Is Tidewater (TDW) Positioned to Benefit from the Rising Energy Security Crisis?

1 week ago 6

Soumya Eswaran

Mon, June 22, 2026 astatine 7:09 AM CDT 4 min read

Third Avenue Management, an concern absorption institution based successful New York City, released its "Third Avenue Value Fund" first-quarter 2026 capitalist letter. A transcript of the missive tin beryllium downloaded here. The money returned 7.28% successful the archetypal 4th compared to the MSCI World Index (Net) astatine -3.57%, and the MSCI World Value Index (Net) astatine 1.18%. It had a beardown three- and five-year annualized instrumentality of 16.26% and 15.38%. The missive noted that earlier the U.S. and Israeli subject run successful Iran, non-U.S. equities outperformed U.S. equities, worth strategies performed well, and the U.S. dollar weakened. The Fund excelled then, but the consequent outbreak of warfare led to a important driblet successful equities. While the Fund performed amended successful the erstwhile environment. The steadfast aims to physique a portfolio of undervalued, well-capitalized businesses susceptible of gathering shareholder wealthiness implicit time. The value-oriented attack has invested mostly extracurricular the U.S. and successful smaller companies successful caller years. During the quarter, planetary markets deteriorated, creating opportunities for the Fund to adhd to existing holdings and initiate caller positions. In addition, delight cheque the Strategy's apical 5 holdings to cognize its champion picks successful 2026.

In its first-quarter 2026 capitalist letter, Third Avenue Value Fund highlighted Tidewater Inc. (NYSE:TDW). Tidewater Inc. (NYSE:TDW) provides offshore enactment vessels and marine enactment services to the offshore vigor industry. On June 18, 2026, Tidewater Inc. (NYSE:TDW) closed astatine $64.67 per share. One-month instrumentality of Tidewater Inc. (NYSE:TDW) was -18.44%, and its shares gained 39.08% implicit the past 52 weeks. Tidewater Inc. (NYSE:TDW) has a marketplace capitalization of $3.22 billion.

Third Avenue Value Fund stated the pursuing regarding Tidewater Inc. (NYSE:TDW) successful its Q1 2026 capitalist letter:

"In the Fund's Q4 2025 shareholder letter, we explained that the Fund's vigor manufacture vulnerability lies mostly wrong offshore vigor services businesses, Tidewater Inc. (NYSE:TDW), Valaris and Subsea 7. The Fund besides holds 1 upstream lipid and state producer, Harbour Energy. We went connected to explicate that "During the quarter, and 2025 much broadly, the Fund's lipid and state related businesses mostly did not execute well." In penning these words, we did not needfully expect that each of these investments would beryllium among the largest contributors to Fund show successful the pursuing quarter. Counterintuitively, astir each of the show produced by Valaris and Tidewater occurred anterior to the Feb 28th onset of subject enactment successful Iran. In some cases, assets conversion enactment enabled by precise well-capitalized equilibrium sheets, played a ample role. Our 3rd offshore work concern Subsea 7 is besides going done the process of being acquired successful an industry-consolidating transaction that was announced successful July 2025

Separately, during the quarter, Tidewater agreed to acquisition Wilson Sons Ultratug, an proprietor of 22 mostly Brazilian-built level proviso vessels operating successful Brazil. The all-cash transaction volition springiness Tidewater a overmuch larger beingness successful Brazil, making it 1 of the largest operators successful 1 of the world's astir charismatic deepwater markets. This marks the 3rd important consolidating acquisition conducted by Tidewater during our ownership, each of which was enabled by an magnitude of fiscal flexibility and firepower that is unrivaled wrong the level proviso vas industry…" (Click present to work the afloat text)

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