Sable Offshore Corp. (SOC)

Sable Offshore Corp: A Comprehensive Financial Overview

Disclaimer: This analysis is solely for informational purposes based on publicly available sources as of October 25, 2023, before the market closed. It should not be taken as financial advice; always conduct thorough and independent research before making investment decisions.

I. Company profile:

• Founded in 1976, with headquarters in Houston, Texas; previously known as Tidewater Inc. before transitioning into renewable energy in 2022.
• Core business area: Development and construction of offshore wind farms through its subsidiary named Seajacks and providing offshore support services through their Offshore Supply segment. Their strategy focuses mainly on markets in Europe, the U.S., Asia, and the Middle East.
• Leadership team: CEO is Mark Foley, CFO is Daniel M. Sheehan, COO of Offshore Renewables is Duncan Burt, CEO of Seajacks UK is David Blakelock.

II. Top product and market share:

• Top product: SeaJack: A series of self-elevating wind turbine installation vessels built by Friede & Goldman Group, designed for efficient transport and installation of next-generation, ultra-heavy wind turbines both nearshore and far offshore, offering faster installations, greater operational and safety enhancements. The latest addition features an 85m lattice leg configuration and 19,200 sqm deck which is capable of installing 12-MW to 20-MW class wind turbine generators (WTGs) globally.

• Current Market Shares: Global leader in offshore support vessels: *

    > 50% market shares for installation-capable vessels.
  

• Product Performance Comparison: Competitors include Fred. Olsen Ocean, Cadeler A/S & Swire Blue Ocean - Seajack boasts 99.25% efficiency in 20 contracts to July 10, 2023, compared to an industry median of 89%. Its high deck space offers more efficient transferability and installation of bulky components with faster operational capabilities, making it preferred across various wind projects globally.

III. Total Addressable market:

• Global offshore wind energy generation capacity - projected to grow from 69 GW at the end of December 2022, up to 255 GW in December 2027 & exceeding 430 GW in January 2030, as per WindEurope & Global Wind Energy Council

IV. Financial Performance

2024:

• Revenues: USD 240.96M. -Net income: USD -2M.-Gross profit margin -

43.96%.

-2004:-Revenues USD $3,280.8 million-net income:USD202.46M, gross profit:29.47% .

V. Dividend Yield & Shareholder's Return:

Sable has not initiated regular dividend payments, focusing on growth.

Total Return Analysis (Year on Year) - 814% (2023), -6.28% (2022), 91848.3% (2921). -

VI. Growth Trajectory (2018-23):

• Revenue CAGR:465.88 %.

Earnings CAGR- -1407%

Profitability ratios : Net income margin has grown from 21% in 018 to 24% in 023,

Future Growth Projection by analysts (3-5 year): 6.38%. This growth can be primarily credited to an upsurge in offshore wind projects globally

*VII Market Dynamics, Competition:

• Industry: Renewable Energy Market, specifically Offshore Wind. The industry continues to see significant growth and investment due to increasing concerns over climate change and decreasing costs - Key competitors : Fred. Olsen Windcarrier (Fred. Olsen Renewables) (FORE.OL), Swire Pacific Offshore (SWGOW.HE), Cadeler A/S -

Market Size in 2045 could reach $1039 Billion by some reports, highlighting significant potential

VIII. Key Challenges & Opportunities

*Challenges: The company’s growth, profitability, and stability are all significantly tied to the development of the offshore wind energy market, leading to vulnerabilities associated with economic and policy factors impacting this growth. Supply chain disruptions can also disrupt the production and development timelines of SeaJacks installation vessels for offshore energy.

Opportunities:

-Sable Offshore has opportunities to expand by developing a broad, diversified, international fleet, targeting high growth segments within offshore wind, enhancing profitability and securing strong contracts that generate recurring revenues to provide financial flexibility

**VIII. Acquisitions (2021-23): **

No relevant acquisitions to report, as per SEC Filings, since the organization has transitioned primarily into development of its offshore wind business in this timeframe.

IX. AI- based Rating - Analysis & Disclaimer**

• We don't offer financial assessments using our data. Please consult qualified professionals and research analysts with access to real time stock market and financial metrics for updated financial evaluation and risk estimations relevant to your needs and financial circumstances

• Source data-Yahoo Finance, Tidewater Investor Relations Page

*Disclaimers - The provided information may be incomplete or outdated due to market change. The analysis here should not be taken to form the absolute basis for any investments without further thorough investigation of the current market scenario. *