Attached files
| file | filename |
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| 8-K - 8-K - TIDEWATER INC | d838383d8k.htm |
| EX-99.2 - EX-99.2 - TIDEWATER INC | d838383dex992.htm |
 Capital One
Securities, Inc. 9
th
Annual Energy Conference
December 10, 2014
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
Capital One Securities, Inc. 9th Annual Energy Conference
TIDEWATER
601 Poydras Street, Suite 1500, New Orleans, LA 70130
2 |
 •
Consistent goal of “Best in Class”
safety and compliance culture
•
History of solid earnings and returns on a through-cycle basis
•
Largest “NEW”
OSV fleet in the industry, operating in over
50 countries with ~9,000 employees worldwide
•
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
•
“Offshore”
is and will continue to be relevant.
Key Tidewater Takeaways
Capital One Securities, Inc. 9th Annual Energy Conference
3 |
 Safety Record
Rivals Leading Companies Capital One Securities, Inc. 9th Annual Energy
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 November 2014. 421
257
Prior peak (summer 2008)
Jackups
Floaters
Working Offshore Rig Trends
Capital One Securities, Inc. 9th Annual Energy Conference
5 |
 Source: ODS-Petrodata and Tidewater
July 2008
(Peak)
Jan. 2011
(Trough)
November
2014
Working Rigs
603
538
720
Rigs Under
Construction
186
118
246
OSV Global
Population
2,033
2,599
3,233
OSV’s Under
Construction
736
367
470
OSV/Rig Ratio
3.37
4.83
4.49
Drivers of our Business “Peak to Present”
Capital One Securities, Inc. 9th Annual Energy Conference
6
Working offshore rig
count is expected to grow
Marketed OSV populatio
should decrease as
attrition exceeds
newbuild deliveries
OSV/Rig Ratio should
remain well balanced |
 Tidewater’s
Active Fleet As of September 30, 2014
Capital One Securities, Inc. 9th Annual Energy Conference
7 |
 Americas
66(25%)
SS Africa/Europe
124(48%)
MENA
45(17%)
Asia/Pac
25(10%)
Our Global Footprint –
Vessel Count by Region
(Excludes stacked vessels –
as of 9/30/14)
Capital One Securities, Inc. 9th Annual Energy Conference
8 |
 Our Global
Footprint – Vessel Class by Region
(Excludes stacked vessels –
as of 9/30/14)
Capital One Securities, Inc. 9th Annual Energy Conference
New
Avg.
Traditional
Vessels
NBV
Vessels
Deepwater
32
19.3M
0
Towing Supply
17
$10.5M
4
Other
9
$3.3M
4
58
8
New
Avg.
Traditional
Vessels
NBV
Vessels
Deepwater
11
$17.7M
1
Towing Supply
31
$11.9M
0
Other
0
0
2
42
3
New
Avg.
Traditional
Vessels
NBV
Vessels
Deepwater
38
$27.4M
0
Towing Supply
43
$12.8M
2
Other
36
$1.9M
5
117
7
New
Avg.
Traditional
Vessels
NBV
Vessels
Deepwater
10
$25.2M
0
Towing Supply
14
$11.5M
0
Other
1
$6.6M
0
25
0
Americas
SSAE
MENA
Asia/Pac
Vessel
count
info
is
as
of
9/30/14,
and
includes
leased
vessels.
Avg
NBV
excludes
the
impact
of
leased
vessels
which
have
no
NBV.
Average NBV of the total 18 Traditional vessels is $0.95M at 9/30/14.
9 |
 Vessel Count (2) Total Cost (2)
Average Cost
per Vessel
Deepwater PSVs
102
$2,900m
$28.4m
Deepwater AHTSs
12
$387m
$32.3m
Towing Supply/Supply
111
$1,667m
$15.0m
Other
53
$227m
$4.3m
TOTALS:
278
$5,181m
(1)
$18.6m
.
At 9/30/14, 248 new vessels were in our fleet with ~6.8 year average age
Vessel Commitments
Jan. ’00 –
September ‘14
(1)
~$4.6b (89%) funded through 9/30/14
(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
Capital One Securities, Inc. 9th Annual Energy Conference
10 |
 Count
Deepwater PSVs
23
Deepwater AHTSs
-
Towing Supply/Supply
6
Other
1
Total
30
Vessels Under Construction*
As of September 30, 2014
Estimated
delivery
schedule
–
8
remaining
in
FY
’15,
19
in
FY
‘16
and
3
thereafter.
CAPX of $269m remaining in FY ’15, $267m in FY ‘16 and $51m
thereafter. …and More to Come
Capital One Securities, Inc. 9th Annual Energy Conference
11 |
 The Upgrading
of the Tidewater Fleet (A 10 Year Review)
Capital One Securities, Inc. 9th Annual Energy Conference
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
CIP
Fleet
Fleet
5,000-6,000
16
5
21
0
4,000-4,999
12
14
26
0
3,000-3,999
45
4
49
0
<3,000
6
0
6
1
79
23
102
1
Current
Future
Vintage
BHP
New 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
CIP
Fleet
Fleet
7,000-10,000
36
6
42
0
3,000-6,999
69
0
69
6
105
6
111
6
12
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
9/30/14 Snapshot |
 CAPX Expected
to Decrease from Recent High Levels
Capital One Securities, Inc. 9th Annual Energy Conference
Fiscal Year
13
Fiscal 2014 is exclusive of Troms acquisition
Amounts
in
Fiscal
2015-2017
represent
known
CAPX
on
only
the
30 vessels and 2 ROVs under construction as of 9/30/14.
Additional CAPX could occur, but trendline is expected down. |
 As of
September 30, 2014 Cash & Cash Equivalents
$124 million
Total Debt
$1,496 million
Shareholders Equity
$2,770 million
Net Debt / Net Capitalization
33%
Total Debt / Capitalization
35%
~$725 million of available liquidity as of 9/30/14, including $600 million of
unused capacity under the company’s revolving credit facility.
Strong Financial Position Provides
Strategic Optionality
Capital One Securities, Inc. 9th Annual Energy Conference
14 |
 Debt Maturities
as of 9/30/14 Limited for Several Years
Capital One Securities, Inc. 9th Annual Energy 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.
History of Solid Earnings and Returns on a
Through-Cycle Basis
Capital One Securities, Inc. 9th Annual Energy Conference
16 |
 $192 million, or 49%, of Vessel Revenue in Q2 Fiscal 2015
New Vessel Trends by Vessel Type
Deepwater PSVs
Capital One Securities, Inc. 9th Annual Energy Conference
17 |
 $127 million, or 32%, of Vessel Revenue in Q2 Fiscal 2015
New Vessel Trends by Vessel Type
Towing Supply/Supply Vessels
Capital One Securities, Inc. 9th Annual Energy Conference
18 |
 •
Six work-class ROV’s in current fleet
and two more on order
•
Commercial operations underway with
additional opportunities in Americas,
SSAE and Asia/Pac
•
ROV capabilities generating potential
for OSV pull through
Tidewater’s New Subsea Business
Capital One Securities, Inc. 9th Annual Energy Conference
19 |
 •
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 as we complete our OSV fleet
replacement and enhancement and expand our ROV business
•
Return capital to shareholders through dividends and
opportunistic share repurchases (recently announced ~2.8 M
share repurchase totaling $100M)
Tidewater’s Future
Capital One Securities, Inc. 9th Annual Energy Conference
20 |
 Capital One
Securities, Inc. 9
th
Annual Energy Conference
December 10, 2014
Joseph M. Bennett
EVP & Chief IRO |
 Appendix
Capital One Securities, Inc. 9th Annual Energy Conference
22 |
 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
Capital One Securities, Inc. 9th Annual Energy Conference
23 |
 Source: ODS-Petrodata and Tidewater
As of November 2014, there are approximately 470 additional
AHTS and PSV’s (~15% of the global fleet) under construction.
Global fleet is estimated at 3,233 vessels, including ~700
vessels that are 25+ yrs old (22%). The Worldwide OSV Fleet
(Includes AHTs and PSVs only) Estimated as of November 2014
Capital One Securities, Inc. 9th Annual Energy Conference
24 |
 Source: ODS-Petrodata and Tidewater
Vessel Population by Owner
(AHTS and PSVs only) Estimated as of November 2014
Capital One Securities, Inc. 9th Annual Energy Conference
25 |
 Utilization
stats exclude stacked vessels. Active Vessel Dayrates & Utilization by Segment
Capital One Securities, Inc. 9th Annual Energy Conference
26 |
 $34
million, or 9%, of Vessel Revenue in Q2 Fiscal 2015 New Vessel Trends by Vessel Type
Deepwater AHTS
Capital One Securities, Inc. 9th Annual Energy Conference
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.
Fleet Renewal & Expansion Largely
Funded by CFFO
Capital One Securities, Inc. 9th Annual Energy Conference
28 |
 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 $175.6M at 51.8%
Total Revenue and Margin
Fiscal 2008-2015
Capital One Securities, Inc. 9th Annual Energy Conference
29 |
 Vessel Cash Operating Margin ($)
Vessel Cash Operating Margin (%)
$178 million Vessel Margin in Q2
FY2015 (97% from New Vessels)
Q2 FY2015 Vessel Margin: 46%
Cyclical Upturn should Drive Margin Expansion
Capital One Securities, Inc. 9th Annual Energy Conference
30 |
 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
Capital One Securities, Inc. 9th Annual Energy Conference
31 |