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| 8-K - FORM 8-K - TIDEWATER INC | d595027d8k.htm |
 Jeffrey M.
Platt Jeffrey M. Platt
President and CEO
President and CEO
September 5, 2013
Pareto Securities 20
Pareto Securities 20
th
Annual
Annual
Oil & Offshore Conference
Oil & Offshore Conference
Joseph M. Bennett
Joseph M. Bennett
EVP & Chief IRO
EVP & Chief IRO
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, fluctuations 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, development and production;
changing customer demands for different 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 accessing credit
or capital; acts of terrorism and piracy; significant weather conditions; unsettled
political conditions, war, civil unrest and governmental actions, such as expropriation
or enforcement of customs or other laws that are not well-developed or consistently
enforced,
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 risks factors, as well as
other information contained in the Company’s form 10-K’s and
10-Q’s. TIDEWATER
TIDEWATER
601 Poydras Street, Suite 1500
New Orleans, LA 70130
Phone:
504.568.1010 | Fax:
504.566.4580
Web site address:
Web site address:
www.tdw.com
www.tdw.com
Email:
connect@tdw.com
2 |
 Key
Takeaways Key Takeaways
•
Focus on safety, compliance & operating excellence
•
Constructive fundamental backdrop for OSV Industry
-
Commodity prices support high level of E&P spending
-
Continued improvement in working rig count
•
History of earnings growth and solid returns
•
Unmatched scale and scope of operations
•
World’s largest and newest OSV fleet provides basis for continued
earnings growth
•
Strong balance sheet allows us to continue to act upon available
opportunities, such as recent Troms acquisition
3 |
 Safety
Record Rivals Safety Record Rivals
Leading Companies
Leading Companies
4 |
 Working
Offshore Rig Trends Source: ODS-Petrodata
Note:
52
“Other”
rigs,
along
with
the
Jackups
and
Floaters,
provide
a
total
working
rig
count
of
715
in
August
2013.
402
261
5 |
 Drivers of
our Business “Peak to Present”
Source: ODS-Petrodata and Tidewater
July 2008
(Peak)
Jan. 2011
(Trough)
August
2013
Working Rigs
603
538
715
Rigs Under
Construction
186
118
217
OSV Global
Population
2,033
2,599
3,005
OSV’s Under
Construction
736
367
432
OSV/Rig Ratio
3.37
4.83
4.20
6 |
 The
Worldwide OSV Fleet (Includes AHTS and PSVs only)
Estimated as of August 2013
Source: ODS-Petrodata and Tidewater
As of August 2013, there are approximately 432 additional
AHTS and PSV’s (~14% of the global fleet) under construction.
Global fleet is estimated at 3,005 vessels, including ~750
vessels that are 25+ yrs old (25%). Vessels > 25 years old
today 7 |
 Tidewater’s Active Fleet
As of June 30, 2013
Year Built
Deepwater vessels
Towing Supply/Supply
Other vessels
239 “New”
vessels –
6.1 avg yrs
32 “Traditional”
vessels –
27.3 avg yrs
8 |
 Vessel
Population by Owner (AHTS and PSVs only)
Estimated as of August 2013
Source: ODS-Petrodata and Tidewater
Tidewater
Competitor #2
Competitor #3
Competitor #4
Competitor # 5
Competitor #1
Avg.
All Others (2,272 total
vessels for
400+ owners)
9 |
 History
of Earnings Growth & Solid Through-Cycle Returns
**
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% 5.9%
Adjusted EPS**
10 |
 Total
Revenue and Margin Fiscal 2008-2014
Prior peak period (FY2009)
averaged quarterly revenue of
$339M,
Prior peak period (FY2009)
averaged quarterly revenue of
$339M, quarter operating
margin of $175.6M at 51.8%
Note: Vessel operating margin is defined as vessel revenue less
vessel operating expenses
11 |
 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
Demand consistency over broader regions
Solid customer base of NOC’s and IOC’s
12 |
 Our
Global Footprint Vessel Distribution by Region
(excludes
stacked
vessels
-
as
of
6/30/13)
Americas
63(23%)
SS Africa/Europe
142(53%)
MENA
41(15%)
Asia/Pac
25(9%)
In 1Q FY 2014, ~9% of vessel revenue was generated in the U.S. by < 15 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 deepwater PSVs.
13 |
 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.
14 |
 The
Largest Modern OSV Fleet in the Industry
Vessel Count (2)
Total Cost (2)
Average Cost
per Vessel
Deepwater PSVs
96
$2,620m
$27.3m
Deepwater AHTSs
11
$358m
$32.5m
Towing Supply/Supply
109
$1,615m
$14.8m
Other
56
$285m
$5.1m
TOTALS:
272
$4,878m
(1)
$17.9m
.
At 6/30/13, 240 new vessels were in our fleet with ~6.1 year average age
Vessel Commitments
Jan. ’00 –
June ‘13
(1)
$4,225m (87%) funded through 6/30/13
(2)
Vessel count and total cost is net of 24 vessel dispositions ($222m of original
cost) 15 |
 …..
and More to Come Count
Deepwater PSVs
23
Deepwater AHTSs
-
Towing Supply/Supply
6
Other
3
Total
32
Vessels Under Construction*
As of June 30, 2013
Estimated delivery schedule –
7 for the remainder of FY ’14, 16 in FY ’15 and 9 thereafter.
CAPX of $246m for the remainder of FY ’14, $304m in FY ‘15 and $102m
in FY ’16. 16 |
 Strong
Financial Position Provides Strategic Optionality
As of June 30, 2013
Cash & Cash Equivalents
$65 million
Total Debt
$1,475 million
Shareholders Equity
$2,585 million
Net Debt / Net Capitalization
35%
Total Debt / Capitalization
36%
~$385 million of available liquidity as of 6/30/13, including $320 million of unused
capacity under committed bank credit facilities.
17 |
 New Vessel
Trends by Vessel Type Deepwater PSVs
$152 million, or 46%, of Vessel Revenue in Q1 Fiscal 2014
18 |
 $112 million, or 34%, of Vessel Revenue in Q1 Fiscal 2014
New Vessel Trends by Vessel Type
Towing Supply/Supply Vessels
19 |
 Potential
for Future Earnings Acceleration
Average Day rates
$17,955
*
$19,750
(+ 10%)
$21,725
(+ 10%)
81.2%*
85.0%
90.0%
~$3.75
EPS
~$7.00
EPS
~$12.25
EPS
292 vessel assumption (240 current new vessels + 32 under construction + 20
additional new vessels next year). * 6/30/13 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
~$450M+
EBITDA
+$650M
EBITDA
+$950M
EBITDA
Actual Avg Qtrly Day rates
6/30/11 $14,291
6/30/13 $17,955
20 |
 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
21 |
 Jeffrey M.
Platt Jeffrey M. Platt
President and CEO
President and CEO
September 5, 2013
Pareto Securities 20
Pareto Securities 20
th
Annual
Annual
Oil & Offshore Conference
Oil & Offshore Conference
Joseph M. Bennett
Joseph M. Bennett
EVP & Chief IRO
EVP & Chief IRO |
 Appendix
23 |
 Fleet
Renewal & Expansion Funded by CFFO thru Fiscal 2013
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 $749 million, respectively
Fiscal Year
24 |
 New Fleet
Driving Results
Vessel Revenue ($)
Average Fleet Count
235 Average Active New Vessels in Q1 2014
$332 million Vessel Revenue in Q1 2014 (94% from
New Vessels)
25 |
 Cyclical
Upturn should Drive Margin Expansion
Vessel Cash Operating Margin ($)
Vessel Cash Operating Margin (%)
$135 million Vessel Margin in Q1 FY2014 (98%
from New Vessels)
Q1 FY2014 Vessel Margin: 41%
26 |
 $28
million, or 9%, of Vessel Revenue in Q1 Fiscal 2014 New Vessel Trends by Vessel
Type Deepwater AHTS
27 |
 Current
Revenue Mix 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
28 |
 |