Welcome to part #3 of my Tegus sponsored deep dive into the offshore space. You can find part #1 of the deep dive here (I’ll refer you to that post for more background on why I’m interested in the space, the aims for the deep dive, etc.) and
Agree that corporate governance is a concern but after all the drama and shake up, management team and board is at a much more stable state. Management is also forced to allocate excess cash/ capital to deleveraging.
My main issue is the lack of investor communications/ progress w deleveraging etc.
Thanks for this. Thoroughly enjoyed the 3 articles. My takeaway - this belongs to Buffett's 'Too Hard' pile. You'll have to deal with supply (capex cycles, cashflows, contracting, utilisation rates), and demand (policies/politics, oil demand)...too hard...maybe an oil royalty company to gain exposure to this space would be much easier with less risk
Thank you for the write up. Have you taken a look at Gulf Marine Services listed on the LSE?
Thanks,
Josh
I have not; i just flipped through the pres and it certianly looks interesting, but i'd need to find a way to get comfy with corporate governance here
I have a short summary of its background here if you are interested :). It’s not a full blown analysis so please don’t expect too much!
https://open.substack.com/pub/joshzkq/p/gulf-marine-services-gms?r=6hkta&utm_medium=ios&utm_campaign=post
Agree that corporate governance is a concern but after all the drama and shake up, management team and board is at a much more stable state. Management is also forced to allocate excess cash/ capital to deleveraging.
My main issue is the lack of investor communications/ progress w deleveraging etc.
Happy to exchange thoughts here!
Thanks for this. Thoroughly enjoyed the 3 articles. My takeaway - this belongs to Buffett's 'Too Hard' pile. You'll have to deal with supply (capex cycles, cashflows, contracting, utilisation rates), and demand (policies/politics, oil demand)...too hard...maybe an oil royalty company to gain exposure to this space would be much easier with less risk