Group 1 - The logistics sector has seen significant engagement from investors, particularly in the ASEAN and US markets, with a focus on banks, telecommunications, logistics, and hotels [1] - The popularity of insurance companies in the Philippines has influenced investment strategies, leading to diversification beyond traditional savings in banks and properties [1] - The investment approach has evolved from focusing solely on blue-chip companies to a more diversified portfolio across various industries and market capitalizations [1] Group 2 - The entry into the US market occurred in 2020, following a period of learning and analysis through platforms like Seeking Alpha [1] - The investor has holdings in US banks, hotels, shipping, and logistics companies, indicating a strategic approach to portfolio diversification [1] - The comparative analysis between the US and Philippine markets has been a key aspect of the investment strategy, enhancing market awareness and decision-making [1]

Group 1 - The focus has shifted towards offshore drilling, supply industry, and shipping, including tankers, containers, and dry bulk [1] - The fuel cell industry is being monitored as it is still in its early stages of development [1] Group 2 - The individual has extensive experience in navigating significant market events such as the dotcom bubble, the aftermath of the World Trade Center attacks, and the subprime crisis [2] - The individual has a background in auditing with PricewaterhouseCoopers before transitioning to day trading [2]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $333.4 million, a decrease of approximately 3% from $345.1 million in Q4 2024 [33] - Gross margin was 50.1%, slightly down from 50.4% in Q4 2024, marking two consecutive quarters above 50% [34] - Free cash flow generated was about $94.7 million, down from $107 million in Q4 2024 [40] - Net income for the quarter was $42.7 million, or $0.83 per share [33] Business Line Data and Key Metrics Changes - Average day rates increased to $22,303, up from the previous quarter [34] - Active utilization improved from 77.7% in Q4 2024 to 78.4% in Q1 2025 [34] - Day rates in the Americas improved by 8% and in the Middle East by almost 5% [38] Market Data and Key Metrics Changes - The Brazilian OSV market has strengthened significantly, while the U.K. North Sea and Mexico markets face demand-side challenges [24][26] - The Middle East, Africa, and Southeast Asia have seen steady improvements in demand [24] - The overall OSV market remains above historical averages despite economic uncertainties [25] Company Strategy and Development Direction - The company views share repurchase programs as a mechanism to return capital to shareholders and take advantage of market inefficiencies [9] - M&A remains a cornerstone of growth strategy, with a focus on unlevered returns and near-term free cash flow generation [10] - The company is optimistic about the long-term fundamentals of the offshore industry despite current economic uncertainties [45] Management's Comments on Operating Environment and Future Outlook - Management noted that the uncertainty regarding global growth is high, but they are familiar with navigating such situations [12] - The outlook for 2025 aligns with prior expectations, with signs of strength in intermediate to long-term plans for customers [14] - Management remains cautious but optimistic about the potential for increased offshore activity in 2026 and beyond [14] Other Important Information - The company has no immediate need to refinance existing debt due to low leverage and no near-term maturities [19] - The company is actively monitoring the debt capital markets for potential refinancing opportunities [19] - The company expects to incur approximately $113 million in drydock costs for the year [41] Q&A Session Summary Question: What is the outlook for offshore activity in 2026 and 2027? - Management indicated that conversations with customers remain positive, with no changes to plans observed [51][53] Question: How does the company expect to benefit from assets moving out of the North Sea? - Management expects to benefit from tightening supply in the North Sea due to vessels moving to Brazil [57] Question: What is the guidance for Q2 revenue and margins? - Guidance for Q2 indicates a revenue decline of about 5% sequentially with gross margins expected at 44% [90] Question: How does the company decide whether to stack a vessel? - The decision involves various factors including rate thresholds, visibility metrics, and region-specific considerations [87] Question: What is the timeline for tenders? - The timeline for tenders varies by customer, with some taking three to six months to finalize [93]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $333.4 million, a decrease of approximately 3% from $345.1 million in Q4 2024 [32] - Net income for the quarter was $42.7 million, or $0.83 per share [32] - Average day rates increased to $22,303, slightly higher than the previous quarter [33] - Active utilization improved from 77.7% in Q4 2024 to 78.4% in Q1 2025 [33] - Gross margin was 50.1%, compared to 50.4% in Q4 2024, marking two consecutive quarters above 50% [33] Business Line Data and Key Metrics Changes - Day rates in the Americas improved by 8% and in the Middle East by almost 5% [37] - The Europe and Mediterranean region saw a decrease of about 4% in day rates due to seasonality [37] - Gross margin increased in the APAC and Middle East regions, while it decreased in Africa and Europe [37] Market Data and Key Metrics Changes - The Brazilian OSV market has strengthened significantly, while the U.K. North Sea and Mexico markets face demand-side challenges [23][25] - The Middle East and Africa markets showed steady improvements, with strong Q1 performance in Africa [27][28] - The overall OSV market remains above historical averages, although diverging trends are noted across regions [23] Company Strategy and Development Direction - The company views share repurchase programs as a mechanism to return capital to shareholders and take advantage of market inefficiencies [8][10] - M&A remains a cornerstone of growth strategy, with a focus on unlevered returns and near-term free cash flow generation [10] - The company is optimistic about the long-term fundamentals of the offshore market despite current macroeconomic uncertainties [45] Management's Comments on Operating Environment and Future Outlook - Management noted that the uncertainty regarding global growth is high, but they are familiar with navigating such situations [12] - There have been no canceled or delayed projects, indicating continued customer conviction [13] - The company expects 2025 to align with prior expectations, with opportunities in subsea construction and production-related activities [14] Other Important Information - The company generated approximately $95 million in free cash flow, the second highest since the offshore recovery began [8] - The company incurred $43.3 million in deferred drydock costs, significantly higher than the previous quarter [41] - The company has not observed any supplier price increases related to tariffs but is monitoring the situation closely [43] Q&A Session Summary Question: Outlook for offshore drilling contractors and subsea contractors - Management indicated that there have been no changes in customer outlook and expectations remain positive for 2026 and 2027 [50][54] Question: Participation in asset movement from North Sea to Brazil - Management expects to benefit from the movement of vessels to Brazil, which will tighten supply in the North Sea [58] Question: Forward margin guidance for Q2 - Management confirmed that Q2 revenue is expected to decline by about 5% sequentially, with margins at 44% [91] Question: Decision-making framework for stacking vessels - The decision to stack vessels is based on rate thresholds, visibility metrics, and region-specific factors [88] Question: Timeline for tenders - Tender timelines vary by customer, with some taking up to a year from issuance to execution [96]

May 2025 Investor Presentation tdw.com Forward-looking Statements This presentation contains "forward-looking statements" within the meaning of the U.S. federal securities laws – that is, any statements that are not historical facts. Such statements often contain words such as "expect," "believe," "think," "anticipate," "predict," "plan," "assume," "estimate," "forecast," "target," "projections," "intend," "should," "will," "shall" and other similar words. Forward-looking statements address matters that are ...

Fleet and Operations - As of March 31, 2025, the company owned 214 vessels with an average age of 12.6 years[83] - The company's revenues are primarily driven by active fleet size, vessel utilization, and day rates, with operating profit largely dependent on revenue levels[86] - Vessel utilization is influenced by market conditions and drydocking requirements, with average day rates calculated based on revenue earned during the reporting period[99] - The company has experienced a sustained period of growth in offshore exploration and production over the past two years, leading to higher activity levels and day rates for vessels[94] - The company took delivery of five new crew boats in the first quarter of 2025, contributing to an increase in active utilization[103] - The company signed agreements for the construction of ten new vessels, with nine delivered by March 31, 2025, and financing agreements totaling approximately $24.9 million[135] - The company had six stacked vessels as of March 31, 2025, an increase from one stacked vessel at December 31, 2024, primarily due to idled older crew boats[128] Financial Performance - Total revenue for the three months ended March 31, 2025, was $333,444,000, a decrease of $11,641,000 or 3% compared to $345,085,000 for the previous quarter[102] - Net income attributable to Tidewater Inc. increased by $5,748,000 or 16% to $42,653,000 for the first quarter of 2025, compared to $36,905,000 in the fourth quarter of 2024[102] - Operating income decreased by $6,330,000 or 8% to $75,047,000, down from $81,377,000 in the previous quarter[102] - Average vessel day rates slightly increased by $67 to $22,303, while average total vessels increased from 216 to 217[102] - The Americas segment reported total revenue of $54,852,000, a decrease of $5,388,000 or 9% from $60,240,000 in the previous quarter[112] - The Asia Pacific segment's total revenue decreased by $2,815,000 or 6% to $48,228,000 compared to $51,043,000 in the previous quarter[115] - The Middle East segment experienced a revenue increase of $2,530,000 or 6%, reaching $43,302,000, up from $40,772,000[117] - Total revenue for the Europe/Mediterranean segment decreased by 7% to $78.2 million for the three months ended March 31, 2025, compared to $84.1 million in the previous quarter[121] - Vessel operating profit in the Europe/Mediterranean segment fell by 37% to $7.4 million, down from $11.6 million in the prior quarter[121] - In the West Africa segment, total revenue slightly decreased by 1% to $106.1 million from $107.3 million in the previous quarter[125] - Vessel operating profit in the West Africa segment decreased by 5% to $51.6 million, down from $54.2 million in the prior quarter[125] - The company generated $86.0 million in cash flow from operating activities for the three months ended March 31, 2025, compared to $54.8 million in the same period of 2024[139] - As of March 31, 2025, the company had $349.9 million in cash and cash equivalents, with $360.7 million in working capital[129] - The company repurchased 910,481 shares for approximately $39.3 million during the three months ended March 31, 2025, and an additional 1,379,723 shares for approximately $50.8 million in April 2025[137] Market Conditions and Risks - Recent geopolitical events, including OPEC+ production increases and U.S. tariffs, have introduced significant uncertainty, causing oil prices to drop to the low $60s per barrel[95] - The outlook for the offshore energy industry is influenced by worldwide demand for hydrocarbons and the willingness of energy companies to invest in offshore activities[93] - Operating costs are significantly impacted by crew costs, repair and maintenance costs, and fuel prices, which can fluctuate based on various factors[87] - The company does not generally purchase business interruption insurance, relying instead on coverage for potential liabilities stemming from third-party losses and cybersecurity breaches[89] - The primary customer in Mexico has an outstanding receivable balance of $35.1 million, with $25.5 million over 90 days past due, representing approximately 11.2% of total trade receivables[132] - The company has not experienced any material changes in market risk exposure since December 31, 2024[150] Liquidity and Financing - The company’s liquidity is primarily generated from cash flow from operations, vessel sales, and long-term debt financing[91] - Interest expense decreased due to principal payments of $12.5 million made in the first quarter of 2025, following a $14.0 million payment in the previous quarter[107] Accounting and Reporting - For detailed information on new accounting pronouncements, refer to Note (2) in the financial statements[148]

Financial Performance - Revenue for Q1 2025 was $333.4 million, a 3.8% increase compared to $321.2 million in Q1 2024[3]. - Net income for Q1 2025 was $42.7 million ($0.83 per share), down from $47.0 million ($0.89 per share) in Q1 2024[3][7]. - Operating income for Q1 2025 was $75.0 million, compared to $81.9 million in Q1 2024[19]. - Net income for the three months ended March 31, 2025, was $42,320 thousand, down 9.3% from $46,745 thousand for the same period in 2024[21]. - Total comprehensive income for the three months ended March 31, 2025, was $42,867 thousand, compared to $46,688 thousand in the same period of 2024, a decrease of 8.0%[21]. - Net income attributable to Tidewater Inc. for Q1 2025 was $42,653,000, an increase of 15.0% from $36,905,000 in Q4 2024[26]. - EBITDA for the same period was $149,854,000, compared to $133,286,000 in the prior quarter, reflecting a 12.5% increase[43]. - Adjusted EBITDA for Q1 2025 was $154,179,000, up from $138,392,000 in Q4 2024, indicating a 11.4% growth[49]. Cash Flow and Liquidity - Free cash flow for Q1 2025 was $94.7 million, demonstrating strong cash generation despite significant drydock spending[4]. - Cash flows from operating activities increased to $85,973 thousand for the three months ended March 31, 2025, compared to $54,765 thousand in the same period of 2024, marking a significant increase of 56.9%[22]. - Net cash provided by operating activities was $85,973,000, down from $91,303,000 in the previous quarter, a decline of 5.8%[49]. - Cash, cash equivalents, and restricted cash at the end of the period increased to $349,914 thousand, up from $289,653 thousand at the end of March 31, 2024, representing a growth of 20.9%[22]. - Cash interest expense for Q1 2025 was $17,505,000, an increase from $12,816,000 in the previous quarter[49]. Revenue and Vessel Performance - Total vessel revenues increased to $330,699 thousand for the three months ended March 31, 2025, compared to $318,686 thousand in the prior year, reflecting a growth of 3.5%[24]. - Vessel revenues for Q1 2025 were $330,699,000, a decrease of 3.5% from $343,463,000 in Q4 2024[26]. - Total revenue for the worldwide fleet was $330,699,000, a decrease from $343,463,000 in the previous quarter, reflecting a decline of about 3.5%[29]. - Vessel operating margin improved to $165,720 thousand, representing 50% of total vessel revenues, compared to $151,130 thousand or 47% in the same period last year[24]. - Total vessel operating costs for the same period were $164,979,000, down from $170,384,000, reflecting a reduction of 3.4%[42]. Guidance and Future Outlook - 2025 revenue guidance is reiterated at $1.32 billion to $1.38 billion, with gross margin guidance of 48% to 50%[6][7]. - Tidewater remains well-positioned to benefit from long-term growth in offshore energy demand despite macroeconomic uncertainties[8]. Shareholder Returns - Year-to-date share repurchases totaled 2.3 million shares for $90.0 million at an average price of $39.31 per share[5][7]. - The company repurchased and retired common stock amounting to $39,712 thousand during the three months ended March 31, 2025[23]. Asset and Liability Management - Total assets decreased to $2,066,166 thousand as of March 31, 2025, from $2,074,904 thousand at December 31, 2024, representing a decline of approximately 0.4%[20]. - Total current liabilities rose slightly to $337,544 thousand as of March 31, 2025, from $331,613 thousand at December 31, 2024, an increase of approximately 1.1%[20]. - Long-term debt decreased to $555,994,000 in Q1 2025 from $571,710,000 in Q4 2024, a reduction of 2.7%[27]. - Total stockholders' equity was $1,113,624,000 in Q1 2025, marginally down from $1,114,111,000 in Q4 2024[27]. Fleet Utilization and Performance - The total fleet utilization rate for March 2025 was 76.0%, down from 81.5% in March 2024, representing a decrease of 5.5 percentage points[34]. - The total number of active vessels in the worldwide fleet decreased to 210 in March 2025 from 217 in March 2024, representing a decline of approximately 3.2%[30]. - The total available days for the worldwide fleet decreased to 18,885 in March 2025 from 19,730 in March 2024, a decline of approximately 4.3%[33]. - The average vessel day rate for the worldwide fleet was $22,303 for the three months ended March 31, 2025, an increase from $19,563 in the same period last year[36]. Regional Performance - Vessel revenues in the Americas for Q1 2025 were $54,852,000, a decrease of 9.1% from $60,240,000 in Q4 2024[37]. - Vessel revenues in the Asia Pacific for Q1 2025 were $48,228,000, a decrease of 5.3% from $51,043,000 in Q4 2024[38]. - Vessel revenues in the Middle East for Q1 2025 were $43,302,000, an increase of 3.9% from $40,772,000 in Q4 2024[39]. - In the Europe/Mediterranean region, vessel revenues were $78,205,000, down from $84,109,000, a decline of 3.4%[40]. - In West Africa, vessel revenues were $106,112,000, a slight decrease from $107,299,000, reflecting a 1.1% decline[41].

Group 1 - The focus has shifted from primarily tech stocks to include offshore drilling, supply industry, and shipping sectors such as tankers, containers, and dry bulk [1] - There is an emerging interest in the fuel cell industry, which is still in its nascent stage [1] Group 2 - The individual has extensive experience in auditing with PricewaterhouseCoopers before transitioning to day trading nearly 20 years ago [2] - The individual successfully navigated significant market events including the dotcom bubble, the aftermath of the World Trade Center attacks, and the subprime crisis [2]

Core Insights - TDW+Co is collaborating with Alaska Airlines and Hawaiian Airlines to create an immersive experience at the South by Southwest festival in Austin, TX, aimed at engaging a tech-savvy audience and showcasing innovations in travel [1][2][3] Group 1: Event Details - The event will take place on March 9, 2025, at Inn Cahoots in Austin, transforming the venue into an interactive hub for attendees to explore advancements in the airline industry [2][4] - The activation will feature live tech demonstrations, curated panels, and hands-on activities, providing guests with a first-hand look at innovations from both airlines [2][3] Group 2: Innovations Highlighted - Innovations showcased will include Alaska Airlines' electronic bag tag powered by BAGTAG and BagsID's AI-powered baggage recognition technology, emphasizing a future of streamlined travel [3][4] - Attendees will have the opportunity to personalize their experience through a "Vibe Quiz" to discover their ideal travel style and destination, while the "Future Gate Vision" will highlight the commitment to seamless airport experiences [3][4] Group 3: Company Background - TDW+Co is a community-based, purpose-driven agency that focuses on authentic brand engagement and is a certified minority-owned company with a diverse workforce [5] - Alaska Airlines and Hawaiian Airlines are subsidiaries of Alaska Air Group, operating hubs in major cities and serving over 140 destinations across North America, Latin America, Asia, and the Pacific [6]

Financial Data and Key Metrics Changes - Revenue for 2024 increased by 33% year-over-year, reaching $1.35 billion compared to $1 billion in 2023 [52][56] - Average day rates improved by nearly $4,500 per day, with gross margin rising to 48.2% from 44.2% in 2023 [53][54] - Net income nearly doubled to $180.7 million from $97.2 million in 2023, and adjusted EBITDA grew by nearly 50% to $559.6 million [56][57] - Free cash flow tripled to $331 million in 2024, with $131 million generated in Q4 alone [8][66] Business Line Data and Key Metrics Changes - Active utilization decreased by approximately two percentage points to 79.2% due to higher dry dock and idle days [54] - In Q4, average day rates were flat compared to Q3, but active utilization increased from 76.2% to 77.7% [58][69] - Gross margin in Q4 reached $174 million, up from $160.8 million in Q3, marking the highest gross margin since 2009 [70] Market Data and Key Metrics Changes - Significant improvements were noted in West Africa and the Middle East, with revenues increasing by 13% and 10% respectively, while revenues declined in other regions [69] - The company anticipates fewer offshore rigs working in 2025 compared to 2024, impacting demand for offshore vessels [17][18] - Subsea demand remains strong, with expectations for increased activity in 2026 and 2027, particularly in the subsea sector [20][21] Company Strategy and Development Direction - The company is focused on value-accretive acquisitions and has a disciplined approach to capital allocation, emphasizing free cash flow generation [12][14] - A share repurchase program was initiated, with $91 million spent on repurchases in 2024, reflecting a commitment to returning capital to shareholders [10][27] - The company aims to maintain a long-term unsecured debt capital structure while evaluating refinancing opportunities as market conditions improve [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of the business despite a muted growth outlook for offshore drilling activity in 2025 [17][18] - The company remains optimistic about the demand for hydrocarbons and expects a tightening vessel market to support future rate increases [80][81] - Management highlighted the importance of executing daily operations effectively to capitalize on market opportunities [9][10] Other Important Information - The company plans to incur approximately $37 million in capital expenditures for 2025, focusing on vessel upgrades and IT infrastructure [65] - The firm backlog and options represent $973 million of revenue for the remainder of 2025, with 68% of available days captured in firm backlog [36] Q&A Session Summary Question: Long-term market outlook and rate increases - Management indicated that the long-term demand for hydrocarbons remains strong, and the limited number of vessels will decrease over the next few years, supporting confidence in the business [80][81] Question: Confidence in 2025 guidance - Management expressed confidence in the 2025 guidance, noting that 81% of revenue is covered by backlog, with ongoing discussions for additional contracts [86] Question: Utilization and backlog coverage - Management clarified that 81% of revenue is covered by backlog, with more coverage expected in the near term compared to later in the year, and highlighted regional differences in coverage [95] Question: Increase in receivables - The increase in receivables was primarily driven by delays in payments from PEMEX, with expectations for resolution soon [98] Question: Dry dock schedule and impact on utilization - Management acknowledged some carryovers from 2024 to 2025 in dry dock days, impacting utilization, but noted a decrease in expected dry dock days for 2025 [106] Question: Average duration of new contracts - The average duration of new term contracts in Q4 was about twelve months, with a mix of short and longer-term contracts being pursued [109][111] Question: Confidence in 2026 and 2027 demand - Management is starting to see discussions for contracts extending into 2026 and 2027, indicating confidence in future demand growth [120][121]