Tidewater Inc. · NYSE:TDW
Tidewater — Shareholder Meeting (July 2009)
37 slides from Tidewater's shareholder meeting presentation, Jul 15, 2009
Slide 1: Fiscal 2009 Annual Shareholders Meeting
FISCAL 2009 ANNUAL SHAREHOLDERS MEETING July 9, 2009
Slide 2: Forward-Looking Statements
TIDEWATER 601 Poydras Street, Suite 1900 New Orleans, LA 70130 FORWARD-LOOKING STATEMENTS In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Company notes that certain statements set forth in this presentation provide other than historical info
Slide 3: A Reminder of Our Workplace
A REMINDER OF OUR WORKPLACE
Slide 4: A Reminder of Our Workplace
A REMINDER OF OUR WORKPLACE
Slide 5: Safety Record Rivals Leading Companies
SAFETY RECORD RIVALS LEADING COMPANIES T OTAL R ECORDABLE I NCIDENT R ATES 1.00 0.75 0.50 0.25 0.00 2002 2003 2004 2005 2006 2007 2008 TIDEWATER DOW CHEMICAL DUPONT EXXON/MOBIL BP C ALENDAR Y EARS
Slide 6: Tidewater Today
TIDEWATER TODAY Solid safety record – One LTA and .18 TRIR in FY’09 Unmatched (and growing) global footprint – 50+ years internationally and working in over 60 countries Entire fleet earning solid returns – Third consecutive year of record earnings (19.3% Return on Average Equity over the last three
Slide 7: Many Unanswered Questions at This Time
MANY UNANSWERED QUESTIONS AT THIS TIME Impacts of current financial crisis and global recession Rig and vessel construction backlogs Financial health of shipyards and competitor Future oil and gas prices E&P spending Obama administration’s approach to energy and tax policy Vessel utilization and pri
Slide 8: Our Strategy
OUR STRATEGY (Not much has changed!) Culture is a competitive advantage Safety-oriented Deep knowledge of customer needs Aggressive management of operating and capital costs Maintain maximum financial flexibility to deal with uncertainties Selectively deploy cash to renew fleet with expanded capabil
Slide 9: International Strength
TIDEWATER TODAY INTERNATIONAL STRENGTH (as of 3/31/09) Active Vessel Count By Region (excludes stacked vessels) North America 25 (7%) Central/South America 98 (28%) Europe/M.E. 37 (11%) Far East 51 (15%) West Africa 137(39%) 93% International 7% Domestic (vs. 65% International and 35% Domestic ten y
Slide 10: Current Revenue Mix
CURRENT REVENUE MIX Quality of Customer Base Others Super Majors 37% 40% NOC's 23% Our top 10 customers (5 Super Majors, 4 NOC’s and one large independent) currently account for 60% of our revenue
Slide 11: Rigs Contracted by Our Top Customers
RIGS CONTRACTED BY OUR TOP 10 CUSTOMERS (Estimated as of March 2009) Jackups Semi Drillships March 2009 working rigs 338 154 36 Working for top 10 customers 94 * 76 20 28% 49% 56% * PEMEX alone has 31 of the 94 jackups Source: ODS-Petrodata and Tidewater
Slide 12: Vessel Population by Owner
VESSEL POPULATION BY OWNER (Includes AHTS and PSV’s only) Estimated as of March 2009 Tidewater Competitor #1 Competitor #2 Competitor #3 Competitor #4 Competitor # 5 Avg. All Others (1,535 total vessels for 300+ owners) Source: ODS-Petrodata and Tidewater
Slide 13: Global Vessel Fleet by Age
GLOBAL VESSEL FLEET BY AGE (Includes AHTS and PSV’s only) Estimated as of March 2009 As of 3/31/09, there are approximately 688 additional AHTS and PSV’s under construction Number of Vessels Built (AHTS & PSV) Of the total 2,195 vessels, 344 vessels are 30+ yrs old, another 520 are 25-29 yrs old, an
Slide 14: Growing Industry's Largest Fleet
GROWING INDUSTRY’S LARGEST FLEET Ability to support continued fleet renewal and growth Current environment may present opportunities to utilize our financial strength Funding with internal cash flow and available credit Always weigh build vs. buy criteria Making progress with fleet average age Striv
Slide 15: Largest New Fleet in the Industry
LARGEST NEW FLEET IN THE INDUSTRY… Vessel Commitments Jan. ‘00 – March ‘09 Vessel Count Estimated Cost AHTS 70 $1,259m PSV’s 72 $1,355m Crewboats & Tugs 65 $275m TOTALS:(1) 207 $2,889m (2) At 3/31/09, 142 new vessels in fleet with 5.2 year average age (1) Includes vessels added to the fleet financed
Slide 16: ...and Counting
…AND COUNTING Our approach to managing construction Vessels Under Construction As of March 31, 2009 Building vessels Count worldwide AHTS 16 Due diligence focused PSV 25 on yards Crew and Tug 5 Tidewater staff supervise on site Total 46 Estimated delivery schedule – 26 in FY’ 10, 7 in FY’ 11, 11 in
Slide 17: Fiscal 2009 Vessel Deliveries
FISCAL 2009 VESSEL DELIVERIES Built at seven different international shipyards Total cost of $232 million Count AHTS PSV 3 Crew and Tug 4 Total 17
Slide 18: A Few of Our New Vessels
A FEW of OUR NEW VESSELS
Slide 19: Largest New Fleet in the Industry
LARGEST NEW FLEET IN THE INDUSTRY (as of 3/31/09) Out with the Old - In with the New 188 New Vessels 357 Sold 81 Scrapped Active Fleet Dispositions Net vessels added to the fleet since January 2000, including 46 vessels under construction at 3/31/09. * Since 4/01/05, 38 vessels have been scrapped an
Slide 20: Improving Average Age of Tidewater Fleet
IMPROVING AVERAGE AGE OF TIDEWATER FLEET 3/31/2004 Actual 3/31/2005 Actual 3/31/2006 Actual 3/31/2007 Actual 3/31/2008 Actual 12/31/2008 Actual 12/31/2009 Estimate 12/31/2010 Estimate 12/31/2011 Estimate 12/31/2012 Estimate Total Vessel Count Vessels Avg.Age Assumptions: 1) Average 45 vessel disposa
Slide 21: Fiscal 2009 Financial Report
FISCAL 2009 FINANCIAL REPORT
Slide 22: Significant Earnings Growth
SIGNIFICANT EARNINGS GROWTH 50% Five-Year Compounded Annual Earnings Growth Rate Adjusted EPS** $8.00 $6.00 $4.00 $2.00 $0.00 $1.03 $1.78 $3.33 $5.94 $6.39 $7.89 Fiscal 2004 Fiscal 2005 Fiscal 2006 Fiscal 2007 Fiscal 2008 Fiscal 2009 FY End Stock Price $28.13 $38.86 $55.23 $58.58 $55.11 $37.13 ** EP
Slide 23: Selected Financial Highlights
SELECTED FINANCIAL HIGHLIGHTS ($ in Thousands, Except Per Share Data) Years Ended 3/31/09 3/31/08 Revenues $1,390,835 $1,270,171 Net Earnings $406,898 $348,763 Earnings Per Share $7.89 $6.39 Net Cash from $526,435 $489,491 Operations Capital Expenditures $473,675 $354,022 12/31/08 quarterly EPS and
Slide 24: Strong Balance Sheet
STRONG BALANCE SHEET ($ in Millions) March 2009 March 2008 Cash $251 $270 Stockholders’ Equity $2,245 $1,930 Long-term Debt* $300 $300 Net Debt* to Total Cap 2.1% 1.5% + $550 million of Available Liquidity at 3/31/09 (Cash plus $300m Revolver) * Excludes $10.1 million at March 31, 2008, of total cap
Slide 25: Vessel Revenue & Gross Margin
VESSEL REVENUE & GROSS MARGIN Gross Margin % Vessel Revenue (a) Zapata acquisition (b) O.I.L. acquisition Gross margin is defined as vessel revenue less vessel operating costs Revenue ($ millions) (a) (b) Gross Margin % $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 FY91 FY93 FY95 FY97 FY99 FY01
Slide 26: Fleet Cash Operating Margins
FLEET CASH OPERATING MARGINS OPERATING MARGIN (in millions) $700 $600 $500 $400 $300 $200 $100 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 38.6% 37.6% 46.5% 41.9% 36.9% 38.7% 49.1% 54.6% 51.9% 51.3% Fiscal Years OPERATING MARGIN (%) New Vessels Traditional Vessels Total Fleet Operating Marg
Slide 27: Returning Value to Shareholders
RETURNING VALUE TO SHAREHOLDERS SHARE REPURCHASE PROGRAM Current repurchase authority of $200 MM Since 8/05, have repurchased 9.5 MM shares for $516.2 MM SHARE REPURCHASE PROGRAM Recent dividend declaration increased from $.15/share/quarter to $.25/share/quarter One of eight OSX companies paying div
Slide 28: Comparison of Cumulative Five Year Total Stockholder Return
COMPARISON of CUMULATIVE FIVE YEAR TOTAL STOCKHOLDER RETURN $350 $300 $250 $200 $150 $100 $50 $0 2004 2005 2006 2007 2008 2009 Tidewater Inc. S&P 500 Peer Group Peer group is the “Value Line Oilfield Services Group Index”
Slide 29: Comparative Capitalization
COMPARATIVE CAPITALIZATION Net Debt = ST + LT Debt Less Cash Equity = Share price (in USD) at 3/31 times shares outstanding at 3/31 Balance Sheet data as of March 31, 2009, except GBB (12/31/08) ($ millions) 4,000 3,500 3,000 2,500 2,000 1,500 1,000 TDW CKH GLF HOS TRMA GBB 100.0% 80.0% 60.0% 40.0%
Slide 30: Market Valuation Based on Current FY Estimates
MARKET VALUATION BASED ON CURRENT FY ESTIMATES Enterprise Value / EBITDA Price / Earnings Source: The Jefferies Rig & OSV Weekly report dated July 6, 2009 14.0 12.0 10.0 8.0 6.0 4.0 2.0 TEV/EBITDA Price/Earnings TDW GLF HOS GBB
Slide 31: Tidewater Stock Ownership by Investment Style
TIDEWATER STOCK OWNERSHIP BY INVESTMENT STYLE (as of March 31, 2009) Source: Thomson Reuters Index 18% Growth 13% GARP 19% Specialty 5% Income 6% Value 39%
Slide 32: Financial Strategy
FINANCIAL STRATEGY Focused on Long Term Shareholder Value Maintain Financial Strength Renew Fleet Deliver Results
Slide 33: Fiscal 2009 Annual Shareholders Meeting
FISCAL 2009 ANNUAL SHAREHOLDERS MEETING July 9, 2009
Slide 34: The William C. O'Malley
The “William C. O’Malley”
Slide 35: A Change in Safety Culture... and Results
A CHANGE in SAFETY CULTURE…. and RESULTS LTAs TRIR Number of LTA’s TRIR 160 140 120 100 80 60 40 20 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2.5 2 1.5 1 0.5 0 Fiscal Years
Slide 36: Vessel Revenue & Gross Margin
VESSEL REVENUE & GROSS MARGIN Gross Margin % Vessel Revenue Revenue ($ millions) (a) (b) Gross Margin % $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 FY79 FY81 FY83 FY85 FY87 FY89 FY91 FY93 FY95 FY97 FY99 FY01 FY03 FY05 FY07 FY09 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% (a) Zapata acquisition (
Slide 37: William C. O'Malley, Tidewater and Industry Leader
William C. O’Malley Tidewater and Industry Leader