Tidewater Inc. · NYSE:TDW
Tidewater — Q3 2024 Earnings Presentation
36 slides from Tidewater's earnings presentation, Nov 8, 2024
Slide 1: Q3 2024 Investor Presentation
Q3 2024 Investor Presentation August 2024 tdw.com
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation contains “forward-looking statements” within the meaning of the U.S. federal securities laws – that is, any statements that are not historical facts. Such statements often contain words such as “expect,” “believe,” “think,” “anticipate,” “predict,” “plan,
Slide 3: Agenda
Agenda 1. Company Overview 2. Market Overview 3. Financials 4. Sustainability at Tidewater 5. Appendix tdw.com
Slide 4: 1. Company Overview
1. Company Overview tdw.com
Slide 5: Tidewater – The Premier Global OSV Fleet
Tidewater – The Premier Global OSV Fleet Company Overview Today Global Footprint in All Major Offshore Regions The largest offshore support vessel operator in the world Strong international footprint with a presence in every major market Vessels provide support to offshore E&P and wind activit
Slide 6: Global Footprint in All Major Offshore Regions
Global Footprint in All Major Offshore Regions (1) Europe (51 OSVs) West Africa (46 OSVs) 192 OSVs(2) 1 2 3 8 9 11 53 4 40 16 3 Middle East (41 OSVs) Americas (33 OSVs) Asia Pacific (21 OSVs) 1 2 1 8 2 15 10 3 139 2 9 5 3 12 5 12 5 PSV AHTS Total Fleet >900 m2 700 – 900 m2 <700 m2 >16K BHP 8 - 16K B
Slide 7: Fleet Overview
Fleet Overview (1) 139 Specially designed to supply offshore oil 16 Specially designed to transport as many and gas platforms, drilling rigs and as 150 personnel from shore bases to infrastructure offshore rigs, platforms and other Transport variety of cargoes incl. fuel, installations at high
Slide 8: Fleet Evolution – High-Specification Vessel Focus
Fleet Evolution – High-Specification Vessel Focus TDW has meticulously high-graded its fleet by focusing on high-quality assets, large vessels routinely in high demand and value accretive acquisitions Current OSV Fleet Count (1) High-Specification OSV Fleet Size PSV AHTS TDW added 84 premier, high-
Slide 9: Leading OSV Operator with Largest High-Specification Fleet
Leading OSV Operator with Largest High-Specification Fleet OSV Count and Age Profile 200 192 20 180 18 160 16 140 14 127 Average Age (Years) 117 120 108 12 100 10 OSVs 84 80 8 67 65 60 54 6 46 45 42 38 40 4 20 2 0 0 Chouest COSL Bourbon Vallianz Hornbeck ADNOC P&O Britoil CBO Hai Duong Harvey Gulf M
Slide 10: Blue Chip Customer Base
Blue Chip Customer Base Americas Europe / Med Vessel Mix Customers Vessel Mix Customers 1 7 8 12 14 42 Middle East West Africa Vessel Mix Customers Strong credit Vessel Mix Customers 1 counterparties Asia Pacific 6 provide for strong 13 13 Vessel Mix Customers cash collections, with Q2 2024 DSO of ~
Slide 11: Historical Performance: Day Rate and Gross Margin
Historical Performance Day Rate and Gross Margin through Q2 2024 25,000 60% 50% 20,000 40% 15,000 Gross Margin (%) Day Rate in USD 30% 10,000 20% 5,000 Significant improvement in day 10% rates and cash margins - 0% Jul-10 Nov-10 Jul-11 Nov-11 Jul-12 Nov-12 Jul-13 Nov-13 Jul-14 Nov-14 Jul-15 Nov-15 J
Slide 12: 2. Market Overview
2. Market Overview tdw.com
Slide 13: Global Offshore Spending Overview
Global Offshore Spending Overview Commentary Global Offshore Commitments by Water Depth ($bn) Supportive oil price environment $140 $115 $117 $120 $112 The longevity of the international and offshore upcycle $102 $106 $100 continues to provide growth and margin expansion opportunities $84 $49 $57
Slide 14: Global OSV Utilization
Global OSV Utilization Utilization, Global, AHTS >4,000 BHP Utilization, Global, PSV >1,000 dwt No. of OSVs Utilization, % No. of OSVs Utilization, % 2,000 100 % 1,800 100 % 1,800 95% 1,600 95% 1,600 90% 90% 1,400 1,400 85% 85% 1,200 1,200 80% 80% 1,000 1,000 75% 75% 800 800 70% 70% 600 600 No. Laid
Slide 15: OSV Day Rate Progression
OSV Day Rate Progression PSV TC Rates AHTS TC Rates 50,000 70,000 60,000 40,000 50,000 30,000 40,000 30,000 20,000 20,000 10,000 10,000 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Slide 16: Tidewater Leading Edge Contract Momentum
Tidewater Leading Edge Contract Momentum Q3 2023 Leading Q4 2023 Leading Q1 2024 Leading Q2 2024 Leading 2021 Day Vessel Class 2022 Day Rate Edge Term Edge Term Edge Term Edge Term Rate Contracts Contracts Contracts Contracts >900m2 PSV $14,382 $16,604 $30,802 $31,118 $32,520 $35,172 700 - 900m2 PSV
Slide 17: Global Fleet Profile by Vessel Type
Global Fleet Profile by Vessel Type Average Age – Vessel Class Number of Vessels Average Age (yrs) Active (1) Laid-up Active as % of Total Laid-up (yrs) >900m2 PSV 394 12.9 382 12 21.3 97.0% 700 - 900m2 PSV 401 12.4 357 44 20.8 89.0% <700m2 PSV 1,129 25.2 763 366 34.6 67.6% PSV Sub-total 1,924 20.0
Slide 18: Newbuild Economics Considerations
Newbuild Economics Considerations Newbuild Economics Require a Through-cycle Average Day Rate of ~$44k/d To Achieve “NPV Zero” Based on 20 Year Useful Life Operating Assumptions $43k/day $44k/day Newbuild Cost ($m) $65 45 18 yrs. $45k/day Assumed day rate ($k/day) $44 Opex rate ($k/day) $10.4 Three-
Slide 19: Shipyard Capacity & Orderbook Status
Shipyard Capacity & Orderbook Status Number Of ‘Active’ Shipyards (vessels of c.1,000+ GT) OSV Orderbook Development No., End Year No. units % of Fleet Despite improved orderbook 1,200 45% 1,200 cover at many major ~1,000 shipbuilders, smaller shipyards continuing to leave the newbuild 40% 1,000 mar
Slide 20: Lack of Debt Availability: May Delay Newbuild Investment
Lack of Debt Availability: May Delay Newbuild Investment Leading Bank Maritime Portfolios 2008 Leading Bank Maritime Portfolios March 2023 0 10 20 30 40 50 60 0 10 20 30 40 50 60 HSH Nordbank BNP Paribas Commerzbank (ex-DSB) China Exim DnB NOR ICBC Leasing RBS KfW IPEX-Bank KfW IPEX-Bank BoCom Leasi
Slide 21: Global & Active OSV Fleet Attrition
Global & Active OSV Fleet Attrition Global OSV Fleet – Vessels <25 Years Old Active OSV Fleet Attrition – Vessels To Age Beyond 25 Years No. of OSVs No. of OSVs 4,000 0 Total fleet of existing OSVs <25 years old to contract by 3,500 approximately 54% by 2036 (50) 3,000 (100) 2,500 (150) 2,000 (200)
Slide 22: 3. Financials
3. Financials tdw.com
Slide 23: Historical and Projected Financial Profile
Historical and Projected Financial Profile Revenue ($m) EBITDA ($m) and Margin (%) 1,400 700 60% 607 600 50% 1,010 500 387 43% 40% 648 400 26% 38% 19% 30% 407 487 300 397 371 14% 167 20% 200 10% 9% 74 10% 100 41 68 35 0 0% (1) (2) 2018 2019 2020 2021 2022 2023E 2024E 2018 2019 2020 2021 2022 2023E 2
Slide 24: Significant Earnings Leverage and Cash Generation
Significant Earnings Leverage and Cash Generation Unlevered Vessel-level Cash Flow Conversion (%) 87% 88% 90% 91% 92% 92% 93% 93% Gross Margin Q2 2024 Leading-Edge Composite 71% Day Rates: $28.8k/day 69% 1,500 68% 1,400 66% 1,300 64% 1,200 62% 1,100 60% 1,000 57% 900 800 1,559 700 1,449 1,340 600 1,
Slide 25: Fleet Focus – Drydocks and Vessel Vintage
Fleet Focus – Drydocks and Vessel Vintage Pro Forma Historical Drydock Spend(1) Tidewater OSV Vintage Distribution(2) $ in millions Drydock spend driven primarily by the age of a vessel and its required 5-year docking schedule Significant variability in drydock spend can be seen from non-uniform Sig
Slide 26: Debt Capital Structure Overview
Debt Capital Structure Overview TDW Debt Maturity Profile (1) (2) Comments Bank Debt Senior Secured Notes Current capital structure features Bank Debt Amortization Senior Unsecured Notes staggered maturities with the bulk of principal repayment due 2026 or ($ in millions) later $350 $300 Amortiz
Slide 27: 4. ESG at Tidewater
4. ESG at Tidewater tdw.com
Slide 28: Commitment to ESG principles
Commitment to ESG principles Environment Social Governance Environmental Management and Providing the safest working Corporate Governance and Ethics pollution reduction environment possible Continuous health and safety Responsible Ship Recyling Supply Chain Management training and education Emission
Slide 29: Sustainability Report
Sustainability Report Tidewater’s fourth annual comprehensive and stand- alone sustainability report presenting the company’s ESG performance, along with its management approach to material sustainability topics now available on the company website: https://www.tdw.com/sustainability/sustainabilit
Slide 30: Safety Leadership Remains a First Priority
Safety Leadership Remains a First Priority Total Recordable Case Frequency 2014 - 2023 TRCF = (LTIs + RECs) x 1,000,000 / Exposure Hours 3.00 1.00 1.00 2.00 0.0 2.00 0.0 2.50 0.61 0.69 TRCF 10 Year Average TRCF CY 2023 2.00 1.50 1.00 0.50 0.00 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Tidewa
Slide 31: Summary
Summary 1 Largest global OSV operator 2 Attractive market fundamentals supporting meaningful cash flow generation capability 3 Strong global footprint and increased exposure to blue-chip operators 4 Full cycle financial resilience with strong balance sheet and liquidity 5 Increased scale with a plat
Slide 32: 5. Appendix
5. Appendix tdw.com
Slide 33: Non-GAAP Financial Measures – EBITDA and Adjusted EBITDA Reconciliation
Non-GAAP Financial Measures – EBITDA and Adjusted EBITDA Reconciliation Adjusted EBITDA 2018 – 2019 Q12018 Q22018 Q32018 Q42018 2018 Q12019 Q22019 Q32019 Q42019 2019 Net Loss (39,029) (11,182) (31,183) (90,377) (171,771) (21,286) (15,553) (43,806) (60,574) (141,219) Interest and other debt cost 7,59
Slide 34: Non-GAAP Financial Measures – EBITDA and Adjusted EBITDA Reconciliation
Non-GAAP Financial Measures – EBITDA and Adjusted EBITDA Reconciliation Adjusted EBITDA 2020 – 2021 Q12020 Q22020 Q32020 Q42020 2020 Q12021 Q22021 Q32021 Q42021 2021 Net Loss (18,524) (110,664) (38,081) (29,427) (196,696) (35,527) (29,647) (26,407) (38,079) (129,660) Interest and other debt cost 6,1
Slide 35: Non-GAAP Financial Measures – EBITDA and Adjusted EBITDA Reconciliation
Non-GAAP Financial Measures – EBITDA and Adjusted EBITDA Reconciliation Adjusted EBITDA 2022 – 2024 YTD Q1 2022 Q2 2022 Q3 2022 Q4 2022 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Q1 2024 Q2 2024 1H 2024 Net Income / (Loss) (12,271) (25,014) 4,910 10,182 (22,193) 10,816 21,928 25,549 37,328 95,621 46,
Slide 36: Thank you
‘|’ TIDEWATER Thank you tdw.com