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8-K - FORM 8-K - TIDEWATER INCd446819d8k.htm
EX-99.2 - TRANSCRIPT OF THE PRESENTATION - TIDEWATER INCd446819dex992.htm
December 3, 2012
DAHLMAN ROSE & CO.
ULTIMATE OIL SERVICES AND E&P CONFERENCE
Joseph M. Bennett
Executive Vice President and
Chief Investor Relations Officer
Jeffrey M. Platt
President and CEO
Exhibit 99.1


2
FORWARD-LOOKING STATEMENTS
FORWARD-LOOKING STATEMENTS
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.
Fax:
504.566.4580
Web:
www.tdw.com
connect@tdw.com
Phone:
504.568.1010
Email:


KEY TAKEAWAYS
KEY TAKEAWAYS
KEY TAKEAWAYS
Focus on safety, compliance & 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
3


4
SAFETY RECORD RIVALS
LEADING COMPANIES
SAFETY RECORD RIVALS
SAFETY RECORD RIVALS
LEADING COMPANIES
LEADING COMPANIES
TOTAL RECORDABLE INCIDENT RATES
0.80
0.70
0.60
0.50
0.40
0.30
0.20
0.10
0.00
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
CALENDAR YEARS
TIDEWATER
DOW CHEMICAL
CHEVRON
EXXON/MOBIL


5
WORKING OFFSHORE RIG TRENDS
WORKING OFFSHORE RIG TRENDS
WORKING OFFSHORE RIG TRENDS
Floaters
Jackups
Prior peak (summer 2008)
Source: ODS-Petrodata
Note:  45 “Other”
rigs, along with the Jackups and Floaters, provide a total working rig count of 643 in November 2012.
354
244
400
350
300
250
200
150
100
50
0
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


6
Source: ODS-Petrodata and Tidewater
July 2008
(Peak)
Jan. 2011
(Trough)
November
2012
Working Rigs
603
538
643
Rigs Under
Construction
186
118
199
OSV Global
Population
2,033
2,599
2,820
OSV’s Under
Construction
736
367
441
OSV/Rig Ratio
3.37
4.83
4.39
DRIVERS OF OUR BUSINESS
“Peak to Present”
DRIVERS OF OUR BUSINESS
DRIVERS OF OUR BUSINESS
“Peak to Present”
“Peak to Present”


Source: ODS-Petrodata and Tidewater
As
of
November
2012,
there
are
approximately
441
additional
AHTS
and    
PSV’s
(~16%
of
the
global
fleet)
under
construction.
Global fleet estimated at 2,820 vessels, including 471 vessels that are    
30+ yrs old (17%), and another 271 vessels that are 25-29 yrs old (9%)
300
250
200
150
100
50
0
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010
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  November 2012   
Vessels > 25 years old today
7


TIDEWATER’S ACTIVE FLEET
TIDEWATER’S ACTIVE FLEET
TIDEWATER’S ACTIVE FLEET
Year Built
Deepwater vessels
Towing Supply/Supply
Other vessels
221 “New”
vessels –
5.5 avg yrs
39 “Traditional”
vessels –
27.5 avg yrs
8
35
30
25
20
15
10
5
0
1970
1975
1980
1985
1990
1995
2000
2005
2010
as of  September 30, 2012   


VESSEL POPULATION BY OWNER
VESSEL POPULATION BY OWNER
VESSEL POPULATION BY OWNER
Source: ODS-Petrodata and Tidewater
Tidewater
AHTS
and
PSV
fleet
includes
172
vessel
additions
since
2000
(AHTS and PSV’s only) –
Estimated as of November 2012  
400
300
200
100
0
9
253
148
114
75
66
62
5
Tidewater
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor # 5
Avg.
All Others (2,102 total
vessels for
370+ owners)


**
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       4.3%          7.2%
12.4%
18.9%         18.3%
19.5%         11.4%         5.0%
4.3%
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
$8.00
$6.00
$4.00
$2.00
$0.00
Fiscal
2004
Fiscal
2005
Fiscal
2006
Fiscal
2007
Fiscal
2008
Fiscal
2009
Fiscal
2010
Fiscal
2011
Fiscal
2012
$1.03
$1.78
$3.33
$5.94
$6.39
$7.89
$5.20
$2.40
$2.13
10


GLOBAL STRENGTH
GLOBAL STRENGTH
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


MENA
37(14%)
Americas
66(26%)
SS Africa/Europe
128(49%)
Asia/Pac
29(11%)
Vessel Distribution by Region     
OUR GLOBAL FOOTPRINT
OUR GLOBAL FOOTPRINT
OUR GLOBAL FOOTPRINT
In 2Q FY 2013, ~8% of vessel revenue was generated in the U.S. by < 15 vessels; however, ~20 other U.S.-flagged vessels
are currently operating in International regions that could be re-deployed to the U.S. GOM.
12
(excludes stacked vessels –
as of 9/30/12)  


13
Vessel Count (2)
Total Cost (2)
Deepwater PSVs
78
$1,866m
Deepwater AHTSs
11
$358m
Towing Supply/Supply
106
$1,564m
Other
57
$289m
TOTALS:
252
$4,077m
(1)
.
At 9/30/12, 222 new vessels were in our fleet with ~5.6 year average age
Vessel Commitments    
Jan. ’00 –
September ‘12     
(1)
$3,592m
(88%)
funded
through
9/30/12
THE LARGEST MODERN OSV FLEET
IN THE INDUSTRY….
THE LARGEST MODERN OSV FLEET
THE LARGEST MODERN OSV FLEET
IN THE INDUSTRY….
IN THE INDUSTRY….
(2)
Vessel
count
and
total
cost
is
net
of
23
vessel
dispositions
($217m
of
original
cost,
sold
for
a
total
of
$252m)


14
Count
Deepwater PSVs
19
Deepwater AHTSs
-
Towing Supply/Supply
4
Other
7
Total
30
Vessels Under Construction*
As of September 30, 2012
* Includes 2 new vessel purchase commitments at 9/30/12
Estimated
delivery
schedule
8
remaining
in
FY
‘13,
11
in
FY
‘14
and
11
thereafter.
CAPX
of
$142m
remaining
in
FY
‘13,
$174m
in
FY
‘14
and
$169m
in
FY
’15.
…. AND MORE TO COME
…. AND MORE TO COME
…. AND MORE TO COME


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      
CFFO
Fiscal Year
FLEET RENEWAL & EXPANSION
FUNDED BY CFFO THROUGH FISCAL 2012
FLEET RENEWAL & EXPANSION
FLEET RENEWAL & EXPANSION
FUNDED BY CFFO THROUGH FISCAL 2012
FUNDED BY CFFO THROUGH FISCAL 2012
15
CAPX
Dividend
Share Repurchase


As of September 30, 2012
Cash & Cash Equivalents
$137 million
Total Debt
$890 million
Shareholders Equity
$2,520 million
Net Debt / Net Capitalization
23%
Total Debt / Capitalization
26%
~$590 million of available liquidity as of 9/30/12, including $450 million of unused
capacity under committed bank credit facilities.
STRONG FINANCIAL POSITION PROVIDES
STRATEGIC OPTIONALITY
STRONG FINANCIAL POSITION PROVIDES
STRONG FINANCIAL POSITION PROVIDES
STRATEGIC OPTIONALITY
STRATEGIC OPTIONALITY
16


Total Revenue and Margin
Fiscal 2008 –
2013
Total Revenue and Margin
Total Revenue and Margin
Fiscal 2008 –
Fiscal 2008 –
2013
2013
$300 million
$150 million
50.0%
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.
Vessel revenue and operating margin for Q4-12 through Q2-13 adjusted for retroactive rate increases recognized in Q2-13.
17


New Vessel Trends by Vessel Type
Deepwater PSVs
New Vessel Trends by Vessel Type
New Vessel Trends by Vessel Type
Deepwater PSVs
Deepwater PSVs
$120 million, or 40%, of Vessel Revenue in Q2 Fiscal 2013
Q2 Fiscal 2013
Avg Day Rate: $27,034
Utilization: 84.6%
18
Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size


New Vessel Trends by Vessel Type
Deepwater AHTS
New Vessel Trends by Vessel Type
New Vessel Trends by Vessel Type
Deepwater AHTS
Deepwater AHTS
$24 million, or 8%, of Vessel Revenue in Q2 Fiscal 2013
Q2 Fiscal 2013
Avg Day Rate: $29,331
Utilization: 79.3%
19
Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size


New Vessel Trends by Vessel Type
Towing Supply/Supply Vessels
New Vessel Trends by Vessel Type
New Vessel Trends by Vessel Type
Towing Supply/Supply Vessels
Towing Supply/Supply Vessels
$113 million, or 37%, of Vessel Revenue in Q2 Fiscal 2013
Q2 Fiscal 2013
Avg Day Rate: $13,877
Utilization: 87.6%
20
Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size


POTENTIAL FOR FUTURE
EARNINGS ACCELERATION
POTENTIAL FOR FUTURE
POTENTIAL FOR FUTURE
EARNINGS ACCELERATION
EARNINGS ACCELERATION
Average Day rates
$16,246*
$17,871
(+ 10%)
$19,658
(+ 10%)
84.7%*
85.0%
90.0%
272 vessel assumption (222 current new vessels + 30 under construction + 20 additional new vessels next  year).
* 9/30/12 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
~$445M+
EBITDA
+$560M
EBITDA
+$800M
EBITDA
Actual Avg Qtrly Day rates
6/30/11    $14,291
6/30/12    $16,246
21
~$10.40
EPS
~$6.10
EPS
~$4.20
EPS


December 3, 2012
DAHLMAN ROSE & CO.
ULTIMATE OIL SERVICES AND E&P CONFERENCE
Joseph M. Bennett
Executive Vice President and
Chief Investor Relations Officer
Jeffrey M. Platt
President and CEO


APPENDIX
APPENDIX
APPENDIX
23


Vessel Revenue ($)
Average Fleet Count
NEW FLEET DRIVING RESULTS
NEW FLEET DRIVING RESULTS
NEW FLEET DRIVING RESULTS
218
Average
New
Vessels
in
Q2
2013
$302
million
Vessel
Revenue
in
Q2
2013
(92%
from
New
Vessels)
Note:  Vessel revenue for Q4-12 through Q2-13 adjusted for retroactive rate increases recognized in Q2-13.
24


Vessel Cash Operating Margin ($)
Vessel Cash Operating Margin (%)
CYCLICAL UPTURN
SHOULD DRIVE MARGIN EXPANSION
CYCLICAL UPTURN
CYCLICAL UPTURN
SHOULD DRIVE MARGIN EXPANSION
SHOULD DRIVE MARGIN EXPANSION
$126
million
Vessel
Margin
in
Q2
FY2013
(95%
from
New
Vessels)
Q2
FY2013
Vessel
Margin:
42%
Note:  Vessel cash operating margin for Q4-12 through Q2-13 adjusted for retroactive rate increases recognized in Q2-13.
25


90%
80%
70%
Americas
Asia/Pac
MENA
Sub Sah Africa
60%
50%
40%
VESSEL UTILIZATION BY SEGMENT
VESSEL UTILIZATION BY SEGMENT
VESSEL UTILIZATION BY SEGMENT
26
30%


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.
Americas
Asia/Pac
MENA
Sub Sah Africa
$22,000
$20,000
$18,000
$16,000
$14,000
$12,000
$10,000
$8,000
$6,000
$4,000
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
9/12
27
VESSEL DAYRATES BY SEGMENT
VESSEL DAYRATES BY SEGMENT
VESSEL DAYRATES BY SEGMENT


Our top 10 customers in Fiscal 2012 (4 Super Majors,
3 NOC’s and 3 IOC’s) accounted for 59% of our revenue
Others
42%
Super Majors
35%
NOC's
23%
28
CURRENT REVENUE MIX
Quality of Customer Base
CURRENT REVENUE MIX
CURRENT REVENUE MIX
Quality of Customer Base
Quality of Customer Base


Other Operators
Top 10 Customers
Tidewater’s top 10 customers contract ~20% of the working worldwide
jackup fleet and ~51% of the working worldwide floater fleet
Jackups
(354 Working Rigs)
Floater Rigs
(244 Working Rigs)
70
284
125
Source: ODS-Petrodata and Tidewater
Other Operators
Top 10 customers
119
(Estimated as of November 2012)
29
RIGS CONTRACTED BY OUR
TOP 10 CUSTOMERS
RIGS CONTRACTED BY OUR
RIGS CONTRACTED BY OUR
TOP 10 CUSTOMERS
TOP 10 CUSTOMERS


Maintain
Maintain
Financial Strength
Financial Strength
EVA-Based Investments
EVA-Based Investments
On Through-cycle Basis
On Through-cycle Basis
Deliver Results
Deliver Results
30
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