Tidewater (TDW) 8-K Tidewater Reports Second Quarter Results for Fiscal 2006

Exhibit 99.1

Tidewater Reports Second Quarter Results for Fiscal 2006

HOUSTON, October 27, 2005 — Tidewater Inc. (NYSE:TDW) announced today second quarter net earnings for the period ended September 30, 2005, of $82.2 million, or $1.42 per share, on revenues of $204.4 million. For the same quarter last year, net earnings were $16.3 million, or $.29 per share, on revenues of $166.8 million. Net earnings in the immediately preceding quarter ended June 30, 2005, were $28.9 million, or $.50 per share, on revenues of $192.2 million.

As previously reported, included in the current quarter’s net earnings is an after-tax gain of $42.8 million, or $.74 per common share, related to the sale of six of its KMAR 404 class of Anchor Handling Towing Supply vessels to Deep Sea Supply ASA for a total cash price of $188 million. The Company used a portion of the proceeds of the sale to repay $95 million of outstanding borrowings under the Company’s revolving credit agreement.

As previously announced, Tidewater will hold a conference call to discuss September 2005 quarter ended earnings on Thursday, October 27, 2005, at 10:00 a.m. CDST promptly following the Company’s release of quarterly 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” call just prior to the scheduled start. A replay of the conference call will be available beginning at 1:00 p.m. CDST on October 27, 2005, and will continue until 11:59 p.m. CDST on October 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 1186115.

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 November 27, 2005.

Tidewater Inc. owns and operates over 550 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.

Contact: Joe Bennett (713) 954-4875

Financial information is displayed on the next page.

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ITEM 1.FINANCIAL STATEMENTS

TIDEWATER INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and par value data)

	September 30, 2005		March 31, 2005
ASSETS
Current assets:
Cash and cash equivalents	$	125,713	15,376
Trade and other receivables, net		213,082	169,784
Marine operating supplies		36,459	38,959
Other current assets		6,467	3,837
Total current assets		381,721	227,956
Investments in, at equity, and advances to unconsolidated companies		34,155	32,074
Properties and equipment:
Vessels and related equipment		2,412,698	2,483,970
Other properties and equipment		49,449	48,512
		2,462,147	2,532,482
Less accumulated depreciation and amortization		1,103,620	1,080,296
Net properties and equipment		1,358,527	1,452,186
Goodwill		328,754	328,754
Other assets		132,141	172,203
Total assets	$	2,235,298	2,213,173
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses		83,047	82,261
Accrued property and liability losses		9,119	9,286
Income taxes payable		2,090	695
Total current liabilities		94,256	92,242
Long-term debt		300,000	380,000
Deferred income taxes		181,634	184,410
Accrued property and liability losses		34,117	34,778
Other liabilities and deferred credits		89,596	79,041
Stockholders’ equity:
Common stock of $.10 par value, 125,000,000 shares authorized, issued 60,489,194 shares at September and 60,718,231 shares at March		6,049	6,072
Other stockholders’ equity		1,529,646	1,436,630
Total stockholders’ equity		1,535,695	1,442,702
Total liabilities and stockholders’ equity	$	2,235,298	2,213,173

See Notes to Unaudited Condensed Consolidated Financial Statements.

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TIDEWATER INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(In thousands, except share and per share data)

	Quarter Ended September 30,					Six Months Ended September 30,
	2005			2004		2005		2004
Revenues:
Vessel revenues	$	198,230		161,206		383,622		311,000
Other marine revenues		6,121		5,621		12,896		13,944
		204,351		166,827		396,518		324,944
Costs and expenses:
Vessel operating costs		106,005		98,261		212,215		196,825
Costs of other marine revenues		4,934		4,093		9,524		10,907
Depreciation and amortization		26,614		24,713		52,951		48,638
General and administrative		19,433		17,702		38,692		35,304
Gain on sales of assets		(68,553	)	(1,247	)	(70,187	)	(7,680	)
		88,433		143,522		243,195		283,994
		115,918		23,305		153,323		40,950
Other income (expenses):
Foreign exchange gain		411		13		1,019		450
Equity in net earnings of unconsolidated companies		2,715		1,639		4,882		3,332
Minority interests		28		53		5		13
Interest and miscellaneous income		1,612		611		2,817		1,192
Interest and other debt costs		(1,911	)	(1,636	)	(4,273	)	(3,010	)
		2,855		680		4,450		1,977
Earnings before income taxes		118,773		23,985		157,773		42,927
Income taxes		36,581		7,676		46,721		13,737
Net earnings	$	82,192		16,309		111,052		29,190
Earnings per common share	$	1.44		.29		1.94		.51
Diluted earnings per common share	$	1.42		.29		1.93		.51
Weighted average common shares outstanding		57,189,133		56,937,688		57,209,995		56,919,397
Incremental common shares from stock options		545,266		142,302		448,182		114,583
Adjusted weighted average common shares		57,734,399		57,079,990		57,658,177		57,033,980
Cash dividends declared per common share	$	.15		.15		.30		.30

See Notes to Unaudited Condensed Consolidated Financial Statements.

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TIDEWATER INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	Quarter Ended September 30,					Six Months Ended September 30,
	2005			2004		2005		2004
Net cash provided by operating activities	$	65,797		32,644		100,105		59,644
Cash flows from investing activities:
Proceeds from sales of assets		188,275		1,216		191,485		9,762
Additions to properties and equipment		(35,931	)	(44,160	)	(79,805	)	(114,449	)
Net cash provided by (used in) investing activities		152,344		(42,944	)	111,680		(104,687	)
Cash flows from financing activities:
Borrowings		—		30,000		30,000		85,000
Principal payments on debt		(95,000	)	(15,000	)	(110,000	)	(30,000	)
Proceeds from issuance of common stock		4,762		1,994		4,878		2,026
Common stock repurchases		(8,691	)	—		(8,691	)	—
Cash dividends		(8,648	)	(8,559	)	(17,277	)	(17,115	)
Other		6		(349	)	(358	)	(685	)
Net cash (used in) provided by financing activities		(107,571	)	8,086		(101,448	)	39,226
Net change in cash and cash equivalents		110,570		(2,214	)	110,337		(5,817	)
Cash and cash equivalents at beginning of period		15,143		14,033		15,376		17,636
Cash and cash equivalents at end of period	$	125,713		11,819		125,713		11,819
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest	$	7,162		7,254		8,051		7,867
Income taxes	$	6,279		6,704		11,941		13,277

See Notes to Unaudited Condensed Consolidated Financial Statements.

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