Ite so you autists aren’t gonna understand this so get Claude ready
Am gonna talk about acquisition first then fundamentals
Tidewater inc (an offshore oil drilling support vessel fleet) is about to purchase Wilson sons ultratug offshore for 500mil which guidance projects an additional 220mil revenue w 58% gross margin
Not only is this incredibly cheap, with that acquisition they’re taking on 240mil preferential rate long dated debt bc subsidized developmental loans from Brazil to Wilson sons which will drastically lower their cost of capital and should add a few points to their margin. Not to mention that the deal is in full cash but somehow credit accretive which is nigh on unheard of. Will add 22 result ships to their fleet and increase Brazil fleet from 6-28. Maybe you get the deal by this point.
Tdw is already the largest fleet of offshore oil supply and maintenance ships, uniquely suited to benefit from cooling Iran tensions. 38 new offshore oil rigs are projected to be installed ‘27-‘28. If you’re looking to balance your book away from ai this is the zenith of that risk reduction. That’s all. Risks include crude oil tanking but shouldn’t fall so much once Iran cools off. This is relative value play pure and simple.
Have about 60k in this alr up 19%