TDW - Earnings call transcript Q2 2018

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Operator

Welcome to Tidewater’s 2018 Second Quarter Earnings Conference Call. My name is Paulette and I will be your operator for today’s call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] Please note that this conference is being recorded. the to turn Stanley. now will call Jason over I

You may begin.

Jason Stanley

I Good Paulette. period welcome XXXX. to Tidewater’s thank morning, would to your and you, Investor ended Jason Relations Director, Tidewater’s XX, you the and like for everyone Thank I Stanley, call earnings Bruce June time for Tidewater. Financial this am and and morning in Rynd; Quinn our Officer; John Operating CEO, Gorski, Lundstrom, Fanning, the Chief call interest and and Chief Counsel on With me our Jeff our President Secretary. are General our Officer; conference

the Following comments a your questions. few open call Quinn’s then formalities, over followed up be final John I financial initial will will comments his some call John we will turn provide the for for by review. to to wrap and

refer call, to materially we conference are factors. facts. Please historical available press reconciliation make document our comment call. may cause actual present may will statements by during implied our for evening’s release. Form that and the call, GAAP financial both other that of on non-GAAP the that Also certain we This website. during that There not and any is we are today’s factors included to be today’s make company’s During different performance last conference from these in forward-looking on stated GAAP most additional details of or The risks, is XX-Q non-GAAP to risk recent and measures. uncertainties comments measures future

to are deal, that, transaction will them prepared to GulfMark, will plan we the broadly. turn to of the John. will comments are the the remarks. updates our announce related our to we to call limited continuing related for while If there I With Finally, over be integration

John Rynd

thank joining and for Thank Tidewater everyone you the call. Good morning, you, Jason.

our ended June of costs quarter compensation foreign EBITDA $X.X $XX.X $XX.X revenues to of XX on or service and quarter financial proposed to will professional by the industry in our Strong $X.X few $XXX for million, execution more joint per a reflected our leading of million. minutes, approximately which we quarter-to-quarter the million of $X.X million as trends reported related quarter. loss stock-based safety in million and XXXX, and GulfMark, net and million Quinn common venture. of to all vessel discuss of the related income and For margin June In results results $X.X March Angola includes to dividend with better second similar positive vessel of utilization, team overall operating in expense, of $X.XX million exchange our active quarter the share relative loss, metrics revenues combination was contributed data.

has to contract last too it to and OSV call we generally is company continue market by the key in on quarter, As of in to for customers spending activity early positive and feel fall offshore I as budgeting the count offshore continues stages believe the service high however annual recent successfully market sheets all and higher position determine dialogue, remain as onerous capacity. highly stated the young. least respond in With earnings stressed, very are on rigs, to balance by OSVs and as access constructive, capital price in exceptions, paper Commodity we to and June ur and to which a a ongoing The backdrop results At offshore helpful costs prepared market Tidewater, the will provide recovery. and equipment, is our our and including our of business and at demonstrated awards, we overall maybe prices demand plans. months, begin through balance good are the working in been process direction be fleet and industry-wide kickoff their this point In tendering to customer challenge progress recent rig the XXXX opportunities capital trending sheet has excess rightsizing be FPSOs. limited. burdened to our OSV OSVs business manage conditions the few remains and fragmented warrant. a

operating financial broadest liquidity in is the strong. to Our leverage is footprint both business. the regards in our In position and

vessels Canada quarter-to-quarter vessel XX% Vessel spot rates June quarters. recent our operating the comparable and awards at the results market average utilization robust in of a day seasonal up in million Average Looking the Mexico Americas drove as Americas our the active by and in segment in segment. were March more was improvements quarter-to-quarter. about segment, in revenues in America as in well $X.X Gulf or Eastern Mexico segment approximately and

utilization active and vessel was up up quarter-to-quarter XX%, approximately day seven approximately percentage at rates day at $XX,XXX However, about quarter-to-quarter. average points were XX% per

outlook quarter high improved Mexico has active couple began being anticipated drilling summer the the in significant our average segment, the Sea revenue resulting million in rates Overall, Activity generally expected driver most a vessel rates. typically under and utilization as but stable near-term vessel Mexico near-term is reflecting remained of rates North Americas down utilization, be in in active the in segment to for regards in stronger with remain particular again day in the lower As utilization quarter in the season. dollars Americas the increased relatively to to and average September pressure. active stable the

be just period, the active during tell, Vessel of XX vessels day to modest the we Sea only the Sea increases about North increase rates as And the regards vessels six to September expected or the the traditional the by available Average But available should modest relative higher Northeast the reactivated September approximately we average vessels with rates should day vessel North the in Sea, per in rates limit June average large we the in quarter-to-quarter as quarter. in operating stable or active XX% active that also trough North quarter. found to June dollars the to fleet returned vessels, active region of in of September Mediterranean average Med. utilization our to quarter-to-quarter Overall, best positive. XX% relatively quarter. relatively OSV day to quarter-to-quarter the the Med up receive segment in quarter September stable part the in and average and Sea XX strong quarter-to-quarter scheduled third supply incremental XX% a that about was However, regions. Sea vessels improvement other increased up or remain relatively reasonable rates North active North plus June Utilization industry vessel January vessels fleet the i.e. in flat minus overall vessel $X,XXX consistent the in fleets again thousand average benefit day quarter are average and payers Tidewater’s the year-to-date. in the year-to-date, revenues modestly improvement in day left Sea, couple optimistic the approximately active and quarter active day relative vessel our remained Sea and active quarter. North of rates active to saw day should in and be have remain a by or X% be trend to in rates June Average In due deployment was XX% count quarter and day previously to couple from Sea quarter-to-quarter Mediterranean the the June up XX an utilization lower to of utilization through for Europe in also rates the supply. the in somewhat the stacked during vessels and count vessels offset can in quarter.

for couple of in African and quarter-to-quarter, was the segment almost reflecting But Angola utilization an XX% X rates $X,XXX operations relative Moving for average percentage of vessel Guinea. Gulf up-tick at in down points day up at average approximately stability to per quarter dollars Nigeria improvement X% day Vessel our West largely and utilization up quarter-to-quarter. around June West was the operations in rates Africa, were approximately modest and in approximately in in in million revenue quarter-to-quarter. the a

As along the we particular, June revenue rates to remain be quarter same maybe term somewhat is vessel expected September up the to more lower modestly West utilization is in Nigeria, Active the a counter-intuitively to in spot vessel outlook, quarter. September but generated bit Coast spot the African market rates tightening. the quarter-to-quarter, that relative sense to should African see than in particularly of that we the OSV have flat quarter. In general a

along the markets As rates Nigeria and vessels our revenue vessel the Coast driven in which or Angola our the excluding worse will operations in Tidewater. generally or better day near-term spot term downside likely a working for to Africa market result are on be than expected utilization upside by average and African from

elsewhere, Africa it once a that is the catalyst is acceptable rates to As and prompt to that in move current difficult historically in that movement rates happen, quickly. possible up term for begins certifications. term move an with could customers Once on in basis, a securing vessel have regulatory rates very

up per percentage in East and Asia-Pac supply dry June the was by a up of part returning large dockings rates approximately driven towing average quarter. quarter our $X quarter-to-quarter discussed work Active quarter-to-quarter approximately Middle For last X,XXX approximately operations, at investment day was day quarter-to-quarter. East to were million as Middle in X% down XX% following which at vessels due number the revenue segment, is was to XX utilization our almost points primarily

known high million average we largely remained equipment vessel quarter to day to number contracts. couple in with of stable in the down given the contracts, and Somewhat Mexico, the relatively pressure Asian tied similar a story shorter be the flat dollars term rates fleet Based and East from to upside active the of quarters. the but construction-related influx large expect in relatively of Middle utilization, in have into markets on expected relocating revenue the the should East last under Middle September a

have the we flat expect in be Our activity average remained and rest XXXX. for of vessel the Asia, that to day count relatively dates in Southeast case

proposed last in best has to market to combinations million high-quality maybe stock-based the remains our the of of on an the in rationalizing remaining quarterly and the not and the has company expense OSV remained stabilized dedicated recovery, our million financial recovery. related GulfMark below target beginning reorganization to compensation focus service our environment quarter. our million footprint, for while all June shore-based market our employees, course of operations our on safe our our position was capitalize $X.X service around and with excluding Since than G&A While of world $XX management clients completed a $XX we of professional million to was and to streamlining feel year, changed. providing $X.X a expense we and slow commitment less expense experience continue G&A

Our while to access progress recently high GulfMark superior safe to intending The agreement with accelerate is for combined company’s to fleet maintaining moderate provide and specification combine vessels, customer customers announced our goals. these towards strong operations a effective service. commitment to cost enhanced would

combined Africa will The Med, East. in and the Sea, the at announcement, will largest companies. the world, skill think have West be in fleet South, As attracted to merger of time Brazil North company that both Canada strengths markets which combined GulfMark Americas the operations company with positions we Middle the shareholders we will covers the have regions, highlighted North in the from the in the key OSV of to the

GulfMark’s improved the the utilization of our Tidewater’s in on our We needs Importantly, operating for remain this best to redeploying by also and focused global we opportunities matters based market understand suited of fleet customers. elements footprint that ensuring possible is scale America support presents fleet.

of and combination and stakeholders, all benefit will We the are Tidewater confident customers shareholders. including GulfMark employees, that

focus and industry with recovers, As the our the maintain need on proposed GulfMark that to supports we and agility goal. also combination efficiency

rationalizing reported an for have fleet and quarters, make is we several process to ongoing As we our dispositions. the continue progress with past

of combined as exposed of being continue sold sold. is We the sold scrap of years, Tidewater expect process company additional In disposed the this as XX in X the which were XX vessels, to were last vessels and are XX a year-to-date, In GulfMark. has Tidewater process of scrap. XX which at vessels XXX particular, Tidewater

prepared to vessels Our as operations team from are additional remains our stacked conditions ensuring focused we market reactivate support. fleet on

opportunities that these to position, worth fund strong and available Quinn, As the will hear out GulfMark us cash. our we combined balance we which preserve from to our existing It to future. strategically growth continue strong the maintain will enable to financial reactivations organic consider inorganic structured with in is sheet, both the enabling pointing and company you acquisition

strong our will for markets Tidewater. across competitive that position, continue a scale Geo We feel liquidity to the increased and advantage diversification be

or the to the to quite remarks, That beginning during limited to turn the my remains be call the of combined cover should performance Tidewater our vessel many just the GulfMark. environment. owners access at not in will noted I now, over case Tidewater capital for completed As current for June quarter. And Quinn financial

Quinn Fanning

morning Good John. you, everyone. Thank

As completion financial will release restructuring, earnings was accounting concurrent start results press continue highlighted to position and in fresh the XX-Q report company the operations July through and and our financial XXXX. our its of with of XX, adopted

release. operating subsequent equivalent both tables asset detail our Similarly, in and segments. As attention the periods balance sheet to will and successor class activities, data selective on to and results, report financial operation predecessor based by our press July presented operating XX, activities. as we your reporting core presented activities. Financial results XXXX based geography with evening’s will financial I or financial are five also position of is quarters last successor predecessor call straddling statistics included covering

We consolidated non-GAAP included have liquidity as measure directly financial EBITDA reconciliations also to most GAAP well the as to measures. performance comparable as and a

the the pickup Mexico quarter-over-quarter flat XX% two in edge and in the vessel and quarter. returning a million dockings along $XX,XXX Canada reported net results most share. and in Better most trends extent and per months some day rates Mediterranean for offset better a common Average driven of in West notably to dry improved active select segment Arabia that With improvement North loss to our by June XXXX at noted the markets, the or quarter, lesser includes the The of utilization we work or coast. African term share also driven rates in $X.XX to at Med active the in quarter-over-quarter. not utilization primarily in that XX% lower per ended The per vessel loss June Africa impairments the East, Eastern $X.X was to by non-cash basically that financial at active the Saudi fleet from undertaken during with Middle during vessels turning operating $XX.X for net the three the After XX, due John segment context, in pronounced Work my cents the in results million values. the completed stacked schedule and approximately lot was following rates of leading of of utilization of June reflects Now up Americas in the seasonal quarter by activity New positive $X.XX Europe, in were just a recognized Sea quarter-over-quarter, March Sea. as which day were reviews approximately were asset resulted suggest quarter. impairment related and do impairments and negative least vessels as trend view secondhand XX day the

Financial losses, generally more become in and market positive moving In reflects secondhand a be direction. in June quarter foreign $X.XX our months or also of vessel common $X.X net included related fact, share to is or seems joint for $X.X share venture. to results losses million common has of and pricing the active $X.XX million recent the in of per Angolan which equity companies unconsolidated exchange per was

received company’s from As representing $X.XX of $XX.X included Sonatide in pre-dividend press companies exceeded and balance or was at per end. in net million million noted dividends of losses $X.X our of gain which $X.X also a share equity unconsolidated of quarter million the release investment

at investment dividend in zero. Given at fact June equity carried the received we our XX, the Sonatide

from approximately $XX $X from excess our million due conversion net Angola in due XX if second USD Angola of face joint DTDW of down to which the have due amounts the due DTDW near-term, progress of was in USD and million that expected in XX June was present, $XXX due warrants to The due and do reflects on down the amounts shares in is June mix related release at Act during $XX Nigerian XX, approximately June due of liquidity was not and same approximately up noted DTDW largely in that $XX have note Sonatide shares. Jones of have Nigeria at March and sheet. experienced quarter-over-quarter. Also from million quarter. press in due in our have Jones reflecting of recent half trend was Act since venture the we to years. million stable XXXX. of due outstanding, Also balance be warrants at At $XX net collections our not to XX, continued revenue respectively million DTDW issues into approximately common balances an the earnings or from to updated Our common Sonatide and the in approximately net from The we in approximately we also relatively million included

As economic discussed Act we each a warrants on common of which exercisable to equivalent stock $X.XX to the consider be at our of call, price to of share is last common shares. a earnings acquire conference the Jones

shares XX, As weighted this Jones million. is Act of I – revenue exercising $XX.X U.S. and attention $XXX.X Returning to ended your of to which the per citizenship warrants on shares based on common June and share $XX warrants margin Act was for results, sum due reported such $X.X million highlight respectively. the loss Jones was was of that restrictions million vessel of vessel common to the in outstanding in $XX.X average call million part warrants. June XX quarter million operating outstanding operating the

as margin a percentage vessel of quarter operating improved up for XX%. vessel quarter-over-quarter X the was approximately points margin operating margin vessel As percentage $XX vessel by approximately revenue, was operating revenue Vessel quarter-over-quarter. a approximately and percentage million of

of million. for excludes EBITDA June with EBITDA impairment $XX.X consolidated $X.X compensation months XX, and quarter our XXXX charges, million of stock-based in but $X.X expense, dividend the million combination noted, $X.X finally June services of X on the related of includes million $X.X $X.X John GulfMark, income. losses, exchange million asset related foreign to was professional million proposed ended costs As Sonatide

X includes March charges, For comparison of XX, $X.X ended asset million months Page press Tables in were a $X.X stock-based net purposes, expense cash the March of million negative excludes and exchange or operating the $XX.X consolidated of of EBITDA XX but EBITDA million our compensation EBITDA impairment loss our in in on quarter losses. to foreign was provided by million. and used $X XXXX reconciling release. activities

Looking particularly number in dispositions, have at for higher, Average that connection on remarks was as June vessel the with associated period down as vessels active of otherwise earnings the to the quarter reflect average mentioned with completed prompt the conference plan during X $XX by my consideration activity the to a $XXX XX plan, quarter-over-quarter was values and XXX generated the June up day used the approximately improving XXX average industry-wide the maintained X vessels Financing operating activities emergence in our and that million and X work seasonally provided vessels several We view of With for capital fleet, activities basis. available year-to-date June vessels working XXXX. rates of vessels sustained are negative adjustments. balance regards de-levering of utilization. the certifications quarter In with higher cash markets levels, $XXX and to of financial net to The again will newly was XX month fleet the vessel net vessels period $XX currently call disposition stacked inactive given the pursuant with cash, utilization With $XX at March month in relevant is was vessels move cash or X XX, number are quarter during X in to reflecting fresh June now fleet were our March at higher potential of of during the our XX reflects and balance two end at million. improvement last in require sheet ended month exceeded which end vessels, additions reactivations. proceeds the that class current million rates paid quarter restructuring. our still on equipment. the the Cash ended today, sheet, XX top the million from XX June vessel which of period quarter-over-quarter. X stacked as primarily creditors is excluding activities was vessels, down June vessels X to quarter reorganization, accounting approximately and of Investing debt start XX cash cash number $X ended and property million. approximately paid million

commitments As vessel delivery June we we have the noted on PSV until XX, previous debt $X maturities our million, earnings XX. deepwater with At a had unfunded conference capital XXXX. on under significant ton which deadweight calls, of we construction, X,XXX July approximately are no of satisfied final

and equipment, less June and carrying approximately X,XXX $X.X have XX XX XX to an With reflects $X.X the Looking On at additional on per long-term average equates $XXX our stack active ship. million that with primarily average at $X.X of value assets, vessels carrying at approximately a and average was is million brake carrying net owned old of capacity value of to at million which approximately our old horsepower average, per data than are million. which vessel. properties an those XX cargo the AHTS was ships those deepwater years XX XXX of XX carrying approximately million. $X.X X,XXX XX tons equity the value generating approximately and approximately common costs June years $X.X vessels we are XX carrying activities. position Shareholders less at believe replacement $X both $X.X strong, $XX.XX our are liquidity is low, June significantly share is values or our price Jones sum, obviously be discount at book to value aggregate standalone operating last we on and turn value closing will outstanding. market the we secured both and to John. our modest of our assets Based and positive can of we In our than Act million. combination $XX.XX, evening with none related currently leverage the per proposed catches value for of I we in will ship less with that warrants approximately believe the about current – PSVs value and further X note back call And points trade our XX EBITDA equity, of deadweight XX billion that GulfMark. and million was per which I of approximately from vessels believe carrying carried than through be cash over XX,XXX are

John Rynd

Thanks Quinn.

have As awards signs from with are contract the I new mentioned commodity we optimism encouraged of recovery are that improving our prices increased reflected which market by are in customers. we and hearing

XXXX are continue positive at rates. sport rationalization and higher these utilization OSV significant to of global indicators, beyond While improvements in day to and further look average fleet we demand and the for

have seem ensuring or for markets of We footprint have an recently recovery sheet inevitable energy we such be prosper right balance and that operating combined equally several announcing position service industry down company and that including to inevitable right slowly taken traction the can weather we that order stronger industry the global to markets. the cost during getting most GulfMark steps better the both also in and reducing combine our some the to plans with

quickly on leverage on a will combination will and shareholders. And I competitively on create be you to for and GulfMark plans line confident the today. realize liquidity over Paulette, our the value and working that position. our fleet, strong can and coming the by continue open we to be expected to build low with maintaining to strengths, these for for the global respective strengths structure significant competitive call together is long-term Our months footprint fully cost that companies Thank focused near-term financial and integrate characterized the and teams our us to now joining the operating the am formalize objectives synergies questions. profile

Operator

you. Thank

We the Please begin [Operator Platou. go And question Turner now Clarksons ahead. Instructions] first Holm question-and-answer comes our from from will session.

Turner Holm

morning good Hey, gentlemen.

John Rynd

doing? are How you

Turner Holm

well. doing am I Yes.

that look which about your rates the talked have So utilization John highest you guess prepared to I been as do rates, you proxy numbers, remarks and historically higher that able the for prompt been of availability close at at you from that what that quarters you lever XX% the driven think of industry, kind day measure in look it’s fair prompt to that kind is up active of the it being that do I vessels to a jumping availability day by is, fair is pull of are how since getting XXXX, a perspective? on XX% is your

John Rynd

think or market different, all about have I no, are in. on you are it They think answer. we depends it’s globally what yes I cannot so one

the So I in we think in oversupplied. market East prepared in others woefully with tightness the our we influx Middle do like Asian the excess certain have of geo-markets, and remarks our still see some the capacity is mentioned of Asian tonnage

potential markets where utilization in our some prompt certain as have there we power needs it is to just we So and of pricing think availability do be.

Quinn Fanning

that the term semi-perverse point, direction. for think competitors is amongst market provides think rates we even that fact financial be is take them spot despite Turner, I trending right in a distress the incentive our lot a below another the of may that rates to

there So, one better that creation. customer our up, focused service they of I are on obviously, value is think we on the if as unless seeing than some more is are drives factors consensus tomorrow, debt of in are going but today and competitors what lock limited if are relationship to are that it’s that that’s view going incentive, we a rates driven to rates issue be

Turner Holm

that, Thanks Okay. for Quinn.

there that’s books? where in compared looks? asset and is that out in value it’s they something can You mentioned kind on that context way higher of thought books to asset probably transaction you the your the of you any you also vessels of underlying you prepared touched what than do it classes value I that, Tidewater was there remarks, way your different assets and some to are get for a on is is market where the about interesting or compare think where an in frame probably Is the think we there you secondhand

John Rynd

I again, value. that vessel provide in couple second current both and of relative to where thought carry and into is market did the pricing. the I like you direction least right we a moving to at examples could the regards translate in Well, try vessels and depth market think and people you I

As like activity, a X,XXX its market in support kind would a sell a you of new vessels, where you into sense X,XXX the if Xx below trend clearly or million you that, average, obviously significant are but think at in desirous vessel it’s in $X.X occasionally of versus where value can be I sense secondhand what vessel premium. what carrying of stacked and people of vessels a in we think of most say at Xx dollars I that example but in the ship average. one is drilling examples non-class terms mentioned AHTS up my couple low those pricing at decide of lost at we of a Xx XXs, it’s deepwater but construction new while our are of I to of average our scrap a people it’s to that carrying the on million. to carry equipment, that look ton, probably give market, should vessels, most PSVs probably to that’s that remarks Obviously, for jack-ups that point whether valued to carrying a high-teens expected I the would kind in we and the provide I values is prepared particularly my or obviously Chevy-Tahoe-type secondhand the vessel we deadweight significantly still relatively the is or market so And is

ahead. go Paulette Sorry,

Operator

And comes Please Ceki our next from Medina Asset. go question Southpaw from ahead.

John Rynd

Ceki. Hello,

Ceki Medina

there Thank you Congratulations. Hi much. morning. very good and quarter. Good

John Rynd

Thank you.

Ceki Medina

end. my Norwegian see on the questions few you difference the A between One, UK do a and markets?

John Rynd

Yes, we do.

it’s to a a think I be in so capacity, tends I little sector equipment oversupplied. Norwegian providers market the the tighter UK the band garner it most think little on the to is of tends more

key got Norway, changed contract to have term a strategy you spot. historically has method course, contracting Of their in customer, go from one on who

UK. the little also is that it’s higher yes in So, – Norway cost and

Ceki Medina

it. Got

Quinn buyer the activity the color of you about market vessels, transactions, Okay. in see see some of was are seller do interest, AMD you will be you just more vessels, you type more any at of And the any for do great? or value color give seeing talking the can

Quinn Fanning

examples value I active spent the give buying and couldn’t what did other participants North onesies standard you we and in trends are but couple of in Sea than individual transact. to in have elsewhere, we vessel but from sort people of of secondhand is we around see the transactions obviously you the perspective who in market of chatter disposition terms to Yes, where terms generally obviously twosies public prepared us, the hear are certainly around a a relevant are

of PSV has the we that deepwater transactions specific of high-teen it. that handle are on we with dollar probably fact the saw there that deepwater operational has aware with two believe that PSV and a to of we million think so investment, I I U.S. a point some have that’s some data the familiarity incremental market a be is couple

I transaction. market I – for Todd months paid and is today. But transaction one have to they a of good is don’t I the ago kudos because think very somewhat done Hornbeck that what got was the abhorrent got they that’s think value a couple what think that

Operator

Our from from next question Please Gibney ahead. One. comes Capital Joe go

Joe Gibney

morning Good guys. Thanks.

John Rynd

Good morning.

Joe Gibney

to flat, that a color with on Mexico a you of regional worldwide a forward fleet, the go just I question term provided. you and down bit flat had appreciate I am referenced basis is morning. higher the a rates, quarter-over-quarter slightly vessel flat, little basis? average is that revenues quarter-over-quarter, all view net so your lower of regionally, up kind maybe rates and Africa some a of are utilization Med this Was are little generally the Asia-Pac bit on a down, where quarter-over-quarter slightly Good to Americas your worldwide of flat for I you just to view ascertain sort maybe triangulating to up, of trying sort

Quinn Fanning

is I give to didn’t revenue consolidated have a are It’s on otherwise pulling a John or is reason question tried and tried view still or there an pieces that excellent couple we there of from perspective to out, perspective, would or utilization negatively. a Saudi trending moving the and we I from Mexico that trend and we are not say markets point a perspective but demand rate a where necessarily a from see and to should

things we a million equal consolidated bucks being that of taken market. that and a revenue negative all quarter-to-quarter have So vessel couple be down will per

got projects it African a a flat relatively African the I from good I guess upon down, is up to dynamic Sea hand the you on of along a momentum quarter-over-quarter to on North Sea extended involved but very On where and say a perspective based consolidated in Coast. the drilling results. supply-demand depending with positive the in flat couple ability could modestly, would have utilization and other the seems in specific the be be rates would rates get and to basis that rates on customer’s least were market see they at so we the North modestly Coast there

that today is [ph]. we certainly year guess on projects up. but of up that pretty down our dramatically we on pretty items or quarter-over-quarter have It’s do of have revenue four I could visibility a that is kind were to in or end going a give through modestly to today because perspective good view being water trend, can So we the we decent contract be dramatically and the know of around unknowns flat and know not we also that three what our modest visibility cover our cooler point that kind bias result known, a to to us negative

Joe Gibney

get thinking but Mexico we pieces market there, some help moving all maybe just Mexico the appreciate required are for, and waiting is of to I deepwater us a color a just that Gulf it of us we little and the as of around to what into pertain moving Mexico, certainly maybe get the Americans little some there give about maybe maybe Any tendering seasonally more understand XQ, dynamics moving that perspective understood. side maybe thoughts it? bit tightening Okay, off on pickup as on the some of outside

John Rynd

need well Thank Pemex the guidance as around going again, their the rates move-in the were on condition there. It’s you, commodity in get chunk lower wells. Mexico. for OSV to IOCs price And the revenue and re-tendered side down active. But Pemex to to world think deepwater backdrop the of as a We the their given be and our fleet. budgeting those strong Joe. the the for big down, process see hence really IOC market start we also helps I to drill changer

get little of going that’s help of at a more combination at it’s think healthy. both to to kind I both that the

Quinn Fanning

has be we a and deepwater Yes. obviously government it rightist than the to situation long-term is story are other Mexico of than to leftist so bad good the the we IOC they government. the and impact Chief good it’s authorization Pemex re-tendering and of that right have terms we The with probably to with things in hand which last leftist least from but more is will. in saying end Pemex stronger exercise through pricing, has CPU government, political months in better regards, would budget that have. hope going news, least But the news of the Pemex a changed hasn’t year But with that but actually for drilling position probably see got at have couple participation, probably certainly a some commitment seem at in materialized the to

Operator

closing I Jason call we Stanley back remarks. to the And turn are showing questions. no will for now further

Jason Stanley

your quarter. interest second Tidewater. Paulette. time conference you, you. call Thank This today’s again Thanks in Thank earnings for and will conclude everybody for

Operator

today’s Thank you. and you you this Thank participating concludes conference. for may gentlemen, and now Ladies disconnect.

Jason Stanley	Director, Investor Relations
John Rynd	President and Chief Executive Officer
Quinn Fanning	Chief Financial Officer
Jeff Gorski	Chief Operating Officer
Bruce Lundstrom	General Counsel and Secretary
Turner Holm	Clarksons Platou
Ceki Medina	Southpaw Asset
Joe Gibney	Capital One

Tidewater (TDW) 14 Aug 182018 Q2 Earnings call transcript