– Offshore support vessel operator with 174 vessels globally.
– Well-positioned play for a recovery in offshore activities – cleanest balance sheet of major competitors and one of the most modern fleets.
– Enormous operating leverage if industry economics return to 2014 levels.
– Tight vessel supply amidst growing demand and premium vessel fleet expected to shrink over the next few years given limited incoming new builds and age/emission restrictions from the clients.
– If 2014 day rates of $18.5k can be achieved with 90% utilization, TDW is set to generate $668m in EBITDA.
– At these earnings trades <2x EV/EBITDA.
Exp. gain: Multi-bagger over the next few years.
Full TDW write-up (free guest account required):