Tidewater Inc. · NYSE:TDW
Tidewater — Barclays CEO Energy - Power Conference 2023
40 slides from Tidewater's conference presentation, Sep 5, 2023
Slide 1: Barclays CEO Energy - Power Conference September 2023
tdw.com Barclays CEO Energy - Power Conference September 2023
Slide 2: Forward-looking statements safe harbor
tdw.com tdw.com In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Tidewater Inc. (the “C omp any”) notes that certain statements set forth in this presentation contain certain forward - looking statements which reflect our current view with respec
Slide 3: Agenda
tdw.com tdw.com 1. Company overview 2. Market overview 3. Financials 4. Sustainability at Tidewater 5. Appendix Agenda
Slide 4: 1. Company Overview
tdw.com tdw.com 1. Company Overview
Slide 5: Tidewater – The Premier Global OSV Fleet
tdw.com tdw.com Tidewater – The Premier Global OSV Fleet Global Footprint in All Major Offshore Regions Company Overview Today Company Highlights (1) ▪ The largest offshore support vessel operator in the world ▪ Strong international footprint with a presence in every major market ▪ Vessels provide s
Slide 6: Operational and Financial Transformation
tdw.com tdw.com Operational and Financial Transformation In addition, TDW successfully tapped the equity market in the past 12 months, raising $183m of common equity to buyback the w arr ants issued to Swire 6 LTM June ‘21 LTM June ‘23 Nominal Change Percentage Change TDW Guidance for 2023E Operatio
Slide 7: Global Footprint in All Major Offshore Regions
tdw.com tdw.com Global Footprint in All Major Offshore Regions (1) 197 OSVs (2) Europe (51 OSVs) West Africa (49 OSVs) Middle East (42 OSVs) PSV AHTS Total Fleet >900 m 2 700 – 900 m 2 <700 m 2 >16K BHP 8 - 16K BHP 4 - 8K BHP PSV AHTS Americas (37 OSVs) Asia Pacific (18 OSVs) 7 39 7 3 2 9 16 3 6 11
Slide 8: Fleet Overview
tdw.com tdw.com 24 17 4 11 AHTS by Bollard Pull 4 - 8K 8 - 12K 12 - 16K >16K Fleet Overview (1) 8 ▪ Used to tow floating drilling rigs and barges ▪ Assist in the docking of tankers, pipe laying, cable laying and construction barges ▪ Specially designed to transport as many as 150 personnel from shor
Slide 9: Fleet Evolution – High-Specification Vessel Focus
tdw.com tdw.com Fleet Evolution – High - Specification Vessel Focus OSV Fleet Count (1) High - Specification OSV Fleet Size TDW has meticulously high - graded its fleet by focusing on high - quality assets, large vessels routinely in high demand and value accretive acquisitions TDW added 86 premier,
Slide 10: Leading OSV Operator with Largest High-Specification Fleet
tdw.com tdw.com Leading OSV Operator with Largest High - Specification Fleet OSV Count and Age Profile 10 High - Specification OSVs (2) Other OSVs Average Age Note: Vessel count reflects only PSVs and AHTSs and reflects TDW vessels booked as AHFS; does not reflect 26 other TDW vessel s including cre
Slide 11: Blue Chip Customer Base
tdw.com tdw.com Blue Chip Customer Base Vessel Mix Customers Asia Pacific Vessel Mix Customers West Africa Vessel Mix Customers Americas Large Medium Vessel Mix Customers Europe / Med Leading Blue - Chip Operators Around the World Utilize Tidewater’s Leading, World - Class Fleet 11 Vessel Mix Custom
Slide 12: Historical Performance
tdw.com tdw.com Historical Performance 12 Source: Company filings. Note: Q1 2017 vessel cash margin includes $39.1 million of revenue associated with an early cancellation of a long - term contract . 0% 10% 20% 30% 40% 50% 60% $0 $5,000 $10,000 $15,000 $20,000 $25,000 Q1 2010 Q1 2011 Q1 2012 Q1 2013
Slide 13: 2. Market Overview
tdw.com tdw.com 2. Market Overview
Slide 14: Global Offshore Spending Overview
tdw.com tdw.com Global Offshore Spending Overview Supportive oil price environment ▪ Global oil demand continuing to show signs of recovery towards pre - Covid levels and beyond ▪ Recent softness in commodity prices has not led to any reduction in activity or expected future demand ▪ Global offshore
Slide 15: Global OSV Utilization
tdw.com tdw.com Global OSV Utilization “Lay - up” includes units confirmed to be in lay - up and out of service for an extended period. Excludes idle. Utilisation, % No. of OSVs No. of OSVs Utilisation, % 15 Utilisation, Global, PSV >1,000 dwt Utilisation, Global, AHTS >4,000 BHP Source: Clarksons R
Slide 16: OSV Day Rate Progression
tdw.com tdw.com 0 10,000 20,000 30,000 40,000 50,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 PSV 3,200dwt TC Rate PSV 4,000dwt TC Rate OSV Day Rate Progression 16 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 2007 2008 2009 2010 2011 2012 2013 2014 2
Slide 17: Tidewater Leading Edge Contract Momentum
tdw.com tdw.com Tidewater Leading Edge Contract Momentum 17 Vessel Class 2021 Day Rate 2022 Day Rate Q1 2023 Leading Edge Term Contracts Q2 2023 Leading Edge Term Contracts (1) >900m 2 PSV $14,382 $16,604 $24,522 $29,958 700 - 900m 2 PSV 11,323 13,889 22,547 24,438 <700m 2 PSV 9,643 10,477 15,999 18
Slide 18: Global Fleet Profile by Vessel Type
tdw.com tdw.com Global Fleet Profile by Vessel Type 18 Vessel Class Number of Vessels Average Age ( yrs ) Active (1) Laid - up Average Age – Laid - up ( yrs ) Active as % of Total >900m 2 PSV 398 11.7 381 17 21.2 95.7% 700 - 900m 2 PSV 384 11.6 336 48 19.2 87.5% <700m 2 PSV 1,135 24.2 761 374 32.9 6
Slide 19: Laid-up PSV Population & Limitations to Reactivation
tdw.com tdw.com Laid - up PSV Population & Limitations to Reactivation # Vessel Name Age Location 1 AIAS 20 Greece 2 KPS BARIS BEY 25 Cuba 3 GSP ALTAIR 25 Romania 4 OCEAN KARADENIZ 20 Norway 5 KARADENIZ POWERSHIP KORAY BEY 29 Senegal 6 HOS BERETTA 17 USA 7 ANDREA CHOUEST 15 USA 8 C - LIBERTY 20 Peru
Slide 20: Newbuild Economics
tdw.com tdw.com Newbuild Economics Considerations Assumptions Newbuild Cost ($m) $65 Assumed day rate ($k/day) $38 Opex rate ($k/day) $8.5 Drydocking Cost (every 5 years) ($m) $1.2 Utilization (%) 90% WACC 14% Years to achieve cost of capital 20 Newbuild Economics Require ~$38k/d Day Rate To Achieve
Slide 21: Shipyard Capacity & Orderbook Status
tdw.com tdw.com 0 200 400 600 800 1,000 1,200 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023ytd No., End Year Source: Clarksons Research. Data as of March 2023. Shipyard Capacity & Orderbook Status Number Of ‘Active’ Shipyards (vessels of c.1,000+
Slide 22: Lack of Debt Availability: May Delay Newbuild Investment
tdw.com tdw.com 0 10 20 30 40 50 60 ING Bank SEB Bank of China China Exim Danske Bank NORD/LB Citigroup SMBC Danish Ship Finance Bremer Landesbank Unicredit / HVB Deutsche Bank BNP Paribas HSBC Lloyds MUFG Bank DVB Credit Suisse Nordea Credit Agricol
Slide 23: 3. Financials
tdw.com tdw.com 3. Financials
Slide 24: Historical and Projected Financial Profile
tdw.com tdw.com 439 289 293 168 175 755 372 218 150 149 170 258 0 200 400 600 800 2018 2019 2020 2021 2022 PF 2Q'23 Historical and Projected Financial Profile 24 Equity Ratio 407 487 397 371 648 1,030 2018 2019 2020 2021 2022 2023E 41 68 74 35 167 412 10% 14% 19% 9% 26% 40% -5% 5% 15% 25% 35% 45% 55
Slide 25: Significant Earnings Leverage and Cash Generation
tdw.com tdw.com 412 465 574 687 801 914 1,028 1,141 1,254 1,368 0 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 1,300 1,400 2023E Adj. EBITDA 53 ~$20.0k/day Total Fleet Dayrate Utilization Uplift Solstad PSVs (to reflect full year) ~$18.5k/day Total Fleet Dayrate ~$21.5k/day Total Fleet Dayr
Slide 26: Fleet Focus – Drydocks and Vessel Vintage
tdw.com tdw.com Fleet Focus – Drydocks and Vessel Vintage Pro Forma Historical Drydock Spend (1) Tidewater OSV Vintage Distribution (2) Significant variability in drydock spend can be seen from non - uniform distribution of vessel build dates 26 $97 $44 $48 $69 $87 2019 2020 2021 2022 2023E Source:
Slide 27: Capital Structure Overview
tdw.com tdw.com Capital Structure Overview TDW Debt Maturity Profile (1) (2) 27 $25 $100 $75 $175 $250 $50 $75 2024 2027 2025 2023 2026 2028 $300 New Bank Debt New Bank Debt Amortization Senior Secured Notes New Senior Unsecured Notes Comments ($ in millions) ▪ Current capital structure features sta
Slide 28: 4. ESG at Tidewater
tdw.com tdw.com 4. ESG at Tidewater
Slide 29: Commitment to ESG principles
tdw.com tdw.com Commitment to ESG principles Environment Social Governance 29 Environmental Management and pollution reduction Responsible Ship Recyling Emissions Production through low - sulfur fuel vessels Waste Management Vessel outfitting with hybrid battery technnology Providing the safest work
Slide 30: Sustainability Report
tdw.com tdw.com 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/sustainabili
Slide 31: Key Areas of Focus on Environment
tdw.com tdw.com 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
Slide 32: Key Areas of Focus on Social
tdw.com tdw.com Key Areas of Focus on Social ▪ People ▪ Committed to providing the safest working environment and the highest level of training possible ▪ Health and Safety Management ▪ We promote safety and instill safe work habits with regular training of for both our mariners and shore - based pe
Slide 33: Safety Leadership Remains a First Priority
tdw.com tdw.com Safety Leadership Remains a First Priority TRCF = (LTIs + RECs) x 1,000,000 / Exposure Hours Total Recordable Case Frequency 2012 - 2022 0.64 TDW 10 Year Average 0.0 2.00 1.00 0.0 2.00 1.00 0.79 TDW CY 2022 0.00 0.50 1.00 1.50 2.00 2.50 3.00 2013 2014 2015 2016 2017 2018 2019 2020 20
Slide 34: Key Areas of Focus on Governance
tdw.com tdw.com 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 supplier
Slide 35: Summary
tdw.com tdw.com Largest global OSV operator 1 Attractive market fundamentals supporting meaningful cash flow generation capability 2 Strong global footprint and increased exposure to blue - chip operators 3 Full cycle financial resilience with strong balance sheet and liquidity 4 Dedicated commitmen
Slide 36: 5. Appendix
tdw.com tdw.com 5. Appendix
Slide 37: Non-GAAP Financial Measures – EBITDA and Adjusted EBITDA Reconciliation
tdw.com tdw.com Non - GAAP Financial Measures – EBITDA and Adjusted EBITDA Reconciliation 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 7,599 7,547 7,
Slide 38: Non-GAAP Financial Measures – EBITDA and Adjusted EBITDA Reconciliation
tdw.com tdw.com Non - GAAP Financial Measures – EBITDA and Adjusted EBITDA Reconciliation Source: Company information 1) EBITDA excludes interest and other debt costs, income tax expense, depreciation and amortization. Additionally, Adjusted EBITDA excludes impairment charges, and merger and integra
Slide 39: Non-GAAP Financial Measures – EBITDA and Adjusted EBITDA Reconciliation
tdw.com tdw.com Non - GAAP Financial Measures – EBITDA and Adjusted EBITDA Reconciliation Source: Company information 1) EBITDA excludes interest and other debt costs, income tax expense, depreciation and amortization. Additionally, Adjusted EBITDA excludes impairment charges, and merger and integra
Slide 40: Thank you
‘|’ TIDEWATER Thank you tdw.com
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