TIDEWATER INC Q4 FY2024 earnings call

• 2024 was a year of significant financial improvements with revenue growth, increased day rates, etc. - Strategy involved disposing older vessels, acquiring newer ones, and leveraging global shore base infrastructure. - 2025 outlook includes revenue guidance, gross margin expectations, backlog and options coverage, and considerations on vessel supply and demand. - Capital allocation focus on share repurchases, debt management, and evaluating acquisition opportunities. - Mention of releasing the fifth sustainability report next week.

In 2024, Tidewater saw significant financial improvements. Revenue grew 33% year over year. Average day rates increased by nearly $4,500 per day. Net income nearly doubled, adjusted EBITDA grew by nearly 50%, free cash flow tripled, net debt was lowered by $149 million, and shares outstanding were reduced. Regionally, in Q4, West Africa and Middle East showed improvements, while Asia Pacific and Americas had pullbacks. Consolidated revenue, gross margin, and utilization were up. Revenue contribution: 2024 revenue was $1.35 billion vs $1 billion in 2023, a 33% increase.

• 2025 revenue guidance: $1.32 to $1.38 billion. - Full year gross margin range: 48% to 50%. - Approximately 81% of 2025 revenue covered by backlog and options. - Firm backlog and options represent $973 million of revenue for remainder of 2025, with 68% of available days in firm backlog and options. - Dry dock cost expected to be ~$113 million in 2025 with dry dock days affecting utilization by ~5 percentage points.

• Risks to backlog revenue include unanticipated downtime due to unplanned maintenance and incremental drydock time. - Regional market uncertainties such as regulatory changes in the UK and supply-demand dynamics in various regions.

Q: James Rollyson asked about the long-term market view and 2025 guidance confidence.

A: Quintin Kneen said the long-term view hasn't changed, and he feels good about the 2025 guidance with ~81% covered by backlog.

Q: Greg Lewis asked about utilization flow and receivables.

A: West Gotcher discussed backlog coverage, and Samuel Rubio said receivables increase in Q4 was mainly due to Mexico.

Q: David Smith asked about dry dock schedules and contract durations.

A: Samuel Rubio mentioned carryovers from 2024 to 2025, and West Gotcher said average duration of new term contracts in Q4 was about twelve months.

Q: Fredrik Stene asked about fleet adjustments and M&A.

A: Quintin Kneen talked about fleet acquisitions vs one-off vessels and attrition.

Q: Josh Jayne asked about debt market and capital return.

A: West Gotcher discussed debt capital markets and Quintin Kneen spoke about future capital structure and return to shareholders.

Q: Donald Crist asked about Asia Pacific, Malaysia.

A: Piers Middleton said Malaysia has resolved issues and vessels expected to go back to work in Q3 and Q4 of 2025.