Q1 2024 Tidewater Inc Earnings Call Transcript
Key Points
- Tidewater Inc (TDW) reported first quarter revenue and gross margin significantly above expectations, with both day rate and utilization outperforming.
- Sequential improvement in performance noted, with the first quarter exceeding the fourth quarter, and the fourth quarter exceeding the third.
- Day rate momentum was broad-based across all vessel classes, particularly in large class anchor handlers, with a notable 27% increase.
- Tidewater Inc (TDW) repurchased $3.5 million of shares on the open market during the quarter, and an additional $12.5 million subsequent to the quarter end, demonstrating strong capital return to shareholders.
- The company remains optimistic about the continued pace of offshore activity acceleration due to constructive leading indicators observed in the first quarter.
- Despite overall positive results, the company acknowledges the presence of seasonality which still impacts certain operating regions.
- The supply of large anchor handlers is persistently tight, which could pose challenges if demand increases unexpectedly.
- Tidewater Inc (TDW) continues to pursue acquisitions but notes that share repurchases have been the most value-added use of capital, suggesting potential challenges in finding suitable acquisition targets.
- The company's debt capital structure is being evaluated for potential restructuring to better suit the cyclical nature of the business, indicating current limitations.
- There was an increase in vessel operating costs due to higher crew costs and dry-dock amortization, which could impact profitability if not managed effectively.
Thank you for standing by. My name is Dee and I will be your conference operator today. At this time, I would like to welcome everyone to the Tidewater First Quarter 2020 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, please press star one again.
Thank you. I would now like to turn the call over to West Gotcher, Senior Vice President for Strategy, Corporate Development and Investor Relations.
Good morning, everyone, and welcome to Tidewater's First Quarter 2024 earnings conference call. I'm joined on the call this morning by our President and CEO, Quintin Kneen, our Chief Financial Officer, Sam Rubio, and our Chief Commercial Officer, Piers Middleton.
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