Tidewater 4th-qtr Profit Rises On Cost Controls

NEW ORLEANS (AP) — Tidewater Inc. on Wednesday said its fiscal fourth-quarter profit rose 29 percent as the company, which provides water transportation and services for the oil industry, contained costs and saw an increase in international revenue.

For the three months ended March 31, Tidewater earned $109.7 million, or $2.13 per share, compared with $85.4 million, or $1.63 per share, in the year-earlier period.

Revenue rose 3 percent to $341.6 million, from $331.4 million last year. Revenue from vessels operating internationally rose 10 percent to $304.5 million, while U.S. vessel revenue fell 20 percent to $29.7 million. Other marine service revenues fell 57 percent, to $7.5 million.

Analysts polled by Thomson Reuters expected profit of $1.98 per share on revenue of $348.7 million.

Tidewater's costs and expenses declined 8 percent during the quarter to $214.3 million. Vessel operating costs slipped 5 percent to $147.5 million, while the cost of other marine revenue dropped 57 percent to $6.2 million.

While revenue came in short of analyst estimates, Capital One Southcoast analyst Pierre Conner said Tidewater reported an "impressive beat on costs." The better-than-expected earnings results were mainly due to cost containment, along with rising rates, as orders decreased, he said. He kept an "Add" rating and a $60 price target on the stock.