“We are executing on the plan we laid out on the first quarter call after reassessing our business outlook as a result of the pandemic,” stated Quintin Kneen, President and also Chief Executive Officer of Tidewater (NYSE: TDW) as the overseas solutions significant launched outcomes for the 3 and also 9 months finished September 30, 2020. “As of the third quarter we were positive cash flow from operations and free cash flow positive for the nine-month period. We are dedicated to remaining free cash flow positive for the year, and we are repositioning our shore base operations and our fleet so our business can remain free cash flow positive under the currently depressed market conditions.”
Tidewater reported earnings for the 3 and also 9 months finished September 30, 2020, of $86.5 million and also $305.2 million, specifically compared to $119.8 million and also $367.8 million, for the comparable durations in 2014. Net losses for the 3 and also 9 months finished September 30, 2020, were $37.9 million ($ 0.94 per share) and also $167.0 million ($ 4.15 per share), compared to $44.2 million ($ 1.15 per share) and also $81.9 million ($ 2.17 per share) for in 2014’s comparable duration.
Excluding problems costs, Tidewater would certainly have reported a bottom line for the 3 months finished September 30, 2020 of $35.3 million ($ 0.87 per typical share) and also a bottom line for the 9 months finished September 30, 2020 of $42.6 million ($ 1.06 per typical share).
“Tidewater generated $30.0 million of free cash flow in the third-quarter, its best quarterly performance since its restructuring in 2017,” commentedKneen “That cash was used to repurchase $27.7 million of our outstanding bonds at 95% of par, and we completed the quarter with $33.7 million of net debt. We recently launched a tender for another $50.0 million of the bonds at 100.5% of par, and we simultaneously launched a consent to relax the financial covenants in 2021.”
Kneen kept in mind that the functional effect of the pandemic and also general reduced market need had actually been serious and also tough.
“Domestic and international travel restrictions have started to ease in some regions, and as a result we have been able to improve the frequency of crew changes and allow our mariners to return home safely to their families and to more easily return to work,” statedKneen “The scenario continues to be much from addressed, nevertheless, and also we remain to advise international federal government sychronisation to sustain open traveling for seafarers as assigned crucial employees. For 2020, we remain to see the added expenses connected with handling the traveling ineffectiveness to be about $20.0 million, and also this remains in enhancement to the reduced degree of productivity from reduced general need.
“Another key element to our strategy is high-grading our fleet through strategic acquisitions and disposals. We disposed of 22 vessels in the third quarter for $10.6 million and early in the fourth quarter we made an acquisition of 11 modern crew boats for $5.3 million.”