Tidewater Inc. · NYSE:TDW
Tidewater — Barclays CEO Energy-Power Conference 2023
40 slides from Tidewater's conference presentation, September 2023
Slide 1: Barclays CEO Energy-Power Conference
Barclays CEO Energy-Power Conference September 2023 tdw.com
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: 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: Operational and Financial Transformation
Operational and Financial Transformation LTM LTM Nominal Percentage TDW Guidance for June ‘21 June ‘23 Change Change 2023E Asset utilization Operational 78% 79% +1% - Improvements Active vessels 118 181 +63 53% LTM revenue $352m $787m +435m 124% ~$1,030m Financial LTM adjusted EBITDA Performance $26
Slide 7: Global Footprint in All Major Offshore Regions
Global Footprint in All Major Offshore Regions (1) Europe (51 OSVs) West Africa (49 OSVs) 197 OSVs(2) 3 2 4 9 7 11 56 16 6 39 3 Middle East (42 OSVs) Americas (37 OSVs) Asia Pacific (18 OSVs) 1 1 2 2 5 8 2 2 12 3 141 5 8 15 1 12 14 4 PSV AHTS Total Fleet >900 m2 700 – 900 m2 <700 m2 >16K BHP 8 - 16K
Slide 8: Fleet Overview
Fleet Overview (1) 141 ▪ Specially designed to supply offshore oil 17 ▪ Specially designed to transport as many and gas platforms as 150 personnel from shore bases to ▪ Transport variety of cargoes incl. fuel, offshore rigs, platforms and other water, drilling fluids, cement or mud in installations
Slide 9: 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 86 premier, high- PSV AHTS quality v
Slide 10: Leading OSV Operator with Largest High-Specification Fleet
Leading OSV Operator with Largest High-Specification Fleet OSV Count and Age Profile 197 200 18 16 14 150 136 Average Age (Years) 123 12 113 10 OSVs 100 84 8 60 56 6 52 50 42 41 41 32 4 2 - - (1) TDW Edison COSL Bourbon Vallianz Hornbeck P&O ADNOC Hai Duong Harvey Grupo Vroon Chouest Offshore Mariti
Slide 11: Blue Chip Customer Base
Blue Chip Customer Base Americas Europe / Med Vessel Mix Customers Vessel Mix Customers 7 3 7 14 16 41 Middle East West Africa Vessel Mix Customers Vessel Mix Customers 2 Strong credit Asia Pacific counterparties provide for 13 9 13 strong cash collections, Vessel Mix Customers with YTD 2023 DSO of
Slide 12: Historical Performance: Day Rate and Vessel Cash Margin
Historical Performance Day Rate and Vessel Cash Margin through Q2 2023 $25,000 60% 50% $20,000 Vessel Cash Margin (%) Day Rate in USD 40% $15,000 30% $10,000 20% $5,000 Significant improvement in day rates and cash margins, 10% approaching prior peak levels $0 0% Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2
Slide 13: 2. Market Overview
2. Market Overview tdw.com
Slide 14: Global Offshore Spending Overview
Global Offshore Spending Overview Comments Global Offshore Commitments by Water Depth ($bn) $140 Supportive oil price environment $120 ▪ Global oil demand continuing to show signs of recovery $100 towards pre-Covid levels and beyond $55 $80 $44 $39 ▪ Recent softness in commodity prices has not led t
Slide 15: 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 65% 65% Ac
Slide 16: 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 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Slide 17: Tidewater Leading Edge Contract Momentum
Tidewater Leading Edge Contract Momentum Q1 2023 Leading Edge Q2 2023 Leading Edge Vessel Class 2021 Day Rate 2022 Day Rate Term Contracts Term Contracts (1) >900m2 PSV $14,382 $16,604 $24,522 $29,958 700 - 900m2 PSV 11,323 13,889 22,547 24,438 <700m2 PSV 9,643 10,477 15,999 18,417 >16k BHP AHTS 16,
Slide 18: 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 398 11.7 381 17 21.2 95.7% 700 - 900m2 PSV 384 11.6 336 48 19.2 87.5% <700m2 PSV 1,135 24.2 761 374 32.9 67.0% PSV Sub-total 1,917 19.2
Slide 19: Laid-up PSV Population & Limitations to Reactivation
Laid-up PSV Population & Limitations to Reactivation Laid-up Vessels >900m2 Laid-up Vessels 700m2 - 900m2 ▪ Laid-up fleet population is # Vessel Name Age Location # Vessel Name Age Location # Vessel Name Age Location further limited by age of 1 AIAS 20 Greece 1 VICTOR 21 Greece 25 C-RULER 24 USA ves
Slide 20: Newbuild Economics Considerations
Newbuild Economics Considerations Newbuild Economics Require ~$38k/d Day Rate To Achieve its Cost of Capital Over 20 Year Useful Life $37k/day Assumptions $38k/day 39 18 yrs. Newbuild Cost ($m) $65 $39k/day Assumed day rate ($k/day) $38 Day rate ($k/day) 20 yrs. Opex rate ($k/day) $8.5 38 Drydocking
Slide 21: Shipyard Capacity & Orderbook Status
Shipyard Capacity & Orderbook Status Number Of ‘Active’ Shipyards (vessels of c.1,000+ GT) OSV Orderbook Development No., End Year No. units Despite improved orderbook Bulk of existing newbuild orders 1,200 1,000 50% cover at many major are legacy “stranded” assets ~1,000 shipbuilders, smaller shipy
Slide 22: Lack of Debt Availability: May Delay Newbuild Investment
Lack of Debt Availability: May Delay Newbuild Investment Leading Bank Maritime Portfolios 2008 Leading Bank Maritime Portfolios March 2023 0 10 20 30 40 50 60 0 10 20 30 40 50 60 HSH Nordbank BNP Paribas Commerzbank (ex-DSB) China Exim DnB NOR ICBC Leasing RBS KfW IPEX-Bank KfW IPEX-Bank BoCom Leasi
Slide 23: 3. Financials
3. Financials tdw.com
Slide 24: Historical and Projected Financial Profile
Historical and Projected Financial Profile Revenue ($m) EBITDA ($m) and Margin (%) 1,030 500 55% 412 400 45% 40% 648 26% 35% 300 487 19% 25% 407 397 371 14% 167 200 10% 9% 15% 68 74 100 41 35 5% 0 -5% (1) 2018 2019 2020 2021 2022 2023E 2018 2019 2020 2021 2022 2023E Gross debt and cash ($m) Equity R
Slide 25: Significant Earnings Leverage and Cash Generation
Significant Earnings Leverage and Cash Generation Unlevered Vessel-level Cash Flow Conversion (%) 86% 88% 90% 91% 92% 93% 94% 94% Vessel-level Cash Margin Q2 2023 Leading-Edge Composite 71% 1,400 Day Rates: $23.5k/day 69% 1,300 67% 1,200 65% 1,100 63% 1,000 60% 900 800 56% Pro Forma 2023E Run-rate A
Slide 26: 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 27: Capital Structure Overview
Capital Structure Overview TDW Debt Maturity Profile (1) (2) Comments New Bank Debt Senior Secured Notes ▪ Current capital structure features New Bank Debt Amortization New Senior Unsecured Notes staggered maturities with the bulk of principal repayment due 2026 or ($ in millions) $300 later ▪ Amort
Slide 28: 4. ESG at Tidewater
4. ESG at Tidewater tdw.com
Slide 29: 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 30: 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 31: Key Areas of Focus on Environment
Key Areas of Focus on Environment ▪ Environmental Management ▪ Responsible environmental stewardship to prevent pollution or environmental damage to the land, water and air ▪ Responsible Ship Recyling ▪ Safeguarding the environment and human health and safety are our priorities when recycling vessel
Slide 32: Key Areas of Focus on Social
Key Areas of Focus on Social ▪ People Tidewater has a long track record of supporting many organizations globally, including the ▪ Committed to providing the safest working following: environment and the highest level of training ▪ West Houston Assistance Ministries possible ▪ Aberdeen Seamen’s Miss
Slide 33: 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 34: Key Areas of Focus on Governance
Key Areas of Focus on Governance ▪ Corporate Governance and Ethics ▪ The Tidewater Board of Directors and Board committees have responsibility for strategic oversight of all company activities around the world, including sustainability ▪ Supply Chain Management ▪ Tidewater’s suppliers need to comply
Slide 35: 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 36: 5. Appendix
5. Appendix tdw.com
Slide 37: 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 38: 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 39: Non-GAAP Financial Measures – EBITDA and Adjusted EBITDA
Non-GAAP Financial Measures – EBITDA and Adjusted EBITDA Reconciliation Adjusted EBITDA 2022 – Q2 2023 YTD Q12022 Q22022 Q3 2022 Q4 2022 2022 Q1 2023 Q2 2023 2023 Net Income / (Loss) (12,271) (25,014) 4,910 10,182 (22,193) 10,816 21,928 32,744 Interest and other debt cost 4,175 4,284 4,391 4,339 17,
Slide 40: Thank you
‘|’ TIDEWATER Thank you tdw.com
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