News Details

HOUSTON--(BUSINESS WIRE)-- Tidewater Inc. (NYSE:TDW) announced today revenue for the three and six months ended June 30, 2023 of $215.0 million and $408.1 million, respectively, compared with $163.4 million and $269.2 million, respectively, for the three and six months ended June 30, 2022. Tidewater's net income for the three and six months ended June 30, 2023, was $22.6 million ($0.43 per common share) and $33.3 million ($0.64 per common share), respectively, compared with net losses of $25.6 million ($0.61 per common share) and $37.7 million ($0.91 per common share), respectively, for the three and six months ended June 30, 2022. Included in the net income for the three and six months ended June 30, 2023 were merger and severance expenses of $1.2 and $2.7 million, respectively. Excluding these items, we would have reported net income for the three and six months ended June 30, 2023 of $23.8 million ($0.46 per common share) and $36.0 million ($0.69 per common share), respectively. Included in the net losses for the three and six months ended June 30, 2022 were merger and severance expenses of $7.3 and $9.6 million, respectively; and loss on warrants of $14.2 million for both periods. Included in the net losses for the six months ended June 30, 2022 were long-lived asset impairment credit and gain on bargain purchase of $1.8 million. Excluding these items, we would have reported net losses for the three and six months ended June 30, 2022 of $4.1 million ($0.10 per common share) and $15.7 million ($0.38 per common share), respectively.

Quintin Kneen, Tidewater’s President and Chief Executive Officer, commented, “The second quarter continued the trend of new quarterly cyclical revenue and global average day rate high-water marks. Consolidated global average day rates improved approximately $1,400 per day sequentially, approaching a $5,500 per day increase since the end of 2021. The pace of our day rate improvement picked up from the prior quarter as commercial and tendering activity remained robust and an improvement in seasonal factors helped drive shorter term day rate realization. The momentum in day rates is being driven by a global supply shortage of large and small offshore vessels, and as a result each of our five segments realized meaningful day rate expansions during the second quarter. Expected long-term increases in offshore capital spending, the increasingly constructive tone of conversations with our customers in terms of vessel contract duration and future start dates for projects, coupled with the existing and expected future constraints in vessel supply, point to as compelling of a long-term market backdrop for our business as we have ever seen.

“We are excited about the addition of the high-quality, high-specification fleet of PSVs we acquired from Solstad Offshore and have already successfully integrated five of these vessels into the Tidewater vessel operational infrastructure. Driven largely by the completion of the Solstad Offshore vessel acquisition, revenue for the third quarter should be up at least $80.0 million. We updated our view of the combined fleets and of the market for the remainder of the year and we reiterate our 2023 annual guidance of approximately $1.03 billion of revenue and approximately $500.0 million of vessel operating margin.

“Revenue for the quarter totaled $215.0 million, an increase of $21.9 million, or 11.3% sequentially. Gross margin improved materially during the quarter, driven by day rate increases across the fleet. Vessel gross margin expanded over four percentage points to 43.8%, a rate of improvement we anticipate continuing for the remainder of the year. Utilization declined modestly to 79.4% from 80.6% in the prior quarter. Utilization was down modestly during the second quarter as we withheld capacity and repositioned the fleet to maximize long-term day rates on a global basis, which resulted in more days of frictional unemployment as we targeted higher margin geographies for our vessels. The opportunity cost of this strategy to maximize day rates was approximately $8.0 million in the second quarter. Drydock days were up approximately 17.0% sequentially, but drydock expense was down 31.8% to $21.4 million in the second quarter, bringing the total year-to-date drydock spend to $52.7 million. With the additional 37 PSVs we acquired from Solstad Offshore in early July, we now expect to incur approximately $87.0 million in drydock expense for the full year of 2023, up from the approximately $77.0 million we previously anticipated for the Tidewater fleet.

“Turning to our regional operating results, the North Sea experienced a significant improvement in revenue as seasonal factors abated, with day rates up approximately $3,400, or 23.0%, pushing up vessel cash margin by over nine percentage points to 45.8%. West Africa continued to see momentum during the quarter with day rates up approximately $1,400 per day, or 11.0%, and vessel cash margin expanding by over seven percentage points to 53.6%. Interestingly, day rates in the Middle East were up approximately $770 per day, or 8.0%; this movement is particularly notable as the Middle East is a market which typically does not see large day rate movements. Day rate expansion in the Americas and Asia Pacific were up approximately 2.0% and 3.0%, respectively, sequentially following a period of robust day rate expansion in the first quarter driven by a meaningful number of new contracts. Additionally, in the Americas region during the second quarter we reserved approximately $4.0 million related to a special purpose customer receivable balance that we determined to be uncollectible.

“The material improvement in day rates, revenue, and operating margin is possible due to the enormous efforts of our dedicated and high performing employees. We are excited to welcome our new employees from Solstad Offshore and remain committed to providing a safe and rewarding environment for our employees as we move forward together building the safest, most sustainable, most reliable, most profitable, high specification offshore energy support vessel fleet in the world.”

In addition to the number of outstanding shares, as of June 30, 2023, the company also has the following in-the-money warrants.

Common shares outstanding			50,895,235
New Creditor Warrants (strike price $0.001 per common share)			81,244
GulfMark Creditor Warrants (strike price $0.01 per common share)			100,179
Total			51,076,658

Tidewater will hold a conference call to discuss results for the three months ending June 30, 2023 on August 8, 2023, at 8:00 a.m. Central Time. Investors and interested parties may listen to the earnings conference call via telephone by calling +1.888.770.7135 if calling from the U.S. or Canada (+1.929.203.0820 if calling from outside the U.S.) and provide Conference ID: 2444624 prior to the scheduled start time. A live webcast of the call will also be available in the Investor Relations section of Tidewater’s website at investor.tdw.com.

A replay of the conference call will be available beginning at 11:00 a.m. Central Time on August 8, 2023 and will continue until 11:59 p.m. Central Time on September 8, 2023. To access the replay, visit the Investor Relations section of Tidewater’s website at investor.tdw.com.

About Tidewater

Tidewater owns and operates the largest fleet of offshore support vessels in the industry, with 65 years of experience supporting offshore energy exploration, production and offshore wind activities worldwide. To learn more, visit www.tdw.com.

Cautionary Statement

This news release contains “forward-looking statements” within the meaning of the U.S. federal securities laws – that is, any statements that are not historical facts. Such statements often contain words such as “expect,” “believe,” “think,” “anticipate,” “predict,” “plan,” “assume,” “estimate,” “forecast,” “target,” “projections,” “intend,” “should,” “will,” “shall” and other similar words. Forward-looking statements address matters that are, to varying degrees, uncertain and based on our management’s current expectations and beliefs concerning future developments and their potential impact on Tidewater Inc. and its subsidiaries (the “Company”).

These forward-looking statements involve risks and uncertainties that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements, including, among others: fluctuations in worldwide energy demand and oil and gas prices; fleet additions by competitors and industry overcapacity; limited capital resources available to replenish our asset base as needed, including through acquisitions or vessel construction, and to fund our capital expenditure needs; uncertainty of global financial market conditions and potential constraints in accessing capital or credit if and when needed with favorable terms, if at all; changes in decisions and capital spending by customers based on industry expectations for offshore exploration, field development and production; consolidation of our customer base; loss of a major customer; changing customer demands for vessel specifications, which may make some of our older vessels technologically obsolete for certain customer projects or in certain markets; rapid technological changes; delays and other problems associated with vessel maintenance; the continued availability of qualified personnel and our ability to attract and retain them; the operating risks normally incident to our lines of business, including the potential impact of liquidated counterparties; our ability to comply with covenants in our indentures and other debt instruments; acts of terrorism and piracy; the impact of regional or global public health crises or pandemics; the impact of potential information technology, cybersecurity or data security breaches; integration of acquired businesses and entry into new lines of business; disagreements with our joint venture partners; natural disasters or significant weather conditions; unsettled political conditions, war, civil unrest and governmental actions, such as expropriation or enforcement of customs or other laws that are not well developed or consistently enforced; risks associated with our international operations, including local content, local currency or similar requirements especially in higher political risk countries where we operate; interest rate and foreign currency fluctuations; labor changes proposed by international conventions; increased regulatory burdens and oversight; changes in laws governing the taxation of foreign source income; retention of skilled workers; enforcement of laws related to the environment, labor and foreign corrupt practices; increased global concern, regulation and scrutiny regarding climate change; increased stockholder activism; the potential liability for remedial actions or assessments under existing or future environmental regulations or litigation; the effects of asserted and unasserted claims and the extent of available insurance coverage; the resolution of pending legal proceedings; and other risks and uncertainties detailed in our most recent Forms 10-K, Form 10-Qs and Form 8-Ks filed with or furnished to the SEC.

If one or more of these or other risks or uncertainties materialize (or the consequences of any such development changes), or should our underlying assumptions prove incorrect, actual results or outcomes may vary materially from those reflected in our forward-looking statements. Forward-looking and other statements in this presentation regarding our environmental, social and other sustainability plans, goals or activities are not an indication that these statements are necessarily material to investors or required to be disclosed in our filings with the SEC. In addition, historical, current, and forward-looking environmental, social and sustainability-related statements may be based on standards still developing, internal controls and processes that we continue to evolve, and assumptions subject to change in the future. Statements in this release are made as of the date hereof, and the Company disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.

Financial information is displayed beginning on the next page.

The financial statements and supplementary information presented in this press release were not audited. This press release presents extracts from the Consolidated Balance Sheets at June 30, 2023 and December 31, 2022; the Consolidated Statements of Operations and Consolidated Statements of Equity for the three and six months ended June 30, 2023 and 2022; and the Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022. Extracts are drawn from the June 30, 2023 unaudited quarterly and year to date financial statements and the December 31, 2022 audited annual financial statements of Tidewater Inc. All per-share amounts are stated on a diluted basis.

TIDEWATER INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands, except per share data)
		Three Months Ended								Six Months Ended
		June 30, 2023				June 30, 2022				June 30, 2023				June 30, 2022
Revenues:
Vessel revenues		$	210,323			$	162,175			$	401,503			$	266,051
Other operating revenues			4,638				1,272				6,562				3,125
Total revenues			214,961				163,447				408,065				269,176
Costs and expenses:
Vessel operating costs			118,264				100,257				233,723				168,768
Costs of other operating revenues			373				483				1,524				844
General and administrative			26,013				27,804				49,558				46,021
Depreciation and amortization			32,768				31,766				63,434				58,423
Long-lived asset impairment credit			—				—				—				(500	)
(Gain) loss on asset dispositions, net			(1,404	)			1,297				(3,620	)			1,090
Total costs and expenses			176,014				161,607				344,619				274,646
Operating income (loss)			38,947				1,840				63,446				(5,470	)
Other income (expense):
Foreign exchange loss			(3,819	)			(1,881	)			(1,471	)			(935	)
Equity in net earnings (losses) of unconsolidated companies			25				(244	)			25				(244	)
Interest income and other, net			2,790				349				2,920				3,835
Loss on warrants			—				(14,175	)			—				(14,175	)
Interest and other debt costs, net			(4,731	)			(4,284	)			(8,921	)			(8,459	)
Total other expense			(5,735	)			(20,235	)			(7,447	)			(19,978	)
Income (loss) before income taxes			33,212				(18,395	)			55,999				(25,448	)
Income tax expense			11,284				6,619				23,255				11,837
Net income (loss)			21,928				(25,014	)			32,744				(37,285	)
Less: Net income (loss) attributable to noncontrolling interests			(656	)			567				(578	)			464
Net income (loss) attributable to Tidewater Inc.		$	22,584			$	(25,581	)		$	33,322			$	(37,749	)
Basic income (loss) per common share		$	0.44			$	(0.61	)		$	0.66			$	(0.91	)
Diluted income (loss) per common share		$	0.43			$	(0.61	)		$	0.64			$	(0.91	)
Weighted average common shares outstanding			50,857				41,814				50,731				41,614
Dilutive effect of warrants, restricted stock units and stock options			1,148				—				1,260				—
Adjusted weighted average common shares			52,005				41,814				51,991				41,614

TIDEWATER INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands, except share and par value data)
		June 30, 2023				December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents		$	171,261			$	164,192
Restricted cash			1,242				1,241
Trade and other receivables, less allowance for credit losses of $14,758 and $14,060 at June 30, 2023 and December 31, 2022, respectively			195,906				156,465
Marine operating supplies			22,495				30,830
Assets held for sale			630				4,195
Prepaid expenses and other current assets			18,958				20,985
Total current assets			410,492				377,908
Net properties and equipment			784,873				796,655
Deferred drydocking and survey costs			92,481				61,080
Indemnification assets			22,678				28,369
Other assets			33,640				33,644
Total assets		$	1,344,164			$	1,297,656
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	69,822			$	38,946
Accrued costs and expenses			91,875				105,518
Current portion of long-term debt			2,441				—
Other current liabilities			42,305				50,323
Total current liabilities			206,443				194,787
Long-term debt			179,573				169,036
Other liabilities and deferred credits			65,621				67,843
Commitments and contingencies
Equity:
Common stock			51				51
Additional paid-in-capital			1,554,793				1,556,990
Accumulated deficit			(666,327	)			(699,649	)
Accumulated other comprehensive loss			4,566				8,576
Total stockholders' equity			893,083				865,968
Noncontrolling interests			(556	)			22
Total equity			892,527				865,990
Total liabilities and equity		$	1,344,164			$	1,297,656

TIDEWATER INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (In Thousands)
		Three Months Ended								Six Months Ended
		June 30, 2023				June 30, 2022				June 30, 2023				June 30, 2022
Net income (loss)		$	21,928			$	(25,014	)		$	32,744			$	(37,285	)
Other comprehensive income (loss):
Unrealized loss on note receivable			(184	)			(846	)			(316	)			(846	)
Change in liability of pension plans			(3,504	)			138				(3,694	)			(59	)
Total comprehensive income (loss)		$	18,240			$	(25,722	)		$	28,734			$	(38,190	)

TIDEWATER INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands)
		Six Months				Six Months
		Ended				Ended
		June 30, 2023				June 30, 2022
Operating activities:
Net income (loss)		$	32,744			$	(37,285	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization			42,144				40,287
Amortization of deferred drydocking and survey costs			21,290				18,136
Amortization of debt premiums and discounts			842				765
Provision for deferred income taxes			34				145
(Gain) loss on asset dispositions, net			(3,620	)			1,090
Gain on pension settlement			(1,807	)			—
Gain on bargain purchase			—				(1,300	)
Long-lived asset impairment credit			—				(500	)
Loss on warrants			—				14,175
Stock-based compensation expense			4,751				3,421
Changes in assets and liabilities, net of effects of business acquisition:
Trade and other receivables			(37,919	)			(35,085	)
Changes in due to/from affiliate, net			—				(20	)
Accounts payable			30,876				8,072
Accrued expenses			(13,544	)			2,354
Deferred drydocking and survey costs			(52,691	)			(31,063	)
Other, net			(565	)			(16,419	)
Net cash provided by (used in) operating activities			22,535				(33,227	)
Cash flows from investing activities:
Proceeds from sales of assets			8,659				8,163
Acquisitions, net of cash acquired			—				(29,525	)
Additions to properties and equipment			(17,500	)			(5,380	)
Net cash used in investing activities			(8,841	)			(26,742	)
Cash flows from financing activities:
Acquisition of non-controlling interest in a majority owned subsidiary			(1,427	)			—
Debt issuance and modification costs			—				(371	)
Tax on share-based awards			(5,521	)			(2,176	)
Net cash used in financing activities			(6,948	)			(2,547	)
Net change in cash, cash equivalents and restricted cash			6,746				(62,516	)
Cash, cash equivalents and restricted cash at beginning of period			167,977				154,276
Cash, cash equivalents and restricted cash at end of period		$	174,723			$	91,760

Supplemental disclosure of cash flow information:
Cash paid during the year for:
Interest, net of amounts capitalized		$	7,846			$	7,626
Income taxes		$	27,201			$	9,330
Supplemental disclosure of noncash investing activities:
Acquisition of SPO		$	—			$	162,648
Purchase of three vessels		$	12,171			$	—
Supplemental disclosure of noncash financing activities:
Warrants issued for SPO acquisition		$	—			$	162,648
Debt incurred for the purchase of three vessels		$	12,171			$	—

Note: Cash, cash equivalents and restricted cash at June 30, 2023 includes $2.2 million in long-term restricted cash, which is included in other assets in our consolidated balance sheet.

TIDEWATER INC. CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (In Thousands)
		Three Months Ended
														Accumulated
						Additional								other				Non
		Common				paid-in				Accumulated				comprehensive				controlling
		stock				capital				deficit				income (loss)				interest				Total
Balance at March 31, 2023		$	51			$	1,553,919			$	(688,911	)		$	8,254			$	100			$	873,413
Total comprehensive income (loss)			—				—				22,584				(3,688	)			(656	)			18,240
Amortization of share-based awards			—				874				—				—				—				874
Balance at June 30, 2023		$	51			$	1,554,793			$	(666,327	)		$	4,566			$	(556	)		$	892,527
Balance at March 31, 2022		$	42			$	1,376,934			$	(690,068	)		$	2,471			$	363			$	689,742
Total comprehensive loss			—				—				(25,581	)			(708	)			567				(25,722	)
SPO acquisition warrants			—				176,823				—				—				—				176,823
Amortization of share-based awards			—				804				—				—				—				804
Balance at June 30, 2022		$	42			$	1,554,561			$	(715,649	)		$	1,763			$	930			$	841,647

		Six Months Ended
														Accumulated
						Additional								other				Non
		Common				paid-in				Accumulated				comprehensive				controlling
		stock				capital				deficit				income (loss)				interest				Total
Balance at December 31, 2022		$	51			$	1,556,990			$	(699,649	)		$	8,576			$	22			$	865,990
Total comprehensive income (loss)			—				—				33,322				(4,010	)			(578	)			28,734
Acquisition of non-controlling interest in a majority owned subsidiary			—				(1,427	)			—				—				—				(1,427	)
Amortization of share-based awards			—				(770	)			—				—				—				(770	)
Balance at June 30, 2023		$	51			$	1,554,793			$	(666,327	)		$	4,566			$	(556	)		$	892,527
Balance at December 31, 2021		$	41			$	1,376,494			$	(677,900	)		$	2,668			$	466			$	701,769
Total comprehensive loss			—				—				(37,749	)			(905	)			464				(38,190	)
Issuance of common stock			1				(1	)			—				—				—				—
SPO acquisition warrants			—				176,823				—				—				—				176,823
Amortization of share-based awards			—				1,245				—				—				—				1,245
Balance at June 30, 2022		$	42			$	1,554,561			$	(715,649	)		$	1,763			$	930			$	841,647

The company’s vessel revenues and vessel operating costs and the related percentage of total vessel revenues, were as follows:

(In Thousands)		Three Months Ended												Six Months Ended
		June 30, 2023						June 30, 2022						June 30, 2023						June 30, 2022
Vessel revenues:
Americas		$	50,376		24	%		$	37,520		23	%		$	98,063		24	%		$	65,964		25	%
Asia Pacific			22,585		11	%			16,362		10	%			44,609		11	%			21,259		8	%
Middle East			31,856		15	%			28,396		18	%			62,618		16	%			48,614		18	%
Europe/Mediterranean			39,295		19	%			32,475		20	%			70,545		18	%			56,394		21	%
West Africa			66,211		31	%			47,422		29	%			125,668		31	%			73,820		28	%
Total vessel revenues		$	210,323		100	%		$	162,175		100	%		$	401,503		100	%		$	266,051		100	%
Vessel operating costs:
Crew costs		$	68,007		32	%		$	60,639		37	%		$	134,650		34	%		$	101,476		38	%
Repair and maintenance			16,834		8	%			13,477		8	%			33,486		8	%			22,938		9	%
Insurance			2,168		1	%			1,366		1	%			4,173		1	%			2,750		1	%
Fuel, lube and supplies			13,958		7	%			11,521		7	%			27,513		7	%			18,597		7	%
Other			17,297		8	%			13,254		8	%			33,901		8	%			23,007		9	%
Total vessel operating costs			118,264		56	%			100,257		62	%			233,723		58	%			168,768		63	%
Vessel operating margin (A)		$	92,059		44	%		$	61,918		38	%		$	167,780		42	%		$	97,283		37	%

Note (A): Vessel operating margin equals vessel revenues less vessel operating costs.

The company’s operating loss and other components of loss before income taxes and its related percentage of total revenues, were as follows:

(In Thousands)		Three Months Ended												Six Months Ended
		June 30, 2023						June 30, 2022						June 30, 2023						June 30, 2022
Vessel operating profit (loss):
Americas		$	6,245		3	%		$	5,930		4	%		$	14,207		3	%		$	5,848		2	%
Asia Pacific			7,026		3	%			(899	)	(1	)%			12,594		3	%			1,274		0	%
Middle East			(1,657	)	(1	)%			(307	)	(0	)%			(2,001	)	(0	)%			(2,190	)	(1	)%
Europe/Mediterranean			8,307		4	%			4,262		3	%			10,343		3	%			1,833		1	%
West Africa			25,474		12	%			9,270		6	%			42,695		10	%			12,485		5	%
Other operating profit			4,265		2	%			790		0	%			5,038		1	%			2,282		1	%
		49,660			23	%		19,046			12	%		82,876			20	%		21,532			8	%
Corporate expenses (A)			(12,117	)	(6	)%			(15,909	)	(10	)%			(23,050	)	(5	)%			(26,412	)	(10	)%
Gain on asset dispositions, net			1,404		1	%			(1,297	)	(1	)%			3,620		1	%			(1,090	)	(0	)%
Long-lived asset impairment credit			—		0	%			—		0	%			—		0	%			500		0	%
Operating income (loss)		$	38,947		18	%		$	1,840		1	%		$	63,446		16	%		$	(5,470	)	(2	)%

Note (A): General and administrative expenses for the three months and six months ended June 30, 2023 include stock-based compensation of $2.7 million and $4.8 million, respectively. General and administrative expenses for the three and six months ended June 30, 2022 include stock-based compensation of $1.9 million and $3.4 million, respectively. In addition, vessel operating and general and administrative costs for the three months and six months ended June 30, 2023, include $1.3 million and $2.7 million in one-time acquisition, restructuring and integration related costs, respectively. Vessel operating and general and administrative costs for the three and six months ended June 30, 2022, include $7.3 million and $9.6 million in one-time acquisition, restructuring and integration related costs, respectively.

TIDEWATER INC. CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) – QUARTERLY DATA (In Thousands, except per share data)
		Three Months Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
		2023				2023				2022				2022				2022
Revenues:
Vessel revenues		$	210,323			$	191,180			$	185,106			$	190,247			$	162,175
Other operating revenues			4,638				1,924				1,640				1,515				1,272
Total revenues			214,961				193,104				186,746				191,762				163,447
Costs and expenses:
Vessel operating costs (A)			118,264				115,459				115,496				113,037				100,257
Costs of other operating revenue			373				1,151				694				592				483
General and administrative (A)			26,013				23,545				28,633				27,267				27,804
Depreciation and amortization			32,768				30,666				29,881				30,856				31,766
Long-lived asset impairment and other			—				—				—				1,214				—
(Gain) loss on asset dispositions, net			(1,404	)			(2,216	)			(1,076	)			(264	)			1,297
Total operating costs and expenses			176,014				168,605				173,628				172,702				161,607
Operating income			38,947				24,499				13,118				19,060				1,840
Other income (expense):
Foreign exchange gain (loss)			(3,819	)			2,348				2,105				(3,997	)			(1,881	)
Equity in net earnings (losses) of unconsolidated companies			25				—				14				9				(244	)
Interest income and other, net			2,790				130				981				581				349
Loss on warrants			—				—				—				—				(14,175	)
Interest and other debt costs, net			(4,731	)			(4,190	)			(4,339	)			(4,391	)			(4,284	)
Total other expense			(5,735	)			(1,712	)			(1,239	)			(7,798	)			(20,235	)
Income (loss) before income taxes			33,212				22,787				11,879				11,262				(18,395	)
Income tax expense			11,284				11,971				1,697				6,352				6,619
Net income (loss)			21,928				10,816				10,182				4,910				(25,014	)
Net income (loss) attributable to noncontrolling interests			(656	)			78				(438	)			(470	)			567
Net income (loss) attributable to Tidewater Inc.		$	22,584			$	10,738			$	10,620			$	5,380			$	(25,581	)
Basic income (loss) per common share		$	0.44			$	0.21			$	0.22			$	0.12			$	(0.61	)
Diluted income (loss) per common share		$	0.43			$	0.21			$	0.20			$	0.10			$	(0.61	)
Weighted average common shares outstanding			50,857				50,604				48,766				44,451				41,814
Dilutive effect of warrants, restricted stock units and stock options			1,148				1,368				3,069				7,069				—
Adjusted weighted average common shares			52,005				51,972				51,835				51,520				41,814
Vessel operating margin		$	92,059			$	75,721			$	69,610			$	77,210			$	61,918
Note (A): One-time acquisition, restructuring and integration related costs		$	1,242			$	1,426			$	5,150			$	4,332			$	7,314

TIDEWATER INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands)
		June 30,				March 31,				December 31,				September 30,				June 30,
		2023				2023				2022				2022				2022
ASSETS
Current assets:
Cash and cash equivalents		$	171,261			$	165,145			$	164,192			$	115,014			$	87,981
Restricted cash			1,242				4,972				1,241				4,965				1,240
Trade and other receivables, net			195,906				182,198				156,465				181,646				189,259
Marine operating supplies			22,495				24,448				30,830				20,764				21,182
Assets held for sale			630				695				4,195				6,815				6,862
Prepaid expenses and other current assets			18,958				18,978				20,985				17,509				23,259
Total current assets			410,492				396,436				377,908				346,713				329,783
Net properties and equipment			784,873				786,168				796,655				815,990				838,612
Deferred drydocking and survey costs			92,481				82,787				61,080				57,877				53,661
Indemnification assets			22,678				27,698				28,369				30,117				30,269
Other assets			33,640				34,058				33,644				32,364				30,410
Total assets		$	1,344,164			$	1,327,147			$	1,297,656			$	1,283,061			$	1,282,735
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable		$	69,822			$	64,775			$	38,946			$	31,829			$	30,537
Accrued costs and expenses			91,875				107,348				105,518				105,945				109,212
Current portion of long-term debt			2,441				—				—				—				—
Other current liabilities			42,305				43,220				50,323				46,629				47,872
Total current liabilities			206,443				215,343				194,787				184,403				187,621
Long-term debt			179,573				169,423				169,036				168,649				168,279
Other liabilities and deferred credits			65,621				68,968				67,843				82,910				85,188
Equity:
Common stock			51				51				51				46				42
Additional paid-in-capital			1,554,793				1,553,919				1,556,990				1,555,388				1,554,561
Accumulated deficit			(666,327	)			(688,911	)			(699,649	)			(710,269	)			(715,649	)
Accumulated other comprehensive income			4,566				8,254				8,576				1,474				1,763
Total stockholders' equity			893,083				873,313				865,968				846,639				840,717
Noncontrolling interests			(556	)			100				22				460				930
Total equity			892,527				873,413				865,990				847,099				841,647
Total liabilities and equity		$	1,344,164			$	1,327,147			$	1,297,656			$	1,283,061			$	1,282,735

TIDEWATER INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS – QUARTERLY DATA (In Thousands)
		Three Months Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
		2023				2023				2022				2022				2022
Operating activities:
Net income (loss)		$	21,928			$	10,816			$	10,182			$	4,910			$	(25,014	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization			21,096				21,048				20,983				22,252				22,614
Amortization of deferred drydocking and survey costs			11,672				9,618				8,898				8,604				9,152
Amortization of debt premiums and discounts			422				420				522				392				390
(Provision) benefit for deferred income taxes			(1	)			35				(98	)			(11	)			(32	)
(Gain) loss on asset dispositions, net			(1,404	)			(2,216	)			(1,076	)			(264	)			1,297
Gain on pension settlement			(1,807	)			—				—				—				—
Long-lived asset impairment and other			—				—				—				1,214				—
Loss on warrants			—				—				—				—				14,175
Stock-based compensation expense			2,648				2,103				2,028				1,923				1,963
Changes in assets and liabilities, net of effects of business acquisition:
Trade and other receivables			(12,186	)			(25,733	)			26,172				4,784				(19,515	)
Accounts payable			5,047				25,829				7,117				1,292				5,247
Accrued expenses			(15,374	)			1,830				(427	)			(3,267	)			(853	)
Deferred drydocking and survey costs			(21,366	)			(31,325	)			(12,117	)			(12,820	)			(18,451	)
Other, net			(934	)			369				(16,844	)			(896	)			(12,576	)
Net cash provided by (used in) operating activities			9,741				12,794				45,340				28,113				(21,603	)
Cash flows from investing activities:
Proceeds from sales of assets			2,943				5,716				5,093				312				3,535
Acquisitions, net of cash acquired			—				—				—				8,785				(28,486	)
Additions to properties and equipment			(8,849	)			(8,651	)			(4,929	)			(6,328	)			(4,151	)
Net cash provided by (used in) investing activities			(5,906	)			(2,935	)			164				2,769				(29,102	)
Cash flows from financing activities:
Proceeds from stock offering			—				—				117,202				70,630				—
Repurchase of SPO acquisition warrants			—				—				(117,202	)			(70,630	)			—
Acquisition of non-controlling interest in a majority owned subsidiary			—				(1,427	)			—				—				—
Debt issuance and modification costs			—				—				—				(22	)			(108	)
Tax on share-based awards			(1,774	)			(3,747	)			(47	)			(100	)			(1,159	)
Net cash used in financing activities			(1,774	)			(5,174	)			(47	)			(122	)			(1,267	)
Net change in cash, cash equivalents and restricted cash			2,061				4,685				45,457				30,760				(51,972	)
Cash, cash equivalents and restricted cash at beginning of period			172,662				167,977				122,520				91,760				143,732
Cash, cash equivalents and restricted cash at end of period		$	174,723			$	172,662			$	167,977			$	122,520			$	91,760
Supplemental disclosure of cash flow information:
Cash paid during the year for:
Interest, net of amounts capitalized		$	7,748			$	98			$	7,575			$	353			$	7,626
Income taxes		$	10,144			$	17,057			$	6,132			$	6,813			$	6,130
Supplemental disclosure of noncash investing activities:
Acquisition of SPO		$	—			$	—			$	—			$	—			$	162,648
Purchase of three vessels		$	12,171			$	—			$	—			$	—			$	—
Supplemental disclosure of noncash financing activities:
Warrants issued for SPO acquisition		$	—			$	—			$	—			$	—			$	162,648
Repurchase of SPO acquisition warrants		$	—			$	—			$	373			$	992			$	—
Debt incurred for purchase of three vessels		$	12,171			$	—			$	—			$	—			$	—

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)
		Three Months Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
		2023				2023				2022				2022				2022
VESSEL REVENUE BY VESSEL CLASS
Americas fleet:
PSV > 900		$	20,316			$	20,556			$	17,814			$	15,676			$	15,204
PSV < 900			19,134				17,390				16,486				16,460				15,470
AHTS > 16K			3,425				3,395				2,873				3,429				2,390
AHTS 8 - 16K			2,807				2,807				1,899				1,601				1,130
AHTS 4 - 8K			1,480				1,521				1,553				1,185				1,438
Other			3,214				2,018				1,160				771				1,888
Total			50,376				47,687				41,785				39,122				37,520
Asia Pacific fleet:
PSV > 900			9,648				9,101				6,692				10,896				7,258
PSV < 900			5,811				5,133				3,120				3,891				3,006
AHTS > 16K			2,065				1,342				3,260				3,128				1,504
AHTS 8 - 16K			5,001				5,397				4,364				4,333				2,940
AHTS 4 - 8K			8				998				1,584				1,605				1,433
Other			52				53				50				49				221
Total			22,585				22,024				19,070				23,902				16,362
Middle East fleet:
PSV > 900			1,211				1,192				1,218				2,771				2,814
PSV < 900			16,812				14,965				15,517				16,063				13,798
AHTS > 16K			1,217				2,316				2,351				2,350				1,750
AHTS 8 - 16K			4,276				4,593				4,146				3,397				3,808
AHTS 4 - 8K			8,340				7,696				7,343				6,605				6,226
Total			31,856				30,762				30,575				31,186				28,396
Europe/Mediterranean fleet:
PSV > 900			29,592				23,368				24,783				27,167				23,684
PSV < 900			7,205				5,153				7,874				7,092				6,868
AHTS > 16K			2,228				2,511				643				5,251				1,776
Other			270				218				182				192				147
Total			39,295				31,250				33,482				39,702				32,475
West Africa fleet:
PSV > 900			11,550				9,900				10,534				8,041				6,487
PSV < 900			25,419				24,835				20,494				18,249				13,801
AHTS > 16K			9,129				6,237				5,385				6,152				4,315
AHTS 8 - 16K			9,870				9,827				11,810				11,236				10,724
AHTS 4 - 8K			3,496				2,360				5,780				6,445				4,576
Other			6,747				6,298				6,191				6,212				7,519
Total			66,211				59,457				60,194				56,335				47,422
Worldwide fleet:
PSV > 900			72,317				64,117				61,041				64,551				55,447
PSV < 900			74,381				67,476				63,491				61,755				52,943
AHTS > 16K			18,064