Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - TIDEWATER INC | d8k.htm |
| EX-99.2 - TRANSCRIPT OF THE PRESENTATION - TIDEWATER INC | dex992.htm |
 Barclays Capital CEO Energy-Power Conference
Barclays Capital CEO Energy-Power Conference
September 16, 2010
September 16, 2010
Dean E. Taylor
Dean E. Taylor
Chairman, President and
Chairman, President and
Chief Executive Officer
Chief Executive Officer
Quinn P. Fanning
Quinn P. Fanning
Executive Vice President
Executive Vice President
and Chief Financial Officer
and Chief Financial Officer
Joseph M. Bennett
Joseph M. Bennett
Executive Vice President
Executive Vice President
and Chief Investor Relations Officer
and Chief Investor Relations Officer
Exhibit 99.1 |
 FORWARD-LOOKING STATEMENTS
FORWARD-LOOKING STATEMENTS
2
Phone:
504.568.1010
Fax:
504.566.4580
Web:
www.tdw.com
Email:
connect@tdw.com
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. |
 KEY
TAKEAWAYS Culture of safety & operating excellence
History of earnings growth and solid returns
World’s largest and newest fleet provides
basis for continued earnings growth
Strong balance sheet allows us to act upon
available opportunities
3 |
 SM
SAFETY –
SAFETY –
A TOP PRIORITY
A TOP PRIORITY
4 |
 0.00
0.25
0.50
0.75
1.00
Total Recordable Incident Rates
Calendar Years
2002
2003
2004
2005
2006
2007
2008
2009
TIDEWATER
DUPONT
DOW CHEMICAL
EXXON MOBIL
SAFETY RECORD RIVALS
SAFETY RECORD RIVALS
LEADING COMPANIES
LEADING COMPANIES
5 |
 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% SIGNIFICANT EARNINGS GROWTH
SIGNIFICANT EARNINGS GROWTH
6
$5.41
$7.89
$1.03
$1.78
$3.33
$5.94
$6.39
$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
86
$1,557m
PSV’s
77
$1,507m
Crewboats
& Tugs
67
$290m
TOTALS:
230
$3,354m
(1)
(1) $2,850m (85%) funded through 6/30/10
.
THE LARGEST MODERN FLEET
THE LARGEST MODERN FLEET
IN THE INDUSTRY…
IN THE INDUSTRY…
At 6/30/10, 177 new vessels in fleet with ~5 year average age
Vessel Commitments
Jan. ’00 –
June ‘10
7 |
 00
55
1010
1515
2020
2525
3030
3535
20012001
20022002
20032003
20042004
20052005
20062006
20072007
20082008
20092009
20102010
20112011
20122012
20132013
Built
Acquired
VESSEL DELIVERIES
VESSEL DELIVERIES
8
Built
Acquired
Fiscal Year
Fiscal years 2011-2013 include actual deliveries through 6/30/10 and
estimated deliveries of vessels committed to build or acquire as
of 6/30/10
Total 230 vessels with a
capital cost of $3.354 billion
Recent
Construction
Commitments |
 Count
AHTS
16
PSV
17
Crew and Tug
2
Total
35
Vessels Under Construction*
As of June 30, 2010
…
…
AND OUR LEAD IS GROWING
AND OUR LEAD IS GROWING
* Includes eleven new vessels committed to purchase as of 6/30/10
Estimated delivery schedule –
20 in remainder of FY ‘11,
13 in FY ‘12 and 2 thereafter
CAPX of $366m in remainder of FY ‘11,
$137m in FY ‘12 and $1m in FY ‘13
9 |
 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
SIGNIFICANT AVERAGE AGE IMPROVEMENT
Assumptions: 1) Average 45 vessel disposals per year in future (averaged 47 per
year last three years). 2) Includes 35 vessels under construction (including
eleven 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
10
The current average “economic age”
of our
vessel fleet is ~5.5 years (based upon NBV) |
 RECENT VESSEL COMMITMENTS
RECENT VESSEL COMMITMENTS
11
Amounts depict vessel count and total cost in quarter commitment
was made to acquire (not when delivery or payments were made)
4
1
4
6
9
0
2
4
6
8
10
9/30/09
Qtr
12/31/09
Qtr
3/31/10
Qtr
6/30/10
Qtr
9/30/10
Qtd
$64M
$55M
$72M
$179M
1 MPSV
4 AHTS
6 AHTS
6 AHTS
3 PSV’s
24 vessels over five quarters with
total capital cost of $470 million
$100M
4 PSV’s |
 Senior Unsecured Notes
$425 million
Average Life to Maturity
~ 9 years
Weighted Average Coupon
4.25%
Closing Dates
$310 million 10/15/10
$115 million 12/30/10
NEW PRIVATE PLACEMENT FINANCING
NEW PRIVATE PLACEMENT FINANCING
12 |
 PRO
FORMA IMPACT OF FINANCING PRO FORMA IMPACT OF FINANCING
13
7%
Net Debt / Net Capitalization
June 30, 2010 Pro Forma info:
22%
Total Debt / Capitalization
$2,474 million
Shareholders Equity
$700 million
Total Debt
$523 million
Cash & Cash Equivalents
Pro forma liquidity as of 6/30/10 of ~ $975 million,
including $450 million revolving credit facility |
 Quarter Ended
6/30/10
6/30/09
Revenues
$263
$327
Adjusted Net Earnings*
$40
$92
Adjusted EPS*
$0.77
$1.79
Net Cash from Operations
$53
$70
Capital Expenditures
$141
$92
* Adjusted Net Earnings and Adjusted EPS for the quarter ended 6/30/09 excludes
$47.7 million,
or
$0.93
per
share,
related
to
provision
for
Venezuelan
operations.
SELECTED FINANCIAL HIGHLIGHTS
SELECTED FINANCIAL HIGHLIGHTS
$ in Millions,
Except Per Share Data
14 |
 Over
an 11-year period, Tidewater invested $3.2 billion in CAPX ($2.8 billion in the “new”
fleet),
and paid out $923 million through dividends and share repurchases. Over the
same period, CFFO and proceeds from dispositions were $3.1 billion and $640
million, respectively PRIMARY USES OF CASH
PRIMARY USES OF CASH
15 |
 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
INTERNATIONAL STRENGTH
INTERNATIONAL STRENGTH
16 |
 OUR
GLOBAL FOOTPRINT OUR GLOBAL FOOTPRINT
Vessel Distribution by Region
Vessel Distribution by Region
(excludes
(excludes
stacked
vessels
–
as
of
6/30/10)
North America
20
(7%)
Central/South America
61
(22%)
West Africa
126
(44%)
Europe / M.E.
37
(13%)
Far East
41
(14%)
International / U.S.
2010: 93% / 7%
2000: 62% / 38%
17 |
 VESSEL POPULATION BY OWNER
VESSEL POPULATION BY OWNER
(Includes AHTS and PSV’s
only) Estimated as of Late-July 2010
Tidewater
Competitor #2
Competitor #3
Competitor #4
Competitor # 5
Competitor #1
Avg.
All Others (1,774
total
vessels for
300+ owners)
Tidewater fleet includes 126 vessel additions since 2000
18
5
60
65
72
110
119
287
0
100
200
300
400
500
Source: ODS-Petrodata and Tidewater
|
 NOC's
24%
Others
35%
Super Majors
41%
Our top 10 customers in Fiscal 2010 (6 Super Majors,
3 NOC’s
and one large independent) accounted for 63% of our revenue
CURRENT REVENUE MIX
CURRENT REVENUE MIX
Quality of Customer Base
Quality of Customer Base
19 |
 0
50
100
150
200
250
300
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010
THE WORLDWIDE FLEET -
THE WORLDWIDE FLEET -
RETIREMENTS
RETIREMENTS
EXPECTED TO EXCEED NEW DELIVERIES
EXPECTED TO EXCEED NEW DELIVERIES
(Includes AHTS and PSV’s
only) Estimated as of
Late-July
2010
Source: ODS-Petrodata
and Tidewater
As of late-July 2010, there are approximately 411 additional AHTS and
PSV’s
(~16% of the global fleet) under construction.
Global fleet estimated at 2,510 vessels, including 323 vessels
that are 30+ yrs old (13%),
and another 473 vessels that are
25-29 yrs old (19%)
20
Vessels > 25 years old today |
 Avg. Dayrates
$14,943*
$16,437
(+ 10%)
$18,081
(+ 10%)
85.3%*
85.0%
90.0%
~$4.25
EPS
~$6.00
EPS
~$9.50
EPS
263 vessels assumes (177 current new vessels + 35 under construction + ~ 20
additional new vessels per year for three years).
WHERE COULD FISCAL 2014 FIND US?
WHERE COULD FISCAL 2014 FIND US?
Potential for Earnings Acceleration
Potential for Earnings Acceleration
* 6/30/10 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.
21 |
 Maintain
Financial Strength
EVA-Based Investments
On Through-cycle Basis
Deliver Results
FINANCIAL STRATEGY FOCUSED ON
FINANCIAL STRATEGY FOCUSED ON
CREATING LONG-TERM SHAREHOLDER VALUE
CREATING LONG-TERM SHAREHOLDER VALUE
22 |
 Barclays Capital CEO Energy-Power Conference
Barclays Capital CEO Energy-Power Conference
September 16, 2010
September 16, 2010
Dean E. Taylor
Chairman, President and
Chief Executive Officer
Quinn P. Fanning
Executive Vice President
and Chief Financial Officer
Joseph M. Bennett
Executive Vice President
and Chief Investor Relations Officer |
 Appendix
Appendix
24 |
 RECENT ACCOMPLISHMENTS
RECENT ACCOMPLISHMENTS
First full fiscal year without a lost time accident (FY 2010)
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 full fiscal years
Balance sheet still solid
Strategy working –
Poised to seize opportunities
25 |
 0
100
200
300
400
500
Active Fleet
Dispositions
CONTINUALLY ACQUIRING NEW AND
CONTINUALLY ACQUIRING NEW AND
DISPOSING OF MATURE VESSELS
DISPOSING OF MATURE VESSELS
(As of 6/30/10)
(As of 6/30/10)
320
(B)
517
(C)
212
New
Vessels
(A)
420 Sold
97 Scrapped
26
(A) Net new vessels added to the fleet since January 2000, including
35 vessels under construction at 6/30/10.
This new vessel total excludes 18 new vessels that were
acquired, then disposed (mostly to a TDW joint venture.) (B) Total fleet count excludes 89
stacked vessels as of 6/30/10. (C) 517 vessel dispositions generated $665 million of proceeds and
$276 million of gains over the last 11 years. |
 FLEET CASH OPERATING MARGINS
FLEET CASH OPERATING MARGINS
Note:
Cash
operating
margins
are
defined
as
vessel
revenue
less
vessel
operating
expenses
$0
$100
$200
$300
$400
$500
$600
$700
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Fiscal Years
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%
27 |
 50%
60%
70%
80%
90%
6/07
12/07
6/08
12/08
6/09
12/09
6/10
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
INTERNATIONAL VESSELS
Dayrates
Dayrates
and Utilization
and Utilization
$100 change in dayrate
= $7.8M in revenue
1% change in utilization = $15.4M in revenue
28 |
 INTERNATIONAL VESSEL DAYRATES
INTERNATIONAL VESSEL DAYRATES
* 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
06/07
12/07
06/08
12/08
06/09
12/09
06/10
Traditional Vessels
New Vessels
29 |
 30%
40%
50%
60%
70%
80%
90%
6/07
12/07
6/08
12/08
6/09
12/09
6/10
Utilization
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
Dayrate
DOMESTIC VESSELS
DOMESTIC VESSELS
Dayrates
Dayrates
and Utilization
and Utilization
* Dayrate
and utilization information is for all classes of vessels operating in the
U.S. 30 |
 DOMESTIC VESSEL DAYRATES
DOMESTIC VESSEL DAYRATES
* 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
06/07
12/07
06/08
12/08
06/09
12/09
06/10
Traditional Vessels
New Vessels
31 |
 Source:
ODS-Petrodata
and
Tidewater
WORKING RIG COUNTS
WORKING RIG COUNTS
“Peak to Present”
“Peak to Present”
GOM accounts for 35 of the 71 working jackup
count variance from June 2008
(Peak) to July 2010 (post-Horizon)
GOM Semi & Drillship count drops by 23 units (from 31 to 8) between April and
July 2010; offset by an increase of 7 units in the rest of world
Jackups
Semis
Drillships
Total
June 2008
(Peak)
379
145
30
554
Late-April 2010
(pre-Horizon)
323
150
46
519
Late-July 2010
(post-Horizon)
308
142
38
488
32 |
 Other Operators
Top 10 Customers
Tidewater’s top 10 customers contract nearly 25% of the working
worldwide jackup
fleet and 49% of the working worldwide floater fleet
Jackups
(308 Working Rigs)
Floater Rigs
(180 Working Rigs)
76
232
88
RIGS CONTRACTED BY OUR
RIGS CONTRACTED BY OUR
TOP 10 CUSTOMERS
TOP 10 CUSTOMERS
(Estimated as of Late-July 2010)
33
Source: ODS-Petrodata
and Tidewater
Other Operators
Top 10 customers
92 |
 -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
RETURNS vs
the MARKET
the MARKET
FIVE YEAR STOCKHOLDER RETURN
FIVE YEAR STOCKHOLDER RETURN
34 |