Tidewater reports a red ink quarter

NOVEMBER 12, 2018 — Offshore services giant Tidewater Inc. (NYSE:TDW) today reported a net loss for the three months ended September 30, 2018, of $30.9 million, or $1.16 per common share, on revenues of $99.2 million.

Included in the $30.9 million net loss for the quarter were $16.9 million ($0.63 per common share) in non-cash asset impairments that resulted from impairment reviews and $3.2 million ($0.12 per common share) in general and administrative expenses related to the proposed combination with GulfMark Offshore)

"Our third quarter results reflect a market that is continuing to show signs of improvement," said Tidewater President and CEO John Rynd. "Trends in tendering, requests for quotes and customer dialogue are all positive, but we do not expect to see material improvements in activity or average day rates until the second half of 2019 or later. In short, the offshore market is moving in the right direction, but we think the pace of improvement will be gradual and the path toward a broad-based industry recovery will likely include a number of turns, twists and possible setbacks. For the just-completed September quarter, market dynamics generally fell in line with our expectations, with lower vessel operating margin reflecting higher than anticipated maintenance costs and rate pressure in several regions. Utilization of our active fleet, while also down from last quarter, remained higher than what we experienced earlier in the year, further indicating that we are continuing to work our way out of a market trough."

Rynd said that, assuming favorable outcomes to stockholder votes, Tidewater expects to complete its combination with GulfMark on November 15 and "our team’s near-term efforts will be focused on executing our integration plan, with the objective of achieving targeted cost and operational synergies as efficiently and effectively as possible."

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