The Assignment / Client’s Problem

  • 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