Tidewater Inc. (NYSE:TDW) Q4 2022 Earnings Call Transcript

Ina Golikja: For ’23 or ’23-’24.

Quintin Kneen: So ’24 is just too early to jump. I don’t if — the nice thing about the fact that supply is constrained is that, it actually doesn’t put more pressure on our supply channel, so on laborers and others. So once all the boats are working essentially, there’s no pressure to lift rates commensurate with the increases in day rates. So, my hope is that, we’ll see that stabilize in ’24, but we’ll give you better guidance as we get closer to that.

Ina Golikja: Okay. Thanks. Just like to mention a little bit utilization, average utilization you see for the next two years.

Quintin Kneen: Well, I definitely see it increasing, but let me break it down to you on where I see the limitations, right? So, in utilization, you have to think about it over a reasonable time period. So, if you give me a month, I could give you 100% utilization. But if you talk about a year, there’s always going to be 3% to 3.5% that go for dry box. So that’s going to be — that’s going to cap you out. There’s always going to be about 3% and 3.5% down for repairs, right? So, your theoretical maximum is in that 93% range, right? Now, there’s also going to be some frictional unemployment and things like that, so my belief is that, as we see the cycle continuing to strengthen, we’re going to move out of the high 80s and into the low 90s. But do I think it will ever go over 93% for a year, I certainly hope so. But I don’t anticipate that to be the case.

Ina Golikja: Okay. Thank you. And I — if I heard it correctly, you mentioned that you have mobilized one of the vessels to the Mediterranean, do you see like as we are heading into the strong summer season at least here in the North Sea, do you see more vessels moving towards this region?

Piers Middleton: I think, we’ll obviously see where the market goes. I mean, the market is very strong in certain areas. So we’ll move vessels accordingly, as long as we’re getting paid off mobilization fees — mobilization fees. We’ll be going to work, where our vessels are required, where we can push the highest rates. So yes, we’re open to going anywhere, as long as we’re paid properly.

Ina Golikja: Okay. Thank you.

Operator: There are no further questions at this time. I will now turn the call over to Quintin Kneen for closing remarks.

Quintin Kneen: Thank you, Cheryl. Thank you, everyone, and we look forward to updating you again in May. Goodbye.

Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect.