Tidewater Inc. · NYSE:TDW
Tidewater — Q3 2024 Earnings Presentation
33 slides from Tidewater's earnings presentation, November 2024
Slide 1: November 2024 Investor Presentation
November 2024 Investor Presentation tdw.com
Slide 2: 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 3: Global Footprint in All Major Offshore Regions
Global Footprint in All Major Offshore Regions (1) Europe (51 OSVs) West Africa (49 OSVs) 192 OSVs(2) 1 2 3 8 9 13 53 4 17 40 3 Middle East (41 OSVs) Americas (31 OSVs) Asia Pacific (20 OSVs) 1 2 1 1 2 15 8 2 10 139 3 9 5 12 5 11 5 PSV AHTS Total Fleet >900 m2 700 – 900 m2 <700 m2 >16K BHP 8 - 16K B
Slide 4: 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 5: 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 6: 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 Average Age (Years) 140 14 122 120 112 12 105 OSVs 100 10 82 80 8 65 60 49 6 46 45 44 41 40 29 4 20 2 0 0 Chouest COSL Bourbon Vallianz Hornbeck ADNOC P&O CBO Hai Duong Britoil Harvey Gulf M
Slide 7: Blue Chip Customer Base
Blue Chip Customer Base Americas Europe / Med Vessel Mix Customers Vessel Mix Customers 1 7 8 12 12 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 Q3 2024 DSO of ~
Slide 8: Historical Performance: Day Rate and Gross Margin
Historical Performance Day Rate and Gross Margin through Q3 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% Day Rate Gross Margin High-Graded Fleet and Significant Synergy Realizations Have Sup
Slide 9: 2. Market Overview
‘|’ TIDEWATER 2. Market Overview
Slide 10: Global Offshore Spending Overview
Global Offshore Spending Overview Commentary Global Offshore Commitments by Water Depth ($bn) Supportive oil price environment $160 $143 $140 The long-term outlook for the international and offshore markets $120 $106 $119 $34 $102 $102 remains strong, while near-term visibility into the pace and $
Slide 11: 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 U
Slide 12: 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 13: Tidewater Leading Edge Contract Momentum
Tidewater Leading Edge Contract Momentum Q3’24 Q4 2023 Leading Q1 2024 Leading Q2 2024 Leading Q3 2024 Leading Vessel Class Tidewater 2022 Day Rate Edge Term Edge Term Edge Term Edge Term Vessel Count Contracts Contracts Contracts Contracts >900m2 PSV 69 $16,604 $31,118 $32,520 $35,172 $37,283 700 -
Slide 14: 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 397 12.9 384 13 21.0 96.7% 700 - 900m2 PSV 408 12.4 358 50 19.8 87.7% <700m2 PSV 739 20.6 536 203 28.2 72.5% PSV Sub-total 1,544 16.4 1,
Slide 15: 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) $10.4 Three-
Slide 16: Shipyard Capacity & Orderbook Status
Shipyard Capacity & Orderbook Status Number Of ‘Active’ Shipyards (vessels of c.1,000+ GT) OSV Orderbook Development No., End Year No. units % of Fleet Despite improved orderbook 1,200 45% 1,200 cover at many major ~1,000 shipbuilders, smaller shipyards 40% continuing to leave the newbuild 1,000 mar
Slide 17: Lack of Debt Availability: May Delay Newbuild Investment
Lack of Debt Availability: May Delay Newbuild Investment Leading Bank Maritime Portfolios 2008 Leading Bank Maritime Portfolios March 2023 0 10 20 30 40 50 60 0 10 20 30 40 50 60 HSH Nordbank BNP Paribas Commerzbank (ex-DSB) China Exim DnB NOR ICBC Leasing RBS KfW IPEX-Bank KfW IPEX-Bank BoCom Leasi
Slide 18: Global & Active OSV Fleet Attrition
Global & Active OSV Fleet Attrition Global OSV Fleet – Vessels <25 Years Old Active OSV Fleet Attrition – Vessels To Age Beyond 25 Years No. of OSVs No. of OSVs 3,500 0 Total fleet of existing OSVs <25 years old to contract by 3,000 approximately 50% by 2036 (50) 2,500 (100) 2,000 (150) 1,500 Of ves
Slide 19: 3. Financials
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Slide 20: Historical and Projected Financial Profile
Historical and Projected Financial Profile Revenue ($m) EBITDA ($m) and Margin (%) 1,340 535 38% 1,010 40% 26% 387 648 19% 407 487 14% 397 371 10% 9% 167 68 74 41 35 (1) (2) 2018 2019 2020 2021 2022 2023 2024E 2018 2019 2020 2021 2022 2023 2024E Gross debt and cash ($m) Equity Ratio Net Debt / EBITD
Slide 21: Significant Cash Generation via Day Rate Normalization
Significant Cash Generation via Day Rate Normalization Illustrative Vessel-Level Cash Flow Generation and Implied Returns at Various Day Rates 1,600 1,400 TDW Fleet Replacement (1) ($bn) 1,200 PSVs $ 6.8 AHTs 1.3 Other 0.1 1,000 Total Replacement Value $ 8.2 800 1,416 1,306 600 1,196 1,086 977 400 8
Slide 22: 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 23: 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 24: 4. ESG at Tidewater
‘|’ TIDEWATER 4. ESG at Tidewater
Slide 25: 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 26: 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 27: 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 28: 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 29: 5. Appendix
5. Appendix tdw.com
Slide 30: 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 31: 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 32: Non-GAAP Financial Measures – EBITDA and Adjusted EBITDA Reconciliation
Non-GAAP Financial Measures – EBITDA and Adjusted EBITDA Reconciliation Adjusted EBITDA 2022 – 2024 YTD Q1-Q3 Q1 2022 Q2 2022 Q3 2022 Q4 2022 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Q1 2024 Q2 2024 Q3 2024 2024 Net Income / (Loss) (12,271) (25,014) 4,910 10,182 (22,193) 10,816 21,928 25,549 37,328
Slide 33: Thank you
‘|’ TIDEWATER Thank you tdw.com