Tidewater Inc. · NYSE:TDW
Tidewater — Credit Suisse Annual Energy Summit 2015
31 slides from Tidewater's conference presentation, Mar 3, 2015
Slide 1: Credit Suisse Annual Energy Summit
Credit Suisse Annual Energy Summit February 26, 2015 Joseph M. Bennett EVP & CFO Quinn P. Fanning EVP & Chief IRO Exhibit 99.1 th
Slide 2: 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 in this presentation provide other than historical information and are forward looking. The actual achievement of any forecasted results, or the
Slide 3: Key Tidewater Topics
• Consistent goal of “Best in Class” safety and compliance culture • Largest “NEW” OSV fleet in the industry, operating in over • Continued solid financial position, with considerable ready liquidity, a reasonable debt level, minor debt maturities until FY2019 and expected reduced CAPX as major flee
Slide 4: Working Offshore Rig Trends
Source: ODS-Petrodata Note: 43 “Other” rigs, along with the Jackups and Floaters, provide a total working rig count of 693 in February 2015. Prior peak (summer 2008) Jackups Floaters Working Offshore Rig Trends Rig CIP Jackups Floaters Other
Slide 5: Our Global Footprint – Vessel Class by Region
New Avg. Vessels NBV Deepwater 35 20.6M Towing Supply 19 $9.8M Other 9 $3.2M 63 New Avg. Vessels NBV Deepwater 12 $17.5M Towing Supply 31 $11.8M Other 0 0 43 New Avg. Vessels NBV Deepwater 33 $28.5M Towing Supply 41 $12.3M Other 36 $1.8M 110 New Avg. Vessels NBV Deepwater 11 $26.4M Towing Supply 14
Slide 6: Tidewater's Strategy
• Continue to improve upon stellar safety and compliance programs • Maintain solid balance sheet and financial flexibility to deal with • Return capital to shareholders through dividends and Tidewater’s Strategy • Stay close to our customers • Monitor industry developments to adjust our playbook acc
Slide 7: Credit Suisse Annual Energy Summit
Credit Suisse th Annual Energy Summit February 26, 2015 Joseph M. Bennett EVP & CFO Quinn P. Fanning EVP & Chief IRO
Slide 8: 4P rewares
4P rewares ROMS POLLUX
Slide 9: Safety Record Rivals Leading Companies
Operating safely offshore is like holding a snake by its head. It’s a task that can’t be turned loose not for a microsecond or 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. ince
Slide 10: Drivers of our Business: Peak to Present
July 2008 (Peak) Jan. 2011 (Trough) February 2015 Working Rigs 603 538 693 Rigs Under Construction 186 118 228 OSV Global Population 2,033 2,599 3,253 OSV’s Under Construction 736 367 438 OSV/Rig Ratio 3.37 4.83 4.69 Source: ODS-Petrodata and Tidewater Drivers of our Business “Peak to Present”
Slide 11: The Worldwide OSV Fleet
Vessels > 25 years old today Source: ODS-Petrodata and Tidewater As of February 2015, there are approximately 438 additional AHTS and PSV’s (~14% of the global fleet) under construction. Global fleet is estimated at 3,253 vessels, including ~700 vessels that are 25+ yrs old (22%). The Worldwide OSV
Slide 12: Tidewater's Active Fleet
Year Built Deepwater vessels Towing Supply/Supply Other vessels 242 “New” vessels – 6.6 avg yrs “Traditional” (only 7 OSVs) Tidewater’s Active Fleet As of December 31, 2014 vessels – 25.8 avg yrs
Slide 13: Vessel Population by Owner
Source: ODS-Petrodata and Tidewater Tidewater Competitor #2 Competitor #3 Competitor #4 Competitor # 5 Competitor #1 Avg. All Others (2,496 total vessels for 400+ owners) Vessel Population by Owner (AHTS and PSVs only) Estimated as of February 2015
Slide 14: Our Global Footprint – Vessel Count by Region
MENA 46 (18%) Americas 71 (27%) Asia/Pac 26 (10%) SS Africa/Europe 117 (45%) Our Global Footprint – Vessel Count by Region (Excludes stacked vessels – as of 12/31/14 )
Slide 15: The Largest Modern OSV Fleet in the Industry
Vessel Count (2) Total Cost (2) Average Cost per Vessel Deepwater PSVs 102 $2,900m $28.4m Deepwater AHTSs 12 $387m $32.3m Towing Supply/Supply 111 $1,667m $15.0m Other 53 $227m $4.3m TOTALS: 278 $5,181m (1) $18.6m (1) ~$4.68b (90%) funded through 12/31/14 (2) Vessel count and total cost is net of 26
Slide 16: Vessels Under Construction…and More to Come
Count Deepwater PSVs 21 Deepwater AHTSs - Towing Supply/Supply 6 Other 1 Total 28 CAPX of $153m remaining in FY ’15, $257m in FY ‘16 and $61m thereafter. Estimated delivery schedule – 4 remaining in FY ’15, 18 in FY ‘16 and 6 thereafter. Vessels Under Construction* As of December 31, 2014 …and More
Slide 17: The Upgrading of the Tidewater Fleet
Current Future Vintage DWT CIP Fleet Fleet Current Future Vintage BHP New Fleet CIP Fleet Fleet Current Future Vintage BHP CIP Fleet Fleet New Vintage Total DWT Fleet Fleet Fleet New Vintage Total BHP Fleet Fleet Fleet New Vintage Total BHP Fleet Fleet Fleet The Upgrading of the Tidewater Fleet (A 1
Slide 18: CAPX Expected to Decrease from Recent High Levels
CAPX Expected to Decrease from Recent High Levels Fiscal Year Fiscal 2014 is exclusive of Troms acquisition Amounts in Fiscal 2015-2017 represent known CAPX on only the 28 vessels and 2 ROVs under construction as of 12/31/14. Additional CAPX could occur, but trendline is expected down. $1,000 $800 $
Slide 19: Strong Financial Position Provides Strategic Optionality
Cash & Cash Equivalents $77 million Total Debt $1,491 million Shareholders Equity $2,503 million Net Debt / Net Capitalization 36% Total Debt / Capitalization 37% As of December 31, 2014 ~$675 million of available liquidity as of 12/31/14, including $600 million of unused capacity under the company’
Slide 20: Debt Maturities Limited for Several Years
Debt Maturities as of 12/31/14 Limited for Several Years Fiscal Year $0 $200 $400 $600 $800
Slide 21: Earnings per Share
** 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 22: Active Vessel Dayrates & Utilization by Segment
Utilization stats exclude stacked vessels. Active Vessel Dayrates & Utilization by Segment $26,000 $22,000 $18,000 $14,000 $10,000 $6,000 100% 90% 80% 70% 60% Americas Asia/Pac MENA Sub Sah Africa/Eur.
Slide 23: New Vessel Trends: Deepwater PSVs
Q3 Fiscal 2015 Avg Day Rate: $29,929 Utilization: 86.1% $189 million, or 50%, of Vessel Revenue in Q3 Fiscal 2015 New Vessel Trends by Vessel Type Deepwater PSVs Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 Avera
Slide 24: New Vessel Trends: Deepwater AHTS
Q3 Fiscal 2015 Avg Day Rate: $33,375 Utilization: 83.0% $31 million, or 8%, of Vessel Revenue in Q3 Fiscal 2015 New Vessel Trends by Vessel Type Deepwater AHTS - $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 25: New Vessel Trends: Towing Supply/Supply Vessels
Q3 Fiscal 2015 Avg Day Rate: $15,647 Utilization: 80.8% $122 million, or 32%, of Vessel Revenue in Q3 Fiscal 2015 New Vessel Trends by Vessel Type Towing Supply/Supply Vessels 101 102 103 103 103 105 105 105 105 - $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
Slide 26: Tidewater's New Subsea Business
• Six work-class ROV’s in current fleet and two more on order • Commercial operations underway with additional opportunities in Americas, SSAE and Asia/Pac • ROV capabilities generating potential for OSV pull through Tidewater’s New Subsea Business
Slide 27: Financial Strategy Focused on Creating Long-Term Shareholder Value
Maintain Maintain Financial Strength Financial Strength EVA-Based Investments EVA-Based Investments On Through-cycle Basis On Through-cycle Basis Deliver Results Deliver Results Financial Strategy Focused on Creating Long-Term Shareholder Value
Slide 28: Fleet Renewal & Expansion Largely Funded by CFFO
Over a 15-year period, Tidewater has invested ~$5.2 billion in CapEx, and paid out ~$1.3 billion through dividends and share repurchases. Over the same period, CFFO and proceeds from dispositions were ~$3.9 billion and ~$800 million, respectively. $ in millions CFFO Fiscal Year Fleet Renewal & Expan
Slide 29: Total Revenue and Margin Fiscal 2008-2015
Prior peak period (FY2009) averaged quarterly revenue of $339M, quarter operating margin of $175.6M at 51.8% $300 million $150 million 50.0% Total Revenue and Margin Fiscal 2008-2015 53.0% 46.7% 56.4% 47.7% 38.0% 41.0% 36.9% 45.0% 42.0% 44.1% 40.8% 46.3% 45.2% 43.0% 43.1% 45.6% 44.4% $- $100 $200 $3
Slide 30: Cyclical Upturn should Drive Margin Expansion
$168 million Vessel Margin in Q3 FY2015 (98% from New Vessels) Q3 FY2015 Vessel Margin: 44% Cyclical Upturn should Drive Margin Expansion $0 $25 $50 $75 $100 $125 $150 $175 $200 New Traditional 0% 10% 20% 30% 40% 50% 60% 70% Total New Q1Q2Q3Q4 Q1Q2Q3Q4 Q1Q2Q3Q4 Q1Q2Q3Q4 Q1Q2Q3Q4 Q1Q2Q3Q4 Q1Q2Q3 FY 2
Slide 31: Quality of Customer Base
Our top 10 customers in Fiscal 2014 (4 Super Majors, 4 NOC’s, 1 IOC’s and 1 independent) accounted for 62% of our revenue Current Revenue Mix Quality of Customer Base Super Majors 37% NOC's 22% Others 41%