Attached files
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| 8-K - 8-K - TIDEWATER INC | d679556d8k.htm |
 Credit Suisse
19 th
Annual
Energy Summit
February 12, 2014
Jeffrey M. Platt
President and CEO
Joseph M. Bennett
EVP & Chief IRO
Exhibit 99.1 |
 Phone:
504.568.1010 |
Fax: 504.566.4580
Web site address:
www.tdw.com
Email:
connect@tdw.com
2
TIDEWATER
601 Poydras Street, Suite 1500, New Orleans, LA 70130
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.
Credit
Suisse
19
Annual
Energy
Summit
th |
 •
“Best in Class”
safety and compliance culture
•
First to expand extensively into int’l markets, evolving to
our current global exposure–
presence in over 50 countries
with ~8,000 employees worldwide
•
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 opportunities, such as recent Troms acquisition
and new Subsea business
•
Pioneered the oil & gas service vessel industry 55+ years ago
•
Challenged, yet still constructive fundamental backdrop for
OSV industry
3
Key Tidewater Facts
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Annual
Energy
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 4
Safety Record Rivals Leading Companies
Operating safely offshore is
like holding a snake by its head.
It’s a task that can’t be turned
loose not for a microsecond or an
accident will strike without pity.
Credit
Suisse
19
Annual
Energy
Summit
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 Source:
ODS-Petrodata Note: 44 “Other”
rigs, along with the Jackups and Floaters, provide a total working rig count of 707 in February
2014. 405
258
Prior peak (summer 2008)
Jackups
Floaters
5
Working Offshore Rig Trends
0
50
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
1/14
Credit
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Annual
Energy
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 Source:
ODS-Petrodata and Tidewater July 2008
(Peak)
Jan. 2011
(Trough)
February
2014
Working Rigs
603
538
707
Rigs Under
Construction
186
118
240
OSV Global
Population
2,033
2,599
3,080
OSV’s Under
Construction
736
367
458
OSV/Rig Ratio
3.37
4.83
4.36
6
Drivers of our Business “Peak to Present”
Credit
Suisse
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Annual
Energy
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 Source:
ODS-Petrodata and Tidewater As of February 2014, there are approximately 458 additional
AHTS and PSV’s (~15% of the global fleet) under construction.
Global fleet is estimated at 3,080 vessels, including ~720 vessels that are 25+
yrs old (25%). Vessels > 25 years old today
7
The Worldwide OSV Fleet
(Includes AHTs and PSVs only) Estimated as of February 2014
0
50
100
150
200
250
300
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010
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 Year
Built Deepwater vessels
Towing Supply/Supply
Other vessels
244 “New”
vessels –
6.0 avg yrs
25
“Traditional”
vessels
–
26.5
avg
yrs
8
Tidewater’s Active Fleet
As of December 31, 2013
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 Source:
ODS-Petrodata and Tidewater Tidewater
Competitor #2
Competitor #3
Competitor #4
Competitor # 5
Competitor #1
Avg.
All Others (2,358 total
vessels for
400+ owners)
9
Vessel Population by Owner
(AHTS and PSVs only) Estimated as of February 2014
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 Americas
66(25%)
SS Africa/Europe
135(50%)
Asia/Pac
23(8%)
In 3Q FY 2014, ~10% of vessel revenue was generated in the U.S. by ~ 17 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. 10
Our Global Footprint –
Vessel Count by Region
(Excludes stacked vessels –
as of 12/31/13)
MENA
45(17%)
Credit
Suisse
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Annual
Energy
Summit
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 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. 11
Active Vessel Dayrates & Utilization by Segment
60%
70%
80%
90%
100%
6/10
12/10
6/11
12/11
6/12
12/12
6/13
12/13
$6,000
$10,000
$14,000
$18,000
$22,000
6/10
12/10
6/11
12/11
6/12
12/12
6/13
12/13
Americas
Asia/Pac
MENA
Sub Sah Africa/Eur.
Credit
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Annual
Energy
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 **
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**
Adjusted EPS**
12
History of Earnings Growth & Solid
Through-Cycle Return
Credit
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Annual
Energy
Summit
th |
 Vessel Count (2) Total Cost (2)
Average Cost
per Vessel
Deepwater PSVs
97
$2,725m
$28.1m
Deepwater AHTSs
12
$387m
$32.3m
Towing Supply/Supply
109
$1,617m
$14.8m
Other
55
$277m
$5.0m
TOTALS:
273
$5,006m
(1)
$18.3m
At 12/31/13, 244 new vessels were in our fleet with ~6.0 year average age
Vessel Commitments
Jan. ’00 –
December ‘13
(1)
~$4.4b (88%) funded through 12/31/13
(2)
Vessel count and total cost is net of 26 vessel dispositions ($243M of original cost)
(2)
Vessel count and total cost is net of 25 vessel dispositions ($227m of original cost)
13
The Largest Modern OSV Fleet in the Industry
Credit
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Annual
Energy
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 Count
Deepwater PSVs
22
Deepwater AHTSs
-
Towing Supply/Supply
6
Other
1
Total
29
Vessels Under Construction*
As of December 31, 2013
14
…and More to Come
Estimated delivery schedule – 1 for the remainder of FY ’14, 16 in FY ’15 and 12
thereafter.
CAPX of $93m for the remainder of FY ’14, $366m in FY ‘15 and $150m in FY
’16.
Credit
Suisse
19
Annual
Energy
Summit
th |
 As of December
31, 2013 Cash & Cash Equivalents
$114 million
Total Debt
$1,464 million
Shareholders Equity
$2,640 million
Net Debt / Net Capitalization
34%
Total Debt / Capitalization
36%
~$715 million of available liquidity as of 12/31/13, including $600 million
of unused capacity under the company’s revolving credit facility.
15
Strong Financial Position Provides
Strategic Optionality
Credit
Suisse
19
Annual
Energy
Summit
th |
 $165 million, or 46%, of Vessel Revenue in Q3 Fiscal 2014
16
New Vessel Trends by Vessel Type
Deepwater PSVs
22
23
24
25
25
25
25
28
29
32
34
38
40
43
44
45
47
49
51
54
55
57
62
66
69
73
75
-
40
80
120
160
200
240
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
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
Q3 Fiscal 2014
Avg Day Rate: $29,092
Utilization: 82.7%
Credit
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Annual
Energy
Summit
th |
 $124 million, or 35%, of Vessel Revenue in Q3 Fiscal 2014
17
New Vessel Trends by Vessel Type
Towing Supply/Supply Vessels
39
40
43
46
47
49
51
54
57
59
61
63
68
78
81
83
85
88
93
99
101
101 102 103
103
103
104
-
50
100
150
200
250
$0
$5,000
$10,000
$15,000
$20,000
$25,000
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
FY08
FY09
FY10
FY11
FY12
FY13
FY14
Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size
Q3 Fiscal 2014
Avg Day Rate: $15,144
Utilization: 85.5%
Average Fleet Size
Average Day Rate
Utilization-Adjusted Average Day Rate
Credit
Suisse
19
Annual
Energy
Summit
th |
 Recent order of
six work-class remotely operated vehicles (ROV)
18
Tidewater’s New Subsea Business
Credit
Suisse
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Annual
Energy
Summit
th |
 Maintain
Maintain
Financial Strength
Financial Strength
EVA-Based Investments
EVA-Based Investments
On Through-cycle Basis
On Through-cycle Basis
Deliver Results
Deliver Results
19
Financial Strategy Focused on Creating
Long-Term Shareholder Value
Credit
Suisse
19
Annual
Energy
Summit
th |
 Credit Suisse
19 th
Annual
Energy Summit
February 12, 2014
Jeffrey M. Platt
President and CEO
Joseph M. Bennett
EVP & Chief IRO |
 21
Appendix
Credit
Suisse
19
Annual
Energy
Summit
th |
 Q3
Fiscal 2014 Avg Day Rate: $29,141
Utilization: 95.8%
$30 million, or 8%, of Vessel Revenue in Q3 Fiscal 2014
22
New Vessel Trends by Vessel Type
Deepwater AHTS
5
5
5
5
5
5
5
5
6
8
9
9
11
11
11
11
11
11
11
11
11
11
11
11
11
11
12
40
80
120
160
200
240
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
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
Credit
Suisse
19
Annual
Energy
Summit
th |
 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
23
Fleet Renewal & Expansion Funded by CFFO
thru Fiscal 2013
$0
$100
$200
$300
$400
$500
$600
$700
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
CAPX
Dividend
Share Repurchase
Credit
Suisse
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Annual
Energy
Summit
th |
 Vessel Cash Operating
Margin ($) Vessel Cash Operating Margin (%)
$163 million Vessel Margin in Q3
FY2014 (98% from New Vessels)
Q3 FY2014 Vessel Margin: 45%
24
Cyclical Upturn should Drive Margin Expansion
$0
$25
$50
$75
$100
$125
$150
$175
$200
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
FY 2009
FY 2010
FY 2011
FY 2012
FY 2013
FY14
New
Traditional
0%
10%
20%
30%
40%
50%
60%
70%
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
FY 2009
FY 2010
FY 2011
FY 2012
FY 2013
FY14
Total
New
Credit
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Annual
Energy
Summit
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 Prior peak
period (FY2009) averaged quarterly revenue of
$339M, quarter operating
margin of $175.6M at 51.8%
25
Total Revenue and Margin
Fiscal 2008-2014
$300 million
$150 million
$-
$100
$200
$300
$400
$500
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
FY08
FY09
FY10
FY11
FY12
FY13
FY14
Vessel Revenue ($)
Vessel Operating Margin ($)
Vessel Operating Margin (%)
50.0%
53.0%
46.7%
56.4%
47.7%
38.0%
41.0%
36.9%
45.0%
42.0%
44.1%
40.8%
46.3%
45.2%
Note: Vessel operating margin is defined as vessel revenue less vessel operating expenses Credit
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 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
26
Current Revenue Mix
Quality of Customer Base
Credit
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Annual
Energy
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