TIDEWATER INC - FORM 8-K - EX-99.1

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8-K - FORM 8-K - TIDEWATER INC	d640986d8k.htm
EX-99.2 - EX-99.2 - TIDEWATER INC	d640986dex992.htm

December 3, 2013

Cowen

and

Company

Annual

Ultimate

Energy

Conference

Joseph M. Bennett

EVP & Chief IRO

Jeffrey M. Platt

President and CEO

Exhibit 99.1

FORWARD-LOOKING STATEMENTS

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

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.

Key Tidewater Facts

•

“Best in Class”

safety and compliance culture

•

First to expand extensively into int’l markets, evolving to our

•

History of earnings growth and solid returns

•

Largest “NEW”

OSV fleet in the industry

•

Solid balance sheet allows us to continue to act upon available

•

Pioneered the oil & gas service vessel industry 55+ years ago

•

Constructive fundamental backdrop for OSV industry

current global exposure–

presence in over 50 countries

with ~8,000 employees worldwide

opportunities, such as recent Troms acquisition and

new Subsea business

Safety Record Rivals

Leading Companies

CALENDAR YEARS

0.7

0.6

0.5

0.4

0.3

0.2

0.1

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

TOTAL RECORDABLE INCIDENT RATES

TIDEWATER

DOW CHEMICAL

CHEVRON

EXXON/MOBIL

Working Offshore Rig Trends

Source: ODS-Petrodata

Note: 46 “Other”

rigs, along with the Jackups and Floaters, provide a total working rig count of 713 in November 2013.

405

262

Prior peak (summer 2008)

Jackups

Floaters

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

7/13

Drivers of our Business

“Peak to Present”

Source: ODS-Petrodata and Tidewater

July 2008

(Peak)

Jan. 2011

(Trough)

November

2013

Working Rigs

603

538

713

Rigs Under

Construction

186

118

234

OSV Global

Population

2,033

2,599

3,031

OSV’s Under

Construction

736

367

439

OSV/Rig Ratio

3.37

4.83

4.25

The Worldwide OSV Fleet

(Includes AHTS and PSVs only)

Estimated as of November 2013

Source: ODS-Petrodata and Tidewater

As of November 2013, there are approximately 439 additional

AHTS and PSV’s (~14% of the global fleet) under construction.

Global fleet is estimated at 3,031 vessels, including ~720 vessels that are 25+ yrs old (25%).

Vessels > 25 years old today

100

150

200

250

300

1965

1970

1975

1980

1985

1990

1995

2000

2005

2010

Tidewater’s Active Fleet

As of September 30, 2013

Year Built

Deepwater vessels

Towing Supply/Supply

Other vessels

240 “New”

vessels –

6.1 avg yrs

1970

1975

1980

1985

1990

1995

2000

2005

2010

27 “Traditional” vessels – 26.7 avg yrs

Vessel Population by Owner

(AHTS and PSVs only)

Estimated as of November 2013

Source: ODS-Petrodata and Tidewater

Tidewater

Competitor #2

Competitor #3

Competitor #4

Competitor # 5

Competitor #1

Avg.

All Others (2,306 total

vessels for

400+ owners)

400

300

200

100

228

164

130

Our Global Footprint

Vessel Distribution by Region

(excludes stacked vessels -

as of 9/30/13)

In 2Q 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.

Americas

63(24%)

SS Africa/Europe

136(51%)

MENA

44(16%)

Asia/Pac

24(9%)

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.

$6,000

$10,000

$14,000

$18,000

$22,000

6/10

12/10

6/11

12/11

6/12

12/12

6/13

60%

70%

80%

90%

100%

6/10

12/10

6/11

12/11

6/12

12/12

6/13

Americas

Asia/Pac

MENA

Sub Sah Africa/Eur.

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**

The Largest Modern OSV

Fleet in the Industry

Vessel Count (2)

Total Cost (2)

Average Cost

per Vessel

Deepwater PSVs

$2,630m

$27.4m

Deepwater AHTSs

$358m

$32.5m

Towing Supply/Supply

109

$1,615m

$14.8m

Other

$280m

$5.1m

TOTALS:

271

$4,883m

(1)

$18.0m

At 9/30/13, 240 new vessels were in our fleet with ~6.1 year average age

Vessel Commitments

Jan. ’00 –

September ‘13

(1)

~$4.27b (87%) funded through 9/30/13

(2)

Vessel count and total cost is net of 25 vessel dispositions ($227m of original cost)

….. and More to Come

Count

Deepwater PSVs

Deepwater AHTSs

Towing Supply/Supply

Other

Total

Vessels Under Construction*

As of September 30, 2013

Estimated delivery schedule – 6 for the remainder of FY ’14, 16 in FY ’15 and 9 thereafter.

CAPX of $218m for the remainder of FY ’14, $303m in FY ‘15 and $105m in FY ’16.

Strong Financial Position

Provides Strategic Optionality

As of September 30, 2013

Cash & Cash Equivalents

$46 million

Total Debt

$1,446 million

Shareholders Equity

$2,635 million

Net Debt / Net Capitalization

35%

Total Debt / Capitalization

35%

~$650 million of available liquidity as of 9/30/13, including $420 million of unused

capacity under committed bank credit facilities and $200 million of delayed funding

from recent senior unsecured note financing.

New Vessel Trends by Vessel Type

Deepwater PSVs

$176 million, or 49%, of Vessel Revenue in Q2 Fiscal 2014

Q2 Fiscal 2014

Avg Day Rate: $31,053

Utilization: 84.6%

120

160

200

240

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

FY08

FY09

FY10

FY11

FY12

FY13

FY14

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

$118 million, or 33%, of Vessel Revenue in Q2 Fiscal 2014

Q2 Fiscal 2014

Avg Day Rate: $14,484

Utilization: 85.7%

101

101 102

103

100

150

200

250

$5,000

$10,000

$15,000

$20,000

$25,000

FY08

FY09

FY10

FY11

FY12

FY13

FY14

Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size

Average Fleet Size

Average Day Rate

Utilization-Adjusted Average Day Rate

Tidewater’s New Subsea Business

Recent order of six

work-class remotely

operated vehicles (ROV)

Financial Strategy Focused on

Creating Long-Term Shareholder Value

Maintain

Financial Strength

EVA-Based Investments

On Through-cycle Basis

Deliver Results

December 3, 2013

Cowen and Company 3

Annual

Ultimate Energy Conference

Joseph M. Bennett

EVP & Chief IRO

Jeffrey M. Platt

President and CEO

Appendix

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

$ in millions

CFFO

Fiscal Year

$100

$200

$300

$400

$500

$600

$700

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

CAPX

Dividend

Share Repurchase

Cyclical Upturn should

Drive Margin Expansion

Vessel Cash Operating Margin ($)

Vessel Cash Operating Margin (%)

$168 million Vessel Margin in Q2

FY2014 (94% from New Vessels)

Q2 FY2014 Vessel Margin: 46%

10%

20%

30%

40%

50%

60%

70%

FY 2009

FY 2010

FY 2011

FY 2012

FY 2013

FY14

Total

New

$25

$50

$75

$100

$125

$150

$175

$200

FY 2009

FY 2010

FY 2011

FY 2012

FY 2013

FY14

New

Traditional

Total

Revenue

and

Margin

Fiscal

2008-2014

Note: Vessel operating margin is defined as vessel revenue less

vessel operating expenses

Prior peak period (FY2009)

averaged quarterly revenue of

$339M, quarter operating

margin of $175.6M at 51.8%

$100

$300

$400

$500

FY08

FY09

FY10

FY11

FY12

FY13

FY14

Vessel Revenue ($)

Vessel Operating Margin ($)

Vessel Operating Margin (%)

53.0%

46.7%

56.4%

47.7%

38.0%

41.0%

36.9%

45.0%

42.0%

44.1%

40.8%

46.3%

$200

$300 million

$150 million

50.0%

New

Vessel

Trends

Vessel

Type

Deepwater

AHTS

Q2 Fiscal 2014

Avg Day Rate: $28,885

Utilization: 87.9%

$26 million, or 7%, of Vessel Revenue in Q2 Fiscal 2014

120

160

200

240

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size

FY08

FY09

FY10

FY11

FY12

FY13

FY14

Average Fleet Size

Average Day Rate

Utilization-Adjusted Average Day Rate

Current

Revenue

Mix

Quality

Customer

Base

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

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