On August 6, 2024, Tidewater Inc (TDW, Financial) released its 8-K filing for the three and six months ended June 30, 2024. Tidewater Inc provides offshore service vessels and marine support services to the offshore energy industry through the operation of a diversified fleet of marine service vessels. The company's vessels and associated vessel services provide support for all phases of offshore exploration, field development, and production. These services include towing of, and anchor handling for, mobile offshore drilling units; transporting supplies and remotely operated vehicle operations, and a variety of specialized services. The company operates in the following principal geographical areas: the Americas, Asia Pacific, Middle East, Europe/Mediterranean, and West Africa. The majority of its revenue is derived from West Africa.
Performance Overview
Tidewater Inc (TDW, Financial) reported revenue of $339.2 million for Q2 2024, a 5.6% increase from the previous quarter's $321.1 million. This figure also surpasses the analyst estimate of $330.19 million. The company's net income for the quarter was $50.4 million, or $0.94 per share, below the analyst estimate of $1.00 per share. This represents a significant improvement from the $22.6 million, or $0.43 per share, reported in the same period last year.
Key Financial Achievements
Several key metrics highlight Tidewater Inc (TDW, Financial)'s strong financial performance:
- Adjusted EBITDA of $139.7 million, up from $138.9 million in Q1 2024.
- Net cash provided by operating activities increased to $78.6 million, up from $54.7 million in Q1 2024.
- Free cash flow rose to $87.6 million, compared to $69.4 million in the previous quarter.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenues | $339.2 million | $214.9 million |
| Net Income | $50.4 million | $22.6 million |
| Adjusted EBITDA | $139.7 million | $78.1 million |
Challenges and Future Outlook
Despite the strong performance, Tidewater Inc (TDW, Financial) faces challenges such as increased drydock days, which impacted vessel utilization. However, the company anticipates a decline in drydock days in the third and fourth quarters, which should improve utilization rates.
Quintin Kneen, Tidewater’s President and Chief Executive Officer, commented, “Second quarter revenue came in nicely above our expectations driven by continued strength in global day rates. Our consolidated global average day rate expanded materially during the quarter, with the average day rate increasing nearly $1,600 per day sequentially, the second largest sequential increase in day rate since the offshore vessel recovery began in early 2022."
Share Repurchases and Updated Guidance
Tidewater Inc (TDW, Financial) repurchased 176,555 shares during the quarter at an average price of $95.66 per share, totaling $16.9 million. The Board has approved an additional share repurchase authorization of $13.9 million, bringing the total outstanding authorized capacity to $47.7 million.
The company has updated its 2024 revenue guidance to $1.39 to $1.41 billion and gross margin guidance to 51%, reflecting its optimistic outlook for the remainder of the year and into 2025.
For more detailed financial information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Tidewater Inc for further details.
