In its 2020 earnings report, the company said it seemed the worst of the pandemic-driven downturn had passed
Tidewater announced revenue for the quarter and 12 months ending 31 December 2020 of US$91.9M and US$397M, respectively.
Both earnings results surpassed the guide targets the company provided in late 2020, although they fell short of the revenue numbers posted the previous year, of US$118.8M and US$486.5M respectively, for the quarter and 12 months ending 31 December 2019.
The company’s annual losses in 2020 were up on 2019 numbers as well. Tidewater’s net losses in 2020 amounted to US$196.2M compared with US$141.7M in 2019.
However, losses in Q4 2020 improved markedly on those the company suffered in 2019, according to the company.
Excluding impairment charges related to assets held for sale, affiliate credit losses, affiliate guaranteed obligation, inventory obsolescence and general and administrative severance expenses, the company said it would have reported a net loss for Q4 2020 of US$23.1M and an annual net loss of $65.6M. The same numbers for 2019 were US$25.2M US$91.4M, respectively.
Tidewater president and chief executive Quintin Kneen said “I am pleased to report that we again generated free cash flow in the latest quarter and that we generated US$52.7M of free cash flow for the calendar year. Achieving these results during a considerably challenging year was due to the ability of our offshore and onshore team to quickly and skillfully adjust to the changing market."
The free cash flow Tidewater generated fell short of the target numbers the company set out for 2020 of US$65M.
Mr Kneen also pointed to a reduction in the company’s outstanding debt as a positive. “During the year, we reduced outstanding debt by US$96.2M and decreased our net debt position by US$23.8M. We ended the year with US$155.2M of cash on hand," he said.
Overall, Mr Kneen said the dual effects of the coronavirus pandemic and low oil prices had hit the offshore sector hard but could be easing.
“It’s hard to overstate the challenges we’ve faced in 2020, but the worst of the pandemic-driven downturn seems to be behind us," he said, adding he felt the offshore sector could see activity returning to Q1 2020 levels by Q1 2021 if predictions of increasing oil demand materialise as Covid-19 vaccination programmes expand globally.
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