# Tidewater Inc: Form 10-Q for the period ended Sep 30, 2024

- Company: [Tidewater Inc](/companies/tdw.md) (CIK 98222)
- Form: 10-Q
- Filed: 2024-11-07
- Accepted by EDGAR: Nov 7, 2024, 21:52 ET
- Period: 2024-09-30
- Accession: 0001437749-24-033961
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/98222/000143774924033961/tdw20240930_10q.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/98222/000143774924033961/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2024-09-30.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2024-07-01 to 2024-09-30 | $340.4m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Revenue | 9 months, 2024-01-01 to 2024-09-30 | $1.00bn | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Operating income | 3 months, 2024-07-01 to 2024-09-30 | $69.9m | us-gaap:OperatingIncomeLoss |
| Operating income | 9 months, 2024-01-01 to 2024-09-30 | $230.0m | us-gaap:OperatingIncomeLoss |
| Income tax | 3 months, 2024-07-01 to 2024-09-30 | $12.9m | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 9 months, 2024-01-01 to 2024-09-30 | $33.8m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2024-07-01 to 2024-09-30 | $46.4m | us-gaap:NetIncomeLoss |
| Net income | 9 months, 2024-01-01 to 2024-09-30 | $143.8m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2024-07-01 to 2024-09-30 | $0.87 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 9 months, 2024-01-01 to 2024-09-30 | $2.70 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2024-07-01 to 2024-09-30 | $0.88 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 9 months, 2024-01-01 to 2024-09-30 | $2.74 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2024-07-01 to 2024-09-30 | 53,083,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 9 months, 2024-01-01 to 2024-09-30 | 53,154,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 9 months, 2024-01-01 to 2024-09-30 | $182.5m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 9 months, 2024-01-01 to 2024-09-30 | $23.0m | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Share repurchases | 9 months, 2024-01-01 to 2024-09-30 | $46.6m | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Cash and equivalents | at 2024-09-30 | $280.8m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2024-09-30 | $626.0m | us-gaap:AssetsCurrent |
| Total assets | at 2024-09-30 | $2.05bn | us-gaap:Assets |
| Current liabilities | at 2024-09-30 | $273.6m | us-gaap:LiabilitiesCurrent |
| Long-term debt | at 2024-09-30 | $597.4m | us-gaap:LongTermDebtNoncurrent |
| Current portion of debt | at 2024-09-30 | $53.1m | us-gaap:LongTermDebtCurrent |
| Shareholders' equity | at 2024-09-30 | $1.12bn | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 65,295 characters.

### Forward-Looking Statements

Certain of the statements included in this Form 10-Q constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, which includes any statements that are not historical facts. Such statements often contain words such as “expect,” “believe,” “think,” “anticipate,” “predict,” “plan,” “assume,” “estimate,” “forecast,” “goal,” “target,” “projections,” “intend,” “should,” “will,” “shall” and other similar words. Forward-looking statements are made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Tidewater Inc. and its subsidiaries. There can be no assurance that future developments affecting Tidewater Inc. and its subsidiaries will be those anticipated by management. These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and there are certain important factors 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 natural gas prices; 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 in the energy industry and the 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; the 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; our participation in industry wide, multi-employer, defined pension plans; 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 this Quarterly Report on Form 10-Q (Form 10-Q) and other filings we make with 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 Form 10-Q 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 will continue to evolve, and assumptions subject to change in the future. Statements in this Form 10-Q are made as of the date of this filing, and Tidewater disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise. In addition, see “Risk Factors” included in our Annual Report on Form 10-K (Annual Report) and in this Form 10-Q for a discussion of certain risks relating to our business and investment in our securities.

In certain places in this Form 10-Q, we may refer to reports published by third parties that purport to describe trends or developments in energy production and drilling and exploration activity and we specifically disclaim any responsibility for the accuracy and completeness of such information and have undertaken no steps to update or independently verify such information.

The forward-looking statements should be considered in the context of the risk factors listed above, discussed in this Form 10-Q, and discussed in our Annual Report as updated by subsequent filings with the SEC. Investors and prospective investors are cautioned not to rely unduly on such forward-looking statements, which speak only as of the date hereof. Management disclaims any obligation to update or revise any forward-looking statements contained herein to reflect new information, future events, or developments.

Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) should be read in conjunction with the accompanying unaudited condensed consolidated financial statements and related notes thereto included in “Item 1. Financial Statements” and with our Annual Report. The following discussion and analysis contain forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors, including those set forth under “Risk Factors” in Item 1A of our Annual Report and elsewhere in this Form-10Q.

### EXECUTIVE SUMMARY AND CURRENT BUSINESS OUTLOOK

### Tidewater

We are one of the most experienced international operators in the offshore energy industry with a history spanning over 65 years. Our vessels and associated services support all phases of offshore crude oil and natural gas (also referred to as oil and gas) exploration activities, field development, production and maintenance, as well as windfarm development and maintenance. Our services include towing of, and anchor handling for, mobile offshore drilling units; transporting supplies and personnel necessary to sustain drilling, workover, production activities, field abandonment, dismantlement and restoration activities; offshore construction and seismic and subsea support; geotechnical survey support for windfarm construction, and a variety of other specialized services such as pipe and cable laying. In addition, we have one of the broadest geographic operating footprints in the offshore vessel industry. Our global operating footprint allows us to react quickly to changing local market conditions and to be responsive to the changing requirements of the many customers with which we believe we have strong relationships.

On March 7, 2023, we entered into an Agreement for the Sale and Purchase of Vessels, Charter Parties and Other Assets, which was amended on June 30, 2023 (Acquisition Agreement), with certain subsidiaries of Solstad Offshore ASA, a Norwegian public limited company (collectively, Sellers), pursuant to which we agreed to acquire from the Sellers (Solstad Acquisition): (i) 37 platform supply vessels owned by the Sellers (Solstad Vessels); and (ii) the charter parties governing certain of the Solstad Vessels. On July 5, 2023, we completed the Solstad Acquisition for an aggregate cash purchase price of approximately $594.2 million, consisting of the $577.0 million base purchase price plus an initial $3.0 million purchase price adjustment; $3.2 million for working capital items comprised of fuel and lubricants; and $11.0 million in estimated transaction costs, consisting primarily of advisory and legal fees. The purchase price was funded through a combination of cash on hand and net proceeds from both the Senior Secured Term Loan and the 10.375% Senior Unsecured Notes due July 2028.

Prior to August 1, 2023, we had outstanding Series A Warrants, exercise price of $57.06, and Series B Warrants, exercise price of $62.28, both of which expired on July 31, 2023. During July 2023, an aggregate of 2.0 million Series A Warrants and Series B Warrants were exercised, and 1.9 million shares of common stock were issued in exchange for $111.5 million in cash proceeds. The remaining 3.1 million unexercised Series A Warrants and Series B Warrants expired according to their terms on July 31, 2023.

At September 30, 2024, we owned 213 vessels with an average age of 12.4 years available to serve the global offshore energy industry.

### MD&A Objective and Principal Factors That Drive Our Results, Cash Flows and Liquidity

Our MD&A is designed to provide information about our financial condition and results of operations from management’s perspective.

Our revenues, net earnings and cash flows from operations are largely dependent upon the activity level of our offshore marine vessel fleet. As is the case with the numerous other vessel operators in our industry, our business activity is largely dependent on the level of exploration, field development and production activity of our customers. Our customers’ business activity, in turn, is dependent on current and expected crude oil and natural gas prices, which fluctuate depending on expected future levels of supply and demand for crude oil and natural gas, and on estimates of the cost to find, develop and produce crude oil and natural gas reserves. Our objective throughout the MD&A is to discuss how these factors affected our historical results and where applicable, how we expect these factors to impact our future results and future liquidity.

Our revenues in all segments are driven primarily by our active fleet size, active vessel utilization and day rates. Because a sizeable portion of our operating and depreciation costs do not change proportionally with changes in revenue, our operating profit is largely dependent on revenue levels.

Operating costs consist primarily of crew costs, repair and maintenance costs, insurance costs, fuel, lube oil and supplies costs and other vessel operating costs. Fleet size, fleet composition, geographic areas of operation, supply and demand for marine personnel, and local labor requirements are the major factors impacting overall crew costs in all segments. In addition, our newer, more technologically sophisticated vessels generally require a greater number of specially trained, more highly compensated fleet personnel than our older, smaller and less sophisticated vessels. Crew costs may increase if competition for skilled personnel intensifies.

Costs related to the recertification of vessels are deferred and amortized over 30 months on a straight-line basis. Maintenance costs incurred at the time of the recertification drydocking not related to the recertification of the vessel are expensed as incurred. Costs related to vessel improvements that either extend the vessel’s useful life or increase the vessel’s functionality are capitalized and depreciated.

Insurance costs are dependent on a variety of factors, including our safety record and pricing in the insurance markets, and can fluctuate over time. Our vessels are generally insured for up to their estimated fair market value in order to cover damage or loss. We also purchase coverage for potential liabilities stemming from third-party losses and cyber security breaches with limits that we believe are reasonable for our business and operations, but do not generally purchase business interruption insurance or similar coverage. During the past three years, we have not incurred any material costs, fines or penalties due to a direct or third-party vendor cybersecurity breach. Insurance limits are reviewed annually, and third-party coverage is purchased based on the expected scope of ongoing operations and the cost of third-party coverage.

Fuel and lube costs can fluctuate in any given period depending on the number and distance of vessel mobilizations, the number of active vessels off charter, drydockings, and changes in fuel prices. We also incur vessel operating costs aggregated as “other” vessel operating costs. These costs consist of brokers’ commissions, training costs, satellite communication fees, agent fees, port fees, freight and other miscellaneous costs. Brokers’ commissions are incurred primarily in our non-United States operations where brokers sometimes assist in obtaining work. Brokers generally are paid a percentage of day rates and, accordingly, commissions paid to brokers generally fluctuate in accordance with vessel revenue.

We discuss our liquidity in terms of cash flow that we generate from our operations. Our primary sources of capital have been our cash on hand, internally generated funds including operating cash flow, vessel sales and long-term debt financing. From time to time, we also issue stock or stock-based financial instruments either in the open market or as currency in acquisitions. This ability is impacted by existing market conditions.

### Industry Conditions and Outlook

Our business is exposed to numerous macro factors that influence our outlook and expectations. Our outlook and expectations described herein are based solely on the market as we see it today, and therefore, subject to various changing conditions that impact the oil and gas industry.

We expect the supply-demand balance in the global offshore oil and gas markets to continue to be favorable for offshore activities by the major oil and gas producers. Factors driving this outlook include demand for hydrocarbons continuing to grow internationally, the Organization of the Petroleum Exporting Countries Plus (OPEC+) remaining proactive in maintaining adequate and stable oil prices, combined with a diminishing global supply of vessels to support the offshore energy industry. Energy prices are expected to remain volatile due to ongoing geopolitical conflicts, global inflationary trends, recent issues within OPEC+ regarding market share and pricing expectations, and associated actions from central banks as well as uncertainties surrounding the growth rates expected in key world economies.

Our business is directly impacted by the level of activity in worldwide offshore oil and gas exploration, development and production, which in turn is influenced by trends in oil and gas prices and the condition of the energy markets and, in particular, the willingness of energy companies to spend on offshore operational activities and capital projects. This activity includes improving demand for floating drilling rigs, which also directly impacts our industry.

Oil and gas prices are affected by a host of geopolitical and economic forces, including the fundamental principles of supply and demand. Offshore oil and gas exploration and development activities often require higher oil or gas prices to justify the higher expenditure levels of offshore activities compared to conventional onshore activities. Prices are subject to significant uncertainty and, as a result, are extremely volatile. Over the past several years, oil and gas commodity pricing has been affected by (i) a global pandemic, which included lock downs by major oil consuming nations; (ii) an ongoing war in eastern Europe between Russia and Ukraine, which includes sanctions on Russian oil production; (iii) an Israeli/Palestinian conflict, which has expanded into Lebanon, including threats from Iran, that has resulted in increased disruption of shipping in the Middle East; (iv) OPEC+ production quotas, market share expectations and pricing considerations; (v) resource growth in non-OPEC+ nations; (vi) capital allocation and discipline within the major oil and gas companies thereby limiting funds previously available for resource development; (vii) economies of major consuming nations; and (viii) increased activism related to the perceived responsibility of the oil and gas sector for climate change. These factors, as well as numerous other regional conflicts in producing regions, have at various times caused or exacerbated significant swings in oil and gas pricing, which in turn has affected the capital budgets of oil and gas companies. Despite the volatility in spot oil prices seen in recent years, our customers tend to consider less volatile medium and long-term prices in making offshore investment decisions. We continue to see positive upstream investment momentum in both the international and domestic markets. We believe these markets are driven by resilient long-cycle offshore developments, production capacity expansions and increased resource exploitation activities.

We are one of the world’s largest operators of offshore support vessels and we have operations in most of the world’s offshore oil and gas basins. We have also pursued opportunities in the sustainability arena, including the support of offshore wind energy generation, and continue to invest in our fleet to improve performance, increase efficiencies and reduce our emissions and environmental impact.

We have experienced a sustained period of growth in offshore exploration and production in the past two years which has been accompanied by much higher levels of activity and higher day rates for our vessels. However, some customers have recently paused or delayed additional activity on some projects, for a number of reasons, including logistical and supply chain bottlenecks, further evaluation of exploration results and longer than anticipated finalization of strategies for further development on successful projects in current and new regions. This has caused some temporary delays in certain projects and some realignment of future projects resulting in unanticipated idle time for some of our vessels. Although our business is impacted by a number of macro factors, including those factors discussed herein, which influence our outlook and expectations given the current volatile conditions in our industry, our day rates and vessel utilization remain elevated, and the industry outlook continues to be positive. We are of the opinion that the underlying fundamentals, particularly energy source supply and demand, will support a multi-year increase in offshore upstream development spending. We believe there will be sufficient opportunities for us to operate our vessels in this sector for many years to come.

### RESULTS OF OPERATIONS

Each of our five operating segments is led by senior management, the results are reviewed and resources are allocated by our Chief Executive Officer, the chief operating decision maker. Discrete financial information is available for each of the segments, and our Chief Executive Officer uses the results of each of the operating segments for resource allocation and performance evaluation.

The results of operations tables included below for the total company and the individual segments disclose financial results supplemented with average vessels, vessel utilization and average day rates.

Vessel utilization is determined primarily by market conditions and to a lesser extent by drydocking requirements. Vessel day rates are determined by the demand created largely through the level of offshore exploration, field development and production spending by energy companies relative to the supply of offshore support vessels. Specifications of available equipment and the scope of service provided may also influence vessel day rates. Vessel utilization rates are calculated by dividing the number of days a vessel works during a reporting period by the number of days the vessel is available to work in the reporting period. As such, stacked vessels depress utilization rates because stacked vessels are considered available to work and are included in the calculation of utilization rates. Average day rates are calculated by dividing the revenue a vessel earns during a reporting period by the number of days the vessel worked in the reporting period.

Total vessel utilization is calculated on all vessels in service (which includes stacked vessels, vessels held for sale and vessels in drydock). Active utilization is calculated on active vessels (which excludes vessels held for sale and stacked vessels). Average day rates are calculated based on total vessel days worked. Vessel operating costs per active days is calculated based on total available days less stacked days. Total vessels in service also includes three vessels not owned by us, that are under bareboat charter agreements. These vessels are included in all of our vessel statistics but are not included in the owned vessel count.

### Consolidated Results – Three Months Ended September 30, 2024 compared to June 30, 2024

*(In Thousands except for statistics)*

|  | Three Months Ended September 30, 2024 | June 30, 2024 | Change | % Change |
| --- | ---: | ---: | ---: | ---: |
| Total revenue | $340,356 | $339,230 | $1,126 | 0% |
| Costs and expenses: |  |  |  |  |
| Vessel operating costs: |  |  |  |  |
| Crew costs | 107,708 | 106,231 | (1,477) | (1)% |
| Repair and maintenance | 25,554 | 24,743 | (811) | (3)% |
| Insurance | 2,965 | 2,625 | (340) | (13)% |
| Fuel, lube and supplies | 17,213 | 15,562 | (1,651) | (11)% |
| Other | 25,214 | 27,352 | 2,138 | 8% |
| Total vessel operating costs | 178,654 | 176,513 | (2,141) | (1)% |
| Costs of other operating revenues | 901 | 816 | (85) | (10)% |
| General and administrative | 28,471 | 26,329 | (2,142) | (8)% |
| Depreciation and amortization | 62,435 | 59,445 | (2,990) | (5)% |
| Gain on asset dispositions, net | (51) | (2,000) | (1,949) | (97)% |
| Total costs and expenses | 270,410 | 261,103 | (9,307) | (4)% |
| Operating income | 69,946 | 78,127 | (8,181) | (10)% |
| Other income (expense): |  |  |  |  |
| Foreign exchange gain (loss) | 5,522 | (2,376) | 7,898 | 332% |
| Equity in net earnings of unconsolidated companies | — | 5 | (5) | (100)% |
| Interest income and other, net | 1,028 | 1,175 | (147) | (13)% |
| Interest and other debt costs, net | (17,622) | (19,127) | 1,505 | 8% |
| Total other expense | (11,072) | (20,323) | 9,251 | 46% |
| Income before income taxes | 58,874 | 57,804 | 1,070 | 2% |
| Income tax expense | 12,883 | 7,887 | (4,996) | (63)% |
| Net income | 45,991 | 49,917 | (3,926) | (8)% |
| Net loss attributable to noncontrolling interests | (380) | (437) | 57 | 13% |
| Net income attributable to Tidewater Inc. | $46,371 | $50,354 | $(3,983) | (8)% |
| Select operating statistics: |  |  |  |  |
| Utilization | 76.2% | 80.5% | (4.3)% |  |
| Active utilization | 76.2% | 80.7% | (4.5)% |  |
| Average vessel day rates | $22,275 | $21,130 | $1,145 | 5.4% |
| Vessel operating cost per active day | $8,989 | $8,972 | $(17) | (0.2)% |
| Average total vessels | 216 | 217 | (1) |  |
| Average stacked vessels | — | (1) | 1 |  |
| Average active vessels | 216 | 216 | — |  |

#### Revenue:

- Increase primarily due to higher day rates in the third quarter of 2024 compared to the second quarter of 2024 as demand remains strong for our vessels. The positive day rate effect on our revenues was partially offset by an increase in idle days between contracts as we moved vessels between areas and there were delays in returning to work for some vessels that had contract expirations. In addition, we have had some idle time due to temporary customer delays as they evaluate future activities on projects.
- Active utilization decreased due to increased idle time and higher mobilization days.

#### Vessel operating costs:

- Increase primarily due to higher crew costs and higher fuel costs associated with increased idle time. These cost components were largely offset by lower other operating costs primarily related to a customs duty settlement in the second quarter.

#### General and administrative:

- Increase primarily due to higher compensation costs associated with increased headcount and higher professional fees in the third quarter compared to the second quarter.

#### Depreciation and amortization:

- Increase due to higher amortization of drydock costs.

#### Gain on asset dispositions, net:

- During the third quarter of 2024, we had no vessel sales and minimal other asset sales. During the second quarter of 2024, we sold one vessel from our active fleet for $2.4 million and recognized a $2.0 million gain.

#### Interest expense:

- Decrease due to lower debt as we made $62.5 million in principal payments in the third quarter of 2024 and $14.0 million in the second quarter of 2024.

#### Interest income and other, net:

- Decrease primarily due to lower cash balances in the third quarter.

#### Foreign exchange losses:

- Our foreign exchange gains in the third quarter of 2024 and losses in the second quarter of 2024, were primarily the result of the settlement and revaluation of various foreign currency balances due to a strengthening/weakening of the U.S. Dollar against the Norwegian Kroner, Brazilian Real, Angola Kwanza, British Pound and Euro.

#### Income tax expense:

- We are subject to taxes on our income in many jurisdictions worldwide and our actual tax expense can vary disproportionally to overall net income due to the mix of profits and losses in these foreign tax jurisdictions. Our tax expense for the third and second quarters of 2024 is mainly attributable to taxes on our operations in foreign countries.

### Segment results for three months ended September 30, 2024 compared to June 30, 2024

### Americas Segment Operations.

*(In Thousands except for statistics)*

|  | Three Months Ended September 30, 2024 | June 30, 2024 | Change | % Change |
| --- | ---: | ---: | ---: | ---: |
| Total revenue | $64,606 | $73,142 | $(8,536) | (12)% |
| Costs and expenses: |  |  |  |  |
| Vessel operating costs: |  |  |  |  |
| Crew costs | 21,646 | 23,318 | 1,672 | 7% |
| Repair and maintenance | 5,227 | 5,645 | 418 | 7% |
| Insurance | 571 | 463 | (108) | (23)% |
| Fuel, lube and supplies | 3,165 | 2,994 | (171) | (6)% |
| Other | 5,921 | 5,747 | (174) | (3)% |
| Total vessel operating costs | 36,530 | 38,167 | 1,637 | 4% |
| General and administrative | 3,695 | 3,414 | (281) | (8)% |
| Depreciation and amortization | 11,082 | 11,413 | 331 | 3% |
| Vessel operating profit | $13,299 | $20,148 | $(6,849) | (34)% |
| Select operating statistics: |  |  |  |  |
| Utilization | 75.4% | 80.7% | (5.3)% |  |
| Active utilization | 75.4% | 80.7% | (5.3)% |  |
| Average vessel day rates | $27,676 | $28,317 | $(641) | (2.3)% |
| Vessel operating cost per active day | $11,804 | $12,020 | $217 | 1.8% |
| Average total vessels | 34 | 35 | (1) |  |
| Average stacked vessels | — | — | — |  |
| Average active vessels | 34 | 35 | (1) |  |

#### Revenue:

- Decrease driven by lower active utilization, lower average day rates and the decrease in average active vessels.
- Utilization decreased due to an increase in idle time partially offset by lower drydock days.

#### Vessel operating costs:

- Decrease primarily due to lower crew costs associated with our operations in the Caribbean and the US Gulf of Mexico.

#### General and administrative expense:

- Increase primarily due to a severance payment and higher professional fees.

#### Depreciation and amortization expense:

- Decrease primarily due to lower depreciation with one less vessel.

### Asia Pacific Segment Operations.

*(In Thousands except for statistics)*

|  | Three Months Ended September 30, 2024 | June 30, 2024 | Change | % Change |
| --- | ---: | ---: | ---: | ---: |
| Total revenue | $56,283 | $55,221 | $1,062 | 2% |
| Costs and expenses: |  |  |  |  |
| Vessel operating costs: |  |  |  |  |
| Crew costs | 24,685 | 23,023 | (1,662) | (7)% |
| Repair and maintenance | 3,834 | 3,092 | (742) | (24)% |
| Insurance | 327 | 278 | (49) | (18)% |
| Fuel, lube and supplies | 2,560 | 2,335 | (225) | (10)% |
| Other | 2,396 | 2,968 | 572 | 19% |
| Total vessel operating costs | 33,802 | 31,696 | (2,106) | (7)% |
| General and administrative | 2,365 | 2,084 | (281) | (13)% |
| Depreciation and amortization | 4,824 | 4,510 | (314) | (7)% |
| Vessel operating profit | $15,292 | $16,931 | $(1,639) | (10)% |
| Select operating statistics: |  |  |  |  |
| Utilization | 73.8% | 84.9% | (11.1)% |  |
| Active utilization | 73.8% | 84.9% | (11.1)% |  |
| Average vessel day rates | $40,419 | $32,848 | $7,571 | 23.0% |
| Vessel operating cost per active day | $18,008 | $16,091 | $(1,917) | (11.9)% |
| Average total vessels | 20 | 22 | (2) |  |
| Average stacked vessels | — | — | — |  |
| Average active vessels | 20 | 22 | (2) |  |

#### Revenue:

- Increase primarily driven by the significant increase in average day rates due to an increase in the proportion of vessels working in Australia where average day rates are higher, partially offset by the lower average active vessels and the significant decrease in utilization.
- Utilization decreased due to higher drydock days and increased idle time.

#### Vessel operating costs:

- Increase primarily due to higher crew wages driven by the increased proportion of vessels working in Australia where crew costs are higher. Additionally, we incurred higher than normal repair costs on a vessel in Australia.

#### General and administrative expense:

- Increase due to increased headcount in Australia in the third quarter and slightly higher professional fees.

#### Depreciation and amortization expense:

- Increase primarily due to higher amortization of drydock costs.

**Middle East Segment Operations.**

*(In Thousands except for statistics)*

|  | Three Months Ended September 30, 2024 | June 30, 2024 | Change | % Change |
| --- | ---: | ---: | ---: | ---: |
| Total revenue | $36,947 | $36,536 | $411 | 1% |
| Costs and expenses: |  |  |  |  |
| Vessel operating costs: |  |  |  |  |
| Crew costs | 13,071 | 13,540 | 469 | 3% |
| Repair and maintenance | 4,625 | 4,300 | (325) | (8)% |
| Insurance | 510 | 464 | (46) | (10)% |
| Fuel, lube and supplies | 2,842 | 2,274 | (568) | (25)% |
| Other | 6,000 | 7,138 | 1,138 | 16% |
| Total vessel operating costs | 27,048 | 27,716 | 668 | 2% |
| General and administrative | 2,928 | 2,847 | (81) | (3)% |
| Depreciation and amortization | 7,871 | 7,815 | (56) | (1)% |
| Vessel operating profit | $(900) | $(1,842) | $942 | (51)% |
| Select operating statistics: |  |  |  |  |
| Utilization | 80.1% | 83.8% | (3.7)% |  |
| Active utilization | 80.1% | 83.8% | (3.7)% |  |
| Average vessel day rates | $11,661 | $11,148 | $513 | 4.6% |
| Vessel operating cost per active day | $6,837 | $7,083 | $246 | 3.5% |
| Average total vessels | 43 | 43 | — |  |
| Average stacked vessels | — | — | — |  |
| Average active vessels | 43 | 43 | — |  |

#### Revenue:

- Increase primarily driven by higher day rates offset by the lower utilization.
- Utilization decreased primarily due to higher repair and mobilization days in the third quarter of 2024.

#### Vessel operating costs:

- Decrease primarily due to the accelerated amortization of deferred mobilization costs due to a contract cancellation in the second quarter.

#### General and administrative expense:

- No significant variances.

#### Depreciation and amortization expense:

- No significant variances.

### Europe/Mediterranean Segment Operations.

*(In Thousands except for statistics)*

|  | Three Months Ended September 30, 2024 | June 30, 2024 | Change | % Change |
| --- | ---: | ---: | ---: | ---: |
| Total revenue | $85,325 | $83,266 | $2,059 | 2% |
| Costs and expenses: |  |  |  |  |
| Vessel operating costs: |  |  |  |  |
| Crew costs | 28,818 | 27,085 | (1,733) | (6)% |
| Repair and maintenance | 7,279 | 7,058 | (221) | (3)% |
| Insurance | 827 | 761 | (66) | (9)% |
| Fuel, lube and supplies | 3,924 | 3,461 | (463) | (13)% |
| Other | 4,974 | 4,351 | (623) | (14)% |
| Total vessel operating costs | 45,822 | 42,716 | (3,106) | (7)% |
| General and administrative | 3,222 | 2,982 | (240) | (8)% |
| Depreciation and amortization | 23,918 | 22,439 | (1,479) | (7)% |
| Vessel operating profit | $12,363 | $15,129 | $(2,766) | (18)% |
| Select operating statistics: |  |  |  |  |
| Utilization | 83.9% | 85.8% | (1.9)% |  |
| Active utilization | 83.9% | 85.8% | (1.9)% |  |
| Average vessel day rates | $21,484 | $20,950 | $534 | 2.5% |
| Vessel operating cost per active day | $9,766 | $9,304 | $(461) | (5.0)% |
| Average total vessels | 51 | 50 | 1 |  |
| Average stacked vessels | — | — | — |  |
| Average active vessels | 51 | 50 | 1 |  |

#### Revenue:

- Increase primarily driven by higher day rates and an additional active vessel partially offset by slightly lower utilization.
- Active vessels increased due to the transfer of a vessel from another segment.
- Active utilization decreased due to higher drydock days and idle time.

#### Vessel operating costs:

- Increase primarily due to higher crew costs associated with higher travel costs in the North Sea.

#### General and administrative expense:

- Increase primarily due to higher headcount and compensation costs in Norway.

#### Depreciation and amortization expense:

- Increase primarily due to higher amortization of drydock costs.

### West Africa Segment Operations.

*(In Thousands except for statistics)*

|  | Three Months Ended September 30, 2024 | June 30, 2024 | Change | % Change |
| --- | ---: | ---: | ---: | ---: |
| Total revenue | $95,324 | $88,838 | $6,486 | 7% |
| Costs and expenses: |  |  |  |  |
| Vessel operating costs: |  |  |  |  |
| Crew costs | 19,488 | 19,265 | (223) | (1)% |
| Repair and maintenance | 4,589 | 4,648 | 59 | 1% |
| Insurance | 730 | 659 | (71) | (11)% |
| Fuel, lube and supplies | 4,722 | 4,498 | (224) | (5)% |
| Other | 5,923 | 7,148 | 1,225 | 17% |
| Total vessel operating costs | 35,452 | 36,218 | 766 | 2% |
| General and administrative | 2,367 | 2,376 | 9 | 0% |
| Depreciation and amortization | 13,979 | 12,505 | (1,474) | (12)% |
| Vessel operating profit | $43,526 | $37,739 | $5,787 | 15% |
| Select operating statistics: |  |  |  |  |
| Utilization | 69.2% | 72.9% | (3.7)% |  |
| Active utilization | 69.2% | 73.6% | (4.4)% |  |
| Average vessel day rates | $22,044 | $20,093 | $1,951 | 9.7% |
| Vessel operating cost per active day | $5,668 | $6,003 | $335 | 5.6% |
| Average total vessels | 68 | 67 | 1 |  |
| Average stacked vessels | — | (1) | 1 |  |
| Average active vessels | 68 | 66 | 2 |  |

#### Revenue:

- Increase primarily driven by the increase in average day rates and the additional average active vessels, partially offset by lower utilization.
- Active utilization decreased due to idle time.

#### Vessel operating costs:

- Decrease primarily due to a nonrecurring customs duty settlement in the second quarter.

#### General and administrative expense:

- No significant variances.

#### Depreciation and amortization expense:

- Increase primarily due to higher amortization of drydock costs.

### Consolidated Results – Nine Months Ended September 30, 2024 compared to September 30, 2023

*(In Thousands except for statistics)*

|  | Nine Months Ended September 30, 2024 | September 30, 2023 | Change | % Change |
| --- | ---: | ---: | ---: | ---: |
| Total revenue | $1,000,750 | $707,327 | $293,423 | 41% |
| Costs and expenses: |  |  |  |  |
| Vessel operating costs: |  |  |  |  |
| Crew costs | 316,291 | 231,936 | (84,355) | (36)% |
| Repair and maintenance | 71,645 | 57,081 | (14,564) | (26)% |
| Insurance | 8,170 | 6,532 | (1,638) | (25)% |
| Fuel, lube and supplies | 50,093 | 45,283 | (4,810) | (11)% |
| Other | 76,524 | 57,130 | (19,394) | (34)% |
| Total vessel operating costs | 522,723 | 397,962 | (124,761) | (31)% |
| Costs of other operating revenues | 2,867 | 3,005 | 138 | 5% |
| General and administrative | 80,129 | 70,559 | (9,570) | (14)% |
| Depreciation and amortization | 178,150 | 121,164 | (56,986) | (47)% |
| Gain on asset dispositions, net | (13,090) | (4,483) | 8,607 | 192% |
| Total costs and expenses | 770,779 | 588,207 | (182,572) | (31)% |
| Operating income | 229,971 | 119,120 | 110,851 | 93% |
| Other income (expense): |  |  |  |  |
| Foreign exchange loss | (939) | (3,620) | 2,681 | 74% |
| Equity in net earnings of unconsolidated companies | — | 29 | (29) | (100)% |
| Interest income and other, net | 3,686 | 3,488 | 198 | 6% |
| Interest and other debt costs, net | (56,225) | (28,209) | (28,016) | (99)% |
| Total other expense | (53,478) | (28,312) | (25,166) | (89)% |
| Income before income taxes | 176,493 | 90,808 | 85,685 | 94% |
| Income tax expense | 33,840 | 32,515 | (1,325) | (4)% |
| Net income | 142,653 | 58,293 | 84,360 | 145% |
| Net loss attributable to noncontrolling interests | (1,098) | (1,228) | 130 | 11% |
| Net income attributable to Tidewater Inc. | $143,751 | $59,521 | $84,230 | 142% |
| Select operating statistics: |  |  |  |  |
| Utilization | 79.4% | 78.1% | 1.3% |  |
| Active utilization | 79.7% | 80.8% | (1.1)% |  |
| Average vessel day rates | $20,959 | $16,313 | $4,646 | 28.5% |
| Vessel operating cost per active day | $8,814 | $7,509 | $(1,305) | (17.4)% |
| Average total vessels | 217 | 200 | 17 |  |
| Average stacked vessels | (1) | (7) | 6 |  |
| Average active vessels | 216 | 193 | 23 |  |

#### Revenue:

- Increase driven by almost 30% higher day rates coupled with the additional vessels from the Solstad Acquisition partially offset by slightly lower active utilization in the first nine months of 2024 compared to the first nine months of 2023. In the third quarter of 2023, we increased our vessel count by 37 with the Solstad Acquisition.
- Solstad Vessels contributed $201.5 million and $59.1 million to revenue for the nine months ended September 30, 2024 and 2023, respectively.

#### Vessel operating costs:

- Increase largely due to the addition of 37 vessels from the Solstad Acquisition and higher crew costs as we expand operations to higher cost regions.
- Solstad Vessels added $109.6 million and $35.1 million to operating costs for the nine months ended September 30, 2024 and 2023, respectively.

33

#### General and administrative:

- Increase primarily due to higher professional fees, higher salaries and compensation costs in 2024 mainly from the Solstad Acquisition, which was partially offset by higher bad debt recoveries and lower acquisition related transaction expenses in 2024.

#### Depreciation and amortization:

- Increase due to the addition of 37 vessels from the Solstad Acquisition and increased drydock activity.
- Solstad Vessels added $58.0 million and $22.4 million to depreciation and amortization for the nine months ended September 30, 2024 and 2023, respectively.

#### Gain on asset dispositions, net:

- During the first nine months of 2024, we sold four vessels from our active fleet for a total of $14.9 million and recognized gains totaling $13.1 million. During the first nine months of 2023, we sold or recycled seven vessels designated as held for sale and four vessels from our active fleet for a total of $9.6 million and recognized gains totaling $4.5 million.

#### Interest expense:

- Increase due to the addition of $575.0 million in long term debt to partially fund the Solstad Acquisition.

#### Interest income and other, net:

- Interest income increased in the nine months ended September 30, 2024, compared to the same period in 2023 as a result of substantially larger invested balances and higher rates of return.
- During the nine months ended September 30, 2024, we recognized a $3.2 million charge for certain indemnity assets related to the Swire acquisition.
- During the nine months ended September 30, 2023, we recognized a $1.8 million settlement gain in connection with an agreement committing our pension plan to use a portion of its assets to purchase an annuity from an insurance company so as to transfer its liabilities. This 2023 gain was largely offset by expenses related to old insurance treaties.

#### Foreign exchange losses:

- During the nine months ended September 30, 2024 and 2023, our foreign exchange losses and gains, respectively, were primarily the result of the settlement and revaluation of various foreign currency balances due to a strengthening/weakening of the U.S. Dollar against the Norwegian Kroner, Brazilian Real, Angola Kwanza, British Pound and Euro.

#### Income tax expense:

- We are subject to taxes on our income in many jurisdictions worldwide and our actual tax expense can vary disproportionally to overall net income due to the mix of profits and losses in these foreign tax jurisdictions. Our tax expense for the nine months ended September 30, 2024 and 2023, is mainly attributable to taxes on our operations in foreign countries.

### Segment results for nine months ended September 30, 2024 compared to September 30, 2023

### Americas Segment Operations.

*(In Thousands except for statistics)*

|  | Nine Months Ended September 30, 2024 | September 30, 2023 | Change | % Change |
| --- | ---: | ---: | ---: | ---: |
| Total revenue | $201,689 | $168,780 | $32,909 | 19% |
| Costs and expenses: |  |  |  |  |
| Vessel operating costs: |  |  |  |  |
| Crew costs | 69,026 | 62,283 | (6,743) | (11)% |
| Repair and maintenance | 15,406 | 13,449 | (1,957) | (15)% |
| Insurance | 1,528 | 1,365 | (163) | (12)% |
| Fuel, lube and supplies | 10,681 | 9,934 | (747) | (8)% |
| Other | 17,596 | 14,060 | (3,536) | (25)% |
| Total vessel operating costs | 114,237 | 101,091 | (13,146) | (13)% |
| General and administrative | 10,441 | 12,033 | 1,592 | 13% |
| Depreciation and amortization | 33,438 | 28,863 | (4,575) | (16)% |
| Vessel operating profit | $43,573 | $26,793 | $16,780 | 63% |
| Select operating statistics: |  |  |  |  |
| Utilization | 76.9% | 83.1% | (6.2)% |  |
| Active utilization | 77.5% | 85.7% | (8.2)% |  |
| Average vessel day rates | $27,302 | $21,348 | $5,954 | 27.9% |
| Vessel operating cost per active day | $12,032 | $10,975 | $(1,057) | (9.6)% |
| Average total vessels | 35 | 35 | — |  |
| Average stacked vessels | — | (1) | 1 |  |
| Average active vessels | 35 | 34 | 1 |  |

#### Revenue:

- Increase primarily driven by the substantially higher average day rates and an additional active vessel.
- Utilization decreased due to increased drydock activity in 2024 and increased idle time between contracts.
- Active vessels increased due to the addition of five Solstad Vessels, offset by vessel sales and vessel transfers.
- Solstad Vessels contributed $34.3 million and $14.3 million in revenue for the nine months ended September 30, 2024 and 2023, respectively.

#### Vessel operating costs:

- Increase primarily due to additional Solstad Vessels.
- Solstad Vessels added $15.2 million and $7.6 million to operating costs for the nine months ended September 30, 2024 and 2023, respectively.

#### General and administrative expense:

- Decrease primarily due to lower bad debt expense in 2024.

#### Depreciation and amortization expense:

- Increase primarily due to higher amortization resulting from more drydock activity.
- Solstad Vessels added $5.2 million and $2.4 million to depreciation and amortization for the nine months ended September 30, 2024 and 2023, respectively.

35

### Asia Pacific Segment Operations.

*(In Thousands except for statistics)*

|  | Nine Months Ended September 30, 2024 | September 30, 2023 | Change | % Change |
| --- | ---: | ---: | ---: | ---: |
| Total revenue | $159,285 | $83,603 | $75,682 | 91% |
| Costs and expenses: |  |  |  |  |
| Vessel operating costs: |  |  |  |  |
| Crew costs | 67,014 | 26,763 | (40,251) | (150)% |
| Repair and maintenance | 9,695 | 6,235 | (3,460) | (55)% |
| Insurance | 878 | 525 | (353) | (67)% |
| Fuel, lube and supplies | 6,832 | 4,060 | (2,772) | (68)% |
| Other | 7,855 | 5,706 | (2,149) | (38)% |
| Total vessel operating costs | 92,274 | 43,289 | (48,985) | (113)% |
| General and administrative | 6,575 | 6,306 | (269) | (4)% |
| Depreciation and amortization | 13,366 | 6,859 | (6,507) | (95)% |
| Vessel operating profit | $47,070 | $27,149 | $19,921 | 73% |
| Select operating statistics: |  |  |  |  |
| Utilization | 80.9% | 80.5% | 0.4% |  |
| Active utilization | 80.9% | 81.4% | (0.5)% |  |
| Average vessel day rates | $34,176 | $24,783 | $9,393 | 37.9% |
| Vessel operating cost per active day | $16,116 | $10,475 | $(5,641) | (53.8)% |
| Average total vessels | 21 | 15 | 6 |  |
| Average stacked vessels | — | — | — |  |
| Average active vessels | 21 | 15 | 6 |  |

#### Revenue:

- Increase primarily driven by additional vessels from the Solstad Acquisition and the almost 40% increase in average day rates largely driven by the proportion of vessels working in Australia where average day rates are higher, marginally offset by lower active utilization.
- Active utilization decreased as our vessels experienced more drydock days and more idle time during the nine months ended September 30, 2024.
- Active vessels increased by six, including four Solstad Vessels.
- Solstad Vessels contributed $24.4 million and $7.3 million in revenue for the nine months ended September 30, 2024 and 2023, respectively.

#### Vessel operating costs:

- Increase primarily due to additional vessels in the segment and by the increased proportion of vessels working in Australia where crew costs are higher.
- Solstad Vessels added $24.4 million and $5.9 million to operating costs for the nine months ended September 30, 2024 and 2023, respectively.

#### General and administrative expense:

- No significant variances.

#### Depreciation and amortization expense:

- Increase primarily due to additional vessels in the segment and increased drydocks.
- Solstad Vessels added $4.3 million and $1.2 million to depreciation and amortization for the nine months ended September 30, 2024 and 2023, respectively.

36

**Middle East Segment Operations.**

*(In Thousands except for statistics)*

|  | Nine Months Ended September 30, 2024 | September 30, 2023 | Change | % Change |
| --- | ---: | ---: | ---: | ---: |
| Total revenue | $111,415 | $97,303 | $14,112 | 15% |
| Costs and expenses: |  |  |  |  |
| Vessel operating costs: |  |  |  |  |
| Crew costs | 39,881 | 39,700 | (181) | (0)% |
| Repair and maintenance | 13,433 | 12,082 | (1,351) | (11)% |
| Insurance | 1,394 | 1,283 | (111) | (9)% |
| Fuel, lube and supplies | 7,420 | 9,482 | 2,062 | 22% |
| Other | 19,144 | 12,221 | (6,923) | (57)% |
| Total vessel operating costs | 81,272 | 74,768 | (6,504) | (9)% |
| General and administrative | 8,397 | 6,725 | (1,672) | (25)% |
| Depreciation and amortization | 22,959 | 18,954 | (4,005) | (21)% |
| Vessel operating profit | $(1,213) | $(3,144) | $1,931 | (61)% |
| Select operating statistics: |  |  |  |  |
| Utilization | 83.5% | 79.4% | 4.1% |  |
| Active utilization | 83.5% | 79.4% | 4.1% |  |
| Average vessel day rates | $11,299 | $10,224 | $1,075 | 10.5% |
| Vessel operating cost per active day | $6,879 | $6,236 | $(643) | (10.3)% |
| Average total vessels | 43 | 44 | (1) |  |
| Average stacked vessels | — | — | — |  |
| Average active vessels | 43 | 44 | (1) |  |

#### Revenue:

- Increase primarily driven by the higher average day rates partially offset by one less active vessel.
- Utilization increased due to higher activity in the segment and significantly lower mobilization days.

#### Vessel operating costs:

- Increase primarily due to the accelerated amortization of deferred mobilization costs due to a cancelled contract, higher repair costs due to an increase in vessel repair days and increased training costs.

#### General and administrative expense:

- Increase primarily due to higher personnel costs coupled with a bad debt recovery in 2023.

#### Depreciation and amortization expense:

- Increase primarily due to drydock activity and the accelerated depreciation on a contract-specific equipment due to the contract cancellation.

### Europe/Mediterranean Segment Operations.

*(In Thousands except for statistics)*

|  | Nine Months Ended September 30, 2024 | September 30, 2023 | Change | % Change |
| --- | ---: | ---: | ---: | ---: |
| Total revenue | $248,972 | $149,474 | $99,498 | 67% |
| Costs and expenses: |  |  |  |  |
| Vessel operating costs: |  |  |  |  |
| Crew costs | 82,185 | 52,765 | (29,420) | (56)% |
| Repair and maintenance | 19,830 | 10,948 | (8,882) | (81)% |
| Insurance | 2,344 | 1,427 | (917) | (64)% |
| Fuel, lube and supplies | 11,479 | 7,980 | (3,499) | (44)% |
| Other | 13,684 | 10,039 | (3,645) | (36)% |
| Total vessel operating costs | 129,522 | 83,159 | (46,363) | (56)% |
| General and administrative | 9,406 | 6,941 | (2,465) | (36)% |
| Depreciation and amortization | 67,795 | 39,455 | (28,340) | (72)% |
| Vessel operating profit | $42,249 | $19,919 | $22,330 | 112% |
| Select operating statistics: |  |  |  |  |
| Utilization | 85.6% | 86.6% | (1.0)% |  |
| Active utilization | 85.6% | 86.6% | (1.0)% |  |
| Average vessel day rates | $20,725 | $18,233 | $2,492 | 13.7% |
| Vessel operating cost per active day | $9,314 | $8,857 | $(457) | (5.2)% |
| Average total vessels | 51 | 34 | 17 |  |
| Average stacked vessels | — | — | — |  |
| Average active vessels | 51 | 34 | 17 |  |

#### Revenue:

- Increased primarily driven by the increase in day rates and additional vessels from the Solstad Acquisition.
- Active vessels increased by 17 vessels, primarily from the Solstad Acquisition.
- Utilization decreased due to higher drydock days and higher idle time between contracts in the segment.
- Solstad Vessels contributed $116.8 million and $33.5 million in revenue for the nine months ended September 30, 2024 and 2023, respectively.

#### Vessel operating costs:

- Increase primarily due to the additional vessels in the segment.
- Solstad Vessels added $63.6 million and $19.4 million to operating costs for the nine months ended September 30, 2024 and 2023, respectively.

#### General and administrative expense:

- Increase due to additional shore personnel from the Solstad Acquisition.

#### Depreciation and amortization expense:

- Increase primarily due to additional vessels.
- Solstad Vessels added $42.1 million and $17.0 million to depreciation and amortization for the nine months ended September 30, 2024 and 2023, respectively.

38

### West Africa Segment Operations.

*(In Thousands except for statistics)*

|  | Nine Months Ended September 30, 2024 | September 30, 2023 | Change | % Change |
| --- | ---: | ---: | ---: | ---: |
| Total revenue | $272,813 | $199,318 | $73,495 | 37% |
| Costs and expenses: |  |  |  |  |
| Vessel operating costs: |  |  |  |  |
| Crew costs | 58,185 | 50,425 | (7,760) | (15)% |
| Repair and maintenance | 13,281 | 14,367 | 1,086 | 8% |
| Insurance | 2,026 | 1,932 | (94) | (5)% |
| Fuel, lube and supplies | 13,681 | 13,827 | 146 | 1% |
| Other | 18,245 | 15,104 | (3,141) | (21)% |
| Total vessel operating costs | 105,418 | 95,655 | (9,763) | (10)% |
| General and administrative | 6,798 | 7,129 | 331 | 5% |
| Depreciation and amortization | 38,322 | 25,447 | (12,875) | (51)% |
| Vessel operating profit | $122,275 | $71,087 | $51,188 | 72% |
| Select operating statistics: |  |  |  |  |
| Utilization | 73.0% | 70.4% | 2.6% |  |
| Active utilization | 73.6% | 76.1% | (2.5)% |  |
| Average vessel day rates | $20,224 | $14,441 | $5,783 | 40.0% |
| Vessel operating cost per active day | $5,668 | $5,219 | $(449) | (8.6)% |
| Average total vessels | 67 | 72 | (5) |  |
| Average stacked vessels | (1) | (6) | 5 |  |
| Average active vessels | 66 | 66 | — |  |

#### Revenue:

- Increase primarily driven by the 40% increase in average day rates.
- Active utilization decreased due to higher drydock activity and higher idle time between contracts.
- Solstad Acquisition added three vessels offset by vessel sales and vessel transfers.
- Solstad Vessels contributed $26.1 million and $3.9 million in revenue for the nine months ended September 30, 2024 and 2023, respectively.

#### Vessel operating costs:

- Increase due to higher crew wages and a nonrecurring customs duty settlement in the second quarter of 2024.
- Solstad Vessels added $6.5 million and $2.1 million to operating costs for the nine months ended September 30, 2024 and 2023, respectively.

#### General and administrative expense:

- Decrease due to higher recovery of bad debt in 2024.

#### Depreciation and amortization expense:

- Increase primarily due to amortization resulting from increased drydock activity, which was partially offset by vessel sales and vessel transfers.
- Solstad Vessels added $6.5 million and $2.1 million to depreciation and amortization for the nine months ended September 30, 2024 and 2023, respectively.

39

### Vessel Dispositions, Assets Held for Sale and Stacked Vessels

We may sell and/or recycle vessels when market conditions warrant and opportunities arise. We generally target older vessels or vessels that do not meet our strategic goals for sale but may also sell vessels when approached by third parties with positive value propositions. From time to time, we have designated vessels for sale under formal assets held for sale programs. The majority of our vessels are sold to buyers who do not compete with us in the offshore energy industry. Vessel sales during the first nine months of 2024 consisted of four vessels from our active fleet. We have no vessels classified as assets held for sale as of September 30, 2024.

We consider a vessel to be stacked if the vessel crew is furloughed or substantially reduced and limited maintenance is performed on the vessel. Although not currently fulfilling charters, stacked vessels are considered in service and included in the calculation of our utilization statistics. We include any vessel designated as assets held for sale in stacked vessels as they continue to incur stacking related costs. We had zero and two stacked vessels at September 30, 2024 and December 31, 2023, respectively. The decrease in stacked vessels is attributable to vessel sales.

### Liquidity, Capital Resources and Other Matters

As of September 30, 2024, we had $290.2 million in cash and cash equivalents, which includes restricted cash and amounts held by foreign subsidiaries, the majority of which is available to us without adverse tax consequences. Included in foreign subsidiary cash are balances held in U.S. dollars and foreign currencies that await repatriation due to various currency conversion and repatriation constraints, partner and tax related matters. We currently expect earnings by our foreign subsidiaries will be indefinitely reinvested in foreign jurisdictions to fund strategic initiatives (such as investment, expansion and acquisitions), fund working capital requirements and repay intercompany liabilities of our foreign subsidiaries in the normal course of business. Moreover, we do not currently intend to repatriate earnings of our foreign subsidiaries to the U.S. because cash generated from our domestic businesses and the repayment of intercompany liabilities from foreign subsidiaries are currently sufficient to fund the cash needs of our U.S. operations.

A key component of our growth strategy is expanding our business and fleets through acquisitions, joint ventures and other strategic transactions. We would expect to use net proceeds from any sale of our securities for general corporate purposes, including capital expenditures, investments, acquisitions, repayment or refinancing of indebtedness, and other business opportunities. In furtherance of this strategy and as discussed elsewhere in our Annual Report on Form 10-K, on July 5, 2023, we closed the Solstad Acquisition pursuant to which we acquired 37 platform supply vessels for an aggregate adjusted cash purchase price of approximately $594.2 million. The purchase price was funded through a combination of cash on hand and net proceeds from both the Senior Secured Term Loan and from the 10.375% Senior Unsecured Notes due 2028 (Senior Secured Notes).

Our objective in financing our business is to maintain and preserve adequate financial resources and sufficient levels of liquidity. In addition to our cash on hand, we also have a $25.0 million revolving credit facility (RCF) that matures in 2026. No amounts have been drawn on this facility. As of September 30, 2024, we had $650.5 million of debt on our consolidated balance sheet, $53.1 million of which is due in the next twelve months. Working capital, which includes cash on hand, was $352.4 million at September 30, 2024. During the nine months ended September 30, 2024, we generated $142.7 million in net income and $182.5 million in cash flow from operating activities, which includes our interest payments and drydock costs. With the closing of the Solstad Acquisition, we added substantially to our debt, including current maturities, drydock obligations and interest costs. However, we expect to continue generating sufficient operating cashflow from the Solstad Vessels to meet the corresponding increase in our debt service obligations.

The Senior Secured Term Loan, the Senior Unsecured Notes, the 8.5% Senior Secured Notes due November 2026 and the revolving credit facility contain a combination of the following three financial covenants: (i) a minimum liquidity test equal to the greater of $20.0 million or 10% of net interest-bearing debt; (ii) a minimum equity ratio of 30%, in each case for us and our consolidated subsidiaries; and (iii) an interest coverage ratio of not less than 2:1. We are currently in compliance and anticipate maintaining ongoing compliance with these financial covenants.

We believe cash and cash equivalents, and future net cash provided by operating activities, will provide us with sufficient liquidity to fund our obligations and meet our liquidity requirements.

We signed agreements for the construction of ten new vessels. Upon delivery of each vessel, we may enter into Facility Agreements to finance a portion of the construction and delivery costs. Four vessels have been delivered through September 30, 2024, and we entered into Facility Agreements for approximately EUR13.9 million ($15.2 million) in financing. Each of the four Facility Agreements bears interest at rates ranging from 2.7% to 6.3% and are payable in ten equal principal semi-annual installments, with the first installment commencing approximately six months following delivery of the vessel. Payments for three of the delivered vessels began in the fourth quarter of 2023 while the fourth vessel payment commenced in the second quarter of 2024. Each Facility Agreement is secured by the respective vessel, guaranteed by Tidewater as parent guarantor and contain no financial covenants. We expect three more vessels to be delivered during the fourth quarter of 2024.

Please refer to Note (8) - “Debt” to the accompanying Consolidated Financial Statements for further details on our indebtedness.

### Share Repurchases

In November 2023, we announced the approval by our Board to repurchase up to $35.0 million of our common stock. As of December 31, 2023, we had repurchased and retired 590,499 shares for approximately $35.0 million ($59.29 per share), excluding commissions and a 1% excise taxes. On February 29, 2024, we announced our Board's approval of a new $48.6 million program. Further on May 2, 2024, we announced the approval of an additional $18.1 million under this program, and on August 6, 2024, we announced the approval of an additional $13.9 million, for a total share repurchase capacity of $80.6 million. Under this new program, we repurchased and retired 520,082 shares for approximately $46.6 million ($89.68 per share), excluding commissions and a 1% excise tax, during the nine months ended September 30, 2024. No shares were repurchased during the years ended December 31, 2022 and 2021. Please refer to Item 5 of our Annual Report - Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities for additional information regarding repurchases of our common stock in the fourth quarter of 2023. Also refer to Part II. Item 2. “Issuer Repurchases of Equity Securities” set forth herein and Note (5) - “Stockholders’ Equity and Dilutive Equity Instruments” to the accompanying Consolidated Financial Statements for current year repurchases.

### Dividends

There were no dividends declared for the nine months ended September 30, 2024 and 2023. Please refer to Note (5) - “Stockholders’ Equity and Dilutive Equity Instruments” to the accompanying Consolidated Financial Statements.

### Operating Activities

Net cash provided by operating activities for the nine months ended September 30, 2024 and 2023 was $182.5 million and $57.5 million, respectively.

Net cash provided by operating activities for the nine months ended September 30, 2024 reflects net income of $142.7 million, which includes non-cash depreciation and amortization of $178.2 million and net gains on asset dispositions of $13.1 million. Combined changes in operating assets and liabilities used $20.6 million in cash, and cash paid for deferred drydock and survey costs was $115.6 million.

Net cash provided by operating activities for the nine months ended September 30, 2023 reflects net income of $58.3 million, which includes non-cash depreciation and amortization of $121.2 million and net gains on asset dispositions of $4.5 million. Combined changes in operating assets and liabilities used $50.4 million in cash, and cash paid for deferred drydock and survey costs was $73.3 million.

### Investing Activities

Net cash used in investing activities for the nine months ended September 30, 2024 and 2023 was $6.0 million and $607.8 million, respectively.

Net cash used in investing activities for the nine months ended September 30, 2024 reflects receipt of $14.9 million primarily related to the sale of four vessels. Additions to properties and equipment were comprised of approximately $20.3 million in capitalized upgrades to existing vessels and equipment and $2.7 million primarily for other property and information technology equipment purchases and development work.

Net cash used in investing activities for the nine months ended September 30, 2023 reflects the payment of $594.2 million to acquire 37 vessels from Solstad and the receipt of $9.6 million primarily related to the sale of 11 vessels. Additions to properties and equipment were comprised of approximately $17.1 million in capitalized upgrades to existing vessels and equipment, $2.1 million in down payments made on four new vessels and $4.0 million primarily for other property and information technology equipment purchases and development work.

### Financing Activities

Net cash provided by (used in) financing activities for the nine months ended September 30, 2024 and 2023 was $(164.4) million and $664.4 million, respectively.

Net cash used in financing activities for the nine months ended September 30, 2024 included payments of long-term debt of $89.0 million, the purchase of 520,082 shares of our common stock for $46.6 million, $0.2 million of debt issuance costs and $28.5 million in shares acquired to pay taxes on stock awards.

Net cash provided by financing activities for the nine months ended September 30, 2023 included proceeds from long-term debt of $575.0 million, $111.5 million in proceeds from the conversion of warrants into common stock, a $1.4 million payment to acquire the non-controlling interest in a majority owned (now wholly owned) subsidiary, $14.8 million of debt issuance costs and $5.9 million in taxes paid on share-based awards.

### Application of Critical Accounting Policies and Estimates

Our Annual Report filed with the SEC on February 29, 2024, describes the accounting policies that are critical to reporting our financial position and operating results and that require management’s most difficult, subjective or complex judgments. This Quarterly Report on Form 10-Q should be read in conjunction with the discussion contained in our 2023 Annual Report regarding these critical accounting policies.

### New Accounting Pronouncements

For information regarding the effect of new accounting pronouncements, see “Note (2) - Recently Issued or Adopted Accounting Pronouncements” of Notes to Unaudited Condensed Consolidated Financial Statements included in Part I, Item 1 of this Form 10-Q.

## Market risk

As filed, 258 characters.

For quantitative and qualitative disclosures about market risk affecting us, see Item 7A. “Quantitative and Qualitative Disclosures about Market Risk,” in our 2023 Annual Report. Our exposure to market risk has not changed materially since December 31, 2023.

## Controls and procedures

As filed, 1,950 characters.

### Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are designed with the objective of ensuring that all information required to be disclosed in our reports filed under the Securities Exchange Act of 1934, as amended (Exchange Act), such as this Quarterly Report on Form 10-Q, is recorded, processed, summarized and reported, within the time periods specified in the SEC rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer's management, including its principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. However, any control system, no matter how well conceived and followed, can provide only reasonable, and not absolute, assurance that the objectives of the control system are met.

We evaluated, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act), as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of September 30, 2024.

### Changes in Internal Controls Over Financial Reporting

There has been no change in our internal controls over financial reporting that occurred during the quarter ended September 30, 2024, that has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.

## Risk factors

As filed, 230 characters.

As of the date of this filing, there have been no material changes from the risk factors disclosed in Part 1, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 29, 2024.

Filed Nov 7, 2024.
Source: SEC EDGAR, the filing index for accession 0001437749-24-033961. Last ingested by Listed: Oct 24, 2026, 14:54 ET. No prices; not investment advice.