company update pareto virtual energy conference...tidewater inc. | pareto virtual energy conference...

Company UpdatePareto Virtual Energy Conference

September 17, 2020

FORWARD-LOOKING STATEMENTS

2

In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Tidewater Inc. (the “Company”) notes that certain statements setforth in this presentation contain certain forward-looking statements which reflect our current view with respect to future events and future financial performance.Forward-looking statements are all statements other than statements of historical fact. All such forward-looking statements are subject to risks and uncertainties, manyof which are beyond the control of the Company, and our future results of operations could differ materially from our historical results or current expectations reflectedby such forward-looking statements.

These risks and uncertainties include, without limitation: the risks related to fluctuations in worldwide energy demand and oil and natural gas prices, and continuingdepressed levels of oil and natural gas prices without a clear indication of if, or when, prices will recover to a level to support renewed offshore exploration activities;fleet additions by competitors and industry overcapacity; our limited capital resources available to replenish our asset base as needed, including through acquisitions orvessel construction, and to fund our capital expenditure needs; uncertainty of global financial market conditions and potential constraints in accessing capital or credit ifand when needed with favorable terms, if at all; changes in decisions and capital spending by customers in the energy industry and the industry expectations for offshoreexploration, field development and production; 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 otherproblems associated with vessel maintenance; the continued availability of qualified personnel and our ability to attract and retain them; the operating risks normallyincident to our lines of business, including the potential impact of liquidated counterparties; our ability to comply with covenants in our indentures and other debtinstruments; 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; integration of acquired businesses and entry into new lines of business; disagreements with our joint venture partners; naturaldisasters or significant weather conditions; unsettled political conditions, war, civil unrest and governmental actions, such as expropriation or enforcement of customs orother laws that are not well developed or consistently enforced; the risks associated with our international operations, including local content, local currency or similarrequirements especially in higher political risk countries where we operate; interest rate and foreign currency fluctuations; labor changes proposed by internationalconventions; increased regulatory burdens and oversight; changes in laws governing the taxation of foreign source income; retention of skilled workers; enforcement oflaws related to the environment, labor and foreign corrupt practices; the potential liability for remedial actions or assessments under existing or future environmentalregulations or litigation; the effects of asserted and unasserted claims and the extent of available insurance coverage; and the resolution of pending legal proceedings.

Tidewater Inc. | Pareto Virtual Energy Conference

2Q 2020 UpdatePivoting in response to industry downturn, generating Free Cash Flow

3

Mitigating the Challenges

Realigning the Business

Quarterly Performance

• As crude oil demand stays low, pressure on the OSV market remains

• Safety and wellbeing of our employees remains priority as the pandemic continues

• Remaining flexible to market changes and customer demand

• Ensuring highest levels of operational and cost efficiency

• Free Cash Flow positive for 2Q, on track for full year 2020

• $21 mm of non-core vessel disposals, on target for 2020 goal of $40 mm

• Vessel operating margin maintained at 36% despite additional pandemic burdens

• Strong Liquidity position of ~$223 mm; net debt of $60 mm1

• Acceleration of fleet and footprint rationalization, sale of stacked fleet progresses

• Scaling back dry dock investment

• Free Cash Flow generation focus despite fundamentally altered market

• Balance sheet protection, leverage and liquidity management remain core

Tidewater Inc. | Pareto Virtual Energy Conference1 – As of June 30, 2020

Navigating Current Challenges

4Tidewater Inc. | Pareto Virtual Energy Conference

Market Demand

• Budget cuts, suspended offshore activities and logistical restrictions due to the COVID-19 pandemic have caused the vessel market to shrink sharply

• ~13% decline in offshore vessel segment spend in 2020 vs. 2019 • Capital expenditures and drydocks immediately deferred, and

further reduction of G&A and opex

Mariner Crew Changes

• COVID-19 pandemic-related logistical restrictions have severely limited crew changes causing substantially extended rotations

• Continuing to move crew as quickly as possible within restrictions using chartered flights and company vessels

63%

24%

13%

62%

28%

10%

Actively Streamlining the Fleet

5

Changes to Tidewater Fleet End Q2 2019 to End Q2 2020

163121

60

25

46

223 31

192

0

50

100

150

200

250

300

as of 6/30/2019 Disposed as of 6/30/2020


DeepwaterTowing SupplyOther

192Vessels

Fleet Optimization ContinuesActiveStackedAHFS

Active vessels Stacked vessels AHFS

Note: AHFS refers to vessels Actively Held for Sale

$9.9 $9.9

$234.7

$13.7 $10.4 $8.0 $8.7 $2.5 $-

$50 $100 $150 $200 $250 $300 $350 $400 $450 $500

2020 2021 2022 2023 2024 2025 2026 2027

The Strongest Balance Sheet in the Offshore Sector

6

Schedule of Principal Payments


Condensed Balance Sheet1

Assets $mm Liabilities & Equity $mm

Cash and equivalents 203,119 Current portion of debt 9,437

Other current assets 273,448 Other current liabilties 152,722

Current assets 476,567 Current liabilities 162,159

Property & equipment, net 839,912 Long-term debt 273,215

Deferred drydocking 74,585 Other noncurrent 90,301

Other noncurrent 27,411 Equity 892,800

Total Assets 1,418,475 Total Liabilities & Equity 1,418,475

1 - As of June 30, 2020. Excludes AHFS category

Low Leverage with a Modern Fleet


Market Cap and Leverage 1 Tidewater Fleet NBV ($mm)2

$710

$117$5

$0

$200

$400

$600

$800

$1,000

Deepwater Towing Supply Other

Active Stacked

1 - Source: FactSet, NYSE, Oslo Bors, IHS Markit and Company filings as of September 8, 2020. Note: Tidewater market cap based on common stock + Jones Act Warrants for total share count of 41.6 million

21%

91% 85% 83%91%

99% 100% 98% 100%

0%

20%

40%

60%

80%

100%

120%

$0

$50

$100

$150

$200

$250

$300

Tidew

ater

Siem

SEAC

OR

Herm

itage

Eidesv

ikDO

F

Solst

adHa

vila

Hornb

eck

Market Cap. (US$mm)

Net Debt / Cap.

2 - As of June 30, 2020. Excludes AHFS category

Active Fleet Status


19

8

2

Americas

20

North Sea & Mediterranean

1514

0

Middle East & Asia Pacific

18

11

14

West Africa

All statistics as of June 30, 2020. Deepwater Towing/Supply Other

Avg. Age

10.3Years

Active Fleet

121Vessels

Active Utilization

74.5%

Exercising Safety and Responsibility, Onshore and Offshore

9

• Focused on improving operational efficiency and reducing emissions through fuel and environmental monitoring and hybrid battery upgrades

• Fleet transition to paperless documentationand management systems

• Investment in community betterment in the areas in which we operate

• We support a broad range of organizations that are working to educate and build a safer and healthier future, including:

• Tidewater operates under a Code of Business Conduct and Ethics – operating the right way is core to our business

• Board-level commitment to ESG

• Enhancing the resilience and security of our digital systems & critical infrastructure both onshore and offshore

Environmental Social Governance

• Safety of our employees is our highest priority; we consistently maintain industry-leading metrics

• Effective accident prevention programs and systems to protect employees both onshore and offshore

• 2019 TRIR: 0.13

Safety

0.01.0

0.5


Industry Supply Dynamics are Improving

10

Older, Lower Spec Vessels will not Return from Cold Stack§ Stacked vessels will not be reactivated without contracts, but stacked vessels do not get contracts§ Average cold stacked vessel size is 2,306 DWT (PSV: 2,688; AHTS: 1,887)§ Average age cold stacked vessel is ~20.4 years for PSVs and AHTS§ ~55% of cold stacked PSVs are DP1 or Non-DP

Vessels on Order Unlikely to Deliver§ +65% of newbuilds have been under construction for greater than four years§ +90% of vessels are being built in Chinese, Indian or other second tier yards§ +30% of newbuilds are low specification (DP1/Non-DP or small DP2)§ ~10 newbuilds are expected to be delivered and viably compete in the market

Some Idle Vessels will be Cold Stacked§ Average idle vessel size is 2,134 DWT (PSV: 2,867; AHTS: 1,857)§ ~30% of idle PSVs are DP1 or non-DP§ ~109 vessels scheduled for special surveys in next two years

Effective Fleet Supply is Set to Decrease

OSV Fleet & Orderbook

Some Active Vessels will be Cold Stacked§ 741 active vessels are scheduled to undergo special surveys in 2020-2021 (PSV: 331; AHTS: 410)§ 175 active vessels are 20 years of greater§ 490 active vessels are DP1 or non-DP§ ~40% of active PSVs are < 3,300 DWT

Source: IHS Markit, Tidewater (September 2020)


Active69%

Cold Stacked

31%

Viable Under Construction

Older Cold Stacked Vessels May Not Return to Service

11

There are up to 700 demolition candidates due to age and length of time stacked~37% of all stacked vessels are 20+ years old and effectively obsoleteCosts to repair and re-class older vessels exceeds the potential return

Vessels most recently stacked will be the first to return to service (last in, first out)

Cold Stacked Vessels by Year of Build

Likelihood of returning to service

Stacked since

Before 2015 2016 2017 2018 2019 2020

Age

20+ 116 77 69 55 41 19 10

16-20 5 17 25 20 27 8 16

11-15 7 38 54 33 63 27 38

6-10 4 29 64 22 16 21 85

0-5 0 5 7 1 2 1 21

Highly Somewhatunlikely unlikely

Source: IHS Markit, Tidewater (August 2020)


China, 124

India, 24

Vietnam, 6

U.S., 4

Norway, 2Brazil, 3

Others, 7

Majority of Vessels on Order Unlikely to Deliver

12

90%under construction at

second tier yards

170Vessels listed as

construction

+90%Halted construction for

more than 4 years

OSV Newbuild Deliveries

Source: IHS Markit, Tidewater


~10Vessels expected to be

completed and eventually delivered

-2%

0%

2%

4%

6%

8%

10%

12%

14%

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Jan-07

Jan-08

Jan-09

Jan-10

Jan-11

Jan-12

Jan-13

Jan-14

Jan-15

Jan-16

Jan-17

Jan-18

Jan-19

YoY

grow

th

Num

ber o

f ves

sels

PSV fleet PSV - YoY growth

PSV Fleet Size and Growth (2007 to 2019)

Fleet growth has never been lower

Source: Clarksons Research Services

A Highly Fragmented Market Remains a Challenge

13

Source: IHS Markit, Tidewater (September 2020)

Owners by OSV Fleet Size


87%Fewer than 10 vessels in fleet

9%

2%

100

1%(incl. Tidewater)1%

The World’s Leading OSV Operating Platform

14

Most experienced, efficient and safe operator§ Established 1955, effectively creating the workboat industry§ Industry leader in safe operations, core OSV efficiency focus & lean operations§ Strategically positioned vessels, leveraged to existing & developing markets

Optimized OSV fleet§ ~75% active fleet utilization in Q2 2020§ Improving fleet efficiency and reducing emissions through hybrid propulsion

technology and fuel management system upgrades§ High-grading fleet through aggressive sales and disposal program

Financially stability in the offshore sector§ Robust balance sheet with industry-leading leverage§ Disciplined capital allocation, vessel reactivations must justify economics§ Free cash flow positive in Q2 and on track for full year 2020


Tidewater Fleet Distribution1

Tidewater’s VisionTidewater will be the global leader in the offshore industry by providing, in the most cost-efficient manner possible, unmatched support and exceptional local service to our customers, utilizing the safest, most highly skilled workforce.

62%

28%

10%

Deepwater

Towing Supply

Other

192Vessels

63%

24%

13%

Active

AHFS

Stacked

192Vessels

1 – As of June 30, 2020

company update pareto virtual energy conference...tidewater inc. | pareto virtual energy conference...

Documents