Attached files
| file | filename |
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| 8-K - FORM 8-K - TIDEWATER INC | d8k.htm |
| EX-99.2 - TRANSCRIPT OF THE PRESENTATION - TIDEWATER INC | dex992.htm |
 TIDEWATER TIDEWATER PRITCHARD CAPITAL PARTNERS PRITCHARD CAPITAL PARTNERS ENERGIZE 2010 CONFERENCE ENERGIZE 2010 CONFERENCE January 7, 2010 Jeff Platt Jeff Platt Executive Vice President Executive Vice President Joseph M. Bennett Joseph M. Bennett Executive Vice President and Executive Vice President and Chief Investor Relations Chief Investor Relations Officer Officer Exhibit 99.1 |
 2 TIDEWATER TIDEWATER 601 Poydras Street, Suite 1900 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;
instability of global financial markets and difficulty accessing credit or capital;
acts of terrorism and piracy; significant weather conditions; unsettled political
conditions, war, civil unrest and governmental actions, especially in higher risk
countries of operations; foreign currency fluctuations; and enforcement of laws related
to the environment, labor and foreign corrupt practices. Participants should consider all of these risk 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: www.tdw.com |
Email: connect@tdw.com |
 SAFETY
– SAFETY – A TOP PRIORITY A TOP PRIORITY |
 A
REMINDER OF A REMINDER OF OUR WORKPLACE OUR WORKPLACE |
 0.00 0.25 0.50 0.75 1.00 5 SAFETY RECORD RIVALS SAFETY RECORD RIVALS LEADING COMPANIES LEADING COMPANIES Total Recordable Incident Rates 2002 2003 2004 2005 2006 2007 Calendar Years 2008 TIDEWATER DOW CHEMICAL DUPONT EXXON/MOBIL BP |
 6 TIDEWATER TIDEWATER TODAY TODAY Solid safety record – One LTA and .18 TRIR in FY’09; good record YTD Unmatched (and growing) global footprint – 50+ years internationally and working in over 60 countries Fleet positioned to earn solid returns on a through-cycle basis – Third consecutive year of record earnings (19.3% Return on Average Equity over the last three fiscal years) Strong balance sheet – no net debt at September 30, 2009 Continuing to invest in new vessels with expanded capabilities – 31 deliveries in last 18 months and 38 under construction at 9/30/09 Track record of prudent capital management and of returning capital to shareholders – consistent paying of dividends and selective share repurchases historically |
 7 Culture is a competitive advantage • Safety-oriented • Deep knowledge of customer needs • Aggressive management of operating and capital costs Maintain maximum financial flexibility to deal with uncertainties Selectively deploy cash to renew fleet with expanded capabilities Opportunistically utilize balance sheet strength • Right acquisitions, right price, right time • Consistently focus on creating shareholder value OUR STRATEGY OUR STRATEGY (Not much has changed!) (Not much has changed!) |
 0 50 100 150 200 250 1965 1970 1975 1980 1985 1990 1995 2000 2005 8 EXPECTED RETIREMENTS EXPECTED RETIREMENTS EXCEED NEW DELIVERIES EXCEED NEW DELIVERIES (Includes AHTS and PSV’s only) (Includes AHTS and PSV’s only) Estimated Estimated as as of of September September 2009 2009 Of the total 2,322 vessels, 335 vessels are 30+ yrs old, Of the total 2,322 vessels, 335 vessels are 30+ yrs old,
another another 500 500 are are 25-29 25-29 yrs yrs old, old, and and 94 94 are are 20-24 20-24 yrs yrs old old Source: ODS-Petrodata and Tidewater As of 9/30/09, there are approximately 579 additional AHTS and PSV’s under construction. Through 9/30/09, an estimated 188 vessels have been delivered in 2009. As of 9/30/09, there are approximately 579 additional AHTS and PSV’s under construction. Through 9/30/09, an estimated 188 vessels have been delivered in 2009. |
 (Includes AHTS and PSV’s only) (Includes AHTS and PSV’s only) 9 VESSEL POPULATION VESSEL POPULATION BY OWNER BY OWNER Estimated Estimated as as of of September September 2009 2009 Source: ODS-Petrodata and Tidewater Tidewater Competitor #2 Competitor #3 Competitor #4 Competitor # 5 Competitor #1 Avg. All Others (1,660 total vessels for 300+ owners) 277 98 92 73 63 59 5 |
 10 Unique global footprint; 50+ years of Int’l experience Unmatched scale and scope of operations 35 of 38 current newbuilds in Int’l yards Longer contracts, better utilization, higher dayrates for new & traditional vessels operating in Int’l markets Solid customer base of NOC’s and IOC’s INTERNATIONAL INTERNATIONAL STRENGTH STRENGTH |
 NOC's 23% Others 37% Super Majors 40% Our top 10 customers (5 Super Majors, 4 NOC’s and one Our top 10 customers (5 Super Majors, 4 NOC’s and one large independent) currently account for 60% of our revenue large independent) currently account for 60% of our revenue CURRENT REVENUE MIX CURRENT REVENUE MIX Quality of Customer Base Quality of Customer Base 11 |
 Active
Vessel Count By Region (excludes stacked vessels) TIDEWATER TODAY TIDEWATER TODAY INTERNATIONAL STRENGTH INTERNATIONAL STRENGTH (as of 9/30/09) (as of 9/30/09) 94% International 6% Domestic (vs. 65% International and 35% Domestic ten years ago) 94% International 6% Domestic (vs. 65% International and 35% Domestic ten years ago) North America 18 (6%) North America 18 (6%) Europe/M.E. 34 (11%) Europe/M.E. 34 (11%) Central/South America 77 (25%) Central/South America 77 (25%) West Africa 132 (42%) West Africa 132 (42%) Far East 49 (16%) Far East 49 (16%) |
 13 Strive for a Balance Between Strive for a Balance Between Performance, Growth and Financial Strength Performance, Growth and Financial Strength Ability to support continued fleet renewal and growth Current environment will present opportunities to utilize our financial strength Funding with internal cash flow and available credit Always weigh build vs. buy criteria GROWING INDUSTRY’S GROWING INDUSTRY’S LARGEST FLEET LARGEST FLEET |
 14 LARGEST NEW FLEET LARGEST NEW FLEET IN THE INDUSTRY… IN THE INDUSTRY… Vessel Commitments Jan. ’00 – Vessel Commitments Jan. ’00 – Sept. ‘09 Sept. ‘09 (1) Includes vessels added to the fleet financed by bareboat charter. (2) $2,488m funded through 9/30/09. *Excludes ENSCO fleet acquisition effected April 1, 2003. At 9/30/09, 156 new vessels in fleet with 4.7 year average age At 9/30/09, 156 new vessels in fleet with 4.7 year average age $1,455m 74 PSV’s $3,042m (2) 209 TOTALS: (1) $275m 65 Crewboats & Tugs $1,312m 70 AHTS Estimated Cost Vessel Count |
 … … AND COUNTING AND COUNTING 15 Our approach to managing construction Our approach to managing construction Building vessels worldwide Due diligence focused on yards Tidewater staff supervise on site Vessels Under Construction Vessels Under Construction As of September 30, 2009 As of September 30,
2009 38
Total 22 PSV 3 Crew and Tug 13 AHTS Count Estimated delivery schedule – 13 remaining in FY’ 10, 10 in FY’ 11, 13 in FY’ 12 and 2 thereafter. CAPX of $227m remaining in FY’ 10, $168m in FY’ 11, $146m in FY’ 12 and $12m in FY’ 13 Estimated delivery schedule – 13 remaining in FY’ 10, 10 in FY’ 11, 13 in FY’ 12 and 2 thereafter. CAPX of $227m remaining in FY’ 10, $168m in FY’ 11, $146m in FY’ 12 and $12m in FY’ 13 |
 Out
With the Traditional – Out With the Traditional – In With the New In With the New 0 100 200 300 400 500 Active Fleet Dispositions 16 LARGEST NEW FLEET LARGEST NEW FLEET IN THE INDUSTRY IN THE INDUSTRY (as of 9/30/09) (as of 9/30/09) (A) Net new vessels added to the fleet since January 2000, including 38 vessels under construction at 9/30/09. 348 348 (B) 484 484 (C) 194 New Vessels 194 New Vessels (A) 394 Sold 394 Sold 90 Scrapped 90 Scrapped (C) 484 vessel dispositions generated
$624 million of proceeds and $260 million of gains. (B) Total fleet count excludes 70 stacked
vessels as of 9/30/09. |
 $0.00 $2.00 $4.00 $6.00 $8.00 Fiscal 2004 Fiscal 2005 Fiscal 2006 Fiscal 2007 Fiscal 2008 Fiscal 2009 SIGNIFICANT SIGNIFICANT EARNINGS GROWTH EARNINGS GROWTH 17 50% Five-Year 50% Five-Year Compounded Compounded Annual Earnings Growth Rate Annual Earnings Growth Rate FY End Stock Price $28.13 $38.86
$55.23 $58.58 $55.11 $37.13 ** 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. $1.03 $1.78 $3.33 $5.94 $6.39 $7.89 |
 STRONG
BALANCE SHEET STRONG BALANCE SHEET ~ $750 million of Available Liquidity at 9/30/09 (Cash plus $450m Revolver) ~ $750 million of Available Liquidity at 9/30/09 (Cash plus $450m Revolver) $300 $275 Long-term Debt $2,245 $2,369 Stockholders’ Equity 2.1% 0% Net Debt to Total Cap $251 $296 Cash March 2009 September 2009 ($ in Millions) ($ in Millions) 18 |
 ($ in Thousands, Except Per Share Data) SELECTED FINANCIAL SELECTED FINANCIAL HIGHLIGHTS HIGHLIGHTS Six Months Ended $3.49 $3.05 Adjusted EPS* $180,207 $156,467 Adjusted Net Earnings* $194,702 $164,833 Net Cash from Operations $259,845 $212,532 Capital Expenditures $686,883 $622,133 Revenues 9/30/08 9/30/09 19 * Adjusted Net Earnings and Adjusted EPS for the six months ended 9/30/09 excludes $48.1 million, or $0.94 per share, related to provision for Venezuelan operations and $34.3 million, or $0.66 per share, tax benefit related to favorable resolution of tax litigation. * Adjusted Net Earnings and Adjusted EPS for the six months ended 9/30/09 excludes $48.1 million, or $0.94 per share, related to provision for Venezuelan operations and $34.3 million, or $0.66 per share, tax benefit related to favorable resolution of tax litigation. ($ in Thousands, Except Per Share Data) |
 USING
CASH TO GROW OUR USING CASH TO GROW OUR BUSINESS & RETURN TO BUSINESS & RETURN TO SHAREHOLDERS SHAREHOLDERS $0 $100 $200 $300 $400 $500 $600 $700 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 CAPX Dividend Share Repurchase (in millions) 20 Over this ten year period, TDW invested $2.7 billion in CAPX ($2.3 billion in our new
fleet), and paid out $355 million in dividends and $516 million through
share repurchases. Over this ten year period, TDW invested $2.7 billion in
CAPX ($2.3 billion in our new fleet), and paid out $355 million in
dividends and $516 million through share repurchases. |
 $0 $100 $200 $300 $400 $500 $600 $700 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Fiscal Years FLEET CASH FLEET CASH OPERATING MARGINS OPERATING MARGINS 21 Note: Cash operating margins are defined as vessel revenue less vessel operating expenses. 50% 40% 30% 20% 10% 60% Total Fleet Operating Margin % New Vessels Traditional Vessels 38.6% 37.6% 46.5% 41.9% 36.9% 38.7% 49.1% 54.6% 51.9% 51.3% |
 0 50 100 150 200 Q1FY10 Operating Margin $156.8 FLEET RENEWAL FLEET RENEWAL PROVIDES SCOPE FOR PROVIDES SCOPE FOR MARGIN GROWTH MARGIN GROWTH Traditional Vessels (37%) New Vessels (63%) ($ in millions) 22 |
 0 50 100 150 200 Q1FY10 Operating Margin Vessel Disposals $156.8 FLEET RENEWAL FLEET RENEWAL PROVIDES SCOPE FOR PROVIDES SCOPE FOR MARGIN GROWTH MARGIN GROWTH Assume ~ 2/3 of traditional vessels are disposed of over the next few years ($ in millions) ($34.9) 23 |
 0 50 100 150 200 Q1FY10 Operating Margin Vessel Disposals CIP $156.8 FLEET RENEWAL FLEET RENEWAL PROVIDES SCOPE FOR PROVIDES SCOPE FOR MARGIN GROWTH MARGIN GROWTH 46 vessels currently under construction at 6/30/09 Analysis assumes: • Average dayrate of $20,000/day • Utilization of 90% • Cash operating margin of 55% ($ in millions) ($34.9) +$41.5 24 |
 0 50 100 150 200 Q1FY10 Operating Margin Vessel Disposals CIP +5% Utilization +$1,000 Dayrate +24% Operating Margin $156.8 $194.8 FLEET RENEWAL FLEET RENEWAL PROVIDES SCOPE FOR PROVIDES SCOPE FOR MARGIN GROWTH MARGIN GROWTH Near-term vessel retirements followed by market upturn should positively impact utilization and dayrates Analysis assumes +5% on utilization and +$1,000 on average dayrates for existing vessels ($ in millions) ($34.9) +$41.5 +$14.8 +$16.7 25 |
 0 50 100 150 200 Q1FY10 Operating Margin Vessel Disposals CIP +5% Utilization +$1,000 Dayrate +24% Operating Margin $156.8 $194.8 FLEET RENEWAL FLEET RENEWAL PROVIDES SCOPE FOR PROVIDES SCOPE FOR MARGIN GROWTH MARGIN GROWTH ($34.9) +$41.5 +$14.8 +$16.7 26 This information is not meant to be a prediction of future quarterly performance, but
simply an indication of quarterly operating margin impacts resulting from
future fleet additions and reductions, and fluctuations in vessel
utilization and day rates. This information is not meant to be a prediction
of future quarterly performance, but simply an indication of quarterly
operating margin impacts resulting from future fleet additions and reductions, and fluctuations in vessel utilization and day rates.
|
 27 FINANCIAL STRATEGY FINANCIAL STRATEGY Deploy Deploy Capital Capital Deliver Deliver Results Results Maintain Financial Maintain Financial Strength Strength Focused on Long Term Shareholder Value Focused on Long Term Shareholder Value |
 TIDEWATER TIDEWATER PRITCHARD CAPITAL PARTNERS PRITCHARD CAPITAL PARTNERS ENERGIZE 2010 CONFERENCE ENERGIZE 2010 CONFERENCE January 7, 2010 Jeff Platt Jeff Platt Executive Vice President Executive Vice President Joseph M. Bennett Joseph M. Bennett Executive Vice President and Executive Vice President and Chief Investor Relations Chief Investor Relations Officer Officer |
 TIDEWATER TIDEWATER APPENDIX APPENDIX |
 30 Current Vessel Demand Dynamics: 2,322 Global Vessel Count (AHTS & PSV only) 530 Global Working Rigs 4.4 Vessel to Rig Ratio Possible Incremental Vessel Demand: 156 New rigs under construction (???Cancellations???) VESSEL / RIG RATIO VESSEL / RIG RATIO Source: ODS-Petrodata and Tidewater Estimated as of September 2009 |
 Jackups Semi Drillships June 2008 379 145 30 September 2009 310 134 44 Variance (69) (11) 14 31 GOM accounts for 44 of the 69 working jackup count variance GOM accounts for 44 of the 69 working jackup count variance WORKING RIG COUNTS WORKING RIG COUNTS Source: ODS-Petrodata and Tidewater |
 RIGS
CONTRACTED BY RIGS CONTRACTED BY OUR TOP 10 CUSTOMERS OUR TOP 10 CUSTOMERS (Estimated as of September 2009) (Estimated as of September 2009) Jackups Semi Drillship September 2009 working rigs 310 134 44 Working for top 10 customers 72 67 20 23% 50% 45% * PEMEX alone has 33 of the 72 jackups * PEMEX alone has 33 of the 72 jackups Source: ODS-Petrodata and Tidewater 32 |
 50% 60% 70% 80% 90% 9/06 3/07 9/07 3/08 9/08 3/09 9/09 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 33 INTERNATIONAL VESSELS INTERNATIONAL VESSELS Dayrates and Utilization Dayrates and Utilization $100 change in dayrate = $9.4M in revenue 1% change in utilization = $15.7M in revenue * Dayrate and utilization information is for all classes of vessels operating
international. Utilization Dayrate |
 $3,000 $5,000 $7,000 $9,000 $11,000 $13,000 $15,000 $17,000 $19,000 09/06 03/07 09/07 03/08 09/08 03/09 09/09 New Vessels Traditional Vessels INTERNATIONAL INTERNATIONAL VESSEL VESSEL DAYRATES DAYRATES * Dayrate information is for all classes of vessels operating internationally.
34 |
 30% 40% 50% 60% 70% 80% 90% 9/06 3/07 9/07 3/08 9/08 3/09 9/09 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 35 DOMESTIC VESSELS DOMESTIC VESSELS Dayrates and Utilization Dayrates and Utilization * Dayrate and utilization information is for all classes of vessels operating in the
U.S. Utilization Dayrate |
 $3,000 $5,000 $7,000 $9,000 $11,000 $13,000 $15,000 $17,000 $19,000 $21,000 $23,000 09/06 03/07 09/07 03/08 09/08 03/09 09/09 New Vessels Traditional Vessels DOMESTIC VESSEL DOMESTIC VESSEL DAYRATES DAYRATES * Dayrate information is for all classes of vessels operating in the U.S. 36 |
 SELECTED FINANCIAL SELECTED FINANCIAL HIGHLIGHTS HIGHLIGHTS * Cash Operating Margin % is defined as vessel revenue less vessel OPEX, * Cash Operating Margin % is defined as vessel revenue less vessel OPEX, divided by vessel revenue. divided by vessel revenue. ($ in Thousands, Except Per Share Data) Six Months Ended 47.7% 48.6% Cash Operating Margin %* $352,099 $311,177 Vessel OPEX $70,423 $72,074 G&A expense $16,238 $17,912 Gain on asset disp. $673,008 $604,999 Vessel Revenues 9/30/08 9/30/09 37 |
 38 IMPROVING AVERAGE AGE IMPROVING AVERAGE AGE OF TIDEWATER FLEET OF TIDEWATER FLEET Assumptions: 1) Average 45 vessel disposals per year in future (averaged 47 per year
last three years). 2) Include 38 vessels under construction in year delivered
plus additional newbuilds/acquisitions from approximately $500 million
per year of future commitments. Tidewater is not committed to spending $500 million annually, but this level is used as
an assumption in estimating average fleet age in the future. 0 100 200 300 400 500 600 3/31/04 Actual 3/31/05 Actual 3/31/06 Actual 3/31/07 Actual 3/31/08 Actual 12/31/08 Actual 12/31/09 Estimate 12/31/10 Estimate 12/31/11 Estimate 12/31/12 Estimate 5 10 15 20 25 |