Tidewater (TDW) announces $300 million new build program
NEW ORLEANS--(BUSINESS WIRE)--Jan. 20, 2000--Tidewater Inc. (NYSE: TDW - news) announced today that it is preparing to embark on a modest new-build program, estimated to cost in the range of $300 million.
William C. O'Malley, Tidewater's chairman, president and chief executive officer, stated that this new-build initiative will be ``directed to the highest end of the market and would include very large Anchor Handling Towing Supply vessels and large Platform Supply vessels capable of working anywhere in the world.'
Continuing, O'Malley said: ``These new vessels will be designed to cover operational capabilities the Company does not presently possess. They are being built so that Tidewater can meet and service all the needs of its customers.'
The Company expects to fund this program from its current cash balances which exceed $150 million, its projected cash flow and its existing $200 million line of credit. Currently, the Company is debt-free.
``We believe the timing of this program is advantageous in that we anticipate that shipyard prices, delivery schedules and the quality of craftsmanship will be better than what we have witnessed over the past few years,' O'Malley said, adding: ``Deliveries on these new vessels are expected to commence in about two years, and I am confident that these new vessels will, upon their completion, service the needs of our customers which we currently are unable to fulfill.'
biz.yahoo.com
Slider: "Sell FGH on the spikes & rotate into UFAB if you like Fabs imho" Message 12629134
Comment: The trend is UP and heading HIGHER. Profit taking will provide aperiodic buying opportunities (as FGH heads higher)for those who missed the initial surge. Headed for double digits likely within 10 trading days.
Old backlog has been extended as a result of the Ocean Rig settlement and the additional $43 million added to those two contracts along with the $199 million in new business announced a few days ago are sure signs business is picking up. I don't know if FGH will benefit from the TDW announcement; but, if not FGH, WHO?
FGH WILL move HIGHER TODAY! (a range of 8 to 9 is NOT unlikely)
SargeK |
