Attached files
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| EX-99.2 - TRANSCRIPT OF THE PRESENTATION - TIDEWATER INC | dex992.htm |
| 8-K - FORM 8-K - TIDEWATER INC | d8k.htm |
 Johnson Rice & Company Energy Conference
Johnson Rice & Company Energy Conference
October 5, 2010
October 5, 2010
Dean E. Taylor
Dean E. Taylor
Chairman, President and
Chairman, President and
Chief Executive Officer
Chief Executive 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 |
 0
5
10
15
20
25
30
35
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Built
Acquired
Post 6/30/10
VESSEL DELIVERIES
VESSEL DELIVERIES
8
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
At 6/30/10, total 230 vessels with
a capital cost of $3.354 billion
Recent
Construction/Acq.
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)
5
2
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
$95M
$55M
$72M
$179M
1 MPSV
1 PSV
4 AHTS
6 AHTS
6 AHTS
3 PSV’s
26 vessels over five quarters with
total capital cost of $525 million
$124M
4 PSV’s
1 AHTS |
 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
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
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)
5
60
65
72
110
119
287
0
100
200
300
400
500
Tidewater fleet includes 126 vessel additions since 2000
18 |
 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 |
 Johnson Rice & Company Energy Conference
Johnson Rice & Company Energy Conference
October 5, 2010
October 5, 2010
Dean E. Taylor
Dean E. Taylor
Chairman, President and
Chairman, President and
Chief Executive Officer
Chief Executive Officer
Joseph M. Bennett
Joseph M. Bennett
Executive Vice President
Executive Vice President
and Chief Investor Relations Officer
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
(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.
26 |
 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 |