Tidewater's (TDW) GVA Deal With Caterpillar to Boost Uptime
Tidewater Inc. TDW, a leading offshore support services provider, has recently inked a Global Value Agreement (GVA) with renowned engine manufacturer Caterpillar CAT. This strategic partnership is set to bolster Tidewater's global fleet of vessels with comprehensive parts, service, monitoring, and maintenance support. The primary goal is to drive down the total cost of ownership, increasing vessel uptime, and improve the availability of Tidewater's extensive global fleet of over 200 offshore support vessels (OSVs).
Enhancing Fleet Efficiency
Tidewater, with its legacy of providing marine support services to the offshore energy sector, operates across more than 60 countries. Caterpillar's fleet management services, a core component of the GVA, will significantly boost the availability of Tidewater's vessels.
Under this agreement, each of Tidewater's vessels will benefit from a dedicated Caterpillar fleet manager. This expert will focus on optimizing maintenance intervals, thereby improving service planning and ensuring swift availability of parts.
However, the partnership between Tidewater and Caterpillar goes beyond traditional support. Predictive analytics and round-the-clock digital monitoring of CAT engines will enable Tidewater to track vital parameters like asset locations, operating hours, fuel levels, and overall utilization. This data-driven approach will result in engine efficiency improvements and cost reductions.
This, in turn, ensures the timely transportation of crews and supplies, efficient towing and anchoring of mobile rigs, support to offshore construction projects, and a wide array of specialized marine services.
Management Perspectives
Both managements hailed the pact and emphasized the significance of this partnership. According to them, the GVA is in tune with Caterpillar and Tidewater's vision to provide top-notch support and outstanding service for the global OSV fleet of the former. In other words, Tidewater vessels are expected to attain superior operational performance through Catrpillar’s fleet management, digital tools, and world-class dealer network.
Zacks Rank & Stock Picks
Tidewater carries a Zacks Rank #3 (Hold) at present. Meanwhile, investors interested in the energy sector might consider the operators mentioned below. These companies currently sport a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Solaris Oilfield Infrastructure SOI: It beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters at an average of 18.8%.
SOI is valued at around $442.8 million. Solaris Oilfield Infrastructure has seen its shares move up 8.4% in a year.
CVR Energy CVI: It beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters. Over the past 60 days, CVR Energy saw the Zacks Consensus Estimate for 2023 move up 38.8%.
CVR Energy is valued at around $3.4 billion. CVI has seen its shares gain 12.8% in a year.
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Caterpillar Inc. (CAT) : Free Stock Analysis Report
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