Tidewater Inc. · NYSE:TDW
Tidewater — GHS 100 Energy Conference 2014
30 slides from Tidewater's conference presentation, Jun 30, 2014
Slide 1: GHS 100 Energy Conference
GHS 100 Energy Conference June 25, 2014 Quinn P. Fanning EVP & CFO Joseph M. Bennett EVP & Chief IRO Exhibit 99.1
Slide 2: 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 statements set forth in this presentation provide other than historical information and are forward looking. The actual achievement of any
Slide 3: Key Tidewater Takeaways
• Consistent goal of “Best in Class” safety and compliance culture • History of earnings growth and solid returns • Largest “NEW” OSV fleet in the industry, operating in over 50 countries with ~9,000 employees worldwide • Solid balance sheet and ready liquidity allows us to continue to act upon avai
Slide 4: Safety Record Rivals Leading Companies
It’s a task that can’t be turned loose not for a microsecond or an accident will strike without pity. Operating safely offshore is like holding a snake by its head. Safety Record Rivals Leading Companies • Safe Operations is Priority #1 • Stop Work Obligation • Safety performance is 25% of mgt. ince
Slide 5: Working Offshore Rig Trends
Source: ODS-Petrodata Note: 43 “Other” rigs, along with the Jackups and Floaters, provide a total working rig count of 705 in June 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) June 2014 Working Rigs 603 538 705 Rigs Under Construction 186 118 245 OSV Global Population 2,033 2,599 3,126 OSV’s Under Construction 736 367 469 OSV/Rig Ratio 3.37 4.83 4.43 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 June 2014, there are approximately 469 additional AHTS and PSV’s (~15% of the global fleet) under construction. Global fleet is estimated at 3,126 vessels, including ~700 vessels that are 25+ yrs old (25%). The Worldwide OSV Flee
Slide 8: Tidewater's Active Fleet
Year Built Deepwater vessels Towing Supply/Supply Other vessels 245 “New” vessels – 6.9 avg yrs 23 “Traditional” vessels – 26.6 avg yrs Tidewater’s Active Fleet As of March 31, 2014
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 (2,383 total vessels for 400+ owners) Vessel Population by Owner (AHTS and PSVs only) Estimated as of June 2014
Slide 10: Our Global Footprint – Vessel Count by Region
Americas 66 (25%) SS Africa/Europe 135 (50%) MENA 44 (16%) Asia/Pac 23 (9%) In 4Q FY 2014, ~12% 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: Our Global Footprint – Vessel Class by Region
New Avg. Vessels NBV Deepwater 31 $19.3M Towing Supply 14 $10.7M Other 9 $3.5M 54 New Avg. Vessels NBV Deepwater 10 $17.0M Towing Supply 31 $12.2M Other 0 0 41 New Avg. Vessels NBV Deepwater 39 $28.3M Towing Supply 46 $12.3M Other 42 $1.9M 127 New Avg. Vessels NBV Deepwater 8 $25.0M Towing Supply 14
Slide 12: A Broad Portfolio of New High Spec OSVs
Current Future DWT Fleet CIP Fleet Current Future BHP Fleet CIP Fleet Current Future BHP Fleet CIP Fleet A Broad Portfolio of New High Spec OSVs Deepwater PSV Deepwater PSV Deepwater AHTS Deepwater AHTS Towing Supply Vessel information is as of 3/31/14. CIP=Construction in Process. 5,000-6,000 4,000
Slide 13: The Largest Modern OSV Fleet in the Industry
Vessel Count (2) Total Cost (2) Average Cost per Vessel Deepwater PSVs 99 $2,771m $28.0m Deepwater AHTSs 12 $387m $32.3m Towing Supply/Supply 111 $1,670m $15.0m Other 53 $227m $4.3m TOTALS: 275 $5,055m (1) $18.4m (1) ~$4.5b (89%) funded through 3/31/14 (2) Vessel count and total cost is net of 26 ve
Slide 14: Vessels Under Construction… and More to Come
Count Deepwater PSVs 23 Deepwater AHTSs - Towing Supply/Supply 6 Other 1 Total 30 Estimated delivery schedule – 12 in FY ’15, 16 in FY ‘16 and 2 thereafter. CAPX of $368m in FY ’15, $193m in FY ‘16 and $12m thereafter. Vessels Under Construction* As of March 31, 2014 …and More to Come
Slide 15: Strong Financial Position Provides Strategic Optionality
Cash & Cash Equivalents $60 million Total Debt $1,515 million Shareholders Equity $2,679 million Net Debt / Net Capitalization 35% Total Debt / Capitalization 36% As of March 31, 2014 ~$660 million of available liquidity as of 3/31/14, including $600 million of unused capacity under the company’s re
Slide 16: Debt Maturities Limited for Several Years
Debt Maturities as of 3/31/14 Limited for Several Years Fiscal Year
Slide 17: Earnings per Share by Fiscal Year
** 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 18: 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
Slide 19: New Vessel Trends: Deepwater PSVs
$174 million, or 48%, of Vessel Revenue in Q4 Fiscal 2014 New Vessel Trends by Vessel Type Deepwater PSVs
Slide 20: New Vessel Trends: Towing Supply/Supply Vessels
$121 million, or 33%, of Vessel Revenue in Q4 Fiscal 2014 New Vessel Trends by Vessel Type Towing Supply/Supply Vessels
Slide 21: Tidewater's New Subsea Business
Recent delivery of six work-class remotely operated vehicles (ROV ) Tidewater’s New Subsea Business
Slide 22: Tidewater's Future
• Continue to improve upon stellar safety and compliance programs • Maintain solid balance sheet and financial flexibility to deal with industry uncertainties and seize opportunities when presented • Disciplined deployment of cash to expand vessel and ROV fleet capabilities • Return capital to share
Slide 23: GHS 100 Energy Conference
GHS 100 Energy Conference June 25, 2014 Quinn P. Fanning EVP & CFO Joseph M. Bennett EVP & Chief IRO
Slide 24: @P rwewares
@P rwewares ROMS POLLUK
Slide 25: 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 26: New Vessel Trends: Deepwater AHTS
$25 million, or 7%, of Vessel Revenue in Q4 Fiscal 2014 New Vessel Trends by Vessel Type Deepwater AHTS Q4 Fiscal 2014 Avg Day Rate: $31,158 Utilization: 73.9%
Slide 27: 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 28: Total Revenue and Margin Fiscal 2008-2014
Note: Vessel operating margin is defined as vessel revenue less vessel operating expenses Prior peak period (FY2009) averaged quarterly revenue of $339M, quarter operating margin of $175.6M at 51.8% Total Revenue and Margin Fiscal 2008-2014
Slide 29: Cyclical Upturn should Drive Margin Expansion
Vessel Cash Operating Margin ($) Vessel Cash Operating Margin (%) $156 million Vessel Margin in Q4 FY2014 (96% from New Vessels) Q4 FY2014 Vessel Margin: 43% Cyclical Upturn should Drive Margin Expansion
Slide 30: Quality of Customer Base
Super Majors 37% NOC's 22% Others 41% 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