Attached files
| file | filename |
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| 8-K - 8-K - TIDEWATER INC | d786759d8k.htm |
| EX-99.2 - EX-99.2 - TIDEWATER INC | d786759dex992.htm |
 Barclays CEO
Energy-Power Conference September 4, 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
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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
•
Continued solid financial position, with considerable ready
liquidity, a reasonable debt level, minor debt maturities
until FY2019 and expected reduced CAPX as major fleet
upgrade winds down
Key Tidewater Takeaways
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3
•
Largest “NEW” OSV fleet in the industry, operating in over
50 countries with ~9,000 employees worldwide
•
“Offshore” is and will continue to be relevant. Constructive
fundamental backdrop for the OSV industry |
 Safety Record
Rivals Leading Companies Barclays CEO Energy-Power Conference
•
Safe Operations is Priority #1
•
Stop Work Obligation
•
Safety performance is 25% of mgt. incentive comp
4
TOTAL RECORDABLE INCIDENT RATES
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: 42 “Other”
rigs, along with the Jackups and Floaters, provide a total working rig count of 720 in August
2014. 420
258
Prior peak (summer 2008)
Jackups
Floaters
Working Offshore Rig Trends
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5 |
 Source:
ODS-Petrodata and Tidewater July 2008
(Peak)
Jan. 2011
(Trough)
August
2014
Working Rigs
603
538
720
Rigs Under
Construction
186
118
240
OSV Global
Population
2,033
2,599
3,203
OSV’s Under
Construction
736
367
459
OSV/Rig Ratio
3.37
4.83
4.45
Drivers of our Business “Peak to Present”
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6
Working offshore rig
count is expected to grow
Marketed
OSV
population
should decrease as
attrition exceeds
newbuild deliveries
OSV/Rig Ratio should
remain well balanced |
 Source:
ODS-Petrodata and Tidewater As of August 2014, there are approximately 459 additional
AHTS and PSV’s (~14% of the global fleet) under construction.
Global fleet is estimated at 3,203 vessels, including ~700 vessels that are 25+
yrs old (25%). Vessels > 25 years old today
The Worldwide OSV Fleet
(Includes AHTs and PSVs only) Estimated as of August 2014
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7 |
 Year
Built Deepwater vessels
Towing Supply/Supply
Other vessels
244 “New”
vessels –
6.9 avg yrs
21 “Traditional”
vessels –
26.7 avg yrs
Tidewater’s Active Fleet
As of June 30, 2014
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8 |
 Source:
ODS-Petrodata and Tidewater Tidewater
Competitor #2
Competitor #3
Competitor #4
Competitor # 5
Competitor #1
Avg.
All Others (2,452 total
vessels for
400+ owners)
Vessel Population by Owner
(AHTS and PSVs only) Estimated as of August 2014
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9 |
 Our Global
Footprint – Vessel Count by Region
(Excludes stacked vessels –
as of 6/30/14)
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10
Americas
69(26%)
SS Africa/Europe
128(48%)
MENA
44(17%)
Asia/Pac
24(9%) |
 Our Global
Footprint – Vessel Class by Region
(Excludes stacked vessels –
as of 6/30/14)
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New
Avg.
Traditional
Vessels
NBV
Vessels
Deepwater
10
$15.2M
1
Towing Supply
31
$12.1M
0
Other
0
0
2
41
3
New
Avg.
Traditional
Vessels
NBV
Vessels
Deepwater
37
$28.7M
0
Towing Supply
43
$12.5M
2
Other
41
$1.8M
5
121
7
New
Avg.
Traditional
Vessels
NBV
Vessels
Deepwater
9
$24.9M
0
Towing Supply
14
$11.6M
0
Other
1
$6.7M
0
24
0
Americas
SSAE
MENA
Asia/Pac
Vessel
count
info
is
as
of
6/30/14,
and
includes
leased
vessels.
Avg
NBV
excludes
the
impact
of
leased
vessels
which
have
no
NBV.
Average NBV of the total 21 Traditional vessels is $0.97M at 6/30/14.
11
New
Avg.
Traditional
Vessels
NBV
Vessels
Deepwater
32
$19.5M
0
Towing Supply
17
$10.6M
7
Other
9
$3.4M
4
58
11 |
 Vessel Count (2) Total Cost (2)
Average Cost
per Vessel
Deepwater PSVs
102
$2,906m
$28.5m
Deepwater AHTSs
12
$387m
$32.3m
Towing Supply/Supply
111
$1,670m
$15.0m
Other
53
$227m
$4.3m
TOTALS:
278
$5,190m
(1)
$18.7m
.
At 6/30/14, 245 new vessels were in our fleet with ~6.9 year average age
Vessel Commitments
Jan. ’00 –
June ‘14
(1)
~$4.5b (87%) funded through 6/30/14
(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
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12 |
 Count
Deepwater PSVs
26
Deepwater AHTSs
-
Towing Supply/Supply
6
Other
1
Total
33
Vessels Under Construction*
As of June 30, 2014
Estimated
delivery
schedule
–
13
in
FY
’15,
17
in
FY
‘16
and
3
thereafter.
CAPX
of
$391m
in
FY
’15,
$244m
in
FY
‘16
and
$50m
thereafter.
…and More to Come
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13 |
 The Upgrading
of the Tidewater Fleet (A 10 Year Review)
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Deepwater PSV
Deepwater PSV
Deepwater AHTS
Deepwater AHTS
Towing Supply
Towing Supply
Fleet information includes active vessels only.
CIP=Construction in Process.
New Fleet is defined as vessels built or acquired since 2000.
Current
Future
Vintage
DWT
Fleet
CIP
Fleet
Fleet
5,000-6,000
16
5
21
0
4,000-4,999
11
15
26
0
3,000-3,999
43
6
49
0
<3,000
6
0
6
1
76
26
102
1
Current
Future
Vintage
BHP
Fleet
CIP
Fleet
Fleet
25,000+
5
0
5
0
13,500-16,500
7
0
7
0
12
0
12
0
Current
Future
Vintage
BHP
Fleet
CIP
Fleet
Fleet
7,000-10,000
36
6
42
0
3,000-6,999
69
0
69
9
105
6
111
9
14
New
Vintage
Total
DWT
Fleet
Fleet
Fleet
5,000-6,000
0
0
0
4,000-4,999
4
0
4
3,000-3,999
12
2
14
<3,000
6
4
10
22
6
28
New
Vintage
Total
BHP
Fleet
Fleet
Fleet
25,000+
1
0
1
13,500-16,500
6
3
9
7
3
10
New
Vintage
Total
BHP
Fleet
Fleet
Fleet
7,000-10,000
5
25
30
3,000-6,999
23
146
169
28
171
199
3/31/05 Snapshot
6/30/14 Snapshot |
 CAPX Expected
to Decrease from Recent High Levels
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Fiscal Year
15
Fiscal 2014 is exclusive of Troms acquisition
Amounts
in
Fiscal
2015-2017
represent
known
CAPX
on
only
the
33 vessels and 2 ROVs under construction as of 6/30/14.
Additional CAPX could occur, but trendline is expected down. |
 As of June 30,
2014 Cash & Cash Equivalents
$53 million
Total Debt
$1,511 million
Shareholders Equity
$2,717 million
Net Debt / Net Capitalization
35%
Total Debt / Capitalization
36%
~$650 million of available liquidity as of 6/30/14, including $600 million of
unused capacity under the company’s revolving credit facility.
Strong
Financial
Position
Provides
Strategic Optionality
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16 |
 Debt Maturities
as of 6/30/14 Limited for Several Years
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Fiscal Year
17 |
 **
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
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18 |
 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
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19 |
 Q1 Fiscal 2015
Avg Day Rate: $30,802
Utilization: 86.8%
$185 million, or 49%, of Vessel Revenue in Q1 Fiscal 2015
New Vessel Trends by Vessel Type
Deepwater PSVs
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20
Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size
|
 Q1 Fiscal 2015
Avg Day Rate: $34,116
Utilization: 83.5%
$31 million, or 8%, of Vessel Revenue in Q1 Fiscal 2015
New Vessel Trends by Vessel Type
Deepwater AHTS
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21
Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size
|
 Q1 Fiscal 2015
Avg Day Rate: $15,519
Utilization: 84.9%
$126 million, or 33%, of Vessel Revenue in Q1 Fiscal 2015
New Vessel Trends by Vessel Type
Towing Supply/Supply Vessels
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22
Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size
|
 Recent delivery
of six work-class remotely operated vehicles (ROV),
and two more on order.
Tidewater’s New Subsea Business
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23 |
 •
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
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24 |
 Barclays CEO
Energy-Power Conference September 4, 2014
Jeffrey M. Platt
President & CEO
Joseph M. Bennett
EVP & Chief IRO |
 Appendix
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26 |
 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
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27 |
 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.
$ in millions
CFFO
Fiscal Year
Fleet Renewal & Expansion Largely
Funded by CFFO
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28
$0
$100
$200
$300
$400
$500
$600
$700
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
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 $175.6M at 51.8%
Total Revenue and Margin
Fiscal 2008-2015
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29 |
 Vessel Cash Operating
Margin ($) Vessel Cash Operating Margin (%)
$164 million Vessel Margin in Q1
FY2015 (99% from New Vessels)
Q1 FY2015 Vessel Margin: 43%
Cyclical Upturn should Drive Margin Expansion
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30 |
 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
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31
Super Majors
37%
NOC's
22%
Others
41% |