Tidewater Inc. · NYSE:TDW
Tidewater — Q3 2020 Earnings Presentation
16 slides from Tidewater's earnings presentation, Nov 6, 2020
Slide 1: Company Overview
Company Overview November 2020
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Tidewater Inc. (the “Company”) notes that certain statements set forth in this presentation contain certain forward-looking statements which reflect our current view with
Slide 3: 3Q 2020 Update
3Q 2020 Update Pivoting in response to industry downturn, generating Free Cash Flow Mitigating the Realigning the Quarterly Challenges Business Performance • As crude oil demand stays low, • Acceleration of fleet and • Free Cash Flow positive for 3Q, pressure on the OSV market footprint rationalizat
Slide 4: Navigating Current Challenges
Navigating Current Challenges Mariner Crew Changes • COVID-19 pandemic-related logistical restrictions have severely limited crew changes causing substantially extended rotations • Continuing to move crew as quickly and safely as possible; some restrictions lifting and allowing more flights Market D
Slide 5: Exercising Safety and Responsibility, Onshore and Offshore
Exercising Safety and Responsibility, Onshore and Offshore Safety Environmental Social Governance • Safety of our employees is • Focused on improving • Investment in community • Board-level commitment our highest priority; we operational efficiency and betterment in the areas in to ESG consistently
Slide 6: Low Leverage with a Modern Fleet
Low Leverage with a Modern Fleet Market Cap and Leverage 1 Tidewater Fleet NBV ($mm)2 $300 120% $1,000 99% 99% 99% 94% 93% $250 88% 100% $800 $708 Active Stacked $200 80% $600 $150 22% 60% Market Cap. (US$mm) $400 $100 40% Net Debt / Cap. $50 20% $200 $101 $5 $0 0% $0 Tidewater Siem SEACOR Eidesvik
Slide 7: Actively Streamlining the Fleet
Actively Streamlining the Fleet Changes to Tidewater Fleet End Q3 2019 to End Q3 2020 Fleet Optimization Continues Deepwater Active Towing Supply Stacked 300 Other AHFS 250 220 31 13% 200 60 170 11% 150 24 43 24% 27% 170 100 Vessels 160 62% 50 103 63% 0 as of 9/30/2019 Disposed as of 9/30/2020 Activ
Slide 8: Active Fleet Status
Active Fleet Status Active Fleet 103 North Sea & Vessels Americas Mediterranean Avg. Age 2 10.5 Years 8 17 17 Middle East & Active Utilization West Africa Asia Pacific 0 78.2% 9 14 14 15 7 Deepwater Towing/Supply Other All statistics as of September 30, 2020. © Tidewater Inc. | Company Overview 8
Slide 9: The Strongest Balance Sheet in the Offshore Sector
The Strongest Balance Sheet in the Offshore Sector Condensed Balance Sheet1 Schedule of Principal Payments Assets $mm Liabilities & Equity $mm $500 Cash and equivalents 192,243 Current portion of debt 9,576 Other current assets 248,572 Other current liabilties 153,718 $400 Current assets 440,815 Cur
Slide 10: Levered to E&P Growth Markets
Levered to E&P Growth Markets E&P Purchases by Country 2020-2025 ($mm) Brazil Pandemic Plus Downturn Drove Activity Slump Norway § E&P companies reduced their budgets to suit the challenged macro USA Saudi Arabia § On average, 2020 capex budgets were revised down by 25% Mexico § Cuts caused a drop i
Slide 11: Industry Supply Dynamics are Improving
Industry Supply Dynamics are Improving 20.6 Older, Lower Spec Vessels will not Return from Cold Stack § Stacked vessels will not be reactivated without contracts, but stacked vessels do not get contracts avg. age of PSV/AHTS OSV Fleet & Orderbook Viable Under cold stacked vessels § Average cold stac
Slide 12: Older Cold Stacked Vessels May Not Return to Service
Older Cold Stacked Vessels May Not Return to Service Cold Stacked Vessels by Year of Build Stacked since § There are up to ~700 demolition candidates Before 2015 2016 2017 2018 2019 2020 due to age and length of time stacked 20+ 116 74 69 54 41 22 15 § ~38% of all stacked vessels are 20+ years old a
Slide 13: Majority of Vessels on Order Unlikely to Deliver
Majority of Vessels on Order Unlikely to Deliver OSV Newbuild Deliveries PSV Fleet Size and Growth (2007 to 2019) 1,800 14% 172 Norway, 2 Others, 9 Brazil, 3 1,600 12% U.S., 3 Vietnam, 6 Vessels listed as 1,400 under construction 10% or on order 1,200 Number of vessels India, 24 90% 8% >90% YoY grow
Slide 14: A Highly Fragmented Market Remains a Challenge
A Highly Fragmented Market Remains a Challenge 1% Owners by OSV Fleet Size 1% (inc. Tidewater) 2% 9% <10 10-25 25-50 50-100 87% >100 Fewer than 10 vessels in fleet Source: IHS Markit, Tidewater (November 2020) © Tidewater Inc. | Company Overview 14
Slide 15: The World's Leading OSV Operating Platform
The World’s Leading OSV Operating Platform Tidewater Fleet Distribution1 Most experienced, efficient and safe operator 170 active vessels § Effectively created the workboat industry when established in 1955 globally § Industry leader in safe operations, core OSV efficiency focus & lean operations §
Slide 16: TDW
TDW LISTED NYSE