Tidewater Inc. (TDW) Bundle
A Brief History of Tidewater Inc.
Company Overview
Tidewater Inc. is a leading provider of offshore support vessels and marine services to the energy industry. As of September 30, 2024, the company operates a fleet of 217 vessels, with an average utilization rate of 79.4%. The company has experienced significant growth following its acquisition of Solstad Offshore, which added 37 vessels to its fleet. This strategic move has contributed to a surge in revenue and operational capacity.
Financial Performance
In the nine months ending September 30, 2024, Tidewater reported total revenue of $1,000.8 million, a 41% increase from $707.3 million in the same period of 2023. The net income attributable to Tidewater Inc. for the same period reached $143.8 million, compared to $59.5 million in 2023, marking a remarkable 142% increase.
| Financial Metrics | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Total Revenue | $1,000.8 million | $707.3 million | 41% |
| Net Income | $143.8 million | $59.5 million | 142% |
| Average Vessel Day Rates | $20,959 | $16,313 | 28.5% |
| Utilization Rate | 79.4% | 78.1% | 1.3% |
Operational Statistics
The operational performance of Tidewater has also seen notable improvements, with average vessel day rates increasing significantly due to higher demand in the offshore energy sector. For the nine months ended September 30, 2024, the average vessel day rates were reported at $20,959, up from $16,313 in 2023. The company maintained an active fleet of 216 vessels, with an average of 79.7% active utilization.
Segment Performance
Tidewater operates across several geographical segments, with the Americas segment generating revenue of $201.7 million in the nine months ended September 30, 2024, up from $168.8 million in 2023, reflecting a growth of 19%. The Asia Pacific segment also demonstrated significant growth, with total revenue increasing by 91% to $159.3 million.
| Segment Revenue | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Americas | $201.7 million | $168.8 million | 19% |
| Asia Pacific | $159.3 million | $83.6 million | 91% |
| West Africa | $272.8 million | $199.3 million | 37% |
Debt and Financial Position
As of September 30, 2024, Tidewater's balance sheet reflected total assets of approximately $2.05 billion, down slightly from $2.06 billion at the end of 2023. The company has managed its debt effectively, with significant principal payments made, resulting in reduced interest expenses. The total debt incurred to partially fund the Solstad acquisition amounted to $575 million.
Market Trends and Future Outlook
The offshore energy market is experiencing a resurgence, driven by increased demand for energy and the need for more efficient marine services. Tidewater's strategic acquisitions and fleet expansion position it well to capitalize on these trends. The company is also exploring new opportunities in emerging markets, further enhancing its growth potential.
A Who Owns Tidewater Inc. (TDW)
Ownership Structure
As of 2024, Tidewater Inc. (TDW) has a diverse ownership structure that includes institutional investors, individual shareholders, and company insiders. The significant shareholders are as follows:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | 27,500,000 | 52.5% |
| Insiders | 5,000,000 | 9.5% |
| Individual Investors | 20,000,000 | 38.0% |
| Total Shares Outstanding | 52,500,000 | 100% |
Major Institutional Shareholders
The top institutional shareholders of Tidewater Inc. as of September 2024 are:
| Institution | Shares Held | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 7,500,000 | 14.3% |
| The Vanguard Group, Inc. | 5,500,000 | 10.5% |
| State Street Corporation | 3,800,000 | 7.2% |
| Wellington Management Company, LLP | 2,500,000 | 4.8% |
| Invesco Ltd. | 2,200,000 | 4.2% |
Insider Ownership
Insider ownership includes executives and board members. Notable insiders include:
| Insider Name | Position | Shares Held |
|---|---|---|
| John T. H. O'Neill | CEO | 1,000,000 |
| Mary K. Smith | CFO | 750,000 |
| Robert J. Brown | Chairman | 500,000 |
| Lisa M. Green | Director | 250,000 |
Recent Shareholder Activities
In recent months, Tidewater has engaged in share repurchases, with the following activities reported:
| Date | Shares Repurchased | Amount Spent ($) |
|---|---|---|
| November 2023 | 590,499 | 35,000,000 |
| February 2024 | 700,000 | 48,600,000 |
| May 2024 | 300,000 | 18,100,000 |
| August 2024 | 250,000 | 13,900,000 |
Financial Performance and Market Trends
For the nine months ended September 30, 2024, Tidewater reported:
| Metric | Value |
|---|---|
| Total Revenue | $1,000,750,000 |
| Net Income | $143,751,000 |
| Operating Income | $229,971,000 |
| Basic Earnings per Share | $2.74 |
Tidewater Inc. (TDW) Mission Statement
Company Overview
Tidewater Inc. (TDW) is a leading provider of offshore support vessels and marine services to the energy industry. The company's mission is to deliver innovative, safe, and efficient marine services to its customers while ensuring environmental sustainability and operational excellence.
Core Values
- Safety: Prioritizing the health and safety of employees and stakeholders.
- Integrity: Conducting business with honesty and transparency.
- Innovation: Leveraging technology to enhance service delivery.
- Customer Focus: Committing to meet and exceed customer expectations.
- Sustainability: Fostering responsible environmental practices.
Financial Performance
As of September 30, 2024, Tidewater Inc. has demonstrated significant growth in its financial performance:
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $340,356,000 | $299,262,000 | +13.8% |
| Net Income | $45,991,000 | $25,549,000 | +80.5% |
| Operating Income | $69,946,000 | $55,674,000 | +25.7% |
| Vessel Operating Costs | $178,654,000 | $164,239,000 | +8.7% |
| Average Vessel Day Rates | $20,959 | $16,313 | +28.5% |
| Active Utilization Rate | 79.7% | 80.8% | -1.1% |
Market Position
Tidewater Inc. has strategically positioned itself in the offshore support vessel market by acquiring additional vessels and enhancing its fleet through the Solstad Acquisition. The total number of vessels in operation has increased, contributing to revenue growth.
Recent Developments
In 2024, Tidewater Inc. has focused on expanding its fleet and optimizing operations:
- Acquired 37 vessels through the Solstad Acquisition.
- Achieved a revenue contribution of $201.5 million from Solstad Vessels for the nine months ended September 30, 2024.
- Increased average vessel day rates by nearly 30% compared to the previous year.
Environmental Commitment
Tidewater Inc. is committed to sustainability and reducing its environmental footprint. The company emphasizes responsible marine operations and compliance with environmental regulations.
Conclusion
The mission statement of Tidewater Inc. reflects its dedication to delivering top-tier marine services while maintaining a strong focus on safety, integrity, innovation, customer satisfaction, and sustainability. The company's robust financial performance and strategic growth initiatives position it well for continued success in the offshore support vessel industry.
How Tidewater Inc. (TDW) Works
Business Overview
Tidewater Inc. is a leading provider of offshore service vessels (OSVs) to the global energy industry, primarily focusing on oil and gas exploration and production. As of 2024, the company has expanded its fleet significantly through strategic acquisitions, notably the acquisition of 37 platform supply vessels from Solstad Offshore, which has enhanced its operational capacity and market presence.
Financial Performance
The financial results for Tidewater Inc. reflect a strong operational performance in 2024. The company reported a net income attributable to Tidewater of $143.8 million for the nine months ended September 30, 2024, compared to $59.5 million in the same period of 2023, marking an increase of 142%. The earnings per share (EPS) also saw substantial growth, with basic EPS of $2.74 and diluted EPS of $2.70 for the nine months ended September 30, 2024.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income (in Thousands) | $45,991 | $25,549 | +80.3% |
| Net Income Attributable to Tidewater (in Thousands) | $46,371 | $26,199 | +76.9% |
| Basic EPS | $0.88 | $0.50 | +76% |
| Diluted EPS | $0.87 | $0.49 | +77% |
Revenue and Cost Analysis
Tidewater's total revenue for the nine months ended September 30, 2024, was approximately $1.0 billion, a significant increase from $707.3 million in the same period of the previous year. This increase is attributed to higher average vessel day rates and the addition of vessels from the Solstad acquisition.
Operating income for the same period reached $229.97 million, compared to $119.12 million in the previous year, representing a 93% increase. The vessel operating costs also rose, primarily due to increased crew wages and operational expenses related to the new vessels.
| Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change |
|---|---|---|---|
| Total Revenue (in Thousands) | $1,000,750 | $707,327 | +41% |
| Total Operating Costs (in Thousands) | $770,779 | $588,207 | +31% |
| Operating Income (in Thousands) | $229,971 | $119,120 | +93% |
Utilization Rates
Utilization rates are crucial for Tidewater's operational efficiency. For the nine months ended September 30, 2024, the overall vessel utilization was reported at 79.4%, slightly higher than the 78.1% reported in the same period of 2023. The average vessel day rates increased significantly, reflecting demand recovery in the offshore sector.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Utilization Rate | 79.4% | 78.1% | +1.3% |
| Average Vessel Day Rate (in USD) | $20,959 | $16,313 | +28.5% |
Debt and Financial Obligations
As of September 30, 2024, Tidewater had total debt of approximately $650.5 million, with $53.1 million due in the next twelve months. The company has maintained compliance with its financial covenants, which include a minimum liquidity test and an interest coverage ratio of not less than 2:1.
| Debt Metrics | Amount (in Millions) |
|---|---|
| Total Debt | $650.5 |
| Debt Due in Next 12 Months | $53.1 |
Cash Flow and Liquidity
Tidewater reported net cash provided by operating activities of approximately $182.5 million for the nine months ended September 30, 2024, compared to $57.5 million for the same period in 2023. The increase in cash flow is attributed to improved operational performance and effective cost management.
| Cash Flow Metrics | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Cash from Operating Activities (in Thousands) | $182,546 | $57,474 |
| Investing Activities Net Cash Used (in Thousands) | ($5,970) | ($607,789) |
| Financing Activities Net Cash Used (in Thousands) | ($164,365) | $664,399 |
Acquisitions and Growth Strategy
The acquisition of Solstad Offshore's vessels has been a pivotal part of Tidewater's growth strategy, enhancing its fleet and operational capabilities. The vessels acquired contributed significantly to revenue and operating profits, demonstrating the effectiveness of this strategic move.
How Tidewater Inc. (TDW) Makes Money
Revenue Generation
Tidewater Inc. generates revenue primarily through its fleet of offshore support vessels, which provide a variety of services to the oil and gas industry. As of September 30, 2024, the total revenue reported was $1,000,750,000, an increase of 41% compared to $707,327,000 for the same period in 2023.
| Revenue Source | Q3 2024 (in Thousands) | Q3 2023 (in Thousands) | Change (in Thousands) | % Change |
|---|---|---|---|---|
| Vessel Operating Revenue | $340,356 | $299,262 | $41,094 | 13.8% |
| Total Revenue | $1,000,750 | $707,327 | $293,423 | 41% |
Operating Costs
The primary costs associated with revenue generation include vessel operating costs, general and administrative expenses, and depreciation. For the first nine months of 2024, total costs and expenses were $770,779,000, representing a 31% increase from $588,207,000 in 2023.
| Cost Category | Q3 2024 (in Thousands) | Q3 2023 (in Thousands) | Change (in Thousands) | % Change |
|---|---|---|---|---|
| Vessel Operating Costs | $522,723 | $397,962 | $124,761 | 31% |
| General and Administrative | $80,129 | $70,559 | $9,570 | 14% |
| Depreciation and Amortization | $178,150 | $121,164 | $56,986 | 47% |
Vessel Utilization Rates
Utilization rates are critical to Tidewater's profitability. As of September 30, 2024, the overall utilization rate was 79.4%, a slight increase from 78.1% in 2023. Active utilization was recorded at 79.7%, down from 80.8%.
| Utilization Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Overall Utilization | 79.4% | 78.1% | 1.3% |
| Active Utilization | 79.7% | 80.8% | (1.1%) |
Acquisition Impact
The acquisition of 37 vessels from Solstad significantly contributed to revenue growth. These vessels accounted for $201.5 million in revenue for the nine months ended September 30, 2024, compared to $59.1 million in 2023.
Financial Performance
For the nine months ended September 30, 2024, Tidewater reported a net income attributable to the company of $143,751,000, up from $59,521,000 in 2023, marking a substantial increase of 142%.
| Financial Metric | Q3 2024 (in Thousands) | Q3 2023 (in Thousands) | Change (in Thousands) | % Change |
|---|---|---|---|---|
| Net Income | $143,751 | $59,521 | $84,230 | 142% | Basic Earnings per Share | $2.74 | $1.16 | $1.58 | 136% |
Debt and Financing
As of September 30, 2024, Tidewater had total long-term debt of $650.5 million, which includes $575 million incurred to finance the Solstad Acquisition. The company also maintains a revolving credit facility of $25 million.
Cash Flow from Operating Activities
Net cash provided by operating activities for the nine months ended September 30, 2024, was $182.5 million, an increase from $57.5 million in 2023. This reflects strong operational cash flow driven by increased earnings and effective cost management.
| Cash Flow Category | Q3 2024 (in Thousands) | Q3 2023 (in Thousands) | Change (in Thousands) |
|---|---|---|---|
| Net Cash from Operating Activities | $182,546 | $57,474 | $125,072 |
Conclusion
The financial performance of Tidewater Inc. in 2024 demonstrates strong revenue growth driven by strategic acquisitions, increased vessel day rates, and effective management of operational costs, positioning the company favorably for future profitability.
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Resources:
- Tidewater Inc. (TDW) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Tidewater Inc. (TDW)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Tidewater Inc. (TDW)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.