Attached files
| file | filename |
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| 8-K - FORM 8-K - TIDEWATER INC | d8k.htm |
| EX-99.2 - TRANSCRIPT OF PRESENTATION - TIDEWATER INC | dex992.htm |
 UBS Global Oil and Gas Conference
May 27, 2010
DEAN E. TAYLOR
Chairman, President and CEO
JOSEPH M. BENNETT
Executive Vice President and
Chief Investor Relations Officer
EXHIBIT 99.1 |
 Phone: 504.568.1010 | Fax:
504.566.4580 | Web: www.tdw.com
| Email: connect@tdw.com
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
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, such as expropriation, especially in higher risk countries of
operations; foreign currency fluctuations; labor influences proposed by international
conventions; 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. 2
601 Poydras
Street, Suite 1900, New Orleans, LA 70130 |
 Key
Takeaways History of earnings growth and solid
returns
World’s largest and newest fleet provides
basis for continued earnings growth
Strong balance sheet
3 |
 Safety –
A Top Priority
4 |
 Many
Safety Challenges (Weather, Security, etc.)
5 |
 An
Example of our Safety Culture 6
Damon B. Bankston |
 Significant Earnings Growth
7
32% Six-Year Compounded
Annual Earnings Growth Rate
**
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
$.87
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. Adjusted Return
On Avg. Equity
4.3%
7.2%
12.4%
18.5% 18.3%
19.5% 11.9%
$0.00
$2.00
$4.00
$6.00
$8.00
Fiscal
2004
Fiscal
2005
Fiscal
2006
Fiscal
2007
Fiscal
2008
Fiscal
2009
Fiscal
2010 |
 Vessel Count
Estimated Cost
AHTS
80
$1,426m
PSV’s
74
$1,449m
Crewboats
& Tugs
67
$289m
TOTALS:
(1)
221
$3,164m
(2)
(1) Includes vessels added to the fleet financed by leases.
(2) $2,704m (85%) funded through 3/31/10.
The Largest Modern Fleet
in the Industry…
8
At 3/31/10, 170 new vessels in fleet with ~5 year average age
Vessel Commitments
Jan.
’00
–
March
’10 |
 Count
AHTS
18
PSV
16
Crew and Tug
2
Total
36
Vessels Under Construction*
As
of
March
31,
2010
…
And our Lead is Growing
9
* Includes five new vessels committed to purchase as of 3/31/10
Estimated delivery schedule –
21 in FY ‘11, 13 in FY ‘12 and
2 thereafter.
CAPX of $334m in FY ‘11, $135m in
FY ‘12 and $1m in FY ‘13 |
 Vessel Population By Owner
(Includes AHTS and PSV’s
only) Estimated as of Late-April 2010
10
Source:
ODS-Petrodata
and
Tidewater
Tidewater
Competitor #2
Competitor #3
Competitor #4
Competitor # 5
Competitor #1
Avg.
All Others
(1,774 total
vessels for
300+ owners)
280
108
106
71
63
60
5 |
 0
5
10
15
20
3/31/06
3/31/07
3/31/08
12/31/08
12/31/09
12/31/10
12/31/11
12/31/12
12/31/13
Significant Average Age Improvement
11
Assumptions: 1) Average 45 vessel disposals per year in future (averaged 47 per
year last three years). 2) Includes
36
vessels
under
construction
(including
five
purchase
commitments)
in
year
delivered
plus
additional
newbuilds/acquisitions
from
approximately
$500
million
per
year
of
future
commitments
(average
additional
20
vessels
per year). 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. 20
17
8 |
 Avg. Dayrates
$15,705*
$17,276
(+ 10%)
$19,003
(+ 10%)
83.1%*
85.0%
90.0%
$5.75
EPS
$7.26
EPS
$10.97
EPS
266 Vessel count assumption (170 current new vessels + 36 under construction + 20
additional new vessels per year for three years).
Where Could Fiscal 2014 Find Us?
Potential for Earnings Acceleration
* 3/31/10 quarter actual stats
This info is not meant to be a
prediction of future earnings
performance, but simply an
indication of earning sensitivities
resulting from future fleet
additions and reductions and
varying operating assumptions.
12 |
 International Strength
Unique global footprint; 50+ years of Int’l experience
Unmatched scale and scope of operations
International market opportunities
Growth
Longer contracts
Better utilization
Higher dayrates
Solid customer base of NOC’s
and IOC’s
13 |
 Our
Global Footprint “Boots on the Ground”
14 |
 15
North America
20
(7%)
Central/South America
69
(23%)
Europe / M.E.
32
(11%)
Far East
42
(14%)
International / U.S.
2010: 93% / 7%
2000: 62% / 38%
Vessel Distribution by Region
West Africa
131
(45%)
(Excludes stacked vessels – as of 3/31/10)
|
 -50%
0%
50%
100%
150%
200%
Mar-05
Mar-06
Mar-07
Mar-08
Mar-09
Mar-10
TDW
DJIA
S&P500
OSX
OSX 52%
S&P 500 9%
DJIA 16%
TDW 36%
Returns vs. the Market
Five Year Stockholder Return
16 |
 March 2010
March 2009
Cash
$223
$251
Stockholders’
Equity
$2,464
$2,245
Long-term Debt
$275
$300
Net Debt to Total Cap
2.1%
2.1%
A Strong Balance Sheet
and Ready Liquidity
17
~ $675 million of Available Liquidity at 3/31/10
(Cash plus $450m Revolver)
($ in Millions) |
 Year Ended
3/31/10
3/31/09
Revenues
$1,169
$1,391
Adjusted Net Earnings*
$279
$407
Adjusted EPS*
$5.41
$7.89
Net Cash from Operations
$328
$526
Capital Expenditures
$452
$474
* Adjusted Net Earnings and Adjusted EPS for the year ended 3/31/10 excludes
$44.6 million, or $0.87 per share, related to provision for Venezuelan operations,
$36.1 million, or $0.70 per share, tax benefit related to favorable
resolution of tax litigation and $11.4 million, or $0.22 per share, charge
for the proposed settlement with the SEC of the company’s FCPA matter.
Selected Financial Highlights
18
$ in Millions,
Except Per Share Data |
 What
Tidewater has to offer Investors 19
History of earnings growth and solid
returns
World’s largest and newest fleet provides
basis for continued earnings growth
Strong balance sheet |
 Financial Strategy
Maintain Financial Strength
Deploy Capital
Deliver Results
Focused on Long Term Shareholder Value
20 |
 UBS Global Oil and Gas Conference
May 27, 2010
DEAN E. TAYLOR
Chairman, President and CEO
JOSEPH M. BENNETT
Executive Vice President and
Chief Investor Relations Officer |
 Appendix
22 |
 0.00
0.25
0.50
0.75
1.00
TIDEWATER
DOW CHEMICAL
DUPONT
EXXON MOBIL
BP
Safety Record Rivals
Leading Companies
23
Total Recordable Incident Rates
2002
2003
2004
2005
2006
2007
Calendar Years
2008 |
 0
100
200
300
400
500
Active Fleet
Dispositions
Continually Acquiring New and
Disposing of Mature Vessels
(As of 3/31/10)
24
330
(B)
502
(C)
206 New Vessels
(A)
411 Sold
91 Scrapped
(A) Net new vessels
added
to
the
fleet
since
January
2000,
including
36
vessels
under
construction
at
3/31/10.
This
new
vessel total excludes 15 new vessels that were acquired, then disposed (mostly to a
TDW joint venture.) (B) Total fleet count excludes 83 stacked vessels as of
3/31/10. (C) 502 vessel dispositions generated $653 million of proceeds and
$270 million of gains over the last 11 years. |
 Fleet
Cash Operating
Margins
25
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%
46.8%
$0
$100
$200
$300
$400
$500
$600
$700
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Fiscal Years |
 NOC's
24%
Others
35%
Super Majors
41%
Current Revenue Mix
Quality of Customer Base
26
Our top 10 customers in Fiscal 2010 (6 Super Majors,
3 NOC’s
and one large independent) accounted for 63% of our revenue
|
 Our
Significant Uses of Cash
27
Over this eleven year period, TDW invested $3.2 billion in CAPX
($2.8 billion in our new fleet), and paid out $407 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
2010
CAPX
Dividend
Share Repurchase |
 Has
Our Industry Bottomed Yet? Global Economies Improving
Credit Markets Healthier
Oil & Gas Demand Rising
Oil & Gas Prices at Comfortable Level
E&P Spending +11% for 2010
Offshore Rig Count –
Jackups
Recovering; Floaters
Stronger
28 |
 50%
60%
70%
80%
90%
3/07
9/07
3/08
9/08
3/09
9/09
3/10
Utilization
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
Dayrate
* Dayrate
and utilization information is for all classes of vessels operating
international. International Vessels
Dayrates
and Utilization
29
$100 change in dayrate
= $7.8M in revenue
1% change in utilization = $15.4M in revenue |
 International Vessels Dayrates
30
* Dayrate
and utilization information is for all classes of vessels operating
international. $3,000
$5,000
$7,000
$9,000
$11,000
$13,000
$15,000
$17,000
$19,000
03/07
09/07
03/08
09/08
03/09
09/09
03/10
Traditional Vessels
New Vessels |
 Domestic Vessels
Dayrates
and Utilization
31
* Dayrate
and utilization information is for all classes of vessels operating in the
U.S. 30%
40%
50%
60%
70%
80%
90%
3/07
9/07
3/08
9/08
3/09
9/09
3/10
Utilization
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
Dayrate |
 Domestic Vessels Dayrates
32
* Dayrate
and utilization information is for all classes of vessels operating in the
U.S. $3,000
$5,000
$7,000
$9,000
$11,000
$13,000
$15,000
$17,000
$19,000
$21,000
$23,000
03/07
09/07
03/08
09/08
03/09
09/09
03/10
Traditional Vessels
New Vessels |
 Recent Accomplishments
No lost time accidents since August 2008
Respectable earnings & returns in a trough (tough) market
Selected acquisitions of choice assets
Disciplined disposal of traditional equipment
Delivery of 45 new vessels over last two fiscal years
Balance Sheet still solid
Strategy working –
Poised to seize opportunities
33 |
 0
50
100
150
200
250
300
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010
The Worldwide Fleet -
Retirements
Expected to Exceed New Deliveries
34
Source:
ODS-Petrodata
and
Tidewater
As of late-April 2010, there are
approximately 456 additional AHTS
and PSV’s
(~18.5% of the global fleet)
under construction.
Global fleet estimated at 2,462 vessels, including 366
vessels that are
30+ yrs old (15%) , and another
477 vessels that are 25-29 yrs old (19%).
(Includes AHTS and PSV’s only) Estimated as of Late-April
2010 |
 Source:
ODS-Petrodata
and
Tidewater
Working Rig Counts
“Peak to Present”
35
GOM accounts for 21 of the 56 working jackup
count variance
Jackups
Semi
Drillships
Total
June 2008
379
145
30
554
Late-April
2010
323
150
46
519
Variance
(56)
5
16
(35) |
 36
Working for
TDW Top 10
customers
Working for
other
customers
Working for
TDW Top 10
customers
Working for
other
customers
Our
top
10
customers
are
operating
nearly
22%
of
world
jackups
and
46%
of
floater
fleet.
Jackups
(323 Working Rigs)
Floater Rigs
(196 Working Rigs)
69
254
91
105
Rigs
Contracted
By
Our
Top
10
Customers
(Estimated as of Late-April 2010)
|