank Facility have agreed
        on a one-time basis not to enforce remedies for a period of 60 days
        during which the holders of the Chiles 10.0% Notes ("Noteholders") or
        Chiles Offshore may cure such event of default or prepay all of the
        indebtedness outstanding under the Amended Chiles Bank Facility. The
        Amended Chiles Bank Facility also contains certain negative covenants
        applicable to Chiles Offshore and the Guarantors, including prohibitions
        against the following: certain liens on the collateral under the Amended
        Chiles Bank Facility; material changes in the nature of their business;
        sale or pledge of any Guarantor's membership interests; sale or
        disposition of any Rig or other substantial assets; certain changes in
        office locations; consolidations or mergers; certain Restricted Payments
        (as defined in the Chiles Bank Facility), including distributions on
        membership interests in Chiles Offshore (the "Membership Interests");
        the exercise of a right to call the Chiles 10.0% Notes; or any material
        amendment or modification of the Indenture. The Amended Chiles Bank
        Facility further requires Chiles Offshore to prevent the Guarantors from
        making certain loans and advances, except in their normal course of
        business or to certain affiliates; assuming, guaranteeing or (except in
        their ordinary course of business) otherwise becoming liable in
        connection with any obligations other than guarantees for the benefit of
        the lenders under the Amended Chiles Bank Facility, guarantees in favor
        of the Noteholders or pre-existing guaranties; paying out any funds,
        except in their ordinary course of business for the business of Chiles
        Offshore or service of certain indebtedness permitted under the Amended
        Chiles Bank Facility; and issuing or disposing of any of their own
        membership interests (except to Chiles Offshore). In addition, the
        Amended Chiles Bank Facility requires that the fair market value of the
        Rigs, as determined by appraisers appointed by the lenders thereunder,
        at all times equals or exceeds an amount equal to 200% of outstanding
        indebtedness under the Amended Chiles Bank Facility. At December 31,
        1999, Chiles Offshore had $18.0 million available under the Amended
        Chiles Bank Facility for future borrowings.

        A wholly owned subsidiary of SEACOR currently owns a 58.3% equity
        interest in Chiles Offshore, which was acquired for $45.6 million, and
        SEACOR owns $26.7 million principal amount of the Chiles 10.0% Notes and
        has entered into swap agreements under which it bears the economic risk
        of $68.1 million notional principal amount of Chiles 10% Notes covered
        by such agreements. See Item 7a "Quantitative and Qualitative
        Disclosures About Market Risk".

        Pursuant to a February 1998 letter agreement between the Company and
        SMIT, the Company agreed to prepay certain contingent obligations for
        additional purchase consideration that would otherwise have been payable
        to SMIT in 1999 pursuant to a certain Asset Purchase Agreement dated
        December 19, 1996, by and among the Company and SMIT. The prepayment
        included cash of $20.9 million and the issuance, effective January 1,
        1999, of five-year subordinated promissory notes in the aggregate
        principal amount of $23.2 million, which notes will bear interest at
        5.467% per annum payable quarterly in arrears.

        At December 31, 1999, the Company had outstanding $147.5 million
        aggregate principal amount of its 7.2% Notes which will mature on
        September 15, 2009. Interest on the 7.2% Notes is payable semi-annually
        on March 15 and September 15 of each year commencing March 15, 1998. The
        7.2% Notes may be redeemed at any time at the option of the Company, in
        whole or from time to time in part, at a price equal to 100% of the
        principal amount thereof plus accrued and unpaid interest, if any, to
        the date of redemption plus a Make-Whole Premium, if any, relating to
        the then prevailing Treasury Yield and the remaining life of the 7.2%
        Notes. The 7.2% Notes were issued under an indenture that contains
        covenants including, among others, limitations on liens and sale and
        leasebacks of certain Principal Properties, as defined in the 1997
        Indenture, and certain restrictions on the Company consolidating with or
        merging into any other Person.

        At December 31, 1999, the Company had outstanding $181.6 million
        aggregate principal amount of its 5 3/8% Notes that were issued pursuant
        to a private placement and the SMIT Transaction in 1996. The 5 3/8%
        Notes are convertible, in whole or part, at the option of the holder at
        any time prior to the close of business on the business day next
        preceding November 15, 2006, unless previously redeemed into shares of
        Common Stock at a conversion price of $66.00 per share (equivalent to a
        conversion rate of 15.1515 shares of Common Stock per $1,000 principal
        amount of the 5 3/8% Notes), subject to adjustment in certain
        circumstances. The 5 3/8% Notes are redeemable at the Company's option
        at any time on or after November 24, 1999 at the redemption prices
        specified therein, together with accrued and unpaid interest to the
        repurchase date. The 5 3/8% Notes are general unsecured obligations of
        the Company, subordinated in right of payment to all senior indebtedness
        of the Company and effectively subordinated in right of payment to all
        indebtedness and other obligations and liabilities and any preferred


                                       32

        stock of the Company's subsidiaries. Also, pursuant to the SMIT
        Transaction, the Company entered into certain lease purchase agreements
        which obligate the Company to purchase two vessels from SMIT with cash
        and $6.75 million principal amount of the 5 3/8% Notes in 2001.

        CAPITAL STRUCTURE. At December 31, 1999, the Company's capital structure
        was comprised of $468.5 million in long-term debt (including current
        portion) and $508.1 million in stockholders' equity. Long-term debt
        declined $6.4 million between years. The retirement of indebtedness
        under the Stock and Debt Repurchase Program and scheduled payment of
        other indebtedness was partially offset by an increase in borrowings
        resulting from drawings under the Amended Chiles Credit Facility, the
        sale of Chiles 10% Notes previously held in treasury by the Company to a
        financial institution, subject to swap agreements, and debt assumed
        pursuant to Energy Logistics, Inc.'s acquisition of Liberty.
        Stockholders' equity rose due to an increase in retained earnings of
        $30.9 million from net income and Common Stock and paid in capital of
        $3.0 million primarily from the issuance of Common Stock in connection
        with the acquisition of ERST that occurred in 1997 and amortization of
        restricted stock. $65.5 million of Common Stock repurchases and return
        to treasury of unvested restricted Common Stock and a $3.0 million
        decline in accumulated other comprehensive income resulting from the
        Company's investment in available-for-sale securities and foreign
        currency translation adjustments offset these increases.

        MINORITY INTEREST. Minority interest is primarily comprised of the
        interest of the Company's partners in the net worth of three joint
        ventures: Chiles, the Veesea Joint Venture, and the Vision Joint
        Venture.

        RECENT ACCOUNTING PRONOUNCEMENTS

        In June 1998, the Financial Accounting Standards Board ("FASB") issued
        Statement of Financial Accounting Standards No. 133 ("SFAS 133"),
        "Accounting for Derivative Instruments and Hedging Activities." The
        Statement establishes accounting and reporting standards requiring that
        every derivative instrument be recorded in the balance sheet as either
        an asset or liability measured at its fair value. SFAS 133 requires that
        changes in the derivative's fair market value be recognized currently in
        earnings unless specific hedge accounting criteria are met. Special
        accounting for qualifying hedges allows a derivative's gains and losses
        to offset related results on the hedged item in the income statement,
        and requires that a company must formally document, designate, and
        assess the effectiveness of transactions that receive hedge accounting.
        In June 1999, the FASB issued SFAS No. 137, "Accounting for Derivative
        Instruments and Hedging Activities - Deferral of the Effective Date of
        FASB Statement No. 133" ("SFAS 137"). SFAS 137 is an amendment of SFAS
        133 and defers the effective date of SFAS 133 to June 15, 2000. The
        Company has not yet quantified the impact on its financial statements
        but does not believe adoption will have a material impact on net income,
        comprehensive income, and accumulated other comprehensive income.

        ITEM 7A.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

        The Company has foreign currency exchange risks primarily related to its
        offshore marine service vessel operations that are conducted from ports
        located in the United Kingdom where its functional currency is pounds
        sterling. The financial statements of the Company's United Kingdom
        operations are measured using the pound sterling and changes in the
        strength of that currency relative to the U.S. dollar and the
        corresponding adjustment to the net assets of those operations caused by
        exchange rate fluctuations result in the recognition of currency
        translation adjustments that are reported in Accumulated Other
        Comprehensive Income in Stockholders' Equity. To protect certain of the
        U.S. dollar value of pound sterling denominated net assets of the
        Company from the effects of volatility in foreign exchange rates that
        might occur prior to their conversion to U.S. dollars, the Company has
        entered into forward exchange contracts. The forward exchange contracts
        enable the Company to sell pounds sterling in the future at fixed
        exchange rates to offset the consequences of changes in foreign exchange
        on the amount of U.S. dollar cash flows to be derived from the net
        assets. The Company considers these forward exchange contracts as
        economic hedges of a net investment as the translation adjustments
        resulting from the forward exchange contracts move in the opposite
        direction from the translation adjustments resulting from the
        restatement of its United Kingdom subsidiaries' net assets. At December
        31, 1999, the notional and fair values of those forward exchange
        contracts, which expire at various dates through October 2000, were
        approximately $3.9 million and $0.1 million, respectively. The weighted
        average exchange rate of the Company's forward exchange contracts at
        December 31, 1999 was approximately .62 pounds sterling per U.S. dollar.
        The Company also collects certain revenues and pays certain expenses in
        other foreign currencies. With respect to these foreign currency risks,
        the Company has not entered into hedging contracts and its operating
        results are positively or negatively affected as these foreign
        currencies strengthen or weaken against the U.S. dollar.

        The Company has entered into and settled various positions in natural
        gas and crude oil via swaps, options, and futures contracts pursuant to
        which, on each applicable settlement date, the Company receives or pays
        an amount, if any, by which a contract price for a swap, an option, or a
        futures contract exceeds the settlement price quoted on the New York


                                       33

        Mercantile Exchange ("NYMEX") or receives or pays the amount, if any, by
        which the settlement price quoted on the NYMEX exceeds the contract
        price. The general purpose of these hedge transactions is to provide
        value to the Company should the price of natural gas and crude oil
        decline which over time, if sustained, would lead to a decline in the
        Company's offshore assets' market values and cash flows. For accounting
        purposes, the Company records the change in market value of its
        commodity contracts at the end of each month and recognizes a related
        gain or loss. At December 31, 1999, the Company's positions in commodity
        contracts were not material.

        In order to reduce its cost of capital, the Company entered into swap
        agreements during 1999 with a major financial institution with respect
        to notional amounts equal to a portion of the outstanding principal
        amount of the Chiles 10.0% Notes. Pursuant to each such agreement, such
        financial institution has agreed to pay to the Company an amount equal
        to interest paid by Chiles on the notional amount of Chiles 10.0% Notes
        subject to such agreement, and the Company has agreed to pay to such
        financial institution an amount equal to interest currently at the rate
        of approximately 6.9% per annum on the agreed upon price of such
        notional amount of Chiles 10% Notes as set forth in the applicable swap
        agreement. The Company has provided the financial institution with cash
        collateral of $10.2 million, which will be released to the Company
        should the aggregate exposure under the swap agreements be reduced to
        less than $50.0 million.

        Upon termination of each swap agreement, the financial institution has
        agreed to pay to the Company the amount, if any, by which the fair
        market value of the notional amount of Chiles 10.0% Notes subject to the
        swap agreement on such date exceeds the agreed upon price of such
        notional amount as set forth in such swap agreement, and the Company has
        agreed to pay to such financial institution the amount, if any, by which
        the agreed upon price of such notional amount exceeds the fair market
        value of such notional amount on such date. Each swap agreement
        terminates upon the earliest to occur of the redemption in full or
        maturity of the Chiles 10.0% Notes, at any time at the election of the
        Company or, at the election of the financial institution, on April 30,
        2004. At December 31, 1999, the market value of such swaps as of such
        date was approximately $6.8 million. Of the Chiles 10.0% Notes subject
        to swap agreements, $18.6 million notional amount was purchased by the
        financial institution from the Company.

        The Company is exposed to market risks associated with movements in
        interest rates relating to its debt security investments. A 1% increase
        in interest rates would decrease the Company's annual comprehensive
        income approximately $2.2 million, assuming its investments in debt
        securities at December 31, 1999 remain unchanged and an immediate
        increase in rates.

        ITEM 8.         FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

        The consolidated financial statements and related notes are included in
        Part IV of this Form 10-K on pages 37 through 60.

        ITEM 9.         CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
                        ACCOUNTING AND FINANCIAL DISCLOSURE

        None.











                                       34

                                    PART III


        ITEM 10.        DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

        As permitted by General Instruction G. to this Form 10-K, other than
        information with respect to the Company's executive officers which is
        set forth in Item 4A of Part I of this Form 10-K, the information
        required to be disclosed pursuant to this Item 10 is incorporated in its
        entirety herein by reference to the Company's definitive proxy statement
        to be filed with the Commission pursuant to Regulation 14A within 120
        days after the end of the Company's last fiscal year.

        ITEM 11.        EXECUTIVE COMPENSATION

        As permitted by General Instruction G. to this Form 10-K, the
        information required to be disclosed pursuant to this Item 11 is
        incorporated in its entirety herein by reference to the Company's
        definitive proxy statement to be filed with the Commission pursuant to
        Regulation 14A within 120 days after the end of the Company's last
        fiscal year.

        ITEM 12.        SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
                        MANAGEMENT

        As permitted by General Instruction G. to this Form 10-K, the
        information required to be disclosed pursuant to this Item 12 is
        incorporated in its entirety herein by reference to the Company's
        definitive proxy statement to be filed with the Commission pursuant to
        Regulation 14A within 120 days after the end of the Company's last
        fiscal year.

        ITEM 13.        CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

        As permitted by General Instruction G. to this Form 10-K, the
        information required to be disclosed pursuant to this Item 13 is
        incorporated in its entirety herein by reference to the Company's
        definitive proxy statement to be filed with the Commission pursuant to
        Regulation 14A within 120 days after the end of the Company's last
        fiscal year.









                                       35

                                     PART IV


        ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM
                 8-K

        (a)     Documents filed as part of this report:

                1. and 2. Financial Statements and Financial Statement
                Schedules.

                See Index to Consolidated Financial Statements and Financial
                Statement Schedules on page 43 of this Form 10-K.

                3. Exhibits:

Exhibit
Number                               Description
- ------                               -----------

2.1*            Asset Purchase Agreement, dated as of December 19, 1996, by and
                among SEACOR Holdings, Inc. and certain of its subsidiaries, and
                Smit Internationale N.V. and certain of its subsidiaries
                (incorporated herein by reference to Exhibit 2.0 to the
                Company's Current Report on Form 8-K dated December 19, 1996 and
                filed with the Commission on December 24, 1996).

2.2*            Purchase Agreement, dated as of December 3, 1996, among SEACOR
                Holdings, Inc., Acadian Offshore Services, Inc., Galaxie Marine
                Service, Inc., Moonmaid Marine, Inc., Triangle Marine, Inc.,
                F.C. Felterman, Ernest Felterman, D. Lee Felterman and Daniel C.
                Felterman (incorporated herein by reference to Exhibit 2.1 to
                the Company's Registration Statement on Form S-3 (No. 333-20921)
                filed with the Commission on January 31, 1997).

2.3*            Purchase Agreement, dated as of December 3, 1996, among SEACOR
                Holdings, Inc., Waveland Marine Service, Inc., F.C. Felterman,
                Ernest Felterman, D. Lee Felterman and Daniel C. Felterman
                (incorporated herein, by reference to Exhibit 2.2 to the
                Company's Registration Statement on Form S-3 (No. 333-20921)
                filed with the Commission on January 31, 1997).

2.4*            Definitive Purchase Agreement, dated September 5, 1995, by and
                among Graham Marine Inc., Edgar L. Graham, J. Clark Graham, and
                Glenn A. Graham (incorporated herein by reference to Exhibit 2.0
                to the Company's Current Report on Form 8-K dated September 15,
                1995).

2.5*            Global Agreement, dated as of November 14, 1995, by and among
                Compagnie Nationale de Navigation and Feronia International
                Shipping, SA and SEACOR Holdings, Inc. and the subsidiaries
                listed in said agreement (incorporated herein by reference to
                Exhibit 2.2 of the Company's Registration Statement on Form S-3
                (No. 33-97868) filed with the Commission on November 17, 1995).

2.6*            Agreement and Plan of Merger, dated as of May 31, 1996, by and
                among SEACOR Holdings, Inc., SEACOR Enterprises, Inc. and McCall
                Enterprises, Inc. (incorporated herein by reference to Exhibit
                2.1 to the Company's Current Report on Form 8-K dated May 31,
                1996 and filed with the Commission on June 7, 1996).

2.7*            Agreement and Plan of Merger, dated as of May 31, 1996, by and
                among SEACOR Holdings, Inc., SEACOR Support Services, Inc. and
                McCall Support Vessels, Inc. (incorporated herein by reference
                to Exhibit 2.2 to the Company's Current Report on Form 8-K dated
                May 31, 1996 and filed with the Commission on June 7, 1996).

2.8*            Agreement and Plan of Merger, dated as of May 31, 1996, by and
                among SEACOR Holdings, Inc., SEACOR N.F., Inc. and N.F. McCall
                Crews, Inc. (incorporated herein by reference to Exhibit 2.3 to
                the Company's Current Report on Form 8-K dated May 31, 1996 and
                filed with the Commission on June 7, 1996).

2.9*            Exchange Agreement relating to McCall Crewboats, L.L.C., dated
                as of May 31, 1996, by and among SEACOR Holdings, Inc. and the
                persons listed on the signature pages thereto (incorporated


                                       36

                herein by reference to Exhibit 2.4 to the Company's Current
                Report on Form 8-K dated May 31, 1996 and filed with the
                Commission on June 7, 1996).

2.10*           Share Exchange Agreement and Plan of Reorganization relating to
                Cameron Boat Rentals, Inc., dated as of May 31, 1996, by and
                among SEACOR Holdings, Inc., McCall Enterprises, Inc. and the
                persons listed on the signature pages thereto (incorporated
                herein by reference to Exhibit 2.5 to the Company's Current
                Report on Form 8-K dated May 31, 1996 and filed with the
                Commission on June 7, 1996).

2.11*           Share Exchange Agreement and Plan of Reorganization relating to
                Philip A. McCall, Inc., dated as of May 31, 1996, by and among
                SEACOR Holdings, Inc., McCall Enterprises, Inc. and the persons
                listed on the signature pages thereto (incorporated herein by
                reference to Exhibit 2.6 to the Company's Current Report on Form
                8-K dated May 31, 1996 and filed with the Commission on June 7,
                1996).

2.12*           Share Exchange Agreement and Plan of Reorganization relating to
                Cameron Crews, Inc., dated as of May 31, 1996, by and among
                SEACOR Holdings, Inc., McCall Enterprises, Inc. and the persons
                listed on the signature pages thereto (incorporated herein by
                reference to Exhibit 2.7 to the Company's Current Report on Form
                8-K dated May 31, 1996 and filed with the Commission on June 7,
                1996).

3.1*            Restated Certificate of Incorporation of SEACOR SMIT Inc.
                (incorporated herein by reference to Exhibit 3.1(a) to the
                Company's Quarterly Report on Form 10-Q for the fiscal quarter
                ended June 30, 1997 and filed with the Commission on August 14,
                1997).

3.2*            Certificate of Amendment to the Restated Certificate of
                Incorporation of SEACOR SMIT Inc. (incorporated herein by
                reference to Exhibit 3.1(b) to the Company's Quarterly Report on
                Form 10-Q for the fiscal quarter ended June 30, 1997 and filed
                with the Commission on August 14, 1997).

3.3*            Amended and Restated By-laws of SEACOR Holdings, Inc.
                (incorporated herein by reference to Exhibit 4.2 to the
                Company's Registration Statement on Form S-8 (No. 333-12637) of
                SEACOR Holdings, Inc. filed with the Commission on September 25,
                1996).

4.1*            Indenture, dated as of November 1, 1996, between First Trust
                National Association, as trustee, and SEACOR Holdings, Inc.
                (including therein forms of 5-3/8% Convertible Subordinated
                Notes due November 15, 2006 of SEACOR Holdings, Inc.)
                (incorporated herein by reference to Exhibit 4.0 to the
                Company's Quarterly Report on Form 10-Q for the fiscal quarter
                ended September 30, 1996 and filed with the Commission on
                November 14, 1996).

4.2*            Indenture, dated as of September 22, 1997, between SEACOR SMIT
                Inc. and First Trust National Association, as trustee (including
                therein form of Exchange Note 7.20% Senior Notes Due
                2009)(incorporated herein by reference to Exhibit 4.1 to the
                Company's Registration Statement on Form S-4 (No. 333-38841)
                filed with the Commission on October 27, 1997).

4.3*            Investment and Registration Rights Agreement, dated as of March
                14, 1995, by and among SEACOR Holdings, Inc., Miller Family
                Holdings, Inc., Charles Fabrikant, Mark Miller, Donald
                Toenshoff, Alvin Wood, Granville Conway and Michael Gellert
                (incorporated herein by reference to Exhibit 4.0 of the
                Company's Current Report on Form 8-K dated March 14, 1995, as
                amended).

4.4*            Investment and Registration Rights Agreement, dated as of May
                31, 1996, among SEACOR Holdings, Inc. and the persons listed on
                the signature pages thereto (incorporated herein by reference to
                Exhibit 10.8 to the Company's Current Report on Form 8-K dated
                May 31, 1996 and filed with the Commission on June 7, 1996).

4.5*            Registration Rights Agreement, dated November 5, 1996, between
                SEACOR Holdings, Inc. and Credit Suisse First Boston
                Corporation, Salomon Brothers Inc. and Wasserstein Perella
                Securities, Inc. (incorporated herein by reference to Exhibit
                4.1 to the Company's Quarterly Report on Form 10-Q for the
                fiscal quarter ended September 30, 1996 and filed with the
                Commission on November 14, 1996).

4.6*            Investment and Registration Rights Agreement, dated as of
                December 19, 1996, by and between SEACOR Holdings, Inc. and Smit
                International Overseas B.V. (incorporated herein by reference to
                Exhibit 4.0 to the Company's Current Report on Form 8-K dated


                                       37

                December 19, 1996 and filed with the Commission on December 24,
                1996).

4.7*            Investment and Registration Rights Agreement, dated as of
                January 3, 1997, among SEACOR Holdings, Inc., Acadian Offshore
                Services, Inc., Galaxie Marine Service, Inc., Moonmaid Marine,
                Inc. and Triangle Marine, Inc. (incorporated herein by reference
                to Exhibit 4.6 to the Company's Registration Statement on Form
                S-3 (No. 333-20921) filed with the Commission on January 31,
                1997).

4.8*            Investment and Registration Rights Agreement, dated October 27,
                1995, by and between SEACOR Holdings, Inc. and Coastal Refining
                and Marketing, Inc. (incorporated herein by reference to Exhibit
                4.2 of the Company's Registration Statement on Form S-3 (No.
                33-97868) filed with the Commission on November 17, 1995).

4.9*            Investment and Registration Rights Agreement, dated November 14,
                1995, by and between SEACOR Holdings, Inc. and Compagnie
                Nationale de Navigation (incorporated herein by reference to
                Exhibit 4.3 of the Company's Registration Statement on Form S-3
                (No. 33-97868) filed with the Commission on November 17, 1995).

4.10*           Registration Agreement, dated as of September 22, 1997, between
                the Company and the Initial Purchasers (as defined
                therein)(incorporated herein by reference to Exhibit 4.3 to the
                Company's Registration Statement on Form S-4 (No. 333-38841)
                filed with the Commission on October 27, 1997).


4.11*           Restated Stockholders' Agreement dated December 16, 1992
                (incorporated herein by reference to Exhibit 10.12 to the Annual
                Report on Form 10-K of SEACOR Holdings, Inc. for the fiscal year
                ended December 31, 1992).

10.1*           Indemnification Agreement, dated as of May 31, 1996, among all
                of the stockholders of McCall Enterprises, Inc., Norman McCall,
                as representative of such stockholders, and SEACOR Holdings,
                Inc. (incorporated herein by reference to Exhibit 10.1 to the
                Company's Current Report on Form 8-K dated May 31, 1996 and
                filed with the Commission on June 7, 1996).

10.2*           Indemnification Agreement, dated as of May 31, 1996, among all
                of the stockholders of McCall Support Vessels, Inc., Norman
                McCall, as representative of such stockholders, and SEACOR
                Holdings, Inc. (incorporated herein by reference to Exhibit 10.2
                to the Company's Current Report on Form 8-K dated May 31, 1996
                and filed with the Commission on June 7, 1996).

10.3*           Indemnification Agreement, dated as of May 31, 1996, among all
                of the stockholders of N.F. McCall Crews, Inc., Norman McCall,
                as representative of such stockholders, and SEACOR Holdings,
                Inc. (incorporated herein by reference to Exhibit 10.3 to the
                Company's Current Report on Form 8-K dated May 31, 1996 and
                filed with the Commission on June 7, 1996).

10.4*           Indemnification Agreement, dated as of May 31, 1996, among all
                of the members of McCall Crewboats, L.L.C., Norman McCall, as
                representative of such members, and SEACOR Holdings, Inc.
                (incorporated herein by reference to Exhibit 10.4 to the
                Company's Current Report on Form 8-K dated May 31, 1996 and
                filed with the Commission on June 7, 1996).

10.5*           Indemnification Agreement, dated as of May 31, 1996, among all
                of the stockholders of Cameron Boat Rentals, Inc., Norman
                McCall, as representative of such stockholders, and SEACOR
                Holdings, Inc. (incorporated herein by reference to Exhibit 10.5
                to the Company's Current Report on Form 8-K dated May 31, 1996
                and filed with the Commission on June 7, 1996).

10.6*           Indemnification Agreement, dated as of May 31, 1996, among all
                of the stockholders of Philip A. McCall, Inc. and SEACOR
                Holdings, Inc. (incorporated herein by reference to Exhibit 10.6
                to the Company's Current Report on Form 8-K dated May 31, 1996
                and filed with the Commission on June 7, 1996).

10.7*           Indemnification Agreement, dated as of May 31, 1996, among all
                of the stockholders of Cameron Crews, Inc., Norman McCall, as
                representative of such stockholders, and SEACOR Holdings, Inc.
                (incorporated herein by reference to Exhibit 10.7 to the
                Company's Current Report on Form 8-K dated May 31, 1996 and
                filed with the Commission on June 7, 1996).


                                       38

10.8*           The Master Agreement, dated as of June 6, 1996, by and among
                Compagnie Nationale de Navigation, SEACOR Holdings, Inc. and
                SEACOR Worldwide Inc. (incorporated herein by reference to
                Exhibit 10.9 to the Company's Quarterly Report on Form 10-Q for
                the period ended June 30, 1996).

10.9*           Management and Administrative Services Agreement, dated January
                1, 1990, between SCF Corporation and SEACOR Holdings, Inc.
                (incorporated herein by reference to Exhibit 10.32 to the
                Company's Registration Statement on Form S-1 (No. 33-53244)
                filed with the Commission on November 10, 1992).

10.10*          Amendment No. 1 to the Management and Services Agreement, dated
                as of January 1, 1993, between SCF Corporation and SEACOR
                Holdings, Inc. (incorporated herein by reference to Exhibit
                10.34 to the Annual Report on Form 10-K of SEACOR Holdings, Inc.
                for the fiscal year ended December 31, 1992).

10.11*          Lease Agreement, dated September 1, 1989, between The Morgan
                City Fund and NICOR Marine Inc. (SEACOR Marine Inc., as
                successor lessee) (incorporated herein by reference to Exhibit
                10.33 to the Company's Registration Statement on Form S-1 (No.
                33-53244) filed with the Commission on November 10, 1992).


10.12*,**       SEACOR Holdings, Inc. 1992 Non-Qualified Stock Option Plan
                (incorporated herein by reference to Exhibit 10.45 to the
                Company's Registration Statement on Form S-1 (No. 33-53244)
                filed with the Commission on November 10, 1992).

10.13*,**       SEACOR Holdings, Inc. 1996 Share Incentive Plan (incorporated
                herein by reference to SEACOR Holdings, Inc.'s Proxy Statement
                dated March 18, 1996 relating to the Annual Meeting of
                Stockholders held on April 18, 1996).

10.14*,**       Benefit Agreement, dated May 1, 1989, between NICOR Marine Inc.
                and Lenny P. Dantin (assumed by SEACOR Holdings, Inc.)
                (incorporated herein by reference to Exhibit 10.51 to the
                Company's Registration Statement on Form S-1 (No. 33-53244)
                filed with the Commission on November 10, 1992).

10.15*,**       Employment Agreement, dated December 24, 1992, between SEACOR
                Holdings, Inc. and Milton Rose (incorporated herein by reference
                to Exhibit 10.61 to the Annual Report on Form 10-K of SEACOR
                Holdings, Inc. for the fiscal year ended December 31, 1992).

10.16*          Management and Services Agreement, dated January 1, 1985,
                between NICOR Marine (Nigeria) Inc. and West Africa Offshore
                Limited (assumed by SEACOR Holdings, Inc.) (incorporated herein
                by reference to Exhibit 10.55 to the Company's Registration
                Statement on Form S-1 (No. 33-53244) filed with the Commission
                on November 10, 1992).

10.17*          Bareboat Charter Agreement, dated December 19, 1996, between
                SEACOR-SMIT Offshore (International) B.V. and Smit-Lloyd B.V.
                (incorporated herein by reference to Exhibit 10.1 to the
                Company's Current Report on Form 8-K dated December 19, 1996 and
                filed with the Commission on December 24, 1996).

10.18*          Bareboat Charter Agreement, dated December 19, 1996, between
                SEACOR-SMIT Offshore (International) B.V. and Smit-Lloyd B.V.
                (incorporated herein by reference to Exhibit 10.2 to the
                Company's Current Report on Form 8-K dated December 19, 1996 and
                filed with the Commission on December 24, 1996).

10.19*          Joint Venture Agreement, dated December 19, 1996, between SEACOR
                Holdings, Inc. and Smit-Lloyd (Antillen) N.V. (incorporated
                herein by reference to Exhibit 10.0 to the Company's Current
                Report on Form 8-K dated December 19, 1996 and filed with the
                Commission on December 24, 1996).

10.20*          Form of Management Agreement (incorporated herein by reference
                to Exhibit 10.4 to the Company's Current Report on Form 8-K
                dated December 19, 1996 and filed with the Commission on
                December 24, 1996).

10.21*          Malaysian Side Letter, dated December 19, 1996, between SEACOR
                Holdings, Inc. and Smit Internationale N.V. (incorporated herein
                by reference to Exhibit 10.3 to the Company's Current Report on


                                       39

                Form 8-K dated December 19, 1996 and filed with the Commission
                on December 24, 1996).

10.22*          Salvage and Maritime Contracting Agreement, dated December 19,
                1996, between SEACOR Holdings, Inc. and Smit Internationale N.V.
                (incorporated herein by reference to Exhibit 10.5 to the
                Company's Current Report on Form 8-K dated December 19, 1996 and
                filed with the Commission on December 24, 1996).

10.23*          License Agreement, dated December 19, 1996, between SEACOR
                Holdings, Inc., certain subsidiaries of SEACOR Holdings, Inc.
                and Smit Internationale N.V. (incorporated herein by reference
                to Exhibit 10.6 to the Company's Current Report on Form 8-K
                dated December 19, 1996 and filed with the Commission on
                December 24, 1996).

10.24*          Amended and Restated Operating Agreement of Chiles Offshore LLC,
                dated as of December 16, 1997, between SEACOR Offshore Rigs
                Inc., COI, LLC and the other Members identified therein.

10.25*          Letter Agreement, dated February 26, 1998, between SEACOR SMIT
                Inc. and certain of its subsidiaries and SMIT Internationale
                N.V. and certain of its subsidiaries (incorporated herein by
                reference to Exhibit 99.1 of the Company's Current Report on
                Form 8-K filed with the Commission of March 11, 1998).

10.26*          Purchase Agreement, dated as of September 15, 1997, between the
                Company and Salomon Brothers Inc., individually and as
                representative of the Initial Purchasers (as defined
                therein)(incorporated herein by reference to Exhibit 4.2 to the
                Company's Registration Statement on Form S-4 (No. 333-38841)
                filed with the Commission on October 27, 1997).

10.27*          Revolving Credit Facility Agreement dated as of June 30, 1997
                among SEACOR SMIT Inc., Den norske Bank ASA, as agent, and the
                other banks and financial institutions named therein
                (incorporated herein by reference to Exhibit 10.1 to the
                Company's Quarterly Report on Form 10-Q for the fiscal quarter
                ended June 30, 1997 and filed with the Commission on August 14,
                1997).

10.28*          Agreement, dated October 27, 1995, by and among SEACOR Holdings,
                Inc., NRC Holdings, Inc., Coastal Refining and Marketing, Inc.,
                and Phibro Energy USA, Inc. (incorporated herein by reference to
                Exhibit 10.1 of the Company's Registration Statement on Form S-3
                (No. 33-97868) filed with the Commission on November 15, 1995).


10.29*,**       Employment Agreement, dated March 14, 1995, by and between
                National Response Corporation and Mark Miller (incorporated
                herein by reference to Exhibit 10.3 of the Company's
                Registration Statement on Form S-3 (No. 33-97868) filed with the
                Commission on November 15, 1995).

10.30*,**       Employment Agreement, dated March 14, 1995, by and between
                National Response Corporation and James Miller (incorporated
                herein by reference to Exhibit 10.4 of the Company's
                Registration Statement on Form S-3 (No. 33-97868) filed with the
                Commission on November 15, 1995).

10.31*,**       Letter agreement, dated February 26, 1997, between SEACOR SMIT
                Inc. and certain of its' subsidiaries and SMIT Internationale,
                N.V. and certain of its subsidiaries (incorporated herein by
                reference to Exhibit 99.1 of the Current Report on Form 8-K
                filed with the Commission on March 11, 1998).

10.32           Agreement for a U.S. $100,000,000 Revolving Credit Facility to
                be made available to SEACOR SMIT Inc. by the financial
                institutions identified on Schedule A and Den Norske Bank ASA,
                as agent, dated November 17, 1998.

10.33           Amendment No. 1 To Credit Agreement made as of February 4, 1999
                by and between SEACOR SMIT Inc., the financial institutions
                listed in Schedule A to that certain Credit Agreement dated
                November 17, 1998 and Den norske Bank ASA.

10.34           Amendment No. 2 To Credit Agreement made as of October 1, 1999
                by and between SEACOR SMIT Inc., certain financial institutions
                and Den norske Bank ASA., which further amends that certain
                Revolving Credit Agreement dated November 17, 1998 and Amendment
                No. 1 thereto dated February 4, 1999.

10.35**         Form of Type A Restricted Stock Grant Agreement.

10.36**         Form of Type B Restricted Stock Grant Agreement.


                                       40

10.37**         Form of Option Agreement for Officers and Key Employees pursuant
                to the SEACOR SMIT Inc. 1996 Share Incentive Plan.

21.1            List of Registrant's Subsidiaries.

23.1            Consent of Arthur Andersen LLP.

27.1            Financial Data Schedule.


- ---------------

   *    Incorporated herein by reference as indicated.

   **   Management contracts or compensatory plans or arrangements required
        to be filed as an exhibit pursuant to Item 14 (c) of the rules governing
        the preparation of this report.


        (b)  Reports on Form 8-K:

             None.








                                       41

                                   SIGNATURES

        Pursuant to the requirements of Section 13 or 15(d) of the Securities
        Exchange Act of 1934, the Registrant has duly caused this Report to be
        signed on its behalf by the undersigned, thereunto duly authorized.

                                     SEACOR SMIT INC.
                                     (Registrant)

                                     By:  /s/ Charles Fabrikant
                                          --------------------------------------
                                          Charles Fabrikant,
                                          Chairman of the Board,
                                          President, and Chief Executive Officer

        Date: March 30, 2000

        Pursuant to the requirements of the Securities and Exchange Act of 1934,
        this Report has been signed below by the following persons on behalf of
        the Registrant and in the capacities and on the dates indicated.



        Signature                                             Title                                        Date
        ---------                                             -----                                        ----
                                                                                            
        /s/ Charles Fabrikant                       Chairman of the Board,                           March 30, 2000
        -------------------------------             President and Chief Executive
        Charles Fabrikant                           Officer (Principal Executive Officer)


        /s/ Randall Blank                           Executive Vice President, Chief                  March 30, 2000
        -------------------------------             Financial Officer and Secretary
        Randall Blank                               (Principal Financial Officer)


        /s/ Lenny P. Dantin                         Vice President and                               March 30, 2000
        -------------------------------             Treasurer (Principal Accounting
        Lenny P. Dantin                             Officer and Controller)


        /s/ Granville E. Conway                     Director                                         March 30, 2000
        -------------------------------
        Granville E. Conway


        /s/ Michael E. Gellert                      Director                                         March 30, 2000
        -------------------------------
        Michael E. Gellert


        /s/ Antoon Kienhuis                         Director                                         March 30, 2000
        -------------------------------
        Antoon Kienhuis


        /s/ Stephen Stamas                          Director                                         March 30, 2000
        -------------------------------
        Stephen Stamas


        /s/ Richard M. Fairbanks III                Director                                         March 30, 2000
        ----------------------------
        Richard M. Fairbanks III


        /s/ Pierre de Demandolx                     Director                                         March 30, 2000
        -------------------------------
        Pierre de Demandolx


        /s/ Andrew R. Morse                         Director                                         March 30, 2000
        -------------------------------
        Andrew R. Morse



                                       42

                 INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND
                          FINANCIAL STATEMENT SCHEDULES



Financial Statements:
                                                                                                          Page
                                                                                                      
        Report of Independent Public Accountants...................................................        38

        Consolidated Balance Sheets - December 31, 1999 and 1998...................................        39

        Consolidated Statements of Income for each of the three years
           ended December 31, 1999, 1998, and 1997.................................................        40

        Consolidated Statements of Changes in Equity for each of the
           three years ended December 31, 1999, 1998, and 1997.....................................        41

        Consolidated Statements of Cash Flows for each of the three years
           ended December 31, 1999, 1998, and 1997.................................................        42

        Notes to Consolidated Financial Statements.................................................        43

Financial Schedules:

        Reports of Independent Public Accountants on Financial
           Statement Schedule......................................................................        61

        Valuation and Qualifying Accounts for each of the three
           years ended December 31, 1999, 1998, and 1997...........................................        62



        All Financial Schedules, except those set forth above, have been omitted
        since the information required is included in the financial statements
        or notes or have been omitted as not applicable or required.






                                       43

                    REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS



        To SEACOR SMIT Inc.:

        We have audited the accompanying consolidated balance sheets of SEACOR
        SMIT Inc. (a Delaware corporation) and subsidiaries as of December 31,
        1999 and 1998 and the related consolidated statements of income, changes
        in equity and cash flows for each of the three years in the period ended
        December 31, 1999. These financial statements are the responsibility of
        the Company's management. Our responsibility is to express an opinion on
        these financial statements based on our audits.

        We conducted our audits in accordance with auditing standards generally
        accepted in the United States. Those standards require that we plan and
        perform the audit to obtain reasonable assurance about whether the
        financial statements are free of material misstatement. An audit
        includes examining, on a test basis, evidence supporting the amounts and
        disclosures in the financial statements. An audit also includes
        assessing the accounting principles used and significant estimates made
        by management, as well as evaluating the overall financial statement
        presentation. We believe that our audits provide a reasonable basis for
        our opinion.

        In our opinion, the financial statements referred to above present
        fairly, in all material respects, the financial position of SEACOR SMIT
        Inc. and subsidiaries as of December 31, 1999 and 1998 and the results
        of their operations and their cash flows for each of the three years in
        the period ended December 31, 1999, in conformity with accounting
        principles generally accepted in the United States.


                                                   Arthur Andersen LLP

        New Orleans, Louisiana
        February 15, 2000





                                       44

                        SEACOR SMIT INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                           DECEMBER 31, 1999 AND 1998
                        (IN THOUSANDS, EXCEPT SHARE DATA)



                                            ASSETS                                                         1999             1998
                                                                                                        -----------     -----------
Current Assets:
                                                                                                                  
   Cash and cash equivalents, including restricted cash of $14,239 at December 31, 1998 ............    $   178,509     $   175,267
   Marketable securities (available-for-sale) ......................................................         18,196          40,325
   Trade and other receivables, net of allowance for
      doubtful accounts of $1,567 and $1,956, respectively .........................................         69,501          86,621
   Prepaid expenses and other ......................................................................         15,810           9,520
                                                                                                        -----------     -----------
        Total current assets .......................................................................        282,016         311,733
                                                                                                        -----------     -----------
Investments, at Equity, and Receivables from 50% or Less Owned Companies ...........................         77,276          55,478
Available-for-Sale Securities ......................................................................         54,809         154,378
Property and Equipment:
   Vessels and equipment ...........................................................................        603,854         506,279
   Rigs ............................................................................................        193,820            --
   Construction in progress ........................................................................         21,761         185,116
   Other ...........................................................................................         39,577          45,188
                                                                                                        -----------     -----------
                                                                                                            859,012         736,583
   Less-accumulated depreciation ...................................................................        143,815         111,722
                                                                                                        -----------     -----------
                                                                                                            715,197         624,861
                                                                                                        -----------     -----------
Restricted Cash ....................................................................................         21,985          69,234
Other Assets .......................................................................................         45,708          42,291
                                                                                                        -----------     -----------
                                                                                                        $ 1,196,991     $ 1,257,975
                                                                                                        ===========     ===========
                                LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
   Current portion of long-term debt ...............................................................    $     2,832     $     2,122
   Accounts payable and accrued expenses ...........................................................         29,757          45,842
   Accrued wages ...................................................................................          4,870           4,740
   Accrued interest ................................................................................          4,056           4,511
   Other current liabilities .......................................................................          7,477          14,503
                                                                                                        -----------     -----------
        Total current liabilities ..................................................................         48,992          71,718
                                                                                                        -----------     -----------
Long-Term Debt .....................................................................................        465,661         472,799
Deferred Income Taxes ..............................................................................        101,704          86,124
Deferred Gains and Other Liabilities ...............................................................         35,783          51,623
Minority Interest in Subsidiaries ..................................................................         36,721          32,929
Stockholders' Equity:
   Common stock, $.01 par value, 40,000,000 shares authorized; 14,215,458 and
      14,146,457 shares issued in 1999 and 1998, respectively ......................................            142             141
   Additional paid-in capital ......................................................................        275,051         272,012
   Retained earnings ...............................................................................        368,022         337,086
   Less 2,934,284 and 1,472,134 shares held in treasury in 1999 and 1998, respectively, at cost ....       (131,183)        (65,656)
   Unamortized restricted stock ....................................................................         (1,110)           (972)
   Accumulated other comprehensive income (loss) ...................................................         (2,792)            171
                                                                                                        -----------     -----------
        Total stockholders' equity .................................................................        508,130         542,782
                                                                                                        -----------     -----------
                                                                                                        $ 1,196,991     $ 1,257,975
                                                                                                        ===========     ===========


 The accompanying notes are an integral part of these financial statements and
                    should be read in conjunction herewith.

                                       45

                        SEACOR SMIT INC. AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
              FOR THE YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
                        (IN THOUSANDS, EXCEPT SHARE DATA)



                                                                                       1999              1998               1997
                                                                                   ------------      ------------      ------------
                                                                                                              
Operating Revenue:
Marine .......................................................................     $    258,705      $    359,611      $    325,009
Other ........................................................................           30,720            26,180            21,939
                                                                                   ------------      ------------      ------------
                                                                                        289,425           385,791           346,948
                                                                                   ------------      ------------      ------------
Costs and Expenses:
Operating expenses -
   Marine ....................................................................          154,947           177,236           158,175
   Other .....................................................................           11,839            10,486             9,318
Administrative and general ...................................................           34,744            36,102            28,299
Depreciation and amortization ................................................           41,282            36,449            36,538
                                                                                   ------------      ------------      ------------
                                                                                        242,812           260,273           232,330
                                                                                   ------------      ------------      ------------
Operating Income .............................................................           46,613           125,518           114,618
                                                                                   ------------      ------------      ------------
Other Income (Expense):
Interest income ..............................................................           20,495            25,346            12,756
Interest expense .............................................................          (22,330)          (22,798)          (14,168)
Gain from equipment sales or retirements, net ................................            1,677            38,338            61,928
Other ........................................................................           (2,939)            6,492               569
                                                                                   ------------      ------------      ------------
                                                                                         (3,097)           47,378            61,085
                                                                                   ------------      ------------      ------------
Income Before Income Taxes, Minority Interest, Equity in
Earnings...........Extraordinary .............................................                                                 Item
                                                                                                           15,642            15,642
of 50% or Less Owned Companies, and Extraordinary Item .......................           43,516           172,896           175,703
                                                                                   ------------      ------------      ------------
Income Tax Expense:
Current ......................................................................              358            33,635            36,317
Deferred .....................................................................           14,891            26,658            25,067
                                                                                   ------------      ------------      ------------
                                                                                         15,249            60,293            61,384
                                                                                   ------------      ------------      ------------
Income Before Minority Interest, Equity in Earnings of 50% or
                                                                                                           10,132             8,168
Less Owned Companies, and Extraordinary Item .................................           28,267           112,603           114,319
Minority Interest in (Income) Loss of Subsidiaries ...........................            1,148            (1,612)             (301)
Equity in Net Earnings of 50% or Less Owned Companies ........................              330            13,627             5,575
                                                                                   ------------      ------------      ------------
Income Before Extraordinary Item .............................................           29,745           124,618           119,593
Extraordinary Item - Gain/(Loss) on Extinguishment of Debt, net of tax .......            1,191             1,309              (439)
                                                                                   ------------      ------------      ------------
Net Income ...................................................................     $     30,936      $    125,927      $    119,154
                                                                                   ============      ============      ============
Basic Earnings Per Common Share:
Income before extraordinary item .............................................     $       2.50      $       9.49      $       8.64
Extraordinary item ...........................................................             0.10              0.10             (0.03)
                                                                                   ------------      ------------      ------------
Net income ...................................................................     $       2.60      $       9.59      $       8.61
                                                                                   ============      ============      ============
Diluted Earnings Per Common Share:
Income before extraordinary item .............................................     $       2.46      $       8.17      $       7.50
Extraordinary item ...........................................................             0.08              0.08             (0.03)
                                                                                   ------------      ------------      ------------
Net income ...................................................................     $       2.54      $       8.25      $       7.47
                                                                                   ============      ============      ============
Weighted Average Common Shares:
Basic ........................................................................       11,911,653        13,135,111        13,840,205
Diluted ......................................................................       14,834,963        16,090,556        16,845,001


    The accompanying notes are an integral part of these financial statements
                   and should be read in conjunction herewith.


                                       46

                        SEACOR SMIT INC. AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
              FOR THE YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
                                 (IN THOUSANDS)



                                                                                                         Accumulated
                                                        Additional                          Unamortized    Other
                                               Common    Paid-in      Retained    Treasury  Restricted  Comprehensive Comprehensive
                                               Stock     Capital      Earnings     Stock       Stock       Income         Income
- --------------------------------------------- --------- ----------  ------------ ---------- ----------- ------------- -------------
                                                                                                 
1999
- -----------------------------------------------

Balance, December 31, 1998                    $   141   $ 272,012  $  337,086    $ (65,656)  $  (972)    $     171      $       -
    Add/(Deduct) -
      -Net income for fiscal year 1999              -           -      30,936            -         -             -         30,936
      -Issuance of common stock:
         ERST/O'Brien's Inc. acquisition            -       1,482           -            -         -             -              -
         Issuance of restricted stock               1       1,594           -            -    (1,653)            -              -
      -Amortization of restricted stock             -           -           -            -     1,508             -              -
      -Cancellation of restricted stock             -           -           -           (7)        7             -              -
      -Net currency translation adjustments         -           -           -            -         -          (526)          (526)
   -Change in unrealized gains (losses) on
   available-for-sale securities                    -           -           -            -         -        (2,437)        (2,437)
      -Debt offering costs                          -         (37)          -            -         -             -              -
      -Purchase of treasury shares                  -           -           -      (65,520)        -             -              -
                                               -------- ----------  ------------- ---------- ----------- ------------ -------------
Balance, December 31, 1999                    $   142   $ 275,051  $  368,022    $(131,183)  $(1,110)    $  (2,792)     $  27,973

===================================================================================================================================
1998
- -----------------------------------------------
Balance, December 31, 1997                    $   140   $ 268,728  $  211,159    $  (5,365)  $  (986)    $     338      $       -
    Add/(Deduct) -
      -Net income for fiscal year 1998              -           -     125,927            -         -             -        125,927
      -Issuance of common stock:
         ERST/O'Brien's Inc. acquisition            -         442           -            -         -             -              -
         Exercise of stock options                  1       1,473           -            -         -             -              -
         Issuance of restricted stock               -       1,369           -            -    (1,319)            -              -
      -Amortization of restricted stock             -           -           -            -     1,333             -              -
      -Net currency translation adjustments         -           -           -            -         -          (121)          (121)
   -Change in unrealized gains (losses) on
         available-for-sale securities              -           -           -            -         -           (46)           (46)
      -Purchase of treasury shares                  -           -           -      (60,291)        -             -              -
                                               -------- ---------- ------------- ---------- ----------- ------------- -------------
Balance, December 31, 1998                    $   141   $ 272,012  $  337,086    $ (65,656)  $  (972)    $     171      $ 125,760

===================================================================================================================================
1997
- -----------------------------------------------
Balance, December 31, 1996                    $   139   $ 258,904  $   92,005    $    (622)  $  (279)    $     924      $       -
    Add/(Deduct) -
      -Net income for fiscal year 1997              -           -     119,154            -         -             -        119,154
      -Issuance of common stock:
         Galaxie transaction                        1       2,787           -            -         -             -              -
         SMIT transaction                           -       1,554           -            -         -             -              -
         ERST/O'Brien's Inc. acquisition            -       3,614           -            -         -             -              -
         Exercise of stock options                  -         656           -            -         -             -              -
         Issuance of restricted stock               -       1,213           -            -    (1,146)            -              -
      -Amortization of restricted stock             -           -           -            -       439             -              -
      -Net currency translation adjustments         -           -           -            -         -          (570)          (570)
      -Change in unrealized gains (losses) on
         available-for-sale securities              -           -           -            -         -           (16)           (16)
      -Purchase of treasury shares                  -           -           -       (4,743)        -             -              -
                                               -------- ---------- ------------- ---------- ----------- ------------- -------------
Balance, December 31, 1997                    $   140   $ 268,728  $  211,159    $  (5,365)  $  (986)    $     338      $ 118,568

===================================================================================================================================


         The accompanying notes are an integral part of these financial
             statements and should be read in conjunction herewith.


                                       47

                        SEACOR SMIT INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
              FOR THE YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
                                 (IN THOUSANDS)



                                                                                              1999            1998           1997
                                                                                            ---------      ---------      ---------
                                                                                                                   
Cash Flows from Operating Activities:
Net income ............................................................................     $  30,936      $ 125,927        119,154
Depreciation and amortization .........................................................        41,282         36,449         36,538
    Restricted stock amortization .....................................................         1,508          1,333            439
    Debt discount amortization ........................................................           129          1,275              7
    Bad debt expense ..................................................................          (328)           455          1,155
    Deferred income taxes .............................................................        14,891         26,658         25,067
    Equity in net earnings of 50% or less owned companies .............................          (330)       (13,627)        (5,575)
    Extraordinary (gain) loss, extinguishment of debt .................................        (1,191)        (1,309)           439
    (Gain) loss from sale of investment in 50% or less owned companies ................            72         (1,197)          --
    (Gain) loss on commodity swap transactions, net ...................................         1,323         (3,273)          --
    (Gain) loss from sale of available-for-sale securities, net .......................           279         (1,827)          --
    Gain from equipment sales or retirements, net .....................................        (1,677)       (38,338)       (61,928)
    Amortization of deferred gains on sale and leaseback transactions .................       (24,278)       (19,797)          --
    Minority interest in income (loss) of subsidiaries ................................        (1,148)         1,612            301
    Other, net ........................................................................         3,382          2,770          1,451
    Changes in operating assets and liabilities -
      (Increase) decrease in receivables ..............................................        15,139            231        (35,976)
      (Increase) in prepaid expenses and other assets .................................        (5,692)        (5,230)        (1,600)
      Increase (decrease) in accounts payable, accrued and other liabilities ..........       (26,425)        10,029         26,076
                                                                                            ---------      ---------      ---------
        Net cash provided by operations ...............................................        47,872        122,141        105,548
                                                                                            ---------      ---------      ---------
Cash Flows from Investing Activities:
    Purchases of property and equipment ...............................................      (140,470)      (226,779)      (136,097)
    Proceeds from the sale of marine vessels and equipment ............................        20,889        143,965        139,828
    Investments in and advances to 50% or less owned companies ........................       (21,798)        (6,973)        (7,075)
    Principal payments on notes due from 50% or less owned companies ..................         8,610          2,611            723
    Proceeds from sale of investment in 50% or less owned companies ...................           263          2,310           --
    Net (increase) decrease in restricted cash account ................................        47,249        (22,251)       (46,983)
    Proceeds from sale of available-for-sale securities ...............................       134,352        143,241           --
    Proceeds from maturity of held-to-maturity securities .............................          --           33,020            311
    Purchases of available-for-sale securities ........................................       (15,745)      (209,018)      (127,454)
    Purchase of held-to-maturity securities ...........................................          --             --          (33,032)
    Purchases of convertible preferred stock of and loans to Globe Wireless, LLC ......          --          (11,500)        (3,000)
    Cash settlement from commodity price hedging arrangements .........................         3,694           (431)          --
    Dividends received from 50% or less owned companies ...............................        11,450          2,334           --
    Acquisitions, net of cash acquired ................................................        (6,239)          --             --
    Other, net ........................................................................        (2,476)           269         (2,308)
                                                                                            ---------      ---------      ---------
        Net cash provided by (used in) investing activities ...........................        39,779       (149,202)      (215,087)
                                                                                            ---------      ---------      ---------
Cash Flows from Financing Activities:
    Payments of long-term debt and stockholder loans ..................................       (47,830)       (14,741)       (10,383)
    Proceeds from issuance of long-term debt ..........................................        38,115           --            1,125
    Payments on capital lease obligations .............................................        (1,587)        (1,454)        (1,844)
    Net proceeds from the sale of Chiles Offshore LLC 10.0% Senior Notes ..............          --          105,762           --
    Collateral deposits pursuant to swap agreements ...................................       (10,166)          --             --
    Net proceeds from sale of 7.2% Subordinated Notes .................................          --             --          148,049
    Proceeds from sale of minority interest ...........................................          --             --            4,096
    Proceeds from membership interest offering of Chiles Offshore LLC .................         4,338           --             --
    Distribution of membership interest to a minority shareholder .....................          --           (2,725)          --
    Common stock acquired for treasury ................................................       (65,520)       (60,291)        (4,743)
    Other, net ........................................................................           (36)           757           (832)
                                                                                            ---------      ---------      ---------
        Net cash provided by (used in) financing activities ...........................       (82,686)        27,308        135,468
                                                                                            ---------      ---------      ---------

Effects of Exchange Rate Changes on Cash and Cash Equivalents .........................        (1,723)          (361)           399
                                                                                            ---------      ---------      ---------
Net Increase (Decrease) in Cash and Cash Equivalents ..................................         3,242           (114)        26,328
Cash and Cash Equivalents, beginning of period ........................................       175,267        175,381        149,053
                                                                                            ---------      ---------      ---------
Cash and Cash Equivalents, end of period ..............................................     $ 178,509      $ 175,267      $ 175,381
                                                                                            =========      =========      =========

         The accompanying notes are an integral part of these financial
             statements and should be read in conjunction herewith.


                                       48

                        SEACOR SMIT INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


        1. NATURE OF OPERATIONS AND ACCOUNTING POLICIES:

        NATURE OF OPERATIONS. SEACOR SMIT Inc. ("SEACOR") and its subsidiaries
        (the "Company") furnish offshore support services to the offshore oil
        and gas exploration and production industry and provide contractual oil
        spill response and professional services to those who store, transport,
        produce, or handle petroleum and certain non-petroleum oils. The
        Company's offshore support vessels operate principally in the United
        States, West Africa, the North Sea, the Far East, Latin America, and the
        Mediterranean. SEACOR also owns a majority membership interest in Chiles
        Offshore LLC ("Chiles Offshore") and its wholly owned subsidiaries
        ("Chiles"), a joint venture and strategic alliance created to own and
        operate state-of-the-art premium jackup offshore drilling rigs. In 1999,
        construction was completed on two premium jackup offshore drilling rigs
        (the "Rigs"). Since inception in 1997 and until July 1999, Chiles
        operated as a development stage company, devoting all its efforts to
        constructing the Rigs, raising capital, and securing contracts for the
        Rigs.

        BASIS OF CONSOLIDATION. The consolidated financial statements include
        the accounts of SEACOR and all majority owned subsidiaries. All material
        intercompany accounts and transactions have been eliminated. The equity
        method of accounting is used by the Company when it has a 20% to 50%
        ownership interest in other entities and the ability to exercise
        significant influence over their operating and financial policies.
        Accordingly, the Company's share of the net earnings of these entities
        is included in consolidated net income. Investments in other companies
        are carried at cost.

        USE OF ESTIMATES. The preparation of financial statements in conformity
        with generally accepted accounting principles in the United States
        requires management to make estimates and assumptions that affect the
        reported amounts of assets and liabilities and disclosure of contingent
        assets and liabilities at the date of the financial statements and the
        reported amounts of revenues and expenses during the reporting period.
        Actual results could differ from those estimates.

        CASH AND CASH EQUIVALENTS. Cash equivalents refer to securities with
        maturities of three months or less when purchased. At December 31, 1998,
        cash, totaling $14,239,000, was restricted as to use by Chiles under
        certain escrow agreements. See Note 6, Restricted Cash.

        ACCOUNTS RECEIVABLE. Customers of offshore marine support and rig
        services are primarily major and large independent oil and gas
        exploration and production companies; whereas, customers of oil spill
        and emergency response services include tank vessel owner/operators,
        refiners, terminals, exploration and production facilities and pipeline
        operators. The Company's customers are granted credit on a short-term
        basis and related credit risks are considered minimal.

        PROPERTY AND EQUIPMENT. Property and equipment are recorded at
        historical cost and depreciated over the estimated useful lives of the
        related assets. Depreciation is computed on the straight-line method for
        financial reporting purposes. Maintenance and repair costs, including
        routine drydock inspections on vessels in accordance with maritime
        regulations, are charged to operating expense as incurred. Expenditures
        that extend the useful life or improve the marketing and commercial
        characteristics of vessels and major renewals or improvements to other
        properties are capitalized. Vessels and related equipment are
        depreciated over 20-25 years, and the Rigs are depreciated over 25
        years. All other property and equipment are depreciated and amortized
        over two to ten years.

        Certain interest costs incurred during the construction of offshore
        support vessels and the Rigs have been capitalized as part of the
        assets' carrying values and are being amortized to expense over such
        assets estimated useful lives. Interest capitalized in 1999, 1998, and
        1997 totaled $9,836,000, $8,455,000, and $1,516,000, respectively.

        OTHER ASSETS. Intangibles and other assets include the following, in
        thousands:



                                                                   1999             1998
                                                                -----------     ------------
                                                                        
Goodwill                                                   $       20,118   $      17,682
Convertible preferred stock of Globe Wireless, LLC                      -          10,000
Deferred financing costs                                            9,824          10,788
Net sale-type leases, see Note 12                                   2,311           3,454
Covenants-not-to-compete                                               57           1,509
Notes receivable                                                    1,523           4,500
Collateral deposits pursuant to swap agreements, see Note 2        10,166               -
Common stock investments, carried at cost                           1,000               -
Receivable due from a financial institution pursuant
    to swap agreements, see Note 2                                  6,772               -
Other                                                                 436             764
                                                                -----------     ------------
                                                                   52,207          48,697
Less accumulated amortization                                      (6,499)         (6,406)
                                                                -----------     ------------
Total other assets                                         $       45,708   $      42,291
                                                                ===========     ============


                                       49

        Intangible assets are being amortized to expense primarily on a
        straight-line basis over their estimated period of benefit, ranging from
        two to twenty years. Amortization expense for intangible assets totaled
        $2,703,000 in 1999, $2,190,000 in 1998, and $947,000 in 1997. In 1998,
        other assets included the Company's $14,500,000 equity investment in and
        loans to Globe Wireless, LLC ("Globe Wireless"), a telecommunications
        service provider that operates a worldwide network of high frequency
        radio stations that provide a worldwide wireless data network initially
        targeted at the maritime industry in support of Internet messaging,
        telex, and facsimile communications. Globe Wireless also provides the
        maritime industry Telex-Over-Radio and satellite messaging services. Due
        to an ability to significantly influence the operating activities of
        Globe Wireless, the Company began accounting for its investment in Globe
        Wireless under the equity method during the second quarter of 1999, see
        Note 5, Investments, at Equity, and Receivables From 50% or Less Owned
        Companies.

        INCOME TAXES. Deferred income tax assets and liabilities have been
        provided in recognition of the income tax effect attributable to the
        difference between assets and liabilities reported in the tax return and
        financial statements. Deferred tax assets or liabilities are provided
        using the enacted tax rates expected to apply to taxable income in the
        periods in which the deferred tax assets and liabilities are expected to
        be settled or realized.

        DEFERRED GAIN. The Company has entered into vessel sale and leaseback
        transactions and other vessel sale transactions with joint venture
        corporations in which the Company has a 50% or less ownership interest.
        Certain gains realized from these transactions were not immediately
        recognized as income but were deferred in the Consolidated Balance
        Sheets. For the sale and leaseback transactions, gains were deferred to
        the extent of the present value of minimum lease payments and are being
        amortized to income as reductions in rental expense over the applicable
        lease terms. For vessel sale transactions with joint venture
        corporations, gains were deferred to the extent of the Company's
        ownership interest and are being amortized to income over the applicable
        vessels' depreciable lives.

        FOREIGN CURRENCY TRANSLATION. The assets, liabilities, and results of
        operations of certain SEACOR subsidiaries are measured using the
        currency of the primary foreign economic environment within which they
        operate, their functional currency. For the purpose of consolidating
        these subsidiaries with SEACOR, the assets and liabilities of these
        foreign operations are translated to U.S. dollars at currency exchange
        rates as of the balance sheet date and for revenue and expenses at the
        weighted average currency exchange rates during the applicable reporting
        periods. Translation adjustments resulting from the process of
        translating these subsidiaries' financial statements are charged to
        Accumulated Other Comprehensive Income in Stockholders' Equity.

        Certain SEACOR subsidiaries also enter into transactions denominated in
        currencies other than their functional currency. Changes in currency
        exchange rates between the functional currency and the currency in which
        a transaction is denominated is included in the determination of net
        income in the period in which the currency exchange rates change. Net
        pre-tax foreign currency exchange losses were $1,288,000 in 1999 and not
        material in 1998 and 1997. Gains and losses on foreign currency
        transactions that are designated as, and effective as, economic hedges
        of a net investment in a foreign entity (such as debt denominated in a
        foreign currency or forward exchange contracts) are charged to
        Accumulated Other Comprehensive Income in Stockholders' Equity. Gains or
        losses on foreign currency transactions that do not hedge an exposure
        are included in determining net income in accordance with the
        requirements for other foreign currency transactions as described above.

        REVENUE RECOGNITION. The Company's offshore marine and drilling service
        segments earn revenue primarily from the time charter of vessels and
        drilling contracts for rigs to customers based upon daily rates of hire.
        A time charter is a lease arrangement under which the Company provides a
        vessel or rig to a customer and is responsible for all crewing,
        insurance, and other operating expenses. Vessel or rig charters may
        range from several days to several years. Drilling contracts may be for
        single or multiple wells or for term periods.

        Environmental customers are charged retainer fees for ensuring by
        contract the availability (at predetermined rates) of the Company's
        response services and equipment. Retainer services include employing a
        staff to supervise response to an oil spill or other emergency and
        maintaining specialized equipment. Certain vessel owners pay in advance
        a minimum annual retainer fee based upon the number and size of vessels
        in each such owner's fleet and in some circumstances pay the Company
        additional fees based upon the level of each vessel owner's voyage
        activity in the U.S. The Company recognizes the greater of revenue
        earned by voyage activity or the portion of the retainer earned in each
        accounting period. Certain other vessel owners pay a fixed fee for the
        Company's retainer service and such fee is recognized ratably throughout
        the year. Facility owners generally pay a quarterly fee based on a
        formula that defines and measures petroleum products transported to or
        processed at the facility. Some facility owners pay an annual fixed fee
        and such fee is recognized ratably throughout the year. Retainer
        agreements with vessel owners generally range from one to three years
        while retainer arrangements with facility owners are as long as ten
        years. Spill response revenue is dependent on the magnitude of any one
        spill response and the number of spill responses within a given fiscal


                                       50

        year. Consequently, spill response revenue can vary greatly between
        comparable periods. Consulting fees are also earned by the Company's
        environmental service business from preparation of customized training
        programs, planning of and participation in customer oil spill response
        drill programs and response exercises, and other special projects.











                                       51

        EARNINGS PER SHARE. Basic earnings per common share were computed based
        on the weighted-average number of common shares issued and outstanding
        for the relevant periods. Diluted earnings per common share were
        computed based on the weighted-average number of common shares issued
        and outstanding plus all potentially dilutive common shares that would
        have been outstanding in the relevant periods assuming the vesting of
        restricted stock grants and the issuance of common shares for stock
        options and convertible subordinated notes through the application of
        the treasury stock and if-converted methods, respectively. Certain
        options and share awards, 31,067, 52,711, and 16,960 in 1999, 1998, and
        1997, respectively, were excluded from the computation of diluted
        earnings per share as the effect would have been antidultive.


                                                                                                    Per
                                                                       Income         Shares       Share
                                                                       ------         ------       -----
                                                                                        
FOR THE YEAR ENDED 1999-
   BASIC EARNINGS PER SHARE:
     Income Before Extraordinary Item........................    $    29,745,000     11,911,653  $    2.50
                                                                                                 =========
   EFFECT OF DILUTIVE SECURITIES:
     Options and Restricted Stock............................                  -        123,631
     Convertible Securities..................................          6,714,000      2,799,679
                                                                 --------------- --------------
   DILUTED EARNINGS PER SHARE:
     Income Available to Common Stockholders
       Plus Assumed Conversions.............................     $    36,459,000     14,834,963  $    2.46
                                                                 =============== ==============  =========
FOR THE YEAR ENDED 1998-
   BASIC EARNINGS PER SHARE:
     Income Before Extraordinary Item........................    $   124,618,000     13,135,111  $    9.49
                                                                                                 =========
   EFFECT OF DILUTIVE SECURITIES:
     Options and Restricted Stock............................                  -        125,901
     Convertible Securities..................................          6,761,000      2,829,544
                                                                 --------------- --------------
   DILUTED EARNINGS PER SHARE:
     Income Available to Common Stockholders
       Plus Assumed Conversions..............................    $   131,379,000     16,090,556  $    8.17
                                                                 =============== ==============  =========
FOR THE YEAR ENDED 1997-
   BASIC EARNINGS PER SHARE:
     Income Before Extraordinary Item........................    $   119,593,000    13,840,205   $    8.64
                                                                                                 =========
   EFFECT OF DILUTIVE SECURITIES:
     Options and Restricted Stock............................                  -       163,930
     Convertible Securities..................................          6,787,000     2,840,866
                                                                 --------------- --------------
   DILUTED EARNINGS PER SHARE:
     Income Available to Common Stockholders
       Plus Assumed Conversions..............................    $   126,380,000     16,845,001  $    7.50
                                                                 =============== ==============  =========


        COMPREHENSIVE INCOME. In 1998, the Company adopted Statement of
        Financial Accounting Standards No. 130 ("SFAS 130"), "Reporting
        Comprehensive Income," which establishes standards for reporting and
        displaying comprehensive income and its components in a full set of
        general purpose financial statements. Comprehensive income is defined as
        the total of net income and all other changes in equity of an enterprise
        that result from transactions and other economic events of a reporting
        period other than transactions with owners. The Company has chosen to
        disclose Comprehensive Income in the Consolidated Statements of Changes
        in Equity. For purposes of SFAS 130, the Company's other comprehensive
        income or loss was comprised of net currency translation adjustments and
        unrealized holding gains and losses on available-for-sale securities.
        Income taxes allocated to each component of other comprehensive income
        during the years indicated are as follows, in thousands of dollars:



                                                                               Before-Tax        Tax (Expense)        Net-of-Tax
                                                                                 Amount            or Benefit           Amount
                                                                            -----------------  ------------------  -----------------
                                                                                                          
1999
Foreign currency translation adjustments................................. $           (809)  $            283    $           (526)
Unrealized gains on available-for-sale securities:
    Unrealized holding gains (losses) arising during period..............           (4,030)             1,412              (2,618)
    Less - reclassification adjustment for (gains) losses included in                  279                (98)                181
net income...............................................................
                                                                            -----------------  ------------------  -----------------
Other comprehensive income............................................... $         (4,560)  $          1,597    $         (2,963)
                                                                            =================  ==================  =================
1998
Foreign currency translation adjustments................................. $           (186)  $             65    $           (121)
Unrealized gains on available-for-sale securities:
    Unrealized holding gains (losses) arising during period..............            1,757               (615)              1,142
    Less - reclassification adjustment for (gains) losses included in               (1,827)               639              (1,188)
net income...............................................................
                                                                            -----------------  ------------------  -----------------
Other comprehensive income............................................... $           (256)  $             89    $           (167)
                                                                            =================  ==================  =================
1997
Foreign currency translation adjustments................................. $           (876)  $            306    $           (570)
Unrealized gains on available-for-sale securities:
    Unrealized holding gains (losses) arising during period..............              (25)                 9                 (16)
    Less - reclassification adjustment for (gains) losses included in                    -                  -                   -
net income...............................................................
                                                                            -----------------  ------------------  -----------------
Other comprehensive income............................................... $           (901)  $            315    $           (586)
                                                                            =================  ==================  =================


                                       52

        Accumulated other comprehensive income balances during the years
indicated are as follows, in thousands of dollars:



                                          Foreign                  Unrealized               Accumulated
                                          Currency             Gains (Losses) on        Other Comprehensive
                                           Items                   Securities                 Income
                                  ------------------------  ------------------------  -----------------------
                                                                             
1999
Beginning balance...............$              233        $              (62)       $              171
Current period change...........              (526)                   (2,437)                   (2,963)
                                  ------------------------  ------------------------  -----------------------
Ending Balance..................$             (293)       $           (2,499)       $           (2,792)
                                  ========================  ========================  =======================
1998
Beginning balance...............$              354        $              (16)       $              338
Current period change...........              (121)                      (46)                     (167)
                                  ------------------------  ------------------------  -----------------------
Ending Balance..................$              233        $              (62)       $              171
                                  ========================  ========================  =======================
1997
Beginning balance...............$              924        $                -        $              924
Current period change...........              (570)                      (16)                     (586)
                                  ------------------------  ------------------------  -----------------------
Ending Balance..................$              354        $              (16)       $              338
                                  ========================  ========================  =======================


        RELIANCE ON FOREIGN OPERATIONS. For the years ended December 31, 1999,
        1998, and 1997, approximately 36%, 39%, and 38%, respectively, of the
        Company's operating revenues were derived from its foreign operations.
        The Company's foreign operations, primarily contained in its offshore
        marine service segment, are subject to various risks inherent in
        conducting business in foreign nations. These risks include, among
        others, political instability, potential vessel seizure, nationalization
        of assets, currency restrictions and exchange rate fluctuations,
        import-export quotas, and other forms of public and governmental
        regulations, all of which are beyond the control of the Company.
        Although, historically, the Company's operations have not been affected
        materially by such conditions or events, it is not possible to predict
        whether any such conditions or events might develop in the future. The
        occurrence of any one or more of such conditions or events could have a
        material adverse effect on the Company's financial condition and results
        of operations. Oil spill response and related training and consulting
        service revenues derived from foreign markets have not been material,
        and the Rigs operate in the U.S. Gulf of Mexico.

        RECENT ACCOUNTING PRONOUNCEMENTS. In June 1998, the Financial Accounting
        Standards Board ("FASB") issued Statement of Financial Accounting
        Standards No. 133 ("SFAS 133"), "Accounting for Derivative Instruments
        and Hedging Activities." The Statement establishes accounting and
        reporting standards requiring that every derivative instrument be
        recorded in the balance sheet as either an asset or liability measured
        at its fair value. SFAS 133 requires that changes in the derivative's
        fair market value be recognized currently in earnings unless specific
        hedge accounting criteria are met. Special accounting for qualifying
        hedges allows a derivative's gains and losses to offset related results
        on the hedged item in the income statement, and requires that a company
        must formally document, designate, and assess the effectiveness of
        transactions that receive hedge accounting. In June 1999, the FASB
        issued SFAS No. 137, "Accounting for Derivative Instruments and Hedging
        Activities - Deferral of the Effective Date of FASB Statement No. 133"
        ("SFAS 137"). SFAS 137 is an amendment of SFAS 133 and defers the
        effective date of SFAS 133 to June 15, 2000. The Company has not yet
        quantified the impact on its financial statements but does not believe
        adoption will have a material impact on net income, comprehensive
        income, and accumulated other comprehensive income.


        RECLASSIFICATIONS. Certain reclassifications of prior year information
        have been made to conform with the current year presentation.

        2. FINANCIAL INSTRUMENTS:

        The estimated fair value of the Company's financial instruments have
        been determined using available market information and appropriate
        valuation methodologies. Considerable judgment was required in
        developing the estimates of fair value, and accordingly, the estimates
        presented herein, in thousands of dollars, are not necessarily
        indicative of the amounts that the Company could realize in a current
        market exchange.



                                                                                  1999                           1998
                                                                      -----------------------------  -----------------------------
                                                                         Carrying       Estimated       Carrying       Estimated
                                                                          Amount       Fair Value        Amount       Fair Value
                                                                      --------------  -------------  --------------  -------------
                                                                                                         
ASSETS:
    Cash and temporary cash investments............................. $     178,509   $     178,509  $     175,267   $     175,267
    Marketable securities...........................................        73,005          73,005        194,703         194,703
    Collateral deposits, notes, and other receivables...............        22,169          22,151         12,114          12,072
    Restricted cash.................................................        21,985          21,985         69,234          69,234
    Convertible preferred and other stock investments, carried at            1,000           1,000         10,000          10,000
cost
    Commodity swaps, options, and futures and forward contracts.....            59              59          3,708           3,708
LIABILITIES:
    Long-term debt, including current portion.......................       449,238         424,886        454,079         441,599
    Indebtedness to a minority shareholder of a subsidiary..........           607             630            607             669
    Commodity swaps, options, and futures and forward contracts.....         1,285           1,285             37              37



                                       53

        The carrying value of cash and temporary cash investments, restricted
        cash, collateral deposits, and other receivables approximate fair value.
        It was not practicable to estimate the fair value of the Company's 1998
        investment in convertible preferred stock and other less significant
        stock investments in 1999 because of the lack of quoted market prices
        and the inability to estimate fair value without incurring excessive
        costs. The fair values of the Company's notes receivable, long-term
        debt, indebtedness to a minority stockholder, marketable securities,
        commodity swaps, options, and futures, and forward contracts were
        estimated based upon quoted market prices or by discounting the
        underlying cash flows using market information as to interest rates for
        receivables and indebtedness of similar terms and maturity.

        The Company has foreign currency exchange risks primarily related to its
        offshore marine service vessel operations that are conducted from ports
        located in the United Kingdom, where its functional currency is pounds
        sterling. The financial statements of the Company's United Kingdom
        operations are measured using the pound sterling and changes in the
        strength of that currency relative to the U.S. dollar and the
        corresponding adjustment to the net assets of those operations caused by
        exchange rate fluctuations result in the recognition of currency
        translation adjustments that are reported in Accumulated Other
        Comprehensive Income in Stockholders' Equity. To protect the U.S. dollar
        value of certain pound sterling denominated net assets of the Company
        from the effects of volatility in foreign exchange rates that might
        occur prior to their conversion to U.S. dollars, the Company has entered
        into forward exchange contracts. The forward exchange contracts enable
        the Company to sell pounds sterling in the future at fixed exchange
        rates to offset the consequences of changes in foreign exchange on the
        amount of U.S. dollar cash flows to be derived from the net assets. The
        Company considers these forward exchange contracts as economic hedges of
        its net investment in the United Kingdom and resulting gains or losses
        from those transactions are charged to Accumulated Other Comprehensive
        Income in Stockholders' Equity. At December 31, 1999, the total notional
        value of those forward exchange contracts was $3,935,000, all of which
        expire at various dates through October 2000.

        The Company has entered into and settled various positions in natural
        gas and crude oil via swaps, options, and futures contracts pursuant to
        which, on each applicable settlement date, the Company receives or pays
        an amount, if any, by which a contract price for a swap, an option, or a
        futures contract exceeds the settlement price quoted on the New York
        Mercantile Exchange ("NYMEX") or receives or pays the amount, if any, by
        which the settlement price quoted on the NYMEX exceeds the contract
        price. The general purpose of these hedge transactions is to provide
        value to the Company should the price of natural gas and crude oil
        decline which over time, if sustained, would lead to a decline in the
        Company's offshore assets' market values and cash flows. For accounting
        purposes, the Company records the change in the market value of its
        commodity contracts at the end of each month and recognizes a related
        gain or loss. For the twelve month periods ending December 31, 1999 and
        1998, the Company has recognized $1,323,000 of net losses and $3,273,000
        of net gains, respectively, from commodity hedging activities that were
        reported as Other Income in the Consolidated Statements of Income. At
        December 31, 1999, the Company's positions in commodity contracts were
        not material. The Company had no positions in commodity contracts during
        1997.

        In order to reduce its cost of capital, the Company entered into swap
        agreements during 1999 with a major financial institution with respect
        to notional amounts equal to a portion of the $110,000,000 aggregate
        principal amount of the Chiles 10.0% Senior Notes Due 2008 (the "Chiles
        10.0% Notes"). Pursuant to each such agreement, such financial
        institution has agreed to pay to the Company an amount equal to interest
        paid by Chiles on the notional amount of Chiles 10.0% Notes subject to
        such agreement, and the Company has agreed to pay to such financial
        institution an amount equal to interest currently at the rate of
        approximately 6.9% per annum on the agreed upon price of such notional
        amount of Chiles 10.0% Notes as set forth in the applicable swap
        agreement. At December 31, 1999, the Company bears the economic risk of
        $68,130,000 notional principal amount of the Chiles 10.0% Notes covered
        by such swap agreements. The Company has provided the financial
        institution with cash collateral of $10,166,000 which will be released
        to the Company should the aggregate exposure under the swap agreements
        be reduced to less than $50,000,000.

        Upon termination of each swap agreement, the financial institution has
        agreed to pay to the Company the amount, if any, by which the fair
        market value of the notional amount of Chiles 10.0% Notes subject to the
        swap agreement on such date exceeds the agreed upon price of such
        notional amount as set forth in such swap agreement, and the Company has
        agreed to pay to such financial institution the amount, if any, by which
        the agreed upon price of such notional amount exceeds the fair market
        value of such notional amount on such date. Each swap agreement
        terminates upon the earliest to occur of the redemption in full or
        maturity of the Chiles 10.0% Notes, at any time at the election of the
        Company or, at the election of the financial institution, on April 30,
        2004. At December 31, 1999, the market value of such swaps, totaling
        $6,772,000, has been recorded as a premium with respect to the Chiles
        10.0% Notes and a receivable due from the financial institution with
        which the Company has swap agreements. The premium will be amortized


                                       54

        over the remaining life of the Chiles 10.0% Notes, subject to periodic
        revaluation based upon the fair market value of such swaps.

        3. MARKETABLE SECURITIES:

        The Company's marketable securities are categorized as
        available-for-sale, as defined by the Statement of Financial Accounting
        Standards No. 115, "Accounting for Certain Investments in Debt and
        Equity Securities." Available-for-sale securities are measured at fair
        values with unrealized holding gains and losses charged to Accumulated
        Other Comprehensive Income in Stockholders' Equity.
        The amortized cost and fair value of marketable securities at December
        31, 1999 and 1998 were as follows, in thousands of dollars:



                                                                   Gross Unrealized Holding
                                                                 -----------------------------
            Type of Securities                 Amortized Cost       Gains         Losses         Fair Value
- --------------------------------------------  -----------------  ------------   ------------  ------------------
                                                                                  
1999
   AVAILABLE-FOR-SALE:
     U.S. Government and Agencies.........   $          56,312  $         -   $     (3,282)  $          53,030
     U.S. States and Political Subdivisions              1,045            -            (81)                964
     Corporate Debt Securities............               1,770            -            (80)              1,690
     U.K. Government Securities...........               4,439            -           (110)              4,329
     Equity Securities....................              13,428          637         (1,073)             12,992
                                              -----------------  ------------   ------------  ------------------
                                             $          76,994  $       637   $     (4,626)  $          73,005
                                              =================  ============   ============  ==================
1998
   AVAILABLE-FOR-SALE:
     U.S. Government and Agencies.........   $         142,409  $     1,465   $       (429)  $         143,445
     U.S. States and Political Subdivisions             42,240           37           (783)             41,494
     Corporate Debt Securities............               5,143            -           (337)              4,806
     U.K. Government Securities...........               4,529           49              -               4,578
     Equity Securities....................                 427            -            (47)                380
                                              -----------------  ------------   ------------  ------------------
                                             $         194,748  $     1,551   $     (1,596)  $         194,703
                                              =================  ============   ============  ==================


        The contractual maturities of marketable securities at December 31, 1999
were as follows, in thousands of dollars:



                                                                  Amortized        Fair
                     Type and Maturity                              Cost          Value
- -------------------------------------------------------------    ------------  -------------
                                                                         
AVAILABLE-FOR-SALE:
    Mature in One Year or Less................................   $    18,276   $    18,196
    Mature After One Year Through Five Years..................        32,381        30,645
    Mature After Five Years Through Ten Years..................        5,317         4,873
    Mature After Ten Years.....................................        7,592         6,299
                                                                 ------------  -------------
                                                                 $    63,566   $    60,013
                                                                 ============  =============


        During 1999 and 1998, the sale of available-for-sale securities resulted
        in gross realized gains of $721,000 and $2,084,000, respectively, and
        gross realized losses of $1,000,000 and $257,000, respectively. The
        specific identification method was used to determine the cost of
        available-for-sale securities in computing realized gains and losses. No
        available-for-sale securities were sold during 1997.

        4. VESSEL ACQUISITIONS AND DISPOSITIONS:

        SMIT TRANSACTION. On December 19, 1996, the Company acquired
        substantially all of the offshore support vessel assets, vessel spare
        parts, and certain related joint venture interests owned by SMIT
        Internationale N.V. ("SMIT") and its subsidiaries (the "SMIT
        Transaction"). Pursuant to a letter of intent, dated December 19, 1996,
        between the Company and SMIT, that provided for the Company to acquire
        an additional four vessels (the "Malaysian Purchase") that were owned by
        a Malaysian joint venture in which SMIT had an interest, the Company
        completed the Malaysian Purchase for aggregate consideration of
        $12,909,000 in 1997.

        GALAXIE TRANSACTION. On January 3, 1997, the Company acquired
        substantially all of the offshore marine assets, including vessels,
        owned by Galaxie Marine Service, Inc., Moonmaid Marine, Inc., Waveland
        Marine Service, Inc., and Triangle Marine, Inc. (collectively,
        "Galaxie"), for aggregate consideration of $23,354,000, consisting of
        $20,567,000 in cash and 50,000 shares of SEACOR's common stock. The 24
        vessels acquired from Galaxie primarily serve the oil and gas industry
        in the U.S. Gulf of Mexico.

        VESSEL CONSTRUCTION. Since 1996, the Company completed the construction
        of 11 crew, 7 anchor handling towing supply, 5 supply, and 2 utility
        vessels at an approximate aggregate cost of $234,140,000.

        VESSEL DISPOSITIONS. The table below sets forth, during the fiscal years
        indicated, the number of offshore support vessels sold by type of
        service. At December 31, 1999, 23 of those vessels, including 15
        supply/towing supply, 5 crew, and 3 anchor handling towing supply, were
        bareboat chartered-in by the Company.



                       Type of Vessel                     1999            1998            1997
         ------------------------------------------   -------------   -------------   -------------
                                                                             
         Utility...................................           2               7               7
         Supply....................................           -               6              15
         Anchor Handling Towing Supply.............           1               8               5
         Crew......................................          11               5               2
         Towing Supply.............................           -               8               6
         Freight...................................           -               -               1
         Seismic...................................           -               -               1
                                                      -------------   -------------   -------------
                                                             14              34              37
                                                      =============   =============   =============


                                       55

        5. INVESTMENTS, AT EQUITY, AND RECEIVABLES FROM 50% OR LESS OWNED
           COMPANIES:

        Investments, carried at equity, and advances to 50% or less owned
        companies at December 31, 1999 and 1998 were as follows, in thousands of
        dollars:



                                                        Ownership
                50% or Less Owned Companies            Percentage           1999           1998
         ------------------------------------------  ---------------    -------------  -------------
                                                                              
         Globe Wireless, LLC.......................       47.4%        $     31,646   $          -
         SEAMEX International, Ltd.................       40.0%              14,025         14,195
         Ocean Marine Services (Egypt) Ltd.........       33.3%               6,252          6,897
         SEACOR-Smit (Aquitaine) Ltd...............       50.0%               5,641         14,529
         Maritima Mexicana, S.A....................       40.0%               3,828          4,506
         Ultragas Smit Lloyd Ltda..................       49.0%               3,524          2,638
         Patagonia Offshore Services S.A...........       50.0%               2,595          4,228
         Other.....................................    25.7%-50.0%            9,765          8,485
                                                                        -------------  -------------
                                                                       $     77,276   $     55,478
                                                                        ============= ==============


        GLOBE WIRELESS. During April 1998, the Company entered into a financing
        arrangement with Globe, Inc., the predecessor of Globe Wireless,
        providing for potential financing from the Company aggregating
        $20,000,000, comprised of $10,000,000 of Globe, Inc.'s Series C
        Convertible Preferred Stock ("Series C Stock") and $10,000,000 of senior
        secured promissory notes ("Promissory Notes"). Upon signing of the
        financing agreements, the Company acquired 3,288,156 shares of Series C
        Stock for $7,000,000, exchanged a note evidencing a $3,000,000 loan in
        1997 for Promissory Notes, and received a warrant for the purchase of
        additional Series C Stock at an exercise price of $2.13 per share (the
        "Series C Warrant"). In October 1998, the Company purchased an
        additional 1,750,000 shares of Series C Stock for $3,000,000,
        renegotiated certain covenants of the April 1998 financing agreement,
        and in connection therewith, the exercise price of the Series C Warrant
        was reduced to $1.71 per share. In April 1999, the Series C Warrant was
        exchanged for a warrant to purchase Class C Preferred Units of Globe
        Wireless ("Class C Units") at an exercise price of $1.71 per unit (the
        "SEACOR Warrants"), and all of Globe, Inc.'s Series C Stock, including
        that held by the Company, was exchanged for an equivalent number of
        Class C Units. Through December 16, 1999, the Company advanced Globe
        Wireless an additional $13,721,000.

        In May 1999, SEACOR, through its wholly owned subsidiary, SEACOR Malted
        Inc., and its wholly owned subsidiary Malted Ltd., acquired all of the
        issued and outstanding stock of Marinet Systems Ltd. ("Marinet"), a
        United Kingdom based provider of communications services and equipment
        to the maritime industry. Effective July 1, 1999, Globe Wireless
        acquired all of the issued and outstanding stock of SEACOR Malted Inc.
        and its wholly owned subsidiaries for a $5,279,000 note payable to the
        Company (the "Marinet Loan").

        In December 1999, Globe Wireless commenced a private placement offering
        (the "Private Placement") to raise a minimum of $34,000,000 (the
        "Minimum Offering") and a maximum of $44,000,000 (the "Maximum
        Offering") in additional capital for general corporate purposes,
        including capital expenditures and working capital, through the sale of
        18,565,401 Class D Preferred Units ("Class D Units") at $2.37 per unit.
        In February 2000, the Maximum Offering was increased to $57,000,000. The
        Minimum Offering was consummated as of December 16, 1999, and in
        connection therewith, Globe Wireless issued 15,470,047 Class D Units in
        exchange for gross cash proceeds of $24,664,000 and the conversion into
        Class D Units of certain advances by the Company to Globe Wireless and
        the Marinet Loan, aggregating $12,000,000. In connection with the
        consummation of the Minimum Offering, the Company exercised the SEACOR
        Warrant and purchased 7,556,667 Class C Units at the exercise price of
        $1.71 per unit from Globe Wireless in exchange for the cancellation of
        $10,000,000 of Promissory Notes and the payment of $2,954,000 in cash.
        In February 2000, Globe Wireless completed the Maximum Offering through
        the sale of 8,580,586 additional Class D Units in exchange for gross
        cash proceeds of $20,336,000. At present, through its ownership of Class
        D Units and Class C Units, the Company controls approximately 38% of the
        voting Units issued by Globe Wireless.

        Prior to 1999, the Company carried its investment in Globe Wireless at
        cost. Due to an ability to significantly influence the operating
        activities of Globe Wireless, the Company began accounting for its
        investment in Globe Wireless under the equity method of accounting
        during the second quarter of 1999.

        SMIT JOINT VENTURES. Pursuant to the SMIT Transaction, the Company and
        SMIT structured a joint venture, SEACOR-Smit (Aquitaine) Ltd., a
        Bahamian corporation ("Aquitaine"), and the Company purchased the joint
        venture interests of SMIT in Smit Swire Shilbaya Egypt Ltd., an Egyptian
        corporation ("SSS"), and Ultragas Smit Lloyd Ltda., a Chilean
        corporation ("Ultragas-Smit"). During 1998, the assets of SSS were
        transferred to Ocean Marine Services (Egypt) Ltd. ("OMS"), also an
        Egyptian corporation. At December 31, 1999, OMS owned six vessels that
        were operating offshore Egypt; Ultragas-Smit owned three vessels that


                                       56

        were operating offshore Chile; and Aquitaine owned three vessels that
        were operating in the Far East and Latin America.

        In 1999, the Board of Directors of Aquitaine adopted a plan of
        liquidation due to such venture's limited opportunities for future
        investments and growth and the Company received a $10,000,000
        liquidating dividend. Aquitaine shall continue operations until such
        time as its remaining fleet can be sold or otherwise liquidated. With
        respect to the Company's equity interest in the net earnings of
        Aquitaine, the Company has recorded $3,000,000 of income tax expense in
        1999. In prior periods, no income tax expense was recorded in connection
        with this foreign joint venture's operations in accordance with
        Statement of Financial Accounting Standards No. 109, "Accounting for
        Income Taxes."

        PATAGONIA. During 1997, the Company and a subsidiary of Sociedad Naviera
        Ultragas Ltda., the Company's joint venture partner in Ultragas-Smit,
        formed Patagonia Offshore Services S.A., a Panamanian corporation
        ("Patagonia"), to operate vessels in support of the Argentine and
        adjacent offshore markets. Patagonia owns one vessel that was acquired
        from the Company in 1997. The Company realized a gain from the vessel
        sale that has been deferred to the extent of its ownership interest in
        Patagonia and is being amortized to income over the vessel's depreciable
        life.

        TMM JOINT VENTURES. During 1994, the Company and Transportacion Maritima
        Mexicana S.A. de C.V., a Mexican corporation ("TMM"), structured a joint
        venture to serve the Mexican offshore market (the "TMM Joint Venture")
        that is comprised of two corporations, Maritima Mexicana, S.A. and
        SEAMEX International Ltd. ("SEAMEX"), a Liberian corporation. Since
        1994, the Company has sold six of its vessels to the TMM Joint Venture.
        The Company realized gains from the vessel sales that have been deferred
        to the extent of the Company's ownership interest in the TMM Joint
        Venture and are being amortized to income over the vessels' depreciable
        lives. At December 31, 1999, the TMM Joint Venture operated 12 offshore
        support vessels owned by the joint venture and 7 bareboat and time
        chartered-in offshore support vessels, 5 of which were provided by the
        Company.

        OTHER. The Company participates in other joint ventures that operate
        offshore support vessels, environmental service businesses, and a
        Handymax Dry-Bulk vessel built in 1990.

        At December 31, 1999, the amount of consolidated retained earnings that
        represents undistributed earnings of 50% or less owned companies
        accounted for by the equity method was $21,001,000. Deferred taxes have
        not been recorded with respect to $11,113,000 of those earnings.

        6. RESTRICTED CASH:

        At December 31, 1999, restricted cash, totaling $21,985,000, is intended
        for use in defraying costs to construct offshore support vessels for the
        Company. At December 31, 1999, the Company has funded $20,421,000 of
        offshore support vessels construction costs from unrestricted cash
        balances, and subject to the Maritime Administration's approval, the
        Company expects such amounts to be reimbursed from construction reserve
        fund restricted cash accounts, as discussed below.

        Proceeds from the sale of certain offshore support vessels in 1997,
        1998, and 1999 have been deposited into escrow and construction reserve
        fund bank accounts for purposes of acquiring newly constructed U.S.-flag
        vessels and qualifying for the Company's temporary deferral of taxable
        gains realized from the sale of the vessels. Escrow accounts were
        established pursuant to certain exchange and escrow agreements and
        restrict the use of funds deposited therein for a period of six months.
        Should replacement offshore support vessels not be delivered prior to
        expiration of the applicable six-month escrow period, funds then
        remaining in the escrow accounts will be released to the Company for
        general use. In 1998, the Company also established, pursuant to Section
        511 of the Merchant Marine Act, 1936, as amended, joint depository
        construction reserve fund accounts with the Maritime Administration.
        From date of deposit, withdrawals from these accounts are subject to
        prior written approval of the Maritime Administration. Funds must be
        committed for expenditure within three years or be released for the
        Company's general use. Gains from vessel sales previously deferred would
        become immediately taxable upon release to the Company, for general use,
        of sale proceeds that were deposited into joint depository construction
        reserve fund accounts.

        Net proceeds from the sale by Chiles of the Chiles 10.0% Notes were
        deposited into escrow accounts in accordance with certain escrow
        agreements between Chiles and U.S. Bank Trust National Association, as
        Escrow Agent. The use of these funds was limited to (i) partially
        funding the construction of the Rigs, (ii) paying interest on the Chiles
        10.0% Notes through the first two semi-annual interest payment dates,
        and (iii) providing working capital. At December 31, 1999, the net
        proceeds from the sale of the Chiles 10.0% Notes had been expended in
        accordance with the terms of the escrow agreements.


                                       57

        7. INCOME TAXES:

        Income before income taxes, minority interest, equity in net earnings of
        50% or less owned companies, and extraordinary item derived from the
        United States and foreign operations for the years ended December 31,
        are as follows, in thousands of dollars:



                                                                1999                 1998                 1997
                                                           ---------------      ---------------      ---------------
                                                                                           
 United States........................................$           36,382   $          118,721   $          141,979
 Foreign..............................................             7,134               54,175               33,724
                                                           ---------------      ---------------      ---------------
                                                      $           43,516   $          172,896   $          175,703
                                                           ===============      ===============      ===============

        The Company files a consolidated U.S. federal tax return. Income tax
        expense (benefit) consisted of the following components for the years
        ended December 31, in thousands of dollars:
                                                                1999                 1998                 1997
                                                           ---------------      ---------------      ---------------
 Current:
    State.............................................$              666   $            1,367   $              295
    Federal...........................................            (2,176)              26,607               33,303
    Foreign...........................................             1,868                5,661                2,719
 Deferred:
    Federal...........................................            14,891               26,658               25,067
                                                           ---------------      ---------------      ---------------
                                                      $           15,249   $           60,293   $           61,384
                                                           ===============      ===============      ===============

        The following table reconciles the difference between the statutory
        federal income tax rate for the Company to the effective income tax
        rate:

                                                                1999                  1998                 1997
                                                           ---------------      ----------------     ----------------
   Statutory Rate.....................................            35.0.%               35.0 %                35.0%
   Foreign and State Taxes............................             1.8.%                1.3 %                 0.2%
   Other..............................................            (1.8)%               (1.4)%                (0.3%
                                                           ---------------      ---------------      ---------------
                                                                  35.0 %               34.9 %                34.9%
                                                           ===============      ===============      ===============


        The components of the net deferred income tax liability were as follows,
        for the years ended December 31, in thousands of dollars:



                                                               1999               1998
                                                          --------------     --------------
                                                                      
Deferred tax assets:
       Foreign Tax Credit Carryforwards..............  $           2,486  $             881
       Subpart F Loss................................              2,499              2,462
       Nondeductible Accruals........................                827              1,030
       Other.........................................              1,800                128
                                                          --------------     --------------
             Total deferred tax assets...............              7,612              4,501
                                                          --------------     --------------
Deferred tax liabilities:
       Property and equipment........................            106,099             88,184
       Investment in Subsidiaries....................              3,060              2,192
       Other.........................................                  -                 93
                                                          --------------     --------------
             Total deferred tax liabilities..........            109,159             90,469
                                                          --------------     --------------
                   Net deferred tax liabilities......  $         101,547  $          85,968
                                                          ==============     ==============


        The Company has not recognized a deferred tax liability of $7,585,000
        for undistributed earnings of certain non-U.S. subsidiaries and joint
        venture corporations because it considers those earnings to be
        indefinitely reinvested abroad. As of December 31, 1999, the
        undistributed earnings of these subsidiaries and joint venture
        corporations were $21,671,000.

        8. LONG-TERM DEBT:

        Long-term debt balances, maturities, and interest rates are as follows
        as of December 31, in thousands of dollars:



                                                                                               1999                 1998
                                                                                         ----------------     ----------------
                                                                                                       
5 3/8% Convertible Subordinated Notes due 2006, interest payable semi-annually       $        181,600     $        186,750

7.2% Senior Notes due 2009, interest payable semi-annually                                    147,500              150,000

10.0% Senior Notes of Chiles due 2008, interest payable semi-annually                          68,265               92,870

5.467% Subordinated Promissory Notes due SMIT in 2004, interest payable quarterly              23,200               23,200

Chiles Bank Facility, principal payments beginning 2003 and due through 2006,
  bearing interest at LIBOR plus 1 3/8% (approximately 7.3% at December  31, 1999)             22,000                    -

Capital Lease Obligations, see Note 12                                                         19,255               20,842

Promissory Notes due various financial institutions, primarily secured by property
  and equipment, interest rates ranging from 7.15% to 10.0%, principal repayments
  at various dates through 2004                                                                 1,515                    -

Promissory Note due a vessel charterer, payable in equal monthly installments
  from from February 1998 through June 2002, bearing interest at 10.0%,
  secured by mortgage on a vessel                                                                 737                  985

Promissory Note due a stockholder, payable in equal annual installments from
  January 1998 through January 2001, bearing interest at 7.5%                                     536                  776
                                                                                         ----------------     ----------------
                                                                                              464,608              475,423
Less   - Portion due within one year                                                           (2,832)              (2,122)
       - Debt premium or (discount), net                                                        3,885                 (502)
                                                                                         ----------------     ----------------
                                                                                     $        465,661     $        472,799
                                                                                         ================     ================

                                       58

        Annual maturities of long-term debt for the five years following
        December 31, 1999 are as follows, in thousands of dollars.



                                                   2000            2001(1)           2002             2003             2004
                                                -----------      -----------     ------------     ------------     ------------
                                                                                                    
Amount.....................................   $       2,832    $      18,729   $          282   $        7,636   $       30,765
                                                ===========      ===========     ============     ============     ============



- --------------
        (1)     Six million seven hundred and fifty thousand dollars of the debt
                maturing in 2001 is payable in convertible subordinated notes in
                accordance with the terms of a lease between the Company and
                SMIT.

        CONVERTIBLE NOTES. On November 5, 1996, the Company completed the
        private placement of $172,500,000 aggregate principal amount of its 5
        3/8% Convertible Subordinated Notes due November 15, 2006 (the
        "Convertible Notes"). The Convertible Notes and the SMIT Convertible
        Notes (collectively the "5 3/8% Notes") were issued under an Indenture
        dated as of November 1, 1996, (the "1996 Indenture"), between the
        Company and First Trust National Association, as trustee. The 5 3/8%
        Notes are convertible, in whole or part, at the option of the holder at
        any time prior to the close of business on the business day next
        preceding November 15, 2006, unless previously redeemed into shares of
        SEACOR's common stock at a conversion price of $66.00 per share
        (equivalent to a conversion rate of 15.1515 shares of SEACOR's common
        stock per $1,000 principal amount of the 5 3/8% Notes), subject to
        adjustment in certain circumstances. The 5 3/8% Notes are redeemable at
        the Company's option at any time on or after November 24, 1999 at the
        redemption prices specified therein, together with accrued and unpaid
        interest to the date of repurchase. The Company incurred $4,311,000 in
        costs associated with the sale of the Convertible Notes including
        $3,881,000 of underwriter's discount. The debt issue costs are reported
        in other assets and are being amortized to expense over the life of the
        related debt. The 5 3/8% Notes are general unsecured obligations of the
        Company, subordinated in right of payment to all "Senior Indebtedness"
        (as defined in the 1996 Indenture) of the Company and effectively
        subordinated in right of payment to all indebtedness and other
        obligations and liabilities and any preferred stock of the Company's
        subsidiaries. The 5 3/8% Notes will mature on November 15, 2006 and bear
        interest at a rate of 5 3/8% per annum from November 5, 1996, in the
        case of the Convertible Notes, and December 19, 1996, in the case of the
        SMIT Convertible Notes, or in each case, from the most recent interest
        payment date on which interest has been paid or provided for, payable on
        May 15 and November 15 of each year, commencing on May 15, 1997 to the
        holders thereof on May 1 and November 1, respectively, preceding such
        interest payment date.

        On December 19, 1996, pursuant to the SMIT Transaction, the Company
        issued $15,250,000 principal amount of its SMIT Convertible Notes. The
        SMIT Convertible Notes were issued under the 1996 Indenture discussed
        above. Also, pursuant to the SMIT Transaction, the Company entered into
        lease purchase agreements for two vessels.

        During 1997 and 1999, the Company purchased $1,000,000 and $5,150,000,
        respectively, principal amount of its Convertible Notes in the open
        market. The write-off of certain deferred financing costs associated
        with the Convertible Notes acquired and the difference between the
        amount paid to acquire the Convertible Notes and their carrying value
        resulted in the Company recognizing an extraordinary loss of $114,000 or
        $.01 per basic share in 1997. In 1999, the extraordinary loss with
        respect to the retirement of Convertible Notes was not material.

        DNB CREDIT FACILITY. On November 17, 1998, the Company entered into an
        agreement for a $100,000,000 unsecured reducing revolving credit
        facility with Den norske Bank ASA (the "DnB Credit Facility"), as agent
        for itself and other lenders named therein that replaced the prior
        revolving credit facility with Den norske Bank ASA ("DnB"). Until
        termination of the DnB Credit Facility, a commitment fee is payable on a
        quarterly basis, at rates ranging from 17.5 to 40 basis points per annum
        on the average unfunded portion of the DnB Credit Facility. The
        commitment fee rate varies based upon the percentage the Company's
        funded debt bears to earnings before interest, taxes, depreciation, and
        amortization ("EBITDA"), as defined, and/or the credit rating maintained
        by Moody's and Standard & Poor's, if any.

        Under the terms of the DnB Credit Facility, the Company may borrow up to
        $100,000,000 aggregate principal amount (the "Maximum Committed Amount")
        of unsecured reducing revolving credit loans maturing on November 17,
        2004. The Maximum Committed Amount will automatically decrease
        semi-annually by 4.54% beginning November 17, 1999, with the balance
        payable at maturity. Outstanding borrowings will bear interest at annual
        rates ranging from 45 to 110 basis points (the "Margin") above LIBOR.
        The Margin is determined quarterly and varies based upon the percentage
        the Company's funded debt bears to EBITDA, as defined, and/or the credit
        rating maintained by Moody's and Standard & Poor's, if any.

        The DnB Credit Facility requires the Company, on a consolidated basis,
        to maintain a minimum ratio of vessels' values to Maximum Committed
        Amount, as defined, a minimum cash and cash equivalent level, a
        specified interest coverage ratio, specified debt to capitalization
        ratios and a minimum net worth. The DnB Credit Facility limits the
        amount of secured indebtedness which the Company and its subsidiaries
        may incur, provides for a negative pledge with respect to certain


                                       59

        activities of the Company's vessel owning/operating subsidiaries, and
        restricts the payment of dividends. At December 31, 1999, the Company
        had $95,460,000 available for future borrowings under the DnB Credit
        Facility.

        An extraordinary loss of $325,000 or $0.02 per basic share was
        recognized in 1997 in connection with the termination of a prior
        revolving credit facility with DnB that resulted from the write-off of
        unamortized debt issue costs.

        7.2% NOTES. On September 15, 1997, the Company completed the sale of
        $150,000,000 aggregate principal amount of its 7.2% Senior Notes due
        2009 (the "7.2% Notes") which will mature on September 15, 2009. The
        offering was made to qualified institutional buyers and a limited number
        of institutional accredited investors and in offshore transactions
        exempt from registration under U.S. federal securities laws. Interest on
        the 7.2% Notes is payable semi-annually on March 15 and September 15 of
        each year commencing March 15, 1998. The 7.2% Notes may be redeemed at
        any time at the option of the Company, in whole or from time to time in
        part, at a price equal to 100% of the principal amount thereof plus
        accrued and unpaid interest, if any, to the date of redemption plus a
        Make-Whole Premium, if any, relating to the then prevailing Treasury
        Yield and the remaining life of the 7.2% Notes. On December 8, 1997, the
        Company completed an exchange offer through which it exchanged all of
        the 7.2% Notes for a series of 7.2% Senior Notes (the "7.2% Exchange
        Notes") which are identical in all material respects to the 7.2% Notes,
        except that the 7.2% Exchange Notes are registered under the Securities
        Act of 1933, as amended. The 7.2% Notes and the 7.2% Exchange Notes were
        issued under an indenture (the "1997 Indenture") between the Company and
        First Trust National Association, as trustee. The 1997 Indenture
        contains covenants including, among others, limitations on liens and
        sale and leasebacks of certain Principal Properties, as defined in the
        1997 Indenture, and certain restrictions on the Company consolidating
        with or merging into any other Person, as defined in the 1997 Indenture.
        The Company incurred $1,412,500 in costs associated with the sale of the
        7.2% Notes including $1,012,500 of underwriters discount. Debt issue
        costs are reported in Other Assets of the Consolidated Balance Sheet and
        are being amortized to expense over the life of the related
        indebtedness. During 1999, the Company purchased $2,500,000 principal
        amount of its 7.2% Notes in the open market.

        SMIT NOTES. Pursuant to a February 1998 letter agreement between the
        Company and SMIT, the Company agreed to prepay certain contingent
        obligations for additional purchase consideration that would otherwise
        have been payable to SMIT in 1999 pursuant to the SMIT Transaction. The
        prepayment included cash of $20,880,000 and the issuance, effective
        January 1, 1999, of five-year subordinated promissory notes in the
        aggregate principal amount of $23,200,000, which notes bear interest at
        5.467% per annum payable quarterly in arrears. The amounts prepaid to
        SMIT have increased the carrying values of vessels and certain joint
        venture interests that were acquired in the SMIT Transaction.





                                       60

        CHILES 10.0% NOTES. On April 29, 1998, the Company's majority owned
        subsidiary, Chiles Offshore, completed the sale of the Chiles 10.0%
        Notes. The offering was made to qualified institutional buyers and to
        certain persons in offshore transactions exempt from registration under
        U.S. federal securities laws. Pursuant to an exchange offer that was
        consummated on September 28, 1998, all holders of the Chiles 10% Notes
        exchanged such notes for new notes identical in form and terms, that
        were registered under the Securities Act of 1933, as amended. Interest
        on the Chiles 10.0% Notes is payable semi-annually on May 1 and November
        1 of each year commencing November 1, 1998. The Chiles 10.0% Notes are
        not redeemable at the option of Chiles Offshore prior to May 1, 2003,
        except that until May 1, 2001, Chiles Offshore may redeem, at its
        option, in the aggregate, up to 35% of the original principal amount of
        the Chiles 10.0% Notes, on a pro-rata basis, with the net proceeds of
        one or more Public Equity Offerings (as defined), at a redemption price
        of 110% plus accrued interest to the redemption date; provided, however,
        that at least $71,500,000 aggregate principal amount of the Chiles 10.0%
        Notes remains outstanding after each such redemption. On and after May
        1, 2003, the Chiles 10.0% Notes may be redeemed at the option of Chiles
        Offshore, in whole or in part, initially at 105.0% of the principal
        amount thereof and declining by 1.67% each year thereafter to 100.0% of
        the principal amount on and after May 1, 2006, plus accrued interest to
        the date of redemption. The proceeds from the issuance of the Chiles
        10.0% Notes were placed in escrow to be used to (a) partially fund the
        construction of Rigs, (b) pay interest on the Chiles 10.0% Notes through
        the first two semi-annual interest payment dates, and (c) provide
        working capital. All obligations with respect to the Chiles 10.0% Notes
        are limited exclusively to Chiles Offshore and are nonrecourse to
        SEACOR. Chiles Offshore incurred $4,238,000 in costs associated with the
        sale of the Chiles 10.0% Notes that have been reported as Other Assets
        in the Condensed Balance Sheets and are being amortized to expense over
        the life of the related indebtedness. In October 1999, Chiles Offshore
        entered into amendments to the Indenture governing the Chiles 10.0%
        Notes (the "Amendments") which were approved by the holders of a
        majority of the Chiles 10.0% Notes and that had the effect of removing
        certain covenants contained in such Indenture. In consideration for such
        approval, consenting noteholders received $1.00 for each $1,000 in
        aggregate principal amount of Chiles 10.0% Notes held by them. In
        January 2000, Chiles filed a notice with the Securities and
        Exchange Commission terminating, retroactively effective to December 31,
        1999, its reporting obligations pursuant to the Securities Exchange Act
        of 1934, as amended.

        SEACOR and a wholly owned subsidiary of SEACOR purchased $17,130,000 and
        $43,235,000 principal amount of the Chiles 10.0% Notes in the open
        market in 1998 and 1999, respectively. The write-off of certain deferred
        financing costs associated with the Chiles 10.0% Notes acquired and the
        difference between the amount paid to acquire the Chiles 10.0% Notes and
        their carrying value resulted in the recognition of an extraordinary
        gain of $1,309,000 or $0.10 per basic share and $1,211,000 or $0.10 per
        basic share in 1998 and 1999, respectively. During 1999, SEACOR and its
        wholly owned subsidiary that owned Chiles 10.0% Notes sold $18,630,000
        principal amount of such notes to a financial institution, subject to
        swap agreements, see Note 2, Financial Instruments.

        CHILES BANK FACILITY. Also on April 29, 1998, Chiles Offshore entered
        into a bank credit agreement that provided for a $25,000,000 revolving
        credit facility (the "Chiles Bank Facility") maturing December 31, 2004.
        The Chiles Bank Facility was arranged by Nederlandse Scheepshypotheek
        Bank N.V. and MeesPierson Capital Corporation. In December 1999, the
        Chiles Bank Facility was amended and available borrowings rose from
        $25,000,000 to $40,000,000 (the "Amended Chiles Bank Facility"). The
        Amended Chiles Bank Facility provides for a floating interest rate of
        LIBOR plus 1 3/8% per annum (approximately 7.3% at December 31, 1999) on
        amounts outstanding under the Amended Chiles Bank Facility and provides
        for repayment of such amounts in eight quarterly installments of
        $1,875,000 beginning March 31, 2003, followed by eight quarterly
        installments of $3,125,000, with the remaining balance payable on
        December 31, 2006. As a condition precedent to the increase in the
        Amended Chiles Bank Facility, Chiles Offshore was required to reduce the
        outstanding principal amount of the Chiles 10.0% Notes by $15,000,000 to
        $95,000,000.

        During November 1999, Chiles Offshore completed an offering of
        membership interests and rights to purchase membership interests (the
        "Offering") which provided all current members with a pro rata right to
        purchase such securities in an aggregate amount of $15,000,000. A wholly
        owned subsidiary of SEACOR acquired $10,646,000 or approximately 71% of
        the Offering. Proceeds from the Offering were used by Chiles Offshore to
        purchase, at par, $15,000,000 aggregate principal amount of the Chiles
        10.0% Notes from SEACOR, which was previously acquired in the open
        market. At December 31, 1999, a wholly owned subsidiary of SEACOR owned
        a 58.3% membership interest in Chiles Offshore, which was acquired for
        $45,646,000, and SEACOR owned $26,735,000 principal amount of the Chiles
        10.0% Notes.

        Chiles Columbus LLC and Chiles Magellan LLC (the "Rig Owners"), wholly
        owned subsidiaries of Chiles Offshore and owners of the Rigs the Chiles
        Columbus and Chiles Magellan, respectively, guarantee the Amended Chiles
        Bank Facility and such guarantees are secured by first priority
        mortgages on the Rigs, assignment of earnings of the Rigs (which may
        continue to be collected by Chiles Offshore unless there occurs an event
        of default), and assignments of insurance proceeds. The Amended Chiles
        Bank Facility contains customary affirmative covenants, representations,


                                       61

        and warranties and is cross-defaulted to the related promissory notes;
        provided, however, should there occur an event of default under the
        Amended Chiles Bank Facility (other than arising from enforcement
        actions undertaken by a holder of other indebtedness of Chiles Offshore,
        enforcement actions arising from in rem claims against either of the
        Rigs or bankruptcy events with respect to Chiles Offshore or a Rig
        Owner), the lenders under the Amended Chiles Bank Facility have agreed
        on a one-time basis not to enforce remedies for a period of 60 days
        during which the holders of the Chiles 10.0% Notes ("Noteholders") or
        Chiles Offshore may cure such event of default or prepay all of the
        indebtedness outstanding under the Amended Chiles Bank Facility. The
        Amended Chiles Bank Facility also contains certain negative covenants
        applicable to Chiles Offshore and the Guarantors, including prohibitions
        against the following: certain liens on the collateral under the Amended
        Chiles Bank Facility; material changes in the nature of their business;
        sale or pledge of any Guarantor's membership interests; sale or
        disposition of any Rig or other substantial assets; certain changes in
        office locations; consolidations or mergers; certain Restricted Payments
        (as defined in the Chiles Bank Facility), including distributions on
        membership interests in Chiles Offshore (the "Membership Interests");
        the exercise of a right to call the Chiles 10.0% Notes; or any material
        amendment or modification of the Indenture. The Amended Chiles Bank
        Facility further requires Chiles Offshore to prevent the Guarantors from
        making certain loans and advances, except in their normal course of
        business or to certain affiliates; assuming, guaranteeing or (except in
        their ordinary course of business) otherwise becoming liable in
        connection with any obligations other than guaranties for the benefit of
        the lenders under the Amended Chiles Bank Facility, guarantees in favor
        of the Noteholders or pre-existing guarantees; paying out any funds,
        except in their ordinary course of business for the business of Chiles
        Offshore or service of certain indebtedness permitted under the Amended
        Chiles Bank Facility; and issuing or disposing of any of their own
        membership interests (except to Chiles Offshore). In addition, the
        Amended Chiles Bank Facility requires that the fair market value of the
        Rigs, as determined by appraisers appointed by the lenders thereunder,
        at all times equals or exceeds an amount equal to 200% of outstanding
        indebtedness under the Amended Chiles Bank Facility. At December 31,
        1999, Chiles Offshore had $18,000,000 available under the Amended Chiles
        Bank Facility for future borrowings.

        The Chiles Bank Facility contains customary affirmative covenants,
        representations, and warranties and is cross-defaulted to the related
        promissory notes; provided, however, should there occur an event of
        default under the Chiles Bank Facility (other than arising from
        enforcement actions undertaken by a holder of other indebtedness of
        Chiles Offshore, enforcement actions arising from in rem claims against
        either of the Rigs or bankruptcy events with respect to Chiles Offshore
        or a Rig Owner), the lenders under the Chiles Bank Facility have agreed
        on a one-time basis not to enforce remedies for a period of 60 days
        during which the Noteholders or the Company may cure such event of
        default or prepay all of the indebtedness outstanding under the Chiles
        Bank Facility. In addition, the Chiles Bank Facility requires that the
        fair market value of the Rigs, as determined by appraisers appointed by
        the lenders thereunder, at all times equals or exceeds an amount equal
        to 130% of outstanding indebtedness under the Chiles Bank Facility.

        9. COMMON STOCK:

        During 1998, SEACOR's Board of Directors increased its previously
        announced securities repurchase authority by $65,000,000 and expanded
        its previously announced securities repurchase authority to include, in
        addition to its common stock and 5 3/8% Notes, its 7.2% Notes and the
        Chiles 10% Notes (collectively, the "SEACOR Securities"). Shares
        totaling 1,305,100 at an aggregate cost of $60,291,000 were repurchased
        for treasury during the year. 712,000 of these shares, previously issued
        as part of the Company's purchase consideration in the SMIT Transaction,
        were repurchased from a subsidiary of SMIT. All other repurchases of
        SEACOR's common stock during 1998 were made in the open market.

        During 1999, SEACOR's Board of Directors increased its securities
        repurchase authority by $105,000,000. Shares totaling 1,462,000 at an
        aggregate cost of $65,520,000 were repurchased for treasury during the
        year. As of December 31, 1999, the Company had approximately $26,669,000
        available for the repurchase of SEACOR Securities. The repurchase of any
        SEACOR Securities will be effected from time to time through open market
        purchases, privately negotiated transactions, or otherwise, depending on
        market conditions.

        10. BENEFIT PLANS:

        SEACOR SAVINGS PLAN. SEACOR, through a wholly owned subsidiary,
        introduced a defined contribution plan (the "SEACOR Plan"), effective
        July 1, 1994. Furthermore, in connection with a merger and acquisition,
        the Company assumed the obligations of certain other defined
        contribution plans. Effective January 1, 1998, the Company merged the
        defined contribution plans previously assumed into the SEACOR Plan.
        Requirements for eligibility in the SEACOR Plan include (i) one year of
        full time employment, (ii) attainment of 21 years of age, and (iii)
        residency in the United States. Participants may contribute up to 15% of
        their pre-tax annual compensation, and contributions are funded monthly.
        Participants are fully vested in the Company's contribution upon (i)
        attaining the age of 65, (ii) death, (iii) becoming disabled, or (iv)
        completing five years of employment service. Contribution forfeitures
        for non-vested terminated employees are used to reduce future


                                       62

        contributions of the Company or pay administrative expenses. The
        Company's contribution is limited to 50% of the employee's first 6% of
        wages invested in the SEACOR Plan and is subject to annual review by the
        Board of Directors. The Company's contributions to plans were $948,000,
        $845,000, and $614,000 for the years ended December 31, 1999, 1998, and
        1997, respectively.

        STOCK PLANS. On November 22, 1992, and April 18, 1996, SEACOR's
        stockholders adopted the 1992 Non-Qualified Stock Option Plan (the
        "Stock Option Plan") and the 1996 Share Incentive Plan (the "Share
        Incentive Plan"), respectively, (collectively, the "Plans"). The Plans
        provide for the grant of options to purchase shares of SEACOR's common
        stock, and the Share Incentive Plan additionally provides for the grant
        of stock appreciation rights, restricted stock awards, performance
        awards, and stock units to key officers and employees of the Company.
        The exercise price per share of options granted cannot be less than 75%
        and 90% of the fair market value of SEACOR's common stock at the date of
        grant under the Stock Option Plan and Share Incentive Plan,
        respectively. Options granted under the Plans expire no later than the
        tenth anniversary of the date of grant. The Plans are administered by
        the Stock Option and Executive Compensation Committee of the Board of
        Directors (the "Compensation Committee"). Five hundred thousand shares
        of SEACOR's common stock have been reserved for issuance under each of
        the Stock Option Plan and the Share Incentive Plan.

        STOCK OPTIONS. In October 1995, Statement of Financial Accounting
        Standards No. 123 ("SFAS 123"), "Accounting for Stock Based
        Compensation," was issued effective in 1996 for the Company. Under SFAS
        123, companies could either adopt a "fair valued based method" of
        accounting for an employee stock option, as defined, or continue to use
        accounting methods as prescribed by APB Opinion No. 25. The Company has
        elected to continue accounting for its plan under APB Opinion No 25. Had
        compensation costs for the plan been determined consistent with SFAS
        123, the Company's net income and earnings per share would have been
        reduced to the following pro forma amounts for the years ended December
        31, 1999, 1998, and 1997, in thousands of dollars, except per share
        data.



                                                 1999                            1998                             1997
                                    ------------------------------- -------------------------------  -------------------------------
                                     As Reported      Pro forma      As Reported       Pro forma      As Reported      Pro forma
                                    --------------- --------------- ---------------  --------------  --------------- ---------------
                                                                                                   
Net Income........................$      30,936   $      30,439   $     125,927    $     125,746  $      119,154   $     119,051

Earnings per common share:
   Basic..........................$        2.60   $        2.56   $        9.59    $        9.57  $         8.61   $        8.60
   Diluted........................         2.54            2.50            8.25             8.24            7.47            7.47



        The effects of applying SFAS 123 in this pro forma disclosure are not
        indicative of future events, and additional awards in the future are
        anticipated.

        SHARE AWARD TRANSACTIONS. The following transactions have occurred in
        the Plans during the periods ended December 31:



                                                     1999                           1998                           1997
                                         -----------------------------  ----------------------------   ----------------------------
                                           Number of      Wt'ed Avg.     Number of      Wt'ed Avg.      Number of      Wt'ed Avg.
                                            Shares       Exer. Price       Shares      Exer. Price        Shares      Exer. Price
                                         -------------  --------------  ------------  --------------   ------------  --------------
                                                                                                    
Stock Option Activities -
    Outstanding, at beginning of year..      295,814  $        19.64        325,112 $        17.04         346,112 $        16.92
       Granted.........................       69,850  $        44.95         20,652 $        51.74               - $            -
       Exercised.......................            -  $            -        (48,750)$        15.54         (21,000)$        15.05
       Canceled........................       (1,750) $        26.57         (1,200)$        34.46               - $            -
                                         -------------                  ------------                   ------------
    Outstanding, at end of year........      363,914  $        24.47        295,814 $        19.64         325,112 $        17.04
                                         =============                  ============                   ============
    Options exercisable at year end....      280,935  $        18.08        275,362 $        17.26         317,812 $        16.72
                                         =============
                                                                        ============                   ============
    Weighted average fair value of
       options granted.................$       27.86                  $       33.58                  $           -
                                         =============                  ============                   ============

Restricted stock awards granted........       37,000  $        44.68         25,290 $        52.16          18,510 $        61.92
                                         =============                  ============                   ============

Shares available for future grant......      375,963                        480,913                        525,589
                                         =============                  ============                   ============


        The fair value of each option granted during the periods presented is
        estimated on the date of grant using the Black-Scholes option-pricing
        model with the following assumptions: (a) no dividend yield, (b)
        weighted average expected volatility of 44.07% and 44.06% in the years
        1999 and 1998, respectively, (c) discount rates of 5.01% and 5.21% in
        the years 1999 and 1998, respectively, and (d) expected lives of five
        years.

        On date of issue, the market value of restricted shares issued to
        certain officers and key employees of the Company is recorded in
        Stockholders' Equity as Unamortized Restricted Stock and then amortized
        to expense over one and three year vesting periods. During 1999, 1998,
        and 1997, compensation cost recognized in connection with restricted
        stock awards totaled $1,508,000, $1,333,000, and $439,000, respectively.
        At December 31, 1999, there were 52,017 shares of unvested restricted
        stock outstanding at a weighted average price of $47.79. Of the unvested
        shares outstanding, 30,733, 12,934, and 8,350 shares will vest in 2000,
        2001, and 2002, respectively. On February 3, 2000, the Compensation
        Committee granted 20,585 restricted shares to certain officers and key
        employees of the Company with aggregate market value of $961,000 on that
        date.


                                       63

        The following table summarizes certain information about the options
        outstanding at December 31, 1999 grouped into three exercise price
        ranges:



                                                                                      Exercise Price Range
                                                                 ------------------------------------------------------------
                                                                   $9.64 - $14.75      $18.75 - $21.25     $30.75 - $53.00
                                                                 -------------------  ------------------- -------------------
                                                                                                 
Options outstanding at December 31, 1999......................          124,166              146,246              93,502
Weighted-average exercise price...............................   $        14.11       $        19.52      $        45.95

Weighted-average remaining contractual life (years)...........              3.6                  4.2                 8.3
Options exercisable at December 31, 1999......................          124,166              146,246              10,523
Weighted average exercise price of exercisable options........   $        14.11       $        19.52      $        44.77



        11. RELATED PARTY TRANSACTIONS:

        NRC contracts with James Miller Marine Services ("JMMS"), an
        environmental contractor based in Staten Island, New York, for spill
        response services. In fiscal 1999, 1998, and 1997, NRC paid
        approximately $362,000, $398,000, and $612,000, respectively, to JMMS
        for these services. The brother of a NRC director is Vice President of
        JMMS.

        Globe Wireless provides the Company's offshore marine service segment a
        "ship-to-shore" communication network and has provisioned and installed
        certain computer hardware, software, and electronic equipment aboard its
        offshore marine vessels. In fiscal 1999, 1998, and 1997, approximately
        $1,421,000, $743,000, and $40,000, respectively, was paid to Globe
        Wireless for services and merchandise provided the Company.

        A fee is paid to a minority stockholder for managing the Company's North
        Sea standby safety vessels. The U.S. dollar equivalent of such fees paid
        in pounds sterling approximated $1,058,000, $1,087,000, and $1,015,000
        in the years ended December 31, 1999, 1998, and 1997, respectively.

        12. COMMITMENTS AND CONTINGENCIES:

        As of December 31, 1999, the Company has commitments to build three
        offshore support vessels at an approximate aggregate cost of $30,250,000
        of which $20,950,000 has been expended. These vessels are expected to
        enter service in 2000. Joint venture corporations, in which the Company
        owns a 50% equity interest, are committed to the construction of two
        Handymax Dry-Bulk ships that are expected to enter service in 2001. The
        cost to construct and place these ships into service will approximate
        $39,000,000, of which 75% is expected to be financed from external
        sources.

        In the normal course of its business, the Company becomes involved in
        various litigation matters including, among other things, claims by
        third parties for alleged property damages, personal injuries, and other
        matters. While the Company believes it has meritorious defenses against
        these claims, management has used estimates in determining the Company's
        potential exposure and has recorded reserves in its financial statements
        related thereto where appropriate. It is possible that a change in the
        Company's estimates of that exposure could occur, but the Company does
        not expect such changes in estimated costs will have a material effect
        on the Company's financial position or results of operations.

        During 1998 and 1995, the Company entered into sale-type leases for two
        crew and one anchor handling towing supply vessels, respectively. The
        anchor handling towing supply vessel was sold in 1998 to a third party
        and bareboat chartered to SEAMEX. The remaining leases expire in 2001
        and contain options that permit the lessee to purchase the vessels at
        various dates during the term of the leases. The amortization of
        unearned income in the years ended December 31, 1999, 1998, and 1997,
        totaled $548,000, $403,000, and $448,000, respectively. The net
        investment in sale-type leases at December 31, 1999 was comprised of
        minimum lease payment receivables totaling $1,605,000, estimated
        residual values of $1,933,000, and unearned income of $906,000. As of
        December 31, 1999, $321,000 and $2,311,000 of the net investment in the
        sale-type leases were reported in the Consolidated Balance Sheets as
        current and noncurrent Other Assets, respectively.

        In December 1996, pursuant to the SMIT Transaction, the Company leased
        two vessels under capital leases with gross costs of $21,239,000 that
        are being depreciated over an estimated useful life of 23 years. At
        December 31, 1999 and 1998, accumulated depreciation related to these
        vessels totaled $2,754,000 and $1,781,000, respectively. At December 31,
        1999, $1,675,000 and $17,580,000 in obligations under these capital
        leases are reported as current and long-term debt, respectively. Minimum
        lease payments of $2,669,000 and $18,482,000 are due in 2000 and 2001,
        respectively. The amount to be paid in 2001 will include cash and the
        issuance of $6,750,000 in SMIT Convertible Notes. Future minimum lease
        payments include interest of $1,896,000.

        During 1999, 1998, and 1997, the Company completed transactions for the
        sale and leaseback of 5, 11, and 8 vessels, respectively, and the leases
        have been classified as operating leases in accordance with SFAS No. 13
        "Accounting for Leases." The leases contain purchase and lease renewal
        options at fair market value or rights of first refusal with respect to
        the sale or lease of the vessels and range in duration from two to five
        years. Gains realized from those sales, totaling $6,566,000, $38,442,000


                                       64

        and $26,986,000 in 1999, 1998, and 1997, respectively, have been
        deferred and are being credited to income as reductions in rental
        expense over the lease terms. Rental expense in 1999, 1998 and 1997
        totaled $3,525,000, $2,142,000, and $504,000, respectively. Future
        minimum lease payments are $18,599,000 in 2000, $4,912,000 in 2001,
        $1,967,000 in 2002, $1,312,000 in 2003, and $471,000 in 2004.

        13. MAJOR CUSTOMERS AND SEGMENT DATA:

        The Company adopted Statement of Financial Accounting Standards No. 131
        ("SFAS 131"), "Disclosures about Segments of an Enterprise and Related
        Information," during the fourth quarter of 1998. SFAS 131 established
        standards for the way that public business enterprises report
        information about operating segments in annual financial statements and
        requires that those enterprises report selected information about
        operating segments in interim financial reports issued to shareholders.
        It also established standards for related disclosures about products and
        services, geographic areas, and major customers. SFAS 131 defined
        operating segments as components of an enterprise about which separate
        financial information is available that is evaluated regularly by the
        chief operating decision maker in deciding how to allocate resources and
        in assessing performance. The Company has aggregated its business
        activities into three operating segments: marine, environmental, and
        drilling. These operating segments represent strategic business units
        that offer different services.

        The marine service segment charters support vessels to owners and
        operators of offshore drilling rigs and production platforms both
        domestically and internationally. Two of the largest groups of offshore
        support vessels operated by the Company are crew boats, which transport
        personnel and small loads of cargo when expedited deliveries are
        required, and utility boats, which support offshore production
        activities by delivering general cargo and facilitating infield
        transportation of personnel and materials. Two other significant classes
        of vessels operated by the Company are towing supply and anchor handling
        towing supply vessels. These vessels have powerful engines and deck
        mounted winches, and are capable of towing and positioning offshore
        drilling rigs as well as providing supply vessel services. The Company
        also operates supply vessels, which transport drill pipe, drilling
        fluids, and construction materials, and special service vessels, which
        include standby safety, well stimulation, seismic data gathering, line
        handling, freight, oil spill response, and salvage vessels. In
        connection with its offshore marine services, the Company offers
        logistics services, which include shorebase, marine transport, and other
        supply chain management services in support of offshore exploration and
        production operations.

        The environmental service segment provides contractual oil spill
        response and other related training and consulting services. The
        Company's clients include tank vessel owner/operators, refiners and
        terminal operators, exploration and production facility operators, and
        pipeline operators. The Company charges a retainer fee to its customers
        for ensuring by contract the availability (at predetermined rates) of
        its response services and equipment. Retainer services include employing
        a staff to supervise response to an oil spill emergency and maintaining
        specialized equipment, including marine equipment, in a ready state for
        emergency and spill response as contemplated by response plans filed by
        the Company's customers in accordance with Oil Pollution Act of 1990 and
        various state regulations. The Company maintains relationships with
        numerous environmental sub-contractors to assist with response
        operations, equipment maintenance, and provide trained personnel for
        deploying equipment in a spill response. When oil spills occur, the
        Company mobilizes specialized oil spill response equipment, using either
        its own personnel or personnel under contract, to provide emergency
        response services for both land and marine oil spills.

        The Company's drilling service business is conducted through Chiles
        Offshore, a 58.3% majority owned subsidiary. From inception and until
        July 1999, Chiles operated as a development stage company, devoting
        substantially all its efforts constructing two mobile offshore drilling
        rigs, raising capital, and securing contracts for the Rigs. In 1997,
        Chiles commenced construction of two premium jackup mobile offshore
        drilling rigs, the Chiles Columbus and the Chiles Magellan, which were
        delivered to Chiles in May 1999 and October 1999, respectively. Jackup
        rigs are mobile self-elevating drilling platforms equipped with legs
        that are lowered to the ocean floor until a foundation is established to
        support drilling operations. Oil and gas exploration companies use
        jackup rigs extensively for offshore drilling in water depths from 20
        feet to 350 feet.


                                       65

        The Company evaluates the performance of each operating segment based
        upon the operating profit of the segment and including gains or losses
        from the sale of equipment and interest in 50% or less owned companies
        and equity in the net income of 50% or less owned companies but
        excluding minority interest in income or loss of subsidiaries, interest
        income and expense, net gains or losses from the sale of marketable
        securities and commodity swap transactions, corporate expenses, and
        income taxes. Operating profit is defined as Operating Income as
        reported in the Consolidated Statements of Income net of corporate
        expenses and certain other income and expense items. The accounting
        policies of the operating segments are the same as those described in
        the summary of significant accounting policies except that the
        disaggregation of financial results has been prepared using a management
        approach. Segment assets exclude those considered by the Company to be
        of a corporate nature. Corporate assets include SEACOR and its wholly
        owned subsidiaries' unrestricted cash, marketable securities, certain
        other assets, and property and equipment related to corporate
        operations. Information disclosed in the tables presented below may
        differ from separate financial statements presented by subsidiaries of
        the Company due to certain elimination entries required in
        consolidation.

        Revenues attributed to geographic areas were based upon the country of
        domicile for marine service segment customers and the country in which
        the Company provided oil spill protection or other related training and
        consulting services for environmental service segment customers.
        Revenues from services rendered to divisions or subsidiaries of one
        customer totaled $26,139,000 in 1999, $40,717,000 in 1998 and
        $41,852,000 in 1997 (9% of revenues in 1999, 11% of revenues in 1998,
        and 12% of revenues in 1997). Information about profit and loss and
        assets by business segment is as follows for the years ended December
        31, in thousands of dollars:



                                                                                                  Corporate
                                                    Marine      Environmental     Drilling      and Other        Total
                                                 ------------  --------------  -------------  -------------  ------------
                                                                                               
1999
Operating Revenues -
  External Customers.............................$   258,177   $       22,659   $      7,651  $         938(a)$   289,425
  Intersegment...................................        528              161              -           (689)            -
                                                 ------------  --------------  -------------  -------------  ------------
   Total.........................................$   258,705   $       22,820   $      7,651  $         249  $    289,425
                                                 ============  ==============  =============  =============  ============
Operating Profit (Loss)..........................$    46,158   $        4,801   $       (585) $         144  $     50,518
Gains from Equipment Sales or Retirements, net...      1,661               16              -              -         1,677
Loss from Sale of Interest in a 50% or Less
Owned Company....................................        (72)               -              -              -           (72)
Equity in Net Earnings (Losses) of 50% or
  Less Owned Companies...........................      4,906              814              -         (3,107)        2,613
Minority Interest in Loss of Subsidiaries........          -                -              -          1,148         1,148
Interest Income..................................          -                -              -         20,495        20,495
Interest Expense.................................          -                -              -        (22,330)      (22,330)
Losses from Commodity Swap Transactions, net.....          -                -              -         (1,323)       (1,323)
Losses from Sale of Marketable Securities, net...          -                -              -           (279)         (279)
Corporate Expenses...............................          -                -              -         (5,169)       (5,169)
Income Taxes.....................................          -                -              -        (17,533)      (17,533)
                                                 ------------  --------------  -------------  -------------  ------------
    Income (Loss) before Extraordinary Item......$    52,653   $        5,631   $       (585) $     (27,954) $     29,745
                                                 ============  ==============  =============  =============  ============
Investments, at Equity, and Receivables from 50%
  or Less Owned Companies........................$    41,989   $        1,288   $          -  $      33,999  $     77,276
Other Segment Assets.............................    621,197           27,650        199,294              -       848,141
                                                 ------------  --------------  -------------  -------------  ------------
  Subtotal Segment Assets........................    663,186           28,938        199,294         33,999       925,417
Corporate........................................          -                -              -        271,574       271,574
                                                 ------------  --------------  -------------  -------------  ------------
    Total Assets.................................$   663,186   $       28,938   $    199,294  $     305,573  $  1,196,991
                                                 ============  ==============  =============  =============  ============
Depreciation and Amortization....................$    34,936   $        3,815   $      2,478  $          53  $     41,282

=========================================================================================================================

1998
Operating Revenues -
  External Customers.............................$   359,611   $       26,180   $          -  $           -  $    385,791
  Intersegment...................................          -                -              -              -             -
                                                 ------------  --------------  -------------  -------------  ------------
   Total.........................................$   359,611   $       26,180   $          -  $           -  $    385,791
                                                 ============  ==============  =============  =============  ============
Operating Profit (Loss)..........................$   127,403   $        4,479   $       (823) $           -  $    131,059
Gains from Equipment Sales or Retirements, net...     38,227              111              -              -        38,338
Gain from Sale of Interest in a 50% or Less
Owned Company....................................      1,197                -              -              -         1,197
Equity in Net Earnings of 50% or Less Owned
Companies........................................     13,657              554              -              -        14,211
Minority Interest in Income of Subsidiaries......          -                -              -         (1,612)       (1,612)
Interest Income..................................          -                -              -         25,346        25,346
Interest Expense.................................          -                -              -        (22,798)      (22,798)
Gains from Commodity Swap Transactions, net......          -                -              -          3,273         3,273
Gains from Sale of Marketable Securities, net....          -                -              -          1,827         1,827
Corporate Expenses...............................          -                -              -         (5,344)       (5,344)
Income Taxes.....................................          -                -              -        (60,879)      (60,879)
                                                 ------------  --------------  -------------  -------------  ------------
    Income (Loss) before Extraordinary Item......$   180,484   $        5,144  $        (823) $     (60,187) $    124,618
                                                 ============  ==============  =============  =============  ============
Investments, at Equity, and Receivables from 50%
  or Less Owned Companies........................$    54,954   $          524  $           -  $           -  $     55,478
Other Segment Assets.............................    770,614           29,103        177,832              -       977,549
                                                 ------------  --------------  -------------  -------------  ------------
  Subtotal Segment Assets........................    825,568           29,627        177,832              -     1,033,027
Corporate........................................          -                -              -        224,948       224,948
                                                 ------------  --------------  -------------  -------------  ------------
    Total Assets.................................$    825,568  $       29,627  $     177,832  $     224,948  $  1,257,975
                                                 ============  ==============  =============  =============  ============
Depreciation and Amortization....................$     32,534  $        3,846  $          56  $          13  $     36,449

=========================================================================================================================


                                       66



                                                                                               Corporate
                                                    Marine       Environmental    Drilling      and Other        Total
                                                 ------------   -------------  -------------  -------------  -------------
                                                                                               
 1997
 Operating Revenues -
   External Customers............................$    325,009   $      21,939  $           -  $           -  $     346,948
   Intersegment..................................           -               -              -              -              -
                                                 ------------   -------------  -------------  -------------  -------------
    Total........................................     325,009   $      21,939  $           -  $           -  $     346,948
                                                 ============   =============  =============  =============  =============

 Operating Profit                                $    115,818   $       3,029  $       (382)  $           -  $     118,465
 (Loss).............................
 Gains (Losses) from Equipment Sales or                62,027             (99)             -              -         61,928
 Retirements, net................................
 Equity in Net Earnings of 50% or Less Owned            5,656             771              -              -          6,427
 Companies.......................................
 Minority Interest in Income of Subsidiaries.....           -               -              -           (301)          (301)
 Interest Income.................................           -               -              -         12,756         12,756
 Interest Expense................................           -               -              -        (14,168)       (14,168)
 Corporate Expenses..............................           -               -              -         (3,278)        (3,278)
 Income Taxes....................................           -               -              -        (62,236)       (62,236)
                                                 ------------   -------------  -------------  -------------  -------------
     Income (Loss) before Extraordinary Item.....$    183,501   $       3,701  $        (382) $     (67,227) $     119,593
                                                 ============   =============  =============  =============  =============
 Investments, at Equity, and Receivables from 50%
   or Less Owned Companies.......................$     37,151   $       1,219  $           -  $           -  $      38,370
 or Less Owned Companies.........................
 Other Segment Assets............................     702,449          32,861         67,398              -        802,708
                                                 ------------   -------------  -------------  -------------  -------------
   Subtotal Segment Assets.......................     739,600          34,080         67,398              -        841,078
 Corporate.......................................           -               -              -        178,723        178,723
                                                 ------------   -------------  -------------  -------------  -------------
     Total Assets................................$    739,600   $      34,080  $      67,398  $     178,723  $   1,019,801
                                                 ============   =============  =============  =============  =============

 Depreciation and Amortization...................$     32,914   $       3,563  $           6  $          55  $      36,538

==========================================================================================================================


(a)     Includes the operating revenues of the Company's telecommunications
        business, Marinet, which was acquired in April 1999 and sold effective
        July 1, 1999.


        The Company considers long-lived assets to be property and equipment
        that has been distributed to geographical areas based upon the assets'
        physical location during the applicable period. Certain of the Company's
        offshore marine service segment's long-lived vessel assets relocate
        between its geographical areas of operation. The costs of long-lived
        vessel assets that are relocated have been allocated between
        geographical areas of operation based upon length of service in the
        applicable region. Information concerning principal geographic areas was
        as follows for the years ending December 31, in thousands of dollars:



                                         United                           United           Other
                                         States          Nigeria         Kingdom          Foreign          Total
                                      -------------    -------------   -------------   --------------   -------------
                                                                                         
1999:
Revenue........................... $       186,673  $        19,324 $        24,643 $        58,785  $       289,425
Long-Lived Assets.................         550,106           40,486          33,083          91,522          715,197
1998:
Revenue...........................         234,651           30,655          28,524          91,961          385,791
Long-Lived Assets.................         406,945           47,257          31,416         139,243          624,861
1997:
Revenue...........................         216,513           25,318          39,099          66,018          346,948
Long-Lived Assets.................         262,309           42,888          42,213         135,524          482,934



        14. SUBSEQUENT EVENTS:

        Subsequent to December 31, 1999, SEACOR reported that its Board of
        Directors had increased its previously announced securities repurchase
        program by $15,000,000. With this increase, the Company has
        approximately $37,400,000 available for such purposes. The securities
        covered by the repurchase program continue to include the Company's
        common stock, its 5 3/8% Notes, its 7.2% Notes, and the Chiles 10.0%
        Notes. Subsequent to December 31, 1999, the Company has purchased
        approximately $4,000,000 of its securities, primarily its common stock
        and as of March 24, 2000 has approximately 11,206,000 common shares
        outstanding. The repurchase of securities will be conducted from time to
        time through open market purchases, privately negotiated transactions,
        or otherwise depending on market conditions.

        On February 9, 2000, the Company announced that it signed a letter of
        intent to acquire all of the issued share capital of Boston Putford.
        Boston Putford's standby safety vessels, certain joint venture interests
        and vessels, and fixed assets will be acquired for aggregate
        consideration of approximately (pound)19,000,000. Boston Putford will
        also receive aggregate consideration of approximately (pound)5,000,000
        for working capital in the companies at closing. The purchase
        consideration will consist of (pound)15,000,000 in cash, approximately
        84,000 shares of SEACOR's common stock, approximately (pound)9,100,000
        in five year zero coupon notes having a current value of
        (pound)6,200,000, and the assumption of certain liabilities. The final
        purchase price is subject to certain closing adjustments. Boston
        Putford's standby safety fleet, including vessels held in joint ventures
        but excluding vessels managed for third parties, consists of 18 vessels
        operating primarily in the southern U.K. sector of the North Sea.
        Consummation of the transaction is also subject to satisfactory
        completion of due diligence, execution of definitive documentation, and
        receipt of all necessary regulatory approvals and compliance with
        appropriate procedures in the United States and the United Kingdom. The
        Company expects to consolidate its standby safety services in the U.K.
        sector of the North Sea into the Boston Putford operations following
        completion of its acquisition of Boston Putford.


                                       67

        15. SUPPLEMENTAL INFORMATION FOR STATEMENTS OF CASH FLOWS:



                                                                                             1999           1998            1997
                                                                                          ----------     -----------     ----------
                                                                                                  (in thousands of dollars)
                                                                                                                
Cash income taxes paid.................................................................. $     5,048   $      47,345   $     29,160
Cash interest paid......................................................................      35,875          22,514         12,022
Schedule of Non-Cash Investing and Financing Activities:
    Property exchanged for investment in and notes receivable from 50% or less owned               -               -          2,240
company.................................................................................
    Sale of a subsidiary to Globe Wireless for a note receivable........................       5,279              -               -
    Conversion of loans into convertible preferred units of Globe Wireless..............      22,000              -               -
    Investment in 50% or less owned companies with long-term debt, including debt                  -            738               -
discount...............................................................................
    Acquisition of ERST/O'Brien's Inc. with SEACOR's common stock.......................       1,482             442          3,614
    Purchase of vessels with              - SEACOR's common stock.......................           -               -          4,342
                                          - notes, including debt discount..............           -         22,462               -



        16. QUARTERLY FINANCIAL INFORMATION (UNAUDITED):

        Selected financial information for interim periods are presented below
        in thousands of dollars, except share data. Earnings per share are
        computed independently for each of the quarters presented; therefore,
        the sum of the quarterly earnings per share do not necessarily equal the
        total for the year.



                                                                                 Quarter Ended
                                                  ---------------------------------------------------------------------------
                                                     Dec. 31,           Sept. 30,            June 30,            March 31,
                                                  --------------      --------------      --------------      ---------------
                                                                                               
1999:
Revenue..................................... $          71,335   $          71,894   $          68,475   $          77,721
Gross profit(1).............................            18,129              19,031              17,496              26,701
Income before extraordinary item............             6,140               4,109               6,217              13,279
Basic earnings per common share -
    Income before extraordinary item........              0.55                0.34                0.51                1.08
    Extraordinary item......................                 -               0.08                    -                0.02
                                                  --------------      --------------      --------------      ---------------
    Net Income.............................. $            0.55   $            0.42   $            0.51   $            1.10
                                                  ==============      ==============      ==============      ===============
Diluted earnings common per share -
    Income before extraordinary item........ $            0.55   $            0.34   $            0.51   $            0.97
    Extraordinary item......................                 -                0.07                   -                0.02
                                                  --------------      --------------      --------------      ---------------
    Net Income.............................. $            0.55   $            0.41   $            0.51   $            0.99
                                                  ==============      ==============      ==============      ===============
1998:
Revenue..................................... $          92,791   $         100,043   $          95,744   $          97,213
Gross profit(1).............................            35,194              42,416              42,189              41,821
Income before extraordinary item............            27,937              26,361              36,050              34,270
Basic earnings per common share -
    Income before extraordinary item........              2.21                2.02                2.74                2.51
    Extraordinary item......................              0.10                   -                   -                   -
                                                  --------------      --------------      --------------      ---------------
    Net Income.............................. $            2.31   $            2.02   $            2.74   $            2.51
                                                  ==============      ==============      ==============      ===============
Diluted earnings common per share -
    Income before extraordinary item........ $            1.90   $            1.75   $            2.34   $            2.16
    Extraordinary item......................              0.08                   -                   -                   -
                                                  --------------      --------------      --------------      ---------------
    Net Income.............................. $            1.98   $            1.75   $            2.34   $            2.16
                                                  ==============      ==============      ==============      ===============


- ---------------------
(1)     Gross profit is defined as Operating Income as reported in the
        Consolidated Statements of Income plus general and administrative
        expenses.





                                       68

                    REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
                         ON FINANCIAL STATEMENT SCHEDULE



        To SEACOR SMIT Inc.:

        We have audited, in accordance with auditing standards generally
        accepted in the United States, the consolidated financial statements of
        SEACOR SMIT Inc. and its subsidiaries and have issued our report thereon
        dated February 15, 2000. Our audit was made for the purpose of forming
        an opinion on the basic financial statements taken as a whole. The
        schedule on page 62 is the responsibility of the Company's management
        and is presented for the purpose of complying with the Securities and
        Exchange Commission's rules and is not part of the basic financial
        statements. This schedule has been subjected to the auditing procedures
        applied in the audit of the basic financial statements and, in our
        opinion, fairly states in all material respects the financial data
        required to be set forth therein in relation to the basic financial
        statements taken as a whole.





                                                          Arthur Andersen LLP

        New Orleans, Louisiana
        February 15, 2000






                                       69

                        SEACOR SMIT INC. AND SUBSIDIARIES

                                   SCHEDULE II

                        VALUATION AND QUALIFYING ACCOUNTS
              FOR THE YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
                                 (IN THOUSANDS)




                                                       Balance          Charges to                             Balance
                                                      Beginning          Cost and             (a)                End
Description                                            of Year           Expenses          Deductions          of Year
- ------------------------------------------------     -------------     --------------     -------------     --------------
                                                                                             
Year Ended December 31, 1999
    Allowance for doubtful accounts
    (deducted from accounts receivable).....     $         1,956   $         (328)    $            61   $         1,567
                                                     =============     ==============     =============     ==============

Year Ended December 31, 1998
    Allowance for doubtful accounts
    (deducted from accounts receivable).....     $         1,626   $           455    $           125   $         1,956
                                                     =============     ==============     =============     ==============

Year Ended December 31, 1997
    Allowance for doubtful accounts
    (deducted from accounts receivable).....     $           475   $         1,155    $             4   $         1,626
                                                     =============     ==============     =============     ==============



(a)     Accounts receivable amounts deemed uncollectible and removed from
        accounts receivable and allowance for doubtful accounts.










                                       70

                                SEACOR SMIT INC.
                                INDEX TO EXHIBITS
                           ANNUAL REPORT ON FORM 10-K
                        FISCAL YEAR END DECEMBER 31, 1999

Exhibit
Number                               Description
- ------                               -----------

2.1*            Asset Purchase Agreement, dated as of December 19, 1996, by and
                among SEACOR Holdings, Inc. and certain of its subsidiaries, and
                Smit Internationale N.V. and certain of its subsidiaries
                (incorporated herein by reference to Exhibit 2.0 to the
                Company's Current Report on Form 8-K dated December 19, 1996 and
                filed with the Commission on December 24, 1996).

2.2*            Purchase Agreement, dated as of December 3, 1996, among SEACOR
                Holdings, Inc., Acadian Offshore Services, Inc., Galaxie Marine
                Service, Inc., Moonmaid Marine, Inc., Triangle Marine, Inc.,
                F.C. Felterman, Ernest Felterman, D. Lee Felterman and Daniel C.
                Felterman (incorporated herein by reference to Exhibit 2.1 to
                the Company's Registration Statement on Form S-3 (No. 333-20921)
                filed with the Commission on January 31, 1997).

2.3*            Purchase Agreement, dated as of December 3, 1996, among SEACOR
                Holdings, Inc., Waveland Marine Service, Inc., F.C. Felterman,
                Ernest Felterman, D. Lee Felterman and Daniel C. Felterman
                (incorporated herein, by reference to Exhibit 2.2 to the
                Company's Registration Statement on Form S-3 (No. 333-20921)
                filed with the Commission on January 31, 1997).

2.4*            Definitive Purchase Agreement, dated September 5, 1995, by and
                among Graham Marine Inc., Edgar L. Graham, J. Clark Graham, and
                Glenn A. Graham (incorporated herein by reference to Exhibit 2.0
                to the Company's Current Report on Form 8-K dated September 15,
                1995).

2.5*            Global Agreement, dated as of November 14, 1995, by and among
                Compagnie Nationale de Navigation and Feronia International
                Shipping, SA and SEACOR Holdings, Inc. and the subsidiaries
                listed in said agreement (incorporated herein by reference to
                Exhibit 2.2 of the Company's Registration Statement on Form S-3
                (No. 33-97868) filed with the Commission on November 17, 1995).

2.6*            Agreement and Plan of Merger, dated as of May 31, 1996, by and
                among SEACOR Holdings, Inc., SEACOR Enterprises, Inc. and McCall
                Enterprises, Inc. (incorporated herein by reference to Exhibit
                2.1 to the Company's Current Report on Form 8-K dated May 31,
                1996 and filed with the Commission on June 7, 1996).

2.7*            Agreement and Plan of Merger, dated as of May 31, 1996, by and
                among SEACOR Holdings, Inc., SEACOR Support Services, Inc. and
                McCall Support Vessels, Inc. (incorporated herein by reference
                to Exhibit 2.2 to the Company's Current Report on Form 8-K dated
                May 31, 1996 and filed with the Commission on June 7, 1996).

2.8*            Agreement and Plan of Merger, dated as of May 31, 1996, by and
                among SEACOR Holdings, Inc., SEACOR N.F., Inc. and N.F. McCall
                Crews, Inc. (incorporated herein by reference to Exhibit 2.3 to
                the Company's Current Report on Form 8-K dated May 31, 1996 and
                filed with the Commission on June 7, 1996).

2.9*            Exchange Agreement relating to McCall Crewboats, L.L.C., dated
                as of May 31, 1996, by and among SEACOR Holdings, Inc. and the
                persons listed on the signature pages thereto (incorporated


                                       71

                herein by reference to Exhibit 2.4 to the Company's Current
                Report on Form 8-K dated May 31, 1996 and filed with the
                Commission on June 7, 1996).

2.10*           Share Exchange Agreement and Plan of Reorganization relating to
                Cameron Boat Rentals, Inc., dated as of May 31, 1996, by and
                among SEACOR Holdings, Inc., McCall Enterprises, Inc. and the
                persons listed on the signature pages thereto (incorporated
                herein by reference to Exhibit 2.5 to the Company's Current
                Report on Form 8-K dated May 31, 1996 and filed with the
                Commission on June 7, 1996).

2.11*           Share Exchange Agreement and Plan of Reorganization relating to
                Philip A. McCall, Inc., dated as of May 31, 1996, by and among
                SEACOR Holdings, Inc., McCall Enterprises, Inc. and the persons
                listed on the signature pages thereto (incorporated herein by
                reference to Exhibit 2.6 to the Company's Current Report on Form
                8-K dated May 31, 1996 and filed with the Commission on June 7,
                1996).

2.12*           Share Exchange Agreement and Plan of Reorganization relating to
                Cameron Crews, Inc., dated as of May 31, 1996, by and among
                SEACOR Holdings, Inc., McCall Enterprises, Inc. and the persons
                listed on the signature pages thereto (incorporated herein by
                reference to Exhibit 2.7 to the Company's Current Report on Form
                8-K dated May 31, 1996 and filed with the Commission on June 7,
                1996).

3.1*            Restated Certificate of Incorporation of SEACOR SMIT Inc.
                (incorporated herein by reference to Exhibit 3.1(a) to the
                Company's Quarterly Report on Form 10-Q for the fiscal quarter
                ended June 30, 1997 and filed with the Commission on August 14,
                1997).

3.2*            Certificate of Amendment to the Restated Certificate of
                Incorporation of SEACOR SMIT Inc. (incorporated herein by
                reference to Exhibit 3.1(b) to the Company's Quarterly Report on
                Form 10-Q for the fiscal quarter ended June 30, 1997 and filed
                with the Commission on August 14, 1997).

3.3*            Amended and Restated By-laws of SEACOR Holdings, Inc.
                (incorporated herein by reference to Exhibit 4.2 to the
                Company's Registration Statement on Form S-8 (No. 333-12637) of
                SEACOR Holdings, Inc. filed with the Commission on September 25,
                1996).

4.1*            Indenture, dated as of November 1, 1996, between First Trust
                National Association, as trustee, and SEACOR Holdings, Inc.
                (including therein forms of 5-3/8% Convertible Subordinated
                Notes due November 15, 2006 of SEACOR Holdings, Inc.)
                (incorporated herein by reference to Exhibit 4.0 to the
                Company's Quarterly Report on Form 10-Q for the fiscal quarter
                ended September 30, 1996 and filed with the Commission on
                November 14, 1996).

4.2*            Indenture, dated as of September 22, 1997, between SEACOR SMIT
                Inc. and First Trust National Association, as trustee (including
                therein form of Exchange Note 7.20% Senior Notes Due
                2009)(incorporated herein by reference to Exhibit 4.1 to the
                Company's Registration Statement on Form S-4 (No. 333-38841)
                filed with the Commission on October 27, 1997).

4.3*            Investment and Registration Rights Agreement, dated as of March
                14, 1995, by and among SEACOR Holdings, Inc., Miller Family
                Holdings, Inc., Charles Fabrikant, Mark Miller, Donald
                Toenshoff, Alvin Wood, Granville Conway and Michael Gellert
                (incorporated herein by reference to Exhibit 4.0 of the
                Company's Current Report on Form 8-K dated March 14, 1995, as
                amended).

4.4*            Investment and Registration Rights Agreement, dated as of May
                31, 1996, among SEACOR Holdings, Inc. and the persons listed on
                the signature pages thereto (incorporated herein by reference to
                Exhibit 10.8 to the Company's Current Report on Form 8-K dated
                May 31, 1996 and filed with the Commission on June 7, 1996).

4.5*            Registration Rights Agreement, dated November 5, 1996, between
                SEACOR Holdings, Inc. and Credit Suisse First Boston
                Corporation, Salomon Brothers Inc. and Wasserstein Perella
                Securities, Inc. (incorporated herein by reference to Exhibit
                4.1 to the Company's Quarterly Report on Form 10-Q for the
                fiscal quarter ended September 30, 1996 and filed with the
                Commission on November 14, 1996).

4.6*            Investment and Registration Rights Agreement, dated as of
                December 19, 1996, by and between SEACOR Holdings, Inc. and Smit
                International Overseas B.V. (incorporated herein by reference to
                Exhibit 4.0 to the Company's Current Report on Form 8-K dated


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                December 19, 1996 and filed with the Commission on December 24,
                1996).

4.7*            Investment and Registration Rights Agreement, dated as of
                January 3, 1997, among SEACOR Holdings, Inc., Acadian Offshore
                Services, Inc., Galaxie Marine Service, Inc., Moonmaid Marine,
                Inc. and Triangle Marine, Inc. (incorporated herein by reference
                to Exhibit 4.6 to the Company's Registration Statement on Form
                S-3 (No. 333-20921) filed with the Commission on January 31,
                1997).

4.8*            Investment and Registration Rights Agreement, dated October 27,
                1995, by and between SEACOR Holdings, Inc. and Coastal Refining
                and Marketing, Inc. (incorporated herein by reference to Exhibit
                4.2 of the Company's Registration Statement on Form S-3 (No.
                33-97868) filed with the Commission on November 17, 1995).

4.9*            Investment and Registration Rights Agreement, dated November 14,
                1995, by and between SEACOR Holdings, Inc. and Compagnie
                Nationale de Navigation (incorporated herein by reference to
                Exhibit 4.3 of the Company's Registration Statement on Form S-3
                (No. 33-97868) filed with the Commission on November 17, 1995).

4.10*           Registration Agreement, dated as of September 22, 1997, between
                the Company and the Initial Purchasers (as defined
                therein)(incorporated herein by reference to Exhibit 4.3 to the
                Company's Registration Statement on Form S-4 (No. 333-38841)
                filed with the Commission on October 27, 1997).


4.11*           Restated Stockholders' Agreement dated December 16, 1992
                (incorporated herein by reference to Exhibit 10.12 to the Annual
                Report on Form 10-K of SEACOR Holdings, Inc. for the fiscal year
                ended December 31, 1992).

10.1*           Indemnification Agreement, dated as of May 31, 1996, among all
                of the stockholders of McCall Enterprises, Inc., Norman McCall,
                as representative of such stockholders, and SEACOR Holdings,
                Inc. (incorporated herein by reference to Exhibit 10.1 to the
                Company's Current Report on Form 8-K dated May 31, 1996 and
                filed with the Commission on June 7, 1996).

10.2*           Indemnification Agreement, dated as of May 31, 1996, among all
                of the stockholders of McCall Support Vessels, Inc., Norman
                McCall, as representative of such stockholders, and SEACOR
                Holdings, Inc. (incorporated herein by reference to Exhibit 10.2
                to the Company's Current Report on Form 8-K dated May 31, 1996
                and filed with the Commission on June 7, 1996).

10.3*           Indemnification Agreement, dated as of May 31, 1996, among all
                of the stockholders of N.F. McCall Crews, Inc., Norman McCall,
                as representative of such stockholders, and SEACOR Holdings,
                Inc. (incorporated herein by reference to Exhibit 10.3 to the
                Company's Current Report on Form 8-K dated May 31, 1996 and
                filed with the Commission on June 7, 1996).

10.4*           Indemnification Agreement, dated as of May 31, 1996, among all
                of the members of McCall Crewboats, L.L.C., Norman McCall, as
                representative of such members, and SEACOR Holdings, Inc.
                (incorporated herein by reference to Exhibit 10.4 to the
                Company's Current Report on Form 8-K dated May 31, 1996 and
                filed with the Commission on June 7, 1996).

10.5*           Indemnification Agreement, dated as of May 31, 1996, among all
                of the stockholders of Cameron Boat Rentals, Inc., Norman
                McCall, as representative of such stockholders, and SEACOR
                Holdings, Inc. (incorporated herein by reference to Exhibit 10.5
                to the Company's Current Report on Form 8-K dated May 31, 1996
                and filed with the Commission on June 7, 1996).

10.6*           Indemnification Agreement, dated as of May 31, 1996, among all
                of the stockholders of Philip A. McCall, Inc. and SEACOR
                Holdings, Inc. (incorporated herein by reference to Exhibit 10.6
                to the Company's Current Report on Form 8-K dated May 31, 1996
                and filed with the Commission on June 7, 1996).

10.7*           Indemnification Agreement, dated as of May 31, 1996, among all
                of the stockholders of Cameron Crews, Inc., Norman McCall, as
                representative of such stockholders, and SEACOR Holdings, Inc.
                (incorporated herein by reference to Exhibit 10.7 to the
                Company's Current Report on Form 8-K dated May 31, 1996 and
                filed with the Commission on June 7, 1996).


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10.8*           The Master Agreement, dated as of June 6, 1996, by and among
                Compagnie Nationale de Navigation, SEACOR Holdings, Inc. and
                SEACOR Worldwide Inc. (incorporated herein by reference to
                Exhibit 10.9 to the Company's Quarterly Report on Form 10-Q for
                the period ended June 30, 1996).

10.9*           Management and Administrative Services Agreement, dated January
                1, 1990, between SCF Corporation and SEACOR Holdings, Inc.
                (incorporated herein by reference to Exhibit 10.32 to the
                Company's Registration Statement on Form S-1 (No. 33-53244)
                filed with the Commission on November 10, 1992).

10.10*          Amendment No. 1 to the Management and Services Agreement, dated
                as of January 1, 1993, between SCF Corporation and SEACOR
                Holdings, Inc. (incorporated herein by reference to Exhibit
                10.34 to the Annual Report on Form 10-K of SEACOR Holdings, Inc.
                for the fiscal year ended December 31, 1992).

10.11*          Lease Agreement, dated September 1, 1989, between The Morgan
                City Fund and NICOR Marine Inc. (SEACOR Marine Inc., as
                successor lessee) (incorporated herein by reference to Exhibit
                10.33 to the Company's Registration Statement on Form S-1 (No.
                33-53244) filed with the Commission on November 10, 1992).


10.12*,**       SEACOR Holdings, Inc. 1992 Non-Qualified Stock Option Plan
                (incorporated herein by reference to Exhibit 10.45 to the
                Company's Registration Statement on Form S-1 (No. 33-53244)
                filed with the Commission on November 10, 1992).

10.13*,**       SEACOR Holdings, Inc. 1996 Share Incentive Plan (incorporated
                herein by reference to SEACOR Holdings, Inc.'s Proxy Statement
                dated March 18, 1996 relating to the Annual Meeting of
                Stockholders held on April 18, 1996).

10.14*,**       Benefit Agreement, dated May 1, 1989, between NICOR Marine Inc.
                and Lenny P. Dantin (assumed by SEACOR Holdings, Inc.)
                (incorporated herein by reference to Exhibit 10.51 to the
                Company's Registration Statement on Form S-1 (No. 33-53244)
                filed with the Commission on November 10, 1992).

10.15*,**       Employment Agreement, dated December 24, 1992, between SEACOR
                Holdings, Inc. and Milton Rose (incorporated herein by reference
                to Exhibit 10.61 to the Annual Report on Form 10-K of SEACOR
                Holdings, Inc. for the fiscal year ended December 31, 1992).

10.16*          Management and Services Agreement, dated January 1, 1985,
                between NICOR Marine (Nigeria) Inc. and West Africa Offshore
                Limited (assumed by SEACOR Holdings, Inc.) (incorporated herein
                by reference to Exhibit 10.55 to the Company's Registration
                Statement on Form S-1 (No. 33-53244) filed with the Commission
                on November 10, 1992).

10.17*          Bareboat Charter Agreement, dated December 19, 1996, between
                SEACOR-SMIT Offshore (International) B.V. and Smit-Lloyd B.V.
                (incorporated herein by reference to Exhibit 10.1 to the
                Company's Current Report on Form 8-K dated December 19, 1996 and
                filed with the Commission on December 24, 1996).

10.18*          Bareboat Charter Agreement, dated December 19, 1996, between
                SEACOR-SMIT Offshore (International) B.V. and Smit-Lloyd B.V.
                (incorporated herein by reference to Exhibit 10.2 to the
                Company's Current Report on Form 8-K dated December 19, 1996 and
                filed with the Commission on December 24, 1996).

10.19*          Joint Venture Agreement, dated December 19, 1996, between SEACOR
                Holdings, Inc. and Smit-Lloyd (Antillen) N.V. (incorporated
                herein by reference to Exhibit 10.0 to the Company's Current
                Report on Form 8-K dated December 19, 1996 and filed with the
                Commission on December 24, 1996).

10.20*          Form of Management Agreement (incorporated herein by reference
                to Exhibit 10.4 to the Company's Current Report on Form 8-K
                dated December 19, 1996 and filed with the Commission on
                December 24, 1996).

10.21*          Malaysian Side Letter, dated December 19, 1996, between SEACOR
                Holdings, Inc. and Smit Internationale N.V. (incorporated herein
                by reference to Exhibit 10.3 to the Company's Current Report on


                                       74

                Form 8-K dated December 19, 1996 and filed with the Commission
                on December 24, 1996).

10.22*          Salvage and Maritime Contracting Agreement, dated December 19,
                1996, between SEACOR Holdings, Inc. and Smit Internationale N.V.
                (incorporated herein by reference to Exhibit 10.5 to the
                Company's Current Report on Form 8-K dated December 19, 1996 and
                filed with the Commission on December 24, 1996).

10.23*          License Agreement, dated December 19, 1996, between SEACOR
                Holdings, Inc., certain subsidiaries of SEACOR Holdings, Inc.
                and Smit Internationale N.V. (incorporated herein by reference
                to Exhibit 10.6 to the Company's Current Report on Form 8-K
                dated December 19, 1996 and filed with the Commission on
                December 24, 1996).

10.24*          Amended and Restated Operating Agreement of Chiles Offshore LLC,
                dated as of December 16, 1997, between SEACOR Offshore Rigs
                Inc., COI, LLC and the other Members identified therein.

10.25*          Letter Agreement, dated February 26, 1998, between SEACOR SMIT
                Inc. and certain of its subsidiaries and SMIT Internationale
                N.V. and certain of its subsidiaries (incorporated herein by
                reference to Exhibit 99.1 of the Company's Current Report on
                Form 8-K filed with the Commission of March 11, 1998).

10.26*          Purchase Agreement, dated as of September 15, 1997, between the
                Company and Salomon Brothers Inc., individually and as
                representative of the Initial Purchasers (as defined
                therein)(incorporated herein by reference to Exhibit 4.2 to the
                Company's Registration Statement on Form S-4 (No. 333-38841)
                filed with the Commission on October 27, 1997).

10.27*          Revolving Credit Facility Agreement dated as of June 30, 1997
                among SEACOR SMIT Inc., Den norske Bank ASA, as agent, and the
                other banks and financial institutions named therein
                (incorporated herein by reference to Exhibit 10.1 to the
                Company's Quarterly Report on Form 10-Q for the fiscal quarter
                ended June 30, 1997 and filed with the Commission on August 14,
                1997).

10.28*          Agreement, dated October 27, 1995, by and among SEACOR Holdings,
                Inc., NRC Holdings, Inc., Coastal Refining and Marketing, Inc.,
                and Phibro Energy USA, Inc. (incorporated herein by reference to
                Exhibit 10.1 of the Company's Registration Statement on Form S-3
                (No. 33-97868) filed with the Commission on November 15, 1995).


10.29*,**       Employment Agreement, dated March 14, 1995, by and between
                National Response Corporation and Mark Miller (incorporated
                herein by reference to Exhibit 10.3 of the Company's
                Registration Statement on Form S-3 (No. 33-97868) filed with the
                Commission on November 15, 1995).

10.30*,**       Employment Agreement, dated March 14, 1995, by and between
                National Response Corporation and James Miller (incorporated
                herein by reference to Exhibit 10.4 of the Company's
                Registration Statement on Form S-3 (No. 33-97868) filed with the
                Commission on November 15, 1995).

10.31*,**       Letter agreement, dated February 26, 1997, between SEACOR SMIT
                Inc. and certain of its' subsidiaries and SMIT Internationale,
                N.V. and certain of its subsidiaries (incorporated herein by
                reference to Exhibit 99.1 of the Current Report on Form 8-K
                filed with the Commission on March 11, 1998).

10.32           Agreement for a U.S. $100,000,000 Revolving Credit Facility to
                be made available to SEACOR SMIT Inc. by the financial
                institutions identified on Schedule A and Den Norske Bank ASA,
                as agent, dated November 17, 1998.

10.33           Amendment No. 1 To Credit Agreement made as of February 4, 1999
                by and between SEACOR SMIT Inc., the financial institutions
                listed in Schedule A to that certain Credit Agreement dated
                November 17, 1998 and Den norske Bank ASA.

10.34           Amendment No. 2 To Credit Agreement made as of October 1, 1999
                by and between SEACOR SMIT Inc., certain financial institutions
                and Den norske Bank ASA., which further amends that certain
                Revolving Credit Agreement dated November 17, 1998 and Amendment
                No. 1 thereto dated February 4, 1999.

10.35**         Form of Type A Restricted Stock Grant Agreement.

10.36**         Form of Type B Restricted Stock Grant Agreement.

10.37**         Form of Option Agreement for Officers and Key Employees pursuant
                to the SEACOR SMIT Inc. 1996 Share Incentive Plan.

21.1            List of Registrant's Subsidiaries.

23.1            Consent of Arthur Andersen LLP.

27.1            Financial Data Schedule.


- --------------------
    *    Incorporated herein by reference as indicated.

   **    Management contracts or compensatory plans or arrangements required
         to be filed as an exhibit pursuant to Item14 (c) of the rules governing
         the preparation of this report.


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