Houston primarily based Tidewater Inc. (NYSE: TDW) revealed Tuesday that it has made a deal to buy 37 of Solstad Offshore ASA’s platform provide vessels (PSV) for $577 million.
The deal solidifies Tidewater because the main high-specification PSV operator, enhances the corporate’s place because the main world OSV operator with a world-class fleet, and creates the world’s largest hybrid fleet, Tidewater famous in an organization assertion posted on its web site. It additionally serves as a platform for money move technology, Tidewater outlined.
Tidewater mentioned it intends to fund the transaction by means of a mix of latest debt and money readily available. The deal, which the corporate highlighted is topic to customary regulatory approvals, was unanimously authorized by Tidewater’s board of administrators and is anticipated to shut within the second quarter of this 12 months, Tidewater revealed.
In a press release posted on its website, Solstad mentioned the “strategic transfer” reduces the corporate’s debt by roughly NOK 6 billion ($571.8 million) and added that it’s going to “significantly strengthen” Solstad’s stability sheet, debt service skill, and liquidity place.
Solstad additionally famous that the deal repositions the corporate “as one of many fundamental world house owners and operators of high-end AHTS and Subsea vessels which might be important to appreciate the power transition” and “additional allows Solstad to extend its presence within the renewable power phase”.
Within the assertion, Solstad mentioned its fleet will proceed to assist purchasers that function within the offshore power sector. Each offshore renewables and oil and fuel are predicted to see vital investments within the coming years, the corporate said.
“This settlement to amass 37 PSVs from Solstad Offshore marks yet one more essential milestone within the strengthening of Tidewater’s management place as we proceed to capitalize on the quickly bettering OSV market,” Quintin Kneen, Tidewater’s President and Chief Govt Officer, mentioned in an organization assertion.
“This acquisition additional solidifies Tidewater because the chief in massive, high-specification PSVs and because the new world chief in hybrid PSVs. These vessels make up the very best specification PSV fleet of its measurement wherever on this planet. All 37 vessels are at the moment energetic and are working all through the world, principally within the North Sea, but additionally in Brazil, Australia and West Africa,” Kneen added.
“Assuming the transaction closes on the finish of the second quarter, we’re updating our income steerage for 2023 to roughly $1.03 billion and our vessel working margin steerage for 2023 stays the identical at roughly 50.0 p.c,” Kneen continued.
“This transaction is simply the newest in a collection of transformative steps Tidewater has taken to drive long-term earnings and money move technology. We’re centered on bringing collectively the world’s greatest OSV fleets to create the most secure, most sustainable, most dependable, most worthwhile high-specification OSV fleet on this planet,” the Tidewater President went on to state.
Lars Peder Solstad, the CEO of Solstad Offshore, mentioned, “the sale of the PSVs represents a shift in our technique in a altering market”.
“The PSVs primarily assist the oil and fuel business, whereas the AHTSs and CSVs can service all offshore power sectors, together with oil and fuel and renewables. This transfer is due to this fact according to our technique of being a key enabler within the power transition. Additional, the transaction will give Solstad larger monetary leeway and a considerably improved debt and money place going ahead,” he added.
“Following the transaction, the core competence of future Solstad shall be even higher utilized to additional growing the CSV and AHTS segments, together with build up our service division and capitalizing on a stronger place within the renewable power market. The commonly larger margins for AHTS and CSVs will enable us to enhance our financials, strengthen our renewable power presence, and put us able to, over time, renew our fleet,” Solstad continued.
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