Tidewater, Inc. (NYSE:TDW) Q3 2022 Earnings Conference Call November 4, 2022 9:00 AM ET

Company Participants

West Gotcher - IR

Quintin Kneen - President, CEO & Director

Piers Middleton - VP Sales & Marketing

Samuel Rubio - EVP & CFO

Conference Call Participants

Fredrik Stene - Clarkson Securities

James West - Evercore ISI

Operator

Good morning. My name is Colby and I will be your conference operator today. At this time I would like to welcome everyone to the Tidewater Q3 2022 Earnings Conference Call. [Operator Instructions]. I will now turn the call over to West Gotcher.

West Gotcher

Thank you, Colby. Good morning, everyone, and welcome to Tidewater's earnings conference call for the 3 and 9 months ended September 30, 2022. I'm joined on the call this morning by our President and CEO, Quintin Kneen; our Chief Financial Officer, Sam Rubio; and our Vice President of Sales and Marketing, Piers Middleton.

During today's call, we'll make certain statements that are forward-looking and referring to our plans and expectations. There are risks and uncertainties and other factors that may cause the company's actual performance to be materially different from that stated or implied by any comment that we make during today's conference call. Please refer to our most recent Form 10-K and 10-Q for additional details on these factors. These documents are available on our website at tdw.com or through the SEC at sec.gov.

Information presented on this call speaks only as of today, November 4, 2022. Therefore, you're advised that any time-sensitive information may no longer be accurate at the time of any replay.

Also during the call, we'll present both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures can be found on our website at tdw.com and is included in yesterday's press release.

And now with that, I'll turn the call over to Quintin.

Quintin Kneen

Thank you, West. Good morning, everyone, and welcome to the third quarter 2022 Tidewater Earnings Conference Call. I'm pleased to say that as the offshore vessel market continued its momentum during the third quarter, we saw a meaningful improvement in our profitability and free cash flow generation. The most talked about indicator of the strength in our business, average day rate increased by nearly $1,100 per day in the quarter on slightly higher active utilization of 83.7%, which is up about 1.2 percentage points.

You may recall that we have previously discussed that fleet-wide average day rate increase over the entire year during a typical up cycle was about $1,500 per day. We passed that benchmark in the second quarter with average day rate up nearly $1,900. And year-to-date, we are now up $3,000 per day.