Attached files
| file | filename |
|---|---|
| 8-K - 8-K - TIDEWATER INC | d698331d8k.htm |
 Pareto
Securities’ Offshore Vessel Forum
March 19, 2014
Jeffrey M. Platt
President & CEO
Joseph M. Bennett
EVP & Chief IRO
Exhibit 99.1 |
 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.
Phone:
504.568.1010
|
Fax:
504.566.4580
Web
site
address:
www.tdw.com
Email:
connect@tdw.com
Pareto Securities' Offshore Vessel Forum
2
TIDEWATER
601
Poydras
Street,
Suite
1500,
New
Orleans,
LA
70130 |
 •
Consistent goal of “Best in Class”
safety and compliance culture
•
History of earnings growth and solid returns
•
Largest “NEW”
OSV fleet in the industry, operating in over
50 countries with ~8,000 employees worldwide
•
Solid balance sheet and ready liquidity allows us to
continue to act upon available opportunities, such as
recent Troms acquisition and new Subsea business
•
Challenged, yet still constructive fundamental backdrop for
OSV industry
3
Key Tidewater Takeaways
Pareto Securities' Offshore Vessel Forum |
 4
Safety Record Rivals Leading Companies
Pareto Securities' Offshore Vessel Forum
•
Safe Operations is Priority #1
•
Stop Work Obligation
•
Safety performance is 25% of mgt. incentive comp |
 Source:
ODS-Petrodata Note:
44
“Other”
rigs,
along
with
the
Jackups
and
Floaters,
provide
a
total
working
rig
count
of
712
in
March
2014.
5
Working Offshore Rig Trends
Pareto Securities' Offshore Vessel Forum |
 Source:
ODS-Petrodata and Tidewater July 2008
(Peak)
Jan. 2011
(Trough)
March
2014
Working Rigs
603
538
712
Rigs Under
Construction
186
118
236
OSV Global
Population
2,033
2,599
3,088
OSV’s Under
Construction
736
367
463
OSV/Rig Ratio
3.37
4.83
4.34
6
Drivers of our Business “Peak to Present”
Pareto Securities' Offshore Vessel Forum |
 Source:
ODS-Petrodata
and
Tidewater
As
of
March
2014,
there
are
approximately
463
additional
AHTS
and
PSV’s
(~15%
of
the
global
fleet)
under
construction.
Global
fleet
is
estimated
at
3,088
vessels,
including
~700
vessels
that
are
25+
yrs
old
(25%).
7
The Worldwide OSV Fleet
(Includes
AHTs
and
PSVs
only)
Estimated
as
of
March
2014
Pareto Securities' Offshore Vessel Forum |
 8
Tidewater’s Active Fleet
As of December 31, 2013
Pareto Securities' Offshore Vessel Forum |
 Source:
ODS-Petrodata and Tidewater 9
Vessel Population by Owner
(AHTS
and
PSVs
only)
Estimated
as
of
March
2014
Pareto Securities' Offshore Vessel Forum |
 In
3Q
FY
2014,
~10%
of
vessel
revenue
was
generated
in
the
U.S.
by
~
17
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.
10
Our Global Footprint –
Vessel Count by Region
(Excludes stacked vessels –
as of 12/31/13)
Pareto Securities' Offshore Vessel Forum |
 11
Our Global Footprint –
Vessel Class by Region
(Excludes stacked vessels –
as of 12/31/13)
Pareto Securities' Offshore Vessel Forum
Vessel count info is as of 12/31/13, and includes leased vessels. Avg NBV excludes the impact of leased
vessels which have no NBV. Average NBV of the total 25 Traditional vessels is $0.95M at
12/31/13. |
 12
A Broad Portfolio of New High Spec OSVs |
 Vessel Count (2) Total Cost (2)
Average Cost
per Vessel
Deepwater PSVs
97
$2,725m
$28.1m
Deepwater AHTSs
12
$387m
$32.3m
Towing Supply/Supply
109
$1,617m
$14.8m
Other
55
$277m
$5.0m
TOTALS:
273
$5,006m
(1)
$18.3m
.
At 12/31/13, 244 new vessels were in our fleet with ~6.0 year average age
Vessel Commitments
Jan. ’00 –
December ‘13
(1)
~$4.4b (88%) funded through 12/31/13
(2)
Vessel count and total cost is net of 26 vessel dispositions ($243M of original cost)
(2)
Vessel count and total cost is net of 25 vessel dispositions ($227m of original cost)
13
The Largest Modern OSV Fleet in the Industry
Pareto Securities' Offshore Vessel Forum |
 As of December
31, 2013 Cash & Cash Equivalents
$114 million
Total Debt
$1,464 million
Shareholders Equity
$2,640 million
Net Debt / Net Capitalization
34%
Total Debt / Capitalization
36%
~$715 million of available liquidity as of 12/31/13, including $600 million
of unused capacity under the company’s revolving credit facility.
14
Strong Financial Position Provides
Strategic Optionality
Pareto Securities' Offshore Vessel Forum |
 15
Debt Maturities
Limited for Several Years
Pareto Securities' Offshore Vessel Forum |
 **
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%
16
History of Earnings Growth & Solid
Through-Cycle Return
Pareto Securities' Offshore Vessel Forum |
 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. 17
Active Vessel Dayrates & Utilization by Segment
Pareto Securities' Offshore Vessel Forum |
 $165 million, or 46%, of Vessel Revenue in Q3 Fiscal 2014
18
New Vessel Trends by Vessel Type
Deepwater PSVs
Pareto Securities' Offshore Vessel Forum |
 $124 million, or 35%, of Vessel Revenue in Q3 Fiscal 2014
19
New Vessel Trends by Vessel Type
Towing Supply/Supply Vessels
Pareto Securities' Offshore Vessel Forum |
 Recent delivery
of six work-class remotely operated vehicles (ROV)
20
Tidewater’s New Subsea Business
Pareto Securities' Offshore Vessel Forum |
 •
Continue to improve upon stellar safety and compliance programs
•
Maintain solid balance sheet and financial flexibility to deal with
industry uncertainties and seize opportunities when presented
•
Disciplined deployment of cash to expand vessel and ROV
fleet capabilities
•
Return capital to shareholders through dividends and
opportunistic share repurchases
21
Tidewater’s Future
Pareto Securities' Offshore Vessel Forum |
 Pareto
Securities’ Offshore Vessel Forum
March 19, 2014
Jeffrey M. Platt
President & CEO
Joseph M. Bennett
EVP & Chief IRO |
 23
Appendix
Pareto Securities' Offshore Vessel Forum |
 Maintain
Maintain
Financial Strength
Financial Strength
EVA-Based Investments
EVA-Based Investments
On Through-cycle Basis
On Through-cycle Basis
Deliver Results
Deliver Results
24
Financial Strategy Focused on Creating
Long-Term Shareholder Value
Pareto Securities' Offshore Vessel Forum |
 Count
Deepwater PSVs
22
Deepwater AHTSs
-
Towing Supply/Supply
6
Other
1
Total
29
Vessels Under Construction*
As of December 31, 2013
Estimated delivery schedule –
1 for the remainder of FY ’14, 16 in FY ’15 and 12 thereafter.
CAPX of $93m for the remainder of FY ’14, $366m in FY ‘15 and $150m in FY
’16. 25
…and More to Come
Pareto Securities' Offshore Vessel Forum |
 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.
26
Fleet Renewal & Expansion Largely
Funded by CFFO
Pareto Securities' Offshore Vessel Forum |
 Note: Vessel
operating margin is defined as vessel revenue less vessel operating expenses
Prior peak period (FY2009)
averaged quarterly revenue of
$339M, quarter operating
margin of $175.6M at 51.8%
27
Total Revenue and Margin
Fiscal 2008-2014
Pareto Securities' Offshore Vessel Forum |
 Vessel Cash Operating
Margin ($) Vessel Cash Operating Margin (%)
$163 million Vessel Margin in Q3
FY2014 (98% from New Vessels)
Q3 FY2014 Vessel Margin: 45%
28
Cyclical Upturn should Drive Margin Expansion
Pareto Securities' Offshore Vessel Forum |
 $30
million, or 8%, of Vessel Revenue in Q3 Fiscal 2014 29
New Vessel Trends by Vessel Type
Deepwater AHTS
Pareto Securities' Offshore Vessel Forum |
 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
30
Current Revenue Mix
Quality of Customer Base
Pareto Securities' Offshore Vessel Forum |