Tidewater Inc. (TDW, Financial) filed Quarterly Report for the period ended 2009-12-31.
Tidewater Inc. has a market cap of $2.52 billion; its shares were traded at around $48.68 with a P/E ratio of 6.5 and P/S ratio of 1.8. The dividend yield of Tidewater Inc. stocks is 2.1%. Tidewater Inc. had an annual average earning growth of 4.3% over the past 10 years.TDW is in the portfolios of Third Avenue Management, John Buckingham of Al Frank Asset Management, Inc., Chuck Royce of ROYCE & ASSOCIATES, David Dreman of Dreman Value Management, Kenneth Fisher of Fisher Asset Management, LLC, HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, Bruce Kovner of Caxton Associates, George Soros of Soros Fund Management LLC, Jeremy Grantham of GMO LLC.
Oil and gas industry analysts are reporting in their 2010 E&P expenditures (both land-based and offshore) surveys that global capital expenditures budgets for E&P are forecast to increase by approximately 11% over calendar year 2009 levels. The surveys forecast that international capital spending budgets will increase approximately 11% while North American capital spending budgets are forecast to increase approximately 12%. It is anticipated that the North American capital budget increases will primarily be spent onshore rather than offshore. These budgets were based on an approximate $70 average price per barrel of oil and an approximate $5.20 per mcf average natural gas price for calendar 2010.
The companys consolidated net earnings, during the nine months ended December 31, 2009, was $202.6 million as compared to $297.2 million during the same period of fiscal 2009, a decrease of approximately 32%, or $94.6 million, due to a 13% decrease in total revenues during the nine months ended December 31, 2009 as compared to the same period during fiscal 2009, and to a $49.1 million provision for Venezuelan operations as disclosed in Note 6 of Notes to Unaudited Condensed Consolidated Financial Statements, partially offset by approximately 11% lower vessel operating costs and the reversal of $34.3 million income tax liabilities as disclosed in Note 3 of Notes to Unaudited Consolidated Financial Statements, are included in Part I, Item 1 of this report.
The company recorded $908.6 million in revenue during the nine months ended December 31, 2009 as compared to the $1.0 billion earned during the same period of fiscal 2009, a decrease of approximately 13%, or $140.6 million, due to the loss of revenue from the companys Venezuelan operations and to an approximate seven percentage point reduction in total worldwide utilization. During the nine months ended December 31, 2009, the companys Venezuelan operations contributed $11.3 million of revenues as compared to $45.6 million of revenues contributed during the same period of fiscal 2009. The companys international-based vessel revenues decreased approximately 10%, or $92.5 million, during the nine months ended December 31, 2009 as compared to the same period in fiscal 2009, while the U.S. vessel revenues decreased approximately $50.2 million, or 43%, during the same comparative periods. Other marine revenues increased approximately $2.1 million, or 8%, during the same comparative periods. International-based vessel operating costs decreased approximately 7%, or $29.9 million, while the companys U.S.-based vessel operating costs decreased approximately 37%, or $24.2 million, during the same comparative periods. Costs of other marine revenues increased approximately $3.1 million, or 13%, during the same comparative periods. A significant portion of the companys operations continue to be conducted internationally, and the companys international vessel operations continue to be the primary driver of its earnings. Revenues generated from international vessel operations as a percentage of the companys total
At December 31, 2009, the company had 377 owned or chartered vessels (excluding joint-venture vessels and vessels withdrawn from service) in its fleet with an average age of 17.2 years. The average age of 163 newer vessels that have been acquired or constructed since calendar year 2000 as part of the companys new build and acquisition program is 4.6 years. The remaining 214 vessels have an average age of 26.9 years. During the nine months ended December 31, 2009 and 2008, the company's newer vessels generated $574.5 million and $528.0 million, respectively, of consolidated revenues and accounted for 74% and 58%, respectively, of total vessel margin (vessel revenues less vessel operating expenses less vessel depreciation), while the traditional vessels generated $305.0 million and $494.2 million of the consolidated revenues during the same comparative periods, respectively, and accounted for the remaining 26% and 42% of total vessel margin, respectively.
Read the The complete Report
Tidewater Inc. has a market cap of $2.52 billion; its shares were traded at around $48.68 with a P/E ratio of 6.5 and P/S ratio of 1.8. The dividend yield of Tidewater Inc. stocks is 2.1%. Tidewater Inc. had an annual average earning growth of 4.3% over the past 10 years.TDW is in the portfolios of Third Avenue Management, John Buckingham of Al Frank Asset Management, Inc., Chuck Royce of ROYCE & ASSOCIATES, David Dreman of Dreman Value Management, Kenneth Fisher of Fisher Asset Management, LLC, HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, Bruce Kovner of Caxton Associates, George Soros of Soros Fund Management LLC, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:
OPEC cut production of crude oil by 4.2 million barrels per day (a nearly 5% cut in global oil supplies) as of January 1, 2009 in an effort to stabilize falling crude oil prices in the latter part of calendar year 2008. OPECs production curtailments during calendar 2009 (an approximate 6% cut in production over the last 18 months) appear to have stabilized crude oil prices, which were trading in the range of $65 to $80 per barrel during the quarter ended December 31, 2009. Although this price range is far below its all time closing high of approximately $147 per barrel in mid-July 2008, it is significantly higher than the low $30s price levels experienced during the first quarter of calendar 2009. At the OPEC meeting held in December 2009, OPEC officials stated that the current level of OPEC production will remain unchanged because crude oil market demand fundamentals are still weak and inventories for the resource are oversupplied. Given the weak supply/demand fundamentals of crude oil, it is unknown whether crude oil prices will remain at current price levels or whether these price levels will support significant amounts of exploration and production spending by oil and gas companies. Due to the uncertainty of the direction of oil pricing and demand, management is unable to predict what the companys actual experience will be; however, given the historically strong correlation between commodity prices, drilling and exploration activity and demand for the companys vessels in the various international markets, the company expects that utilization and day rates for its international-based vessels will weaken if crude oil prices decrease and/or remain at levels that do not support increases in capital spending by E&P companies. The companys international customers, including some of our more significant clients, are actively seeking pricing concessions from the company, which the company is addressing on a case-by-case basis. In response to the weaker crude oil price and its effect on E&P spending, the company began stacking and removing from its active international-based fleet those vessels that cannot find attractive charter hire contracts.Oil and gas industry analysts are reporting in their 2010 E&P expenditures (both land-based and offshore) surveys that global capital expenditures budgets for E&P are forecast to increase by approximately 11% over calendar year 2009 levels. The surveys forecast that international capital spending budgets will increase approximately 11% while North American capital spending budgets are forecast to increase approximately 12%. It is anticipated that the North American capital budget increases will primarily be spent onshore rather than offshore. These budgets were based on an approximate $70 average price per barrel of oil and an approximate $5.20 per mcf average natural gas price for calendar 2010.
The companys consolidated net earnings, during the nine months ended December 31, 2009, was $202.6 million as compared to $297.2 million during the same period of fiscal 2009, a decrease of approximately 32%, or $94.6 million, due to a 13% decrease in total revenues during the nine months ended December 31, 2009 as compared to the same period during fiscal 2009, and to a $49.1 million provision for Venezuelan operations as disclosed in Note 6 of Notes to Unaudited Condensed Consolidated Financial Statements, partially offset by approximately 11% lower vessel operating costs and the reversal of $34.3 million income tax liabilities as disclosed in Note 3 of Notes to Unaudited Consolidated Financial Statements, are included in Part I, Item 1 of this report.
The company recorded $908.6 million in revenue during the nine months ended December 31, 2009 as compared to the $1.0 billion earned during the same period of fiscal 2009, a decrease of approximately 13%, or $140.6 million, due to the loss of revenue from the companys Venezuelan operations and to an approximate seven percentage point reduction in total worldwide utilization. During the nine months ended December 31, 2009, the companys Venezuelan operations contributed $11.3 million of revenues as compared to $45.6 million of revenues contributed during the same period of fiscal 2009. The companys international-based vessel revenues decreased approximately 10%, or $92.5 million, during the nine months ended December 31, 2009 as compared to the same period in fiscal 2009, while the U.S. vessel revenues decreased approximately $50.2 million, or 43%, during the same comparative periods. Other marine revenues increased approximately $2.1 million, or 8%, during the same comparative periods. International-based vessel operating costs decreased approximately 7%, or $29.9 million, while the companys U.S.-based vessel operating costs decreased approximately 37%, or $24.2 million, during the same comparative periods. Costs of other marine revenues increased approximately $3.1 million, or 13%, during the same comparative periods. A significant portion of the companys operations continue to be conducted internationally, and the companys international vessel operations continue to be the primary driver of its earnings. Revenues generated from international vessel operations as a percentage of the companys total
At December 31, 2009, the company had 377 owned or chartered vessels (excluding joint-venture vessels and vessels withdrawn from service) in its fleet with an average age of 17.2 years. The average age of 163 newer vessels that have been acquired or constructed since calendar year 2000 as part of the companys new build and acquisition program is 4.6 years. The remaining 214 vessels have an average age of 26.9 years. During the nine months ended December 31, 2009 and 2008, the company's newer vessels generated $574.5 million and $528.0 million, respectively, of consolidated revenues and accounted for 74% and 58%, respectively, of total vessel margin (vessel revenues less vessel operating expenses less vessel depreciation), while the traditional vessels generated $305.0 million and $494.2 million of the consolidated revenues during the same comparative periods, respectively, and accounted for the remaining 26% and 42% of total vessel margin, respectively.
Read the The complete Report
