TDW - Earnings call transcript Q4 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Thank you for standing by. My name is Janine, and I will be your conference operator for today. At this time, I would like to welcome everyone to the Tidewater Inc. Q4 and Full Year 2024 Earnings Conference Call. [Operator Instructions]

the Strategy, to Relations. Corporate turn Vice Gotcher, now of President Development will call West over Senior I and Investor please go Sir, ahead.

West Gotcher

fourth Good welcome XXXX Janine. everyone, conference quarter Tidewater's earnings you, year and Thank call. full morning, to and

by Middleton. the Kneen; CEO, Financial Sam morning Chief Chief our President Rubio; and I'm joined and this Commercial our on Officer, call Quintin our Officer, Piers

SEC implied or any may the factors speaks our additional our today, and as most or recent certain at of call through release call, non-GAAP stated on during Information be documents on that time tdw.com time-sensitive that this are Also and both XXXX. we're materially other that our advised call. website to at found GAAP we'll for uncertainties XX-K referring These by the risks The presented accurate make on on at only longer measures be statements of may you're measures. our non-GAAP be any details A making conference XX, company's plans at during today's available will the expectations. today's February During and Form and to these to reconciliation cause actual that refer of Please sec.gov. in factors. earnings that present Therefore, replay. comment are no and forward-looking performance the GAAP website can call, our to any tdw.com. financial financial located from information different

the And now to that, call Quintin. over turn I'll with

Quintin Kneen

call. full and quarter year conference welcome earnings Thank to you, the and everyone, West. fourth Good XXXX morning, Tidewater

move $XXX effort flow tripled, XXXX, the to acquisition older achievements we demand vessel strategy EBITDA our lowered to the our shares. Average X.X bring activity net was day. during younger, drives and to during views into lower-spec strategy, million nearly a I'll disciplined the product equivalence between today XX%. we we day by the capital and combined of XXXX have shore-based our vessels, performance made maximizing infrastructure. financial position a of across hold improvements. debt are higher market cash forward. some the element share year to the prepared vessel increased be spend we was to looking success. supply share financial dispose $X,XXX But and daily by outlook Adjusted remarks is of and to this spec improving my XXXX year-over-year. allocation, on as this In critical reduced for million, the interplay nearly continued and and has is our realized XXXX investments on a pursue at XX% demand entire the of I'll multiyear The doubled. significant time a execution global grew offshore our environment per This of by touch some what in the And with the an fleet XXXX vessels offshore leverage by company scalability organization. nearly state then by on market. and evolve. addressing of lastly, proved notable grew the tied Free morning, how income Net Revenue

for to most reliable, team globally XXXX, So build Tidewater the we entire most as world. grateful most the sustainable, I profitable results equally energy high-specification vessel offshore effort fleet safest as with in the happy Tidewater financial as the into am posted am the to for support I continuous

taxes, open in exchange XXXX quarter outstanding. shares used actively in to And full that $XXX down when year of XXXX. market of employee in to first shares combined million in shares during market the repurchased and fourth open We of cash the of shareholders cash the each We of repurchased also $XX with the program since XXXX. Tidewater marked the the payment manage returned share our XXXX. of commenced XXXX capital repurchase quarter million number for actively

required cash just paid addition, used cash the our more amortization balance we on million In pay the acquisition net million in to million fleet $XX of we the months. with sheet. the of with will in under debt debt down at we and added $XXX Solstad to of year down We expect to ended $XXX cash XXXX, XX have right generate than

allocation that flow the I generation. value-accretive leverage, philosophy. balance example prior for the have our an acquisitions I keen illustration discussed referenced look We with capital a on eye We of and calls, on sheet philosophy Solstad on and just believe cash is free

will additional a to -- free to and for the leverage in afterwards to flow quickly additional the for sheet reasonable delever to balance ways contemplate deploy but We right and cash interim, shareholders. level acquisition

volatility changed, remain remain that Our We over in and sentiment shifting but markets the evaluating strategy. few has active dynamics targets philosophy on quarters, has the prosecuting more not recent made have found and we the past focused the deal acquisition the in challenging.

way more the our as to to have relative as quarter, a During to shares we capital inefficiencies on also share on capitalize We our but we share allows is compared view into the value as in compelling. relative view was relative to repurchase way valuations. to leaned an not target only acquisition the the that us than value fourth fleets return target repurchases of previously more of vessel value effective shareholders,

of the timing but to both as fronts, purchases relative and we there merits capital ours. water structure well M&A, a particularly of weigh fleets of We business that of cyclical that for share will a number more appropriate we and umbrella, on the fit we disciplined are long-term establishing a as the such believe would globally remain continue weigh under time

a Piers the As in In by well pullback saw and offset West, slightly and do the Sam XXXX. discuss improvements do Africa expected we business better West the in and and Middle to East, in continues is Pacific Asia QX, to significant will Americas.

The demand, and and and up. in it's various margin all to basis, tight is performance our diversification. why regional a in we vessel due revenue mix of reshuffling on to Although pursue continue develop regions market differences emblematic of a consolidated utilization geographic were gross

like as to and given vessel anticipate outlook of XXXX on offshore of time anticipated processes. XXXX as drilling compared earlier in amount for of in on budget working Since on what internal We to up to call, growth of our market. in be providing vessels. have XXXX. XXXX an now constructing in offshore XXXX, we appears view our held rigs a QX will the to take discuss uncertainty to guidance time sent for and the our growth I'd have the on some on some considerable weekly our visibility The lack activity activity throughout through more compared was muted We fewer which demand XXXX. impact offshore forecasting offshore then,

discussions demand strong an improvements that day and activity, providers Subsea does as continued in firm rates work offshore support. the sector, it drilling when deliveries subsea towards encouraged day demand the XX exciting the vessel growth FPSO hear The re-acceleration However, a year, with generate service combination will from in see have growing an for months is allow our is expected driver impact infrastructure. offshore of factor Production-related we progress and us upwards customers substantial more relatively subsea most in material works the the demand coupled by offshore FIDs many to of the as rates service-intensive FPSO and offshore push for year us delivery build-out level. curve, requiring XXXX, day the in to delivery that ability periods. vessel and way an on continue future that avenue XXXX of leads our but rate the 'XX to XXXX, in demand more to activity other providers offshore a providing supply demand anticipate for will to drilling growth and drilling installed beyond push increase a tighter, a increased again at point the when other the and the and push what progress to material we the backlog projects to large early vessel activities pipeline of vessels on demand deliveries weighted back as at which the inelastic at activity We and to but particularly is day in rates our for and such surface robust, We pipeline point with allows this market and vessels, possible be XXXX for in demand stream the remains subsea activity demand their the softer. in demand announced because foretelling is deceleration remains it backlog of recent in to is demand subsea we with into demand we during for highest saw stage the are XXXX. of growing very subsea FPSOs particularly future pace remains the an half

vessel in confident new vessel the to few will our the remain of over fundamentals be up long-term build quarters. remain supply has we We some such, There announcements with past been that keep As business. unable confident demand.

contract vessel we have we day believe owners. justify orders few still While terms from rates don't and a that current ordering, seen newbuild

to of offshore the believe Brazil These $XX,XXX approach that so, and years indication over commercial the existing offset day tender with and shipyard closely, we currently will we will in the as and attrition terms Brazil financing in roughly Newbuild newbuild and expected $XX,XXX we award capacity, approximately in continues. prevailing additions considerations and make It's rates see percentage us that current of but long-term new likely new relationship activity to in at coming with day that per upside $XX,XXX ordered programs indicative having were noting the as global worth day do to fleet. conjunction for rates technology rates appropriate day. of very day rates of represent possible equivalent are view and unlikely. global PSVs continue the the contract X% day contracts to increase rates PSV supply, large-scale contract state vessels vessel We for that building an the markets remain watch natural the vessel the vessels per

best years to the Before Tidewater's XXXX I reiterate turn in history. of West, that one the I are call marked want over to

of value. excited for continue to substantial which actions pursue cash to enhance we generation flow value-accretive free year are another through We shareholder

commentary that, over additional to me call turn outlook. back West let with And for and our financial the

West Gotcher

Quintin. you, Thank

XXXX, During free Tidewater million generated cash flow. of $XXX

Over million employee vesting. to shares to used pay program of reduce open time share count to on liability our we market forfeiting cash and through their repurchase $XXX cash of our internal the program frame, the same our allow tax

our of free amortization In debt total allocated addition, required or uses. outstanding we used on million directly XX% of cash million cash of $XXX for $XXX flow equity-enhancing a the of to

since XXXX, the allowance program We buyback the of the QX shares million. $XXX open have totaling repurchased market the of maximum in inception of in

We cash permissible required existing to allocating debt in our value. million the of cash The capacity. Board million pleased our capital XXXX authorized capacity share to remain announce of after for an evaluate Based allowance as $XXX for to service to $XX.X agreements. free allowing debt debt amount under the share allocation on are to language new down our governs steps have opportunities. in million committed outstanding $XX.X to additional full of Directors shareholder on in today. our the we We maximum our us has authorization that additional versus enhance represents $XX repurchase XXXX, repurchase outstanding debt amortization that flow flow our access the of million The

our remain unsecured long-term also maturities no goal to immediate so evaluate we of continue the along access need establishing structure, revolving opportunistic to no to on a with to debt a near-term potential the capital facility. have We sizable the pursuing debt achieve best We credit capital markets. refinancing, and path

refinancing of with refinance with bonds considerations One revolving the connection our of associated capital of along the the calling of our these debt call in to conditions with decreases of associated of make-whole we will on the lapses early, time. To cost XXXX. acquisition bonds weigh unsecured The PSVs in the desired extent markets primary particularly The debt make-whole the premium favorable lapsing. refinancing bonds from market relative in Therefore, benefit approach frictional the bank dissipates. to Nordic of facility, with outstanding XXXX. Solstad a cost timing premium as of we with the a support our issued XXXX July the markets, opportunistically make-whole credit July, appear in pursuing is the debt these ahead

leading-edge specific see to pressure. day Turning along during classes as pressure day on our were vessel did rates across regional fourth some to the our quarter contributed investor by yesterday. some factors which posted rates our leading-edge in materials factors, vessel class, with seasonal the We

During the the last A quarter's pressure first demand calendar the the in this to U.K. on lower regulatory and midsize with favorable subsequent other PSVs likely rates. showing impacted markets. along the quarter, resilient the in in discussed PSVs U.K. tax rates. well our and prior largest from this we period fourth into the We we combination contracted experienced on year, most structure in day of rate the region, other day adjustment resilience rates rates. call, the with the term to during pressure leading to least similar very but our impact day of day reported contracts and leading-edge demand, of in U.K., quarters periods representing across under Outside leading-edge as typically with rates our fourth various seasonal entered region bifurcation for and day materially regions a regional in

experience there's and new to point, we positive on a earlier drilling in for leading-edge our offshore constructive leading-edge seriously Most as given does for healthy could come mid-cycle this pricing to we intermediate enabling the meaningful prevailing pockets day printed of to day have of we activity in recognizing still a pressure benefit long-term deceleration rates justify the rate amount 'XX, we've modest pressure said contracts pressure. in price Having although behavior the day that depending pockets outlook activity of contracts, see seen of between potentially parts and rates from uplift day us to the that, generally from room disciplined the demand. rates, U.K. under can price continue our allowing of roll rates a driller importantly, To on duration environment. competitors, competing older not continued

XXXX, our to average of up range day year margin a to full of approximately to $XXX guidance Looking billion full year-over-year. $X.XX we revenue gross printed our and are $X.XX billion initiating with year rates XX% XX%,

decline the percentage with certain to the XX% quarter day slow relatively the approximately and reduction X in globally, quarter, compared start the X% contributing expect by We first gross a margin to revenue weakness of in of as fourth rates to with year decline points to due markets seasonal revenue. expected to about due about our a of

in As look a and dry year. The firm experienced in quarter, uplift revenue increases, XXXX, options and by supported of our levels. and both is quarter expansion the half activity the expected production levels similar we fourth that revenue first backlog XX% progress revenue we days, subsea we is from anticipate plus for delivering reduction material guidance revenue driving through of margin the second midpoint approximately a sustaining range in and the with remainder January dock will first quarter third vessel utilization similar and support to into uplift the quarter, the

$XXX our and for bigger million options of backlog risks of available unplanned XX% represents maintenance incremental backlog unanticipated of remainder options. to XXXX. captured downtime firm and docks. revenue firm and due the in are dry time The revenue on Approximately spent Our days backlog is to

I'll the With for the of Piers landscape. an turn overview call commercial to that, over

Piers Middleton

good West, you, and everyone. morning, Thank

helping effort. some comments we to more take a wanted team to and our like fifth be we Quintin all put report continue global this sustainability. This future to a to the team as thank hard into historical Please will context, commitment sustainability I'd stakeholders, I out to our wider together week. this well as put and reports next Before I that report. to showcase And opportunity the Tidewater everyone to their for our about our commitment talk look market as and report for releasing work within West the global mention

OSV fundamentals quite market. the the is little supply do book, order Turning expansion back for prospect stacked still with the remains to favorable of modest. the overall capacity as strong remains The which long-term from or offshore fleet the space. The side from sector outlook

of existing see fleet when average to of fleet projects, our did total remains compares which to to close age support old, age we of X average mentioned, the small ticks importance most X% all particular order we youngest, a still orders the years, very Quintin which years is fleet looking as of of Tidewater XX.X XX XXXX, in As towards under which OSV some softening when book number working an demand newbuild but reliable see with always fleets favorably against and lean the boxes. their charters safest

of progress back expected fleets did in back youngest XXXX still well and continues are headwinds eased in online feel that short-term supply and XXXX unfold. story While favorable construction placed industry, demand demand we and weather in comes backlog the made the any saw half to of we further slightly subsea as with we we -- one XXXX and the latter the to project for 'XX, exploration in growth and

regions XXXX our as in that where context, put in rates uncertainty remains. the rates to this has area remain Europe. to for rates. and Sea, most with healthy Turning last mentioned, above And the still XXXX. turn -- were the and to U.K. they're pressure into seen North up on West But cycle still of the starting

projects Looking vessels the XXXX markets. shrinks in and pick to we as U.K. online expect beyond other supply rates North XXXX, decommissioning additional as to PSV again come up Sea move

XXXX. most into robust drilling are summer long-term QX to be XXXX up support XXXX the additional a QX In continue had expected Africa, number a to drilling releasing exploration of before delayed with shortly as activity second expectations year. market rumored for tender still through Equinor PSVs the for a of pauses in activity to Norway, through and for projects and QX we In of in these strong PSV with the started of half Namibia a into the

the visibility call, drilling activity in still XXXX remains opaque. region As on last the mentioned to additional related

rigs the term committed XXXX. some the last few on However, drilling fleet which gaps latter production still remains very so will to East, half coast very tight majority availability weeks, also remains through may length, file new in the for mainly released after of in the work up the In of we in Kingdom. or Most the to half the outlook tenders region down market region, supporting and bullish availability commencing tonnage with XXXX started and our work, even the from the limited stand supporting in in are XXXX. Middle come focus NOCs with the while work. the EPCI The activity were longer-term second the on shorter But related in other new up EPCI contractors of see that many vessels we've in work of to Kingdom. in vessels

the be term, XXXX. We region demand supply expect comes online the as to push opportunity medium in short the there additional constrained to in and remain to will rates

previous long-term some In Petrobras but can this fragmented as demand in as the also tend the few will appears such, indicate to the second from set year. see further tender but take is just in show the than rate that Brazil, latest longer market as we the newbuild be demand is acceleration beyond other on that mentioned, positive rates country to that world, in a remain However, we at mentioned rates to there 'XX. highly improved, in of years. of next the And increases Quintin a believe start have push calls, do we to areas through half

region. Pemex call, as year. production positive had XXXX, of indications we providing in The outlook for into Mexico but soft the And are and to in of on certain, be work supporting for for momentum and of steady the government but clarity the QX, Caribbean their a XXXX, then, subsea the see fuel QX. construction continue the the seeing Mexico's remains are in that state As expect half half long-term until drilling and we second being we growth around activity long-term first both mentioned from last Caribbean U.S. some that remainder still will the the the

returns the Pacific, start Asia after been of and to now holidays, overseas few Malaysian expected have back subside 'XX. last specifically to turn, quarters the the in go to in that the of tendering Lastly, should and that level is pressuring their region of Malaysia of in second PETRONAS that and which half again supply-demand backlog This, have activity the QX in will resolved mean XXXX. in rates [indiscernible] issues eat should in the in balance they as QX over region mean parity some work the

XXXX. and Overall, The improve possible, into the we And the be And our the XXXX focused in a global for and long-term remain short-term performed beyond, to and half fundamentals current offshore by our and when expectation we pleased space our continuing right how believe XXXX through terms latter market period on an the team, in of and very foreseeable Quintin, continue how move we and the saw in of some softening on OSV rate to levels maintain into direction mentioned markets as the develop disciplined improving will, about to chartering improving positive future. through course, contract market day will in more we in of remain again during the the and with still keep growth the continue strategy we sustained as of offshore will with XXXX. business, while space both year. we're exitable,

that, with I'll And Sam. Thank over to you. hand it

Samuel Rubio

and Pierce, you, Thank everyone. good morning,

the fourth time, XXXX of to quarter I the third My the focus XXXX. you like followed would to take full will the financial from quarter discussion on first compared quarter-to-quarter compared year XXXX of by through to At results our XXXX, this results.

the revenue and acquired year, of full and were day effect in filed XXXX, drivers main increase rates XX% the the the of average in press the release revenue $X.XX we to of noted As $X increase. compared Solstad billion increase our an for yesterday year the vessels billion for generated in

$X.XX was rates we $XXX.X In percentage for mentioned previously $X,XXX -- for revenue year be utilization compared active billion million on billion income day XXXX. $XXX.X the in higher in million year. income, Gross expect to margin the call, and and the $X.XX was million dry net $XX.X year full $XXX.X to per by days. net in improved between our decreased for the XXXX, to million compared average XXXX X As points XX.X% due XXXX. and approximately day to to almost full Operationally, idle XX,XXX the dock to

However, boosted XX.X%. the in percentage points our rates to day strength the gross margin by year-over-year almost X

For be XXXX, XX% we expect consolidated gross between XX%. and margin to

increase our of we expect operating number the the second and We to vessels operating from half the costs somewhat docks of a half quarterly in as XXXX lower in Australia. the first number and dry of for slightly of in decrease lower QX expect a to year year

half be QX days For lower in first QX vessels, Active half -- excludes in $XXX.X the year should EBITDA increase are to to million Adjusted the as which XXXX. the for stack XXXX, and utilization expected decrease. our XX% includes days which $XXX.X of drydock of second compared than the was be XXXX of in year. for drydock the million during

generated also from cash an $XXX.X We flow, of million million $XXX of increase free XXXX.

resulted in income in the I we with success also flat of $XXX.X quarter. to on operational the were impacted third the year the million rate decrease costs to in by in million a to compared in increase pleased quarter day. In dollar, delivery good In days. did increase and nice the which million from We versus increase XX.X% fourth quarter, in third a fourth declining the third report share. quarter, reason from reported fourth quarter we $XXX.X vessel. net per or the The the turn stacked day XX-year-old utilization quarter. compared now U.S. in million third the revenue. per the active in over mobilization third to generated the strong million in quarter. quarter quarter. dry $XXX utilization Average $XXX.X to the for We quarter, EBITDA day the operating was achieved due we dock execution, to to attention the quarter which margin free of impacted was see $XXX.X and XX.X% gross $XX.X main despite mainly XXXX eventually the Adjusted like of quarter we our flow in an cash Overall, $XXX our and by vessel in positively are compared was but the $XXX solid million would marketability per million day, the was fourth strengthening the $X.XX negatively rates $XXX.X The our to

we QX, which million million few In adjusted costs period, QX. our negatively impacted $XX.X In $XXX.X recorded million Vessel quarter that million FX compared loss noncash. a we fourth of $XX.X were the EBITDA, $XXX.X was have the operating did for vessels. in to a idle

So we were able to reduce the crude to a minimum manning level.

cost a fewer the significant operating is contributed drydocks also XXX consumable vessels expense we instead of quarter. of X fewer Also, for combination lower. the to in mobilization crew which XXX salaries in [indiscernible] and where decrease and and supplies A a of Australia, had costs. we Asia couple had Additionally, our Southeast reduced days, travel factors

was higher cost the than and XXXX, full increase $XX.X includes fees million to benefits stock-based higher personnel primarily G&A total million, year to an costs. Solstad is an impact acquisition. million due for costs costs was which due primarily higher $XX.X our compensation, the of $XXX.X quarter quarter in increase and the personnel third and the in G&A year, the For million, $X.X professional fees in professional

drydock X $XXX.X points. by approximately $XXX year Full be G&A includes days XXXX the during affect utilization $XX.X are affected days we cost In quarter. compensation. engine XXXX, fourth million to XXXX incurred be days for million, we we percentage fourth to expect year And percentage $XX quarter. million the of full X compared costs overhauls. which drydock Drydocks our utilization overhauls. $XX.X million, expecting noncash about includes points which percentage by million Drydock For of million, $XX in $XX.X in stock which deferred drydock quarter, Drydock of million expected points. about XXXX costs approximately about by was the the affected costs engine million to utilization for $XXX X to includes third approximately

million. $X.X related vessel million Full installations QX, system $XX.X modifications, capital XXXX to expenditures capital year expenditures in we and upgrades. totaled In incurred DP water ballast treatment

systems QX year due vessel full we DP year-over-year in free installations, for capital to free IT the be $XXX to million will for The quarter-over-quarter and incur the from sold of margin in In software fuel improved QX. cash attributable $X.X the contributing approximately sales. The increase increase to upgrades, treatment million cost both with of quarter, upgrade. XXXX, We cash is upgrades, proceeds generated balance $XX For million. proceeds monitoring vessels lower vessel the to an and system we drydock infrastructure in also increase compared gross in to asset expect $XX X our was increase higher water expenditures. flow combined ERP million flow

senior For year loan we XXXX, in on term $XXX the made payments and full agreement. our principal on million vessel facility million $X our

we we still we refinance On as that previous case. no immediate is no our near-term maturities, debt have and the have have need to calls, mentioned that

the the will conditions are closer of as potential remain market noted expiration However, premium benefit a call the optimistic debt premiums weigh favorable before cost earlier, of in expires. the to and pursuing get refinance capital markets, as and we make-whole

consolidated XX-K footnote press essentially results for conduct in quarter. in of more quarter. I our the rates were and fourth regional In During million versus which million average used discussions operation business of fourth the segments. third the and shares of segment the was cash the the our number results. our in details refer the market, $XX the reduce of in release flat year, We to in the we tables $XX X the quarter, day used in to

by other we to Middle over resulting due region, almost APAC X experienced lower However, regions, our increase from rates by in percentage with the by gross day back for is percentage, drydock in an slight the X dating while improved West highest of our due utilization points remobilization East, in higher regions. the of which from repair which third margin East, XXXX. gross utilization, our and except by and increase day by rates XX% Africa in an rates more to percentage due down fourth margin region fewer XX than each XX.X% points increase an to quarter, XX% to led increase X increasing Gross increased day quarter, margin our In in Africa, results Middle combined XX% the with the almost rates East West Africa days. Middle day revenues primarily to to and Revenue in achieved spurred X% improving were increased increased points a West All percentage X%. XX.X% higher days. in

operating margin Our lower partially day Europe X days a increase lower the and and increase lower by costs, slight lower slightly region saw from a almost day rates saw point margin gross in operating our higher we of rates. dry and In despite due small dock gross offset Americas in primarily seeing a resulting region, percentage Mediterranean to to utilization. due utilization costs decline average

in increase operating decrease an utilization costs. as saw in APAC well as Our region a

led However, to operating a mix in small rates offset and versus a overall days decrease decrease due these Asia to day Southeast positive in variances Australia, gross higher margin. in of

and from summary, a strong to term, expect slightly fleet XXXX level. to to at flows free continue the we pursue near high see opportunities in In operationally execute M&A In cash we and generate to invest attractive will improving and XXXX, our continue profitability. we

the the to this of continue industry for long shareholders. short and pursue Tidewater remain optimistic repurchases as also will capital our opportunities of term. and an in attractive investment and will about fundamentals option both We provide share We return the

turn to I'll that, it Quintin. back With over

Quintin Kneen

All much. very you Sam, thank right.

and up it go questions. Let's for open ahead

Operator

Rollyson Instructions] Our Jim James. comes Sir. Raymond line question from from of first [Operator the

James Rollyson

in back taking near-term from some step I just, and kind of maybe ways for a bigger the think, of question a Quintin, longer-term you.

If up, through out, the we started of way at year, this flattish and the for market drove you kind a what of all went you increases obviously, into year kind look saw with a guidance. obviously, and playing require picking long-term has the rate that you as buzz kind ran about space out of bit where last leads there. then the white talking of we the year-over-year And potential rates to need and newbuilds the been

of kind the how this out, pause? are where just the customers kind picture you your up view big based over I'm X, today, is next over going the saying a market think just what curious has on X of As your changed a few years, of timing Or X, this because has become of ends months. question. changed thinking past

Quintin Kneen

talk mean we forth hydrocarbons majors on X as the the happening our perspective through going But there out look or 'XX doesn't the we seeing into in U.K. is and as It issues of pullback. so super West changed. I rest very through of years 'XX. be some of from are decreasing thought as 'XX, it I me. attrition. is chain out as But NOCs this and regulatory is hasn't and and that things 'XX Africa the in drill our anticipating demand supply amount the go we reflection, it's customers, going for that well were a through the next just the Jim, from surprise to limited fact we wasn't I strong to to is our as vessels X were

I'm another I up. in confident as of years. 'XX see couple a leg next business the this movement So over versus the sideways very in just

James Rollyson

you 'XX, the Got if start things was in are the little this to second be of you. maybe confident opposite with hoping How the proved comfortable as to a look out it I conservative given you year. all when or developed and which year in of half kind of visibility in of kind bit were today? confidence you guidance year, zoom your last we thought of trying based amount the bit less in you around in you your start 'XX comments a seem decent out a some maybe year, indicate year. you softer understand your further have But for normally, guidance the little level commentary year but of just sit to the visibility, to get of on have half back to into guidance, back we your think And at where the I kind when

Quintin Kneen

the okay? a $X.X down that, I 'XX, that's, we were question. to in we you initiated on provide to where we So X% wanted QX and X.X to to $X.XX -- One of Yes. another we to guidance our out before that have double wanted into didn't year No, forecast months billion, and We be. under we get from the at belt up the it's And we great hoping we our call at the guidance months about think, reasons from was efforts $X.XX billion least the for came looking wanted horizon. right? billion guidance. at gave X take 'XX, came at lessons When on

backlog. but part is about we've So 'XX, guidance. I covered do latter in to of XX% feel good. from conversations the begun. A do open already have contracting got of amount lot the Obviously, those the

Operator

comes next question line BTIG. Greg the from Our from of Lewis

Gregory Lewis

little I a More want on up utilization. to around follow I the West, can question. did appreciate. bit last

Asia, and question, And more -- the then a a of second there year? kind backlog? you so And it renewals throughout model said is flows there utilization revenue trying helpful. I I through question, imagine apologize. X% like we want of exposed, are first this the so or is by -- is, How of question basin guess I flows kind think i.e., covered to backlog Africa is to it's QX part we I'm basins think the X-part of And of West just be the year I can kind that that of question. is more of how would for about that's is like region, the XX% about any any My to have what year. maybe really think roughly year? maybe, related to throughout kind the how are so in this way than part that say,

James West

Greg, it's West.

is about coverage, our -- the within clear contracted days be on of of to XX% revenue was covered, have that amount we so Just the backlog. days that XX% the available

more have will, see day on the go we capacity, So available actually side some more you revenue. if to

be So there. we what as clear characterizing just were to to

I'd term The I the end, say probably given where you focus have have and if the second think would say Americas term call around than, the terms certainly to perspective, year. or think in part we coverage from of be Africa we that QX the more I then on should coverage, then over a I'd the tight And that in shorter-term few don't years. surprising will, near have QX contracting you higher if there's near going of this of, the will, end coverage. lastly, Asia. backlog reasonably coverage region. are a amount and past backlog regional your lighter the the But it, of we've more the on And range, probably of we is done on cadence, be I question, the guess, by

Gregory Lewis

that? Is have know couple been were conversations. is Okay. a QX, those that I'll person, I like guess balance think I have kind guess because mean you there's as Super know I question. helpful. of looks but in not I some I and ticked working is And just then a We days. Mexico. work year issue? big guess -- driving capital it a and what just about I kind in we up of of receivables guess of kind It sheet timing I'm a

the that could -- in of color Just when around reverse. uptick any kind kind that maybe of and receivables

Samuel Rubio

Greg, Sam. in Yes, this and that's did go Mexico. up is receivables mainly QX, by driven

can of you drove that. Pemex kind imagine, As

we The days haven't days seeing paying haven't get a hopefully, I go paid we soon, up, X here and You start like quarter-over-quarter. for lot down. DSO been or did But you'll X Pemex. come think, the

since it in but some customers our couple kind up other -- long have So do went kind of We of other some QX, areas main was of driver. over in caught little last have Africa, a yes, of the the months. bit

Operator

question Our the of David Pickering line from comes from next Partners. Energy Smith

David Smith

XXXX prepared schedule representing wanted The of circle to drydock remarks. back Sam's days. to I vessel X%

were for 'XX and pretty service 'XX the that doubt concentration X-year had I big So schedules.

days So project impacting there 'XX. XXXX the into work, delays pushing I of the mistaken 'XX we're there's 'XX. any survey were I If to and disproportionately regulatory beyond on was concentration maybe for just or something ask plans wanted drydock that if

Samuel Rubio

Yes.

have did a but 'XX we a didn't Yes, some we carryovers of 'XX. mean have push do -- going lot So 'XX, from few Dave, into into I have 'XX

the we're seeing engine I little bit. I in 'XX what in think or impact are little mean is utilization by 'XX which also amount had than days a that higher X% come and bit impact little of down drydock 'XX a bit overhauls we 'XX. does is a overall so, happening,

David Smith

term I color. any us ask could if in about investor the the the that QX from contracts just the average you color slide duration new give for I leading PSV Okay. thinking at leading was contract And can regarding appreciate demand edge presentation, on X more, seeking of just the half, with duration edge in you're least extending like trade-off the with first POS, I curious how longer-term looks that lower rates. versus at growth it about is least or quarters. Because earlier

West Gotcher

we're and Dave, I'll the it's these part West. I'll that then philosophy speak let question, answer your the contemplating contracting maybe Piers days. to of first

XX average duration what can of entered XX months. into quarter, the you contracts for the we is, those new is tell So across the and about I all of fleet, term contracts

Piers Middleton

Yes.

little around But said a few I I we my I that So add in contracting we strategy, still in of think store Dave, comments, a longer-term just market. believe that softness. in obviously, as mean, this we I'll that contracts place maybe that. bit thoughts put in some there's

opportunity still we're we ostensively going in look 'XX So think forward. I going mean lot of still 'XX short. we forward a because and there's

did unlock contracts through with a we few us few take longer-term we a don't 'XX. QX, everything, So but longer

Operator

from from Clarksons comes line the question of next Stene Securities. Fredrik Our

Fredrik Stene

coverage And you a But that financial can I and share you in wanted XXXX? be contracts XXXX of point leg versus already? that activity at far et to kind -- there we right confident cetera. any XXXX, I see are of into your potentially stage in start going I about up I Are XXXX think here the of drilling actually Or out are performance. think share in XXXX, some XXXX at terms that as you how about new now? you XXXX been could able another on this you with up we those for are as remark already. at contract color covered some to recovering has as think well But XXXX,

West Gotcher

West. I'll Fredrik, answer it's the first part.

hold as year the as backlog. and relates it the I think current calls, to 'XX, give And into now, perhaps timing then XXXX the kind out I'll to again, contracts of backlog current coverage activity. contracting let we're the in speak year off on we've backlog, of prior done outer Piers we'll providing comfortable to the

Piers Middleton

] Yes. Fredrik, companies to of [ see in starting the discussion, we are various gas regions. some XXXX about starting with

and give discussions that's does well. across be the we're well, it So 'XX, in coming as is there having even decommissioning around U.K. us I mentioned, as confidence spike good to as some demand regions going that 'XX a and all in and projects

level starting a we and I 'XX well. real internally it's and that availability vessels a confidence in as there's we're out going start of customers XXXX, 'XX started -- of sort with to discussions pre think So about seeing to uptick some and those of

there's definitely firm availability at companies sure turned but looking is the in they which So from we yet, oil lot have tenders of a the making inquiry haven't pretty into common. market, coming

and than saw the more over perhaps last -- So last we of half year.

about of us gives a lot that future. So confidence the

Fredrik Stene

think do And regions in such and are called vessels put further organic a Quintin, couple vessels Yes. now for cetera, whole, your but are through off And M&A adjustments? count, the I fleet to this look always accretive sliding looking market bit. of general, selling the you question, I market around could fleet, any to to second to comments in transactions, some not aren't been supply And noncore if but maybe more that adjustments. think supply see every turn our easily own OSV transactions at at aside we you're then are all current we any there have your least active kind fleet least as time sure of to it among you time if a mentioned quarter. I'm a volatility, own from for assets, in own prone side but to the with relates have second the high want size market assets for that we you a both effectively wanted at M&A and get to I such necessarily but -- et just

Quintin Kneen

Yes. Sure. Sure.

supply bulk clearly, is buying side, So the for easier on us. in

pick it's problem, to saw structure of can some just average company, to. to that up a you and better when whether XX we or the price as lifting generally, if is you a some somebody capital here And get because secondary problem So market out. gotten fleets it. along opposed on there. can looking somebody get a vessels. you're And going dogs there's investments we with you've to get and cats else's XX or and Normally, acquiring

easier fleet for needle when And -- so the to we lot we're move us a acquisitions. doing

well. look to one-off than acquisitions route but And vessel so one-off we're not acquisitions, more at vessel just as we all that against

the old, got XX and we've that a side, got got attrition the to and and we like of had are in we in world, fleet fleet attrition anymore. they the the boats economical not fleet, comments everybody you've XXX similar On just work to entire boats that approaching years

up the discount. this be to has going I at where world believe vessels, forward. them them So obscure where -- we'll And 'XX. acquisition, us selling am just pick be fleets and confident with won't enough a I got I is opportunities Newbuild very end into or that up market the they But think 'XX in going still market then the in certainly on and scrapping to competing there's

And more at vessels looking point. a be so this bit I'll older to and new any little invest vessels than

Operator

from Josh line from Partners. comes Our Instructions] Energy [Operator of Jayne Daniel the question next

Josh Jayne

First not on the solution an markets for what debt speak something assets new a you like term more cause found to acceptable why reason Tidewater just challenges might you're fast optimal capital the some bit to relates that just I Tidewater, but you've had And question structure. clip. think things talked do about for hasn't I others is as build long finding your seeing is little a I could it there. ask out would at

today? extent out in can, to what you you're you to to the OSV respect So those seeing space with the could available to speak there capital

West Gotcher

maybe And you ways a couple Josh, can it's think question. absolutely. of look different good it. there's It's at a West. I Yes,

said, sense. publicly not at described markets we're in fortunate earlier We'd So make a like mass really have looking we evaluate about in But And that have they where a opportunistic. debt cost traded, weigh and kind of approach We're time makes we that we're the and for we right? of my judicious There to critical structure. capital on that anything capital to position the to appear in some constructive. do or markets, bank want the be very debt strong financing comments, we Tidewater, how we've And point debt, of pushed as is really benefit. that balance again, we is type be with that the a corporate relative particular we're whole sheet frictional our the costs and I in position the and and to.

project an there's or I of finance been be landscape market seems I still contemplating with to had private relatively unpleasant understanding scar experience in years, market bank some Now it a U.S. very financing. down think based financing. public limited. may financing appetite within our say, And to cycle. or a banks that last capital there's the a compared difference tissue And the different there to of company markets vehicles new relates the the There between the decent-sized understand as number market still build newbuild conversations debt for as past over level corporate debt, for what equivalent a silos have few or on capital should look to perhaps markets, and like

marginal talked the lot belief vessel talked contract about builder. time. has for our markets over day contract still build it. the concept The what still think the and support a time lot and new is raw appetite don't have this the a it Piers the say, and would limited. don't and I terms collectively So rates that We those terms support fairly finance about really prospective over and else don't really support I this that economics And in

commercial get have to to appropriate arrangement, from be downside a the protect perspective. party terms to would financing them a for comfortable order that in So

I So as that, capital is what challenges think to there there's to perhaps some and of relates others, looking that fortunate looking palatable than think, it are we're financing. new some marginal differences, in vessel but we at. it at debt as be out And the there more we're what build may builder for situation terms do relates

Josh Jayne

you under just is that as maxing the my aggressive I'm just on then on plan the of your referenced. And thinking free we've buyback Tidewater last -- from Is how you follow-up, percentage just about pretty to been has handling months, capital long-term on return there allowed structure long out the this? -- it intermediate cash capital perspective? Okay. something a how Or term, to thinking flow Longer a current over XX essentially over that you're could speak you're curious the about shareholder term

Quintin Kneen

what term, know place in just first and are. So possible capacities revolver better capital to know do under get the intermediate long-term and what's a is want what structure the I

that what in sort the of financial indications put down just or we forward. what should we can 'XX -- do move good figure want company. can don't on you a be balances as distress guide assessment then, and of only cash out any any as on I But did doing don't the we better today. we're the percentages thing is have of we a The our bring course, for So I concern to cycle. how give so But comfortable low

Operator

from Rice. from Our Crist Don the last comes Johnson line of question

Donald Crist

tax Asia pretty last to know to high and that year, any resolve go in Malaysia. were when of I correctly, ask vessels there back could day remember the work. to on forward you if disagreement I X I remember in framework visibility to tax area. that correctly, just the kind And the wanted update and Pacific if didn't rates that moving was And in specificity about those Any states. was I back on that? place, amongst had to If dispute late we're

Piers Middleton

Piers. it's Don,

will resolved of Malaysia has an So has from now. bit mentioned come resolved PETRONAS I [indiscernible] or earlier, sort so a with those little agreement

they'll been what have happen on. after on that PETRONAS retenders bit the QX take things turn, side. that QX, sort think little in It we and around up that much put tends Pacific doing not So expect sitting vessels. back And get stream coming our allow comes own vessels a we back back us Asia as to that is to of longer the in But from will to to during holidays, start done. putting Eid -- vessels I expect and the

fleet -- focused the is we there a larger on have have We the PSV. sized

supporting it's vessels some putting the start this we expect we'll in again, so Malaysia would they're second So our back available, year, of as -- the into half well.

resolved. positive it's yes, it's So a been that

Donald Crist

America bit are to weak 'XX and And took to cetera, that look America. back Gulf of to with But look Mexico, on et you vessels I appreciate kind just administration that as be go a Gulf current I we that. as in in this for region. 'XX. over out to in is just of mean, 'XX, the the to increased you Any obviously, the X work question going getting calls policies in little of of energy their kind year

Piers Middleton

actually of X year the maybe vessels some as last seen on is the well. already that tenders or expectation and coming additional X some in of was also what in, couple extra talked We've top of few here about a rigs for last weeks but

difficult little Yes, [indiscernible] by Gulf inid think, certainly in I the for we the how affect read into full we're tenders bit change. a to the of the to it well, we're region. of a as XXXX. to much what as was it's just really already new the But seeing So to some expect get really America uplift IOCs. how or planned tell administration is down some the I

Operator

concludes CEO, turn our back closing remarks. the now Kneen, I Q&A call session. to will for That our Quintin

Quintin Kneen

All thank right. you, Well, everyone.

update in We again Goodbye. will May. you

Operator

That concludes our disconnect. you Thank now conference may call for today. joining, for and you

Tidewater (TDW) 28 Feb 252024 Q4 Earnings call transcript