Attached files
| file | filename |
|---|---|
| EX-99.2 - TRANSCRIPT OF THE PRESENTATION - TIDEWATER INC | d419427dex992.htm |
| 8-K - FORM 8-K - TIDEWATER INC | d419427d8k.htm |
 2012
JOHNSON RICE & CO. 2012 JOHNSON RICE & CO.
ENERGY CONFERENCE
ENERGY CONFERENCE
Joseph M. Bennett
Executive Vice President and
Chief Investor Relations Officer
Jeffrey M. Platt
President and CEO
Exhibit 99.1
October 2, 2012 |
 2
FORWARD-LOOKING STATEMENTS
2
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
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
political risk countries where we operate; foreign currency fluctuations; labor changes
proposed by international conventions; increased regulatory burdens and oversight;
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
•
Email:connect@tdw.com
Web:www.tdw.com |
 3
KEY TAKEAWAYS
KEY TAKEAWAYS
•
Culture of safety & 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 operations
•
World’s largest and newest fleet provides basis for
continued earnings growth
•
Strong balance sheet allows us to continue to act upon
available opportunities |
 4
SAFETY RECORD RIVALS
SAFETY RECORD RIVALS
LEADING COMPANIES
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/MOBIL |
 5
0
50
100
150
200
250
300
350
400
1/04
7/04
1/05
7/05
1/06
7/06
1/07
7/07
1/08
7/08
1/09
7/09
1/10
7/10
1/11
7/11
1/12
7/12
WORKING OFFSHORE RIG TRENDS
WORKING OFFSHORE RIG TRENDS
Floaters
Jackups
Prior peak (summer 2008)
Source: ODS-Petrodata |
 6
Source: ODS-Petrodata and Tidewater
July 2008
(Peak)
Jan. 2011
(Trough)
August
2012
Working Rigs
603
538
649
Rigs Under
Construction
186
118
188
OSV Global
Population
2,033
2,599
2,788
OSV’s Under
Construction
736
367
428
OSV/Rig Ratio
3.37
4.83
4.30
DRIVERS OF OUR BUSINESS
DRIVERS OF OUR BUSINESS
“Peak to Present”
“Peak to Present” |
 7
Source: ODS-Petrodata and Tidewater
As of August 2012, there are approximately 428 additional AHTS and
PSV’s (~15% of the global fleet) under construction.
Global fleet estimated at 2,788 vessels, including 467 vessels
that are 30+ yrs
old
(17%),
and
another
274
vessels
that
are
25-29
yrs
old
(10%)
THE WORLDWIDE OSV FLEET –
RETIREMENTS
EXPECTED TO EXCEED NEW DELIVERIES
(Includes AHTS and PSV’s only) Estimated as of August 2012
Vessels > 25 years old today
0
50
100
150
200
250
300
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010 |
 8
Source: ODS-Petrodata and Tidewater
Tidewater
Competitor #2
Competitor #3
Competitor #4
Competitor # 5
Competitor #1
Avg.
All Others (2,066 total
vessels for
350+ owners)
Tidewater
AHTS
and
PSV
fleet
includes
168
vessel
additions
since
2000
252
151
111
77
67
64
5
0
100
200
300
400
VESSEL POPULATION BY OWNER
(AHTS and PSV’s only) –
Estimated as of August 2012 |
 9
**
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. EPS in Fiscal 2012 is
exclusive of $0.43 per share goodwill impairment charge. Adjusted Return
On Avg.
Equity
7.2%
12.4%
18.9%
18.3%
19.5%
11.4% 5.0%
4.3%
Adjusted EPS**
Adjusted EPS**
HISTORY OF EARNINGS GROWTH
HISTORY OF EARNINGS GROWTH
AND SOLID THROUGH-CYCLE RETURNS
AND SOLID THROUGH-CYCLE RETURNS
4.3% |
 10
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 NOC’s and IOC’s |
 11
OUR GLOBAL FOOTPRINT
Vessel Distribution by Region
(excludes
stacked
vessels
–
as
of
6/30/12)
In
1Q
FY
2013,
~6%
of
vessels/revenue
was
generated
in
U.S.
GOM;
however,
36
total
active U.S.-flagged vessels provide good optionality to a recovery in the U.S.
GOM. MENA
35
Asia/Pac
31
SS Africa/Europe
129
Americas
63
(24%)
(50%)
(14%)
(12%) |
 12
Vessel Count
Estimated Cost
Deepwater PSVs
77
$1,835m
Deepwater AHTSs
17
$497m
Towing Supply/Supply
102
$1,489m
Other
71
$301m
TOTALS:
267
(2)
$4,122m
(1)
.
At 6/30/12, 218 new vessels were in our fleet with ~5.7 year average age
Vessel Commitments
Jan. ’00 –
June ’12
(1)
$3,709m (90%) funded through 6/30/12
THE LARGEST MODERN OSV FLEET
IN THE INDUSTRY….
(2)
Includes one Deepwater PSV, 6 Deepwater AHTS and 16 Other vessels disposed of
subsequent to acquiring the vessels. |
 13
Count
Deepwater PSVs
20
Deepwater AHTSs
-
Towing Supply/Supply
1
Other
5
Total
26
Vessels Under Construction*
As of June 30, 2012
* Includes 2 new vessel purchase commitments at 6/30/12
Estimated
delivery
schedule
–
10
remaining
in
FY
‘13,
10
in
FY
‘14
and
2
thereafter.
CAPX of $173m remaining in FY ‘13, $103m in FY ‘14 and $137m in FY
’15. …. AND MORE TO COME |
 14
Fiscal Year
Actual vessel deliveries through 6/30/12; estimated vessel deliveries based on
commitments to build or acquire as of 6/30/12
Through 6/30/12, vessel
commitments include 267 vessels
with a capital cost of $4.1 billion
THROUGH-CYCLE, EVA-BASED INVESTMENT;
THROUGH-CYCLE, EVA-BASED INVESTMENT;
BALANCE BETWEEN “BUY”
BALANCE BETWEEN “BUY”
and “BUILD”
and “BUILD”
0
5
10
15
20
25
30
35
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Built
Acquired |
 15
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 billion and $732
million, respectively $ in millions
Fiscal Year
FLEET RENEWAL & EXPANSION
FLEET RENEWAL & EXPANSION
FUNDED BY CFFO THROUGH FISCAL 2012
FUNDED BY CFFO THROUGH FISCAL 2012
$0
$100
$200
$300
$400
$500
$600
$700
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
CAPX
Dividend
Share Repurchase |
 16
As of June 30, 2012
Cash & Cash Equivalents
$241 million
Total Debt
$950 million
Shareholders Equity
$2,486 million
Net Debt / Net Capitalization
22%
Total Debt / Capitalization
28%
~$700 million of available liquidity as of 6/30/12, including $450 million of unused
capacity under committed bank credit facilities.
STRONG FINANCIAL POSITION PROVIDES
STRATEGIC OPTIONALITY |
 17
Total Revenue and Margin
Fiscal 2008 -
2013
Prior peak period (FY2009)
averaged quarterly revenue of
$339M,
Prior peak period (FY2009)
averaged quarterly revenue of
$339M, quarter operating
margin of $174M at 51.3%
Note:
Vessel
operating
margin
is
defined
as
vessel
revenue
less
vessel
operating
expenses
$300 million
$150 million
50.0%
52.7%
46.2%
55.9%
46.0%
36.3%
39.3%
35.1%
42.9%
-
$100
$200
$300
$400
$500
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
FY08
FY09
FY10
FY11
FY12
FY13
Vessel Revenue ($)
Vessel Operating Margin ($)
Vessel Operating Margin (%)
$ |
 18
New Vessel Trends by Vessel Type
New Vessel Trends by Vessel Type
Deepwater PSVs
Deepwater PSVs
$104 million, or 36%, of Vessel Revenue in Q1 Fiscal 2013
Q1 Fiscal 2013
Avg Day Rate: $24,062
Utilization: 85.9%
22
23
24
25
25
25
25
27
29
32
34
38
40
43
44
45
47
49
51
54
55
-
40
80
120
160
200
240
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
FY08
FY09
FY10
FY11
FY12
FY13
Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size
Average Fleet Size
Average Day Rate
Utilization-Adjusted Average Day Rate |
 19
New Vessel Trends by Vessel Type
Deepwater AHTS
$27 million, or 9%, of Vessel Revenue in Q1 Fiscal 2013
Q1 Fiscal 2013
Avg Day Rate: $28,908
Utilization: 93.7%
5
5
5
5
5
5
5
5
6
8
9
9
11
11
11
11
11
11
11
11
11
-
40
80
120
160
200
240
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
FY08
FY09
FY10
FY11
FY12
FY13
Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size
Average Fleet Size
Average Day Rate
Utilization-Adjusted Average Day Rate |
 20
New Vessel Trends by Vessel Type
Towing Supply/Supply Vessels
$112 million, or 39%, of Vessel Revenue in Q1 Fiscal 2013
Q1 Fiscal 2013
Avg Day Rate: $13,663
Utilization: 89.3%
39
40
43
46
47
49
51
53
57
59
61
63
68
78
81
83
85
88
93
99
101
-
50
100
150
200
250
$0
$5,000
$10,000
$15,000
$20,000
$25,000
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
FY08
FY09
FY10
FY11
FY12
FY13
Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size
Average Fleet Size
Average Day Rate
Utilization-Adjusted Average Day Rate |
 21
POTENTIAL FOR FUTURE
EARNINGS ACCELERATION
Average Day rates
$15,466*
$17,013
(+ 10%)
$18,714
(+ 10%)
86.2%*
86.2%
90.0%
~$3.50
EPS
~$5.50
EPS
~$9.00
EPS
264 vessel assumption (218 current new vessels + 26 under construction + 20
additional new vessels next year). * 6/30/12
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
+$525M
EBITDA
+$725M
EBITDA
Actual Avg Qtrly Day rates
6/30/11 $14,091
6/30/12 $15,466 |
 October 2, 2012
2012 JOHNSON RICE & CO.
ENERGY CONFERENCE
Joseph M. Bennett
Executive Vice President and
Chief Investor Relations Officer
Jeffrey M. Platt
President and CEO |
 23
APPENDIX |
 24
Quarter Ended
6/30/12
6/30/11
Revenues
$294
$255
Net Earnings
$33
$25
EPS
$0.65
$0.48
Net Cash from Operations
$69
$27
Capital Expenditures
$77
$70
$ in Millions, Except Per Share Data
RECENT FINANCIAL RESULTS
REFLECT A TURNING TIDE |
 25
Vessel Revenue ($)
Average Fleet Count
NEW FLEET DRIVING RESULTS
217 Average New Vessels in Q1
$290 million Vessel Revenue in Q1 2013
(91% from New Vessels)
0
50
100
150
200
250
300
350
400
450
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
FY 2009
FY 2010
FY 2011
FY 2012
FY 2013
New
Traditional
Stacked
0
50
100
150
200
250
300
350
400
450
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
FY 2009
FY 2010
FY 2011
FY 2012
FY 2013
New
Traditional
2013 |
 26
Vessel Cash Operating Margin ($)
Vessel Cash Operating Margin (%)
CYCLICAL UPTURN
CYCLICAL UPTURN
SHOULD DRIVE MARGIN EXPANSION
SHOULD DRIVE MARGIN EXPANSION
$124 million Vessel Margin in Q1
FY2013 (98% from New Vessels)
Q1 FY2013 Vessel Margin: 43%
0
25
50
75
100
125
150
175
200
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
FY 2009
FY 2010
FY 2011
FY 2012
FY 2013
New
Traditional
0%
10%
20%
30%
40%
50%
60%
70%
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
FY 2009
FY 2010
FY 2011
FY 2012
FY 2013
Total
New |
 27
Super Majors
35%
NOC's
23%
Others
42%
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
|
 28
Other Operators
Top 10 Customers
Tidewater’s top 10 customers contract ~21% of the working worldwide
jackup fleet and ~53% of the working worldwide floater fleet
Jackups
(360 Working Rigs)
Floater Rigs
(242 Working Rigs)
75
285
128
Source: ODS-Petrodata and Tidewater
Other Operators
Top 10 customers
114
RIGS
CO
CONTRACTED BY OUR
TOP 10 CUSTOMERS
(Estimated as of August 2012) |
 29
SIGNIFICANT AVERAGE
AGE IMPROVEMENT
Assumptions: 1)
Average
45
vessel
disposals
per
year
in
future
(versus
an
average
of
50+
vessel
dispositions
per
year
over
last
3
years).
2) Includes
26
vessels
under
construction(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. 20
14
6
0
5
10
15
20
3/31/06
3/31/07
3/31/08
12/31/08
12/31/09
12/31/10
12/31/11
12/31/12
12/31/13
12/31/14 |
 30
VESSEL UTILIZATION BY SEGMENT
30%
40%
50%
60%
70%
80%
90%
6/09
9/09
12/09
3/10
6/10
9/10
12/10
3/11
6/11
9/11
12/11
3/12
6/12
Americas
Asia/Pac
MENA
Sub Sah Africa |
 31
VESSEL DAYRATES BY SEGMENT
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
$20,000
6/09
9/09
12/09
3/10
6/10
9/10
12/10
3/11
6/11
9/11
12/11
3/12
6/12
Americas
Asia/Pac
MENA
Sub Sah Africa |
 32
FINANCIAL STRATEGY FOCUSED
ON CREATING LONG-TERM
SHAREHOLDER VALUE
Deliver Results
Deliver Results
Maintain
Maintain
Financial Strength
Financial Strength
EVA-Based Investments
EVA-Based Investments
On Through-cycle Basis
On Through-cycle Basis |