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Revenue: $340.4 million in Q3 2024, up from $339.2 million in Q2 2024.
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Net Income: $46.4 million, or $0.87 per share in Q3 2024.
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Gross Margin: 47.2% in Q3 2024.
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Free Cash Flow: $67 million in Q3 2024; $223.9 million year-to-date.
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Average Day Rates: Increased by 5.4% to $22,275 per day in Q3 2024.
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Utilization: Decreased from 80.7% in Q2 2024 to 76.2% in Q3 2024.
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Adjusted EBITDA: $142.6 million in Q3 2024, up from $139.7 million in Q2 2024.
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Vessel Operating Costs: $178.7 million in Q3 2024.
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Share Repurchases: $15 million in Q3 2024; $48 million year-to-date.
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Capital Expenditures: $5.7 million in Q3 2024; expected $27 million for full year 2024.
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Drydock Costs: $35.5 million in Q3 2024; expected $134 million for full year 2024.
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Revenue Guidance: Updated to $1.33 billion to $1.35 billion for full year 2024.
Release Date: November 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Tidewater Inc (NYSE:TDW) reported a significant improvement in free cash flow, generating $67 million in Q3 and nearly $224 million year-to-date, which is $174 million more than the same period last year.
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The company has successfully increased average day rates by over 5% in the third quarter, with leading-edge day rates also showing positive momentum.
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Tidewater Inc (NYSE:TDW) has repurchased approximately $83 million of shares in the open market since the inception of the buyback program, demonstrating a commitment to enhancing shareholder value.
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The company anticipates continued improvement in free cash flow generation over the coming quarters, supported by long-term fundamentals.
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Tidewater Inc (NYSE:TDW) has a strong outlook for the offshore vessel market, with expectations of leading-edge day rates continuing to increase through 2025 and 2026 due to supply constraints and demand growth.
Negative Points
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Utilization rates decreased slightly in Q3 due to increased idle time and higher-than-anticipated drydock days, particularly in the West Africa and Europe and Mediterranean segments.
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The North Sea market, especially the UK sector, is expected to be weaker due to typical winter seasonality and regulatory and tax program adjustments, which are putting pressure on day rates and utilization.
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The outlook for the timing and pace of growth in offshore vessel activity in 2025 is less clear, with some customers taking a measured approach to executing incremental growth projects.
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Tidewater Inc (NYSE:TDW) is holding off on providing guidance for 2025 due to lower visibility and uncertainty in the market.
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The company experienced higher-than-expected operating costs in Q3, including increased repair costs, fuel expenses, and penalties due to delays in returning vessels to work.