Tidewater’s observations the me both consolidated before XXXX the segments start in employee discuss latest addressing Jason. response for sharing pandemic earnings you, result off as our more then then Thank morning a seeing some operating we’re Allow level. and operational welcome XXXX, the our detail. COVID-XX of first everyone Good to at pandemic and our outlook and the results reviewing ongoing quarterly Tidewater macro I’ll the and conference call. to quarter by of
wellbeing nature our and on emergency XXXX has been call. of well noted the protocols fourth have our communications. always safety we I and Last highest emphasized of the on quarter business, our and to priority our we safety spoke established employees due that
circumstances the has progressed and to entire professionalism aboard proud I’m the dedication the both both Tidewater demonstrated those team onshore. at to As to fleet current have utmost at share our employees hand office the pandemic state, and sheltered that task
they one healthy. further transmission distancing, remote have clients safety health their become efforts the new I collectively part the remain norm virus. employees and customers, together and we and of everyone as every do with rollout protocols for working thank Social to of working families the engage the strive to and their eliminate their our the and ensure to of in
of Beyond made at internationally number when vessels. at temporary changes disembarking even our XX have typically we be impacts allowed restrictions an in for operational where accommodation employees, home a to direct increase Travel due embarking and challenging. for to have days both crews quarantined much pandemic. all or requirement more cost the from seen experienced crew We’ve
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rough to magnitude of over the in calls, drydocking. went that Chasing through estimates. of many XXX And begin to number but another perfection anticipate another may recall our activity just demand, XX% we vessel seeing. their that’s from global is to So fool’s we’re in vessels order of the XX% XXX that’s year, these errand you vessels previous to excess next
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in no What were was current five-year previous pullback few time day by at that contracts contracts non-cancellable of rates is summer problematic even their unpleasantness were non-cancellable rats. cut there non-cancellable began than that contracts the XXXX Last very this makes and are more that in buffered peak. when circumstances at the high XXXX some
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not The going enough didn’t times, us. vessels we’re specification were capacity expensive that, capacity while and During coat the marginal fleet but next of these put you for objective these that in this have deteriorating paying to scrap more short targeted full, they’re to wish vessels to not toss. markets, tossed a primer. will to that prices scrap. is overboard their are layup do layup. perhaps to you for year related vessels premium yard. down someone on still trying secondary and we’re frankly sense, world My you’ve into equipped by up There’s time are The recycling less doesn’t make in sell locations are Those yards the all quite to vessels economical layup that it, that
through stop the We earlier. steel high world Get doesn’t is scrapping scrap divesting will carrying specification and make. out what grading have another by more owners past out discussing prices scrap the for and done be holding already going ship deals This are I more back even need fleet specification Prices in mistake much and fleet getting But else idle as aggressive up we tonnage. today. goes also for been anyone vessels. was scrapping than higher is lower and low average than This the the to we’re there. aggressive
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$XX vessels vessels cash million $XX from generating that $XX.X of disposals. disposals million from quarter. sold the We XXXX. amount. in in still to more generated will We million vessel anticipate XXXX of first likely be We to cash But anticipate generating in reach
this notice that quarter category. available $XX sale sale will through making first for the we we second reality will held million by the move go a towards You value reflect and in down asset as be vessel we new for will determination fleet of quarter, the of wrote to which
in back related demand that time million On in $X terminations call, backlog we our for in has because in approximately effects and million to of XXXX vessels work reduced delays. reduction higher are reduced CapEx virus contract vessels backlog They’re resulted of driven, billion the reductions XXXX the at shutdown from since of shipyards. backlog getting oil from on price fourth containment $XX announced early $XXX in delays quarter
million at $XXX up summed XXXX So revenue backlog $XXX the remainder first the for deducting and of quarter that million. of leaves
year cause shut-ins support additional stable Our cancellations platforms although those smaller but vessel see. than doing the remainder is backlog we comes of primary spot of the previously risk The relatively remain all production a oversupply XXXX from of stated from revenue vessels worsen. expected markets come anticipate for of typically to work, production drilling we this for will market our part significantly to offshore may so oil support would has as the disappeared
anticipate we revenue work. a million in XXXX, drydock cancellations, loss the revenues in revenue market approximately XXXX of slip $XX With that million delays profit. into $XX told, of $XX $X approximately that All spot of $XXX million million and million operating in elimination
we’re addition, million In associated additional those at vessels deactivating looking off higher layup of with approximately coming $XX cost cost. and
is the the associated shore the cost On shrinking the frictional pandemic based cost driven with side, that and inefficiencies.
that, approximately be cash remainder That’s than costs million anticipated for those of of less year. we’ll in beginning Offsetting to liquidation. anticipate we be and $X cash the we in $XX the spending see in million. $XX million estimating We’re net impact deep at additional XXXX. $XX the $XX million Accordingly, as freeze I less flow a free the working on capital in million of drydocks XXXX
of of million revenue layup $XXX is XX%, from of the frictional $XXX summary that on options in $XX you’re At down million million to we million first in with $XXX very and existing of for contracts. gross Take $XXX margin approximately based quarter, backlog the vessels million pandemic recognized the from and The at a $XX to a costs million. and of full and anticipating low core booked $X operations. a the $XXX revenue anticipated year are million into inefficiencies XXXX, going million so
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interest and numbers should We who [indiscernible]. free expense net those cash you of you, $XX of include also have $XX million those of million in flow for payments determining principle think
to do different to do drydocks. have these to So what have we meet estimates? doing stop We
We have and to quickly vessels. idle layup de-crew
all we We have from companies collect us to sell is achievable. to from multinationals what oil have large and due and vessels, national
estimates. there Of to are risks course these
I risk. through what let see So bigger me walk you as the
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Our customers to prices cost downward But pressure on cannot appeared regardless. supply savings these from come their time. this continues that understand chain
in of all absence We any and of revenue spot million estimated real along XXXX our have into cancellation. decrease vessel $XXX with the this market factored
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during we cost everything an time doing did with lever and all other excellent anticipate the XXXX in resulted on wave be threshold comfortable not in in know based these, believe to typical now. have enormous until activity and Shipping factored we of estimate $XX And issue. we the drydock that with the Stopping have authorities this we’re There may this XXXX but XXXX million job we pulled of industry on calls shipping Chamber drydocks from and is an times as is on we on this in I OSV like discussed maintenance deferred note, do today. International period companies a previous that working additional of costs that
cycle again. will, we The amplified here drydocks but drydocks. can but delay stop can’t are this, and we We we build
quickly later to $XX breaks like was on in doesn’t during all work literally drydocks yards pieces stop a according savings boats as that related on vessels a to first virus on XXXX drydock vehicle. and that years. We is are catch the are all $XX of The figuratively pieces pieces the and travel the now or plan. location breaks are it’s but XXXX in are achievable. as But are get you restrictions. road We expect to the in the would budget in We’ve which spent complete a our in spend will people million in the to million we up boat. technicians from It can’t got as yards look quarter bit
second drydock $X comes third in as in spending million Accordingly, and the anticipate this of million of spend the and We this we end cost from the XXXX an deferral drydock again comfortable to drydock our work savings $XX another anticipated no quarter estimate. and feel of fourth we quarters. in of
natural decrease feel decrease the not million is collectability pay months in activity. past for the be the our liquidation $XX balance from and We when six been and the of the we are our the the correcting comfortable through will super accounts concerned accounts and this The timely. six in and outstanding [indiscernible] anticipate I industries go we companies. way that achieving substantial will past over of the of in dated of But receivables pay significantly that national with over the with liquidation XXXX. long majority currently majors balance of our building oil remainder receivables have of capital as build the Part about remainder we’re the estimation we working comes months frustrating all It’s and liquidate XXXX.
or million in But disposals. proceeds forecasted contract we in $XX be $XX shrink sold in have another XXXX. from to sold. under we vessels XXXX selling contract sold. high with to million received deposits for as vessels up in vessels for nine still end $X.X estimate quarter. $XX have may for million million comfortable free first million to than for more We under originally We We envisioned sold we feel we We further. rate the vessels $X Year-to-date be even
program. in determinant the The focus generation of remains and cash flow incentive key our free key cash our is
have As working we drydock ship. XXXX look benefit we of out resume further We won’t some the liquidation have in level capital and to need the lighten we to XXXX, will activity. to
In addition as just and key free footprint XXXX customer cash concentrate fleet We must to noted the three based actions the I focus shore the flow mix and to base. generation.
quarter the to as now of reducing, to from normalized average $X average or in G&A pure the cost result grading XX fleet. high and lowest XXXX, period same the on rates, or active I’ll million release previous each first of driven of decrease or a our Tidewater In $XXX a vessels, and by prior quarter lower million X% the result an generated operating $XX annually. million the refocusing quarter the a previous day of was move year. for operating per at the on the operating This quarter. Tidewater as revenue higher plan our million ever in the largely of of $XX we level compared mentioned with achieved was four regions margins higher as This press results overall cost on
as result decreased the XX% from down pandemic will as higher the a of and in utilization first quarter. XX% to in vessels quarter getting this prior pullback in active delays the vessel accelerate, current the With intensified mid-March on
this related resulting But $XX.X XX% and from $XXX million is million forma from $XX decrease merger year-over-year of we result the run impairment administrative down which cost. a rate including lower and stock the of year a The small run is million a decrease to headcount item general Nigeria receivable million. Our non-cash normalized included from of even had $X compensation of rate expense $XX a pro intermediary. in million
the negative due activities spend operating the by $XX.X to negative for which million over in quarters which numbers which our demand begin But be used for the cash drydock the better of and was flows a of $XX the $XX.X anticipate done to first million. free the drydock million we for was planned. increasing cash reverse Obviously what prepare the rates the cash The building were flow capital program improving flow did year. remainder day business will we market planned to quarter and working and see first was to we incidentally the quarter. Net believe quarter wasn’t over
previously, we’ll stuck around mentioned few I in drydocks we second the be quarter. As world completing the in have that vessels a
results our onto regional at Looking more levels.
primarily ended reduction million Americas vessels of revenues XXXX. $X.X the XX% March vessel result Our and segments saw during from This the ended XXXX four compared as March to XX, the to utilization active XX% decrease or quarter in decreased XX%. quarter fewer XX, active is
for partially $X.X average offsetting in rates However was the the ago offset $XXX,XXX day was March decrease more by cost. operating loss declines. Vessels in quarter. operating these ended increased segment for XX, decrease operating X% XXXX merely by revenue The Americas the year quarter million the which loss for the than was
virus travel to an Pacific loss of related operating segment quarter reporting March operating loss for a the the the compared high ended ended increase Active most from Saudi Middle the In the for $X.X Asia the region restrictions. is X% vessels East, vessels XXXX. to XX% ended $X.X recent East increased continue year crew its to remains average revenue by in XXXX Aramco utilization increased quarter. XX increased XX% $XXX,XXX in Activity Asia and demand during where million tight rates Average four. for access March day increased due to as is quarter The for compared quarter ago Pacific XX, as well segment XX, quarter availability March Middle to or million XX%. of
the ago period X% increasing the because in March the and quarter the utilization of also points during three increased demand Mediterranean, region. quarter. Active Average for for four vessel our day reported increased which ended improvements. vessels For $XXX,XXX $X.X loss the rates revenues increased year year these percentage Europe quarter. same to compared XX, XXXX XX% or for compared as the during March to an the of vessels to ago ago operating profit offsets $X.X of The vessel year quarter fleet million decreased XX, ended operating the for active partially an quarter by million quarter. The compared segment
the particular North XX of with of Sea the market is the XX in of than additional layup. moving days the without day which flood saw cancellations the evaporate in a we For spot in higher. going rate largely Vessels work probability and PSVs being idle, onto lowering a drilling past more occasional spot are put market high
the up have strong two continues the are We laid season. and layup to if spot remain in to vessels more summer market recently to weak likely send typically
were Vessel in in downturns. quarter, impacted We regions. virus from operating Despite combination oil to than improving related quarter with million collapse. of with expectations higher the for higher challenges vessels In primarily XX% the ended XXXX decreased XXXX an to of quarter March loss untimely quarter for The where the during $X.X decreased periods. and as utilization the due decreased XXXX. the average XX, price West vessel profit by vessels first XXXX. quarter March operating for the to up or from the quarter of wrapping cost ended operating West XX% Africa, a million segment active during comparative coupled drydock $X.X of decreased anticipated compared to Africa an XX% the during XX, decrease Active by revenues during the XX first fleet the
an is well future. sloping from one. downward here. the a of reverting steep past turmoil. And trend still sloping in line. to But it’s difficult so to see these upward reverting There It’s a it’s not upwards It’s recovery likelihood demand
it open And on Brandon, that let’s questions. for note up
