Tidewater Inc (TDW) Reports Robust Q3 2023 Earnings with 39.2% Revenue Increase
Revenue for Q3 2023 reached $299.3 million, marking a 39.2% increase from Q2 2023.
Net income for the quarter was $26.2 million, a $3.6 million increase from the previous quarter.
The average day rate increased to $17,865 per day, $1,823 higher than Q2 2023.
Tidewater Inc (NYSE:TDW) has completed the integration of 32 out of the 37 recently acquired PSVs from Solstad Offshore.
On November 6, 2023, Tidewater Inc (NYSE:TDW) announced its earnings for the three and nine months ended September 30, 2023. The company reported a significant increase in revenue and net income compared to the previous quarter. The revenue for Q3 2023 was $299.3 million, a 39.2% increase from the second quarter of 2023. The net income for the same period was $26.2 million, an increase of $3.6 million from Q2 2023.
Financial Highlights
The company's average day rate increased to $17,865 per day, $1,823 higher than the second quarter of 2023. The composite leading edge term contract day rate also saw a significant rise, up 21.7% to $28,609. The adjusted EBTIDA for the quarter was $117.2 million, an increase of $45.2 million from Q2 2023.
Quintin Kneen, Tidewaters President and Chief Executive Officer, commented on the company's performance, stating,
The third quarter marks the third consecutive quarterly cyclical revenue and global average day rate high-water marks. Third quarter revenue nicely exceeded our expectations as a continued push on day rates globally drove consolidated day rates up by approximately $1,800 per day sequentially, representing the largest sequential improvement in day rates since the recovery began."
Future Outlook
Tidewater Inc (NYSE:TDW) has initiated its 2024 revenue guidance, estimating it to be between $1.40 to $1.45 billion. The company also expects a 2024 gross margin guidance of 52%. Additionally, the company announced a share repurchase authorization for the maximum permissible amount under existing debt agreements.
Integration of Acquired PSVs
The company has successfully completed the integration of 32 out of the 37 recently acquired Platform Supply Vessels (PSVs) from Solstad Offshore. The remaining five vessels are expected to be integrated by the end of November.
Regional Operating Results
Each of the company's regions experienced an overall increase in revenue, gross profit, and average day rate. This is indicative of the global shortage of large and small offshore vessels. The company remains confident in the outlook for the business as demand for their vessels remains robust across a variety of end markets.
Explore the complete 8-K earnings release (here) from Tidewater Inc for further details.
This article first appeared on GuruFocus.
