Listening to the radio this morning and I heard several boats talking about the Harvey/ACO buyout finally happened. Same thing being said by everyone around Fourchon. Anyone got the inside track to confirm?
Yea I hear it was a done deal, just a little paperwork to get finished up and it looks like it got done. The DP 1 boats will be sold off…maybe that’s why the “action” on the Hornbeck DP1 boats dried up.
Whoever theorized about Harvey posturing for a big payday via IPO is looking like a genius at this point. What else could explain some of the moves they are making? Just showing “market share” on paper.
So now will there be an Infant Guidry of Galliano?
[QUOTE=ryanwood86;119775]So now will there be an Infant Guidry of Galliano?[/QUOTE]
my girlfriend has no idea why I am laughing, I tried to explain it, still looking at me funny. Only in the oil patch.
so I guess there is no reason to apply for employment with ACO unless you just hold a 100 ton
[QUOTE=ryanwood86;119775]So now will there be an Infant Guidry of Galliano?[/QUOTE]I’m looking forward to seeing “St. Joseph the Hustler” coming up the channel.
Inevitable! Then they will slash dayrates as the fat cats on the board will refuse to pay someone with a HS diploma excess of six figures when that money could be going in their pockets instead. Joe boss baby! Here’s to hoping that wont happen but strange things can happen when you’re suddenly public.
[QUOTE=ryanwood86;119769]Yea I hear it was a done deal, just a little paperwork to get finished up and it looks like it got done. The DP 1 boats will be sold off…maybe that’s why the “action” on the Hornbeck DP1 boats dried up.[/QUOTE]
After talking to various sources the 200’ DP-1 market has seen a decrease in day rates lately. They’re down to the $10,500-13,000/day range whereas HOS was getting much higher for the vessels recently. In my opinion they were only taking jobs with super high day rates to have good numbers to show potential buyers. Day rates for mariners has affected this class of vessel more than anything else over the last year or so. They need 1600T guys, DP Certs, STCW, etc… but you’re pulling from the same pool of guys that are capable of working on a much bigger vessels for $800/day plus. To be profitable the licensed officers on these boats need to be in the $500/day range.
I think its only a matter of time, middle of next year, that Harvey Gulf goes public. Too much money being spent on acquisitions, dock facilities and new builds for that size company.
I’m not saying they wont go public, but look how big Chouest has become, & still privately owned… Of course Gary has not gone to the extent Shane has on “vessel” aquisitions. But there are many variables to consider.
I don’t believe Gary used investment firms to the extent Shane is either. I know of some limited deals that got him out of a hard spot but if I’m reading the releases right, Harvey is growing primarily of outside investors?
Apples to oranges. Harvey is highly leveraged by outside investors; no reason to build market share and take on all that debt unless public is the goal.
Some rumours buzzing suggest that Harvey has also acquired a Norwegian ship-owner. Can anyone confirm this?
Confirmed…
New Orleans-based Harvey Gulf International Marine confirmed rumors Thursday that it has acquired all assets and business of Abdon Callais Offshore. The purchase includes all 48 offshore supply vessels in the ACO fleet, of which 4 are currently under construction.
With its roots in the Callais family tracing back to 1945 and under the later leadership of Harold J. Callais followed by his sons, ACO has long been recognized in the industry as a high quality marine transportation company providing multiple sized, technologically advanced OSVs and related services to oil & gas exploration & production companies and service providers primarily working in the U.S. Gulf of Mexico market.
ACO has one of the youngest and largest fleets operating in the U.S. Gulf of Mexico with a focus on providing a wide variety of cargo and personnel transportation services to both shallow water and deepwater locations. Of ACO’s 48 vessel fleet, 92% is dynamically positioned (DP1 or DP2) and 58% is of 205 feet in length and longer.
Harvey Gulf says the acquisition expands the company’s vessel classes and allows them to broaden its service offering to customers in the U.S. Gulf of Mexico.
The transaction is expected to close in Q4 2013.
Founded in 1955, Harvey Gulf International Marine is a marine transportation company that specializes in towing drilling rigs and providing offshore supply and multi-purpose support vessels for deepwater operations in the U.S. Gulf of Mexico.
Why are these companies selling out down there? Are they getting over the top $ for the equipment or something?
[QUOTE=rshrew;120191]Why are these companies selling out down there? Are they getting over the top $ for the equipment or something?[/QUOTE]
The money is right and the outlook is bright; might as well sell in ACO’s perspective. Harvey is looking at the Chevron contracts and relationship that ACO had, but mostly on the shelf, and as Chevron moves to deepwater - it’s a good play for Harvey Gulf deepwater vessels as Chevron brings those prospects on-line in the coming years.
Spot on, aside from the obvious increase in market share, acquiring the vessels and vessel managers that already have a relationship with chevron is a good move. Chevron seems to be ready to spring forward in the deep water market. When BP recently lagged on renewing contracts on several boats at Chouest, chevron snapped them up.
[QUOTE=MGA;120043]Some rumours buzzing suggest that Harvey has also acquired a Norwegian ship-owner. Can anyone confirm this?[/QUOTE]
No ship operator with Jones Act vessels can be majority owned by any non US citizen including corporations.
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[QUOTE=rshrew;120191]Why are these companies selling out down there? Are they getting over the top $ for the equipment or something?[/QUOTE]
The dollar figures being used to acquire these companies must be astronomical. Remember that HGIM is backed by major league Wall Street Money!
[QUOTE=c.captain;120204]No ship operator with Jones Act vessels can be majority owned by any non US citizen including corporations.
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The dollar figures being used to acquire these companies must be astronomical. Remember that HGIM is backed by major league Wall Street Money![/QUOTE]
Yes, but I guess they can still own a foreign entity (like Tidewater owns Troms Offshore)…? I heard a figure of USD 500 million, but uncertain whether this is incl/excl debt.
And sells six of the boats already.
I know some guys that aren’t going to be happy.