Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - TIDEWATER INC | d229401d8k.htm |
| EX-99.2 - TRANSCRIPT OF THE PRESENTATION - TIDEWATER INC | d229401dex992.htm |
 QUINN P.
FANNING QUINN P. FANNING
Executive VP and CFO
Executive VP and CFO
BARCLAYS CAPITAL 2011
CEO ENERGY-POWER CONFERENCE
BARCLAYS CAPITAL 2011
BARCLAYS CAPITAL 2011
CEO ENERGY-POWER CONFERENCE
CEO ENERGY-POWER CONFERENCE
DEAN E. TAYLOR
DEAN E. TAYLOR
Chairman, President and CEO
Chairman, President and CEO
JOSEPH M. BENNETT
JOSEPH M. BENNETT
Executive
Executive
VP
VP
and
and
Chief
Chief
Investor Relations Officer
Investor Relations Officer
Exhibit 99.1
Sept. 7, 2011 |
 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
forecasted results, or the unfolding of future economic or business developments in a way
anticipated or projected by the Company, involve numerous risks and uncertainties that
may cause the Company’s actual performance to be materially different from that
stated or implied in the forward-looking statement. Among those risks and
uncertainties, many of which are beyond the control of the Company, include, without
limitation, volatility in worldwide energy demand and oil and gas prices; fleet additions
by competitors and industry overcapacity; changes in capital spending by customers in the
energy industry for offshore
exploration,
field
development
and
production;
changing
customer
demands
for vessel specifications, which may make some of our older vessels technologically
obsolete for certain customer projects or in certain markets; uncertainty of global
financial market conditions and difficulty in accessing credit or capital; acts of
terrorism and piracy; significant weather conditions; unsettled political conditions,
war, civil unrest and governmental actions, such as expropriation, especially in higher
risk countries where we operate; foreign currency fluctuations; labor influences
proposed by international conventions; increased regulatory burdens and oversight
following
the
Deepwater
Horizon
incident;
and
enforcement
of
laws
related
to
the
environment,
labor
and
foreign
corrupt
practices.
Readers
should
consider
all
of
these
risk factors as well as other information contained in this report.
Phone:
504.568.1010
Fax:
504.566.4580
Web:
www.tdw.com
Email:
connect@tdw.com
FORWARD-LOOKING STATEMENTS
FORWARD-LOOKING STATEMENTS
FORWARD-LOOKING STATEMENTS
2 |
 KEY
TAKEAWAYS KEY TAKEAWAYS
KEY TAKEAWAYS
•
Culture of safety & operating excellence
•
History of earnings growth and solid returns
•
Unmatched scale and scope of operations
•
World’s largest and newest fleet provides
basis for continued earnings growth
•
Strong balance sheet allows us to act upon
available opportunities
3 |
 SAFETY REMAINS A TOP
PRIORITY SAFETY REMAINS A TOP PRIORITY
SAFETY REMAINS A TOP PRIORITY
SM
Operating safely offshore is
like holding a snake by its head.
4
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
SAFETY RECORD RIVALS
SAFETY RECORD RIVALS
LEADING COMPANIES
LEADING COMPANIES
5
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
CALENDAR YEARS
TOTAL RECORDABLE INCIDENT RATES
TIDEWATER
DOW CHEMICAL
CHEVRON
EXXON/MOBIL |
 6
**
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
Fiscal
2010 is
exclusive of $.66 per share Venezuelan provision, a $.70 per share tax benefit
related to favorable resolution of tax litigation and a $0.22 per share charge
for the proposed settlement with the SEC of the company’s FCPA matter. EPS in Fiscal 2011 is exclusive of total $0.21 per share charges for
settlements with
DOJ
and
Government
of
Nigeria
for
FCPA
matters,
a
$0.08
per
share
charge
related
to
participation
in
a
multi-company
U.K.-based
pension plan and a $0.06 per share impairment charge related to certain
vessels. Adjusted Return
On Avg. Equity
4.3% 7.2%
12.4%
18.5% 18.3%
19.5%
11.4% 4.0%
Adjusted EPS**
Adjusted EPS**
HISTORY OF EARNINGS GROWTH
AND SOLID THROUGH-CYCLE RETURNS
HISTORY OF EARNINGS GROWTH
HISTORY OF EARNINGS GROWTH
AND SOLID THROUGH-CYCLE RETURNS
AND SOLID THROUGH-CYCLE RETURNS
$2.40
$5.20
$7.89
$1.03
$1.78
$3.33
$5.94
$6.39
$0.00
$2.00
$4.00
$6.00
$8.00
Fiscal
2004
Fiscal
2005
Fiscal
2006
Fiscal
2007
Fiscal
2008
Fiscal
2009
Fiscal
2010
Fiscal
2011 |
 7
Unique global footprint
50+ years of Int’l experience
International (non U.S.) markets generally
characterized by:
•
More growth
•
Longer contracts
•
Better utilization
•
Higher dayrates
Solid customer base of NOC’s and IOC’s
INTERNATIONAL STRENGTH
INTERNATIONAL STRENGTH
INTERNATIONAL STRENGTH |
 OUR
GLOBAL FOOTPRINT Vessel Distribution by Region
(excludes stacked vessels –
as of 6/30/11)
OUR GLOBAL FOOTPRINT
OUR GLOBAL FOOTPRINT
Vessel Distribution by Region
Vessel Distribution by Region
(excludes stacked vessels –
(excludes stacked vessels –
as of 6/30/11)
as of 6/30/11)
8
North America
15
(6%)
Far East
28
(10%)
Europe / M.E.
39
(15%)
West Africa
125
(48%)
Central/South America
54
(21%)
International / U.S.
2011: 94% / 6%
2000: 62% / 38% |
 Source: ODS-Petrodata and Tidewater
Tidewater
Competitor #2
Competitor #3
Competitor #4
Competitor # 5
Competitor #1
Avg.
All Others (1,932 total
vessels for
350+ owners)
Tidewater
AHTS
and
PSV
fleet
includes
145
vessel
additions
since
2000
265
132
107
73
66
65
5
0
100
200
300
400
9
VESSEL POPULATION BY OWNER
(AHTS and PSV’s only) –
Estimated as of August 2011
VESSEL POPULATION BY OWNER
(AHTS and PSV’s only) –
Estimated as of August 2011 |
 10
CURRENT REVENUE MIX
Quality of Customer Base
CURRENT REVENUE MIX
CURRENT REVENUE MIX
Quality of Customer Base
Quality of Customer Base
Our top 10 customers in Fiscal 2011 (5 Super Majors,
3 NOC’s and 2 large independents) accounted for 63% of our revenue
Super Majors
36%
NOC's
28%
Others
36% |
 11
At 6/30/11, 196 new vessels were in our fleet with ~5.4 year average age
Vessel Commitments
Jan.
’00
–
June
‘11
(1)
$3,354m (85%) funded through 6/30/11
THE LARGEST MODERN OSV FLEET
IN THE INDUSTRY….
THE LARGEST MODERN OSV FLEET
THE LARGEST MODERN OSV FLEET
IN THE INDUSTRY….
IN THE INDUSTRY….
Vessel Count
Estimated Cost
AHTS
102
$1,793m
PSV’s
88
$1,843m
Crewboats & Tugs
67
$289m
TOTALS:
257
$3,925m
(1) |
 12
Count
AHTS
17
PSV
22
Crew and Tug
1
Total
40
Vessels Under Construction*
As of June 30, 2011
* Includes 12 new vessel purchase commitments at 6/30/11
Estimated
delivery
schedule
–
25
in
FY
‘12,
11
in
FY
‘13
and
4
thereafter.
CAPX of $400m in remainder of FY ‘12, $147m in FY ‘13 and $24m in FY
’14. …. AND MORE TO COME
…. AND MORE TO COME
…. AND MORE TO COME |
 13
Fiscal Year
Actual vessel deliveries through 6/30/11; estimated vessel deliveries based on
commitments to build or acquire as of 6/30/11
Through 6/30/11, vessel
commitments include 257 vessels
with a capital cost of $3.925 billion
THROUGH-CYCLE, EVA-BASED INVESTMENT;
BALANCE BETWEEN “BUY”
and “BUILD”
THROUGH-CYCLE, EVA-BASED INVESTMENT;
THROUGH-CYCLE, EVA-BASED INVESTMENT;
BALANCE BETWEEN “BUY”
BALANCE BETWEEN “BUY”
and “BUILD”
and “BUILD” |
 14
RECENT VESSEL COMMITMENTS
RECENT VESSEL COMMITMENTS
RECENT VESSEL COMMITMENTS
0
2
4
6
8
10
12
9/30/09
Qtr
12/31/09
Qtr
3/31/10
Qtr
6/30/10
Qtr
9/30/10
Qtr
12/31/10
Qtr
3/31/11
Qtr
6/30/11
Qtr
Amounts
depict
vessel
count
and
total
cost
in
quarter
commitment
was
made
to
acquire
(not
when
delivery
or
payments
were
made)
$96M
$55M
$72M
$179M
1 MPSV
1 PSV
4 AHTS
6 AHTS
6 AHTS
3 PSV’s
48 vessels over last two years with
a total capital cost of $958 million
$177M
4 PSV’s
4 AHTS
1 PSV
9 AHTS
$139M
$101M
2 PSV’s
4 PSV
3 AHTS
$139M |
 15
SIGNIFICANT AVERAGE
AGE IMPROVEMENT
SIGNIFICANT AVERAGE
SIGNIFICANT AVERAGE
AGE IMPROVEMENT
AGE IMPROVEMENT
20
16
6
Assumptions:
1)
Average 45 vessel disposals per year in future (versus an average of 52 vessel dispositions per year
over last 3 years). 2)
Includes 40 vessels under construction, including 12 vessel purchase commitments (based on current
estimated delivery schedule), plus additional newbuilds/acquisitions of ~20 vessels per year
(approximately $500 million in new capital commitments per year). Tidewater is not committed to
spending $500 million annually, but we use this assumption in estimating average fleet age in
the future. |
 16
Over a
12-year
period,
Tidewater
has
invested
$3.8
billion
in
CapEx
($3.3
billion
in
the
“new”
fleet),
and paid out $995 million through dividends and share repurchases. Over the
same period, CFFO and proceeds from dispositions were $3.4 billion and $690
million, respectively $ in millions
CFFO
Fiscal Year
FLEET RENEWAL & EXPANSION
FUNDED BY CFFO THROUGH FISCAL 2011
FLEET RENEWAL & EXPANSION
FLEET RENEWAL & EXPANSION
FUNDED BY CFFO THROUGH FISCAL 2011
FUNDED BY CFFO THROUGH FISCAL 2011 |
 17
Senior Unsecured Notes
$590 million
Average Life to Maturity (as of 9/30/11)
~ 8.5 years
Weighted Average Coupon
4.30%
Term Loan
$125 million
Revolving Line of Credit
$450 million
Remaining Term
~ 4½
years
Interest Rate
LIBOR plus 1.5% to
2.25%, based on leverage
Private Placement Financings:
Private Placement Financings:
New Credit Facilities:
New Credit Facilities:
~ $40 million in senior notes maturities in Fiscal 2012 (July)
RECENT FINANCINGS WILL FUND GROWTH
AT AN ATTRACTIVE RELATIVE COST
RECENT FINANCINGS WILL FUND GROWTH
RECENT FINANCINGS WILL FUND GROWTH
AT AN ATTRACTIVE RELATIVE COST
AT AN ATTRACTIVE RELATIVE COST |
 18
Pro Forma as of June 30, 2011 *
Cash & Cash Equivalents
$321 million
Total Debt
$825 million
Shareholders Equity
$2,528 million
Net Debt / Net Capitalization
17%
Total Debt / Capitalization
25%
* Pro forma based on (i) $165 million private placement financing completed in August
2011 and (ii) $40 million in senior note maturities in July 2011. Pro Forma
liquidity as of 6/30/11 of ~$900 million includes $575 million available under
bank credit facilities. STRONG FINANCIAL POSITION
PROVIDES STRATEGIC OPTIONALITY
STRONG FINANCIAL POSITION
STRONG FINANCIAL POSITION
PROVIDES STRATEGIC OPTIONALITY
PROVIDES STRATEGIC OPTIONALITY |
 19
Quarter Ended
6/30/11
6/30/10
Revenues
$255
$263
Net Earnings
$25
$40
EPS
$0.48
$0.77
Net Cash from Operations
$27
$53
Capital Expenditures
$70
$141
$ in Millions, Except Per Share Data
RECENT FINANCIAL RESULTS
REFLECT CYCLICAL DOWNTURN
RECENT FINANCIAL RESULTS
RECENT FINANCIAL RESULTS
REFLECT CYCLICAL DOWNTURN
REFLECT CYCLICAL DOWNTURN |
 20
FLEET CASH OPERATING MARGINS
FLEET CASH OPERATING MARGINS
FLEET CASH OPERATING MARGINS
Traditional Vessels
New Vessels
Cash Oper Margin
38.6% 37.6% 46.5%
41.9%
36.9% 38.7% 49.1%
54.6%
51.9% 51.3% 46.8%
39.3%
Note: Cash operating margins are defined as vessel revenue less
vessel operating expenses
Fiscal Years |
 21
WHERE COULD FISCAL 2014 FIND US?
Potential for Earnings Acceleration
WHERE COULD FISCAL 2014 FIND US?
WHERE COULD FISCAL 2014 FIND US?
Potential for Earnings Acceleration
Potential for Earnings Acceleration
Avg. Dayrates
$14,091*
$15,500
(+ 10%)
$17,050
(+ 10%)
84.4%*
85.0%
90.0%
~$3.50
EPS
~$5.25
EPS
~$8.75
EPS
271 vessel assumption (196 current new vessels + 40 under construction + ~ 20
additional new vessels per year for two years).
* 6/30/11 quarterly actual stats
This info is not meant to be a
prediction of future earnings
performance, but simply an
indication of earning sensitivities
resulting from future fleet
additions and reductions and
varying operating assumptions
~$400M+
EBITDA
~$500M
EBITDA
~$700M
EBITDA
21 |
 22
FINANCIAL STRATEGY FOCUSED
ON CREATING LONG-TERM
SHAREHOLDER VALUE
FINANCIAL STRATEGY FOCUSED
FINANCIAL STRATEGY FOCUSED
ON CREATING LONG-TERM
ON CREATING LONG-TERM
SHAREHOLDER VALUE
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 |
 QUINN P.
FANNING QUINN P. FANNING
Executive VP and CFO
Executive VP and CFO
BARCLAYS CAPITAL 2011
CEO ENERGY-POWER CONFERENCE
BARCLAYS CAPITAL 2011
BARCLAYS CAPITAL 2011
CEO ENERGY-POWER CONFERENCE
CEO ENERGY-POWER CONFERENCE
Sept. 7, 2011
Sept. 7, 2011
DEAN E. TAYLOR
DEAN E. TAYLOR
Chairman, President and CEO
Chairman, President and CEO
JOSEPH M. BENNETT
JOSEPH M. BENNETT
Executive VP and Chief
Executive VP and Chief
Investor Relations Officer
Investor Relations Officer |
 24
APPENDIX
APPENDIX
APPENDIX |
 25
Source: ODS-Petrodata and Tidewater
GOM
accounts
for
34
of
the
54
working
jackup
count
variance
from
June
2008
(Peak) to August 2011 (post-Horizon)
GOM Semi & Drillship count drops by 7 units (from 31 to 24) between April 2010
and August 2011; offset by an increase of 23 units in the rest of world
Jackups
Semis
Drillships
Total
June 2008
(Peak)
379
145
30
554
Late-April 2010
(pre-Horizon)
323
150
46
519
August 2011
(post-Horizon)
325
159
53
537
WORKING RIG COUNTS
“Peak to Present”
WORKING RIG COUNTS
WORKING RIG COUNTS
“Peak to Present”
“Peak to Present” |
 26
Other Operators
Top 10 Customers
Tidewater’s top 10 customers contract ~24% of the working worldwide
jackup fleet and ~50% of the working worldwide floater fleet
Jackups
(325 Working Rigs)
Floater Rigs
(212 Working Rigs)
78
247
107
Source: ODS-Petrodata and Tidewater
Other Operators
Top 10 customers
105
RIGS CONTRACTED BY OUR
TOP 10 CUSTOMERS
(Estimated as of August 2011)
RIGS CONTRACTED BY OUR
RIGS CONTRACTED BY OUR
TOP 10 CUSTOMERS
TOP 10 CUSTOMERS
(Estimated as of August 2011)
(Estimated as of August 2011) |
 27
Source: ODS-Petrodata and Tidewater
As of late-August 2011, there are approximately 456 additional AHTS and
PSV’s (~17% of the global fleet) under construction.
Global
fleet
estimated
at
2,640
vessels,
including
348
vessels
that
are
30+
yrs
old
(13%),
and
another
410
vessels
that
are
25-29
yrs
old
(16%)
Vessels > 25 years old today
THE WORLDWIDE OSV FLEET –
RETIREMENTS
EXPECTED TO EXCEED NEW DELIVERIES
THE WORLDWIDE OSV FLEET –
THE WORLDWIDE OSV FLEET –
RETIREMENTS
RETIREMENTS
EXPECTED TO EXCEED NEW DELIVERIES
EXPECTED TO EXCEED NEW DELIVERIES
(Includes
AHTS
and
PSV’s
only)
Estimated
as
of
August
2011 |
 28
* Dayrate and utilization information is for all classes of vessels operating
international $100 change in dayrate = ~$7.9M in annual revenue
1% change in utilization = ~$15.1M in annual revenue
INTERNATIONAL VESSELS
Dayrates and Utilization
INTERNATIONAL VESSELS
INTERNATIONAL VESSELS
Dayrates and Utilization
Dayrates and Utilization
28 |
 INTERNATIONAL VESSELS
DAYRATES
INTERNATIONAL VESSELS
INTERNATIONAL VESSELS
DAYRATES
DAYRATES
* Dayrate and utilization information is for all classes of vessels operating
international $3
,000
$6
,000
$9,000
$12,000
$15,000
$18,000
06/08
12/08
06/
09
12/09
06/10
12/10
06/
11
New Vessels
Traditional Vessels
29 |
 DOMESTIC VESSELS
Dayrates and Utilization
DOMESTIC VESSELS
DOMESTIC VESSELS
Dayrates and Utilization
Dayrates and Utilization
* Dayrate and utilization information is for all classes of vessels operating in the
U.S. 30 |
 DOMESTIC VESSEL DAYRATES
DOMESTIC VESSEL DAYRATES
DOMESTIC VESSEL DAYRATES
* Dayrate and utilization information is for all classes of vessels operating in the
U.S. 31
$4,000
$8,000
$12,000
$16,000
$20,000
$24,000
06/08
12/08
06/
09
12/09
06/10
12/10
06/11
New Vessels
Traditional Vessels |
 OSX
42% S&P 500 14%
DJIA 27%
TDW 18%
RETURNS vs the MARKET
FIVE YEAR STOCKHOLDER RETURN
RETURNS vs the MARKET
RETURNS vs the MARKET
FIVE YEAR STOCKHOLDER RETURN
FIVE YEAR STOCKHOLDER RETURN
32 |