Tidewater Inc. · NYSE:TDW
Tidewater — Credit Suisse Energy Summit 2014
26 slides from Tidewater's conference presentation, Feb 19, 2014
Slide 1: Credit Suisse Energy Summit
Credit Suisse Energy Summit February 12, 2014 Jeffrey M. Platt President and CEO Joseph M. Bennett EVP & Chief IRO Exhibit 99.1
Slide 2: Forward-Looking Statements
Phone: 504.568.1010 | Fax: 504.566.4580 Web site address: www.tdw.com Email: connect@tdw.com 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 n
Slide 3: Key Tidewater Facts
• “Best in Class” safety and compliance culture • First to expand extensively into int’l markets, evolving to our current global exposure– presence in over 50 countries with ~8,000 employees worldwide • History of earnings growth and solid returns • Largest “NEW” OSV fleet in the industry • Solid ba
Slide 4: 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
Slide 5: Working Offshore Rig Trends
Source: ODS-Petrodata Note: 44 “Other” rigs, along with the Jackups and Floaters, provide a total working rig count of 707 in February 2014. Prior peak (summer 2008) Jackups Floaters Working Offshore Rig Trends
Slide 6: Drivers of our Business "Peak to Present"
July 2008 (Peak) Jan. 2011 (Trough) February 2014 Working Rigs 603 538 707 Rigs Under Construction 186 118 240 OSV Global Population 2,033 2,599 3,080 OSV’s Under Construction 736 367 458 OSV/Rig Ratio 3.37 4.83 4.36 Source: ODS-Petrodata and Tidewater Drivers of our Business “Peak to Present”
Slide 7: The Worldwide OSV Fleet
Vessels > 25 years old today Source: ODS-Petrodata and Tidewater As of February 2014, there are approximately 458 additional AHTS and PSV’s (~15% of the global fleet) under construction. Global fleet is estimated at 3,080 vessels, including ~720 vessels that are 25+ yrs old (25%). The Worldwide OSV
Slide 8: Tidewater's Active Fleet
Year Built Deepwater vessels Towing Supply/Supply Other vessels 244 “New” vessels – 6.0 avg yrs “Traditional” vessels – 26.5 avg yrs Tidewater’s Active Fleet As of December 31, 2013
Slide 9: Vessel Population by Owner
Source: ODS-Petrodata and Tidewater Tidewater Competitor #2 Competitor #3 Competitor #4 Competitor # 5 Competitor #1 Avg. All Others (2,358 total vessels for 400+ owners) Vessel Population by Owner (AHTS and PSVs only) Estimated as of February 2014
Slide 10: Our Global Footprint – Vessel Count by Region
Americas 66 (25%) SS Africa/Europe 135 (50%) Asia/Pac 23 (8%) MENA 45 (17%) 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
Slide 11: 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 12: Earnings per share history
** 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 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: 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 15: 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 16: New Vessel Trends: Deepwater PSVs
$165 million, or 46%, of Vessel Revenue in Q3 Fiscal 2014 New Vessel Trends by Vessel Type Deepwater PSVs - $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 FY08 FY09 FY10 FY11 FY12 FY13 FY14 Average Day Rate, Adjuste
Slide 17: New Vessel Trends: Towing Supply/Supply Vessels
$124 million, or 35%, of Vessel Revenue in Q3 Fiscal 2014 New Vessel Trends by Vessel Type Towing Supply/Supply Vessels 101 102 103 - $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 Q1 Q2 Q3 FY08 FY09 FY10 FY11 FY12 FY13 FY14 Average
Slide 18: Tidewater's New Subsea Business
Recent order of six work-class remotely operated vehicles (ROV ) Tidewater’s New Subsea Business
Slide 19: 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 20: Credit Suisse Energy Summit
Credit Suisse Energy Summit February 12, 2014 Jeffrey M. Platt President and CEO Joseph M. Bennett EVP & Chief IRO
Slide 21: Of risewarer
Of risewarer
Slide 22: 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 $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 FY08 FY0
Slide 23: Fleet Renewal & Expansion 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 24: 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 25: Total Revenue and Margin Fiscal 2008-2014
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 $300 million $150 million $- $100 $200 $300 $400 $500 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
Slide 26: Quality of Customer Base
Super Majors 38% NOC's 21% Others 41% 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