*Global Offshore turnaround visible
Turnaround possible company has good assets, re structured debt, strong promoter. Transformation from low base to high base generally will impact Balance Sheet
Eq 24.73 crs Market cap Rs 144 crs fleet now 7 ( earlier 14) Assets Value Rs 650-700 crs Debt Rs 131 crs payable in next 12-14 months
Global offshore once was in talks with Bourbon France for complete sell of the co at Rs 2500 3000 crs fell apart. That time co had reached market cap of Rs 2200 crs. Aditya Garware is the owner and he is from Garware family which own Garware Hitech Films and Garware Technical Fibres ltd
All the fleets were Norwegian which are world class and command good price. These vessels can work even in rough see of AFRICA. few vessels were earlier deployed by worlds best co’s including Shell.
international vessel market collapsed as oil started falling.
This is a typical industry where idle vessels require huge maintenance cost which kept bleeding from 2016.
First signs of bottoming though seen in late 2018 the excess supply of vessels did not change fortunes.
Then hit the pandemic.
As a result the company collapsed.
They sold almost 7 vessels to clear it major debt and remain floated. The same can be seen in the balancesheet.
It is still a going concern
Firming of oil prices and big gap of almost 4 to 5 years have prevented manufacturing of new vessels at Netherland.
Firming of oil prices revived the demand of supply vessels many fold.
*The charter rates have shot up whopping from 6000 to 20000 which is visible from competitor Seamec’s disclosures.
You can do the math.
There are only few companies in the world like Bourbon, Shell and GLOBAL offshore which own Havyard Leirvick Norway made vessels which are costliest in the world and avg age of global offshore vessels is 7 yrs. Seamec vessels are 30yrs.
It is penny stock with visible turnaround
Thoughts,ideas, feedback always welcome.