Tidewater (TDW) 8-K Tidewater Reports Second Quarter Results For Fiscal 2008

Exhibit 99.1

Tidewater Reports Second Quarter Results For Fiscal 2008

NEW ORLEANS—October 26, 2007—Tidewater Inc. (NYSE:TDW) announced today second quarter net earnings for the period ended September 30, 2007, of $86.5 million, or $1.56 per common share, on revenues of $319.0 million. For the same quarter last year, net earnings were $104.2 million, or $1.86 per common share, on revenues of $274.0 million. The immediately preceding quarter ended June 30, 2007, had net earnings of $87.5 million, or $1.55 per common share, on revenues of $305.5 million.

Included in net earnings for the quarter ended September 30, 2006, was a gain of $28.2 million ($17.2 million after tax, or $0.31 per common share) related to the August 2006 sale of 11 of the company’s offshore tug vessels for a total cash price of $34.8 million. Included in net earnings for the quarter ended June 30, 2007, were after-tax charges totaling $3.5 million, or $.06 per common share, related to the settlement of a recent class action in California related to certain wage and hour claims of certain former and current employees, retirement costs of a senior executive and legal costs associated with the Company’s ongoing previously disclosed investigation of its Nigerian operations.

As previously announced, Tidewater will hold a conference call to discuss September quarterly earnings on Friday, October 26, 2007, 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 10:00 a.m. CDST on October 27, 2007, and will continue until 11:59 p.m. CDST on October 29, 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 19404875.

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 26, 2007.

Tidewater Inc. owns 456 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:

Tidewater Inc., New Orleans

Joe Bennett, Senior Vice President, Principal Accounting Officer and Chief Investor Relations Officer

504-566-4506

SOURCE: Tidewater Inc.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and par value data)

	September 30, 2007		March 31, 2007
ASSETS
Current assets:
Cash and cash equivalents	$	320,983	393,806
Trade and other receivables, net		296,066	286,808
Marine operating supplies		40,355	44,902
Other current assets		9,314	6,033
Total current assets		666,718	731,549
Investments in, at equity, and advances to unconsolidated companies		25,616	24,423
Properties and equipment:
Vessels and related equipment		2,758,613	2,609,324
Other properties and equipment		81,137	51,955
		2,839,750	2,661,279
Less accumulated depreciation and amortization		1,215,782	1,179,182
Net properties and equipment		1,623,968	1,482,097
Goodwill		328,754	328,754
Other assets		99,338	82,475
Total assets	$	2,744,394	2,649,298
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current maturities on capitalized lease obligations		53,255	2,194
Accounts payable		70,396	75,217
Accrued expenses		53,657	45,880
Accrued property and liability losses		6,097	6,130
Other current liabilities		30,723	17,259
Total current liabilities		214,128	146,680
Long-term debt		300,000	300,000
Capitalized lease obligations		—	19,712
Deferred income taxes		183,574	179,687
Accrued property and liability losses		14,859	15,510
Other liabilities and deferred credits		122,114	101,699
Stockholders’ equity:
Common stock of $.10 par value, 125,000,000 shares authorized, issued 54,867,584 shares at September and 57,476,898 shares at March		5,487	5,748
Other stockholders’ equity		1,904,232	1,880,262
Total stockholders’ equity		1,909,719	1,886,010
Total liabilities and stockholders’ equity	$	2,744,394	2,649,298

2

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(In thousands, except share and per share data)

	Quarter Ended September 30,					Six Months Ended September 30,
	2007			2006		2007		2006
Revenues:
Vessel revenues	$	297,368		271,314		590,259		529,999
Other marine revenues		21,678		2,665		34,269		13,800
		319,046		273,979		624,528		543,799
Costs and expenses:
Vessel operating costs		142,307		122,568		280,847		242,330
Costs of other marine revenues		19,485		1,948		31,232		11,862
Depreciation and amortization		29,836		28,563		58,033		56,360
General and administrative		30,680		23,975		62,192		47,667
Gain on sales of assets		(2,102	)	(28,439	)	(9,032	)	(31,152	)
		220,206		148,615		423,272		327,067
		98,840		125,364		201,256		216,732
Other income (expenses):
Foreign exchange gain (loss)		141		35		(384	)	(734	)
Equity in net earnings of unconsolidated companies		3,725		3,376		7,111		5,825
Minority interests		(85	)	(248	)	(129	)	(228	)
Interest and miscellaneous income		4,146		3,733		9,831		8,510
Interest and other debt costs		(1,336	)	(2,345	)	(4,178	)	(4,925	)
		6,591		4,551		12,251		8,448
Earnings before income taxes		105,431		129,915		213,507		225,180
Income taxes		18,965		25,724		39,499		49,540
Net earnings	$	86,466		104,191		174,008		175,640
Basic earnings per common share	$	1.57		1.87		3.13		3.11
Diluted earnings per common share	$	1.56		1.86		3.11		3.08
Weighted average common shares outstanding		55,111,678		55,595,519		55,593,382		56,446,266
Incremental common shares from stock options		447,266		525,457		447,033		618,644
Adjusted weighted average common shares		55,558,944		56,120,976		56,040,415		57,064,910
Cash dividends declared per common share	$	.15		.15		.30		.30

3

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	Six Months Ended September 30,
	2007			2006
Operating activities:
Net earnings	$	174,008		175,640
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		58,033		56,360
Provision for deferred income taxes		(13,399	)	16,451
Gain on sales of assets		(9,032	)	(31,252	)
Equity in earnings of unconsolidated companies, net of dividends		(6,620	)	(2,071	)
Minority interests, net of dividends		(21	)	(10	)
Compensation expense—stock-based		6,049		5,194
Changes in assets and liabilities, net:
Trade and other receivables		(9,185	)	(18,058	)
Marine operating supplies		4,547		(2,116	)
Other current assets		(3,281	)	(3,276	)
Accounts payable		(4,804	)	6,461
Accrued expenses		7,777		816
Accrued property and liability losses		(106	)	(235	)
Other current liabilities		11,901		2,197
Other, net		4,604		10,795
Net cash provided by operating activities		220,471		216,896
Cash flows from investing activities:
Proceeds from sales of assets		58,714		55,531
Additions to properties and equipment		(216,453	)	(128,235	)
Repayments of advances to unconsolidated companies		—		9,496
Other		—		218
Net cash (used in) provided by investing activities		(157,739	)	(62,990	)
Cash flows from financing activities:
Debt borrowings		—		5,000
Principal payments on debt		—		(5,000	)
Principal payments on capitalized lease obligations		(2,527	)	—
Proceeds from exercise of stock options		43,419		4,495
Cash dividends		(16,806	)	(17,185	)
Stock repurchases		(174,743	)	(131,735	)
Excess tax benefits on stock options exercised		15,102		1,413
Net cash used in financing activities		(135,555	)	(143,012	)
Net change in cash and cash equivalents		(72,823	)	10,894
Cash and cash equivalents at beginning of period		393,806		246,109
Cash and cash equivalents at end of period	$	320,983		257,003
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest	$	8,839		6,813
Income taxes	$	29,297		31,758
Non-cash financing activities:
Capitalized leases	$	33,876		—

4

The company’s revenues and operating costs for the quarters and six-month periods ended September 30, 2007 and 2006 and for the quarter ended June 30, 2007 were as follows:

	Quarter Ended September 30,			Six Months Ended September 30,		Quarter Ended June 30,
(In thousands)	2007		2006	2007	2006	2007
Revenues:
Vessel revenues:
United States	$	43,183	62,272	86,255	124,080	43,072
International		254,185	209,042	504,004	405,919	249,819
		297,368	271,314	590,259	529,999	292,891
Other marine revenues		21,678	2,665	34,269	13,800	12,591
	$	319,046	273,979	624,528	543,799	305,482
Operating costs:
Vessel operating costs:
Crew costs	$	76,694	66,248	152,939	129,657	76,245
Repair and maintenance		25,402	25,313	49,960	50,302	24,558
Insurance and loss reserves		4,539	4,407	10,577	8,955	6,038
Fuel, lube and supplies		12,169	10,776	23,485	22,141	11,316
Vessel operating leases		965	364	1,731	618	766
Other		22,538	15,460	42,155	30,657	19,617
		142,307	122,568	280,847	242,330	138,540
Costs of other marine revenues		19,485	1,948	31,232	11,862	11,747
	$	161,792	124,516	312,079	254,192	150,287

The company’s vessel operating profit and other components of earnings before income taxes for the quarters and six-month periods ended September 30, 2007 and 2006 and for the quarter ended June 30, 2007 consist of the following:

	Quarter Ended September 30,					Six Months Ended September 30,				Quarter Ended June 30,
(In thousands)	2007			2006		2007		2006		2007
Vessel activity:
United States	$	9,815		26,361		20,180		52,285		10,365
International		94,770		76,798		190,680		144,914		95,910
		104,585		103,159		210,860		197,199		106,275
Gain on sales of assets		2,102		28,439		9,032		31,152		6,930
Other marine services		2,043		612		2,778		1,712		735
Operating profit		108,730		132,210		222,670		230,063		113,940
Equity in net earnings of unconsolidated companies		3,725		3,376		7,111		5,825		3,386
Interest and other debt costs		(1,336	)	(2,345	)	(4,178	)	(4,925	)	(2,842	)
Corporate general and administrative		(9,904	)	(6,248	)	(21,001	)	(12,543	)	(11,097	)
Other income		4,216		2,922		8,905		6,760		4,689
Earnings before income taxes	$	105,431		129,915		213,507		225,180		108,076

5

The company’s vessel utilization percentages and average day rates by vessel class and in total for the quarters and six month periods ended September 30, 2007 and 2006 and the quarter ended June 30, 2007, were as follows:

	Quarter Ended September 30,				Six Months Ended September 30,		Quarter Ended June 30,
	2007			2006	2007	2006	2007
UTILIZATION:
United States-based fleet:
Deepwater vessels		95.1	%	99.4	93.4	96.6	91.3
Towing-supply/supply		56.6		64.0	58.9	64.1	61.0
Crew/utility		88.5		87.4	88.4	91.8	88.3
Offshore tugs		—		41.8	—	40.5	—
Total		69.1	%	69.5	69.7	68.7	70.3
International-based fleet:
Deepwater vessels		91.8	%	94.9	94.1	92.1	96.3
Towing-supply/supply		76.9		77.7	77.1	77.5	77.4
Crew/utility		89.0		86.2	87.5	85.0	86.2
Offshore tugs		59.8		65.1	61.5	68.5	63.4
Other		48.3		52.0	51.4	48.9	54.7
Total		78.3	%	78.9	78.6	78.7	79.0
Worldwide fleet:
Deepwater vessels		92.5	%	95.8	94.0	93.0	95.5
Towing-supply/supply		74.1		75.1	74.5	74.9	75.0
Crew/utility		88.9		86.4	87.7	86.1	86.5
Offshore tugs		59.8		61.7	61.5	62.8	63.4
Other		48.3		52.0	51.4	48.9	54.7
Total		77.0	%	77.2	77.4	76.8	77.8
AVERAGE VESSEL DAY RATES:
United States-based fleet:
Deepwater vessels	$	23,382		23,442	23,394	22,444	23,432
Towing-supply/supply		11,856		12,102	11,907	11,875	11,951
Crew/utility		6,270		6,456	6,136	6,457	5,992
Offshore tugs		—		17,793	—	16,596	—
Total	$	12,254		12,606	12,126	12,290	12,001
International-based fleet:
Deepwater vessels	$	22,423		19,593	22,805	18,929	23,175
Towing-supply/supply		10,080		8,311	9,781	8,194	9,478
Crew/utility		4,584		3,895	4,624	3,822	4,663
Offshore tugs		6,511		6,328	6,781	6,139	7,044
Other		4,419		3,526	5,074	3,569	5,653
Total	$	9,768		8,222	9,662	8,028	9,557
Worldwide fleet:
Deepwater vessels	$	22,615		20,369	22,913	19,639	23,218
Towing-supply/supply		10,267		8,944	10,020	8,808	9,774
Crew/utility		4,852		4,319	4,854	4,275	4,855
Offshore tugs		6,511		7,469	6,781	7,504	7,044
Other		4,419		3,526	5,074	3,569	5,653
Total	$	10,064		8,935	9,958	8,738	9,852

6

The company’s average number of vessels by class and geographic distribution for the quarters and six-month periods ended September 30, 2007 and 2006 and for the quarter ended June 30, 2007, were as follows:

	Quarter Ended September 30,		Six Months Ended September 30,		Quarter Ended June 30,
	2007	2006	2007	2006	2007
United States-based fleet:
Deepwater vessels	7	7	7	7	6
Towing-supply/supply	35	50	36	50	38
Crew/utility	13	14	13	14	12
Offshore tugs	—	6	—	9	—
Total	55	77	56	80	56
International-based fleet:
Deepwater vessels	30	29	30	29	30
Towing-supply/supply	221	205	219	206	218
Crew/utility	68	70	71	70	74
Offshore tugs	38	39	37	39	37
Other	5	7	5	7	5
Total	362	350	362	351	364
Owned or chartered vessels included in marine revenues	417	427	418	431	420
Vessels withdrawn from service	24	48	25	55	25
Joint-venture and other	14	20	14	21	13
Total	455	495	457	507	458

The company’s vessel commitments by vessel class and type as of September 30, 2007:

	U. S. Built					International Built
Vessel class and type	Number of Vessels	Total Cost Commitment		Expended Through 9/30/07		Number of Vessels	Total Cost Commitment		Expended Through 9/30/07
		(In thousands)					(In thousands)
Deepwater vessels:
Anchor handling towing supply	—		—		—	6	$	169,140	$	54,205
Platform supply vessels	3	$	72,537	$	14,767	8	$	179,082	$	23,319
Replacement Fleet:
Anchor handling towing supply	—		—		—	16	$	249,578	$	102,401
Platform supply vessels	2	$	30,696	$	22,307	6	$	74,602	$	17,681
Crewboats and offshore tugs:
Crewboats – 175-foot	2	$	15,057	$	3,100	2	$	17,312	$	2,808
Crewboats – water jet	—		—		—	2	$	2,391	$	1,169
Offshore tugs	—		—		—	3	$	40,555	$	6,561
Totals	7	$	118,290	$	40,174	43	$	732,660	$	208,144

7

The table below summarizes by vessel class and vessel type the number of vessels expected to be delivered by quarter of the various vessel commitments as discussed above:

	Quarter Period Ended
Vessel class and type	12/07	03/08	06/08	09/08	12/08	Thereafter
Deepwater vessels:
Anchor handling towing supply	—	—	—	—	—	6
Platform supply vessels	1	—	—	—	1	9
Replacement Fleet:
Anchor handling towing supply	2	4	3	6	1	—
Platform supply vessels	1	1	—	1	1	4
Crewboats and offshore tugs:
Crewboats – 175-foot	2	—	—	—	—	2
Crewboats – water jet	2	—	—	—	—	—
Offshore tugs	—	—	1	—	—	2
Totals	8	5	4	7	3	23

8