Tidewater Inc. · NYSE:TDW
Tidewater — Pareto Securities 29th Annual Energy Conference 2022
34 slides from Tidewater's conference presentation, September 2022
Slide 1: Pareto Securities 29th Annual Energy Conference
Pareto Securities 29th Annual Energy Conference September 2022 tdw.com
Slide 2: Forward-looking Statements
Forward-looking Statements In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Tidewater Inc. (the “Company”) notes that certain statements set forth in this presentation contain certain forward-looking statements which reflect our current view with
Slide 3: Agenda
Agenda 1. Company overview 2. Market outlook 3. Sustainability at Tidewater 4. Appendix tdw.com
Slide 4: 1. Company Overview
1. Company Overview tdw.com
Slide 5: Tidewater Overview
Tidewater Overview Introduction to Tidewater Company highlights ▪ Tidewater owns and operates one of the largest fleets of offshore support vessels (OSVs) in the industry ▪ Over 60 years of experience supporting offshore energy exploration and production activities worldwide since founding in 1955 F
Slide 6: Leading OSV Platform
Leading OSV Platform 1 2 3 Leading operator in terms of fleet size… Selected Peers by # of vessels (AHTS & PSVs) Most Experienced, Optimized Financial Stability Tidewater 165 Safe Operator OSV Fleet in Offshore Edison Chouest 140 ▪ Effectively created the ▪ Strategically positioned ▪ Robust balance
Slide 7: Global Footprint in All Major Offshore Regions
Global Footprint in All Major Offshore Regions Total Fleet - 165 OSVs Europe - 26 OSVs 59 1 3 4 106 18 PSV AHTS Americas - 33 OSVs Asia Pacific - 17 OSVs 1 2 Middle East - 42 OSVs 2 2 West Africa - 47 OSVs 2 2 2 11 4 3 West Africa -848 Vessels 5 6 2 3 3 5 5 3 10 14 13 11 15 3 12 12 4 0 8 3 8 Legend
Slide 8: Fleet Overview
Fleet Overview 106 ▪ Specially designed to supply offshore oil 20 ▪ Specially designed to transport as many and gas platforms as 150 personnel from shore bases to ▪ Transport variety of cargoes incl. fuel, offshore rigs, platforms and other water, drilling fluids, cement or mud in installations at h
Slide 9: Summary Financial Metrics
Summary Financial Metrics Revenue ($m) EBITDA ($m) 487 89 467 74 407 397 371 68 41 35 2018 2019 2020 2021 LTM Q2 2022 2018 2019 2020 2021 LTM Q2 2022 Gross debt, cash ($m) and equity ratio Net Debt/EBITDA (x) Gross debt Cash Equity ratio 439 398 294 1.0x 1.0x 224 0.9x 197 0.7x 152 175 150 175 0.6x 9
Slide 10: Peer Market Capitalization & Leverage Comparison
Peer Market Capitalization & Leverage Comparison $1,110 $366 $240 $175 $70 $58 $43 $42 $10 Equity Net Debt 7% 61% 66% 66% 57% 61% 81% 89% 98% 93% 43% 39% 39% 34% 34% 19% 2% 11% Note: Market data includes 4.05 million Jones Act warrants issued to parent of Swire Pacific Offshore, net of the warrants
Slide 11: Trading vs. Fleet Appraisal Value Comparison
Trading vs. Fleet Appraisal Value Comparison Total Enterprise Value-to-Vessel Appraisal Value Comparison PSVs Deck Size Vessel Count Appraised Value 2 <700m 23 $117.7 700 - 900m 2 41 516.6 >900m 2 42 744.9 106 $1,379.2 AHTSs BHP Vessel Count Appraised Value 4 - 8K 27 $72.0 8 - 12K 17 44.9 12 - 16K 4
Slide 12: Significant Earnings Leverage and Free Cash Generation
Significant Earnings Leverage and Free Cash Generation Free Cash Flow Conversion (%) (1) 61% 77% 84% 87% 90% 91% 91% Vessel-level Cash Margin 66% $700 $666 $95 63% $600 $95 59% $500 $95 55% USD in Millions $400 $95 49% $300 $95 42% $103 $18.5k day rate $200 Pro forma SPO acquisition scenario in-line
Slide 13: Historical Performance: Day Rate and Vessel Cash Margin
Historical Performance Day Rate and Vessel Cash Margin $25,000 60% 50% $20,000 Vessel Cash Margin (%) Day Rate in USD 40% $15,000 30% $10,000 20% $5,000 Significant improvement in day rates and cash margins, 10% approaching 2016 levels $0 0% Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016 Q1
Slide 14: OSV Leading Edge Contracted Day Rate Progression
OSV Leading Edge Contracted Day Rate Progression Number of Leading Edge Vessel Class 2021 Day Rate 2022 Day Rate Vessels Contracts >900m2 PSV 42 $14,382 $16,604 $23,447 700 – 900m2 PSV 41 11,323 13,889 15,358 <700m2 PSV 23 9,643 10,477 15,982 >16K BHP AHTS 11 16,980 19,737 - 12 – 16K BHP AHTS 4 11,3
Slide 15: 2. Market Outlook
2. Market Outlook tdw.com
Slide 16: Commodity Backdrop
Commodity Backdrop Brent and WTI prices 2021 – 2022 YTD $140 $120 $100 $80 $60 $40 $20 $0 WTI Brent Source: Bloomberg 16 tdw.com
Slide 17: Committed Capital Spending & Demand Overview
Committed Capital Spending & Demand Overview Comments Global Offshore Commitments by Water Depth ($bn) $160 Robust oil price environment $140 ▪ Global oil demand continuing to show signs of recovery $33 $120 towards pre-Covid levels and beyond $100 ▪ $90 – 100 Brent oil price has led to significant
Slide 18: Global OSV Utilization Overview
Global OSV Utilization Overview Utilisation, Global, AHTS >4,000 BHP Utilisation, Global, PSV >1,000 dwt No. of OSVs Utilisation, % No. of OSVs Utilisation, % 2,000 100% 2,000 100% 1,800 95% 1,800 95% 1,600 90% 1,600 90% 1,400 85% 1,400 85% 1,200 80% 1,200 80% 1,000 75% 1,000 75% 800 70% 800 70% 600
Slide 19: International PSV Supply Dynamics
International PSV Supply Dynamics Global PSV Fleet Vessel Status (1) 1,600 1,400 1,200 No. of OSVs 1,000 800 600 Substantial 400 “headline” 200 PSV supply 0 Laid-up Active Vessel Supply Status: 700 – 900m2 Deck Area Vessel Supply by Status: >900m2 Deck Area 350 350 300 300 250 250 No. of OSVs No. of
Slide 20: OSV Day Rate Dynamics
OSV Day Rate Dynamics PSV TC Rates AHTS TC Rates 50,000 70,000 60,000 40,000 50,000 30,000 40,000 30,000 20,000 20,000 10,000 10,000 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 PSV
Slide 21: Newbuild Economics Considerations
Newbuild Economics Considerations Newbuild Economics Require ~$38k/d Day Rate Over 20 Year Useful Life $37k/day Assumptions $38k/day 39 18 yrs. Newbuild Cost ($m) $65 $39k/day Assumed day rate ($k/day) $38 Day rate ($k/day) 20 yrs. Opex rate ($k/day) $8.5 38 Drydocking Cost (every 5 years) ($m) $1.2
Slide 22: 3. ESG at Tidewater
3. ESG at Tidewater tdw.com
Slide 23: Committed to Sustainability
Committed to Sustainability Environment Social Governance ▪ Continued operational efficiency ▪ During 2021, we recorded a ▪ Operating ethically with a zero improvements and reduced Total Recordable Incident Rate tolerance to bribery is core to emissions through fuel and (“TRIR”) of 0.67 per million
Slide 24: Sustainability Report
Sustainability Report ▪ Tidewater’s second 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/sustainability/sustainabilit
Slide 25: Key Areas of Focus on Environment
Key Areas of Focus on Environment ▪ Environmental Management ▪ Responsible environmental stewardship to prevent Tidewater is proud to be a primary partner of Sea pollution or environmental damage to the land, water and Life Rescue, a U.S.-based charitable organization air whose goal is to dramatical
Slide 26: Key Areas of Focus on Social
Key Areas of Focus on Social ▪ People Tidewater has a long track record of supporting many organizations globally, including the ▪ Committed to providing the safest working following: environment and the highest level of training ▪ West Houston Assistance Ministries possible ▪ Aberdeen Seamen’s Miss
Slide 27: Safety Leadership Remains a First Priority
Safety Leadership Remains a First Priority Total Recordable Case Frequency 2012-2021 TRCF = (LTIs + RECs) x 1,000,000 / Exposure Hours 3.00 1.00 1.00 2.50 2.00 0.63 0.0 2.00 0.67 0.0 TDW 10 Year Average TDW CY 2021 2.00 1.50 1.00 0.50 0.00 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Tidewater
Slide 28: Key Areas of Focus on Governance
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 suppliers need to comply
Slide 29: Summary
Summary World’s largest publicly listed OSV company Strong balance sheet and liquidity position Significant earnings leverage Strong market fundamentals Reputable platform and industry leader in ESG 29 tdw.com
Slide 30: 4. Appendix
4. Appendix tdw.com
Slide 31: Non-GAAP Financial Measures – EBITDA and Adjusted EBITDA
Non-GAAP Financial Measures – EBITDA and Adjusted EBITDA Reconciliation Adjusted EBITDA 2018 – 2019 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 7,59
Slide 32: Non-GAAP Financial Measures – EBITDA and Adjusted EBITDA
Non-GAAP Financial Measures – EBITDA and Adjusted EBITDA Reconciliation Adjusted EBITDA 2020 – 1H 2021 Q12020 Q22020 Q32020 Q42020 2020 Q12021 Q22021 Q32021 Q42021 2021 Net Loss (18,524) (110,664) (38,081) (29,427) (196,696) (35,527) (29,647) (26,407) (38,079) (129,660) Interest and other debt cost
Slide 33: Non-GAAP Financial Measures – EBITDA and Adjusted EBITDA
Non-GAAP Financial Measures – EBITDA and Adjusted EBITDA Reconciliation Adjusted EBITDA 1H 2022 Q12022 Q22022 1H2022 Net Loss (12,271) (25,014) (37,285) Interest and other debt cost 4,175 4,284 8,459 Income Tax (benefit) expense 5,218 6,619 11,837 Depreciation 17,673 22,614 40,287 Amortization of de
Slide 34: Thank you
‘|’ TIDEWATER Thank you tdw.com
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