Tidewater to dispose of nearly 50 vessels this year
Offshore supply vessel operator Tidewater plans to dispose of 46 vessels in an attempt to improve its balance sheet. Despite improving market conditions and a 20% hike in revenue, the company recorded a net loss of USD 141.7 million in 2019.
Revenue for the year amounted to USD 486.5 million reflecting an increase of 20% compared to 2018. For 2020, Tidewater wants to maintain that income but with fewer ships. The company wants to shed its “lower specification” tonnage and improve the active utilization percentage of its remaining vessels. The OSV-operator currently manages a fleet of 223 vessels, of which 62 vessels are in lay-up.
“Tidewater has taken a series of strategic actions to streamline our fleet and increase our efficiency across the entire organization. Our anticipated revenue for 2020 is similar to our total revenue for 2019 but with fewer ships, as we continue to high-grade the active fleet”, said Tidewater’s CEO Quintin Kneen.
He added that the market conditions around the world continue to improve. “As of now, we have USD 440 million of backlog for 2020, which is over 90% of the revenue we recorded for the prior year”, he said.
In addition to improving the utilization of its vessels, Tidewater will also lower its annual spend on dry docks and vessel modifications by over USD 20 million as compared to 2019.
With the actions, Tidewater wants to create a “nimble, efficient and scalable platform” that will establish the company as the “most profitable, most investable offshore vessel company in the world.”