Tidewater's vessel uptime fuels Q2 revenue surge
Tidewater has confirmed revenues for the three and six months ended June 30, 2025 of US$341.4 million and US$674.9 million, respectively, compared with US$339.2 million and US$660.4 million, respectively, for the three and six months ended June 30, 2024.
Tidewater's net income for the three and six months ended June 30, 2025, was US$72.9 million (US$1.46 per common share) and US$115.6 million (US$2.27 per common share), respectively, compared with net income of US$50.4 million (US$0.94 per common share) and US$97.4 million (US$1.83 per common share), respectively, for the three and six months ended June 30, 2024.
“The second quarter of 2025 exceeded our expectations as vessel up-time continued to drive revenue and margin performance, delivering revenue of US$341.4 million and the third consecutive quarter with a gross margin above 50 per cent, coming in at 50.1 per cent," said Tidewater President and CEO Quintin Kneen.
"The average day rate for the quarter marked another record at US$23,166, up over US$860 per day sequentially, with particular strength in our largest classes of AHTS and PSVs, as we continued to benefit from the fleet rolling on to higher day rate contracts and continued strength in leading edge rates. Free cash flow of US$97.5 million also continued to demonstrate the free cash flow generation capability of our fleet."
Kneen said that, subsequent to the end of the second quarter, Tidewater executed a refinancing transaction that achieved the company's target of establishing a long-term, unsecured debt capital structure along with a sizable revolving credit facility.
"The proceeds of the US$650.0 million senior unsecured notes offering completed in July substantially went to the redemption of our previously outstanding Nordic bonds and term loan facility," added Kneen.
"The new notes have a five-year maturity with no required amortisation. Further, in connection with the refinancing transaction, we entered into a US$250.0 million revolving credit facility, which as of today is undrawn, which will allow us to comfortably reduce our level of cash on hand."
Kneen said that, in addition to the balance sheet strength and financial flexibility the new financing package provides, the opportunity for shareholder returns has been substantially increased, allowing for a larger allocation of free cash flow for shareholder returns.
"A large part of our better than anticipated performance for the quarter was due to increased vessel uptime and lower operational costs," Kneen remarked.
Kneen said Tidewater remains confident in maintaining its full year guidance for 2025, but macroeconomic uncertainty has brought down expectations for the second half of the year.
"We are comfortable reiterating our 2025 guidance of US$1.32 billion to US$1.38 billion of revenue and gross margin guidance of 48 per cent to 50 per cent due to the strong first half of the year and that, as of today [Monday, August 4], 93 per cent of our revenue guidance is covered by completed and contracted future revenue for the full year."
Kneen added that Tidewater remains unaware of any project cancellations and remains optimistic about the intermediate to long-term prospects for offshore vessel activity.
