Following up on my May 8th article about Tidewater (TDW), I would like to revisit the company and also expand on background information regarding TDW.
Recent moves
Since May 8th, TDW has risen 37.5%. The company has also recently completed an acquisition of 37 platform supply vessels from Solstad International ASA for $580 million USD. A bond offering was made on July 3rd in the Nordic market to finance this deal. With this acquisition, TDW has become the world's largest offshore oil support fleet. Following this, Evercore put an outperform rating on TDW and set a $90 price target for the stock, causing it to rise over 7.82% on Friday.
Background information
Tidewater is an American company that provides offshore energy support services to the global offshore energy industry. It specializes in providing vessels and marine support services to offshore drilling rigs, production platforms, and other offshore facilities.
Tidewater's primary services include:
Offshore vessel services
Tidewater operates a large fleet of vessels that are used for various offshore operations. Tidewater’s fleet includes platform supply vessels, or PSVs, anchor handling tug supply vessels, AHTSs, and crew boats.
PSV duties include:
Transporting supplies and equipment: PSVs are primarily used to transport essential supplies, equipment, and consumables to offshore drilling rigs, production platforms, and other offshore installations. They carry a wide range of items such as drilling fluids, chemicals, pipes, spare parts, food, water, and personnel supplies.
Cargo storage and delivery: PSVs have large cargo holds and deck areas designed to accommodate different types of cargo. They can transport and deliver cargo to offshore facilities in a safe and efficient manner. The vessels are equipped with cranes and other handling equipment to facilitate loading and unloading operations.
Personnel transport: PSVs also serve as a means of transportation for offshore personnel. They can carry crew members, technicians, and other workers to and from offshore installations. These vessels provide a comfortable and safe environment for personnel during transit.
Emergency response and rescue: In addition to their primary functions, PSVs are often equipped with firefighting and rescue equipment. They can assist in emergency situations, such as firefighting on offshore installations or providing support during search and rescue operations.
Standby and support: PSVs can be stationed near offshore installations to provide standby support. They are on standby in case of emergencies or to provide immediate assistance if required. PSVs can support various operations, including diving support, oil spill response, and medical evacuations.
AHTS duties include:
Anchor handling: A primary role of AHTS vessels is to handle the anchors of drilling rigs, production platforms, and other floating offshore structures. They have powerful winches and towing equipment capable of handling heavy anchor chains and anchors. AHTS vessels assist in deploying, retrieving, and moving anchors to secure the position of offshore installations.
Towing: AHTS vessels possess significant towing capabilities. They are used to tow drilling rigs, barges, and other floating structures to their designated locations. These vessels are equipped with powerful engines and thrusters to provide the necessary propulsion and maneuverability for towing operations.
Supply and cargo transport: Similar to Platform Supply Vessels (PSVs), AHTS vessels also have cargo holds and deck space to transport supplies, equipment, and consumables to offshore installations. They can deliver essential items such as drilling fluids, chemicals, spare parts, and provisions.
Standby and emergency response: AHTS vessels often provide standby support near offshore installations. They are ready to respond to emergency situations, provide assistance during equipment failures, or help with any urgent requirements. AHTS vessels may be equipped with firefighting equipment and have trained personnel to handle emergency response situations.
Rescue operations: AHTS vessels can be involved in search and rescue operations in case of emergencies, accidents, or personnel evacuations. They can provide support, such as assisting with evacuation procedures, deploying life-saving equipment, and coordinating with other rescue assets.
Crew Boat duties include:
Personnel transport: The primary purpose of crew boats is to transport personnel to and from offshore installations. They are designed with seating arrangements and amenities to ensure the comfort and safety of passengers during transit. Crew boats may have varying passenger capacities, depending on their size and design.
High-speed capabilities: Crew boats are typically built for high-speed operations to minimize travel time between shore and offshore installations. They are equipped with powerful engines that enable them to operate at higher speeds, ensuring efficient crew transfers and reducing transit times.
Safe boarding and disembarking: Crew boats are equipped with boarding areas and gangways that allow for safe embarkation and disembarkation of crew members. These vessels are designed to provide a stable platform during personnel transfers, even in challenging weather and sea conditions.
Versatile operations: In addition to personnel transport, crew boats may have additional functionalities to support offshore operations. They may be equipped with cargo space for transporting small equipment, tools, and supplies. Some crew boats are also capable of providing limited support for tasks such as light maintenance, survey work, or emergency response.
Crew comfort and safety: Crew boats prioritize the comfort and safety of the personnel they transport. They are equipped with seating arrangements, climate control systems, and safety equipment such as life jackets and life rafts. Crew boats adhere to relevant maritime regulations and safety standards to ensure the well-being of the crew members.
Marine logistics
Tidewater offers logistical support for offshore projects, including the management of vessel movements, cargo transportation, and coordination of personnel transfers. They ensure that the necessary resources are available at the right place and time, contributing to the smooth operation of offshore projects.
Offshore support services
Tidewater provides a range of support services to offshore facilities. This includes anchor handling, towing, mooring, and positioning services for drilling rigs, floating production units, and other offshore structures. They also offer maintenance and repair services, firefighting support, and emergency response capabilities.
Subsea services
Tidewater has expertise in subsea operations and provides support for subsea construction, inspection, repair, and maintenance projects. This includes deploying remotely operated vehicles (ROVs) for underwater inspections and performing subsea installations and interventions.
ROVs duties include:
Underwater inspections: ROVs are extensively used for visual inspections of underwater structures and equipment. They are equipped with cameras and lights that allow operators to remotely view and assess the condition of offshore infrastructure, pipelines, subsea installations, and underwater components.
Subsea construction and maintenance: ROVs play a crucial role in subsea construction projects. They assist in tasks such as pipeline installation, cable laying, and subsea equipment deployment. ROVs can manipulate specialized tools and perform various tasks required for construction, maintenance, and repair work in challenging underwater environments.
Scientific research and exploration: ROVs are employed in scientific research expeditions to explore and study marine ecosystems, underwater geology, and archaeological sites. They are equipped with sensors and scientific instruments to collect data, capture high-resolution imagery, and gather samples from the underwater environment.
Offshore energy operations: ROVs are used in the oil and gas industry for a range of activities. They can inspect and maintain offshore drilling rigs, underwater wellheads, and pipelines. ROVs are also involved in activities like rig support, platform installation, and subsea equipment installation for oil and gas production.
Search and recovery operations: ROVs are employed in search and recovery operations to locate and retrieve objects or wreckage from underwater locations. They can be used in salvage operations, underwater search missions, and recovery of equipment or vehicles lost at sea.
Conclusion
one of the biggest beneficiaries of the multi-year upcycle now beginning in the offshore oil and gas market.
-Evercore
TDW has been performing well lately and with recent moves has set itself up for success in the near future. I personally am extremely bullish on TDW and it in one of the key positions in my portfolio.
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Great call on this one! Made some $$ for me. Well done!