Tidewater Inc. · NYSE:TDW
Tidewater — Jefferies 2012 Global Energy Conference
31 slides from Tidewater's conference presentation, Dec 4, 2012
Slide 1: Jefferies 2012 Global Energy Conference
November 28, 2012 JEFFERIES 2012 GLOBAL ENERGY CONFERENCE Executive Vice President and Chief Investor Relations Officer Executive Vice President and CFO Exhibit 99.1 November 28, 2012 JEFFERIES 2012 GLOBAL ENERGY CONFERENCE Joseph M. Bennett Joseph M. Bennett Executive Vice President and Chief Inves
Slide 2: Forward-Looking Statements
2 FORWARD-LOOKING STATEMENTS 2 Phone: 504.568.1010 • Fax: 504.566.4580 Web: • Email: connect@tdw.com www.tdw.com FORWARD-LOOKING STATEMENTS FORWARD-LOOKING STATEMENTS In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Company notes that certain
Slide 3: Key Takeaways
3 KEY TAKEAWAYS KEY TAKEAWAYS KEY TAKEAWAYS • Focus on safety, compliance & operating excellence • “The Tide is Turning”– improved working rig count is positively impacting deepwater and jackup support vessels globally • History of earnings growth and solid returns • Unmatched scale and scope of ope
Slide 4: Safety Record Rivals Leading Companies
SAFETY RECORD RIVALS LEADING COMPANIES 4 SAFETY RECORD RIVALS LEADING COMPANIES SAFETY RECORD RIVALS LEADING COMPANIES 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 CALENDAR YEARS TOTAL RECORDABLE INCIDENT RATES TIDEWATER DOW CHEMICAL CHEVRON EXXON/MO
Slide 5: Working Offshore Rig Trends
5 WORKING OFFSHORE RIG TRENDS Note: 45 “Other” rigs, along with the Jackups and Floaters, provide a total working rig count of 643 in November 2012. WORKING OFFSHORE RIG TRENDS WORKING OFFSHORE RIG TRENDS Floaters Jackups Prior peak (summer 2008) Source: ODS-Petrodata
Slide 6: Drivers of Our Business
6 Source: ODS-Petrodata and Tidewater July 2008 (Peak) Jan. 2011 (Trough) November 2012 Working Rigs 603 538 643 Rigs Under Construction 186 118 199 OSV Global Population 2,033 2,599 2,820 OSV’s Under Construction 736 367 441 OSV/Rig Ratio 3.37 4.83 4.39 DRIVERS OF OUR BUSINESS “Peak to Present” DRI
Slide 7: The Worldwide OSV Fleet – Retirements Expected to Exceed New Deliveries
7 Source: ODS-Petrodata and Tidewater Vessels > 25 years old today THE WORLDWIDE OSV FLEET – RETIREMENTS EXPECTED TO EXCEED NEW DELIVERIES (Includes AHTS and PSV’s only) Estimated as of November 2012 Global fleet estimated at 2,820 vessels, including 471 vessels that are 30+ yrs old (17%), and anoth
Slide 8: Tidewater's Active Fleet as of September 30, 2012
8 TIDEWATER’S ACTIVE FLEET as of September 30, 2012 Year Built Deepwater vessels Towing Supply/Supply Other vessels 221 “New” vessels – 5.5 avg yrs 39 “Traditional” vessels – 27.5 avg yrs 1970 1975 1980 1985 1990 1995 2000 2005 2010 TIDEWATER’S ACTIVE FLEET as of September 30, 2012 TIDEWATER’S ACTIV
Slide 9: Vessel Population by Owner
9 VESSEL POPULATION BY OWNER Source: ODS-Petrodata and Tidewater (AHTS and PSV’s only) – Estimated as of November 2012 VESSEL POPULATION BY OWNER Tidewater Competitor #2 Competitor #3 Competitor #4 Competitor # 5 Competitor #1 Avg. All Others (2,102 total vessels for 370+ owners) Tidewater AHTS and
Slide 10: History of Earnings Growth and Solid Through-Cycle Returns
10 HISTORY OF EARNINGS GROWTH AND SOLID THROUGH-CYCLE RETURNS ** 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 shar
Slide 11: Global Strength
11 GLOBAL STRENGTH GLOBAL STRENGTH GLOBAL STRENGTH Unique global footprint; 50+ years of Int’l experience Unmatched scale and scope of operations Strength of International business complements U.S. activity Secular growth Longer contracts Better utilization Higher day rates Solid customer base of NO
Slide 12: Our Global Footprint
12 Americas 66(26%) SS Africa/Europe 128(49%) Asia/Pac 29(11%) OUR GLOBAL FOOTPRINT Vessel Distribution by Region (excludes stacked vessels – as of 9/30/12) MENA 37(14%) OUR GLOBAL FOOTPRINT Vessel Distribution by Region (excludes stacked vessels – as of 9/30/12) In 2Q FY 2013, ~8% of vessel revenue
Slide 13: The Largest Modern OSV Fleet in the Industry
13 Vessel Count (2) Total Cost (2) Deepwater PSVs 78 $1,866m Deepwater AHTSs 11 $358m Towing Supply/Supply 106 $1,564m Other 57 $289m TOTALS: 252 $4,077m (1) (1) $3,592m (88%) funded through 9/30/12 THE LARGEST MODERN OSV FLEET IN THE INDUSTRY…. (2) Vessel count and total cost is net of 23 vessel di
Slide 14: ...And More to Come
14 Count Deepwater PSVs 19 Deepwater AHTSs - Towing Supply/Supply 4 Other 7 Total 30 CAPX of $142m remaining in FY ‘13, $174m in FY ‘14 and $169m in FY ’15. …. AND MORE TO COME Estimated delivery schedule – 8 remaining in FY ‘13, 11 in FY ‘14 and 11 thereafter. …. AND MORE TO COME …. AND MORE TO COM
Slide 15: Fleet Renewal & Expansion Funded by CFFO Through Fiscal 2012
15 FLEET RENEWAL & EXPANSION FUNDED BY CFFO THROUGH FISCAL 2012 Over a 13-year period, Tidewater has invested $4.1 billion in CapEx($3.6 billion in the “new” fleet), and paid out ~$1 billion through dividends and share repurchases. Over the same period, CFFO and proceeds from dispositions were $3.6
Slide 16: Strong Financial Position Provides Strategic Optionality
16 Cash & Cash Equivalents $137 million Total Debt $890 million Shareholders Equity $2,520 million Net Debt / Net Capitalization 23% Total Debt / Capitalization 26% STRONG FINANCIAL POSITION PROVIDES STRATEGIC OPTIONALITY As of September 30, 2012 ~$590 million of available liquidity as of 9/30/12, i
Slide 17: Total Revenue and Margin Fiscal 2008-2013
17 Total Revenue and Margin Fiscal 2008 - 2013 Note: Vessel operating margin is defined as vessel revenue less vessel operating expenses. Vessel revenue and operating margin for Q4-12 through Q2-13 adjusted for retroactive rate increases recognized in Q2-13. Total Revenue and Margin Fiscal 2008 - 20
Slide 18: New Vessel Trends by Vessel Type: Deepwater PSVs
18 New Vessel Trends by Vessel Type Deepwater PSVs $120 million, or 40%, of Vessel Revenue in Q2 Fiscal 2013 New Vessel Trends by Vessel Type Deepwater PSVs New Vessel Trends by Vessel Type Deepwater PSVs Q2 Fiscal 2013 Avg Day Rate: $27,034 Utilization: 84.6% - $0 $10,000 $20,000 $30,000 $40,000 $5
Slide 19: New Vessel Trends by Vessel Type: Deepwater AHTS
19 New Vessel Trends by Vessel Type Deepwater AHTS $24 million, or 8%, of Vessel Revenue in Q2 Fiscal 2013 New Vessel Trends by Vessel Type Deepwater AHTS New Vessel Trends by Vessel Type Deepwater AHTS Q2 Fiscal 2013 Avg Day Rate: $29,331 Utilization: 79.3% - $0 $10,000 $20,000 $30,000 $40,000 $50,
Slide 20: New Vessel Trends: Towing Supply/Supply Vessels
20 New Vessel Trends by Vessel Type Towing Supply/Supply Vessels $113 million, or 37%, of Vessel Revenue in Q2 Fiscal 2013 New Vessel Trends by Vessel Type Towing Supply/Supply Vessels New Vessel Trends by Vessel Type Towing Supply/Supply Vessels Q2 Fiscal 2013 Avg Day Rate: $13,877 Utilization: 87.
Slide 21: Potential for Future Earnings Acceleration
21 POTENTIAL FOR FUTURE EARNINGS ACCELERATION 272 vessel assumption (222 current new vessels + 30 under construction + 20 additional new vessels next year). ~$10.40 EPS ~$6.10 EPS ~$4.20 EPS POTENTIAL FOR FUTURE EARNINGS ACCELERATION POTENTIAL FOR FUTURE EARNINGS ACCELERATION Average Day rates $16,2
Slide 22: Jefferies 2012 Global Energy Conference
November 28, 2012 JEFFERIES 2012 GLOBAL ENERGY CONFERENCE Executive Vice President and Chief Investor Relations Officer Executive Vice President and CFO November 28, 2012 JEFFERIES 2012 GLOBAL ENERGY CONFERENCE Joseph M. Bennett Joseph M. Bennett Executive Vice President and Chief Investor Relations
Slide 23: Appendix
23 APPENDIX APPENDIX APPENDIX
Slide 24: New Fleet Driving Results
24 NEW FLEET DRIVING RESULTS Vessel Revenue ($) Average Fleet Count NEW FLEET DRIVING RESULTS NEW FLEET DRIVING RESULTS 218 Average New Vessels in Q2 2013 $302 million Vessel Revenue in Q2 2013 (92% from New Vessels) - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY 2009 FY 2010 FY 2011 FY
Slide 25: Cyclical Upturn Should Drive Margin Expansion
25 CYCLICAL UPTURN SHOULD DRIVE MARGIN EXPANSION Vessel Cash Operating Margin ($) Vessel Cash Operating Margin (%) CYCLICAL UPTURN SHOULD DRIVE MARGIN EXPANSION CYCLICAL UPTURN SHOULD DRIVE MARGIN EXPANSION $126 million Vessel Margin in Q2 FY2013 (95% from New Vessels) Q2 FY2013 Vessel Margin: 42% Q
Slide 26: Vessel Utilization by Segment
26 VESSEL UTILIZATION BY SEGMENT VESSEL UTILIZATION BY SEGMENT VESSEL UTILIZATION BY SEGMENT 30% 40% 50% 60% 70% 80% 90% Americas Asia/Pac MENA Sub Sah Africa
Slide 27: Vessel Dayrates by Segment
27 VESSEL DAYRATES 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. VESSEL DAYRATES BY SEGMENT VESSEL DAYRATES BY SEGMENT $4,000 $6,00
Slide 28: Current Revenue Mix: Quality of Customer Base
28 CURRENT REVENUE MIX Quality of Customer Base CURRENT REVENUE MIX Quality of Customer Base CURRENT REVENUE MIX Quality of Customer Base Our top 10 customers in Fiscal 2012 (4 Super Majors, 3 NOC’s and 3 IOC’s) accounted for 59% of our revenue Super Majors 35% NOC's 23% Others 42%
Slide 29: Rigs Contracted by Our Top 10 Customers
29 Source: ODS-Petrodata and Tidewater RIGS CONTRACTED BY OUR TOP 10 CUSTOMERS (Estimated as of November 2012) Other Operators Top 10 Customers Tidewater’s top 10 customers contract ~20% of the working worldwide jackup fleet and ~51% of the working worldwide floater fleet Jackups (354 Working Rigs)
Slide 30: Significant Average Age Improvement
30 SIGNIFICANT AVERAGE AGE IMPROVEMENT SIGNIFICANT AVERAGE AGE IMPROVEMENT SIGNIFICANT AVERAGE AGE IMPROVEMENT Assumptions: 1) Average vessel disposals per year in future (versus an average of 50+ vessel dispositions per year over last years). 2) Includes 30 vessels under construction(based on curre
Slide 31: Financial Strategy Focused on Creating Long-Term Shareholder Value
31 FINANCIAL STRATEGY FOCUSED ON CREATING LONG-TERM SHAREHOLDER VALUE FINANCIAL STRATEGY FOCUSED ON CREATING LONG-TERM SHAREHOLDER VALUE FINANCIAL STRATEGY FOCUSED ON CREATING LONG-TERM SHAREHOLDER VALUE Maintain Maintain Financial Strength Financial Strength EVA-Based Investments EVA-Based Investme