Tidewater Reports Results for the Three Months Ended March 31, 2025
First Quarter 2025 Highlights
-- Revenue of $333.4 million, a 3.8% improvement compared to the first
quarter of 2024
-- Average day rate of $22,303 per day, an improvement of $2,740 per day, or
14.0%, compared to the first quarter of 2024
-- Net income of $42.7 million and Adjusted EBITDA of $154.2 million
-- Net Income and Adjusted EBITDA were favorably impacted by the $7.6
million foreign exchange gain due to the weakening of the U.S.
dollar
-- Net cash provided by operating activities of $86.0 million and free cash
flow of $94.7 million
Share Count Reduction and 2025 Guidance
-- Share count was reduced by 2.3 million shares through April 14, 2025
through repurchases of $90.0 million at an average price of $39.31 per
share
-- Share count was further reduced by 179,645 shares during the first
quarter in exchange for paying $7.5 million of employee taxes on the
vesting of equity compensation at an average price of $41.55 per share
-- Reiterating 2025 revenue guidance of $1.32 to $1.38 billion and 2025
gross margin guidance of 48% to 50%
HOUSTON--(BUSINESS WIRE)--May 05, 2025--
Tidewater Inc. $(TDW)$ announced today revenue for the three months ended March 31, 2025 of $333.4 million, compared with $321.2 million for the three months ended March 31, 2024. Tidewater's net income for the three months ended March 31, 2025, was $42.7 million ($0.83 per common share), compared with net income of $47.0 million ($0.89 per common share) for the three months ended March 31, 2024.
Quintin Kneen, Tidewater's President and Chief Executive Officer, commented, "The first quarter of 2025 came in nicely ahead of expectations, as utilization and day rate both performed better than anticipated across many of our operating regions, delivering revenue of $333.4 million for the quarter. The average day rate for the quarter marked another record at $22,303, and we achieved a 50.1% gross margin for the quarter, the second consecutive quarter above 50.0%, and also nicely ahead of expectations. Free cash flow of $94.7 million during the first quarter is particularly notable as the first quarter represents our largest quarterly drydock spend of the year, further demonstrating the free cash flow generation capacity of the business.
"On a year-to-date basis, we repurchased 2.3 million shares in the open market for $90.0 million, an average price of $39.31, fully utilizing the maximum permissible amount of repurchases available to us under our existing debt agreements. When combined with the approximately 180,000 shares we took back from employees in exchange for the $7.5 million payment of their taxes on the vesting of equity compensation during the first quarter, we've utilized nearly $100 million year-to-date to reduce the number of outstanding shares by almost 2.5 million. We have fully utilized our share repurchase capacity under the limitations in our existing debt agreements. As we progress through the year, we anticipate our share repurchase allowance to increase, providing for the opportunity to pursue additional share repurchases.
"As we look out over the remainder of 2025, it's easy to acknowledge that macroeconomic uncertainty has increased since the end of 2024. It is difficult, however, to know how some of the macroeconomic uncertainties will ultimately play out, and therefore, how commodity prices will influence operator behavior and spending plans. To date, we've not learned of any project cancellations, however, we remain vigilant in gauging how the offshore activity environment will evolve over the remainder of 2025. With our outperformance in the first quarter and no tangible evidence to the contrary, we are comfortable reiterating our 2025 guidance of $1.32 billion to $1.38 billion of revenue and 2025 gross margin guidance of 48% to 50%. As of today, the midpoint of our revenue guidance completed or contracted for the current year increased from 81% at the end of February to 88% today.
"Offshore vessel supply remains in a favorable position, with conversations pertaining to newbuild capacity largely inactive. While the macroeconomic landscape will continue to unfold over the coming months, we fundamentally believe that the world's demand for energy will continue to grow in the long-term and that offshore sources of energy provide a compelling economic solution to satisfy that demand. As offshore activity continues to grow, Tidewater is well positioned to continue to take advantage of this trend."
In addition to the number of outstanding shares, as of March 31, 2025, the Company also has the following in-the-money warrants.
Common shares outstanding 50,852,297 New Creditor Warrants (strike price $0.001 per common share) 76,175 GulfMark Creditor Warrants (strike price $0.01 per common share) 72,984 ------------------------------------------------------------ ---------- Total 51,001,456 ============================================================ ==========
Tidewater will hold a conference call to discuss results for the three months ending March 31, 2025 on May 6, 2025, at 8:00 a.m. Central Time. Investors and interested parties may listen to the earnings conference call via telephone by calling +1.800.715.9871 if calling from the U.S. or Canada (+1.647.932.3411 if calling from outside the U.S. or Canada) and provide Conference ID: 8745688 prior to the scheduled start time. A live webcast of the call will also be available in the Investor Relations section of Tidewater's website at investor.tdw.com.
A replay of the conference call will be available beginning at 11:00 a.m. Central Time on May 6, 2025. To access the replay, visit the Investor Relations section of Tidewater's website at investor.tdw.com.
About Tidewater
Tidewater owns and operates the largest fleet of offshore support vessels in the industry, with 65 years of experience supporting offshore energy exploration, production and offshore wind activities worldwide. To learn more, visit www.tdw.com.
Cautionary Statement
This news release 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, to varying degrees, uncertain and based on our management's current expectations and beliefs concerning future developments and their potential impact on Tidewater Inc. and its subsidiaries (the "Company").
These forward-looking statements involve risks and uncertainties that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements, including, among others: fluctuations in worldwide energy demand and oil and gas prices; fleet additions by competitors and industry overcapacity; limited capital resources available to replenish our asset base as needed, including through acquisitions or vessel construction, and to fund our capital expenditure needs; uncertainty of global financial market conditions and potential constraints in accessing capital or credit if and when needed with favorable terms, if at all; changes in decisions and capital spending by customers based on industry expectations for offshore exploration, field development and production; global trade trends, including evolving impacts from implementation of new tariffs and potential retaliatory measures; consolidation of our customer base; loss of a major customer; changing customer demands for vessel specifications, which may make some of our older vessels technologically obsolete for certain customer projects or in certain markets; rapid technological changes; delays and other problems associated with vessel maintenance; the continued availability of qualified personnel and our ability to attract and retain them; the operating risks normally incident to our lines of business, including the potential impact of liquidated counterparties; our ability to comply with covenants in our indentures and other debt instruments; acts of terrorism and piracy; the impact of regional or global public health crises or pandemics; the impact of potential information technology, cybersecurity or data security breaches; uncertainty around the use and impacts of artificial intelligence applications; integration of acquired businesses and entry into new lines of business; disagreements with our joint venture partners; natural disasters or significant weather conditions; unsettled political conditions, war, civil unrest and governmental actions, such as expropriation or enforcement of customs or other laws that are not well developed or consistently enforced; risks associated with our international operations, including local content, local currency or similar requirements especially in higher political risk countries where we operate; interest rate and foreign currency fluctuations; labor changes proposed by international conventions; increased regulatory burdens and oversight; changes in laws governing the taxation of foreign source income; retention of skilled workers; enforcement of laws related to the environment, labor and foreign corrupt practices; increased global concern, regulation and scrutiny regarding climate change; increased stockholder activism; the potential liability for remedial actions or assessments under existing or future environmental regulations or litigation; the effects of asserted and unasserted claims and the extent of available insurance coverage; the resolution of pending legal proceedings; and other
risks and uncertainties detailed in our most recent Form 10-K, Form 10-Qs and Form 8-Ks filed with or furnished to the SEC.
If one or more of these or other risks or uncertainties materialize (or the consequences of any such development changes), or should our underlying assumptions prove incorrect, actual results or outcomes may vary materially from those reflected in our forward-looking statements. Forward-looking and other statements in this presentation regarding our environmental, social and other sustainability plans, goals or activities are not an indication that these statements are necessarily material to investors or required to be disclosed in our filings with the SEC. In addition, historical, current, and forward-looking environmental, social and sustainability-related statements may be based on standards still developing, internal controls and processes that we continue to evolve, and assumptions subject to change in the future. Statements in this release are made as of the date hereof, and the Company disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.
Financial information is displayed beginning on the next page.
The financial statements and supplementary information presented in this press release were not audited. This press release presents extracts from the Consolidated Balance Sheets at March 31, 2025 and December 31, 2024; the Consolidated Statements of Operations and Consolidated Statements of Equity for the three months ended March 31, 2025 and 2024; and the Consolidated Statements of Cash Flows for the three months ended March 31, 2025 and 2024. Extracts are drawn from the March 31, 2025 unaudited quarterly and December 31, 2024 audited annual financial statements of Tidewater Inc. All per-share amounts are stated on a diluted basis.
TIDEWATER INC. CONDENSED
CONSOLIDATED INCOME STATEMENTS
(In Thousands, except per share
data)
Three Months Ended
-----------------------------------
March 31, 2025 March 31, 2024
---------------- ----------------
Revenues:
Vessel revenues $ 330,699 $ 318,686
Other operating revenues 2,745 2,478
------------ ------------
Total revenues 333,444 321,164
------------ ------------
Costs and expenses:
Vessel operating costs 164,979 167,556
Costs of other operating
revenues 1,430 1,150
General and administrative 29,094 25,329
Depreciation and
amortization 65,432 56,270
Gain on asset dispositions,
net (2,538) (11,039)
------------ ------------
Total costs and
expenses 258,397 239,266
------------ ------------
Operating income 75,047 81,898
Other income (expense):
Foreign exchange gain
(loss) 7,569 (4,085)
Equity in net losses of
unconsolidated companies -- (5)
Interest income and other,
net 2,157 1,483
Interest and other debt
costs, net (16,344) (19,476)
------------ ------------
Total other expense (6,618) (22,083)
------------ ------------
Income before income taxes 68,429 59,815
Income tax expense 26,109 13,070
------------ ------------
Net income 42,320 46,745
Less: Net loss attributable
to noncontrolling
interests (333) (281)
------------ ------------
Net income attributable to
Tidewater Inc. $ 42,653 $ 47,026
------------ ------------
Basic income per common share $ 0.83 $ 0.90
============ ============
Diluted income per common share $ 0.83 $ 0.89
============ ============
Weighted average common shares
outstanding 51,502 52,320
Dilutive effect of warrants,
restricted stock units and
stock options 176 580
------------ ------------
Adjusted weighted average common
shares 51,678 52,900
============ ============
TIDEWATER INC. CONDENSED
CONSOLIDATED BALANCE SHEETS
(In Thousands, except share
and par value data)
March 31, 2025 December 31, 2024
---------------- -------------------
ASSETS
Current assets:
Cash and cash
equivalents $ 341,799 $ 324,918
Restricted cash 5,234 2,032
Trade and other
receivables, net of
allowance for credit
losses of $3,144 and
$3,184 at March 31,
2025 and December 31,
2024, respectively 312,904 323,805
Marine operating
supplies 23,101 34,319
Prepaid expenses and
other current assets 15,160 13,588
------------ ---------------
Total current
assets 698,198 698,662
------------ ---------------
Net properties and equipment 1,163,758 1,184,282
Deferred drydocking and
survey costs 169,326 152,550
Indemnification assets 11,114 11,946
Other assets 23,770 27,464
------------ ---------------
Total assets $ 2,066,166 $ 2,074,904
============ ===============
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 50,203 $ 71,385
Accrued expenses 133,000 129,894
Current portion of
long-term debt 80,042 65,386
Other current
liabilities 74,299 64,948
------------ ---------------
Total current
liabilities 337,544 331,613
------------ ---------------
Long-term debt 555,994 571,710
Other liabilities 62,263 60,396
Commitments and
contingencies
Equity:
Common stock of $0.001
par value, 125,000,000
shares authorized,
50,852,297 and
51,461,472 shares
issued and outstanding
at March 31, 2025 and
December 31, 2024,
respectively 51 52
Additional
paid-in-capital 1,652,856 1,656,830
Accumulated deficit (545,890) (548,831)
Accumulated other
comprehensive loss 6,607 6,060
------------ ---------------
Total stockholders'
equity 1,113,624 1,114,111
Noncontrolling interests (3,259) (2,926)
------------ ---------------
Total equity 1,110,365 1,111,185
------------ ---------------
Total
liabilities
and equity $ 2,066,166 $ 2,074,904
============ ===============
TIDEWATER INC. CONDENSED
CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (In
Thousands)
Three Months Ended
----------------------------------
March 31, 2025 March 31, 2024
---------------- ----------------
Net income $ 42,320 $ 46,745
Other comprehensive income
(loss):
Unrealized gain on note
receivable -- 80
Change in liability of
pension plans 547 (137)
------------ ------------
Total comprehensive income $ 42,867 $ 46,688
============ ============
TIDEWATER INC. CONDENSED
CONSOLIDATED STATEMENTS OF CASH
FLOWS (In Thousands)
Three Months Three Months
Ended Ended
March 31, 2025 March 31, 2024
---------------- ----------------
Cash flows from operating
activities:
Net income $ 42,320 $ 46,745
Adjustments to reconcile
net income to net cash
provided by operating
activities:
Depreciation 39,014 38,811
Amortization of
deferred drydocking
and survey costs 26,418 17,459
Amortization of debt
premiums and
discounts 1,501 1,814
Amortization of below
market contracts (351) (1,206)
Deferred income taxes
provision (benefit) 2,347 73
Gain on asset
dispositions, net (2,538) (11,039)
Stock-based
compensation expense 3,491 2,766
Changes in assets and
liabilities, net of
effects of business
acquisition:
Trade and other
receivables 10,901 (17,616)
Accounts payable (21,182) 6,843
Accrued expenses 3,106 6,600
Deferred
drydocking and
survey costs (43,339) (40,018)
Other, net 24,285 3,533
------------ ------------
Net cash provided by
operating activities 85,973 54,765
------------ ------------
Cash flows from investing
activities:
Proceeds from asset
dispositions 3,816 12,463
Proceeds from sale of
notes 600 --
Additions to properties and
equipment (10,266) (10,942)
------------ ------------
Net cash provided by
(used in) investing
activities (5,850) 1,521
------------ ------------
Cash flows from financing
activities:
Principal payments on
long-term debt (12,500) (12,500)
Purchase of common stock (39,275) (3,501)
Debt issuance costs -- (135)
Share based awards
reacquired to pay taxes (7,465) (28,462)
------------ ------------
Net cash used in
financing activities (59,240) (44,598)
------------ ------------
Net change in cash, cash
equivalents and restricted
cash 20,883 11,688
Cash, cash equivalents and
restricted cash at beginning of
period 329,031 277,965
------------ ------------
Cash, cash equivalents and
restricted cash at end of
period $ 349,914 $ 289,653
============ ============
Supplemental disclosure of cash flow
information:
Cash paid during the year for:
Interest, net of amounts capitalized $ 17,505 $15,621
Income taxes $ 15,148 $15,603
Supplemental disclosure of noncash investing
activities:
Purchase of vessels $ 9,098 $ --
Supplemental disclosure of noncash financing
activities:
Debt incurred for the purchase of
vessels $ 9,712 $ --
====== ======
Note: Cash, cash equivalents and restricted cash at March 31, 2025
includes $2.9 million in long-term restricted cash, which is included
in other assets in our consolidated balance sheet.
TIDEWATER INC.
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
(In Thousands)
Three Months Ended
------------------------------------------------------------------------------------
Accumulated
Additional other Non
Common paid-in Accumulated comprehensive controlling
stock capital deficit income interest Total
-------- ---------- ------------- --------------- ------------- ----------
Balance at
December 31,
2024 $ 52 $1,656,830 $ (548,831) $ 6,060 $ (2,926) $1,111,185
Total
comprehensive
income (loss) -- -- 42,653 547 (333) 42,867
Repurchase and
retirement of
common stock (1) -- (39,712) -- -- (39,713)
Amortization of
share-based
awards -- (3,974) -- -- -- (3,974)
---- --------- --------- --- ---------- --- -------- ---------
Balance at
March 31,
2025 $ 51 $1,652,856 $ (545,890) $ 6,607 $ (3,259) $1,110,365
==== ========= ========= === ========== === ======== =========
Balance at
December 31,
2023 $ 52 $1,671,759 $ (637,858) $ 5,266 $ (1,542) $1,037,677
Total
comprehensive
income (loss) -- -- 47,026 (57) (281) 46,688
Issuance of
common stock 1 (1) -- -- -- --
Repurchase and
retirement of
common stock -- -- (3,535) -- -- (3,535)
Amortization of
share-based
awards -- (25,697) -- -- -- (25,697)
---- --------- --------- --- ---------- --- -------- ---------
Balance at
March 31,
2024 $ 53 $1,646,061 $ (594,367) $ 5,209 $ (1,823) $1,055,133
==== ========= ========= === ========== === ======== =========
The company's vessel revenues and vessel operating costs and the
related percentage of total vessel revenues, were as follows:
(In Thousands) Three Months Ended
-----------------------------------
March 31, 2025 March 31, 2024
--------------- --------------
Vessel revenues:
Americas $ 54,852 17% $ 63,941 20%
Asia Pacific 48,228 14% 47,781 15%
Middle East 43,302 13% 37,932 12%
Europe/Mediterranean 78,205 24% 80,381 25%
West Africa 106,112 32% 88,651 28%
------- ----- ------- ----
Total vessel revenues $330,699 100% $318,686 100%
======= ===== ======= ====
Vessel operating costs:
Crew costs $ 97,113 29% $102,352 32%
Repair and maintenance 21,954 7% 21,348 7%
Insurance 3,034 1% 2,580 1%
Fuel, lube and
supplies 14,378 4% 17,318 5%
Other 28,500 9% 23,958 8%
------- ----- ------- ----
Total vessel operating
costs 164,979 50% 167,556 53%
------- ----- ------- ----
Vessel operating margin $(A)$ $165,720 50% $151,130 47%
======= ===== ======= ====
Note (A): Vessel operating margin equals vessel revenues less
vessel operating costs.
The company's operating income (loss) and other components of
income (loss) before income taxes and its related percentage of
total revenues, were as follows:
(In Thousands) Three Months Ended
---------------------------------
March 31,
March 31, 2025 2024
-------------- -------------
Vessel operating profit:
Americas $ 4,895 1% $ 10,126 3%
Asia Pacific 13,680 4% 14,847 5%
Middle East 8,563 3% 1,529 0%
Europe/Mediterranean 7,378 2% 14,757 5%
West Africa 51,613 16% 41,010 13%
Other operating profit 1,315 0% 1,328 0%
------- --- -------
87,444 26% 83,597 26%
-------------------------- ------- --- -------
Corporate expenses (A) (14,935) (4)% (12,738) (4)%
Gain on asset dispositions,
net 2,538 1% 11,039 3%
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