Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - TIDEWATER INC | d355053d8k.htm |
| EX-99.2 - TRANSCRIPT OF THE PRESENTATION - TIDEWATER INC | d355053dex992.htm |
 2012
UBS GLOBAL OIL & GAS CONFERENCE 2012 UBS GLOBAL OIL & GAS
CONFERENCE 2012 UBS GLOBAL OIL & GAS CONFERENCE
May 22, 2012
May 22, 2012
JOSEPH M. BENNETT
JOSEPH M. BENNETT
Executive VP & Chief Investor
Executive VP & Chief Investor
Relations Officer
Relations Officer
JEFFREY M. PLATT
JEFFREY M. PLATT
Executive VP &
Executive VP &
Chief Operating Officer
Chief Operating Officer |
 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 –
stable oil prices, increased
E&P spending, improving rig count
•
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 |
 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
June 2008
(Peak)
Working Rigs
603
Rigs Under
Construction
186
OSV Global
Population
2,033
OSV’s Under
Construction
736
OSV/Rig Ratio
3.37
DRIVERS OF OUR BUSINESS
“Peak to Present”
DRIVERS OF OUR BUSINESS
DRIVERS OF OUR BUSINESS
“Peak to Present”
“Peak to Present” |
 6
Source: ODS-Petrodata and Tidewater
June 2008
(Peak)
Jan. 2011
Working Rigs
603
538
Rigs Under
Construction
186
118
OSV Global
Population
2,033
2,599
OSV’s Under
Construction
736
367
OSV/Rig Ratio
3.37
4.83
DRIVERS OF OUR BUSINESS
“Peak to Present”
DRIVERS OF OUR BUSINESS
DRIVERS OF OUR BUSINESS
“Peak to Present”
“Peak to Present” |
 7
Source: ODS-Petrodata and Tidewater
June 2008
(Peak)
Jan. 2011
May 2012
Working Rigs
603
538
611
Rigs Under
Construction
186
118
188
OSV Global
Population
2,033
2,599
2,756
OSV’s Under
Construction
736
367
404
OSV/Rig Ratio
3.37
4.83
4.51
DRIVERS OF OUR BUSINESS
“Peak to Present”
DRIVERS OF OUR BUSINESS
DRIVERS OF OUR BUSINESS
“Peak to Present”
“Peak to Present” |
 8
Source: ODS-Petrodata and Tidewater
June 2008
(Peak)
Jan. 2011
May 2012
Working Rigs
603
538
611
Rigs Under
Construction
186
118
188
OSV Global
Population
2,033
2,599
2,756
OSV’s Under
Construction
736
367
404
OSV/Rig Ratio
3.37
4.83
4.51
DRIVERS OF OUR BUSINESS
“Peak to Present”
DRIVERS OF OUR BUSINESS
DRIVERS OF OUR BUSINESS
“Peak to Present”
“Peak to Present” |
 9
Source: ODS-Petrodata and Tidewater
As of May 2012, there are approximately 404 additional AHTS and PSV’s
(~15% of the global fleet) under construction.
Vessels > 5 years old today
0
50
100
150
200
250
300
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010
THE WORLDWIDE OSV FLEET –
RETIREMENTS
EXPECTED TO EXCEED NEW DELIVERIES
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
May
2012
Global fleet estimated at 2,756 vessels, including
466 vessels that are
30+ yrs old (17%), and another 278 vessels that are 25-29 yrs old (10%) |
 10
VESSEL POPULATION BY OWNER
VESSEL POPULATION BY OWNER
VESSEL POPULATION BY OWNER
Source: ODS-Petrodata and Tidewater
Tidewater
Competitor #2
Competitor #3
Competitor #4
Competitor # 5
Competitor #1
Avg.
All Others (1,993 total
vessels for
350+ owners)
Tidewater
AHTS
and
PSV
fleet
includes
165
vessel
additions
since
2000
254
151
108
77
66
65
5
0
100
200
300
400
(AHTS and PSV’s only) –
Estimated as of May 2012 |
 11
**
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. EPS in Fiscal 2012 is
exclusive of $0.43 per share goodwill impairment charge. Adjusted Return
On Avg. Equity
4.3% 7.2% 12.4%
18.9% 18.3%
19.5%
11.4% 5.0% 4.3%
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
$1.03
$1.78
$3.33
$5.94
$6.39
$7.89
$5.20
$2.40
$2.13
$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
Fiscal
2012 |
 OUR
GLOBAL FOOTPRINT Vessel Distribution by Region
(excludes stacked vessels –
as of 3/31/12)
OUR GLOBAL FOOTPRINT
OUR GLOBAL FOOTPRINT
Vessel Distribution by Region
Vessel Distribution by Region
(excludes stacked vessels –
(excludes stacked vessels –
as of 3/31/12)
as of 3/31/12)
In
4Q
FY
2012,
~6%
of
vessels/revenue
was
generated
in
U.S.
GOM;
however,
38
total
active U.S.-flagged vessels provide good optionality to a recovery in the U.S.
GOM. 12
Americas
63
(24%)
SS Africa/Europe
132
(50%)
MENA
35
(13%)
Asia/Pac
33
(13%) |
 13
Vessel Count
Estimated Cost
AHTS
101
$1,765m
PSV’s
91
$1,934m
Crewboats & Tugs
71
$301m
TOTALS:
263
$4,000m
(1)
.
At 3/31/12, 215 new vessels were in our fleet with ~5.7 year average age
Vessel Commitments
Jan. ’00 –
March ‘12
(1)
$3,640m (91%) funded through 3/31/12
THE LARGEST MODERN OSV FLEET
IN THE INDUSTRY….
THE LARGEST MODERN OSV FLEET
THE LARGEST MODERN OSV FLEET
IN THE INDUSTRY….
IN THE INDUSTRY…. |
 14
Count
AHTS
2
PSV
18
Crew and Tug
5
Total
25
Vessels Under Construction*
As of March 31, 2012
* Includes 3 new vessel purchase commitments at 3/31/12
Estimated
delivery
schedule
–
13
in
FY
‘13,
10
in
FY
‘14
and
2
thereafter.
CAPX of $220m in FY ‘13, $95m in FY ‘14 and $44m in FY ’15.
…. AND MORE TO COME
…. AND MORE TO COME
…. AND MORE TO COME |
 15
Fiscal Year
Actual vessel deliveries through 3/31/12; estimated vessel deliveries based on
commitments to build or acquire as of 3/31/12
Through 3/31/12, vessel
commitments include 263 vessels
with a capital cost of $4.0 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”
0
5
10
15
20
25
30
35
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Built
Acquired |
 16
RECENT VESSEL COMMITMENTS
RECENT VESSEL COMMITMENTS
RECENT VESSEL COMMITMENTS
0
2
4
6
8
10
12
9/30/09
Qtr
12/31/09
Qtr
3/31/10
Qtr
6/30/10
Qtr
9/30/10
Qtr
12/31/10
Qtr
3/31/11
Qtr
6/30/11
Qtr
9/30/11
Qtr
12/31/11
Qtr
3/31/12
Qtr
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
54 vessels over last 2+ years with
a total capital cost of ~$1 billion
$66M
4 AHTS
1 PSV
9 AHTS
$139M
$101M
2 PSV’s
4 PSV
1 AHTS
$100M
$24M
1 AHTS
4 CREW
$83M
3 PSV
$116M
4 PSV |
 17
Over
a
13-year
period,
Tidewater
has
invested
$4.1
billion
in
CapEx
($3.6
billion
in
the
“new”
fleet),
and paid out ~$1 billion through dividends and share repurchases. Over the
same period, CFFO and proceeds from dispositions were $3.6 billion and $732
million, respectively $ in millions
CFFO
Fiscal Year
FLEET RENEWAL & EXPANSION
FUNDED BY CFFO THROUGH FISCAL 2012
FLEET RENEWAL & EXPANSION
FLEET RENEWAL & EXPANSION
FUNDED BY CFFO THROUGH FISCAL 2012
FUNDED BY CFFO THROUGH FISCAL 2012
$0
$100
$200
$300
$400
$500
$600
$700
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
CAPX
Dividend
Share Repurchase |
 18
Senior Unsecured Notes
$590 million
Average Life to Maturity (as of 3/31/12)
~ 7.9 years
Weighted Average Coupon
4.30%
Term Loan
$125 million*
Revolving Line of Credit
$450 million
Remaining Term
~ 3.8 years
Interest Rate
LIBOR plus 1.5% to
2.25%, based on leverage
Private Placement Financings:
Private Placement Financings:
Credit Facilities:
Credit Facilities:
*Term Loan drawn in January 2012
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 |
 19
As of March 31, 2012
Cash & Cash Equivalents
$321 million
Total Debt
$950 million
Shareholders Equity
$2,526 million
Net Debt / Net Capitalization
20%
Total Debt / Capitalization
27%
~$770 million of pro forma liquidity as of 3/31/12, including $450 million of
availability under bank credit facilities.
STRONG FINANCIAL POSITION PROVIDES
ADDITIONAL STRATEGIC OPTIONALITY
STRONG FINANCIAL POSITION PROVIDES
STRONG FINANCIAL POSITION PROVIDES
ADDITIONAL STRATEGIC OPTIONALITY
ADDITIONAL STRATEGIC OPTIONALITY |
 20
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
260 vessel assumption (215 current new vessels + 25 under construction + 20
additional new vessels next year).
* 3/31/12 quarterly 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
Actual Qtrly Dayrates
6/30/11 $14,091
9/30/11 $14,291
12/31/11 $14,835
3/31/12 $15,658
$15,658*
$17,224
(+ 10%)
$18,946
(+ 10%)
83.2%*
85.0%
90.0%
~$3.40
EPS
~$5.50
EPS
~$400M+
EBITDA
~$535M
EBITDA
~$760M
EBITDA
~$9.50
EPS |
 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
21 |
 2012
UBS GLOBAL OIL & GAS CONFERENCE 2012 UBS GLOBAL OIL & GAS
CONFERENCE 2012 UBS GLOBAL OIL & GAS CONFERENCE
May 22, 2012
May 22, 2012
JOSEPH M. BENNETT
JOSEPH M. BENNETT
Executive VP & Chief Investor
Executive VP & Chief Investor
Relations Officer
Relations Officer
JEFFREY M. PLATT
JEFFREY M. PLATT
Executive VP &
Executive VP &
Chief Operating Officer
Chief Operating Officer |
 APPENDIX
APPENDIX
APPENDIX
23 |
 CURRENT REVENUE MIX
Quality of Customer Base
CURRENT REVENUE MIX
CURRENT REVENUE MIX
Quality of Customer Base
Quality of Customer Base
Super Majors
35%
NOC's
23%
Others
42%
Our top 10 customers in Fiscal 2012 (4 Super Majors,
3 NOC’s and 3 IOC’s) accounted for 59% of our revenue
24 |
 Other Operators
Top 10 Customers
Tidewater’s top 10 customers contract ~19% of the working worldwide
jackup fleet and ~50% of the working worldwide floater fleet
Jackups
(334 Working Rigs)
Floater Rigs
(232 Working Rigs)
62
272
116
Source: ODS-Petrodata and Tidewater
Other Operators
Top 10 customers
116
RIGS CONTRACTED BY OUR
TOP 10 CUSTOMERS
(Estimated as of May 2012)
RIGS CONTRACTED BY OUR
RIGS CONTRACTED BY OUR
TOP 10 CUSTOMERS
TOP 10 CUSTOMERS
(Estimated as of May 2012)
(Estimated as of May 2012)
25 |
 FLEET CASH OPERATING MARGINS
FLEET CASH OPERATING MARGINS
FLEET CASH OPERATING MARGINS
Traditional Vessels
New Vessels
Note: Cash operating margins are defined as vessel revenue less
vessel operating expenses
Fiscal Years
26
$0
$100
$200
$300
$400
$500
$600
$700
$800
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
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%
39.8% |
 Twelve Months
Ended 3/31/12
3/31/11
Revenues
$1,067
$1,055
Net Earnings*
$110
$123
EPS*
$2.13
$2.40
Net Cash from Operations
$222
$264
Capital Expenditures
$357
$615
*Fiscal 2012 excludes $22.1 million, or $0.43 per share, goodwill impairment charge
in September 2011 Fiscal 2011 excludes an after-tax $4.35 million, or
$0.09 per share, charge related to settlement with DOJ and an after-tax $6.3 million, or $0.12 per share, charge
related to settlement with the Government of Nigeria for FCPA matters, an
after-tax $3.9 million, or $0.08 per share, charge related to participation in a multi-company
U.K.-based pension plan, and an after-tax $3.0 million, or $0.06 per
share, impairment charge related to certain vessels.
$ in Millions, Except Per Share Data
RECENT FINANCIAL RESULTS
REFLECT CYCLICAL DOWNTURN
RECENT FINANCIAL RESULTS
RECENT FINANCIAL RESULTS
REFLECT CYCLICAL DOWNTURN
REFLECT CYCLICAL DOWNTURN
27 |
 SIGNIFICANT AVERAGE
AGE IMPROVEMENT
SIGNIFICANT AVERAGE
SIGNIFICANT AVERAGE
AGE IMPROVEMENT
AGE IMPROVEMENT
2) Includes 25 vessels under construction, including 3 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. 20
14
6
28
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
Assumptions:
1)
Average
45
vessel
disposals
per
year
in
future
(versus
an
average
of
50+
vessel
dispositions
per
year
over
last
3
years). |
 VESSEL UTILIZATION BY SEGMENT
VESSEL UTILIZATION BY SEGMENT
VESSEL UTILIZATION BY SEGMENT
29
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
12/11
3/12
Americas
Asia/Pac
MENA
Sub Sah Africa |
 VESSEL DAYRATES BY SEGMENT
VESSEL DAYRATES BY SEGMENT
VESSEL DAYRATES BY SEGMENT
30
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
$20,000
6/09
9/09
12/09
3/10
6/10
9/10
12/10
3/11
6/11
9/11
12/11
3/12
Americas
Asia/Pac
MENA
Sub Sah Africa |
 Vessel Revenue ($)
Average Fleet Count
213
Average
New
Vessels
in
Q4
2012
$288
million
Vessel
Revenue
in
Q4
2012
(88%
from
New
Vessels)
NEW FLEET DRIVING RESULTS
NEW FLEET DRIVING RESULTS
NEW FLEET DRIVING RESULTS
31
0
50
100
150
200
250
300
350
400
450
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
FY 2009
FY 2010
FY 2011
FY 2012
New
Traditional
Stacked
0
50
100
150
200
250
300
350
400
450
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
FY 2009
FY 2010
FY 2011
FY 2012
New
Traditional |
 Vessel Cash Operating Margin ($)
Vessel Cash Operating Margin (%)
$120
million
Vessel
Margin
in
Q4
2012
(91%
from
New
Vessels)
Q4 2012 Vessel Margin: 41%
CYCLICAL UPTURN
SHOULD DRIVE MARGIN EXPANSION
CYCLICAL UPTURN
CYCLICAL UPTURN
SHOULD DRIVE MARGIN EXPANSION
SHOULD DRIVE MARGIN EXPANSION
32
0
25
50
75
100
125
150
175
200
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
FY 2009
FY 2010
FY 2011
FY 2012
New
Traditional
0%
10%
20%
30%
40%
50%
60%
70%
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
FY 2009
FY 2010
FY 2011
FY 2012
Total
New
Traditional |