October 9, 2003

Tidewater warns on earnings

Tidewater Inc. (NYSE: TDW) announced today that it expects fiscal second quarter financial results to be below current analysts' earnings expectations. For the three months ended September 30, 2003, the company is currently estimating diluted earnings per share of $0.20-$0.23. The Thomson First Call consensus earnings estimate is currently $0.31 per share.

Tidewater says lower utilization for its supply and towing supply vessels in certain international markets, particularly in Nigeria, Venezuela, and Brazil, negatively impacted international vessel revenues and profitability.

"Additionally, continued weakness in the Gulf of Mexico drilling market will result in an operating loss from domestic operations in the second fiscal quarter, despite significant cost cutting efforts that took place during the quarter," says the company.

The full financial impact of these cost cutting measures is expected to be realized beginning in the fiscal third quarter. I

In line with prior guidance, notes the announcement, worldwide vessel operating costs were higher than the June 30, 2003 quarter as a result of higher drydocking costs and incremental costs related to new vessels delivered at the end of the June 2003 quarter and during the September 2003 quarter. All of these factors are estimated to lead to a decline of $0.09-$0.12 earnings per share in the quarter ended September 30, compared to the $0.32 earnings per share reported for the immediately preceding quarter ended June 30, 2003.

Tidewater Inc. owns and operates nearly 570 vessels, the world's largest fleet of vessels serving the global offshore energy industry

Tell a friend: