Attached files
| file | filename |
|---|---|
| 8-K - 8-K - TIDEWATER INC | d645324d8k.htm |
| EX-99.2 - EX-99.2 - TIDEWATER INC | d645324dex992.htm |
 December 12, 2013
Capital One Securities, Inc.
8 Annual Energy Conference
Joseph M. Bennett
EVP & Chief IRO
Jeffrey M. Platt
President and CEO
Exhibit 99.1
th |
 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 different 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 accessing credit
or capital; acts of terrorism and piracy; significant weather conditions; unsettled
political conditions, war, civil unrest and governmental actions, such as expropriation
or enforcement of customs or other laws that are not well-developed or consistently
enforced,
especially
in
higher
political
risk
countries
where
we
operate;
foreign
currency
fluctuations; labor changes proposed by international conventions; increased regulatory
burdens and oversight; and enforcement of laws related to the environment, labor and
foreign corrupt practices. Readers should consider all of these risks factors, as well as
other information contained in the Company’s form 10-K’s and
10-Q’s. TIDEWATER
601 Poydras Street, Suite 1500
New Orleans, LA 70130
Phone:
504.568.1010 |
Fax: 504.566.4580
Web site address:
www.tdw.com
Email:
connect@tdw.com
2 |
 Key
Tidewater Facts •
“Best in Class”
safety and compliance culture
•
First to expand extensively into int’l markets, evolving to our
current global exposure–
presence in over 50 countries
with ~8,000 employees worldwide
•
History of earnings growth and solid returns
•
Largest “NEW”
OSV fleet in the industry
•
Solid balance sheet allows us to continue to act upon available
opportunities, such as recent Troms acquisition and
new Subsea business
•
Pioneered the oil & gas service vessel industry 55+ years ago
•
Constructive fundamental backdrop for OSV industry
3 |
 Safety
Record Rivals Leading Companies
4 |
 Working
Offshore Rig Trends Source: ODS-Petrodata
Note: 45 “Other”
rigs, along with the Jackups and Floaters, provide a total working rig count of 713 in November
2013. 407
261
5
Prior peak (summer 2008)
Jackups
Floaters |
 Drivers of
our Business “Peak to Present”
Source: ODS-Petrodata and Tidewater
July 2008
(Peak)
Jan. 2011
(Trough)
November
2013
Working Rigs
603
538
713
Rigs Under
Construction
186
118
249
OSV Global
Population
2,033
2,599
3,039
OSV’s Under
Construction
736
367
452
OSV/Rig Ratio
3.37
4.83
4.26
6 |
 Tidewater’s Active Fleet
As of September 30, 2013
Year Built
Deepwater vessels
Towing Supply/Supply
Other vessels
240 “New”
vessels –
6.1 avg yrs
27 “Traditional”
vessels –
26.7 avg yrs
7 |
       Americas
63(24%)
SS Africa/Europe
136(51%)
MENA
44(16%)
Asia/Pac
24(9%)
Our Global Footprint
Vessel Distribution by Region
(excludes
stacked
vessels
-
as
of
9/30/13)
In 2Q FY 2014, ~9% of vessel revenue was generated in the U.S. by < 15 vessels; however, <15
other U.S.-flagged vessels are currently operating in International regions that could be
re-deployed to the U.S. GOM. In addition, Tidewater has currently under construction five
additional U.S.-flagged deepwater PSVs. 8 |
 Active
Vessel Dayrates & Utilization by Segment
Impact of $7.4 million of retroactive revenue recorded in September 2012 quarter is excluded
from 9/12 average dayrates and included in the respective March 2012 and June 2012
quarterly average dayrates. Utilization stats exclude stacked vessels. 9
|
 History
of Earnings Growth & Solid Through-Cycle Returns
**
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% 5.9%
Adjusted EPS**
Adjusted EPS**
10 |
 The
Largest Modern OSV Fleet in the Industry
Vessel Count (2)
Total Cost (2)
Average Cost
per Vessel
Deepwater PSVs
96
$2,630m
$27.4m
Deepwater AHTSs
11
$358m
$32.5m
Towing Supply/Supply
109
$1,615m
$14.8m
Other
55
$280m
$5.1m
TOTALS:
271
$4,883m
(1)
$18.0m
.
At 9/30/13, 240 new vessels were in our fleet with ~6.1 year average age
Vessel Commitments
Jan. ’00 –
September ‘13
(1)
~$4.27b (87%) funded through 9/30/13
(2)
Vessel count and total cost is net of 25 vessel dispositions ($227m of original cost)
11 |
 Strong
Financial Position Provides Strategic Optionality
As of September 30, 2013
Cash & Cash Equivalents
$46 million
Total Debt
$1,446 million
Shareholders Equity
$2,635 million
Net Debt / Net Capitalization
35%
Total Debt / Capitalization
35%
~$650 million of available liquidity as of 9/30/13, including $420 million of unused
capacity
under
committed
bank
credit
facilities
and
$200
million
of
delayed
funding
from recent senior unsecured note financing.
12 |
 New Vessel
Trends by Vessel Type Deepwater PSVs
13
Q2 Fiscal 2014
Avg Day Rate: $31,053
Utilization: 84.6%
$176 million, or 49%, of Vessel Revenue in Q2 Fiscal 2014 |
 New
Vessel Trends by Vessel Type Towing Supply/Supply Vessels
14
Q2 Fiscal 2014
Avg Day Rate: $14,484
Utilization: 85.7%
$118 million, or 33%, of Vessel Revenue in Q2 Fiscal 2014 |
 Tidewater’s New Subsea Business
15
Recent order of six
work-class remotely
operated vehicles (ROV) |
 Financial
Strategy Focused on Creating Long-Term Shareholder Value
Maintain
Financial Strength
EVA-Based Investments
On Through-cycle Basis
Deliver Results
16 |
 December 12, 2013
Capital One Securities, Inc.
8 Annual Energy Conference
Joseph M. Bennett
EVP & Chief IRO
Jeffrey M. Platt
President and CEO
th |
 Appendix
18 |
 The
Worldwide OSV Fleet (Includes AHTS and PSVs only)
Estimated as of November 2013
Source: ODS-Petrodata and Tidewater
As of November 2013, there are approximately 439 additional
AHTS and PSV’s (~14% of the global fleet) under construction.
Global fleet is estimated at 3,039 vessels, including ~720 vessels that are 25+
yrs old (25%). 19 |
 Vessel
Population by Owner (AHTS and PSVs only)
Estimated as of November 2013
Source: ODS-Petrodata and Tidewater
Tidewater
Competitor #2
Competitor #3
Competitor #4
Competitor # 5
Competitor #1
Avg.
All Others (2,306 total
vessels for
400+ owners)
20 |
 Fleet
Renewal & Expansion Funded by CFFO thru Fiscal 2013
Over a 14-year period, Tidewater has invested $4.6 billion in CapEx, and paid out ~$1.2 billion
through dividends and share repurchases. Over the same period, CFFO and
proceeds from dispositions were $3.8
billion and $749 million, respectively
Fiscal Year
21 |
 …..
and More to Come Count
Deepwater PSVs
23
Deepwater AHTSs
-
Towing Supply/Supply
6
Other
2
Total
31
Vessels Under Construction*
As of September 30, 2013
Estimated
delivery
schedule
–
6
for
the
remainder
of
FY
’14,
16
in
FY
’15
and
9
thereafter.
CAPX of $218m for the remainder of FY ’14, $303m in FY ‘15 and $105m in FY
’16. 22 |
 Cyclical
Upturn should Drive Margin Expansion
23
Vessel Cash Operating Margin ($)
Vessel Cash Operating Margin (%)
$168 million Vessel Margin in Q2
FY2014 (94% from New Vessels)
Q2 FY2014 Vessel Margin: 46% |
 Total
Revenue and Margin Fiscal 2008-2014
Note: Vessel operating margin is defined as vessel revenue less
vessel operating expenses
24
Prior peak period (FY2009)
averaged quarterly revenue of
$339M, quarter operating
margin of $175.6M at 51.8% |
 New
Vessel Trends by Vessel Type Deepwater AHTS
25
Q2 Fiscal 2014
Avg Day Rate: $28,885
Utilization: 87.9%
$26 million, or 7%, of Vessel Revenue in Q2 Fiscal 2014 |
 Current
Revenue Mix Quality of Customer Base
Super Majors
38%
NOC's
21%
Others
41%
Our top 10 customers in Fiscal 2013 (4 Super Majors, 2 NOC’s,
3 IOC’s and 1 independent) accounted for 58% of our revenue
26 |