Tidewater (TDW) 8-K Tidewater Reports Third Quarter Results For Fiscal 2006

Exhibit 99.1

Tidewater Reports Third Quarter Results For Fiscal 2006

NEW ORLEANS, January 24, 2006—Tidewater Inc. (NYSE:TDW) announced today third quarter net earnings for the period ended December 31, 2005, of $60.0 million, or $1.04 diluted earnings per common share, on revenues of $234.6 million. For the same quarter last year, net earnings were $19.8 million, or $.34 per share, on revenues of $187.6 million. Net earnings in the immediately preceding quarter ended September 30, 2005, were $82.2 million, or $1.42 per share (inclusive of a $42.8 million, or $.74 per share, gain related to the sale of six vessels during the quarter), on revenues of $204.4 million.

As previously announced, Tidewater will hold a conference call to discuss December quarter earnings on Tuesday, January 24, 2006 at 10:00 a.m. CST 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. CST on January 24, 2006, and will continue until 11:59 p.m. CST on January 25, 2006. 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 3996302.

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 February 24, 2006.

Tidewater Inc. owns and operates nearly 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.

- 30 -

Contact: Keith Lousteau or Joe Bennett (504) 568-1010

Financial information is displayed on the next page.

1

TIDEWATER INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and par value data)

	December 31, 2005		March 31, 2005
ASSETS
Current assets:
Cash and cash equivalents	$	167,064	15,376
Trade and other receivables, net		232,148	169,784
Marine operating supplies		40,351	38,959
Other current assets		4,437	3,837
Total current assets		444,000	227,956
Investments in, at equity, and advances to unconsolidated companies		35,240	32,074
Properties and equipment:
Vessels and related equipment		2,442,080	2,483,970
Other properties and equipment		50,047	48,512
		2,492,127	2,532,482
Less accumulated depreciation and amortization		1,121,782	1,080,296
Net properties and equipment		1,370,345	1,452,186
Goodwill		328,754	328,754
Other assets		116,971	172,203
Total assets	$	2,295,310	2,213,173
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses		81,129	82,261
Accrued property and liability losses		8,368	9,286
Income taxes		10,024	695
Total current liabilities		99,521	92,242
Long-term debt		300,000	380,000
Deferred income taxes		179,903	184,410
Accrued property and liability losses		28,144	34,778
Other liabilities and deferred credits		95,695	79,041
Stockholders’ equity:
Common stock of $.10 par value, 125,000,000 shares authorized, issued 60,488,807 shares at December and 60,718,231 shares at March		6,049	6,072
Other stockholders’ equity		1,585,998	1,436,630
Total stockholders’ equity		1,592,047	1,442,702
Total liabilities and stockholders’ equity	$	2,295,310	2,213,173

2

TIDEWATER INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(In thousands, except share and per share data)

	Quarter Ended December 31,					Nine Months Ended December 31,
	2005			2004		2005		2004
Revenues:
Vessel revenues	$	228,086		170,076		611,708		481,076
Other marine revenues		6,473		17,517		19,369		31,461
		234,559		187,593		631,077		512,537
Costs and expenses:
Vessel operating costs		103,414		101,825		315,629		298,650
Costs of other marine revenues		5,226		15,007		14,750		25,914
Depreciation and amortization		26,892		25,298		79,843		73,936
General and administrative		22,855		18,741		61,547		54,045
Impairment on long-lived assets		3,050		—		3,050		—
Gain on sales of assets		(5,275	)	(2,837	)	(75,462	)	(10,517	)
		156,162		158,034		399,357		442,028
		78,397		29,559		231,720		70,509
Other income (expenses):
Foreign exchange gain (loss)		136		(645	)	1,155		(195	)
Equity in net earnings of unconsolidated companies		2,228		1,169		7,110		4,501
Minority interests		22		(36	)	27		(23	)
Interest and miscellaneous income		2,429		695		5,246		1,887
Interest and other debt costs		(2,357	)	(1,694	)	(6,630	)	(4,704	)
		2,458		(511	)	6,908		1,466
Earnings before income taxes		80,855		29,048		238,628		71,975
Income taxes		20,833		9,295		67,554		23,032
Net earnings	$	60,022		19,753		171,074		48,943
Earnings per common share	$	1.05		.35		2.99		.86
Diluted earnings per common share	$	1.04		.34		2.96		.86
Weighted average common shares outstanding		57,231,972		57,035,705		57,217,573		56,919,397
Incremental common shares from stock options		696,163		233,024		530,842		137,005
Adjusted weighted average common shares		57,928,135		57,268,729		57,748,415		57,056,402
Cash dividends declared per common share	$	.15		.15		.45		.45

3

TIDEWATER INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	Nine Months Ended December 31,
	2005			2004
Net cash provided by operating activities	$	183,644		110,595
Cash flows from investing activities:
Proceeds from sales of assets		199,625		14,362
Additions to properties and equipment		(125,609	)	(153,983	)
Net cash provided by (used in) investing activities		74,016		(139,621	)
Cash flows from financing activities:
Borrowings		30,000		90,000
Principal payments on debt		(110,000	)	(40,000	)
Proceeds from issuance of common stock		8,984		4,162
Common stock repurchases		(8,691	)	—
Cash dividends		(25,907	)	(25,691	)
Other		(358	)	(1,039	)
Net cash (used in) provided by financing activities		(105,972	)	27,432
Net change in cash and cash equivalents		151,688		(1,594	)
Cash and cash equivalents at beginning of period		15,376		17,636
Cash and cash equivalents at end of period	$	167,064		16,042
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest	$	8,188		8,853
Income taxes	$	19,394		24,542

4