Tidewater says its ready to capitalize on the big increase in OSV demand

Posted on May 12, 2022

Tidewater Inc. announced yesterday that revenue for the three months ended March 31, 2022, was $105.7 million, compared with $83.5 million for the three months ended March 31, 2021.

Tidewater’s net losses for the three months ended March 31, 2022, were $12.2 million (29 cents per common share) compared with $35.3 million (87 cents per common share) for the three months ended March 31, 2021.

Quintin Kneen, Tidewater’s president and CEO, stated that the company is “uniquely positioned to capitalize on what is looking to be a truly transformational period for vessel activity and day rate improvements over the next several quarters.”

Kneen said that during the first quarter, Tidewater entered into contracts  for 16 vessels with charter dates beginning after the first quarter. The average day rate improvement across these vessels’ contracts compared to their previous contracts is over 20%, with Tidewater’s largest PSVs in this group seeing an average day rate improvement of nearly 30%.

“We believe the improvements in day rates are a clear signal of the fundamental shift in vessel supply and demand, and that as additional tendering continues and existing contracts roll-off, upward acceleration of day rates will continue,” Kneen said in a statement.

“We remain confident that the second half of 2022 will represent a meaningful uplift in vessel demand with 2023, representing yet another leg up,” he told analysts today during the company’s quarterly earnings call.

Kneen addressed offshore wind. “One thing that we should keep in mind is that the world is getting that much more oriented towards offshore wind. And so those take a combination of vessels, both PSVs and anchor handlers, and we’re starting to see that level of activity increase. It’s relatively small today, but I anticipate it’s going to be increasing nicely” in the U.S. market over the next couple of years.

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