and as happened make I I’m last that of will call to you and this Jason. since Tidewater you, be Thank am. morning, call. has positive believe as have welcome more spoke a third everyone, Good excited we lot excited change we today, XXXX the I progress and earnings conference to quarter leading
determine to recovery. remainder industry is the the lead Tidewater of through offshore the
sheet balance taking even enhance further. leading steps industry’s are which we to the have We
and capital industry structure further. and preparing to industry led we far even consolidation have We the consolidate the are thus our infrastructure,
will get to in they and improving to the industry our to use be compensate will day-rates to fundamental properly capital need we where industry back We the continue and lead to providers discipline. recycling capital
team. As streamlined previously announced, corporate recently our we management
In the corporate October. changes, also of in we announced at our office staff reductions the to at end addition made publicly management significant
organizational or in Directors operating in leading five the still corporate Company’s Managing to Directors. and enhance segments a result where changes that in These for are charter the culture will to ways the Managing report And the responsible groups support defined five at the to corporate we of primary remain function CEO. directly productivity a
to make the since ownership. redesigning management reduce been primary of is to and art the decision system. to the of merger increase the closest also year, our shore base November in One in we decisions of vessel have bureaucracy last making To implementing that state goals take to empower orders of the and and speed people end, information
believer the technology stabilization leveraging to I’m internally refer [indiscernible]. and in to and reduce strong we scalability what as to create
in the to flows and These base changes generated Tidewater keep been the the philosophy taking changes dedication across industry. This efficiency past with that focusing financial business extends sufficient creating strip aren’t and technology in management a on both had running. cash successful system. transformational utilization information price responsible to
have business. need to cash empower flow where to closest they and years the to by push industry today, industry capital and the the generated past needed to has to price and conditions respond to considerably. Over grow those or financial day-rates margins profit incentive - basic to business business the a the investments support shrunk back our positive those five years, to shrunk we change philosophy Tidewater’s be incentivize has the vessel To shrunk. taking to
changes. cultural process significant incremental transformation happen doesn’t The with small of
break to have fix it. you You it before could
bold to big you take and steps have the to is redefine culture done. have that what You
within is these As a key Company wear multiple a including hats time, limited myself. to that for agents individuals nothing the have it result, it requires done before
Along is first my I and of that in CFO, G&A search go do to is CFO process it we mentioned the for anticipate underway cost like and not by lines, conclude appropriate is the a have that to intention XXXX. it those quarter lower that although probably recruiting I the early results, will the
on said current some go for questions. these discuss on quarterly how the I approaching will operations today prepared all have remarks we this, through and market it before I Having then are our up conditions, numbers opening and
portfolio on highest is priority to today a Getting the possible key the a of operate we vessels Tidewater. return for
geographically everywhere positive decades. this been been for always have for has attribute a We and Tidewater
requires paid to frictional location have where are in to today’s move well case happening were are contracts we some out but have problem in no some the more that being of. under every and a not is geographic them has cost that market them been Vessels quickly be, real that long-term would keep and anywhere in it otherwise assets location markets. I
some the needs regional with to swapping be are an considered. of world So as reallocating players, will other But alternative portfolio region to Each of the working has out less ourselves attributes large market. in the a we time. process position desirable take of assets that a off selling
those region restrictions ultimate above Southeast less those diminished be now. day-rates are appealing, areas in has regions least as than the the vessels in Areas at and the Brazil - have but often luring but historically Other are Australia world often regions has protection for day-rates oversupply of very to such cash been appeal the the such desirable. Asia what enhanced return in due being can averages, those often the headline as headline that and well and
and customers, will So, we many on focusing of activities and capital. we that are our much returns on provide the opportunities like regions the best believe
approach We are decision service and to do disciplined vessels dry-docking the vessels and to likewise and regarding our that of taking the what with layer.
and Tidewater industry to in XXXX. included, our owners of is facing XXXX challenges the completed the dry-docks required in number of One be
vessels on dry-dock equates average require during quarter. equates Vessel fleet cost service vessels of quarter. the have to which is third XX the approaching example, dry-dock The XXX in in For per per million million, million five average on average. which X.X every major investment per or year room years, to X.X XX we year
spend the and we XXXX, over million are would million estimating not year, has paid was in in XX third This dry-docks XX on to but year-to-date million paid XX all been this paid quarter. be the
the a vessels. fleet rental XXXX for full-year XX was XXX a million on active reference of As of for cash dry-dock
vessels most year manner service. dates the vessel XXXX their to and if us and at for economic doing dry-docks of the lumpiness XXXX was Key a vessels the The justifies and of Tidewater were only first big Consequently to year five and due old going to doing in is the outlook years the delivery for ten a inspection XXXX dry-dock the are delivery. cycle big dry-dock vessel’s special investment. cost-efficient to
in not per and We have certainly and those are all fleet back down with return day I so certainty and per XX the year. X.X can intention per that approximately or that tell to or to managing is idle to whittle vessels will our vessels these layup service. you to layup million vessels dozen work going fleet vessel us cost $XXX near that
approximately keep, send to yard. them reactivate the million. is The vessels, them to Our or sell not cost to industry we intention do vessels these XX out do the recycling for is of
just continued life per of continue year not age the is costs it and the every and economic escalating reactivation day, So $XXX vessels decreases. the but to as deteriorate the remaining
longer in keeping presented that false keeping vessels vessels low-cost way the by lure of economically not hope option The they to than should. viable tends owners into are
balance paying year that and the unable vessels Focusing and X.X to will million ever long-term per future. and are for work our that on the those are than all fleet sheet work in assets global tightening benefits more us to provide today working unlikely up
market today, to owners pay of how those this real moved consider capital out there in is very other elected shipping quickly industry more throws capital in others in sectors. that were than Mariners The shortage world a The is fact vessels. the holders in shore the on, industry. human or that Mariners quickly offshore sort of XXXX Around another much have the higher is idle the for on
during global owners industry. Wage gas one levers a get the The through but today of we to force oil many significantly to in the will market the is for all the deal Mariners market industry vessel and downturn, the a which wages pressure extends downturn, use reduce within offshore future. beyond well is need
flows Mariners will result significantly not like global rates back the a a cash In wages expansion prior incremental Mariners capital vessels. industry, some XX% to to in to result, increase the rose will to attract of period XXXX in As industry. providers, Gulf incremental Mexico to U.S., crew the have regions in Mariner in because into and order fleet XXXX the layup the
remember, the you vessel reactivating, regions group. adjust you you are And Mariner entire don't adjusting for one in the for wages just the are
if industry the in providers vessels it to it by not layup drilling that it today, that is Mariner be So, the to won't unlikely increased because get were will be required back so, there, deploy to capital level absorbed is do we to just the trades. is return the wage even to
holders providers. out vessels has capital day-rates to have out get experienced holds teams vessels option is the Mariner too wages of management in protecting and predicament that what the for down fleet to been increases best the The much There on vessel through many capital pushes active too perpetually are debt. Similar to adding too past, to this and many consolidation. return
excess we can Tidewater infrastructure, remove global scalable truly solve We a creating and at rationalize G&A can industry. By the can fleet.
message fleet best and of blowtorch fleet Tidewater owners a be the consolidation capital and and Tidewater shy not way that is So to outside is and is to holders taking my my layup that, maximize investment. rationalization the the your message in will to
We have CapEx. required no
we under our investment today's vessels We no construction. Every decision economics. on have based is make
our low balance on optimizing debt noteworthy net on and our our which We continue to truly in sheet focus is position, keeping unique and our industry. work
value, a terms solicitation secured million bonds. to seen modify have You our launched XXXX that upon senior may of consent XXX existing certain we face X%
are topical required the using We XX operate lowering the about financial ability internationally, ratio. including to efficiency modifications administrative and for improving coverage asking
We step structure so our and have consent first This note facility of separate and modifications a issue of for operational the XXX on to be million to to debt revolve ability reset debts. is of X.X%. the tender condition capital strategically refinance that other several in providing position outstanding also meaningful premium addition the successful the offer a flexibility is improved a allow for our launched up to in refinance the for credit tender to the
are that indenture, the the restructuring next to to will the over statements shelf the outstanding some merger. addition the intensify the of weeks, seeking In from be to XXXX few two S-III registration warrants we S-III modification our first register in
access The to the registering be opportunistically registration customary a of equity securities self second capital increase will debt us our S-III and and flexibility efficiently universal the and statement various with providing markets. forms
steps an flexibility to to the registration being and The planning to with consolidation. the take are respect we capital taking done statements XXXX are under provide notes to industry or facilitate optimal structure
As are whole, the as entering down it year. will quarter to softer into the from step next The a we industry a step quarters, first two from quarter. be the quarter and be the fourth pertains the over third the fourth of down quarter will quarters
normal a about this more thing times activity. offshore to it limited reflects in the back the maintenance, the the getting seasonality me patterns could offshore is year. of of work slowly, tells the getting balance, operators but the that year say doing only back that level We consistent debts best of work I normal in as warmer which is to world lower of The preference throughout the required at doing the saw but the were is
utilization and Sea up market early customer XXXX. through well vessels, in that but contract In over charted the active third I XX we North the quarter Sea quarter as average did North XXXX, on from which second day-rates due second Mediterranean roll declines will November, Sea remain market the see The in Sea one there optimistic look performing XX%. our when tighten markets I into was the the help mentioned North off of I call. approaching to quarter, about remainder
during average in we region the due and Pacific an the to also the East the regions one deepwater increase saw quarter continuing from in Middle operating in increased this vessels the improve, were Asia Activities quarter. where second is day-rates to third the
customers for prepay we I continue consideration the deepwater improvement region, and high our vessels reactivate see as market an us decision contracts to vessels. but team important the been successful in for getting for its into there XXXX, go generally in day-rate long-term our is not has this dry-docking getting a which and for
West the as dry-dock XXs in activity the of operating during for would has we as that region programs the returning during region six we third which second during activity new half the quarter in were Africa region region We quarter down quarter anticipate kept to significant to XXXX low significant, increases when past fourth quarter, The in of what months. increases has the the expect second the profitability drilling the margins activity XXXX the low well anticipate for a commence. until but are set first the in
past of The the the second in nonetheless third that quarter mid-XXs, months. and the Americas utilization based the region is activity good number region that in region has which very six over another was dry-dock in stayed significant dry-docks quarters, active on
of Activity quarter we quarter the even region slight is the in Caribbean the subset a be significantly a fourth typically Americas seasonality. regional though downturn fourth expected due the to to in Southern in see improved
with two contracts had let the in six So backdrop, for that fewer second very was the those down XXXX decrease, big the off the million quarter me we from those five quarter factors over quarters. million will all operating and I in year further and see business cut few about five we quarter the have talk next Revenue third during quarter, lucrative vessels quarter. the how through XXX the rolled second that walk
tonnage over weak. still that operating during vessels market for fewer quarter, the conditions is reflects fact The the
older our off layup. contracts, rolls they going are into tonnage As
vessels beginnings We with are today offset layup. conditions the of to simultaneously in enough the market only good higher specification decline, reactivate to vessels reactivating select but are a group
to we see fourth into a pertains net it layup. the going As number similar quarter, of vessels
in XXXX allow into As will the half East the the tightening Africa second of I the that several and I half first reactivated. be of go on markets of see vessels in Middle look West XXXX, layup that into to
begin We pushing that are larger vessels, through will first my is increase as half the day-rates XXXX. again to on of particularly expectation the also trend go and we the day-rate
dropped X%. cost the vessels. into cost. vessels Vessel due and reactivation the out number layup was $XX quarter, vessels of flat by million although approximately than of average simultaneous third and vessels is Vessels layup operating essentially going of to the in This mobilization coming five of day the or just higher per
Our level off will see day next two that, the active expectation OpEx we is quarters. over per
or I to and As related million mentioned the per X.X in cost above, XX layup. million included of the fleet is approximately X.X managing million year
are include the for including So, was administrative million SAP of we It fees the severance vessel related also quarter, a implementation system. of as includes XXX,XXX number or related the the million to the big gross quarter. XX in items individuals quarter, $X.X affected for of costs a service the result, level the was the at due reflects wages General changes of to expense of the staffing XX%. benefits margin third ticket It before XX but of those and and that fourth nonrecurring. the end quarter million professional
substantial the We reduction office October. corporate did at in another force
of million $XX.X per also quarter objective $XX So, comfortable our changes rate and those third portion and fourth be second or annual make of enacted set salaries will wages well. our met. them this as numbers severance million extremely at will numbers year-end with that the XXXX run in We be quarter the in in quarter the are the a objective half me along are and
sector, norm. the reshape to is capital situation of offshore the return oversupply current an the on industry that so goal becomes acceptable and lead the Tidewater's out
is capital offshore the Tidewater for return be in on industry. Company the vision highest with vessel Our to
We new have leading and infrastructure global the industry's truly our a systems platform. scalable footprint information give us
us Our global infrastructure and financial consolidated strength, the positions scale industry on consolidate return and our incrementally low-cost grow capital. to
Tidewater sheet. balance the has industry's strongest
that to a are requires be a positive done is principally any stock-for-stock are that develop consolidation We requires us so keeping relatively potential dedicated stocks it. business cash valued. flow and basis free Doing appropriately that these to on and
million XXX with cash. quarter in the closed We
of can of the are million readily service our given debt hand. XXX XXXX, debt, the the from able easily to we August on refinance have cash matures three but and now in years We bulk which debt
cash of X% position, negative over As of our carry have result we per been gross a on debt a the balance. and incurring year
reason, this we For and intender. launched the reasons earlier, indicated the other consent
while free the designing based shore-based in our Importantly, it on scalable. fewest market, is path possible to regions on the is net and those required investment for in flow rationalizing is focusing recovery predicated managing is And investment our the generation our highest the a margin our to the about infrastructure fully It It be driving keeping it based efficient about the vessels acceptable certainly cash tightly but and is last, not in keeping layup. working is vessels. minimum. lower vessels. and debt It on least those about fleet drilling at
We capital That are the enabled a to complete, Tidewater organizational transformation requires the system. to is world. largely substantial organizational transformation bureaucracy, and Company decisiveness to are offshore structure the underway in and which by vessel new accountability the information our requires enhance return cultural which highest reduce on transforming be changes and new it improve structure,
process which be in And and the overtime modifications the sensible of can we of the significantly requires structure location are optimization through and enhanced statements. right and assets, industry. capital it the investment physical S-III indenture of of through the all is will requires It to the addressing occur which in this registrations which consolidation
the that up please questions. open you would Sheryl, for And with call
