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TDW and offshore industry recap
I shared my take on Tidewater (NYSE:TDW) a week ago and why I am bullish on the offshore industry. It is time to analyze the 3Q23 results published last Monday. Before I proceed, let`s
Tidewater: The Undisputed OSV Leader Delivered Again
Summary
- Tidewater's 3Q23 results showed significant growth in day rates and revenues, affirming my positive outlook for the company.
- TDW composite fleet day rates YoY increased from $13,600 to $17,865. The revenue for the same period grew from $190 million to $295 million.
- Net income for 1Q23 was $10.7 million, while 3Q23 was $26.1 million, or 143% growth in net income. The day rates grew for the same period from $14,624 to $17,865.
- I expect sector rotation to continue, and TDW stock might fall further. I will take a further decline as an opportunity to add more exposure to TDW.
- In my previous article, I gave a buy rating. Given the better stock price, I give a strong buy rating.
I am a voracious reader and self-taught investor. In the past, I was an accountant in the maritime industry. Now, I am a happy retiree passionate about writing and financial markets. As the kids are grown up, I have time to pursue my endeavors: growing my portfolio and developing my writing skills. You will find enticing investment ideas in KD Research that are not limited by region or sector. However, all of them share a few common things: • They are overlooked. • They offer asymmetric risk rewards. • They pay dividends with juicy yields. When I filter for new ideas, I look for at least two of the three to be presented. As an investor and analyst, I prefer shipping and mining enterprises. However, I will dive deep without hesitation if I spot a company from another industry suitable for my investment style. My analytical approach is focused on fundamentals. Do not forget I was an accountant, and I love scrambling numbers. Nevertheless, the fundamentals are not good enough to time the market. I add technical analysis to avoid being too early or too late for the party. I am excited to join Seeking Alpha contributors and share my thoughts with SA's thriving investor community. I am associated with the existing author Banks and Beyond.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of TDW either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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