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

Exhibit 99.1

Tidewater Reports Third Quarter Results For Fiscal 2007

NEW ORLEANS, January 24, 2007 – Tidewater Inc. (NYSE:TDW) announced today third quarter net earnings for the period ended December 31, 2006, of $93.4 million, or $1.67 per common share, on revenues of $287.9 million. Included in the current quarter’s net earnings is a pre-tax financial gain of $6.0 million ($3.7 million after tax, or $0.07 per common share) related to the December 2006 sale of three of the company’s offshore tug vessels to Crosby Marine Transportation, LLC in completion of a transaction previously announced.

For the same quarter last year, net earnings were $60.0 million, or $1.04 per common share, on revenues of $234.6 million. The immediately preceding quarter ended September 30, 2006, had net earnings of $104.2 million, or $1.86 per common share, on revenues of $274.0 million. Included in the September 2006 quarterly net earnings was a pre-tax financial gain of $28.0 million ($17.1 million after tax, or $0.30 per common share) related to the August 2006 sale of 11 of the company’s offshore tug vessels to Crosby Marine Transportation, LLC.

As previously announced, Tidewater will hold a conference call to discuss December quarterly earnings on Wednesday, January 24, 2007 at 9:00 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 10:00 a.m. CST on January 25, 2007, and will continue until 11:59 p.m. CST on January 26, 2007. 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 5162062.

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, 2007. Upon completion of the conference call, the company will also file a Form 8-K with the SEC which will include a transcript of the conference call.

Tidewater Inc. owns over 450 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 beginning on the next page.

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TIDEWATER INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and par value data)

	December 31, 2006		March 31, 2006
ASSETS
Current assets:
Cash and cash equivalents	$	340,813	246,109
Trade and other receivables, net		268,958	237,428
Marine operating supplies		43,574	41,181
Other current assets		5,307	4,325
Total current assets		658,652	529,043
Investments in, at equity, and advances to unconsolidated companies		27,985	34,308
Properties and equipment:
Vessels and related equipment		2,533,082	2,457,947
Other properties and equipment		50,983	50,205
		2,584,065	2,508,152
Less accumulated depreciation and amortization		1,153,326	1,134,425
Net properties and equipment		1,430,739	1,373,727
Goodwill		328,754	328,754
Other assets		86,920	98,708
Total assets	$	2,533,050	2,364,540
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses		109,729	97,265
Accrued property and liability losses		6,841	7,223
Other current liabilities		20,336	11,266
Total current liabilities		136,906	115,754
Long-term debt		300,000	300,000
Deferred income taxes		179,863	175,267
Accrued property and liability losses		19,429	21,732
Other liabilities and deferred credits		104,425	92,666
Stockholders’ equity:
Common stock of $.10 par value, 125,000,000 shares authorized, issued 57,468,128 shares at December and 60,310,164 shares at March		5,747	6,031
Other stockholders’ equity		1,786,680	1,653,090
Total stockholders’ equity		1,792,427	1,659,121
Total liabilities and stockholders’ equity	$	2,533,050	2,364,540

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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,
	2006			2005		2006		2005
Revenues:
Vessel revenues	$	280,491		228,086		810,490		611,708
Other marine revenues		7,422		6,473		21,222		19,369
		287,913		234,559		831,712		631,077
Costs and expenses:
Vessel operating costs		123,997		103,414		366,327		315,629
Costs of other marine revenues		6,544		5,226		18,406		14,750
Depreciation and amortization		29,912		26,892		86,272		79,843
General and administrative		24,924		22,855		72,591		61,547
Impairment on long-lived assets		—		3,050		—		3,050
Gain on sales of assets		(8,803	)	(5,275	)	(39,955	)	(75,462	)
		176,574		156,162		503,641		399,357
		111,339		78,397		328,071		231,720
Other income (expenses):
Foreign exchange gain (loss)		(468	)	136		(1,202	)	1,155
Equity in net earnings of unconsolidated companies		1,879		2,228		7,704		7,110
Minority interests		(41	)	22		(269	)	27
Interest and miscellaneous income		5,144		2,429		13,654		5,246
Interest and other debt costs		(2,464	)	(2,357	)	(7,389	)	(6,630	)
		4,050		2,458		12,498		6,908
Earnings before income taxes		115,389		80,855		340,569		238,628
Income taxes		21,980		20,833		71,520		67,554
Net earnings	$	93,409		60,022		269,049		171,074
Basic earnings per common share	$	1.69		1.05		4.80		2.99
Diluted earnings per common share	$	1.67		1.04		4.75		2.96
Weighted average common shares outstanding		55,211,834		57,231,972		56,034,160		57,217,573
Incremental common shares from stock options		604,569		696,163		613,952		530,842
Adjusted weighted average common shares		55,816,403		57,928,135		56,648,112		57,748,415
Cash dividends declared per common share	$	0.15		0.15		0.45		0.45

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TIDEWATER INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	Nine Months Ended December 31,
	2006			2005
Operating activities:
Net earnings	$	269,049		171,074
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		86,272		79,843
Provision for deferred income taxes		6,329		41,120
Impairment of long-lived assets		—		3,050
Gain on sales of assets		(39,955	)	(75,462	)
Equity in earnings of unconsolidated companies, net of dividends		(3,807	)	(3,166	)
Minority interests, net of dividends		(15	)	(111	)
Compensation expense - stock-based		6,144		2,445
Tax benefit on stock compensation		3,134		847
Changes in assets and liabilities, net:
Trade and other receivables		(20,987	)	(59,545	)
Marine operating supplies		(2,393	)	1,127
Other current assets		(988	)	(600	)
Accounts payable and accrued expenses		25,227		7,177
Accrued property and liability losses		(217	)	(895	)
Other, net		8,224		16,740
Net cash provided by operating activities		336,017		183,644
Cash flows from investing activities:
Proceeds from sales of assets		67,731		199,625
Additions to properties and equipment		(173,350	)	(125,609	)
Repayment of advances to unconsolidated companies		9,496		—
Other		635		—
Net cash (used in) provided by investing activities		(95,488	)	74,016
Cash flows from financing activities:
Borrowings		5,000		30,000
Principal payments on debt		(5,000	)	(110,000	)
Proceeds from issuance of common stock		11,837		8,984
Common stock repurchases		(131,735	)	(8,691	)
Cash dividends		(25,529	)	(25,907	)
Other		(398	)	(358	)
Net cash used in financing activities		(145,825	)	(105,972	)
Net change in cash and cash equivalents		94,704		151,688
Cash and cash equivalents at beginning of period		246,109		15,376
Cash and cash equivalents at end of period	$	340,813		167,064
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest	$	7,127		8,188
Income taxes	$	55,054		19,394

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