Trico Marine Services, Inc. is a provider of marine support vessels to the offshore oil and gas industry, operating primarily in international markets, with operations in the North Sea, West Africa, Mexico, Brazil and Southeast Asia, as well as in the Gulf of Mexico. With their fleet of vessels, Trico provides a broad range of services to offshore oil and gas operators, including transportation of drilling materials, supplies and crews to drilling rigs and other offshore facilities and towing of drilling rigs and equipment from one location to another.
Greg Williams, an analyst at Al Frank, believes that “Trico has significant flexibility with sale/leaseback or similar financing options in the event of any doomsday credit crunch. The subsea services fleet, which now accounts for the bulk of Trico’s revenue, is among the youngest in the industry at an average age of seven years,” notes Williams. “Contract renewals, even in the current environment, are still occurring at materially higher average day rates given the age of the contracts rolling off.”
Williams continued, “Given our favorable stance on liquidity and cash generation, as well as current multiples on trailing-12-month and next-12-month earnings below 4, we are buyers of TRMA up to $12.50.”
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