Tidewater (TDW) 8-K Tidewater Reports First Quarter Results For Fiscal 2007

Exhibit 99.1

Tidewater Reports First Quarter Results For Fiscal 2007

NEW ORLEANS, July 27, 2006 – Tidewater Inc. (NYSE:TDW) announced today first quarter net earnings for the period ended June 30, 2006, of $71.4 million, or $1.23 per common share, on revenues of $269.8 million. For the same quarter last year, net earnings were $28.9 million, or $.50 per common share, on revenues of $192.2 million. The immediately preceding quarter ended March 31, 2006, had earnings of $64.7 million, or $1.11 per common share, on revenues of $246.5 million.

As previously announced, Tidewater will hold a conference call to discuss June quarterly earnings on Thursday, July 27, 2006 at 9:00 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 11:00 a.m. CDST on July 28, 2006, and will continue until 11:59 p.m. CDST on July 29, 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 2221089.

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 August 27, 2006.

Tidewater Inc. owns over 515 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 - (504) 566-4506

Financial information is displayed on the next page.

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TIDEWATER INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and par value data)

	June 30, 2006		March 31, 2006
ASSETS
Current assets:
Cash and cash equivalents	$	224,298	246,109
Trade and other receivables, net		258,654	237,428
Marine operating supplies		42,295	41,181
Other current assets		9,959	4,325
Total current assets		535,206	529,043
Investments in, at equity, and advances to unconsolidated companies		24,025	34,308
Properties and equipment:
Vessels and related equipment		2,480,799	2,457,947
Other properties and equipment		50,177	50,205
		2,530,976	2,508,152
Less accumulated depreciation and amortization		1,149,400	1,134,425
Net properties and equipment		1,381,576	1,373,727
Goodwill		328,754	328,754
Other assets		79,668	98,708
Total assets	$	2,349,229	2,364,540
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses		94,470	97,265
Accrued property and liability losses		7,111	7,223
Other current liabilities		18,214	11,266
Total current liabilities		119,795	115,754
Long-term debt		300,000	300,000
Deferred income taxes		177,177	175,267
Accrued property and liability losses		20,376	21,732
Other liabilities and deferred credits		94,083	92,666
Stockholders’ equity:
Common stock of $.10 par value, 125,000,000 shares authorized, issued 58,348,424 shares at June and 60,310,164 shares at March		5,835	6,031
Other stockholders’ equity		1,631,963	1,653,090
Total stockholders’ equity		1,637,798	1,659,121
Total liabilities and stockholders’ equity	$	2,349,229	2,364,540

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TIDEWATER INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(In thousands, except share and per share data)

	Three Months Ended June 30,
	2006			2005
Revenues:
Vessel revenues	$	258,685		185,392
Other marine revenues		11,135		6,775
		269,820		192,167
Costs and expenses:
Vessel operating costs		119,762		106,210
Costs of other marine revenues		9,914		4,590
Depreciation and amortization		27,797		26,337
General and administrative		23,692		19,259
Gain on sales of assets		(2,713	)	(1,634	)
		178,452		154,762
		91,368		37,405
Other income (expenses):
Foreign exchange gain (loss)		(769	)	608
Equity in net earnings of unconsolidated companies		2,449		2,167
Minority interests		20		(23	)
Interest and miscellaneous income		4,777		1,205
Interest and other debt costs		(2,580	)	(2,362	)
		3,897		1,595
Earnings before income taxes		95,265		39,000
Income taxes		23,816		10,140
Net earnings	$	71,449		28,860
Basic earnings per common share	$	1.25		.50
Diluted earnings per common share	$	1.23		.50
Weighted average common shares outstanding		57,296,433		57,230,937
Incremental common shares from stock options		711,830		351,098
Adjusted weighted average common shares		58,008,263		57,582,035
Cash dividends declared per common share	$	.15		.15

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TIDEWATER INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	Three Months Ended June 30,
	2006			2005
Net cash provided by operating activities	$	98,337		34,308
Cash flows from investing activities:
Proceeds from sales of assets		7,021		3,210
Additions to properties and equipment		(40,108	)	(43,874	)
Repayments of advances to unconsolidated companies		9,496		—
Other		259		—
Net cash (used in) investing activities		(23,332	)	(40,664	)
Cash flows from financing activities:
Debt borrowings		5,000		30,000
Principal payments on debt		(5,000	)	(15,000	)
Proceeds from issuance of stock options		3,263		116
Cash dividends		(8,728	)	(8,629	)
Stock repurchases		(91,351	)	—
Other		—		(364	)
Net cash (used in) provided by financing activities		(96,816	)	6,123
Net change in cash and cash equivalents		(21,811	)	(233	)
Cash and cash equivalents at beginning of period		246,109		15,376
Cash and cash equivalents at end of period	$	224,298		15,143
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest	$	125		889
Income taxes	$	7,404		5,662

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