I wrote about my speculative bets in Offshore Support Vessel (OSV) companies in Which Offshore Support Vessel Companies Will Survive? This is a defensive way of betting on OSV companies, as I look for companies that have low debts, low impact from asset impairment, low probability of receivable build-up/ impairment as well as no bonds maturing in the short term. Actually, there is another way of betting on the OSV companies, which is to look at the potential revenue streams the companies have in the future. As discussed in Oil & Gas, Show Me the Orders!, orders are a leading indicator of how well the companies are likely to do in the next few years.
How do you know the the potential revenue streams of OSV companies? OSV companies charter out their vessels to other companies. It is a form of operating lease. Hence, quite a no. of OSV …