Tidewater Inc. announced a definitive agreement to purchase 37 of Solstad Offshore platform supply vessels for $577 million.
Strategic Rationale:
• Solidifies Tidewater as the leading high-specification PSV operator: The addition of 37 PSVs makes Tidewater the largest owner and operator of high-specification PSVs, which is the OSV vessel class that has demonstrated the highest utilization through all market cycles
• Enhances Tidewater’s position as the leading global OSV operator with a world-class fleet: Tidewater’s total fleet of 228 vessels is among the youngest in the world, and features a modern fleet of 199 PSVs and AHTS with an average age of 11.3 years, 65% of which are high-specification vessels
• Creates the world’s largest hybrid fleet: The combined fleet will include 14 battery hybrid and 2 LNG power capable vessels and will be able to leverage Tidewater’s emissions reduction and fuel optimization technology, further demonstrating Tidewater’s commitment to sustainability
• Platform for cash flow generation: The acquired vessels have total backlog of approximately $620 million (including contract option periods) and significant potential cash flow generation upside as maturing contracts roll onto higher market day rates
Based in Houston, Tidewater is the leading provider of larger Offshore Service Vessels to the global energy industry.
Solstad Offshore is a Norwegian offshore service and supply ship shipping company that operates a fleet of construction service vessels, anchor handling tug supply vessels and platform supply vessels.
(Source: Tidewater/Solstad)