Tidewater To Buy 37 Platform Supply Vessels For $577 Mln; Lifts FY23 Revenue Outlook Above Market

(RTTNews) - Tidewater Inc. (TDW), a petroleum service provider, said on Tuesday that it has inked a deal to buy Norwegian offshore shipping firm Solstad Offshore ASA's (SOFF.OL) 37 platform supply vessels for $577 million.

The deal was unanimously approved by Tidewater's Board of Directors and is expected to close in the second quarter of 2023.

In addition, the company has raised its fiscal 2023 revenue outlook, above analysts' estimates.

For full year, Tidewater now expects revenue of around $1.03 billion, higher than its previous outlook of around $900 million. Three analysts, on average, polled by Thomson Reuters expect the firm to record revenue of $825.37 million, for the year.

Quintin Kneen, Tidewater's CEO, said: "This transaction is just the latest in a series of transformative steps Tidewater has taken to drive long-term earnings and cash flow generation."

All 37 vessels are currently active and are working throughout the world, mainly in the North Sea, Brazil, Australia, and West Africa.

The company expects to fund the transaction through a combination of new debt and cash on hand. It has received commitments from a group of financial institutions, led by DNB Bank ASA, for a three-year senior secured credit facility of up to $325 million.