Joint collaboration with financial consultancy firm on the restructuring of a leading OSV contractor, serving as joint advisors to the lenders
Evaluate the market environment in which the OSV contractor operates, providing views on its core markets, competitive intensity/threats, anticipated utilisation and dayrate projections
Business Review and Assessment, providing an independent view on anticipated financial performance going forward
Westwood’s Approach & Analysis
Bottom up approach employed in the market sizing of core drivers, providing a view on greenfield EPCI and IRM requirements
Comprehensive landscaping, identifying key threats, while also ascertaining strategic intent of peers based on M&A and sector expansion efforts
Assessment of business plan, encompassing an independent dayrate sensitivity analysis on a vessel by vessel basis, based on the building blocks of its core markets, whilst factoring historical rate/utilisation performance
Evaluation of the potential for realising financial projections based on Westwood’s proprietary sensitivity analysis
The Outcome & Benefit
Leveraging Westwood’s subsea expertise and our partners restructuring experience, the combined team was able to provide an informed and independent business review to the Lenders
The diligence report identified key commercial risks such as the reliance on select customers and recent consolidation of its customer group, potentially limiting contractual opportunities in the midterm
In light of the surplus vessel capacity in the market, adopting a “charter- in” strategy for potential new additions should be a focus, unless a long-term IRM frame agreement can be secured
