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8-K - FORM 8-K - TIDEWATER INC | d608245d8k.htm |
EX-99.2 - EX-99.2 - TIDEWATER INC | d608245dex992.htm |
October
2, 2013 2013 Johnson Rice Energy Conference
2013 Johnson Rice Energy Conference
Joseph M. Bennett
Joseph M. Bennett
EVP & Chief IRO
EVP & Chief IRO
Jeffrey M. Platt
Jeffrey M. Platt
President and CEO
President and CEO
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 Companys 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 Companys form 10-Ks and
10-Qs. TIDEWATER
TIDEWATER
601 Poydras Street, Suite 1500
New Orleans, LA 70130
Phone:
504.568.1010 | Fax:
504.566.4580
Web site address:
www.tdw.com
Email:
connect@tdw.com
2 |
Key
Takeaways
Focus on safety, compliance & operating excellence
Constructive fundamental backdrop for OSV Industry
History of earnings growth and solid returns
Unmatched scale and scope of operations
Worlds 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
-
Commodity prices support high level of E&P spending
-
Continued improvement in working rig count |
Safety
Record Rivals Leading Companies
4 |
Working
Offshore Rig Trends Source: ODS-Petrodata
Note: 50 Other
rigs, along with the Jackups and Floaters, provide a total working rig count of 713
in September 2013. 5 |
Drivers of
our Business Peak to Present
Source: ODS-Petrodata and Tidewater
July 2008
(Peak)
Jan. 2011
(Trough)
September
2013
Working Rigs
603
538
713
Rigs Under
Construction
186
118
222
OSV Global
Population
2,033
2,599
2,997
OSVs Under
Construction
736
367
436
OSV/Rig Ratio
3.37
4.83
4.20
6 |
The
Worldwide OSV Fleet (Includes AHTS and PSVs only)
Estimated as of September 2013
Source: ODS-Petrodata and Tidewater
As of September 2013, there are approximately 436 additional
AHTS and PSVs (~14% of the global fleet) under construction.
Global fleet is estimated at 2,997 vessels, including ~750
vessels that are 25+ yrs old (25%). 7 |
Tidewaters Active Fleet
As of June 30, 2013
Year Built
Deepwater vessels
Towing Supply/Supply
Other vessels
8 |
Vessel
Population by Owner (AHTS and PSVs only)
Estimated as of September 2013
Source: ODS-Petrodata and Tidewater
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 companys 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**
Adjusted EPS**
10 |
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. 11
Our Global Footprint
Vessel Distribution by Region
(excludes stacked vessels -
as of 6/30/13) |
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) 12 |
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.
13 |
New Vessel
Trends by Vessel Type Deepwater PSVs
$152 million, or 46%, of Vessel Revenue in Q1 Fiscal 2014
14 |
$112 million, or 34%,
of Vessel Revenue in Q1 Fiscal 2014 New Vessel Trends by Vessel Type
Towing Supply/Supply Vessels
15 |
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
16 |
October 2, 2013
2013 Johnson Rice Energy Conference
2013 Johnson Rice Energy Conference
Joseph M. Bennett
EVP & Chief IRO
EVP & Chief IRO
Jeffrey M. Platt
President and CEO
President and CEO |
Appendix
18 |
Global
Strength Unique global footprint; 50+ years of Intl 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 NOCs and IOCs
19 |
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 $749 million, respectively
Fiscal Year
20 |
New Fleet
Driving Results
Vessel Revenue ($)
Average Fleet Count
235 Average Active New Vessels in Q1 2014
$332 million Vessel Revenue in Q1 2014 (94% from
New Vessels)
21 |
Cyclical
Upturn should Drive Margin Expansion
Vessel Cash Operating Margin ($)
Vessel Cash Operating Margin (%)
$135 million Vessel Margin in Q1 FY2014 (98%
from New Vessels)
Q1 FY2014 Vessel Margin: 41%
22 |
Total
Revenue and Margin Fiscal 2008-2014
Note: Vessel operating margin is defined as vessel revenue less
vessel operating expenses
23 |
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.
24 |
$28 million, or 9%, of
Vessel Revenue in Q1 Fiscal 2014 New Vessel Trends by Vessel Type
Deepwater AHTS
25 |
..
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.
26 |
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 NOCs,
3 IOCs and 1 independent) accounted for 58% of our revenue
27 |
|
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
29 |