SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

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

                For the quarterly period ended September 30, 1998

                        Commission File Number: 33-42039



                      SEABULK TRANSMARINE PARTNERSHIP, LTD.


State of Incorporation: Florida                  I.R.S. Employer I.D. 59-2580172

                                2200 Eller Drive
                                 P.O. Box 13038
                          Ft. Lauderdale, Florida 33316
                                 (954) 524-4200




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  twelve months (or for such shorter period that the registrant was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past ninety days.

               Yes                              No           X


<PAGE>



SEABULK TRANSMARINE PARTNERSHIP, LTD.

Quarter ended September 30, 1998

Index


                                                                           Page

Part I.  Financial Information

 Item 1.  Financial Statements............................................   1

    Condensed Balance Sheets at December 31, 1997
    and September 30, 1998 (Unaudited)....................................   2

    Condensed Statements of Operations for the three and
    nine months ended September 30, 1997 and 1998 (Unaudited).............   3

    Condensed Statements of Cash Flows for the
    nine months ended September 30, 1997 and 1998 (Unaudited).............   4

    Notes to Condensed Financial Statements...............................   5

 Item 2.   Management's Discussion and Analysis of
           Financial Condition and Results of Operations..................   8

Part II.  Other Information

 Item 6.   Reports on Form 8-K............................................  11

 Signature................................................................  10



<PAGE>




PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements



<PAGE>



                      Seabulk Transmarine Partnership, Ltd.
                                 Balance Sheets
                                 (in thousands)
<TABLE>
<CAPTION>

                                                                                      December 31,          September 30,
                                                                                          1997                  1998
                                                                                      -------------         ------------
                                                                                                           (Unaudited)
<S>                                                                               <C>                   <C>
Assets
Current assets:
     Cash and cash equivalents.............................................       $             16      $            27
     Insurance claims and other receivables................................                     14                   --
     Inventory, spare parts and supplies...................................                  1,320                1,320
     Prepaid expenses and deferred costs...................................                    312                  363
                                                                                  ----------------      ---------------
        Total current assets...............................................                  1,662                1,710

Vessels and improvements...................................................                 43,806               43,806
Less accumulated depreciation..............................................                 (9,810)             (10,882)
                                                                                  ----------------      ---------------
                                                                                            33,996               32,924

Deferred costs, net........................................................                    426                  221
                                                                                  ----------------      ---------------
                                                                                  $         36,084      $        34,855
                                                                                  ================      ===============
Liabilities and partners' equity Current liabilities:
     Accrued liabilities ..................................................       $            741      $           571
                                                                                  ----------------      ---------------
Total current liabilities..................................................                    741                  571

Due to affiliates, net ....................................................                 31,777               30,598
Other long term obligations ...............................................                    109                  125

Commitments and contingencies

Partners' equity ..........................................................                  3,457                3,561
                                                                                  ----------------       --------------
                                                                                  $         36,084      $        34,855
                                                                                  ================      ===============
</TABLE>

See accompanying notes.


<PAGE>



                      Seabulk Transmarine Partnership, Ltd.
                             Statement of Operations
                                 (in thousands)
<TABLE>
<CAPTION>

                                                                  Three Months Ended              Nine Months Ended
                                                                    September 30,                   September 30,
                                                                 1997           1998             1997             1998
                                                             ------------   ------------     ------------     --------
<S>                                                         <C>             <C>             <C>             <C>
Revenues..............................................      $     2,465     $    2,655      $     7,772     $     7,870
Operating expenses:
    Crew payroll and benefits.........................              656            686            2,052           2,082
    Repairs and maintenance...........................              246            196              581             554
    Insurance.........................................              103             48              381             243
    Consumables.......................................               78             64              203             218
    Other.............................................              132             25              307             269
                                                            -----------     ----------      -----------     -----------
      Total operating expenses........................            1,215          1,019            3,524           3,366

Selling, general and administrative expenses:
    Salaries and benefits ............................               50             37              126             141
    Professional fees.................................              446            566            1,729           1,140
    Allocated overhead ...............................              133            137              401             412
    Other ............................................                3             28               22              51
                                                            -----------     ----------      -----------     -----------
      Total overhead expenses ........................              632            768            2,278           1,744

Depreciation .........................................              354            357            1,061           1,072
                                                            -----------     ----------      -----------     -----------
Income from operations................................              264            511              909           1,688

Interest expense......................................              226            572            1,118           1,584
Other expense.........................................                3             --               37              --
                                                            -----------     ----------      -----------     -----------
Net income (loss) ....................................      $        35     $      (61)     $      (246)    $       104
                                                            ===========     ==========      ===========     ===========
</TABLE>


 See accompanying notes.


<PAGE>



                      Seabulk Transmarine Partnership, Ltd.
                             Statements of Cash Flows
                                (in thousands)
<TABLE>
<CAPTION>

                                                                                              Nine Months Ended
                                                                                                September 30,
                                                                                             1997           1998
                                                                                          -----------   --------
                                                                                                 (Unaudited)
<S>                                                                                      <C>            <C>
Operating activities
Net income (loss).................................................................        $    (246)     $     104
Adjustments to reconcile net income to net cash
   provided by operating activities:
     Depreciation ................................................................            1,061          1,072
     Amortization of drydocking costs ............................................              229            243
     Amortization of debt issuance costs .........................................               21             --
Changes in operating assets and liabilities:
     Accounts receivable .........................................................              186             14
     Other assets ................................................................             (687)           (88)
     Due to affiliates ...........................................................            1,011         (1,179)
     Accrued and other liabilities................................................              124           (155)
                                                                                        -----------     ----------
Net cash provided by operating activities ........................................            1,699             11

Investing activity
Purchase of property .............................................................             (249)            --

Financing activity
Principal payments on allocated term loan borrowings .............................           (1,446)            --
                                                                                             -------    ----------

Change in cash and cash equivalents ..............................................               (4)            11
Cash and cash equivalents at beginning of year ...................................               17             16
                                                                                        -----------     ----------
Cash and cash equivalents at end of year .........................................        $      21      $      27
                                                                                          =========      =========
</TABLE>


See accompanying notes.


<PAGE>



                      SEABULK TRANSMARINE PARTNERSHIP, LTD.
                          NOTES TO FINANCIAL STATEMENTS
                              September 30, 1998



1.       Organization and Description of Business

         Organization.  Seabulk  Transmarine  Partnership,  Ltd.  ("STPL" or the
"Partnership"),  a Florida  limited  partnership,  was formed on August 30, 1985
pursuant to a  partnership  agreement  (the  "Agreement"),  to own and operate a
chemical transportation carrier, the Seabulk America. The general partner of the
Partnership is Seabulk  Tankers,  Ltd.  ("STL"),  a Florida limited  partnership
(which owns a 33% interest in the  Partnership),  and the limited  partners (and
their respective interests in the Partnership) are STL (0.33%),  Seabulk America
Partnership,  Ltd. ("SAPL"), a Florida limited partnership  (41.67%),  and Stolt
Tankers (U.S.A) Inc. (25%).  STL and SAPL are 100%- and 82%-owned  subsidiaries,
respectively, of Hvide Marine Incorporated ("HMI").

         Description  of  Business.  The  Seabulk  America is used to  transport
chemicals,  primarily from chemical  manufacturing plants and storage facilities
along the U.S. Gulf of Mexico coast to industrial  users in and around  Atlantic
and Pacific coast ports.  The  Partnership  time charters the Seabulk America to
Ocean Specialty Tankers Corp. ("OSTC"), which is 100% owned by HMI.

2.       Partnership Agreement

         The  general   partner  is  responsible   for  the  management  of  the
Partnership.  Pursuant to the  Agreement,  the  general  partner and the limited
partners  (collectively  referred  to as the  "Partners")  are  required to make
capital  contributions  at such times and in such amounts as the general partner
requests by notice. No additional  capital  contributions have been required for
1996,  1997 or the nine months ended  September  30, 1998.  The Partners are not
entitled  to  withdraw  any  part  of the  capital  account  or to  receive  any
distribution  from  the  Partnership  except  as  specifically  provided  in the
Agreement.  All net income or net losses of the Partnership are allocated to the
capital  accounts in proportion to the  partnership  interests.  The Partnership
terminates on August 30, 2010, unless sooner terminated, liquidated or dissolved
by law or pursuant to the  Agreement  or unless  extended  by  amendment  to the
Agreement.

3.       Transactions with Affiliates

         Balances  due  (to)  from  affiliates  consist  of  the  following  (in
thousands):


                                                    December 31,   September 30,
                                                    ------------   -------------
                                                        1997           1998

                  Due to HMI                        $   (33,212)   $    (32,658)
                  Due from STL                              338             338
                  Due from OSTC                           1,062           1,687
                  Other, net                                 35              35
                                                    -----------    ------------
                  Total due to affiliates           $  (31,777)   $     (30,598)
                                                    ===========    ============

         The amount  payable to HMI reflects  various  transactions  between the
Partnership  and  HMI.  There  are no terms of  settlement  associated  with the
account  balance.  The  balance is  primarily  the  result of the  Partnership's
participation in HMI's central cash management  program,  in which substantially
all the  Partnership's  cash receipts are remitted to HMI and  substantially all
cash disbursements are funded by HMI. Other transactions  include  miscellaneous
other administrative expenses incurred by HMI on behalf of the Partnership.

         HMI  provides  various  administrative  services  to  the  Partnership,
including  legal  assistance  and  technical  expertise on ship  management  and
maintenance.  It is HMI's policy to charge these  expenses and all other central
operating  costs on the  basis  of  direct  usage  when  identifiable,  with the
remainder  allocated pursuant to the terms of the Agreement.  Amounts charged by
HMI include a monthly  management  fee, as set forth in the Agreement,  which is
adjusted annually based on changes in the Consumer Price Index. HMI also charges
interest  based on the amount due to HMI.  In the  opinion of the  Partnership's
management, this method of allocation is reasonable.

         An  analysis  of  transactions  in the Due to HMI  account for the nine
months ended September 30, 1998 follows (in thousands):

         Balance at beginning of year                               $(33,212)
              Net cash remitted to (received from) HMI                 7,870
              Allocated management fees                                 (413)
              Allocated guarantee fee                                    (12)
              Allocated interest expense                              (1,584)
              Operating expenses                                      (3,367)
              Professional fees                                       (1,139)
              Miscellaneous administrative expenses                     (801)
                                                                       ------
              Balance at end of year                                $(32,658)
                                                                    =========

         Average balance during the year                            $(32,970)

         At September 30, 1998, the  Partnership had a stand-by letter of credit
in the  amount  of  $5,600,000  available  for the  benefit  of the  Partnership
provided by HMI (the "Letter of Credit"). The Letter of Credit was terminated in
December  1998  (see  Note  7).  Included  in  the  accompanying  statements  of
operations are guarantee fees primarily related to the Letter of Credit.

4.       Guarantees of Indebtedness of Others

         In February 1998, HMI completed an offering of $300.0 million of 8.375%
senior  notes (the  "Senior  Notes").  Interest  on the Senior  Notes is payable
semi-annually  in arrears on February 15 and August 15. The Senior  Notes mature
on February 15, 2008 and are  redeemable,  in whole or in part, at the option of
HMI on or after  February  15,  2003.  The Senior  Notes are  guaranteed  by the
Partnership  and certain  other HMI  subsidiaries;  however,  the  Partnership's
guarantee is limited to HMI's  approximately 67% economic  ownership interest in
the Partnership.

         HMI's credit  facility  with a group of banks (the  "Credit  Facility")
provides for revolving credit loans  aggregating up to $175 million,  subject to
certain  conditions.  The Credit  Facility  also provides for a term loan in the
amount of $150 million. The Credit Facility provides that borrowings  thereunder
will be secured by HMI-owned vessels,  including the Seabulk America,  having an
appraised value of at least $600.0 million and by substantially all other assets
of HMI and its  subsidiaries.  The revolving  and term loan  portions  mature on
February 12, 2003 and March 31, 2005 respectively.  At September 30, 1998, HMI's
outstanding  indebtedness  under the  revolving  credit  portion  of the  Credit
Facility was  approximately  $121 million,  and  approximately  $139 million was
outstanding under the term loan portion of the Credit Facility.  The Partnership
and certain other  subsidiaries of HMI also jointly and severally  guarantee the
repayment  of  HMI's  indebtedness  under  the  Credit  Facility;  however,  the
Partnership's  guarantee  is  limited  to HMI's 67%  ownership  interest  in the
Seabulk America.

5.       Commitments and Contingencies

         In 1990,  the  Partnership  withheld  approximately  $2,400,000  from a
shipyard  relating to delays and other problems  encountered in the construction
of the  Partnership's  vessel.  In 1993,  the shipyard  filed a claim to recover
approximately  $6,100,000 for additional  construction  costs  allegedly due the
shipyard.  The proceeding  was settled in the fourth quarter of 1998.  Under the
terms  of  the   settlement,   all  claims  were  dismissed  with  prejudice  in
consideration of the payment to the shipyard of $4,750,000 in installments  from
December  1998 to May  1999.  As  part  of the  settlement,  a  $5,600,000  bond
previously  provided by HMI was released and a related letter of credit provided
as collateral to the bond was terminated.

6.       Income Taxes

         The Partnership has received a ruling from the Internal Revenue Service
that it will be  classified as a  partnership  for federal  income tax purposes.
Accordingly,  no provision for income taxes is made in the financial  statements
of the Partnership. Taxable income or loss of the Partnership is reported in the
income tax returns of the Partners.



<PAGE>




Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations

         The  following  Management's   Discussion  and  Analysis  of  Financial
Condition and Results of Operations  ("MD&A") should be read in conjunction with
the  condensed  financial  statements  and the related  notes  thereto  included
elsewhere in this Report.

         The MD&A contains  "forward-looking  statements"  within the meaning of
Section 27A of the  Securities  Act of 1933, as amended,  and Section 21E of the
Securities  Exchange  Act of  1934,  as  amended.  All  statements,  other  than
statements  of  historical  fact,  included  in  the  MD&A  are  forward-looking
statements.  Although the Partnership believes that the expectations and beliefs
reflected in such  forward-looking  statements  are  reasonable,  it can give no
assurance that they will prove correct.

Results of Operations

           Three months ended  September 30, 1998 compared with the three months
ended September 30, 1997

         Revenue.  Revenue  increased  7.7% to $2.7 million for the three months
ended  September 30, 1998 from $2.5 million for the three months ended September
30, 1997 due to an increased charter rate in the  Partnership's  time charter on
the Seabulk America.

         Operating Expenses.  Operating expenses decreased 16.1% to $1.0 million
for the three  months ended  September  30, 1998 as compared to $1.2 million for
the three  months  ended  September  30, 1997  primarily  due to cost savings on
insurance   premiums   and  other   miscellaneous   expenses   such  as  travel,
communications,  training  and  inspection  fees.  As a  percentage  of revenue,
operating  expenses  decreased to 38.4% for the three months ended September 30,
1998 from 49.3% in the 1997  period  due to the  increased  charter  rate of the
Seabulk America and the reduction in costs.

         Overhead  Expenses.  Overhead expenses  increased 21.5% to $0.8 million
for the three  months ended  September  30, 1998 from $0.6 million for the three
months ended September 30, 1997, primarily due to an increase in fees related to
litigation.  As a percentage of revenues,  overhead expenses  increased to 28.9%
for the three  months ended  September  30, 1998 from 25.6% for the three months
ended September 30, 1997 due to this increase in fees.

         Depreciation Expense. Depreciation expense remained relatively flat for
the three months ended  September  30, 1998 as compared with the 1997 period due
to minimal amounts of new capital expenditures.

         Income from Operations.  Income from operations increased 93.6% to $0.5
million for the three  months  ended  September  30, 1998 from $0.3  million the
three months ended September 30, 1997 as a result of the factors noted above.

         Net Interest  Expense.  Net interest  expense  increased 153.1% to $0.6
million for the three months ended  September 30, 1998 from $0.2 million for the
1997 period,  primarily as a result of an increase in the interest  rate charged
on a higher intercompany balance with HMI.

         Net  Income.  The  Partnership  had a net loss of $61,000 for the three
months  ended  September  30,  1998 as compared to net income of $35,000 for the
1997 period, primarily as a result of the factors noted above.

           Nine months ended  September  30, 1998  compared with the nine months
ended September 30, 1997.

         Revenue.  Revenue  decreased  1.3% to $7.9  million for the nine months
ended  September 30, 1998 from $7.8 million for the nine months ended  September
30, 1997 due to an increased charter rate in the  Partnership's  time charter on
the Seabulk America.

         Operating  Expenses.  Operating expenses decreased 4.5% to $3.4 million
for the nine months  ended  September  30,  1998 from $3.5  million for the nine
months  ended  September  30, 1997  primarily  due to cost  savings on insurance
premiums  and  other  miscellaneous  expenses  such as  travel,  communications,
training and  inspection  fees. As a percentage of revenue,  operating  expenses
decreased  to 42.8% for the nine months ended  September  30, 1998 from 45.3% in
the 1997 period due to the  increased  charter  rate of the Seabulk  America and
cost savings.

         Overhead  Expenses.  Overhead expenses  decreased 23.4% to $1.7 million
for the nine months  ended  September  30,  1998 from $2.3  million for the nine
months ended September 30, 1997,  primarily due to a decrease in fees related to
litigation.  As a percentage of revenues,  overhead expenses  decreased to 22.2%
for the nine  months  ended  September  30,  1998 from 29.3% for the nine months
ended September 30, 1997 due to this reduction in fees.

         Depreciation Expense. Depreciation expense remained relatively flat for
the nine months ended September 30, 1998 as compared with the 1997 period due to
minimal amounts of new capital expenditures.

         Income from Operations.  Income from operations increased 85.7% to $1.7
million for the nine months ended  September 30, 1998 from $0.9 million the nine
months ended September 30, 1997 as a result of the factors noted above.

         Interest  Expense.  Interest expense increased 4.7% to $1.6 million for
the nine months ended  September 30, 1998 from $1.1 million for the 1997 period,
primarily  as a result of an increase in the  interest  rate charged on a higher
intercompany balance with the HMI.

         Net Income.  The  Partnership  had net income of $104,000  for the nine
months  ended  September  30, 1998 as compared to a net loss of $246,000 for the
1997 period, primarily as a result of the factors noted above.



<PAGE>




PART II.  OTHER INFORMATION

Item 6.    Reports on Form 8-K

b.       Reports on Form 8-K.

                  Not applicable.



SIGNATURES

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

SEABULK TRANSMARINE PARTNERSHIP, LTD.

By:      SEABULK TANKERS, Ltd.
         its General Partner

By:      HVIDE MARINE TRANSPORT, INCORPORATED
         its General Partner



By:
         John H. Blankley, Executive Vice President,
         Chief Financial Officer and Director


Date: