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Tidewater(TDW) - 2021 Q1 - Earnings Call Transcript
TDWTidewater(TDW)2021-05-10 17:00
Financials
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Financial Data and Key Metrics Changes - The company reported a net loss of 35.3millionor35.3 million or 0.87 per share for Q1 2021, with revenue of 83.5million,whichis83.5 million, which is 8.4 million or 9% less than Q4 2020 [39][40] - Cash flow from operations for the quarter was 5.7million,andfreecashflowwas5.7 million, and free cash flow was 19.2 million, bolstered by working capital inflows and proceeds from vessel sales [10][47] - Net debt decreased to 23.1million,down23.1 million, down 14.4 million from the end of Q4 2020 [13][51] Business Line Data and Key Metrics Changes - The Americas segment reported revenue of 26.2millioninQ1,downfrom26.2 million in Q1, down from 32.1 million in Q4, with an operating loss of 1.7million[53]−TheMiddleEastandAsiaPacificregionreportedrevenueof1.7 million [53] - The Middle East and Asia Pacific region reported revenue of 24.4 million, down from 25millioninQ4,withanoperatinglossof25 million in Q4, with an operating loss of 1.9 million [54] - The Europe and Mediterranean region reported revenue of 14.7million,downfrom14.7 million, down from 15.8 million in Q4, with an operating loss of 8million[55]−TheWestAfricaregionreportedrevenueof8 million [55] - The West Africa region reported revenue of 15.6 million, up from 14.9millioninQ4,withanoperatinglossof14.9 million in Q4, with an operating loss of 6.8 million [56] Market Data and Key Metrics Changes - Active utilization across the fleet was 78%, slightly down from the previous quarter, while deepwater fleet utilization rose by 6% compared to Q1 2020 [29] - Average day rates decreased to 9,993perdayinQ12021from9,993 per day in Q1 2021 from 10,267 per day in Q1 2020 [30] - The Middle East and Asia Pacific region saw active utilization jump to 84% compared to 78% in Q1 2020, with average rates increasing to 8,506perday[31]CompanyStrategyandDevelopmentDirection−Thecompanyaimstooptimizecostsrelatedtodrydocksandminimizeexpensesassociatedwithvesselsinlayup,targetingapproximately8,506 per day [31] Company Strategy and Development Direction - The company aims to optimize costs related to drydocks and minimize expenses associated with vessels in layup, targeting approximately 20 million in drydock costs for 2021 [20] - The company has designed a scalable infrastructure to adjust to market changes and remain free cash flow positive [14] - The company anticipates a recovery in demand in the second half of 2021, with expectations to reactivate some vessels in West Africa [32][33] Management's Comments on Operating Environment and Future Outlook - Management indicated that the worst of the pandemic is behind, with expectations for increased activity throughout 2021, especially in the latter half [41] - The company continues to face challenges due to COVID-related delays, particularly in regions like India and the Philippines, which supply a significant portion of mariners [23][24] - Management expects to achieve full-year margin guidance of 30%, despite ongoing pandemic-driven inefficiencies impacting revenue [22] Other Important Information - The company sold six vessels in the quarter for 11 million and has 18 vessels left in the assets held for sale category [16][50] - The company published its first sustainability report, highlighting its commitment to ESG initiatives and safety culture [25][26] Q&A Session Summary Question: What is the outlook for the recovery in the market? - Management expects the recovery to continue, with a return to pre-pandemic supply and demand levels anticipated by Q1 2022 [21] Question: How is the company managing its debt? - The company has repaid nearly 100 million of debt in 2020 and continues to manage its debt maturities confidently, with more cash than the bond maturity balance [51][52]