Tidewater set to acquire Brazilian fleet in US$500M swoop

Wilson Sons Ultratug has a backlog of around US$447M, and many of its current vessel charters are “on day rates materially lower than current market day rates”, said Tidewater.

The US owner expects day rates and fleet earnings to improve when energy companies renew contracts.

“As of today, 21 of Wilson Sons Ultratug’s 22 vessels are active and working in Brazil, allowing Tidewater to commercialise this new asset base,” said Mr Kneen. “As we have surveyed the world and evaluated different regions, Brazil stands out as perhaps the most attractive to Tidewater,” he said.

“The scale of the offshore industry in Brazil, and in particular the offshore vessel industry, is one of the best in the world, and we believe the long-term fundamentals for this market are highly favourable.”

Brazil’s offshore industry growth is mainly down to energy majors and state-backed Petrobras developing huge oil and gas fields with networks of subsea infrastructure linked to floating production systems.

“Considering the long-term supply and demand for offshore vessels in Brazil, as well as the potential to introduce international tonnage, this transaction provides Tidewater with a compelling opportunity to capitalise on these dynamics,” said Mr Kneen. “Brazil stands out as perhaps the most attractive to Tidewater”.

“Assuming the transaction closes at the end of Q2 2026, we expect the Wilson Sons Ultratug business to generate approximately US$220M of revenue and generate a gross margin of about 58% over the first 12 months.”

In the Wilson Sons Ultratug transaction, Tidewater expects to incur US$14M in expenses and take on the company’s debt, which was around US$261M as of 30 September 2025.

“Following the successful refinancing transactions executed during Q3 2025, and now the Wilson Sons Ultratug acquisition, we have executed a series of steps that have positioned Tidewater as one of the world’s leading OSV operators with what we believe to be the strongest balance sheet in the industry,” said Mr Kneen.

“We will have a net leverage ratio below 1.0x, which, when combined with substantial near-term free cash generation, will provide for continued flexibility to pursue additional capital deployment opportunities.”

The Wilson Sons Ultratug transaction was unanimously approved by Tidewater’s board of directors and is expected to close in June 2026, subject to required regulatory approvals and other customary closing conditions, including approval from the Brazilian Antitrust Authority.

Riviera’s Offshore Support Journal Conference, Brazil, will be held in Rio de Janeiro on 13-14 October 2026. Use this link for more information and to register for the event.