Attached files
| file | filename |
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| 8-K - FORM 8-K - TIDEWATER INC | d277568d8k.htm |
| EX-99.2 - TRANSCRIPT OF THE PRESENTATION - TIDEWATER INC | d277568dex992.htm |
 PRITCHARD CAPITAL PARTNERS
9
TH
ANNUAL ENERGIZE CONFERENCE
PRITCHARD CAPITAL PARTNERS
PRITCHARD CAPITAL PARTNERS
9
9
TH
TH
ANNUAL ENERGIZE CONFERENCE
ANNUAL ENERGIZE CONFERENCE
Jan. 4, 2012
Jan. 4, 2012
JOSEPH M. BENNETT
JOSEPH M. BENNETT
Executive VP and Chief
Executive VP and Chief
Investor Relations Officer
Investor Relations Officer
Exhibit 99.1 |
 2
Phone:
504.568.1010
Fax:
504.566.4580
Web:
www.tdw.com
Email:
connect@tdw.com
FORWARD-LOOKING STATEMENTS
FORWARD-LOOKING STATEMENTS
FORWARD-LOOKING STATEMENTS
2
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, volatility 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, field 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; uncertainty of global financial market conditions
and difficulty in 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
where we operate; foreign currency fluctuations; labor influences proposed by
international conventions; increased regulatory burdens and oversight following
the Deepwater Horizon incident; and enforcement of laws related to the
environment, labor and foreign corrupt practices. Readers should consider all of
these risk factors as well as other information contained in this report.
|
 3
KEY TAKEAWAYS
KEY TAKEAWAYS
KEY TAKEAWAYS
•
Culture of safety & operating excellence
•
Macro picture improving with increased working rigs
•
History of earnings growth and solid returns
•
Unmatched scale and scope of operations
•
World’s largest and newest fleet provides basis for
continued earnings growth
•
Strong balance sheet allows us to act upon available
opportunities
3 |
 4
SAFETY RECORD RIVALS
LEADING COMPANIES
SAFETY RECORD RIVALS
SAFETY RECORD RIVALS
LEADING COMPANIES
LEADING COMPANIES
4
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
2002
2003
2004
2005
2006
2007
2008
2009
2010
CALENDAR YEARS
TOTAL RECORDABLE INCIDENT RATES
TIDEWATER
DOW CHEMICAL
CHEVRON
EXXON/MOBIL |
 5
Source: ODS-Petrodata and Tidewater
GOM
accounts
for
31
of
the
36
working
jackup
count
variance
from
June
2008
(Peak) to November 2011 (post-Horizon)
GOM Semi & Drillship count drops by 3 units (from 31 to 28) between April 2010
and
November
2011;
offset
by
an
increase
of
30
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
Nov. 2011
(post-Horizon)
343
169
54
566
WORKING RIG COUNTS
“Peak to Present”
WORKING RIG COUNTS
WORKING RIG COUNTS
“Peak to Present”
“Peak to Present”
5 |
 6
Source: ODS-Petrodata and Tidewater
As of early-November 2011, there are approximately 447 additional AHTS
and PSV’s (~17% of the global fleet) under construction.
6
0
50
100
150
200
250
300
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010
THE WORLDWIDE OSV FLEET –
THE WORLDWIDE OSV FLEET –
RETIREMENTS
RETIREMENTS
EXPECTED TO EXCEED NEW DELIVERIES
EXPECTED TO EXCEED NEW DELIVERIES
(Includes AHTS and PSV’s only) Estimated as of November 2011
Vessels > 25 years old today
Global
fleet
estimated
at
2,686
vessels,
including
345
vessels
that
are
30+
yrs
old
(13%),
and
another
402
vessels
that
are
25-29
yrs
old
(15%) |
 7
Adjusted Return
On Avg. Equity
4.3% 7.2%
12.4%
18.5% 18.3%
19.5%
11.4% 4.0%
Adjusted EPS**
Adjusted EPS**
HISTORY OF EARNINGS GROWTH
AND SOLID THROUGH-CYCLE RETURNS
HISTORY OF EARNINGS GROWTH
HISTORY OF EARNINGS GROWTH
AND SOLID THROUGH-CYCLE RETURNS
AND SOLID THROUGH-CYCLE RETURNS
$2.40
$5.20
$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
Fiscal
2011
7
**
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. |
 8
Americas
66
(25%)
SS Africa/Europe
125
(48%)
MENA
37
(14%)
Asia/Pac
32
(12%)
OUR GLOBAL FOOTPRINT
Vessel Distribution by Region
(excludes stacked vessels –
as of 9/30/11)
OUR GLOBAL FOOTPRINT
OUR GLOBAL FOOTPRINT
Vessel Distribution by Region
Vessel Distribution by Region
(excludes stacked vessels –
(excludes stacked vessels –
as of 9/30/11)
as of 9/30/11)
In
2Q
FY
2012,
<5%
of
vessels/revenue
was
generated
in
U.S.
GOM;
however,
39
total
U.S.-flagged vessels provide good optionality to a recovery in the U.S.
GOM. 8 |
 9
At 9/30/11, 201 new vessels were in our fleet with ~5.2 year average age
Vessel Commitments
Jan. ’00 –
September ‘11
(1)
$3,446m (87%) funded through 9/30/11
THE LARGEST MODERN OSV FLEET
IN THE INDUSTRY….
THE LARGEST MODERN OSV FLEET
THE LARGEST MODERN OSV FLEET
IN THE INDUSTRY….
IN THE INDUSTRY….
9
Vessel Count
Estimated Cost
AHTS
103
$1,805m
PSV’s
88
$1,842m
Crewboats & Tugs
71
$301m
TOTALS:
262
$3,948m
(1) |
 10
Count
AHTS
16
PSV
19
Crew and Tug
5
Total
40
Vessels Under Construction*
As of September 30, 2011
* Includes 12 new vessel purchase commitments at 9/30/11
CAPX of $306m in remainder of FY ‘12, $164m in FY ‘13 and $32m in FY
’14. …. AND MORE TO COME
…. AND MORE TO COME
…. AND MORE TO COME
10
Estimated delivery schedule – 20 in FY ‘12, 13 in FY ‘13 and 7 thereafter. |
 11
RECENT VESSEL COMMITMENTS
RECENT VESSEL COMMITMENTS
RECENT VESSEL COMMITMENTS
Amounts
depict
vessel
count
and
total
cost
in
quarter
commitment
was
made
to
acquire
(not
when
delivery
or
payments
were
made)
$96M
$55M
$72M
$179M
1 MPSV
1 PSV
4 AHTS
6 AHTS
6 AHTS
3 PSV’s
53 vessels over last 2+ years with
a total capital cost of $982 million
$177M
4 PSV’s
4 AHTS
1 PSV
9 AHTS
$139M
$101M
2 PSV’s
4 PSV
3 AHTS
$139M
$24M
1 AHTS
4 CREW
11
0
2
4
6
8
10
12
9/30/09
Qtr
12/31/09 3/31/10
Qtr
Qtr
6/30/10
Qtr
9/30/10 12/31/10
Qtr
Qtr
3/31/11
Qtr
6/30/11
Qtr
9/30/11
Qtr |
 12
Over
a
12-year
period,
Tidewater
has
invested
$3.8
billion
in
CapEx
($3.3
billion
in
the
“new”
fleet),
and paid out $995 million through dividends and share repurchases. Over the
same period, CFFO and proceeds from dispositions were $3.4 billion and $690
million, respectively $0
$100
$200
$300
$400
$500
$600
$700
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
CAPX
Dividend
Share Repurchase
$ in millions
CFFO
Fiscal Year
FLEET RENEWAL & EXPANSION
FUNDED BY CFFO THROUGH FISCAL 2011
FLEET RENEWAL & EXPANSION
FLEET RENEWAL & EXPANSION
FUNDED BY CFFO THROUGH FISCAL 2011
FUNDED BY CFFO THROUGH FISCAL 2011
12 |
 13
Senior Unsecured Notes
$590 million
~ 8.5 years
Weighted Average Coupon
4.30%
Term Loan
$125 million
Revolving Line of Credit
$450 million
Remaining Term
~ 4½
years
Interest Rate
LIBOR plus 1.5% to
2.25%, based on leverage
Private Placement Financings:
Private Placement Financings:
New Credit Facilities:
New Credit Facilities:
~ $40 million in senior notes maturities in Fiscal 2012 (July)
RECENT FINANCINGS WILL FUND GROWTH
AT AN ATTRACTIVE RELATIVE COST
RECENT FINANCINGS WILL FUND GROWTH
RECENT FINANCINGS WILL FUND GROWTH
AT AN ATTRACTIVE RELATIVE COST
AT AN ATTRACTIVE RELATIVE COST
13
(as of 9/30/11)
Average Life to Maturity |
 14
As of September 30, 2011
Cash & Cash Equivalents
$302 million
Total Debt
$825 million
Shareholders Equity
$2,513 million
Net Debt / Net Capitalization
17%
Total Debt / Capitalization
25%
~$900
million
of
liquidity
as
of
9/30/11,
including
$575
million
available
under
bank
credit facilities.
STRONG FINANCIAL POSITION
PROVIDES STRATEGIC OPTIONALITY
STRONG FINANCIAL POSITION
STRONG FINANCIAL POSITION
PROVIDES STRATEGIC OPTIONALITY
PROVIDES STRATEGIC OPTIONALITY
14 |
 15
WHERE COULD FISCAL 2014 FIND US?
Potential for Earnings Acceleration
WHERE COULD FISCAL 2014 FIND US?
WHERE COULD FISCAL 2014 FIND US?
Potential for Earnings Acceleration
Potential for Earnings Acceleration
Avg. Dayrates
$14,190*
$15,609
(+ 10%)
$17,170
(+ 10%)
82.4%*
85.0%
90.0%
271 vessel assumption (201 current new vessels + 40 under construction + ~ 20
additional new vessels per year for two years).
* 9/30/11 YTD 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
~$375M+
EBITDA
~$500M
EBITDA
~$700M
EBITDA
15
~$3.00
EPS
~$5.15
EPS
~$8.70
EPS |
 16
16
FINANCIAL STRATEGY FOCUSED
ON CREATING LONG-TERM
SHAREHOLDER VALUE
FINANCIAL STRATEGY FOCUSED
FINANCIAL STRATEGY FOCUSED
ON CREATING LONG-TERM
ON CREATING LONG-TERM
SHAREHOLDER VALUE
SHAREHOLDER VALUE
Maintain
Maintain
Financial Strength
Financial Strength
EVA-Based Investments
EVA-Based Investments
On Through-cycle Basis
On Through-cycle Basis
Deliver Results
Deliver Results |
 PRITCHARD
PRITCHARD CAPITAL
PARTNERS
PARTNERS
9
9
TH
TH
ANNUAL ENERGIZE CONFERENCE
ANNUAL ENERGIZE CONFERENCE
Jan. 4, 2012
Jan. 4, 2012
JOSEPH M. BENNETT
JOSEPH M. BENNETT
Executive VP and Chief
Executive VP and Chief
Investor Relations Officer
Investor Relations Officer |
 18
APPENDIX
APPENDIX
APPENDIX
18 |
 19
Unique global footprint
50+ years of Int’l experience
International (non U.S.) markets generally
characterized by:
•
More growth
•
Longer contracts
•
Better utilization
•
Higher dayrates
Solid customer base of NOC’s and IOC’s
INTERNATIONAL STRENGTH
INTERNATIONAL STRENGTH
INTERNATIONAL STRENGTH
19 |
 20
Source: ODS-Petrodata and Tidewater
Tidewater
Competitor #2
Competitor #3
Competitor #4
Competitor # 5
Competitor #1
Avg.
All Others (1,966 total
vessels for
350+ owners)
Tidewater
AHTS
and
PSV
fleet
includes
147
vessel
additions
since
2000
20
258
146
109
76
67
64
5
0
100
200
300
400
VESSEL POPULATION BY OWNER
(AHTS and PSV’s only) –
Estimated as of November 2011
VESSEL POPULATION BY OWNER
VESSEL POPULATION BY OWNER
(AHTS and PSV’s only) –
Estimated as of November 2011 |
 21
FLEET CASH OPERATING MARGINS
FLEET CASH OPERATING MARGINS
FLEET CASH OPERATING MARGINS
$0
$100
$200
$300
$400
$500
$600
$700
$800
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Traditional Vessels
New Vessels
Note: Cash
operating
margins
are
defined
as
vessel
revenue
less
vessel
operating
expenses
Fiscal Years
21
Cash Oper Margin
38.6%
37.6%
46.5%
41.9%
36.9%
38.7%
49.1%
54.6%
51.9%
51.3%
46.8%
39.3% |
 22
Fiscal Year
Actual vessel deliveries through 9/30/11; estimated vessel deliveries based on
commitments to build or acquire as of 9/30/11
Through 9/30/11, vessel
commitments include 262 vessels
with a capital cost of $3.948
billion
THROUGH-CYCLE, EVA-BASED INVESTMENT;
BALANCE BETWEEN “BUY”
and “BUILD”
THROUGH-CYCLE, EVA-BASED INVESTMENT;
THROUGH-CYCLE, EVA-BASED INVESTMENT;
BALANCE BETWEEN “BUY”
BALANCE BETWEEN “BUY”
and “BUILD”
and “BUILD”
22
0
5
10
15
20
25
30
35
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Built
Acquired |
 23
Six Months Ended
9/30/11
9/30/10
Revenues
$506
$530
Net Earnings*
$42
$59
EPS*
$0.81
$1.15
Net Cash from Operations
$87
$153
Capital Expenditures
$155
$391
* Excludes $22.1 million, or $0.43 per share, goodwill impairment charge in
September 2011 $ in Millions, Except Per Share Data
RECENT FINANCIAL RESULTS
REFLECT CYCLICAL DOWNTURN
RECENT FINANCIAL RESULTS
RECENT FINANCIAL RESULTS
REFLECT CYCLICAL DOWNTURN
REFLECT CYCLICAL DOWNTURN
23 |
 24
Other Operators
Top 10 Customers
Tidewater’s top 10 customers contract ~24% of the working worldwide
jackup fleet and ~50% of the working worldwide floater fleet
Jackups
(343 Working Rigs)
Floater Rigs
(223 Working Rigs)
81
262
110
Source: ODS-Petrodata and Tidewater
Other Operators
Top 10 customers
113
RIGS CONTRACTED BY OUR
TOP 10 CUSTOMERS
(Estimated as of November 2011)
RIGS CONTRACTED BY OUR
RIGS CONTRACTED BY OUR
TOP 10 CUSTOMERS
TOP 10 CUSTOMERS
(Estimated as of November 2011)
(Estimated as of November 2011)
24 |
 25
CURRENT REVENUE MIX
Quality of Customer Base
CURRENT REVENUE MIX
CURRENT REVENUE MIX
Quality of Customer Base
Quality of Customer Base
Our top 10 customers in Fiscal 2011 (5 Super Majors,
3 NOC’s and 2 large independents) accounted for 63% of our revenue
25
Super Majors
36%
NOC's
28%
Others
36% |
 26
SIGNIFICANT AVERAGE
AGE IMPROVEMENT
SIGNIFICANT AVERAGE
SIGNIFICANT AVERAGE
AGE IMPROVEMENT
AGE IMPROVEMENT
Assumptions:
1) Average 45 vessel disposals per year in future (versus an average of 52 vessel
dispositions per year over last 3 years). 2) Includes 40 vessels under
construction, including 12 vessel purchase commitments (based on current estimated delivery
schedule), plus additional newbuilds/acquisitions of ~20 vessels per year
(approximately $500 million in new capital commitments per year). Tidewater
is not committed to spending $500 million annually, but we use this assumption in
estimating average fleet age in the future.
26
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
12/31/14
20
16
6 |
 27
VESSEL DAYRATES BY SEGMENT
VESSEL DAYRATES BY SEGMENT
VESSEL DAYRATES BY SEGMENT
27
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
6/09
9/09
12/09
3/10
6/10
9/10
12/10
3/11
6/11
9/11
Americas
Asia/Pac
MENA
Sub Sah Africa |
 28
VESSEL UTILIZATION BY SEGMENT
VESSEL UTILIZATION BY SEGMENT
VESSEL UTILIZATION BY SEGMENT
28
30%
40%
50%
60%
70%
80%
90%
6/09
9/09
12/09
3/10
6/10
9/10
12/10
3/11
6/11
9/11
Americas
Asia/Pac
MENA
Sub Sah Africa |
 29
OSX 42%
S&P 500 14%
DJIA 27%
TDW 18%
RETURNS vs the MARKET
FIVE YEAR STOCKHOLDER RETURN
RETURNS vs the MARKET
RETURNS vs the MARKET
FIVE YEAR STOCKHOLDER RETURN
FIVE YEAR STOCKHOLDER RETURN
29
-60.0%
-40.0%
-20.0%
0.0%
20.0%
40.0%
60.0%
80.0%
TDW
DJIA
S&P 500
OSX |