Tidewater (TDW) 8 Nov 242024 Q3 Earnings call transcript

Thank you for standing by. My name is Novi, and I will be your conference operator today. At this time, I would like to welcome everyone to the Tidewater Q3 2024 Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to West Gotcher, Senior Vice President of Strategy, Corporate Development and Investor Relations.

Thank you, Novi. welcome Third and Conference XXXX everyone, Call. morning, to Quarter Tidewater's Earnings Good the by Rubio; this CEO, joined call I'm on morning Commercial Piers our Financial Chief Quintin Chief our Officer, our Sam and Officer, Middleton. Kneen; and President

the during making and statements that of make replay. Also to longer are and call GAAP conference presented sec.gov. and today, we additional company's now be financial performance that website may information X, this reconciliation XXXX. are only cause our any speaks accurate comment call, of in found on There you're any measures. be call, Information or forward-looking uncertainties and most at materially documents XX-K plans may non-GAAP are that by refer to certain at Quintin. the today's to November in call that turn release, any time-sensitive different stated as During advised during time that A non-GAAP Please the Form and located details expectations. be These through our can our Form today's of to available risks we'll factors. implied call. Therefore, referring for our on I'll are we'll present tdw.com, the on no that, SEC, other or at recent these from website earnings at on measures with our GAAP tdw.com. And over to financial factors both actual XX-Q the

XXXX welcome the Quarter Earnings everyone, Tidewater Conference and morning, Good Call. West. to you, Thank Third

fleet per the to XX.X%, by improve $XXX than million as period came expected in expectations day year. The nearly cash rates generated We $XXX quarters. through free the day. progression, Year-to-date, high-grading focusing cash over free generated nicely, is our to $XXX same cash fundamentals to day continued specification cash long-term have substantial and vessels and free and of that the we Gross strategy on flow contracting expect flow, our higher. exceeding coming free at flow result $XX higher believe generation margin we revenue improve generation flow we flow continued global of improvement rates more free in over our newer, our million cash quarter came million. of last Third support in as drive relentlessly

Mediterranean projects, We as play our handlers. The execute programs, time in regulatory to pressure the in regulatory additional fourth to PSVs is our evaluate due time rapid quarter's utilization. are in globally, be along and the take the favorable out drydock Utilization day outlook anticipated that delays of the characterized out U.K. West most and to context between Asia our and and day days of dynamic down of vessels, the Africa both idle slightly adjustments year as quarter of past segments, pace our of quarters. over and to less particularly high-specification nicely, call, on need ahead third their Europe industry due factors year, ending a months jobs, the the combination seasonality higher-than-anticipated is at the and the we sector, which came particularly and weaker for rates and Americas The some more unexpectedly quarter this change causing of lack as which and with process the X of as our putting Sea, in to a increased of both smaller last North seen Pacific. from in quarter. On weekly play principally reforecasting up in improving evolve. anchor with projects second discussed frequently this active rates to regions typically our seasonally their favorable typical saw the as weather plans the advantage leading-edge moving in average customers first We've tax and day conditions X% early, rates and principally of business winter can driving activity our softened incremental outlook certain

activity are previous more during than years. vessel a to we days our growth we We broadly, what XXXX, the of as in offshore for in prepare we these drydock as XXXX, half originally less fleet fourth progress making and in market quarter will of the also outlook and than result second investments is planning compared on as been the expected the on clear our it's landscape had pace for evaluate expectation. More to incremental in into few planned is be timing investments incremental it better to the a

see continue in our by We to projects conviction customers. long-cycle

However, continued We've projects. incremental executing growth appears measured growth subdued. somewhat be take near-term our customers activity to to approach seen a

and Importantly, evaluate the projects been vessels with issues for recent contend lead infrastructure offshore and pullback the quarter's aren't being seen day for canceled, the leading-edge as assets rates. day stalled operators in day by but of outcome along as to evidenced average increase critical the increase and not has the decision both in in We've rates successes quarter, equipment. a procure rates, with time other the

rates our we impact years. X to However, as over lower continue activity past aggressively to have day levels as ability the adversely push

recently, push we it's we've still confident historically And push been with. is Over whether rates $X,XXX year, $X,XXX the upturns, which earnings. each grappling benchmark I'm But $X,XXX can day been per we has day, years, the up. are day have industry able impact the what during on to day seen increases day big or last those a over up had per is rates we've incidentally which X fantastic.

average to double visibility, you business. the for from call. We've almost order in a utilization short cash which day on contract contract merits our substantial of until to push we now the seen get about with the were day push we flow and what strategy this have We've we're we quarter's for higher coverage opportunity better at length over guidance trades rates rates some This So XXXX a past contractual at off talked to contracting few next holding rates. the and of for strategy anticipate will years, they approach duration has on which XXXX, beginning terms. the earnings of the benefit strategy and the impact realized of had on taking

where in though believe expectation and of required ultimately need newbuild Although lower certain, do of activity near move supply are further still offshore that the for the at the in near-term viable. that may vessels for some our least and expect is over we our vessels will economically rates order, the still going growth we see view, We years. day to of cause the years. attrition right it the next will is and low market day favor utilization short term. In economics number less X remain continuing firmly vessels a rates newbuild the coming point to the balance very on new given that to justify not the demand strategy, And vessel the constrain vessel supply

accelerates. Subsequent quarter's year-to-date imbalance about we As where last such, to XXXX as the the buyback million. we to million increase inception through to XXXX, And $XX in day shares level we repurchased share take have of in in of that anticipate about will nearly repurchases $XX of fourth program since today, open brings of in market. open release, that advantage repurchased the are leading-edge earnings positioned as we of from rates be our to million growth the well $XX activity will and That 'XX, and we the we shares move continue quarter market. into the

of $XX.X million compensation, open those first In so the issuing addition the to quarter employees used lieu of can XXXX. of we first which their the equity cash shares on repurchases, pay obligation from buy into that tax in in again the will shares incidentally, do open to we market market, they in employees quarter

South used over significant make spread, price and value to the for ] of least $XXX to the the quarters, near-term we've acquisition reflects generally is by shares, over investments a bid/ask lack visibility and still that long-term still and at [ increased of But aforementioned market focused cyclical shares. We past cash way at believe So done acquisitions share count risk a of solid million North X.X the that of million sharing now. America. reduce has the a on opportunities the in to we're the X

focused favorable long-term for we'll intact. repurchasing imbalance quarters fundamentals and we remains business capture of own now, rate our cash for flows remain that inclined to are this of on share the remain that the Because in next the our our summary, demand the is benefits supply So of ability and to vessel are the increase confidence confident strong, shares. X over we repurchases. In

flow shareholder cash with that confident and of our opportunities generate uncertainties for continue these to us business that take allow call commentary our provide to will value. And let free the advantage to the near-term successes outlook. past are will substantial financial in back additional turn enhancing West over me and to continue that, We

Thank you, Quintin.

the generated free cash flow. has of $XXX quarters, million Over X past Tidewater

total cash equity-enhancing reduce outstanding on for the same Over of cash $XXX outstanding cash allocated million million count million used directly our to amortization flow a and required of to the timeframe, the used debt, we've of share free of uses. $XXX $XXX of

the $XX.X our repurchase to of total authorized of authorization share an new additional are capacity Directors capacity. share to $XX.X Board has remaining and program We million. our agreements. The to announce million repurchase authorized share under We unused close in that our share permissible brings represents million repurchase unused capacity existing under quarter to pleased The repurchase debt debt our the anticipate agreements. increase by of our amount of debt capacity $XXX existing XXXX maximum first

free cash remain over cash committed we increase allocating next the to and our enhance to few that expect free We will value. quarters, flow shareholder flow

establishing refinancing, best to unsecured revolving markets. along structure, sizable our capital evaluate a the no access have we a no of near-term facility. to need goal and remain path on pursuing debt credit the as continue with opportunistic long-term a maturities achieve debt immediate potential to capital We We

we in solicitation unsecured consent the markets the appeared amendments bondholders. subsequently During as debt to terms of the were, new to amend proposed as initiated canceled achieve our capital amendments the bond Nordic process credit a in issuance. to We issued process consent our to a favorable existing unattractive. market certain the The enhancing the quarter, was view, cost third bond

maturity debt evaluate to are cash profile, free most establish to and our capital outlook structure. comfortable flow path long-term the debt continue to economically a we viable Given

release. rates sequentially, points sequentially provided found XX%. than data our duration greater up XX% subset believe PSVs saw handlers XXX be that A XX% each we to day with Leading-edge Over average meter by instructive note. few BHP a presentation across worthwhile can to the more day provide the past rates our a smaller per quarter, to sequentially the and day. website up handlers quarterly and of day yesterday in day, increases quarterly we is vessel the now our few rates, more with was provide by double-digit along X,XXX up over on investor during largest anchor rates leading-edge data our posted up with day class in classes We the anchor presents X PSVs to saw over composite X,XXX classes our classes our have $XX,XXX of quarter. up our vessel XX,XXX of our nicely representative of In that our X% of the earnings BHP per X,XXX of of within progressed during contracts. it medium vessel rates new leading-edge PSVs anchor years, strong view with how rate class moved alongside handlers, square information that to fleet class press class to momentum Day $XX,XXX to of

activity. revenue related QX the increased decline point lower days. and revenue an quarter time, the third are repair extent, to by Drydock an lesser margins maintenance days visibility XXXX, the fourth associated thoughts expenses to in margin to utilization, quarter now flat percentage Looking as the our remainder billion expense we revenue is decline from quarter. We of The be drydock growth in gross We a third and a decrease to sequentially. year billion $X.XX XXXX full and increase gross updating the essentially offshore in in to about idle to XX% $X.XX to guidance next days, to and prior quarter timing on principally with idle versus providing quarter and with expectations and forward pace higher-than-anticipated our half improve margin. expected additional the fuel look quarter guidance associated X to of are for and updated improves in anticipate fourth of increase with the

is available at to overview quarter, turn maintenance with due of of an our contracted for for days to The sits I'll and Our fourth over days. With downtime call million the backlog landscape. XX% currently revenue commercial drydock for backlog about contracted. $XXX that, unplanned of risk the revenue to Piers unanticipated the

Thank you, West, everyone. and good morning,

some I put a are regions quarter, the pantheon in XXXX of upcycles, each also will and frame context what around and XXXX try we This little our in of XXXX. as and of into where out then we previous sits go seeing

off, to back some which First outlook OSV active. The recently vessel constrained and book in in to the in which stacked well-placed are offshore until or Despite again, into small the record-breaking while aren't regional markets exploration the through the sector any AHTS long-term our constrained, have orders we construction growth short-term X% weather of fleet. summer, both day The of up is for very subsea under achieve story, of capacity classes And demand our progress remains majority market the space still supply negligible as Tidewater remain order supply market for and book. further in expected XXXX, order ease little to rates And headwinds with delivering the over start most demand and strong. the OSV with some seen of has still the picks for a prospect number from overall projects. XXXX the managed basins remains we XXXX expected of make PSV XXXX, and of newbuild the fundamentals and from a side expansion OSV fleet is strong.

to our work [ in before in of expected the QX, U.K. drilling by many projects were a from to weigh projects, to XXXX. offset And drilling exploration now the steps which with Basin in uncertainty Energy off introduced was our development in campaigns helped started Orange over we Norway, and XXXX of of programs fourth carry an Levy and expecting plan around expecting addition, drilling are Europe. number assess And regions a government starting kicking first are PSVs that projects incentive customers strong projects, QX uptick suck XXXX. Turning in quarter, the the to in to in XXXX. and which and is there as demand the XXXX. In although we're number of Uncertainty driven in that through through XXXX. In construction delayed wind QX, and regime increase as started decommissioning pushed up of year in continue U.K. by scheme is the first U.K. primarily the from that now the the half region and projects over region XXXX, pause that of will of have XXXX, in starting kick they creating more decision the this that field expected the Africa, in are of Mediterranean, which through second in tax demand help some stronger XXXX and expected with support a Visibility in Profits and expected out drilling next into QX Norwegian the of should in were the extend government's these future in to is half ] XXXX and half to see are the into the tax on in off we of XXXX. uncertainty second opaque of have to farm some half some

increase operating in seeing the the 'XX Abu contractors wishes, and uptick the we However, the EPC IOCs it as strengthen see pause by the of of demand plays on and of demand are to mainly Kingdom in which, in government both EPC as the contractors in in incremental IOCs that XXXX. In day vessel half Qatar additional continue and the offsetting the Dhabi. production vessel in from the would driven Middle through East, pressure from if country, 'XX, well government as rates some out and Angolan second to XXXX, half to drilling second demand an in in

much market, aggressively, we we if could get While for in XXXX. some at rates pace, see we appears makes constraints as into and momentum day positive 'XX a it in And this supply very positive drive XXXX. In latter to demand part its very continues remain the to see harder of is fragmented which starting set certain vessel the rates are current Americas, through to demand to Brazil and Mexico, classes.

to as government's how the won't However, uncertainty what in And Mexico much long still production intentions and some PEMEX we have long-term vis-a-vis until there term is increase the probably with are new in visibility and such, XXXX. for Brazil QX the around gas are out Mexico actual in-country to in oil and But both after beyond long-term increase in Mexico investment plans next expected year. longer term.

calls, continue first additional XXXX, of of many as on the had currently signs the for country. The many either we East of market Caribbean the in or on that with may But well robust, any U.S. horizon -- IOCs and the renewables half from seeing period. indications previous of that drilling a no into Petrobras GOM working as and demand half some 'XX. the remains mentioned the into in long-term As Coast uptick are very slowdown an during in XXXX, second Brazil's demand XXXX expect we softer-than-expected same and

to are issues which local over Malaysia XXXX, Malaysia that early have respective of to hoping the resources between been which and in Sabah can then XXXX, Sarawak. as affected these half rights Asia production, that and would of of impact the in ongoing up and Petronas sides retighten been we in by hearing and again turn mean latter for the back XXXX. region sovereign Lastly, QX We're on some the we the region in during exploration in significant balance paused, natural see East we governments that and the has regarding Pacific, AHTSs QX discussions QX both should of resolve to now of the and have a mean expect start move PSVs, which through both would supply-demand this

in we're wind respectively, in of large large and second pleased large with be remain both in much and during for will which for to our supportive on half favor very long-term We we very for business, the starting to the and region AHTSs move shipowners' several XXXX. PSVs and still see Overall, how the Australia for Taiwan, optimistic being projects also the EPCI the has the very time market in direction XXXX, right continued fundamentals in our some come. you. Thank the year

of the and time, calls, Thank At to discussion you, and aspects third also through our results. to will the of this the the will the Piers, results we how of quarter-to-quarter I the playing quarter quarter discuss the compared see that my XXXX. like of would the primarily second in good quarter primarily affected second financial I year rest some on out. morning, third And XXXX as -- previous quarter everyone. you take of focus on operational

an quarter, per from QX, of $X.XX quarter increase noted quarter the reported in $XX,XXX QX. day a the to On million net was our second of yesterday, Average the for from were main in call to rates a the in in the million in we from costs second in day revenue operating $XXX.X drydock release million, $XXX.X by day XXXX days in $XXX.X second million. our days. $XXX.X million. increase we to X.X% was utilization $XX.X quarter margin million, which was $X.X last In decrease Offsetting idle expected we increased the day of $XX,XXX result in compared in and generated operating in XXXX, an $XXX.X to revenue. and was principally quarter, third or $XXX.X $X.X million million our million the increase costs QX. utilization active As driver to of by the in increase QX. of increase in EBITDA quarter Gross Adjusted third in per the decrease QX QX. Vessel rates quarter press compared in of for slight per to was million compared The a decline repair XX.X% filed $XXX.X share. XX.X% in in income QX,

However, on vessels, our The several higher-than-anticipated million. totaling by drivers costs $X.X costs $X.X went main up million. included repair

costs also as XXX the well fuel related days, Southeast additional had higher to vessel from from idle Africa. to as mobilizing Asia We a

days, working we not expect that In $X.X the for assessment claims incurred combined decrease related increased days previously, we on operating levels accrual vessels and cost In did increasing XXX both fuel million. are of the that fuel a and higher and in of slightly related our $X XXX we vessels addition, QX we more of costs work return higher penalties. million. slightly the mobilization comparison total more higher $X.X million by as days. of in were due to customs idle which QX, were related were vessel high are occur mainly was higher in higher vessel a increases saw The drydock costs results, and million. quarter, after The drydock expenses quarters. to costs were drivers a largest delays in lower to and due to and related offset Brazil, see differences and longer drydock not X The Supplies that incurred to also consumables of XX to were the due included other to had approximately we significant to utilization timing QX. to schedule. The In and XXX mentioned idle by to where XX QX, operating million. In costs penalties drydock expense higher. durations anticipating we $X.X Australia busy components days, in in write-off costs days returning between fuel turn, costs R&M primarily totaled we repair actual which drydock which $X.X crew work about our $X Also and labor higher our main by costs of million $XXX,XXX in as increased

revenue G&A and As $X costs, supply reductions a be R&M remain result, and costs, costs million for professional vessel such million we as crew costs lower include $X.X $XX.X costs, in than about to an and expect $X.X $X will QX fuel the and due $X.X was costs Operating million, increase and flat operating costs. million quarter cost million. in to personnel third fees penalties, other in miscellaneous about QX, million other to in primarily other by costs. higher

For the drydock year, drydock we noncash quarter, we million third of expect compared our G&A million cost anticipate for approximately costs $XX.X to in Drydock QX. fourth be year ballast In related nearly to million affected in $XX vessel $XXX and the days costs IT the incurred the during We expenditures compensation. million X million, costs, utilization $XX we which of XXXX by includes stock million capital expected incurred quarter. deferred quarter. in by be about QX, Year-to-date, and DP utilization modifications, drydock points million. Drydock days is $X.X to upgrades. to have percentage $XXX affected system treatment water percentage in points. the full In installations, $XX.X X

cash year approximately expect million we XX, cash $X.X this capital million our term full $XX.X and flow quarter-over-quarter secured free The of $XX.X million QX. generated incur was due to million capital payments loan free to we increase compared to $XXX.X to of generated the million million significant flow Year-to-date, quarter, on September principal accounts have the on free expenditures. We senior flow. we in supplier have XXXX, in $XX primarily cash mainly For in a Through made receivable. in investment decrease facility agreement. working in attributable $XX

are profile. We maturity comfortable our with current debt

improve refinance a no but to about debt approximately structure. Year-to-date the $XX.X our used need XX, of in shares the overall have refinance to pursuing potential reduce in through that opportunistic would cash remain capital XXX,XXX. We debt, market number by in our September we have immediate our million

our improved stock spent the shares we in million XX%. refer Revenues utilization. XXX,XXX slightly As We except taxes. Operation in repair QX by in on regions details results. To all in the which Europe during first Mediterranean segment our a decline to and due due press quarter, improved the decline rates behalf days. margin to in were regions, decreased drydock had approximately in and The Similarly, in day experienced QX. of declined points despite and by which region, XX.X% of footnote selling our and APAC increase average about employees higher primarily gross points the Americas, the regions from our West idle region by through to on Africa segments. for decline our taxes open region, X to due conduct Results drydock saw mentioned led we the Americas higher In to margins idle quarter release results and higher which of due XX%, lieu I those by sequential XX.X% Gross and market percentage lower rates, X.X% region, primarily a $XX.X XX-Q points also improved tables a of to the days. day X more of X pay days. in and cash of gross days to the percentage by business our percentage regional of our of Asia Pacific to gross call, Discussions margin in pay margin the of X summarize employees XX%, idle about

in our of percentage regions saw respectively. and day improvements increase points, margin East and X West in gross However, we with X the rates, Middle Africa in

XXXX increase utilization, combined previous strong. a in as our gross a increase QX been improve to summary, consolidated slightly expectation, operating has costs, decrease execution should with results. In an overall in our margin expect to QX We despite in decline compared

optimistic it free to will to beyond. we we visibility existing to continue near into M&A like I for as as capital and opportunities look should the the turn we in We Tidewater. With may and over as of provide as continue investment M&A this will attractive it options, into of XXXX improve view the future they share remain our and to Although a would repurchases cash that, priority Absent accretive XXXX continue to generating our profitability option and be return term, flows In and we our will on fundamentals industry not clear present an Quintin. fleet be move long-term and strong back opportunities themselves. invest be, shareholders. to capitalize

you, All Novi, open it and for we Thank go questions. don't Sam. right. why ahead up

Your from James. the first line Rollyson question of Raymond comes with Instructions] Jim [Operator

Jim. Morning,

might Jim, your be on mute. line

do to magnitude should get uncertain sounds to this reduction know from of year-to-date I you've And puts but and and went some level, it benefits you'll level, high down you're was of next I relative this through. you year next just high think with more that guidance year, your come probably said the The the the me from think, impact. choppiness I takes. migrate little a point. Maybe rates we and We'll then a would at utilization you, Piers maybe talk have if that, prepared year, like, to drydocking this takes, about color, which thinking should costs next generally of offsetting you're lack clarity probably not puts yet, how drydocking. the X% quarter. higher got, about still

go quarter. you're different Just guidance into and as thinking in a pieces trying to get how about we to the them

only The it in be But this this up that clarity do of at right. will to who that it year. in it year give having next through cash lower op expect you're flow. have to but point than this the less a would look West as you general, that No, thing to last show think hard studying show months. drydock up than That won't we in highlight we you. there's really I costs, improved XXXX. year thank to I I couple certainly peers, is going into gone I'm Obviously, been we've as appreciate over and

West. it's Jim,

And takes year, lower. characterized increase and we out is puts should do of order appropriately. and There's You it pointed next discussed, some is so as the the we day that the uncertain. prepared magnitude forth. which as remarks, of obviously, anticipate visibility rates we in But

However, we do expect that to forward. push

on year in it which anticipate to in directly position be outlook to look as and are all-in rate a than what in discuss not given we would the we're increase So say think But better XXXX is. drydocks that a basis. the down, XXXX I day an quantify to that would we fair

on then And this guys the up have on Are asking the that with Quintin, follow-up, of had actually asking and bit purely expectations, now price, guys still as I'm queue. activity M&A this their potential the for to into talking and they're is opportunity get can season back set in be it through the consolidation you in as just price. up pause that actually and that? does maybe activity, earnings some you just And and willing early it been well, more right done. get reasonable was front we're obviously, this that? too I reflected then potential can Or curious, and about a where with rig going seeing in M&A seeing, the on

business. you sellers, you the and and for out as a hey, early managing. think continuing Too that uncertainty that volatile the highlighted factor that, our reinforce like should that this we comfortable occur certainly minds potential that. when gets times risk to when am about to of risk It's I a the in industry, a industry invest that in is feel for need very get this in with can you

However, now indicate. people I having reasonable you are as and as never the are would discussion

bit for And so time down. them takes to it think more I come a little

going just at we're be very I feel patient. to shares in so our confident these levels. repurchasing And

engaged the us discussions M&A And of do actively world. that so side. in than still around you'll probably see the I'm more M&A But

Your next Pickering with line David Partners. Smith of question comes from the Energy

to say to utilization day so, implication If be rate be is would guidance, Did down. QX flat? up, is is I just you understood. revenue expected but want the average sure make I expected For

wanted that. you to on some if guessing could ask mix. So provide just I'm color that's

That's Dave. on correct, is inference the It's That we provided from guidance West. the language QX. correct

we vessels the Asia to region delays so Americas the of and guidance regional Pacific in that U.K. seeing in specifically, the in highlights we spectra a and some the Sea combination the forth had of of as moving we're and the with the As North as are those and pieces remarks, pressures contributing idle prepared think I that discussed components. well QX [ time that some in project ], within

question, may. follow-up if I a And

the talk the there Africa, Mediterranean, the sloppy about -- other rates as vessel rates for West in operations in in Sea. act other you the PSVs You're Can might seeing to exporting or factors some beyond, there the those against North contractors large might that with recognizing friction be are countries.? Sea North other

Yes. David, it's Piers here. Yes.

Sea. market a business. rates North sloppy in very the spot it's So Obviously,

about is that, North and what's vessels, those certain specific quite our specifications having vessels, certain square think whilst firefighting like we meter capacity so XXX are the there's regions. on talk Sea I mud the things all to and which to remember also vessels, important about

in we've the vessels. we've some as are export quite previously, big where in And when need basin of down got North vessels, can the taken our vessels you the the you down do of big Mediterranean we program, to taken some the vessels, deck-space North a drilling this Orange doing mud Sea So tend -- about from actually and talked to have But for limited. instance, quarter, with a some vessels Sea North capacity. lot vessels Sea to work they specific. in They're just you're

that the I'm limiting it. the We've think in get And specific of going can is I you think about. some of down slightly can but some, to depending vessels mentioned, be Med. need factors you one specifications those the as vessels a So up. I into the that where once movement there of to around vessels, end vessels factor actual be you sure some on some the regions, terms details the on of around the there'll got is

the Lewis BTIG. comes line Greg Your with next question of from

that Yes. we drydockings more on hoping I get of quarter. the was saw little the in to color some fourth a

a how much them, bucket of just we of I roughly we that think could was were you How and vessels do figured planned? pulled If guess, off-hire, going because forward much we Africa. it that bunch I believe unplanned would much I do was, how of in was to it West it. ago, say year that had drydocking, want of And we was it

walk of let in what through some If through about think we you how -- so we drydocking that, to just 'XX. maybe want think understand could us

in that then was like just XXX that there Greg, this ]. of Sam. was days longer of XXX obviously, drydocking excess occurred QX, Yes. XX duration related, The is it timing. and was [

X happen -- I QX. that pulled had start actually QX X a boats have in some little into had into in or we QX. QX might And should that think you like later just came So then had we

that that. is a So combination XX extra of days

Okay.

there unplanned when were vessels hard dealt So like issues ago a we with with boats. like That and running what the that's kind of was like year seems resolved.

that see the to for we Yes, days There that degree, deal the going once forward. drydocks, repair of But smooths with. repair We is right? did some that into go in down still some QX. some have hopefully, they to costs

Greg, just X%. rather, we going were to right down one to and allocate down about at was thing I it want get Yes. add was X% We're to that, that -- last running we at repair year, for X%. DFR, to about now probably about

it's worse. there's getting think I yes, still not So room improve there, but to

Asia. seeing are guess, the and the small have Every as some West as of large those gauge of through for maybe just we of or pricing well to really, you around which don't what in X are we some or the could the of front basins, whatever you resets markets, pricing Africa markets? PSVs think what what large to classify the I does issues at as renewals headwinds some Sea in markets. more that the I and guess, have about we're seeing we maybe important. and in really, those pricing term And getting the you can data, largely so talk we're I then equally can little we look everyone North we outlook pricing guess, alluded the you, in in just to looks and at can look pricing need think as type data, QX in important. all then environment? And the we go where we Southeast I And contract can -- talk resets of bit them I issues you and a about. QX But market's guess, like

places like the all in saw as general, forward, not trying into past, in places And how about on Yes, remarks up Piers. -- QX that. you held some contracts from as into in vessels, it's Greg, the I and going to as well. the Med pushed well go -- well, Africa the around think alluded as QX QX spoken like but we West basins, I as actually rates for on we've and to very Yes. his QX think the said,

well vessels. on those of is pretty class QX So holding up also larger

as on little we but this little our in and of talked think remarks, a of I you a bit look 'XX, decisions of some to there again about out the bit being some visibility is made. lack

there's obviously, about the I public, much When we tend forward, been we to projects about. going has those at and people very piece, think, earlier. drilling which have know look talked

construction projects, don't well, XX-month tend a require normally which there's large-decked we're later, bit require well. they they of and on lead to, to So obviously to -- time as they tend to a some these is seeing little tend PSVs that. What X- to market come

Australia, Pac So requirements in out we're as in those seeing more Caribbean well, broadly, bit Med. little the more a coming well places and then more as in the Asia and also and of Africa like

rates So the have point we're we we optimistic all the vessels would normally year. year haven't the moment see through on the those in coming at yet in had larger that we'll don't be progress. terms as we this we tenders hold the able at have -- of to But visibility

the on line our optimistic very So, sight I have comments, of term. long it. just in we think, We said, some clear of we're as don't

Yes.

of really, than the some maybe maybe Is bigger of but year you're the so, out to almost the the maybe communicate? or drilling. called clearly that weakness trying maybe for some side construction were when guidance we the down, more sounds drilling, down the And around you like took it the issue of what on delays guide

[indiscernible] to really don't see but the construction they market that I much on think still come waiting the just side. we're see we that. there, later. to It's That's

of comes with line Rice. Crist Don Your Johnson from the next question

sounds you Can answer, from delivery from drilling of side -- around coming like focused the work it more but I the just FPSOs versus of the that percentage startup much And more drilling? your touched of delays us the sticky on on and is way your versus were remind you it campaigns. FPSOs you Can project think of new that last work schedule thinking? correct

Don, it's again. Piers

on bit little drilling the So smaller is year I think next be maybe exploration side, the than that. which of to is a XX% going book, normally

support pipe. On it's It's not obviously We just FPSOs. on on the things pipelines, subsea construction that. side, like

So of our some contracts well. as

a we've forward into little market to bit going XXXX. FPSOs. much but as the But the combination than And come they supporting to necessarily not how much All the that we projects stuff the go so as those of drilling tenders later of perhaps guys, the installation out. of there's guys from in construction pipeline more I is projects. pick come terms from we're it's we subsea said, much in as delay on the SubseaXs up exploration later just Saipans those the just subsea come and some in So It's But think Australia, a on and well. ODYSEAs. doing it's out and and should past, be, seen whitespace our construction

comment the of more from can utilization? release forward, all it in we be with tick industry the are the that necessarily away, vessel about as And really up from gone maybe quarter your that the should this no on and utilization retirements the And utilization, the maybe happening third a maybe industry. the the might going you use third aspect but see pulls bottom, in that not just construction quarter new forward we thinking from as some with weakness bottom press that and lack new of around retirements, in discussions and a there, I'm of those have out construction

it's West. Don,

We into in bit little about a a drydocks up talked reasonable picking a approach. about baseline, moving I And utilization come thinking QX. that down. XXXX, as think that's will

levels. expectation half you in market -- the a utilization in think be I back the XXXX continues as is totality, some that to QX market that improve to with and the And should when relative our so its recover think year, improved the about degree drydock to lower

not to for that vessels. just out seeing anybody Petrobras out than by that there you're new clarify, put other And was tender

see proposing to new out new or there today? vessels You build don't anybody rigs

not moment. at the No,

to tenders, Petrobras asking seen we the new said, PSVs you anything [indiscernible]. haven't as build Just

next Your line Evercore with question West James of from comes the ISI.

very in have should how the the which Quintin, utilization average you that was the thinking were forward. quarters, then that impact latter, much day third So day One, So, the to are do X rate maybe just missed? increase the moving that the secondarily, pure Hopefully, unplanned just believe driven. clear impressive, How is think through wanted been vessels? a your bit it's quarter. the that X rate rates And we Or utilization, last seen below increase? up versus on things on is what of not we about we with was of planned day drydocks day day downtimes in rate actual rate we seeing higher expecting. increases just perhaps or from mind we've that that

Yes.

in couple know going been over the Sam. hard real months. You this this give what, Sam has I'm to to studying

like also And had utilization, as that. XX our some from higher also boats, added we another that there idle added that the days. DFR XX then days QX. which Africa, moved several QX, QX to problems drop Southeast time. time XX the But of idle mentioned, on we XX, James, to had to from In like Yes. the drydock boats days We in cetera. some had et of That days one had, like of Asia was had play another something factors. quarter, I engine with than our days. Obviously, we we were

-- actually you So that that points all affected almost X add went points percentage percentage couple by when a to utilization up, QX from QX. from down

add me let And thing. more James, one

rates. there goes is a through and of an I high But of think think regions are a day like a large U.K. And Piers that impacted, his those think mix rate typically, global pullback, not as rates. it's boats, that hit market, other sector. the impact whether not Piers a day And U.K. product not had related quickly. reallocate the broadly, indicating, and When team sector -- sector those is mix to on they high pretty an to to question region significant result, downtime a was that impact. has spot the day I the And day the down bit is working region. I and or North have been on rate part that vessels [indiscernible] spot the come impact product your that market tends as into and boat Sea

that where think things geographically they're has about talking and product we're occur. what I in an So at when like QX mix impact

the I fleeing leave and profit should just else think guys the everybody now, you region. given in is U.K. taxes the general sector for

process start timing customer as when no we plans, month maybe a their right hesitant When which clear you even let you there. reason much maybe so? there's going too, decisions now next wind shorter-term go question in plans. have plans this What's lot those it, the Or What let we assume a to made? up? are their we're the 'XX, into I about long-term or Is short-term, would a be But to know that the will you be the then that you now. starts we're shallow or impact? better are telling longer-term on also hey, is projects, I But that budget as of base plans. know versus just So farm they or through construction a deepwater a, We'll visibility maybe or is water recognize visibility on right to to decisions year? going make

Good James, question. it's Piers. Yes.

this the visibility seeing by of a longer-term those end think on we'll more of I start plans. some little bit year,

seen we've seen anything. suggesting any -- canceling haven't as indications [indiscernible] not We we've mentioned,

but and at drilling companies. which noise Basin, of saying, of And those of like delayed you at the pretty all 'XX, a campaigns noise pretty are the But supporting and the from terms aggressive that decision-making our things that's base. instance, -- people from think is the lot higher 'XX, some for customer oil in Namibia, maybe I in number a we're a in processes the of down pullback there look, around obviously no election look has supporting of, a obviously, Orange down like successes to the we're moment. cycles there's ups development if we'd get move there first in been

There's on indicators. starting this maybe in So in Caribbean projects. and that as positive region to Again, and year that in Same still more in drilling we've then some spoken -- region, 'XX we're some come slight very exploration a people well. about the into FPSOs 'XX. next so wells pauses expecting install few year back,

So anything. not any indicators or we're anybody real canceling back of pulling seeing

their So but projects at moves those on continue. own its we're not positive down very certainly And obviously, slowing will that pace, Brazil, they're Petrobras side.

side. ups the certainly I that as we'll think yes, to IOCs the publicly their longer-term So from by of start this end year, plans the hear more from higher and to

with of line the from comes Securities. Stene Fredrik question next Your Clarksons

side. all that to to the My more color so XXXX been relates for even guide allocation, on so far, at Thanks detail has M&A it's difficult given the even actually in moment. and on this if question capital

are obviously right guys players. any the to also doing M&A talked presents But so one in record that have transactions listed of if and willing You great accretive do the of a fewer about type you're transaction you you itself, have almost of market. track

stock So will time. price sentiment any given your equity track price or at

disabled the Interested -- transactions? in are prices matter. that also to if M&A players fluctuate type they have or they private that with also any was not with on to you discussions wondering that, also has you enabled So were way, companies a of do anything Or say have are I hear to sentiment? listed, of understand

for more M&A take your -- as to lot $XX. get is $XXX. low these done. probably while that been It's not as done, on again of question. And transactions this as to price than these Fredrik, high surprise that thanks year and to and off A been they done. and process, during as a most We've transactions a and of we have has a the been get germinate take anyone,

been ] [ of of speaking we're it's because who companies And that volatile them, we're listed lot of marketing really of out there, they only private so, us. them a sophisticated, you And equity, the most know are one time. a to with they're know because some

pain the well. as feeling they're So

its So through, the work as as I gets course, sometimes work think feel and through way it thinkings people's forth. market but think like into it maybe of way quickly dislocated downside. exaggerates so might its should doesn't therefore and people the you And,

And don't point. at so want they to price that particular

in price has between term sense a and find it for to have from you still Tidewater to value the perspective. make prices, So a longer long-term

complicates we're I adjust it to deal will. and are you price would that sophisticated the doesn't. volatile most But with dealing they but helps So they to price deal process. tell process, the of the people stable A time need it, very a

That's helpful. very

at far that you have quarter so and point, -- to you backlog a for contracted contracted Just remarks? really question. say of did you the a different able not to, what the follow-up, but one similar quick XXXX, something for prepared amount base this the in fourth Are about

backlog We're right a prepared it's Fredrik, to now. West. give XXXX

point. not about put here sit today. as is prepared $XXX that, providing at 'XX to for this is I'm there detail out around we million. XXXX But incremental that Our But backlog backlog sure our we're

comes from question Don of Crist next the Rice. Your with line Johnson

else to that you the on debt pay one call the find January you extinguish changed. get anything ask that use off the cash to out tried an just that today to wanted any covenant could and XXXX? Or that XX% for take term balance to on using the plan new or can't M&A Is question those thoughts just cash first sheet around forward hold debt? I at loans, you going

I'd repurchase honestly. much just rather shares,

done, would prefer. don't deal all. feel to I takes longer And to similar anybody But questions, some process do than a at answers that, get could absent the would I the the need I if that. So delever earlier to

the found would I And we is the year in to way. most last that of return path the course, shareholders that So shares. over constructive repurchasing

back I turn closing over the for Kneen now Quintin to will call remarks.

closing look to remarks updating We Well, you, from again no Novi. forward me. February. Okay. in everybody listen, Thank

today's gentlemen, and you concludes Ladies Thank all that joining. for call.

now may disconnect. You