Tidewater(US:TDW)2025-08-04 20:44Company Overview - As of June 30, 2025, the company owned 211 vessels with an average age of 12.8 years[97]. - The company has a broad geographic operating footprint, allowing it to respond quickly to changing local market conditions[96]. Financial Performance - Total revenue for the three months ended June 30, 2025, was $341,431,000, representing a 2% increase from $333,444,000 in the previous quarter[116]. - Net income attributable to Tidewater Inc. increased by 71% to $72,930,000 compared to $42,653,000 in the prior quarter[116]. - Operating income rose by 8% to $80,922,000 from $75,047,000 in the previous quarter[116]. - Consolidated total revenue for the six months ended June 30, 2025, was $674,875,000, a 2% increase from $660,394,000 in the same period last year[144]. - Net income attributable to Tidewater Inc. increased to $115,583,000, a 19% rise from $97,380,000 in the prior year[144]. Revenue by Segment - The Americas segment saw a 25% increase in total revenue to $68,758,000 from $54,852,000[125]. - The Asia Pacific segment reported a 5% decrease in total revenue to $45,696,000 from $48,228,000[130]. - Total revenue for the Europe/Mediterranean segment increased to $99,280,000, a 27% increase from $78,205,000 in the previous quarter[137]. - Total revenue for the West Africa segment decreased to $82,909,000, a 22% decline from $106,112,000 in the previous quarter[142]. - Total revenue for the Asia Pacific segment decreased by 9% to $93.9 million for the six months ended June 30, 2025, compared to $103.0 million in the same period of 2024[160]. - Total revenue for the Middle East segment increased by 12% to $83.5 million, up from $74.5 million in the prior year[162]. - Total revenue for the Europe/Mediterranean segment rose by 8% to $177.5 million, compared to $163.6 million in the previous year[165]. - Total revenue for the West Africa segment grew by 6% to $189.0 million, compared to $177.5 million in the same period of 2024[169]. Vessel Operations - Vessel utilization is primarily determined by market conditions and is affected by drydock and repair days, with average day rates calculated based on revenue earned during the reporting period[113]. - Average vessel day rates increased by 3.9% to $23,166 compared to $22,303 in the previous quarter[116]. - Average vessel day rates rose to $23,275, an increase of 14.1% from $20,405 in the previous quarter[137]. - Average vessel day rates in the West Africa segment increased by 22.4% to $23,699, up from $19,366 year-over-year[169]. - Utilization decreased to 74.1% from 76.0% in the previous quarter[116]. - Utilization in the West Africa segment dropped to 57.6%, down 11.2% from 68.8% in the previous quarter[142]. Costs and Expenses - The company’s operating costs include crew costs, repair and maintenance costs, and fuel costs, which can fluctuate based on various factors[102]. - General and administrative expenses increased primarily due to higher professional fees and personnel costs[127]. Cash Flow and Liquidity - The company’s liquidity is supported by cash on hand, internally generated funds, and long-term debt financing, with market conditions impacting its ability to raise capital[106]. - As of June 30, 2025, the company had $372.3 million in cash and cash equivalents, which includes amounts held by foreign subsidiaries[174]. - The company generated $115.0 million in net income and $171.4 million in cash flow from operating activities for the six months ended June 30, 2025[184]. - Working capital, including cash on hand, was $381.4 million at June 30, 2025[177]. Financing Activities - The company issued $650.0 million in 9.125% bonds maturing in July 2030 and executed a new $250.0 million revolving credit facility, replacing a previous $25.0 million facility[176]. - The company signed agreements for the construction of ten new vessels, financed with approximately EUR24.9 million ($26.7 million) at fixed interest rates ranging from 2.7% to 6.3%[180]. - During the six months ended June 30, 2025, the company repurchased 2,290,204 shares for approximately $90.0 million[182]. - Net cash used in financing activities for the six months ended June 30, 2025, was $124.4 million, including $90.1 million for share repurchases[190]. Foreign Exchange and Other Gains - Foreign exchange gains increased significantly to $19,272,000 compared to a loss of $6,461,000 in the previous year[144]. Risks and Uncertainties - The company's future performance is subject to risks and uncertainties, including fluctuations in energy demand and potential cybersecurity breaches[100]. - Recent geopolitical events, including OPEC+ production increases and U.S. tariffs, have introduced uncertainty, causing oil prices to fluctuate between the low $60s and $80 per barrel[110]. - The company’s business is exposed to macro factors such as worldwide demand for hydrocarbons and the stability of oil prices maintained by OPEC+[108].