Tidewater Inc. Celebrates Record-Breaking 2024 with Unprecedented Financial Gains
Tidewater Inc., a leading offshore energy support vessel fleet operator, marked its fourth quarter and full year 2024 earnings conference call by highlighting remarkable financial improvements. The company's strategic efforts to dispose of older vessels, pursue disciplined acquisitions, and maximize the scalability of its global shore-based infrastructure have yielded significant rewards.
According to Quintin Kneen, President and CEO of Tidewater Inc., revenue grew 33% year-over-year, while average day rate increased by nearly $4,500 per day. Net income nearly doubled, and adjusted EBITDA expanded by almost 50%. Free cash flow tripled, allowing the company to reduce its net debt by a substantial $149 million.
The company's Chief Commercial Officer, Piers Middleton, highlighted the importance of daily execution across the entire organization, stating that "the critical element is daily execution across the entire organization." This sentiment was echoed by Kneen, who expressed gratitude to the Tidewater team globally for their tireless efforts in building a high-specification offshore energy support vessel fleet.
In addition to its financial accomplishments, 2024 also marked the first full year that Tidewater actively returned capital to shareholders since 2015. The company commenced its share repurchase program in the fourth quarter of 2023 and successfully purchased $91 million worth of shares in the open market during 2024.
West Gotcher, Senior Vice President of Strategy, Corporate Development, and Investor Relations, provided a clear illustration of the company's philosophy on leverage, stating that "we look for value-accretive acquisitions with a keen eye on free cash flow generation." This approach was evident in the Solstad fleet acquisition, where the company managed to pay down nearly $310 million of net debt within 30 months.
Looking ahead to 2025, Tidewater Inc. expressed optimism about capital allocation and the vessel market's prospects. The company views this year as an opportunity to build on its successes, leverage investments made in recent years, and continue to drive growth while maintaining a focus on sustainability and profitability.
