TIDEWATER INC - FORM 8-K - EX-99.1

Attached files

file	filename
EX-99.2 - EX-99.2 - TIDEWATER INC	d481740dex992.htm
8-K - FORM 8-K - TIDEWATER INC	d481740d8k.htm

February 5, 2013

2013 CREDIT SUISSE ENERGY SUMMIT

Joseph M. Bennett

Executive Vice President and

Chief Investor Relations Officer

Exhibit 99.1

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 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

capital

spending

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

Web:www.tdw.com • Email:connect@tdw.com

KEY TAKEAWAYS

•

Focus on safety, compliance & operating excellence

•

“The Tide is Turning”–

continued improvement in

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

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

SAFETY RECORD RIVALS

LEADING COMPANIES

SAFETY RECORD RIVALS

LEADING COMPANIES

WORKING OFFSHORE RIG TRENDS

Floaters

Jackups

Prior peak (summer 2008)

Source: ODS-Petrodata

Note: 45 “Other”

rigs,

along

with

the

Jackups

and

Floaters,

provide

total

working

rig

count

673

late

January

2013.

381

247

100

150

200

250

300

350

400

450

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

1/13

Source: ODS-Petrodata and Tidewater

July 2008

(Peak)

Jan. 2011

(Trough)

January

2013

Working Rigs

603

538

673

Rigs Under

Construction

186

118

192

OSV Global

Population

2,033

2,599

2,873

OSV’s Under

Construction

736

367

426

OSV/Rig Ratio

3.37

4.83

4.27

DRIVERS OF OUR BUSINESS

“Peak to Present”

Source: ODS-Petrodata and Tidewater

As of January 2013, there are approximately 426 additional AHTS and

PSV’s (~15% of the global fleet) under construction.

Global fleet is estimated at 2,873 vessels, including ~750 vessels that are 25+ yrs old (26%).

Vessels > 25 years old today

THE WORLDWIDE OSV FLEET –

RETIREMENTS

EXPECTED TO EXCEED NEW DELIVERIES

THE WORLDWIDE OSV FLEET –

RETIREMENTS

EXPECTED TO EXCEED NEW DELIVERIES

100

150

200

250

300

1965

1970

1975

1980

1985

1990

1995

2000

2005

2010

(Includes AHTS and PSV’s only) Estimated as of January 2013

TIDEWATER’S ACTIVE FLEET

Year Built

Deepwater vessels

Towing Supply/Supply

Other vessels

226 “New”

vessels –

5.4 avg yrs

38 “Traditional”

vessels –

27.3 avg yrs

1970

1975

1980

1985

1990

1995

2000

2005

2010

as of December 31, 2012

VESSEL POPULATION BY OWNER

Source: ODS-Petrodata and Tidewater

Tidewater

Competitor #2

Competitor #3

Competitor #4

Competitor # 5

Competitor #1

Avg.

All Others (2,149 total

vessels for

370+ owners)

247

155

117

100

200

300

400

Tidewater AHTS and PSV fleet includes 177 vessel additions since 2000

(AHTS and PSV’s only) –

Estimated as of January 2013

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**

HISTORY OF EARNINGS GROWTH

AND SOLID THROUGH-CYCLE RETURNS

HISTORY OF EARNINGS GROWTH

AND SOLID THROUGH-CYCLE RETURNS

$1.03

$1.78

$3.33

$5.94

$6.39

$7.89

$5.20

$2.40

$2.13

$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

Fiscal

2012

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

OUR GLOBAL FOOTPRINT

In 3Q FY 2013, ~9% 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.

Americas

63(24%)

MENA

38(14%)

Asia/Pac

29(11%)

SS Africa/Europe

134(51%)

Vessel Distribution by Region

(excludes stacked vessels –

as of 12/31/12)

Vessel Count (2)

Total Cost (2)

Deepwater PSVs

$2,030m

Deepwater AHTSs

$358m

Towing Supply/Supply

106

$1,565m

Other

$289m

TOTALS:

256

$4,242m

(1)

At 12/31/12, 227 new vessels were in our fleet with ~5.5 year average age

(1)

$3,706m (87%) funded through 12/31/12

THE LARGEST MODERN OSV FLEET

IN THE INDUSTRY….

THE LARGEST MODERN OSV FLEET

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)

Vessel Commitments

Jan. ’00 –

December ‘12’

Count

Deepwater PSVs

Deepwater AHTSs

Towing Supply/Supply

Other

Total

Vessels Under Construction*

As of December 31, 2012

…. AND MORE TO COME

* Includes 4 new vessel purchase commitments at 12/31/12

Estimated delivery schedule – 6 remaining in FY ‘13, 11 in FY ‘14 and 12 thereafter.

CAPX of $110m remaining in FY ‘13, $258m in FY ‘14 and $167m in FY ’15.

Over

13-year

period,

Tidewater

has

invested

$4.1

billion

CapEx($3.6

billion

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

FUNDED BY CFFO THROUGH FISCAL 2012

$100

$200

$300

$400

$500

$600

$700

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Dividend

Share Repurchase

CAPX

As of December 31, 2012

Cash & Cash Equivalents

$54 million

Total Debt

$930 million

Shareholders Equity

$2,526 million

Net Debt / Net Capitalization

27%

Total Debt / Capitalization

26%

~$500 million of available liquidity as of 12/31/12, including $450 million of unused

capacity under committed bank credit facilities.

STRONG FINANCIAL POSITION PROVIDES

STRATEGIC OPTIONALITY

STRONG FINANCIAL POSITION PROVIDES

STRATEGIC OPTIONALITY

Total Revenue and Margin

Fiscal 2008 -

2013

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%

$300 million

$150 million

50.0%

52.7%

46.2%

55.9%

46.0%

36.3%

39.3%

35.1%

43.4%

40.7%

$100

$200

$300

$400

$500

FY08

FY09

FY10

FY11

FY12

FY13

Vessel Revenue ($)

Vessel Operating Margin ($)

Vessel Operating Margin (%)

Note: Vessel operating margin is defined as vessel revenue less vessel operating expenses

New Vessel Trends by Vessel Type

Deepwater PSVs

New Vessel Trends by Vessel Type

Deepwater PSVs

$122 million, or 40%, of Vessel Revenue in Q3 Fiscal 2013

Q3 Fiscal 2013

Avg Day Rate: $27,223

Utilization: 78.3%

120

160

200

240

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

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

New Vessel Trends by Vessel Type

Deepwater AHTS

New Vessel Trends by Vessel Type

Deepwater AHTS

$25 million, or 8%, of Vessel Revenue in Q3 Fiscal 2013

Q3 Fiscal 2013

Avg Day Rate: $30,366

Utilization: 81.8%

120

160

200

240

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

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

New Vessel Trends by Vessel Type

Towing Supply/Supply Vessels

New Vessel Trends by Vessel Type

Towing Supply/Supply Vessels

$113 million, or 37%, of Vessel Revenue in Q3 Fiscal 2013

Q3 Fiscal 2013

Avg Day Rate: $13,969

Utilization: 86.3%

101

102

100

150

200

250

$5,000

$10,000

$15,000

$20,000

$25,000

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

POTENTIAL FOR FUTURE

EARNINGS ACCELERATION

POTENTIAL FOR FUTURE

EARNINGS ACCELERATION

Average Day rates

$16,503*

$18,153

(+ 10%)

$19,969

(+ 10%)

82.1%*

85.0%

90.0%

276 vessel assumption (227 current new vessels + 29 under construction + 20 additional new vessels next year).

* 12/31/12 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

+$820M

EBITDA

Actual Avg Qtrly Day rates

6/30/11 $14,291

12/31/12 $16,503

~$4.15

EPS

~$6.15

EPS

~$10.50

EPS

2013 CREDIT SUISSE ENERGY SUMMIT

Joseph M. Bennett

Executive Vice President and

Chief Investor Relations Officer

February 5, 2013

APPENDIX

Vessel Revenue ($)

Average Fleet Count

NEW FLEET DRIVING RESULTS

100

150

200

250

300

350

400

450

FY 2009

FY 2010

FY 2011

FY 2012

FY 2013

New

Traditional

Stacked

100

150

200

250

300

350

400

450

FY 2009

FY 2010

FY 2011

FY 2012

FY 2013

New

Traditional

224 Average New Vessels in Q3 2013

$305 million Vessel Revenue in Q3

2013 (92% from New Vessels)

Vessel Cash Operating Margin ($)

Vessel Cash Operating Margin (%)

CYCLICAL UPTURN

SHOULD DRIVE MARGIN EXPANSION

CYCLICAL UPTURN

SHOULD DRIVE MARGIN EXPANSION

$124

million

Vessel

Margin

FY2013 (98% from New Vessels)

Q3 FY2013 Vessel Margin: 41%

100

125

150

175

200

FY 2009

FY 2010

FY 2011

FY 2012

FY 2013

New

Traditional

10%

20%

30%

40%

50%

60%

70%

FY 2009

FY 2010

FY 2011

FY 2012

FY 2013

Total

New

VESSEL UTILIZATION BY SEGMENT

VESSEL DAYRATES 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.

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000

$22,000

6/09

12/09

6/10

12/10

6/11

12/11

6/12

12/12

Americas

Asia/Pac

MENA

Sub Sah Africa

Super Majors

35%

NOC's

23%

Others

42%

CURRENT REVENUE MIX

Our top 10 customers in Fiscal 2012 (4 Super Majors,

3 NOC’s and 3 IOC’s) accounted for 59% of our revenue

Quality of Customer Base

FINANCIAL STRATEGY FOCUSED

ON CREATING LONG-TERM

SHAREHOLDER VALUE

FINANCIAL STRATEGY FOCUSED

ON CREATING LONG-TERM

SHAREHOLDER VALUE

Maintain

Financial Strength

EVA-Based Investments

On Through-cycle Basis

Deliver Results

Attached files

Stock widget

Investing forum

TIDEWATER INC Reports