Tidewater Inc. · NYSE:TDW
Tidewater — 18th Annual Burkenroad Reports Investment Conference (April 2014)
32 slides from Tidewater's conference presentation, Apr 29, 2014
Slide 1: 18th Annual Burkenroad Reports Investment Conference
18th Annual BURKENROAD REPORTS Investment Conference April 25, 2014 Joseph M. Bennett EVP & Chief IRO Exhibit 99.1
Slide 2: Forward-Looking Statements
18th Annual BURKENROAD REPORTS Investment Conference TIDEWATER 601 Poydras Street, Suite 1500, New Orleans, LA 70130 FORWARD-LOOKING STATEMENTS In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Company notes that certain statements set forth i
Slide 3: Our Humble Beginnings
Our Humble Beginnings
Slide 4: Key Tidewater Takeaways
• Consistent goal of “Best in Class” safety and compliance culture • History of earnings growth and solid returns • Largest “NEW” OSV fleet in the industry, operating in over 50 countries with ~8,000 employees worldwide • Solid balance sheet and ready liquidity allows us to continue to act upon avai
Slide 5: Safety Record Rivals Leading Companies
like holding a snake by its head. Operating safely offshore is It’s a task that can’t be turned loose not for a microsecond of an accident will strike without pity Safety Record Rivals Leading Companies • Safe Operations is Priority #1 • Stop Work Obligation • Safety performance is 25% of mgt. incen
Slide 6: Our Workplace !!!
Our Workplace !!!
Slide 7: Working Offshore Rig Trends
Source: ODS-Petrodata Note: 44 “Other” rigs, along with the Jackups and Floaters, provide a total working rig count of 716 in April 2014. Prior peak (summer 2008) Jackups Floaters Working Offshore Rig Trends
Slide 8: Drivers of our Business "Peak to Present"
July 2008 (Peak) Jan. 2011 (Trough) April 2014 Working Rigs 603 538 716 Rigs Under Construction 186 118 253 OSV Global Population 2,033 2,599 3,129 OSV’s Under Construction 736 367 455 OSV/Rig Ratio 3.37 4.83 4.37 Source: ODS-Petrodata and Tidewater Drivers of our Business “Peak to Present”
Slide 9: Tidewater's Active Fleet
Year Built Deepwater vessels Towing Supply/Supply Other vessels 244 “New” vessels – 6.0 avg yrs 25 “Traditional” vessels – 26.5 avg yrs Tidewater’s Active Fleet As of December 31, 2013
Slide 10: Vessel Population by Owner
Source: OD S - Petrodata and Tidewater Tidewater Competitor #2 Competitor #3 Competitor #4 Competitor # 5 Competitor #1 Avg. All Others (2,382 total vessels for 400+ owners) Vessel Population by Owner (AHTS and PSVs only) Estimated as of April 2014
Slide 11: Our Global Footprint – Vessel Count by Region
Americas 66(25%) MENA 45(17%) SS Africa/Europe 135(50%) Asia/Pac 23(8%) In 3Q FY 2014, ~10% of vessel revenue was generated in the U.S. by ~ 17 vessels; however, <15 other U.S.-flagged vessels are currently operating in International regions that could be re-deployed to the U.S. GOM. In addition, Ti
Slide 12: A Broad Portfolio of New High Spec OSVs
Current Future DWT Fleet CIP Fleet Current Future BHP Fleet CIP Fleet Current Future BHP Fleet CIP Fleet A Broad Portfolio of New High Spec OSVs Deepwater PSV Deepwater AHTS Towing Supply Vessel information is as of 12/31/13. CIP=Construction in Process. 5,000-6,000 4,000-4,999 3,000-3,999 <3,000 25
Slide 13: The Largest Modern OSV Fleet in the Industry
Vessel Count (2) Total Cost (2) Average Cost per Vessel Deepwater PSVs 97 $2,725m $28.1m Deepwater AHTSs 12 $387m $32.3m Towing Supply/Supply 109 $1,617m $14.8m Other 55 $277m $5.0m TOTALS: 273 $5,006m (1) $18.3m (1) ~$4.4b (88%) funded through 12/31/13 (2) Vessel count and total cost is net of 26 v
Slide 14: Strong Financial Position Provides Strategic Optionality
Cash & Cash Equivalents $114 million Total Debt $1,464 million Shareholders Equity $2,640 million Net Debt / Net Capitalization 34% Total Debt / Capitalization 36% As of December 31, 2013 ~$715 million of available liquidity as of 12/31/13, including $600 million of unused capacity under the company
Slide 15: Debt Maturities Limited for Several Years
Debt Maturities Limited for Several Years Fiscal Year $200 $0 $400 $600 $800
Slide 16: Earnings per Share by Fiscal Year
** EPS in Fiscal 2004 is exclusive of the $.30 per share after tax impairment charge. EPS in Fiscal 2006 is exclusive of the $.74 per share after tax gain from the sale of six KMAR vessels. EPS in Fiscal 2007 is exclusive of $.37 per share of after tax gains from the sale of 14 offshore tugs. EPS in
Slide 17: Active Vessel Dayrates & Utilization by Segment
Impact of $7.4 million of retroactive revenue recorded in September 2012 quarter is excluded from 9/12 average dayrates and included in the respective March 2012 and June 2012 quarterly average dayrates. Utilization stats exclude stacked vessels. Active Vessel Dayrates & Utilization by Segment 60% 7
Slide 18: New Vessel Trends by Vessel Type: Deepwater PSVs
$165 million, or 46%, of Vessel Revenue in Q3 Fiscal 2014 New Vessel Trends by Vessel Type Deepwater PSVs Q3 Fiscal 2014 Avg Day Rate: $29,092 Utilization: 82.7% $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 FY08 FY09 FY10 FY11 FY12 FY13 FY14 Average Day Rate, Adjusted Average Day Rate, and Ave
Slide 19: New Vessel Trends: Towing Supply/Supply Vessels
Q3 Fiscal 2014 Avg Day Rate: $15,144 Utilization: 85.5% $124 million, or 35%, of Vessel Revenue in Q3 Fiscal 2014 New Vessel Trends by Vessel Type Towing Supply/Supply Vessels 101 102 - $0 $5,000 $10,000 $15,000 $20,000 $25,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 20: Tidewater's New Subsea Business
Recent delivery of six work-class remotely operated vehicles (ROV ) Tidewater’s New Subsea Business
Slide 21: Tidewater's Future
• Continue to improve upon stellar safety and compliance programs • Maintain solid balance sheet and financial flexibility to deal with industry uncertainties and seize opportunities when presented • Disciplined deployment of cash to expand vessel and ROV fleet capabilities • Return capital to share
Slide 22: 18th Annual Burkenroad Reports Investment Conference
18th Annual BURKENROAD REPORTS Investment Conference April 25, 2014 Joseph M. Bennett EVP & Chief IRO
Slide 23: WP rwewares
WP rwewares
Slide 24: Financial Strategy Focused on Creating Long-Term Shareholder Value
Maintain Financial Strength EVA-Based Investments On Through-cycle Basis Deliver Results Financial Strategy Focused on Creating Long-Term Shareholder Value
Slide 25: The Worldwide OSV Fleet
Vessels > 25 years old today Source: ODS-Petrodata and Tidewater As of March 2014, there are approximately 463 additional AHTS and PSV’s (~15% of the global fleet) under construction. Global fleet is estimated at 3,088 vessels, including ~700 vessels that are 25+ yrs old (25%). The Worldwide OSV Fle
Slide 26: Our Global Footprint – Vessel Class by Region
New Avg. Vessels NBV Deepwater 31 $19.9M Towing Supply 14 $10.9M Other 9 $3.6M 54 New Avg. Vessels NBV Deepwater 11 $16.6M Towing Supply 31 $12.5M Other 0 0 42 New Avg. Vessels NBV Deepwater 37 $28.1M Towing Supply 46 $12.5M Other 42 $1.9M 125 New Avg. Vessels NBV Deepwater 8 $25.2M Towing Supply 14
Slide 27: Vessels Under Construction
Count Deepwater PSVs 22 Deepwater AHTSs - Towing Supply/Supply 6 Other 1 Total 29 Estimated delivery schedule – 1 for the remainder of FY ’14, 16 in FY ’15 and 12 thereafter. CAPX of $93m for the remainder of FY ’14, $366m in FY ‘15 and $150m in FY ’16. Vessels Under Construction* As of December 31,
Slide 28: Fleet Renewal & Expansion Largely Funded by CFFO
Over a 14-year period, Tidewater has invested $4.6 billion in CapEx, and paid out ~$1.2 billion through dividends and share repurchases. Over the same period, CFFO and proceeds from dispositions were $3.8 billion and $749 million, respectively. $ in millions CFFO Fiscal Year Fleet Renewal & Expansio
Slide 29: Total Revenue and Margin Fiscal 2008-2014
Note: Vessel operating margin is defined as vessel revenue less vessel operating expenses Prior peak period (FY2009) averaged quarterly revenue of $339M, quarter operating margin of $175.6M at 51.8% Total Revenue and Margin Fiscal 2008-2014 53.0% 46.7% 56.4% 47.7% 38.0% 41.0% 36.9% 45.0% 42.0% 44.1%
Slide 30: Cyclical Upturn should Drive Margin Expansion
Vessel Cash Operating Margin ($) Vessel Cash Operating Margin (%) $163 million Vessel Margin in Q3 FY2014 (98% from New Vessels) Q3 FY2014 Vessel Margin: 45% Cyclical Upturn should Drive Margin Expansion $0 $25 $50 $75 $100 $125 $150 $175 $200 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 31: New Vessel Trends: Deepwater AHTS
Q3 Fiscal 2014 Avg Day Rate: $29,141 Utilization: 95.8% $30 million, or 8%, of Vessel Revenue in Q3 Fiscal 2014 New Vessel Trends by Vessel Type Deepwater AHTS Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 32: Our top customers
Our top 10 customers in Fiscal 2013 (4 Super Majors, 2 NOC’s, 3 IOC’s and 1 independent) accounted for 58% of our revenue Current Revenue Mix Quality of Customer Base Super Majors 38% NOC's 21% Others 41%
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