Tidewater Inc. · NYSE:TDW
Tidewater — Pareto Securities' Offshore Vessel Forum 2014
30 slides from Tidewater's conference presentation, Mar 25, 2014
Slide 1: Pareto Securities' Offshore Vessel Forum
Pareto Securities’ Offshore Vessel Forum March 19, 2014 Jeffrey M. Platt President & CEO 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 ~8,000 employees worldwide • Solid balance sheet and ready liquidity allows us to continue to act upon avai
Slide 4: Safety Record Rivals Leading Companies
Safety Record Rivals Leading Companies • Safe Operations is Priority #1 • Stop Work Obligation • Safety performance is 25% of mgt. incentive comp
Slide 5: Working Offshore Rig Trends
Source: ODS-Petrodata Note: “Other” rigs, along with the Jackups and Floaters, provide a total working rig count of in March 2014. Working Offshore Rig Trends
Slide 6: Drivers of our Business "Peak to Present"
July 2008 (Peak) Jan. 2011 (Trough) March 2014 Working Rigs 603 538 712 Rigs Under Construction 186 118 236 OSV Global Population 2,033 2,599 3,088 OSV’s Under Construction 736 367 463 OSV/Rig Ratio 3.37 4.83 4.34 Source: ODS-Petrodata and Tidewater Drivers of our Business “Peak to Present”
Slide 7: The Worldwide OSV Fleet
Source: ODS-Petrodata and Tidewater As of March 2014, there are approximately additional AHTS and PSV’s (~15% of the global fleet) under construction. Global fleet is estimated at 3,088 vessels, including ~700 vessels that are 25+ yrs old (25%). The Worldwide OSV Fleet (Includes AHTs and PSVs only)
Slide 8: Tidewater's Active Fleet
Tidewater’s Active Fleet As of December 31, 2013
Slide 9: Vessel Population by Owner
Source: ODS-Petrodata and Tidewater Vessel Population by Owner (AHTS and PSVs only) Estimated as of March
Slide 10: Our Global Footprint – Vessel Count by Region
In 3Q FY 2014, ~10% of vessel revenue was generated in the U.S. by ~ 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, Tidewater has currently under construction five additional U.S.-flagged deepw
Slide 11: Our Global Footprint – Vessel Class by Region
Our Global Footprint – Vessel Class by Region (Excludes stacked vessels – as of 12/31/13 ) Vessel count info is as of 12/31/13, and includes leased vessels. Avg NBV excludes the impact of leased vessels which have no NBV. Average NBV of the total 25 Traditional vessels is $0.95M at 12/31/13.
Slide 12: A Broad Portfolio of New High Spec OSVs
A Broad Portfolio of New High Spec OSVs
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: 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 15: Debt Maturities Limited for Several Years
Debt Maturities Limited for Several Years
Slide 16: 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 17: 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 18: New Vessel Trends by Vessel Type: Deepwater PSVs
$165 million, or 46%, of Vessel Revenue in Q3 Fiscal 2014 New Vessel Trends by Vessel Type Deepwater PSVs
Slide 19: New Vessel Trends by Vessel Type: Towing Supply/Supply
$124 million, or 35%, of Vessel Revenue in Q3 Fiscal 2014 New Vessel Trends by Vessel Type Towing Supply/Supply Vessels
Slide 20: Tidewater's New Subsea Business
Recent delivery of six work-class remotely operated vehicles (ROV ) Tidewater’s New Subsea Business
Slide 21: 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 22: Pareto Securities' Offshore Vessel Forum
Pareto Securities’ Offshore Vessel Forum March 19, 2014 Jeffrey M. Platt President & CEO Joseph M. Bennett EVP & Chief IRO
Slide 23: QP rinzwares
QP rinzwares ROMS POLLUK
Slide 24: 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 25: 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 26: Fleet Renewal & Expansion Largely 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. Fleet Renewal & Expansion Largely Funded by CFFO
Slide 27: 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 $175.6M at 51.8% Total Revenue and Margin Fiscal 2008-2014
Slide 28: Cyclical Upturn should Drive Margin Expansion
Vessel Cash Operating Margin ($) 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
Slide 29: New Vessel Trends by Vessel Type: Deepwater AHTS
$30 million, or 8%, of Vessel Revenue in Q3 Fiscal 2014 New Vessel Trends by Vessel Type Deepwater AHTS
Slide 30: 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
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