Tidewater Inc. · NYSE:TDW
Tidewater — UNO Energy Accounting & Technology Conference 2008
35 slides from Tidewater's conference presentation, May 16, 2008
Slide 1: Opportunities and Challenges Confronting Current Offshore Service Providers
May 15, 2008 Exhibit 99.1 May 15, 2008 th Annual Annual UNO UNO Energy Energy Accounting Accounting & & Technology Technology Conference Conference “Opportunities and Challenges “Opportunities and Challenges Confronting Current Offshore Confronting Current Offshore Service Providers” Service Provide
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: Our Workplace
OUR WORKPLACE OUR WORKPLACE
Slide 4: Safety Is Priority #1
SAFETY IS SAFETY IS PRIORITY #1 PRIORITY #1
Slide 5: Safety Record Rivals Leading Companies
0.00 0.25 0.50 0.75 1.00 2001 2002 2003 2004 2005 2006 Calendar Years TIDEWATER DOW CHEMICAL DUPONT EXXON/MOBIL BP SAFETY RECORD RIVALS SAFETY RECORD RIVALS LEADING COMPANIES LEADING COMPANIES Total Recordable Incident Rates Total Recordable Incident Rates Calendar Years
Slide 6: Tidewater's Beginnings
TIDEWATER’S TIDEWATER’S BEGINNINGS BEGINNINGS
Slide 7: A New Deepwater Vessel
A NEW DEEPWATER A NEW DEEPWATER VESSEL VESSEL
Slide 8: Tidewater Challenges
Oil & gas prices are highly volatile Changes in the level of capital spending by our customers The offshore marine service industry is highly competitive Failure to attract & retain key management & technical personnel TIDEWATER TIDEWATER CHALLENGES CHALLENGES
Slide 9: Vessel Population by Owner
294 83 71 61 58 1,432 Tidewater Competitor #1 Competitor #2 Competitor #3 Competitor #4 All Others VESSEL POPULATION VESSEL POPULATION BY OWNER BY OWNER (Includes AHTS and PSV’s (Includes AHTS and PSV’s only) only) Estimated as of March 2008 Estimated as of March 2008 Source: ODS-Petrodata and Tidew
Slide 10: Tidewater Challenges
Risks associated with operating internationally Operational risks inherent to the Offshore Marine Industry Potential overcapacity in the Offshore Marine Industry Difficult market conditions TIDEWATER TIDEWATER CHALLENGES CHALLENGES
Slide 11: Tidewater Challenges
Consolidation of the company’s customer base Risks associated with construction and maintenance Compliance with Foreign Corrupt Practices Act Compliance with complex and developing laws and regulations TIDEWATER TIDEWATER CHALLENGES CHALLENGES
Slide 12: The FCPA and Tidewater
Updating of FCPA policies (facilitating payments, gifts, entertainment, donations) Increased vetting of Third Party Agents Updating Third Party Agency agreements and Compliance Certificates Increased worldwide FCPA training THE FCPA AND THE FCPA AND TIDEWATER TIDEWATER
Slide 13: Tidewater's Compliance Program
Establishment of Corporate Compliance Committee Training on other legal and policy compliance topics Updating of Compliance Reporting Systems Implementation of broader employee background checks TIDEWATER’S TIDEWATER’S COMPLIANCE PROGRAM COMPLIANCE PROGRAM
Slide 14: Tidewater Today
Solid safety record International presence driving earnings Use cash to grow industry’s largest new fleet – earning great returns Mature vessels providing continued outstanding returns A strong balance sheet Returns to shareholders: share repurchases and dividends TIDEWATER TODAY TIDEWATER TODAY
Slide 15: Tidewater Tomorrow
Fleet with expanded capabilities Increased international presence Generating solid returns regardless of market cycle Financially strong Creating value for shareholders TIDEWATER TOMORROW TIDEWATER TOMORROW
Slide 16: How Do We Accomplish Our Vision?
Deploy cash to renew fleet with expanded capabilities Push dayrates and utilization to grow profits and cash flow Balance long-term and spot market opportunities Right acquisitions, right price, right time Utilize balance sheet strength Focus on creating shareholder value HOW DO WE ACCOMPLISH HOW DO
Slide 17: Why a Positive Outlook?
Favorable commodity price environment International E&P spending up 16% in 2008 (Lehman Bros.) More vessels needed - High rig utilization - New rigs and FPSO’s coming - Strong seismic and construction markets Largest new fleet in the industry Mature vessels earning excellent returns INTERNATIONAL!!!
Slide 18: Global Vessel Fleet by Age
0 20 40 60 80 100 120 140 160 180 200 1965 1970 1975 1980 1985 1990 1995 2000 2005 2,000 active vessels GLOBAL VESSEL FLEET BY AGE (Includes AHTS and PSV’s only) Source: ODS-Petrodata and Tidewater As of 3/31/08, there are As of 3/31/08, there are approximately 710 additional AHTS approximately 710
Slide 19: Global Vessel Fleet by Age
0 20 40 60 80 100 120 140 160 180 200 1965 1970 1975 1980 1985 1990 1995 2000 2005 Of the total 2,000 vessels, 302 vessels are 30+ yrs old . GLOBAL VESSEL FLEET BY AGE (Includes AHTS and PSV’s only) Source: ODS-Petrodata and Tidewater As of 3/31/08, there are As of 3/31/08, there are approximately 7
Slide 20: Global Vessel Fleet by Age
0 20 40 60 80 100 120 140 160 180 200 1965 1970 1975 1980 1985 1990 1995 2000 2005 Of the total 2,000 vessels, 302 vessels are 30+ yrs old, GLOBAL VESSEL FLEET BY AGE (Includes AHTS and PSV’s only) Source: ODS-Petrodata and Tidewater As of 3/31/08, there are As of 3/31/08, there are approximately 71
Slide 21: Global Vessel Fleet by Age
0 20 40 60 80 100 120 140 160 180 200 1965 1970 1975 1980 1985 1990 1995 2000 2005 Of the total 2,000 vessels, 302 vessels are 30+ yrs old , GLOBAL VESSEL FLEET BY AGE (Includes AHTS and PSV’s only) Source: ODS-Petrodata and Tidewater As of 3/31/08, there are As of 3/31/08, there are approximately 7
Slide 22: Vessel / Rig Ratio
2,000 Global Vessel Count (AHTS & PSV only) 573 Global Working Rigs 3.5 Vessel to Rig Ratio 58 Older rigs in yards getting prepared for work 163 New rigs under construction VESSEL / RIG RATIO VESSEL / RIG RATIO Current Vessel Demand Dynamics: Incremental Vessel Demand: Source: ODS-Petrodata and Tide
Slide 23: International Presence Driving Earnings
90% International 10% Domestic (vs. 57% International and 43% Domestic ten years ago) Active Vessel Count By Region (excludes stacked vessels) North America 38 (10%) (10%) Central/South America 99 (27%) (27%) West Africa 150 (40%) (40%) Far East 48 (13%) (13%) Europe/M.E. 38 (10%) (10%) 90% Internat
Slide 24: International Vessel Dayrates
Growth Total Dayrate Growth from FY‘04 +71%, New vessels +81%, Mature vessels +44% 0% 10% 20% 30% 40% 50% 60% 70% 80% Fiscal 2005 Fiscal 2006 Fiscal 2007 Fiscal 2008 INTERNATIONAL INTERNATIONAL VESSEL DAYRATES VESSEL DAYRATES Growth Total Dayrate Growth from FY‘04 +71%, New vessels +81%, Mature vess
Slide 25: Use Cash to Grow Industry's Largest New Fleet
Commit $300-$500 MM per year for fleet renewal Paid from internal cash flow Fiscal 2008 CapEx of $354 MM Always weigh build vs. buy criteria Strive for a Balance Between Performance, Growth and Financial Strength USE CASH TO USE CASH TO GROW INDUSTRY’S GROW INDUSTRY’S LARGEST NEW FLEET LARGEST NEW F
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Slide 28: Tidewater's Next Generation Vessels
TIDEWATER’S NEXT TIDEWATER’S NEXT GENERATION VESSELS GENERATION VESSELS
Slide 29: Largest New Fleet in the Industry
0 100 200 300 400 500 Active Fleet Dispositions * Net vessels added to the fleet since January 2000, including 49 vessels under construction at 3/31/08. * Since 4/01/05, 28 vessels have been scrapped and 115 have been sold. * Total fleet count excludes 53 stacked vessels. Out With the Old – In With
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Slide 31: Significant Earnings Growth
$0.00 $2.00 $4.00 $6.00 $8.00 Fiscal 2004 Fiscal 2005 Fiscal 2006 Fiscal 2007 Fiscal 2008 58% Four-Year Compounded Annual Earnings Growth Rate $1.03 $1.78 $3.33 $5.94 ** 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
Slide 32: Returning Value to Shareholders
Current repurchase authority $250 MM Spent $196.4 MM through 3/31/08 Since 8/05, have repurchased 8.5 MM shares for $462.5 MM, ($54.14 per share) Current 1.1% yield (highest among OSX companies) One of eight OSX companies paying dividends RETURNING VALUE TO RETURNING VALUE TO SHAREHOLDERS SHAREHOLDE
Slide 33: Goals & Objectives
Renew Fleet Maintain Financial Strength Deliver Results GOALS & OBJECTIVES GOALS & OBJECTIVES Consistent Over Last Several Years Consistent Over Last Several Years Renew Fleet Maintain Financial Strength Deliver Results
Slide 34: Celebrating Years
CELEBRATING 50 YEARS CELEBRATING 50 YEARS
Slide 35: Opportunities and Challenges Confronting Current Offshore Service Providers
May 15, 2008 May 15, 2008 th Annual UNO Energy Accounting & Annual UNO Energy Accounting & Technology Conference Technology Conference “Opportunities and Challenges “Opportunities and Challenges Confronting Current Offshore Confronting Current Offshore Service Providers” Service Providers” Joe Benne
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