Attached files
| file | filename |
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| 8-K - 8-K - TIDEWATER INC | d733946d8k.htm |
| EX-99.2 - EX-99.2 - TIDEWATER INC | d733946dex992.htm |
 UBS Global Oil
and Gas Conference
May 22, 2014
Jeffrey M. Platt
President & CEO
Joseph M. Bennett
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.
Phone:
504.568.1010 | Fax:
504.566.4580
Web site address:
www.tdw.com
Email:
connect@tdw.com
UBS Global Oil and Gas Conference
TIDEWATER
601 Poydras Street, Suite 1500, New Orleans, LA 70130
2 |
 •
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 ~9,000 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
•
Constructive fundamental backdrop for the OSV industry
Key Tidewater Takeaways
UBS Global Oil and Gas Conference
3 |
 Safety Record
Rivals Leading Companies UBS Global Oil and Gas Conference
•
Safe Operations is Priority #1
•
Stop Work Obligation
•
Safety performance is 25% of mgt. incentive comp
4
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. |
 Source: ODS-Petrodata
Note: 44 “Other”
rigs, along with the Jackups and Floaters, provide a total working rig count of 720
in May 2014. Working Offshore Rig Trends
UBS Global Oil and Gas Conference
5 |
 Source: ODS-Petrodata and Tidewater
July 2008
(Peak)
Jan. 2011
(Trough)
May
2014
Working Rigs
603
538
720
Rigs Under
Construction
186
118
250
OSV Global
Population
2,033
2,599
3,140
OSV’s Under
Construction
736
367
462
OSV/Rig Ratio
3.37
4.83
4.36
Drivers of our Business “Peak to Present”
UBS Global Oil and Gas Conference
6 |
 Year
Built Deepwater vessels
Towing Supply/Supply
Other vessels
245 “New”
vessels –
6.9 avg yrs
23 “Traditional”
vessels –
26.6 avg yrs
Tidewater’s Active Fleet
As of March 31, 2014
UBS Global Oil and Gas Conference
7 |
 Source: ODS-Petrodata and Tidewater
Vessel Population by Owner
(AHTS and PSVs only) Estimated as of May 2014
UBS Global Oil and Gas Conference
8 |
 In 4Q
FY 2014, ~12% 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. Our Global Footprint –
Vessel Count by Region
(Excludes stacked vessels –
as of 3/31/14)
UBS Global Oil and Gas Conference
9 |
         Our Global
Footprint – Vessel Class by Region
(Excludes stacked vessels –
as of 3/31/14)
UBS Global Oil and Gas Conference
New
Avg.
Traditional
Vessels
NBV
Vessels
Deepwater
31
$19.3M
0
Towing Supply
14
$10.7M
8
Other
9
$3.5M
4
54
12
New
Avg.
Traditional
Vessels
NBV
Vessels
Deepwater
10
$17.0M
1
Towing Supply
31
$12.2M
0
Other
0
0
2
41
3
New
Avg.
Traditional
Vessels
NBV
Vessels
Deepwater
39
$28.3M
0
Towing Supply
46
$12.3M
2
Other
42
$1.9M
6
127
8
New
Avg.
Traditional
Vessels
NBV
Vessels
Deepwater
8
$25.0M
0
Towing Supply
14
$11.8M
0
Other
1
$6.8M
0
23
0
Americas
SSAE
MENA
Asia/Pac
Vessel
count
info
is
as
of
3/31/14,
and
includes
leased
vessels.
Avg
NBV
excludes
the
impact
of
leased
vessels
which
have
no
NBV.
Average NBV of the total 23 Traditional vessels is $0.96M at 3/31/14.
10 |
 A Broad
Portfolio of New High Spec OSVs UBS Global Oil and Gas Conference
Deepwater PSV
Deepwater PSV
Deepwater AHTS
Deepwater AHTS
Towing Supply
Towing Supply
Vessel information is as of 3/31/14. CIP=Construction in Process.
Current
Future
DWT
Fleet
CIP
Fleet
5,000-6,000
16
4
20
4,000-4,999
11
13
24
3,000-3,999
43
6
49
<3,000
6
0
6
76
23
99
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
11 |
 Vessel Count (2) Total Cost (2)
Average Cost
per Vessel
Deepwater PSVs
99
$2,771m
$28.0m
Deepwater AHTSs
12
$387m
$32.3m
Towing Supply/Supply
111
$1,670m
$15.0m
Other
53
$227m
$4.3m
TOTALS:
275
$5,055m
(1)
$18.4m
.
At 3/31/14, 245 new vessels were in our fleet with ~6.9 year average age
Vessel Commitments
Jan. ’00 –
March ‘14
(1)
~$4.5b (89%) funded through 3/31/14
(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) The Largest Modern OSV Fleet in the Industry
UBS Global Oil and Gas Conference
12 |
 Count
Deepwater PSVs
23
Deepwater AHTSs
-
Towing Supply/Supply
6
Other
1
Total
30
Vessels Under Construction*
As of March 31, 2014
Estimated
delivery
schedule
–
12
in
FY
’15,
16
in
FY
‘16
and
2
thereafter.
CAPX of $368m in FY ’15, $193m in FY ‘16 and $12m thereafter.
…and More to Come
UBS Global Oil and Gas Conference
13 |
 As of March
31, 2014 Cash & Cash Equivalents
$60 million
Total Debt
$1,515 million
Shareholders Equity
$2,679 million
Net Debt / Net Capitalization
35%
Total Debt / Capitalization
36%
~$660 million of available liquidity as of 3/31/14, including $600 million of
unused capacity under the company’s revolving credit facility.
Strong Financial Position Provides
Strategic Optionality
UBS Global Oil and Gas Conference
14 |
 Debt Maturities
as of 3/31/14 Limited for Several Years
UBS Global Oil and Gas Conference
Fiscal Year
15 |
 **
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.
EPS
in
Fiscal
2014
is
exclusive
of
$0.87
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% 7.0%
Adjusted EPS**
Adjusted EPS**
History of Earnings Growth & Solid
Through-Cycle Return
UBS Global Oil and Gas Conference
16 |
 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.
Active Vessel Dayrates & Utilization by Segment
UBS Global Oil and Gas Conference
17 |
 Q4
Fiscal
2014
Avg
Day
Rate:
$29,735
Utilization:
86.1%
$174
million,
or
48%,
of
Vessel
Revenue
in
Q4
Fiscal
2014
New Vessel Trends by Vessel Type
Deepwater PSVs
UBS Global Oil and Gas Conference
18 |
 Q4
Fiscal 2014 Avg Day Rate: $15,126
Utilization: 84.4%
$121
million,
or
33%,
of
Vessel
Revenue
in
Q4
Fiscal
2014
New Vessel Trends by Vessel Type
Towing Supply/Supply Vessels
UBS Global Oil and Gas Conference
19 |
 Recent delivery
of six work-class remotely operated vehicles (ROV)
Tidewater’s New Subsea Business
UBS Global Oil and Gas Conference
20 |
 •
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
Tidewater’s Future
UBS Global Oil and Gas Conference
21 |
 UBS Global Oil
and Gas Conference
May 22, 2014
Jeffrey M. Platt
President & CEO
Joseph M. Bennett
EVP & Chief IRO |
 Appendix
UBS Global Oil and Gas Conference
23 |
 Source:
ODS-Petrodata
and
Tidewater
As
of
May
2014,
there
are
approximately
462
additional
AHTS
and
PSV’s
(~15%
of
the
global
fleet)
under
construction.
Global
fleet
is
estimated
at
3,140
vessels,
including
~700
vessels
that
are
25+
yrs
old
(25%).
The
Worldwide
OSV
Fleet
(Includes
AHTs
and
PSVs
only)
Estimated
as
of
May
2014
UBS Global Oil and Gas Conference
24 |
 Q4
Fiscal 2014 Avg Day Rate: $31,158
Utilization: 73.9%
$25
million,
or
7%,
of
Vessel
Revenue
in
Q4
Fiscal
2014
New Vessel Trends by Vessel Type
Deepwater AHTS
UBS Global Oil and Gas Conference
25 |
 Maintain
Maintain
Financial Strength
Financial Strength
EVA-Based Investments
EVA-Based Investments
On Through-cycle Basis
On Through-cycle Basis
Deliver Results
Deliver Results
Financial
Strategy
Focused
on
Creating
Long-Term
Shareholder
Value
UBS Global Oil and Gas Conference
26 |
 Over
a
15-year
period,
Tidewater
has
invested
~$5.2
billion
in
CapEx,
and
paid
out
~$1.3
billion
through
dividends
and
share
repurchases.
Over
the
same
period,
CFFO
and
proceeds
from
dispositions
were
~$3.9
billion
and
~$800
million,
respectively.
Fleet Renewal & Expansion Largely
Funded by CFFO
UBS Global Oil and Gas Conference
27 |
 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
$175.6M
at
51.8%
Total Revenue and Margin
Fiscal 2008-2014
UBS Global Oil and Gas Conference
28 |
 Vessel
Cash
Operating
Margin
($)
Vessel
Cash
Operating
Margin
(%)
$156
million
Vessel
Margin
in
Q4
FY2014
(96%
from
New
Vessels)
Q4
FY2014
Vessel
Margin:
43%
Cyclical
Upturn
should
Drive
Margin
Expansion
UBS Global Oil and Gas Conference
29 |
 Super Majors
37%
NOC's
22%
Others
41%
Our top 10 customers in Fiscal 2014 (4 Super Majors, 4 NOC’s,
1 IOC’s and 1 independent) accounted for 62% of our revenue
Current Revenue Mix
Quality of Customer Base
UBS Global Oil and Gas Conference
30 |