Attached files
file | filename |
---|---|
8-K - 8-K - TIDEWATER INC | d716472d8k.htm |
18th Annual
BURKENROAD REPORTS Investment Conference
April 25, 2014
Joseph M. Bennett
EVP & Chief IRO
Exhibit 99.1 |
18th Annual
BURKENROAD REPORTS Investment Conference 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 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.
Phone: 504.568.1010 | Fax: 504.566.4580 Web
site address: www.tdw.com
Email: connect@tdw.com
|
3
Our Humble Beginnings
18th Annual BURKENROAD REPORTS Investment Conference |
Consistent goal of Best in Class
safety and compliance culture
History of earnings growth and solid returns
Largest NEW
OSV fleet in the industry, operating in over
50 countries with ~8,000 employees worldwide
Solid balance sheet and ready liquidity allows us to
continue to act upon available opportunities, such as recent
Troms acquisition and new Subsea business
Challenged, yet still constructive fundamental backdrop for
OSV industry
4
Key Tidewater Takeaways
18th Annual BURKENROAD REPORTS Investment Conference |
5
Safety Record Rivals Leading Companies
18th Annual BURKENROAD REPORTS Investment Conference
Safe Operations is Priority #1
Stop Work Obligation
Safety performance is 25% of mgt. incentive comp
like holding a snake by its head.
Operating safely offshore is
Its a task that cant be turned
loose not for a microsecond of an
accident
will
strike
without
pity |
6
Our Workplace !!!
18th Annual BURKENROAD REPORTS Investment Conference |
Source:
ODS-Petrodata Note: 44 Other
rigs, along with the Jackups and Floaters, provide a total working rig count of 716 in April
2014. 414
254
Prior peak (summer 2008)
Jackups
Floaters
7
Working Offshore Rig Trends
18th Annual BURKENROAD REPORTS Investment Conference
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 |
Source:
ODS-Petrodata and Tidewater July 2008
(Peak)
Jan. 2011
(Trough)
April
2014
Working Rigs
603
538
716
Rigs Under
Construction
186
118
253
OSV Global
Population
2,033
2,599
3,129
OSVs Under
Construction
736
367
455
OSV/Rig Ratio
3.37
4.83
4.37
8
Drivers of our Business Peak to Present
18th Annual BURKENROAD REPORTS Investment Conference |
Year
Built Deepwater vessels
Towing Supply/Supply
Other vessels
244 New
vessels
6.0 avg yrs
25 Traditional
vessels
26.5 avg yrs
9
Tidewaters Active Fleet
As of December 31, 2013
18th Annual BURKENROAD REPORTS Investment Conference
0
5
10
15
20
25
30
35
40
1970
1975
1980
1985
1990
1995
2000
2005
2010 |
Source: ODS-Petrodata and Tidewater
Tidewater
Competitor #2
Competitor #3
Competitor #4
Competitor # 5
Competitor #1
Avg.
All Others (2,382 total
vessels for
400+ owners)
10
Vessel Population by Owner
(AHTS and PSVs only) Estimated as of April 2014
18th Annual BURKENROAD REPORTS Investment Conference
219
178
135
77
70
68
5
0
100
200
300
400 |
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. 11
Our Global Footprint
Vessel Count by Region
(Excludes stacked vessels
as of 12/31/13)
18th Annual BURKENROAD REPORTS Investment Conference
Americas
66(25%)
MENA
45(17%)
SS Africa/Europe
135(50%)
Asia/Pac
23(8%) |
12
A Broad Portfolio of New High Spec OSVs
18th Annual BURKENROAD REPORTS Investment Conference
Deepwater PSV
Deepwater AHTS
Towing Supply
Vessel information is as of 12/31/13. CIP=Construction in Process.
Current
Future
DWT
Fleet
CIP
Fleet
5,000-6,000
15
5
20
4,000-4,999
11
11
22
3,000-3,999
43
6
49
<3,000
6
0
6
75
22
97
Current
Future
BHP
Fleet
CIP
Fleet
25,000+
5
0
5
13,500-16,500
7
0
7
12
0
12
Current
Future
BHP
Fleet
CIP
Fleet
7,000-10,000
36
6
42
3,000-6,999
69
0
69
105
6
111 |
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
18th Annual BURKENROAD REPORTS Investment Conference |
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 companys revolving credit facility.
14
Strong Financial Position Provides
Strategic Optionality
18th Annual BURKENROAD REPORTS Investment Conference |
15
Debt Maturities
Limited for Several Years
18th Annual BURKENROAD REPORTS Investment Conference
Fiscal Year
$200
$0
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
$400
$600
$800 |
**
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**
16
History of Earnings Growth & Solid
Through-Cycle Return
18th Annual BURKENROAD REPORTS Investment Conference
$1.03
$1.78
$3.33
$5.94
$6.39
$7.89
$5.20
$2.40
$2.13
$3.03
$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
Fiscal
2013 |
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. 17
Active Vessel Dayrates & Utilization by Segment
18th Annual BURKENROAD REPORTS Investment Conference
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. |
$165 million, or 46%,
of Vessel Revenue in Q3 Fiscal 2014 18
New Vessel Trends by Vessel Type
Deepwater PSVs
18th Annual BURKENROAD REPORTS Investment Conference
Q3 Fiscal 2014
Avg Day Rate: $29,092
Utilization: 82.7%
40
80
120
160
200
240
$0
$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
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
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
- |
Q3 Fiscal 2014
Avg Day Rate: $15,144
Utilization: 85.5%
$124 million, or 35%, of Vessel Revenue in Q3 Fiscal 2014
19
New Vessel Trends by Vessel Type
Towing Supply/Supply Vessels
18th Annual BURKENROAD REPORTS Investment Conference
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
Average Fleet Size
Average Day Rate
Utilization-Adjusted Average Day Rate |
Recent delivery
of six work-class remotely operated vehicles (ROV)
20
Tidewaters New Subsea Business
18th Annual BURKENROAD REPORTS Investment Conference |
Continue to improve upon stellar safety and compliance programs
Maintain solid balance sheet and financial flexibility to deal with
industry uncertainties and seize opportunities when presented
Disciplined deployment of cash to expand vessel and ROV
fleet capabilities
Return capital to shareholders through dividends and
opportunistic share repurchases
21
Tidewaters Future
18th Annual BURKENROAD REPORTS Investment Conference |
18th Annual
BURKENROAD REPORTS Investment Conference
April 25, 2014
Joseph M. Bennett
EVP & Chief IRO |
23
Appendix
18th Annual BURKENROAD REPORTS Investment Conference |
Maintain
Financial Strength
EVA-Based Investments
On Through-cycle Basis
Deliver Results
24
Financial Strategy Focused on Creating
Long-Term Shareholder Value
18th Annual BURKENROAD REPORTS Investment Conference |
Source:
ODS-Petrodata and Tidewater As of March 2014, there are approximately 463 additional AHTS
and PSVs (~15% of the global fleet) under construction.
Global fleet is estimated at 3,088 vessels, including ~700 vessels that are 25+
yrs old (25%). Vessels > 25 years old today
25
The Worldwide OSV Fleet
(Includes AHTs and PSVs only) Estimated as of March 2014
18th Annual BURKENROAD REPORTS Investment Conference
0
50
100
150
200
250
300
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010 |
26
Our Global Footprint
Vessel Class by Region
(Excludes stacked vessels
as of 12/31/13)
18th Annual BURKENROAD REPORTS Investment Conference
New
Avg.
Traditional
Vessels
NBV
Vessels
Deepwater
31
$19.9M
0
Towing Supply
14
$10.9M
8
Other
9
$3.6M
4
54
12
New
Avg.
Traditional
Vessels
NBV
Vessels
Deepwater
11
$16.6M
1
Towing Supply
31
$12.5M
0
Other
0
0
2
42
3
New
Avg.
Traditional
Vessels
NBV
Vessels
Deepwater
37
$28.1M
0
Towing Supply
46
$12.5M
3
Other
42
$1.9M
7
125
10
New
Avg.
Traditional
Vessels
NBV
Vessels
Deepwater
8
$25.2M
0
Towing Supply
14
$11.9M
0
Other
1
$6.9M
0
23
0
Americas
SSAE
MENA
Asia/Pac
Vessel count info is as of 12/31/13, and includes leased vessels. Avg NBV excludes
the impact of leased vessels which have no NBV. Average NBV of the total 25
Traditional vessels is $0.95M at 12/31/13. |
Count
Deepwater PSVs
22
Deepwater AHTSs
-
Towing Supply/Supply
6
Other
1
Total
29
Vessels Under Construction*
As of December 31, 2013
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. 27
and More to Come
18th Annual BURKENROAD REPORTS Investment Conference |
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
28
Fleet Renewal & Expansion Largely
Funded by CFFO
18th Annual BURKENROAD REPORTS Investment Conference
$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 |
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%
29
Total Revenue and Margin
Fiscal 2008-2014
18th Annual BURKENROAD REPORTS Investment Conference
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%
$-
$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 (%)
$300 million
$150 million
50.0% |
Vessel Cash Operating
Margin ($) Vessel Cash Operating Margin (%)
$163 million Vessel Margin in Q3
FY2014 (98% from New Vessels)
Q3 FY2014 Vessel Margin: 45%
30
Cyclical Upturn should Drive Margin Expansion
18th Annual BURKENROAD REPORTS Investment Conference
$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 |
Q3 Fiscal 2014
Avg Day Rate: $29,141
Utilization: 95.8%
$30 million, or 8%, of Vessel Revenue in Q3 Fiscal 2014
31
New Vessel Trends by Vessel Type
Deepwater AHTS
18th Annual BURKENROAD REPORTS Investment Conference
Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
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
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 Fleet Size
Average Day Rate
Utilization-Adjusted Average Day Rate
-
40
80
120
160
200
240 |
Our top 10 customers
in Fiscal 2013 (4 Super Majors, 2 NOCs, 3 IOCs and 1 independent) accounted for 58%
of our revenue 32
Current Revenue Mix
Quality of Customer Base
18th Annual BURKENROAD REPORTS Investment Conference
Super Majors
38%
NOC's
21%
Others
41% |