Tidewater (TDW) 8-K Tidewater Reports Third Quarter Results For Fiscal 2009

Exhibit 99.1

Tidewater Reports Third Quarter Results For Fiscal 2009

NEW ORLEANS—January 28, 2009—Tidewater Inc. (NYSE:TDW) announced today third quarter net earnings for the period ended December 31, 2008, of $117.0 million, or $2.28 per common share, on revenues of $362.3 million. For the same quarter last year, net earnings were $89.4 million, or $1.66 per common share, on revenues of $314.2 million. The immediately preceding quarter ended September 30, 2008, had net earnings of $95.4 million, or $1.85 per common share, on revenues of $346.8 million.

As previously announced, Tidewater will hold a conference call to discuss December quarterly earnings on Wednesday, January 28, 2009, 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 12:00 p.m. CST on January 28, 2009, and will continue until 11:59 p.m. CST on January 30, 2009. 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 80251109.

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 28, 2009.

Tidewater Inc. owns 431 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, Executive Vice President and Chief Investor Relations Officer

504-566-4506

SOURCE: Tidewater Inc.

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, 2008		March 31, 2008
ASSETS
Current assets:
Cash and cash equivalents	$	201,898	270,205
Trade and other receivables, net		331,408	308,813
Marine operating supplies		51,104	46,369
Other current assets		8,398	5,208
Total current assets		592,808	630,595
Investments in, at equity, and advances to unconsolidated companies		33,177	27,433
Properties and equipment:
Vessels and related equipment		3,170,546	2,867,391
Other properties and equipment		83,014	82,357
		3,253,560	2,949,748
Less accumulated depreciation and amortization		1,308,312	1,270,710
Net properties and equipment		1,945,248	1,679,038
Goodwill		328,754	328,754
Other assets		70,520	85,960
Total assets	$	2,970,507	2,751,780
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current maturities on capitalized lease obligations		—	10,059
Accounts payable		81,517	93,147
Accrued expenses		64,700	54,497
Accrued property and liability losses		5,968	6,271
Other current liabilities		46,467	34,930
Total current liabilities		198,652	198,904
Long-term debt		300,000	300,000
Deferred income taxes		199,036	189,605
Accrued property and liability losses		8,853	12,530
Other liabilities and deferred credits		120,138	120,657
Commitment and contingencies (Note 6)
Stockholders’ equity:
Common stock of $.10 par value, 125,000,000 shares authorized, issued 51,538,414 shares at December and 52,318,806 shares at March		5,154	5,232
Other stockholders’ equity		2,138,674	1,924,852
Total stockholders’ equity		2,143,828	1,930,084
Total liabilities and stockholders’ equity	$	2,970,507	2,751,780

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,
	2008			2007		2008		2007
Revenues:
Vessel revenues	$	349,181		310,670		1,022,189		900,929
Other marine revenues		13,154		3,545		27,029		37,814
		362,335		314,215		1,049,218		938,743
Costs and expenses:
Vessel operating costs		161,320		148,731		513,419		429,578
Costs of other marine revenues		11,347		1,747		23,091		32,979
Depreciation and amortization		32,173		31,123		93,451		89,156
General and administrative		31,669		31,112		102,092		93,304
Gain on sales of assets		(4,760	)	(660	)	(20,998	)	(9,692	)
		231,749		212,053		711,055		635,325
		130,586		102,162		338,163		303,418
Other income (expenses):
Foreign exchange gain (loss)		3,396		(159	)	4,693		(543	)
Equity in net earnings of unconsolidated companies		4,079		3,141		12,073		10,252
Interest income and other, net		1,372		4,077		4,696		13,779
Interest and other debt costs		(77	)	(1,535	)	(505	)	(5,713	)
		8,770		5,524		20,957		17,775
Earnings before income taxes		139,356		107,686		359,120		321,193
Income taxes		22,391		18,316		61,948		57,815
Net earnings	$	116,965		89,370		297,172		263,378
Basic earnings per common share	$	2.28		1.67		5.79		4.80
Diluted earnings per common share	$	2.28		1.66		5.76		4.76
Weighted average common shares outstanding		51,242,848		53,498,846		51,344,835		54,896,999
Incremental common shares from stock options		74,288		315,409		202,993		403,158
Adjusted weighted average common shares		51,317,136		53,814,255		51,547,828		55,300,157
Cash dividends declared per common share	$	0.25		0.15		0.75		0.45

3

TIDEWATER INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	Nine Months Ended December 31,
	2008			2007
Operating activities:
Net earnings	$	297,172		263,378
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		93,451		89,156
Provision for deferred income taxes		7,876		3,018
Gain on sales of assets		(20,998	)	(9,692	)
Equity in earnings of unconsolidated companies, net of dividends		(6,004	)	(5,840	)
Compensation expense - stock-based		8,410		8,714
Excess tax liability (benefit) on stock options exercised		843		(4,335	)
Changes in assets and liabilities, net:
Trade and other receivables		(17,545	)	(33,784	)
Marine operating supplies		(4,735	)	697
Other current assets		(3,190	)	(826	)
Accounts payable		(12,891	)	3,908
Accrued expenses		10,203		15,848
Accrued property and liability losses		(304	)	(232	)
Other current liabilities		11,470		19,699
Other, net		4,748		3,367
Net cash provided by operating activities		368,506		353,076
Cash flows from investing activities:
Proceeds from sales of assets		30,459		61,201
Additions to properties and equipment		(368,706	)	(291,709	)
Other		260		—
Net cash used in investing activities		(337,987	)	(230,508	)
Cash flows from financing activities:
Principal payments on capitalized lease obligations		(10,059	)	(19,565	)
Proceeds from exercise of stock options		4,346		43,580
Stock repurchases		(53,634	)	(291,147	)
Cash dividends		(38,636	)	(24,975	)
Excess tax (liability) benefit on stock options exercised		(843	)	4,335
Net cash used in financing activities		(98,826	)	(287,772	)
Net change in cash and cash equivalents		(68,307	)	(165,204	)
Cash and cash equivalents at beginning of period		270,205		393,806
Cash and cash equivalents at end of period	$	201,898		228,602
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest	$	7,194		9,791
Income taxes	$	44,389		41,962
Non-cash financing activities:
Capitalized leases	$	—		33,876

4

The company’s revenues and operating costs and its related percentage of total revenue for the quarters and nine-month periods ended December 31, 2008 and 2007, and for the quarter ended September 30, 2008, were as follows:

	Quarter Ended December 31,							Nine Months Ended December 31,						Quarter Ended September 30,
(In thousands)	2008		%		2007	%		2008	%		2007	%		2008	%
Revenues:
Vessel revenues:
United States	$	37,112	10	%	36,702	12	%	117,216	11	%	122,957	13	%	40,002	12	%
International		312,069	86	%	273,968	87	%	904,973	86	%	777,972	83	%	304,635	88	%
		349,181	96	%	310,670	99	%	1,022,189	97	%	900,929	96	%	344,637	99	%
Other marine revenues		13,154	4	%	3,545	1	%	27,029	3	%	37,814	4	%	2,192	1	%
	$	362,335	100	%	314,215	100	%	1,049,218	100	%	938,743	100	%	346,829	100	%
Operating costs:
Vessel operating costs:
Crew costs	$	89,226	25	%	78,749	25	%	274,464	26	%	231,688	25	%	92,086	27	%
Repair and maintenance		28,988	8	%	28,272	9	%	97,538	9	%	78,232	8	%	32,702	9	%
Insurance and loss reserves		889	<1	%	7,548	2	%	11,970	1	%	18,125	2	%	5,608	2	%
Fuel, lube and supplies		16,341	5	%	12,713	4	%	50,116	5	%	36,198	4	%	18,609	5	%
Vessel operating leases		1,749	<1	%	1,308	<1	%	5,247	1	%	3,039	<1	%	1,749	1	%
Other		24,127	7	%	20,141	6	%	74,084	7	%	62,296	7	%	24,617	7	%
		161,320	45	%	148,731	47	%	513,419	49	%	429,578	46	%	175,371	51	%
Costs of other marine revenues		11,347	3	%	1,747	1	%	23,091	2	%	32,979	4	%	1,315	<1	%
	$	172,667	48	%	150,478	48	%	536,510	51	%	462,557	49	%	176,686	51	%

The company’s vessel operating profit and other components of earnings before income taxes and its related percentage of total revenue for the quarters and nine-month periods ended December 31, 2008 and 2007, and for the quarter ended September 30, 2008, were as follows:

	Quarter Ended December 31,									Nine Months Ended December 31,								Quarter Ended September 30,
(In thousands)	2008			%		2007		%		2008		%		2007		%		2008		%
Marine operating profit:
Vessel activity:
United States	$	11,201		3	%	2,497		1	%	31,484		3	%	22,677		2	%	10,994		3	%
International		125,733		35	%	107,138		34	%	320,081		31	%	297,818		32	%	107,086		31	%
		136,934		38	%	109,635		35	%	351,565		34	%	320,495		34	%	118,080		34	%
Gain on sales of assets		4,760		1	%	660		<1	%	20,998		2	%	9,692		1	%	5,851		2	%
Other marine services		1,552		<1	%	1,681		1	%	3,440		<1	%	4,459		<1	%	784		<1	%
Operating profit		143,246		40	%	111,976		36	%	376,003		36	%	334,646		36	%	124,715		36	%
Equity in net earnings of unconsolidated companies		4,079		1	%	3,141		1	%	12,073		1	%	10,252		1	%	3,798		1	%
Interest and other debt costs		(77	)	(<1	)%	(1,535	)	(<1	)%	(505	)	(<1	)%	(5,713	)	(1	)%	(108	)	(<1	)%
Corporate G&A		(7,805	)	(2	)%	(9,417	)	(3	)%	(29,151	)	(3	)%	(30,418	)	(3	)%	(10,778	)	(3	)%
Other income		(87	)	(<1	)%	3,521		1	%	700		<1	%	12,426		1	%	(3	)	(<1	)%
Earnings before income taxes	$	139,356		38	%	107,686		34	%	359,120		34	%	321,193		34	%	117,624		34	%

5

The company’s vessel utilization percentages and average day rates by vessel class and in total for the quarters and the nine-month periods ended December 31, 2008 and 2007, and the quarter ended September 30, 2008, were as follows:

	Quarter Ended December 31,				Nine Months Ended December 31,		Quarter Ended September 30,
	2008			2007	2008	2007	2008
UTILIZATION:
United States-based fleet:
Deepwater vessels		96.7	%	90.5	96.4	92.3	98.0
Towing-supply/supply		49.0		46.1	49.0	54.8	48.0
Crew/utility		84.2		80.9	78.6	85.8	75.5
Total		62.4	%	60.9	62.3	66.8	61.4
International-based fleet:
Deepwater vessels		85.9	%	91.4	85.1	93.2	85.8
Towing-supply/supply		76.0		79.2	76.3	77.9	75.7
Crew/utility		75.5		84.8	80.3	86.6	79.5
Offshore tugs		65.2		54.7	59.4	59.3	60.4
Other		95.3		54.8	58.3	52.6	59.0
Total		76.0	%	78.5	76.1	78.6	75.8
Worldwide fleet:
Deepwater vessels		87.5	%	91.2	87.1	93.0	88.0
Towing-supply/supply		72.7		74.8	72.8	74.6	72.2
Crew/utility		76.6		84.2	80.1	86.5	78.9
Offshore tugs		65.2		54.7	59.4	59.3	60.4
Other		95.3		54.8	58.3	52.6	59.0
Total		74.4	%	76.2	74.4	77.0	74.0
AVERAGE VESSEL DAY RATES:
United States-based fleet:
Deepwater vessels	$	23,961		23,256	24,605	23,342	25,233
Towing-supply/supply		13,947		10,399	12,792	11,499	12,867
Crew/utility		5,591		6,093	5,887	6,122	6,017
Total	$	13,520		11,759	13,275	12,013	13,510
International-based fleet:
Deepwater vessels	$	26,590		24,980	26,088	23,516	26,831
Towing-supply/supply		12,745		10,455	12,257	10,014	12,375
Crew/utility		5,154		4,661	5,097	4,636	5,184
Offshore tugs		8,149		7,092	8,453	6,875	8,302
Other		9,041		5,672	9,842	5,282	10,597
Total	$	12,308		10,369	11,857	9,900	12,048
Worldwide fleet:
Deepwater vessels	$	26,151		24,612	25,793	23,483	26,517
Towing-supply/supply		12,845		10,451	12,303	10,166	12,416
Crew/utility		5,215		4,884	5,209	4,864	5,305
Offshore tugs		8,149		7,092	8,453	6,875	8,302
Other		9,041		5,672	9,842	5,282	10,597
Total	$	12,427		10,515	12,004	10,143	12,201

6

The company’s average number of vessels by class and geographic distribution for the quarters and the nine-month periods ended December 31, 2008 and 2007, and for the quarter ended September 30, 2008, were as follows:

	Quarter Ended December 31,		Nine Months Ended December 31,		Quarter Ended September 30,
	2008	2007	2008	2007	2008
United States-based fleet:
Deepwater vessels	6	8	7	7	7
Towing-supply/supply	32	34	33	36	33
Crew/utility	10	14	12	13	13
Total	48	56	52	56	53
International-based fleet:
Deepwater vessels	33	30	32	30	32
Towing-supply/supply	224	225	225	221	224
Crew/utility	72	69	71	71	70
Offshore tugs	32	37	34	37	33
Other	2	5	3	5	3
Total	363	366	365	364	362
Owned or chartered vessels included in marine revenues	411	422	417	420	415
Vessels withdrawn from service	12	22	16	24	16
Joint-venture and other	13	14	14	14	14
Total	436	458	447	458	445

The table below summarizes the company’s vessel commitments by vessel class and type as of December 31, 2008:

	U. S. Built					International Built
Vessel class and type	Number of Vessels	Total Cost Commitment		Expended Through 12/31/08		Number of Vessels	Total Cost Commitment		Expended Through 12/31/08
		(In thousands)					(In thousands)
Deepwater vessels:
Anchor handling towing supply	—		—		—	6	$	174,729	$	98,807
Platform supply vessels	2	$	64,897	$	25,942	20	$	513,301	$	152,983
Replacement Fleet:
Anchor handling towing supply	—		—		—	15	$	242,447	$	80,389
Platform supply vessels	—		—		—	5	$	61,995	$	28,529
Crewboats and offshore tugs:
Crewboats	—		—		—	6	$	25,042	$	14,576
Offshore tugs	—		—		—	2	$	28,251	$	17,810
Totals	2	$	64,897	$	25,942	54	$	1,045,765	$	393,094

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

	Quarter Period Ended
Vessel class and type	03/09	06/09	09/09	12/09	03/10	Thereafter
Deepwater vessels:
Anchor handling towing supply	—	1	1	1	1	2
Platform supply vessels	3	2	3	1	1	12
Replacement Fleet:
Anchor handling towing supply	5	1	1	2	—	6
Platform supply vessels	1	1	—	2	1	—
Crewboats and offshore tugs:
Crewboats	2	2	2	—	—	—
Offshore tugs	—	—	2	—	—	—
Totals	11	7	9	6	3	20

7