Tidewater Reports Strong Financial Performance for 2024

Tidewater, a leading provider of offshore support vessels, has announced impressive financial results for the 12 months ended December 31, 2024. The company reported a net income of $180.7 million for the year, a significant increase from $97.2 million in the previous year. This growth was driven by a rise in revenue and gross margin, as well as improved day rate realization in the offshore vessel market.

Revenue and Growth

For the three and 12 months ended December 31, 2024, Tidewater recorded revenues of $345.1 million and $1,345.8 million, respectively. This marks a notable increase from $302.7 million and $1,010.0 million in the previous year. Quintin Kneen, Tidewater’s President and CEO, attributed the company’s success to a strategic effort to optimize its fleet by acquiring newer, higher-specification vessels and divesting older ones.

Financial Highlights

Kneen highlighted the company’s free cash flow of $331.0 million for the year, a significant improvement driven by enhanced day rate realization and strategic acquisitions. Tidewater also utilized its cash to pay down debt and reduce the number of outstanding shares, demonstrating prudent financial management.

Fourth Quarter Performance

The fourth quarter of 2024 exceeded expectations, with revenue reaching $345.1 million and gross margin surpassing 50% for the first time in 16 years. Despite a foreign exchange loss due to a stronger U.S. dollar, Tidewater reported adjusted EBITDA of $138.4 million and net income of $36.9 million. Free cash flow improved by nearly 60% sequentially, driven by increased gross margin and reduced drydock spend.

Outlook for 2025

Looking ahead to 2025, Tidewater anticipates continued growth in revenue, gross margin, and free cash flow. The company expects a slow start to the year but foresees improving demand fundamentals as the year progresses. With a favorable supply position in the offshore vessel market and strong customer relationships, Tidewater is confident in its ability to drive further financial performance improvements.

Overall, Tidewater’s strong financial performance in 2024 reflects its commitment to fleet optimization, strategic acquisitions, and prudent financial management. As the offshore market continues to evolve, Tidewater is well-positioned to capitalize on growth opportunities and deliver value to its shareholders.