Tidewater's CEO Presents At 2012 Barclays CEO-Energy Conference (Transcript)

Tidewater Inc. (TDW)

2012 Barclays CEO-Energy Conference Transcript

September 6, 2012 8:25 AM ET

Executives

Jeff Platt - President and CEO

Quinn Fanning - Executive Vice President and CFO

Analysts

Presentation

Unidentified Analyst

Good morning, everyone. I want to keep things moving right along. Up next we have Jeff Platt, President and CEO of Tidewater. Jeff was promoted to the CEO role in June, taking over following Dean Taylor’s retirement. Jeff has been with Tidewater since 1996 and served as the company’s COO prior to his promotion. Please welcome Jeff Platt.

Jeff Platt

Well, good morning, everybody. Thank you for attending here for Tidewater. We are happy to be at Barclays and take you through the Tidewater story. First, we’ve got to get through the Safe Harbor statement to satisfy the lawyers and I think that’s about as much time, we won’t spend on that.

Key takeaways today as Quinn and I do the presentation, and walk through it, again with Tidewater, story begins with safety, that’s the first thing that we need to provide to our clients. It’s absolutely paramount in the industry.

Certainly, after Macondo, that’s been all more underscored. Our journey to safe operations had begun much earlier than that, have a slide today to show you where we are in comparison with some other companies, clients of ours as well to show the safety programs and the effects that they have on our operations.

The tide is turning, recently over the last 12 months or so, when you look at the rig counts that’s the single biggest proxy for our, the strength of our business. Our vessels do other things than supply and support drilling rigs, but when you look at the health of the drilling operations worldwide, that’s probably the single one proxy that gives you an indication of the state of our business. So we’re drilling that a little bit.

And I will take a look at how we’ve done historically through the peaks and valleys through the through-cycle, four cycle going from a trough up to a peak and then back to what we think we are now as is climbing up the other side of the recent trough. To give you some perspective on how the company has performed through that and certainly, where we are today, I think an indication of where we think this can go.

Always, Tidewater, the big the story for us is we have the largest worldwide scope of operations worldwide, value proportion that we provide to our clients is whether they drill in offshore China, Australia, the Middle East, Brazil, in the U.S.. There is Tidewater operations nearby.

And really today, the two, there is only two major oilfield offshore provinces that we don’t have Tidewater vessels working in, one is the Caspian, we have work there recently, recently in the last couple of years, and also in the North Sea, that traditionally for us has been a holding pattern for vessels. Today we don’t have anything, as little as a year ago. We had a couple of vessels, in fact working that spot market. But other than that, there are Tidewater operations nearby and in every major oil -- offshore oil province in the world.

Again, the story for us over the last seven, eight years has been the recapitalization of fleet. My predecessor Dean Taylor, this was his duty. He inherited a fleet, relatively old vessels. But over the last 10 years and mostly recently in the last five or six, we have invested heavily and today, we think we have the most capable and certainly, the youngest world of fleet operating in our space.

And then we’ve done all that, at the same time, we have been, I think very conservative approach. We have taken on a little bit of debt. Quinn has done a nice job. With that, we have got ourselves in a shape that, quite frankly, we made the reinvestments and the balance sheet is still world class as far as we are concerning, certainly in our space it is the envy I think of most of our competitors.

Talking a little bit about safety, we used the snake, holding a snake that’s just a visual. We use that internally and externally. Again, we’ve got 8,000 employees worldwide, about 80 different cultures and nationalities, lots of different languages.

When you talk about holding a dangerous snake, everyone can realize that the dangerous snake looks bad and can be a bad thing, if you speak English, if you speak Spanish, if you speak French. So we look at our operations like holding that snake, if you let it go that snake can turnaround and bite you. So, again, that just the visualization.

And looking at the statistics, this is going back to 2002, Tidewater is the blue rectangle by comparison that’s Dow Chemical, Chevron and Exxon/Mobil. Again, all of those are companies I think that are known for their world class commitment to safety and their safety results.

This is a recording of total recordable incident ratio, rates per 200,000 men hours worked, less is better than more. You see the whole industry is a whole. It’s a downward trend which is a good thing.

And Tidewater in blue, again, I think, we back up very favorably and this is something that we have to do, its absolutely a must for the clients and its certainly a right thing to do as far as our personal and employees are concerned.

Read the rest of this transcript for free on seekingalpha.com

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