Tidewater Inc. (NYSE:TDW) Q2 2022 Earnings Conference Call August 5, 2022 9:00 AM ET

Company Participants

West Gotcher - Vice President of Finance and Investor Relations

Quintin Kneen - President & Chief Executive Officer

Piers Middleton - Vice President of Sales & Marketing

Sam Rubio - Chief Financial Officer

Conference Call Participants

Hans Lund - Clarksons

Patrick Fitzgerald - Baird

Operator

Good morning. My name is Chantel and I'll be your conference operator today. At this time, I would like to welcome everyone to the Tidewater Q2 2022 Earnings Conference Call. As a reminder, today's conference call is being recorded. [Operator Instructions]

West Gotcher, Vice President of Finance and Investor Relations, you may begin your conference.

West Gotcher

Thank you, Chantel. Good morning, everyone and welcome to Tidewater's earnings conference call for the three and six months ended June 30, 2022. I'm joined on the call this morning by our President and CEO, Quintin Kneen, our Chief Financial Officer, Sam Rubio; our General Counsel and Corporate Secretary, Daniel Hudson; 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, August 5, 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 Second Quarter 2022 Tidewater Earnings Conference Call. I'm pleased to say that the second quarter continued a pace of rapid improvement in the offshore vessel market and more importantly, marked an inflection point in the market that we have been anticipating for some time now.

We've talked about momentum building in the business. The second quarter marked the tipping point in vessel supply and demand dynamics and it marked a significant step-up in our operational and financial results. I'll provide more color on some of our regions and vessel classes. But in short, the most important indicator in the strength of our business, day rate, increased by nearly $1,900 per day sequentially. With 172 working vessels, that's a big move for one quarter. You may recall that we've discussed an increase over an entire year during a typical up cycle, up about $1,500 per day. This sequential quarterly uplift is the most indicative signal as to the step change we're experiencing in the market today.