Join our crew and become one of the 105,983 members that receive our newsletter.

Tidewater offshore vessel at sea

Photo courtesy Tidewater

Tidewater Profit Driven By Surging Day Rates and Positive Outlook

Mike Schuler
Total Views: 1419
August 8, 2023

Tidewater Inc. (NYSE: TDW), a leading provider of offshore support vessels, reported a substantial improvement in revenue and earnings in the second quarter of this year, underpinned by higher day rates and a positive market outlook for offshore support vessels.

Tidewater’s revenue for the three months ended June 30 hit $215.0 million, marking a 31% jump compared to the same period last year and 11% higher than the previous quarter.

In terms of net income, Tidewater posted $22.6 million ($0.43 per common share) for the second quarter of 2023, a turnaround from a net loss of $25.6 million ($0.61 per common share) in Q2 2022 and $12.0 million more than the previous quarter. For the first half of 2023, the company’s net income amounted to $33.3 million ($0.64 per common share), a significant improvement over a net loss of $37.7 million ($0.91 per common share) in the same period last year.

Quintin Kneen, President and Chief Executive Officer of Tidewater, highlighted the company’s upward trajectory in day rates and revenue.

“The second quarter continued the trend of new quarterly cyclical revenue and global average day rate high-water marks,” Kneen said. “Consolidated global average day rates improved approximately $1,400 per day sequentially, approaching a $5,500 per day increase since the end of 2021.”

Kneen noted that the momentum in day rates is being driven by a global supply shortage of large and small offshore vessels. He also emphasized that Tidewater’s acquisition of more than three dozen platform supply vessels from Solstad Offshore in March as contributing to the company’s growth.

Tidewater President and CEO, Quintin Kneen. Photo courtesy Tidewater

Tidewater saw significant revenue improvements in the North Sea and West Africa due to day rate increases of 23.0% and 11.0%, respectively, while the Middle East saw a notable day rate increase of 8.0%. Day rates in the Americas and Asia Pacific were up 2.0% and 3.0%, respectively, following a period of robust day rate expansion in the first quarter.

Looking ahead, Tidewater anticipates further revenue growth, with an estimated increase of at least $80.0 million for the third quarter, largely attributed to the recent acquisition. The company reaffirmed its 2023 annual guidance of approximately $1.03 billion in revenue and around $500.0 million in vessel operating margin.

“Expected long-term increases in offshore capital spending, the increasingly constructive tone of conversations with our customers in terms of vessel contract duration and future start dates for projects, coupled with the existing and expected future constraints in vessel supply, point to as compelling of a long-term market backdrop for our business as we have ever seen,” Kneen said.

Unlock Exclusive Insights Today!

Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.

Sign Up
Back to Main
polygon icon polygon icon

Why Join the gCaptain Club?

Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.

Sign Up
close

JOIN OUR CREW

Maritime and offshore news trusted by our 105,983 members delivered daily straight to your inbox.

gCaptain’s full coverage of the maritime shipping industry, including containerships, tankers, dry bulk, LNG, breakbulk and more.