Tidewater Inc. · NYSE:TDW
Tidewater — Raymond James 45th Annual Institutional Investor Conference 2024
36 slides from Tidewater's conference presentation, March 2024
Slide 1: Raymond James 45th Annual Institutional Investor Conference
Raymond James 45th Annual Institutional Investor Conference March 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 (47 OSVs) 195 OSVs(2) 2 2 4 9 8 11 54 4 16 39 3 Middle East (42 OSVs) Americas (36 OSVs) Asia Pacific (19 OSVs) 1 1 2 2 5 8 2 2 12 3 141 8 5 15 1 12 13 5 PSV AHTS Total Fleet >900 m2 700 – 900 m2 <700 m2 >16K BHP 8 - 16K
Slide 7: Fleet Overview
Fleet Overview (1) 141 ▪ 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 OSV Fleet Count(1) High-Specification OSV Fleet Size TDW added 85 premier, high- PSV AHTS quality v
Slide 9: Leading OSV Operator with Largest High-Specification Fleet
Leading OSV Operator with Largest High-Specification Fleet OSV Count and Age Profile 200 195 20 180 18 160 16 Average Age (Years) 140 126 14 116 120 109 12 OSVs 100 84 10 80 65 8 56 60 50 6 44 42 42 41 40 4 20 2 0 0 TDW Edison COSL Bourbon Vallianz Hornbeck ADNOC P&O Britoil Hai Duong Grupo Harvey C
Slide 10: Blue Chip Customer Base
Blue Chip Customer Base Americas Europe / Med Vessel Mix Customers Vessel Mix Customers 7 3 7 14 15 41 Middle East West Africa Vessel Mix Customers Vessel Mix Customers 2 Strong credit Asia Pacific counterparties provide for 7 13 strong cash collections, 13 Vessel Mix Customers with Q4 2023 DSO of ~
Slide 11: Historical Performance
Historical Performance Day Rate and Gross Margin through Q4 2023 $25,000 60% 50% $20,000 Gross Margin (%) Day Rate in USD 40% $15,000 30% $10,000 20% $5,000 Significant improvement in day 10% rates and cash margins $0 0% Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016 Q1 2017 Q1 2018 Q1 2019
Slide 12: 2. Market Overview
2. Market Overview tdw.com
Slide 13: Global Offshore Spending Overview
Global Offshore Spending Overview Comments Global Offshore Commitments by Water Depth ($bn) $140 Supportive oil price environment $120 ▪ Global oil demand continuing to show signs of recovery $100 towards pre-Covid levels and beyond $45 $80 $44 $49 ▪ Recent volatility in commodity prices has not led
Slide 14: Global OSV Utilization
Global OSV Utilization Utilisation, Global, AHTS >4,000 BHP Utilisation, Global, PSV >1,000 dwt No. of OSVs Utilisation, % No. of OSVs Utilisation, % 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 u
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 Q1 2023 Leading Q2 2023 Leading Q3 2023 Leading Q4 2023 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 $24,522 $29,958 $30,802 $31,118 700 - 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 403 12.3 389 14 19.5 96.5% 700 - 900m2 PSV 392 12.1 349 43 21.4 89.0% <700m2 PSV 1,128 24.8 760 368 33.9 67.4% PSV Sub-total 1,923 19.7
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) $10.4 Three-
Slide 19: Shipyard Capacity & Orderbook Status
Shipyard Capacity & Orderbook Status Number Of ‘Active’ Shipyards (vessels of c.1,000+ GT) OSV Orderbook Development No., End Year No. units Despite improved orderbook Bulk of existing newbuild orders 1,200 1,000 50% cover at many major are legacy “stranded” assets ~1,000 shipbuilders, smaller shipy
Slide 20: Lack of Debt Availability: May Delay Newbuild Investment
Lack of Debt Availability: May Delay Newbuild Investment Leading Bank Maritime Portfolios 2008 Leading Bank Maritime Portfolios March 2023 0 10 20 30 40 50 60 0 10 20 30 40 50 60 HSH Nordbank BNP Paribas Commerzbank (ex-DSB) China Exim DnB NOR ICBC Leasing RBS KfW IPEX-Bank KfW IPEX-Bank BoCom Leasi
Slide 21: Global & Active OSV Fleet Attrition
Global & Active OSV Fleet Attrition Global OSV Fleet – Vessels <25 Years Old Active OSV Fleet Attrition – Vessels To Age Beyond 25 Years No. of OSVs No. of OSVs 4,000 0 Total fleet of existing OSVs <25 years old to contract by 3,500 approximately 44% by 2035 (50) 3,000 (100) 2,500 (150) 2,000 (200)
Slide 22: 3. Financials
3. Financials tdw.com
Slide 23: Historical and Projected Financial Profile
Historical and Projected Financial Profile Revenue ($m) EBITDA ($m) and Margin (%) 1,425 700 635 60% 600 50% 1,010 45% 500 387 38% 40% 648 400 26% 19% 30% 407 487 300 397 371 14% 167 20% 200 10% 9% 41 68 74 10% 100 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% 89% 90% 91% 92% 92% 93% 94% Gross Margin Q4 2023 Leading-Edge Composite 70% 1,500 Day Rates: $29.5k/day 69% 1,400 67% 1,300 65% 1,200 63% 1,100 61% 1,000 58% 900 55% 800 700 1,500 1,390 600 1,281 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 third 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/sustainability
Slide 30: Safety Leadership Remains a First Priority
Safety Leadership Remains a First Priority Total Recordable Case Frequency 2012-2022 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 0.64 0.79 TDW 10 Year Average TDW CY 2022 2.00 1.50 1.00 0.50 0.00 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022* Tidewater
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
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
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
Non-GAAP Financial Measures – EBITDA and Adjusted EBITDA Reconciliation Adjusted EBITDA 2022 – 2023 Q12022 Q22022 Q3 2022 Q4 2022 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Net Income / (Loss) (12,271) (25,014) 4,910 10,182 (22,193) 10,816 21,928 25,549 37,328 95,621 Interest and other debt cost 4,17
Slide 36: Thank you
‘|’ TIDEWATER Thank you tdw.com
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