Tidewater (TDW) 8-K Tidewater Reports Fourth Quarter Results and Year End Earnings For Fiscal 2005

Exhibit 99.1

Tidewater Reports Fourth Quarter Results and Year End Earnings For Fiscal 2005

NEW ORLEANS, April 27, 2005 — Tidewater Inc. (NYSE:TDW) announced today fourth quarter net earnings for the period ended March 31, 2005, of $52.4 million, or $.91 per share, on revenues of $179.6 million. For the same quarter last year, there was a net loss of $7.0 million, or $.12 per share, on revenues of $154.2 million. For fiscal year ended March 31, 2005, net earnings were $101.3 million, or $1.78 per share, on revenues of $692.2 million. For the fiscal year ended March 31, 2004, net earnings were $41.7 million, or $.73 per share, on revenues of $652.6 million.

Included in both the fourth quarter and year ended March 31, 2005 results is a non-cash tax benefit of $31.8 million ($.55 per share) resulting from the positive tax impact from the American Jobs Creation Act of 2004. Effective March 31, 2005, the Company has reversed all previously recorded deferred tax assets and liabilities related to timing differences, foreign tax credits or prior undistributed earnings of company entities whose future and prior earnings are now anticipated to be indefinitely reinvested abroad.

Included in both the fourth quarter and year ended March 31, 2004 results is a non-cash impairment charge of $26.5 million ($17.2 million after tax, or $.30 per share). The impairment charge results from the Company’s late March 2004 review of the Gulf of Mexico market for its vessels, and its conclusion that given the expectation at the time of continuing low levels of drilling and exploration activity in the Gulf of Mexico for the foreseeable future, it was unlikely that 83 of its older, lower horsepower, lower cargo capacity supply vessels that were currently cold-stacked at the time would return to active service.

The Company also announced that the Securities and Exchange Commission (SEC) has recently offered to engage in settlement discussions regarding the Company’s vessel impairment policies as they relate to its vessels that are “cold-stacked” for an extended period. This offer follows an informal inquiry by the SEC that was triggered by the $26.5 million impairment charge that the Company announced following the close of its fiscal year ended March 31, 2004. Although the SEC has not yet advised the Company of its view of acceptable settlement terms, based on the informal communications from the SEC staff, the Company believes that the SEC would require, as part of any settlement, that the Company implement prospectively certain processes to further assure that any vessels that have become market obsolete or are otherwise out of service for an extended period are tested for possible impairment on a timely basis. The Company does not concede that the procedures by which it has historically evaluated its fleet for impairment purposes have been inadequate, and it reserves any decision on whether to agree to the eventual settlement terms the SEC may require in order to terminate the inquiry at this stage. The

Company also notes that throughout fiscal year 2005, and in advance of the communication from the SEC related to the outcome of the informal inquiry, the Company continued to refine its vessel impairment policies taking into account evolving fleet and market conditions. At the end of fiscal 2005, an additional impairment charge of $1.7 million ($1.1 million after tax, or $.02 per share) was recorded by the Company after the fleet was reviewed under the refined policy. Since the vessels in question have been written down to estimated fair value as of March 31, 2005, Company management does not expect the results of the SEC informal inquiry to have a material effect on the Company’s results of operations or financial position as of and for the year ended March 31, 2005, although it has yet to see the proposed settlement terms. The Company expects to report further on the SEC matter when it receives more information. While the Company has historically filed its Form 10-K concurrent with its year end earnings release, it expects to file its 2005 Form 10-K (due June 14, 2005) pending receipt and review of further SEC information.

As previously announced, Tidewater will hold a conference call to discuss March quarterly and annual earnings on Wednesday, April 27, 2005 at 9:00 a.m. CDST promptly following the Company’s release of quarterly and annual earnings. Investors and interested parties may listen to the teleconference via telephone by calling 1-888-388-7493 if calling from the U.S. or Canada (1-706-679-8348 if calling from outside the U.S.) and ask for the “Tidewater Inc.” call just prior to the scheduled start. A replay of the conference call will be available beginning at 12:00 p.m. CDST on April 27, 2005, and will continue until 11:59 p.m. CDST on April 28, 2005. To hear the replay, call 1-800-642-1687 (1-706-645-9291 if calling from outside the U.S.). The conference call ID number is 5447796.

A simultaneous Webcast of the conference call will be accessible online at the Tidewater Inc. Website,www.tdw.com, and at the CCBN Website,www.streetevents.com. The online replay will be available until May 27, 2005.

Tidewater Inc. owns and operates over 560 vessels, the world’s largest fleet of vessels serving the global offshore energy industry.

Note: all per-share amounts are stated on a diluted basis.

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Contact: Joseph Bennett (504) 568-1010

TIDEWATER INC.

CONSOLIDATED STATEMENTS OF EARNINGS

(In thousands, except share and per share data)

	Quarter Ended March 31,					Year Ended March 31,
	2005			2004		2005		2004
Revenues:
Vessel revenues	$	174,450		144,463		655,526		625,948
Other marine revenues		5,163		9,731		36,624		26,682
		179,613		154,194		692,150		652,630
Costs and expenses:
Vessel operating costs		103,221		95,705		401,871		394,699
Costs of other marine revenues		3,539		8,027		29,453		21,502
Depreciation and amortization		25,677		25,303		99,613		98,510
General and administrative		19,379		16,871		73,424		67,514
Impairment of long-lived assets		1,733		26,456		1,733		26,456
Gains on asset sales		(1,462	)	(2,286	)	(11,979	)	(7,075	)
Total operating expense		152,087		170,076		594,115		601,606
		27,526		(15,882	)	98,035		51,024
Other income (expenses):
Foreign exchange loss		(132	)	(441	)	(327	)	(1,782	)
Equity in net earnings of unconsolidated companies		1,798		1,296		6,299		6,252
Minority interests		(36	)	(43	)	(59	)	(204	)
Interest and miscellaneous income		847		621		2,734		2,896
Interest and other debt costs		(2,183	)	(1,519	)	(6,887	)	(3,683	)
		294		(86	)	1,760		3,479
Earnings before income taxes		27,820		(15,968	)	99,795		54,503
Income tax expense (benefit)		(24,576	)	(9,005	)	(1,544	)	12,841
Net earnings	$	52,396		(6,963	)	101,339		41,662
Earnings per common share	$	0.92		(.12	)	1.78		.74
Diluted earnings (loss) per common share	$	0.91		(.12	)	1.78		.73
Weighted average common shares outstanding		57,002,733		56,674,900		56,854,282		56,563,328
Incremental common shares from stock options		418,592		170,754		213,992		125,062
Adjusted weighted average common shares		57,421,325		56,845,654		57,068,274		56,688,390
Cash dividends declared per common share	$	.15		.15		.60		.60

TIDEWATER INC.

CONSOLIDATED BALANCE SHEETS

(In thousands)

	March 31, 2005		March 31, 2004
ASSETS
Current assets:
Cash and cash equivalents	$	15,376	17,636
Trade and other receivables less allowance for doubtful accounts of $7,138 in 2005 and $7,304 in 2004		169,784	165,762
Marine operating supplies		38,959	37,919
Other current assets		3,837	3,320
Total current assets		227,956	224,637
Investments in, at equity, and advances to unconsolidated companies		32,074	33,722
Properties and equipment:
Vessels and related equipment		2,362,575	2,206,566
Other properties and equipment		41,499	41,494
		2,404,074	2,248,060
Less accumulated depreciation and amortization		951,888	894,863
Net properties and equipment		1,452,186	1,353,197
Goodwill		328,754	328,754
Other assets		172,203	141,480
Total assets	$	2,213,173	2,081,790
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses		82,261	59,788
Accrued property and liability losses		9,286	9,125
Income taxes		695	3,139
Total current liabilities		92,242	72,052
Long-term debt		380,000	325,000
Deferred income taxes		184,410	198,325
Accrued property and liability losses		34,778	31,031
Other liabilities and deferred credits		79,041	89,272
Stockholders’ equity:
Common stock of $.10 par value, 125,000,000 shares authorized, and 60,718,231 shares at March 2005		6,072	6,070
Other stockholders’ equity		1,436,630	1,360,040
Total stockholders’ equity		1,442,702	1,366,110
Total liabilities and stockholders’ equity	$	2,213,173	2,081,790

Further details of the Company’s vessel revenues and vessel operating costs for the quarters and years ended March 31, 2005 and 2004 are as follows:

	Quarter Ended March 31,				Year Ended March 31,
(In thousands)	2005		2004		2005	2004
Vessel revenues:
Domestic	$	30,947	28,517		118,288	125,344
International		143,503	115,946		537,238	500,604
Total vessel revenues		174,450	144,463		655,526	625,948
Vessel operating costs:
Crew costs		58,104	53,075		226,653	213,687
Repair and maintenance		15,553	18,875		70,519	76,975
Insurance		5,302	2,192		18,568	20,638
Fuel, lube and supplies		11,076	10,049		40,329	38,309
Other		13,186	11,514		45,802	45,090
Total vessel operating cost		103,221	95,705		401,871	394,699
Vessel operating margin	$	71,229	48,758		253,655	231,249
Vessel operating margin as a % of revenue	%	40.8	33.8		38.7	36.9
Further details of the Company’s vessel operating profit (loss) for the quarters and years ended March 31, 2005 and 2004 are as follows:
	Quarter Ended March 31,				Year Ended March 31,
(In thousands)	2005		2004		2005	2004
Vessel operating profit – United States	$	2,594	(3,056	)	2,022	(17,715	)
Vessel operating profit – International	$	28,283	13,138		95,383	96,316

The Company’s actual vessel count by vessel class at March 31, 2005 and vessel utilization percentages and average dayrates by vessel class for the quarter and year ended March 31, 2005 were as follows:

UTILIZATION

Fiscal Year 2005	Actual Vessel Count at March 31, 2005		Quarter Ended March 31, 2005			Year Ended March 31, 2005
Domestic-based fleet:
Deepwater vessels	5			91.6	%		87.2	%
Towing-supply/supply	48			57.1	%		55.0	%
Crew/utility	18			80.0	%		76.0	%
Offshore tugs	17			25.1	%		27.1	%
Total	88			58.0	%		55.8	%
International-based fleet:
Deepwater vessels	32			84.8	%		84.5	%
Towing-supply/supply	202			70.9	%		70.1	%
Crew/utility	64			75.7	%		75.5	%
Offshore tugs	41			61.6	%		64.0	%
Other	12			47.3	%		49.4	%
Total	351			71.2	%		71.0	%
Worldwide fleet:
Deepwater vessels	37			85.7	%		84.9	%
Towing-supply/supply	250			68.3	%		67.1	%
Crew/utility	82			76.7	%		75.6	%
Offshore tugs	58			51.3	%		52.0	%
Other	12			47.3	%		49.4	%
Total	439	(1)		68.5	%		67.7	%
AVERAGE DAYRATES
Domestic-based fleet:
Deepwater vessels			$	14,009		$	13,087
Towing-supply/supply			$	6,741		$	6,080
Crew/utility			$	3,689		$	3,382
Offshore tugs			$	9,648		$	7,874
Total			$	6,735		$	6,117
International-based fleet:
Deepwater vessels			$	13,165		$	12,552
Towing-supply/supply			$	6,561		$	6,279
Crew/utility			$	3,184		$	2,930
Offshore tugs			$	5,057		$	4,585
Other			$	1,418		$	1,375
Total			$	6,372		$	6,013
Worldwide fleet:
Deepwater vessels			$	13,279		$	12,636
Towing-supply/supply			$	6,591		$	6,246
Crew/utility			$	3,303		$	3,042
Offshore tugs			$	5,691		$	5,145
Other			$	1,418		$	1,375
Total			$	6,433		$	6,032

(1) In addition to the 439 total owned or chartered vessels, the Company had 93 vessels withdrawn from active service and 31 joint venture and other vessels at March 31, 2005.

Tidewater’s vessel commitments by vessel class and type as of March 31, 2005 were as follows:

	U.S. Built					International Built
Vessel Class   and Type	Number of Vessels	Total Cost Commitment		Expended Through 3/31/05		Number of Vessels	Total Cost Commitment		Expended Through 3/31/05
	(in thousands)					(in thousands)
Deepwater vessels:
Anchor handling towing supply	—		—		—	3	$	115,634	$	101,216
Replacement fleet:
Anchor handling towing supply	—		—		—	5	$	64,084	$	40,180
Platform supply vessels	1	$	11,276	$	2,968	—		—		—
Crewboats:
Crewboats – 175 foot	1	$	6,830	$	711	—		—		—
Crewboats – Water jets	—		—		—	5	$	5,299	$	2,547
Totals	2	$	18,106	$	3,679	13	$	185,017	$	143,943