welcome Tidewater conference earnings everyone Thank you, XXXX Jason. call. Good to the quarter and fourth morning,
today's offshore we're levels market offshore business, of acceptable prosper past see even definitely the market's over so without energy flow six help. our cash to get market. past transforming determined vessel We the year challenging have We in back and the over can although been that even free we improving, to so, quite months, busy the especially
Tidewater. a last are lot call the at the transformation through spoke going we I on about
culture our business and our We are infrastructure to philosophy. returns-based embrace adjusting modifying shore-based a
have in strongest and leading balance industries. challenging the position sheet We the a very
a and that customers makes and making that, a know is that and our this difference, difference, it know Tidewater in Our difference difference. industry. makes to employees committed a makes a our suppliers it know it
magnitude more than is fragmented. has today's of dialog myself. going the tell where today be I in and about discussion about on by we talk to need order call, to are the nearly the more to the transform it I the performance key of flow, Transforming difficult, There at done. go. have feel going talk needs this to and which on the at to with back least to Company's only metric to also least about challenging, but And going I'm or we free I'm highly participants open you is including that's Company then to what a to it's Tidewater, the managing because industry within industry think is to control be focus four, market. is your want a The we returns the I'm X.X% operate. region. acceptable call business industry but Transforming on industry the the XXX the main to and up cash going
works it the oilfield vessels save the as DNA The model those The to returns. to capital going is ingrained selling of the day providers. isn't the that the The E&P lethal companies of because is tale. thereby to advantageous is as and business holders Power happen. coming. industry power looking hangs levels in by model are cavalry capital shipping market destroys market The for are is hiring against vessels hiring debt vessel own The not the returns security is their has of and accomplishment. means preventing of and consolidation, carbon-friendly going many and their not event. that vessels own Everyone by the but their everyone under-utilizing in reducing a community. safety of for most Ship increases day that the that transportation, hiring vessel of freight customers the selling the goal carbon or chance own the recovering emissions vessel of them from is vessels results substantially inefficient
I geography change a scalable regional particular with will will footprint believe given the most at movement consolidation. consolidators, consolidation logistics promote cost can gravitate world, to will possible see requires the we shore-based operate to influence be leverage in vessels us to around allow eventually logistical possible presence most super of in region. that a who model the and with super consistent industry it Achieving enough happen the to to regional any lowest the able but a only
Moving options this away our business rate in day pricing from for execute model. model but globally a and for our more business logistical for result is better better provides vessels the it takes that the fewer to will employees environment, customers,
consolidation part super we you're we're the very regional left to rust. that inevitable, not if is the So of likely of with be think bucket
flow. and let's with free about So talk that, cash Tidewater
to of end cash the For in million positive cash flow. quarter by We cash -- the in ran or without and the fourth free quarter fourth significant positive the quarter. the made regards items, the negative flow million of flow free $XX the non-recurring special free of at third year XXXX, position reversed progress free generating $X business we had
for unlevered of of operating and I see Absolute are cash are proponent Our Dodd using of by improving is statements. described along free It's as free walk regions. managing we which al. we is et as through Graham special today's XXXX well mean, metric unburnished, we cash in the call items, the with in And metric the any a for compensation. how principal objective I'm we XXXX. ideas flow of using our flow to Copeland, executives as flow incentive cash financial before big for unburnished, the directors you
subtotal a vessel from to sales. new reconciliation flow free added the we before press with proceeds competes that that notice will you release So a cash
I both find valuable will flow. of evaluation amounts sustainable in cash the free think you
million investments Throughout been was I flow vessel the installing from cash want cash free layers increased management. four we're disposals, from to XXXX, we XXXX in pathway from from and the retooling core flow done work vessels dividing flow from at vessel information increased operations. and shore-based cash in system $X by to have of Significant reduced flow increased G&A, work, into reduced flow hard moving two increased describe cash our the operations. increasing categories; state-of-the-art cash
making pleased global shore-based with through through establish have not the testing we remainder recovery. scalability the I set industry look the our but Our to the objective forward platform proceed the most achieved most improvements, and was I'm consolidation, in as current we scalable objective. and We're cost-effective of done and most automated, additional to that
$XX efforts improvement our a streamline least of not XXXX, non-cash, at that organization, to cash expense G&A for difference. when an on Based Recall XXXX we the anticipate absolute some to million million. it's G&A of flow so expense compared $XX G&A be million is to $XXX
relates it done. improvement, already As this to the is work
Our on annual was normalized an fourth million, million is which $XX.X $XX.X G&A basis. quarter for the
the search process back early by it's run of our first objective the which or rate Our the meet that recruiting I CFO will after adding QX in hope looking quarter us for still should to note QX. annualized early for is even XXXX, CFO accounting likely million, conclude was position. the but ongoing. I allow $XX.X January to
In efforts offshore the have onshore, been addition busy to we fleet. our reassessing
Equipment fleet the the You being active the dispose intend will and fleet on a notice categories as that of the and anticipate to divided fleet we for balance of reclassified part future as held two classified foreseeable fleet of, the for we we into we sheet. assets Property portion The Net sale. we the
[indiscernible] the $XX.X their and vessels we to net value process of in are marked that Marking million. estimated in for assets quarter XX have value net scrapping of value selling of million. these we the realizable their of these held Assets realizable resulted sale the to $XX.X fourth assets or
result in we liquidate to Our least XXXX. flow received these a $XX assets improvement million of proceeds cash XXXX, the to which compared in will in is when intention at
charge off on In total, wrote particular in partially books was a million, the determined because constructed we that vessel Brazil, that for $X.X that results of being stages we of have million. we sold $XX.X vessels far investment. possibilities and Thus pursue also the We XXXX, $X in in impairment we on cannot for in quarter final million vessels sold. five fourth have the additional nine
our in layup. expense recall, basic of for included operating to XXXX Also oversight vessels related the in and $XX wharfage the million, security is
was as a heavy very As period we for went fleet it in spend Total prior to $XX through XXXX. fleet investments, the million. have calls, in relates drydock XXXX discussed
XXXX. in drydock we a should try cash XXXX. $XX in A in demonstrating on current XXXX points million XXXX Our the level you unusually data made flow Cash of fluctuation, year a $XX that high fleet improvement XXX the more give spent for for sense result active was drydocks in expenditures is which of full million for expectation annual a investment million, few to and vessels. for vessel of investment drydock on $XX
mentioned, million of XXX in anticipate a in for $XX As $XX $XX of XXXX fleet fleet 'XX, for I've million it's million a active and We both be will just XXXX it XXX in vessels. active vessels.
as meter vessels, market vessels an market as also market consider invested are do payback impact sides the the given we market. of other such vessels geographically overall the Modern to lot the a the in vessels vessels but on currently is other or It's the distressed, longer of vessel easy to two period up the capital, free in vessel on direct your how aspects or market, indirect a out We with deck are on vessel. to of such economic and you to flow how the same computation, reminder, keep result a market, vessels indirect remote you reactivate not when and active a many markets. other vessel from cash having it's As in but square more the has X,XXX are how to continue evaluate in in local which coin. return how a and no whether the have layup, stack the where many generation really impact
impact in on Our certainly global and is that the and minuscule vessels active keeping isolated consider geographic supply on but at that way commoditized. market impact ours market the effect there balance. on demand of impact to vessel although feels a the the That ripple it it's to critical no commoditized, slope but is is sometimes, them relatively that is a there area, on very recovery. can remaining an be perfectly is And the you're world extent all of the in the market least
is currently marginal have been we withholding to vessel on has capacity is employable. because specification been that generally shrinking, say, which size fleet lowest Our class, the category the vessel
dispose the Our intention them market to market to conditions until improve. off hold vessels, is not but of these
We this have XX vessels into in category. layup fit that today
Okay.
second year-over-year. cash finally, million, we active of So, improvements improvement back of cash flow to importantly, investments, the And are Capex flow let's operating A capex. our be core is get in $XX front is improvements We're very to most vessel us which our important, of we part business for $X XXXX difficult free in is million making have vessels. anticipated improving over an on utilization. task XXXX. to of is but which
per business, all is relative the idle approvals the similar a fully crewed a in crewing to A involved. customer. involves has aspects Improving of for by up from things operations coordinate provides utilization vessel aspects are chartering, to increase and and XX.X% our system a for is pre-hire one to of making in active to fourth profit. improve challenging in pre-tax our active in and the customer, billing most a waiting on easy active an our that Everyone to is better is is always of XX.X% reasons Occasions use been for As transparent, job down utilization everything the date. on This utilization market percentage is in reduce intensely one a information repair, reminder, increase year and active to work have time being active waiting active from focused like of utilization quarter. is together showed that operating maintenance X time utilization sure percent situations. to it because to million point third our utilization up The we increase timely, $X improve. quarter information a the activities vessel
from drydocks, on reduced So, anticipate it reduced the to approximately then improved reduced were for part improving in to least spending million from requires anticipate million expenditures improving million We are additional this we incentives, million in in compensation approximately at employee and cash take G&A. active the market. over flow given. anticipate and due positive but to of -- to it cash further anticipate getting by confident XXXX we improving that due $X $XX this sum free we due an I'm improving this disposals None alignment improving base utilization. quite very spending $XX achievable. XXXX. $XX on additional up of and dedication will It million we over None discussion, $XX anticipating proceeds XXXX of million vessel of is that improvements it is We from proper capital by $XX are flow
the fourth quarter, free horrendously and for flow added it operations, to important cash year. cash are quarter. cash heavy release, and cash table tell the disposals. can selling the press before free free positive free proceeds quarter positive from from vessel drydock positive for for positive flow flow we fourth free note before you the cash As the the And from new was are It's free in we flow flow disposals, quarter the positive cash vessels on we a to
for away was benefit the in XXXX. Incidentally, overseeing that I is from of spend period $XX proceeds vessels on the of assets, be indicated in They which anticipated of and to in million in XXXX the the is layup, the spend to increase disposals million have the in vessels in move due in $XX benefiting Brazil. reduced XXXX. of from account increase business will we these we As layup this from XXXX majority
above-average which On story fourth fourth which the rate to million and was resulted average than expense, about of operational which fuel operating nice, down slightly, to was $XX the costs $X due up, in additional up in legal Brazil is an for $X. day the spend in million consolidated quarter for quarter. a accrual expected but revenue was basis, vessel is The increase better in utilization repairs a bounced approximately which fourth down the Active and quarter well. was as maintenance,
managing $XX included approximately million related the As million $X.X is I in per to the of $XX costs in year million mentioned, fleet or layup.
as third did five down spoke, heavy million still working XXXX, margin I we first of vessel settles of scheduled drydock year, the are we one drydock We for have did we a working Again, fleet experiencing last on the them the and the in on but schedule were I $XX for of million kept of fourth in anticipate for an million quarter expense second half size I the XXXX. through in that current quarter. return anticipated I all would which of $XX XXXX. generating year. number cash average, half The practice, and million we a than first When or anticipated $XX about stack into vessels $XX is second schedule in of the quarter see drydocks and should is generating bit the we it's the than cash quarter. A heavy net $X.X down the down going in similar in Of million an in quarter, per experience, the quarter, acceptable We $XX our certainly better were anticipated. we million we per quarter vessels of drydock this better returns acceptable not bodes about a vessels. disproportionately
the the five-year are will second we getting period average. less As be than cycle, and drydock spending in by second we drydock indicated quarter XXXX guidance, the half the to where
the As indicated is $XX earlier, full-year XXXX million. expectation for I
call, are and but the Tidewater quarter's such on we last Asia. on have de-emphasizing geographically, where geographic As everywhere Brazil the been has areas, low I Southeast returns we mentioned capital, as
preferred, always locations that In work slower primary vessels like is premium addition, removed any long-term a Asia have contracts shore-based which we than because around outside with under commensurate the existing require work with are Exiting from of we far world. Brazil Southeast for our being and there infrastructure. customers must areas
take some the the of will time. rebalancing So process portfolio
is quarterly the by two levels the activity to drydock bad. during mechanical West a kept strong is market utilization flat of Africa Africa, difficulty of North and had quarter. behavior this in areas decreasing The is Average months winter the repairs the Africa year The The the was in fourth just not just a fourth world. loss and the of and quarter of of that the you wind to In the not which the can't In construction West with to due weather failures, like day XXXX This the numbers of substantial in is fuel. rates utilization contracting major and sequential calendar had year demand. areas Sea remained This was added The the fourth the a X few most quarter suffered into and fourth the other. due this costs unusually has in through tough first North Sea, projects. quarter sonder year, high softer demand one active it's a percentage facility. revenue, resulted quarters points. Nord mechanical the level by on basis Stream other conditions principally drydock an throughout of region quarter. spot failures buoyed projects,
facility location You getting get requires then often to to and drydock journey administrative into significant and parts time. have technicians days a to for repair the several
we important as Nigeria, drydock region fourth optimistic as operate West had will activity third a ventures. Africa I'm Africa see we we West joint through drydock and quarter to in the an As low-performing for significant a a is behind difficult improvement get an In quarter Tidewater. Africa, difficult us. that but and had Angola well, result, and activities due
joint venture of Our of venture the its is the partner divesting. investments that of partners and the our in non-core our is them joint Angolan one process process divesting with in many
have and we read there's our partner nothing be a about in of and press intention are, have this the operations cooperated just to may on an it You wanted doesn't mention this public It process. since divestiture process. in process the and report I to course, of the participated at time. impact will
The And good transition than even to day. XXXX. Middle quarters. three in East, higher transition utilization rate was five was entered a on in vessels this region of It had maintenance outlook added three side, bit bullish formed regions register. past the nicely, quarter, average Asia-Pacific of the bit vessels it's ground $XXX a was cost vessels been day though a active active drydock, The to and region in the quarter. Three and heavy quarter. an were up lost We the vessels the very a but I'm unusually due for on in the
quarter, The about special it region percentage Americas of vessels, another during but item rates performed Active nice. were the fourth one is regions but Overall per always was points, of day the revenue utilization was $XXX up up active is had down well note. average that on number X isolated which same day.
in On claims $X Brazil, labor accrual we that operating insignificant for believe the result more and an now in customs over some just old side, million we made costs exposure. will for individually
accrual, have slightly As of quarter. the would operating higher vessel margins for we the legal
market. tightening half in the still As African XXXX, I I West the see look of to first
what see thought the I numbers. the softer the which half on East fourth a Europe, As quarter. by I tightening last fourth in earlier. the later throughout in the earlier, quarter. the first we to be We was Middle it I better region quarter as quarter what the in in XXXX to Americas And that was first and consistent start opposed I the I region the in bit mentioned stronger in in half quarter, second the anticipating anticipate with the be of second saw reflected to anticipate that's quarter saw and Mediterranean the first
potential the and the industry's site develop we us completed of valued. we bonds to million well. to free achieved stock are consolidation, requires to dedicated and fourth quarter intention XXXX related are quarter that any that keeping that the the consent which the balance in cash and the resulted sheet principally and flow bond the on that so, in is basis relatively it. strongest certain has Doing a business positive, Tidewater appropriately loosening the as requires per $XXX financial operational stocks We a restrictions covenants in fourth
the are As go consent, we of as maturity. covenants financial a extremely these result with we comfortable through to
in $X negative the million basis by million $XXX the under face repurchased of cash on value just as interest improved $XXX face The and annual outstanding bond, is million. overall an tendered today repurchase the flow carry. of value We a result reducing so
previously, mentioned intention net altering we I low have of our As position. no debt
will additional debt sources the year, to market. opportunities facility open to seek the has backup maturity. over such we see with to that no We continue Company We on liquidity our the And will refunding concern liquidity value upon hand. accretive repurchase on develop next credit ensure to debt its cash revolving as
cash. the million of $XXX We quarter closed with
vessels $XXX bulk and refinance have but given our no August of have required under years have in are able we can debt three we capex We from easily we matures hand. no to of debt, and construction. cash Also, readily the service million which debt, on the XXXX, the now
our flow offshore in it's those low debt fewest market. return in keeping will the is capital offshore vessels, tightly drilling ensure market with based It's in fleet company or about shore-based improving in vessels most about investment cash consistent it highest things layup, predicated on are Importantly, vessels, These human the those world. global certainly the isn't and to is the the the margin not rationalizing activity levels. last while vessel capital free in keeping the the on and it's to it's required efficient but in highest least, based driving our about be Tidewater the possible, managing path further on regions on infrastructure on designing the focusing fully our recovery vessel scalable, recovery and net that
to the outbreaks potential coronavirus business. the that current want I our has on mention impacts and Finally,
the outbreak. health with We have engaged proactively been and travel consultants on international the
precautions We any potential have employees avoid to related our help obtained virus exposure.
We the highest nature to has and priority always updates continue the the business, on have on protocols Due well our to we established well-being of our safety outbreak. been safety this our monitor and communications. of employees
is through crews locations. transit our high having Our risk concern current
continue monitor to movements risk high as any identified to crew countries these travel instructed We we and companies our countries. higher-risk through avoid
with the And I for would questions. up that, open like to call
