<SEC-DOCUMENT>0001564590-18-006673.txt : 20180323
<SEC-HEADER>0001564590-18-006673.hdr.sgml : 20180323
<ACCEPTANCE-DATETIME>20180323160237
ACCESSION NUMBER:		0001564590-18-006673
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20180315
ITEM INFORMATION:		Regulation FD Disclosure
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20180323
DATE AS OF CHANGE:		20180323

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TIDEWATER INC
		CENTRAL INDEX KEY:			0000098222
		STANDARD INDUSTRIAL CLASSIFICATION:	WATER TRANSPORTATION [4400]
		IRS NUMBER:				720487776
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-06311
		FILM NUMBER:		18710109

	BUSINESS ADDRESS:	
		STREET 1:		601 POYDRAS ST.
		STREET 2:		SUITE 1500
		CITY:			NEW ORLEANS
		STATE:			LA
		ZIP:			70130
		BUSINESS PHONE:		5045681010

	MAIL ADDRESS:	
		STREET 1:		601 POYDRAS ST.
		STREET 2:		SUITE 1500
		CITY:			NEW ORLEANS
		STATE:			LA
		ZIP:			70130

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	TIDEWATER MARINE SERVICE INC
		DATE OF NAME CHANGE:	19780724
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>tdw-8k_20180315.htm
<DESCRIPTION>8-K
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<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:11pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">UNITED STATES</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:11pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">SECURITIES AND EXCHANGE COMMISSION</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:11pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Washington, D.C. 20549</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:11pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">_____________________</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-size:11pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">FORM 8-K</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:center;margin-top:0pt;margin-bottom:0pt;text-indent:0%;color:#auto;font-size:11pt;font-family:Times New Roman;font-weight:bold;font-style:normal;text-transform:none;font-variant: normal;">CURRENT REPORT</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:11pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Pursuant to Section 13 or 15(d) of the</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:11pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Securities Exchange Act of 1934</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:11pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">_____________________</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:11pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Date of Report <font style="font-style:italic;">(Date of earliest event reported)</font> <font style="font-weight:bold;">March 15, 2018</font></p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-size:11pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">TIDEWATER INC.</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-style:italic;font-size:11pt;font-family:Times New Roman;font-weight:normal;text-transform:none;font-variant: normal;">(Exact name of registrant as specified in its charter)</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:100%;">
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<td valign="top"  style="width:33%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:11pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Delaware<br /><font style="font-style:italic;font-weight:normal;">(State of incorporation)</font></p></td>
<td valign="top"  style="width:34%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:11pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">1-6311<br /><font style="font-style:italic;font-weight:normal;">(Commission File Number)</font></p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:11pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">72-0487776<font style="font-weight:normal;"><br /></font><font style="font-style:italic;font-weight:normal;">(IRS Employer Identification No.)</font></p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:90%;">
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<td valign="top"  style="width:45%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:11pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">6002 Rogerdale Road, Suite 600</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:11pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Houston, Texas<font style="font-weight:normal;"><br /></font><font style="font-style:italic;font-weight:normal;">(Address of principal executive offices)</font></p></td>
<td valign="top"  style="width:45%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:11pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">77072</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-style:italic;font-size:11pt;font-family:Times New Roman;font-weight:normal;text-transform:none;font-variant: normal;">(Zip Code)</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-size:11pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">(713) 470-5300</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-style:italic;font-size:11pt;font-family:Times New Roman;font-weight:normal;text-transform:none;font-variant: normal;">(Registrant's telephone number, including area code)</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:11pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">N/A</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-style:italic;font-size:11pt;font-family:Times New Roman;font-weight:normal;text-transform:none;font-variant: normal;">(Former name or former address, if changed since last report)</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (<font style="font-style:italic;">see</font> General Instruction A.2. below):</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
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<p style="margin-bottom:0pt;margin-top:0pt;letter-spacing:-0.15pt;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';"><font style="letter-spacing:-0.15pt;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';"></font><font style="font-size:10pt;font-family:'Times New Roman'">&#9744;</font></p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;letter-spacing:-0.15pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</p></td></tr></table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
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<p style="margin-bottom:0pt;margin-top:0pt;letter-spacing:-0.15pt;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';"><font style="letter-spacing:-0.15pt;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';"></font><font style="font-size:10pt;font-family:'Times New Roman'">&#9744;</font></p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;letter-spacing:-0.15pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</p></td></tr></table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
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<p style="margin-bottom:0pt;margin-top:0pt;letter-spacing:-0.15pt;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';"><font style="letter-spacing:-0.15pt;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';"></font><font style="font-size:10pt;font-family:'Times New Roman'">&#9744;</font></p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;letter-spacing:-0.15pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17&#160;CFR 240.14d-2(b))</p></td></tr></table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
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<p style="margin-bottom:0pt;margin-top:0pt;letter-spacing:-0.15pt;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';"><font style="letter-spacing:-0.15pt;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';"></font><font style="font-size:10pt;font-family:'Times New Roman'">&#9744;</font></p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;letter-spacing:-0.15pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17&#160;CFR 240.13e-4(c))</p></td></tr></table></div>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.85%;text-indent:-3.85%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR &#167;230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR &#167;240.12b-2). <font style="margin-left:18pt;"></font>Emerging growth company [ ]</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised accounting standards provided pursuant to Section 13(a) of the Exchange Act.<font style="margin-left:18pt;">[ ]</font></p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.85%;text-indent:-3.85%;font-size:12pt;">&nbsp;</p>
<p style="text-align:center;margin-top:12pt;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1</p>
<hr style="page-break-after:always;width:100%;">
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-size:11pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU2"></a><font style="font-weight:bold;font-size:11pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Item 7.01.&nbsp;&nbsp;Regulation FD Disclosure.</font></p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:11pt;">&nbsp;</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:0%;color:#000000;font-size:11pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Tidewater Inc. (the &#8220;Company&#8221;) notes that certain statements set forth in this Current Report on Form 8-K provide other than historical information and are forward looking. The actual achievement of any forecasted results, or the unfolding of future economic or business developments in a way anticipated or projected by the Company, involve numerous risks and uncertainties that may cause the Company&#8217;s actual performance to be materially different from that stated or implied in the forward-looking statement. Among those risks and uncertainties, many of which are beyond the control of the Company, include, without limitation, <font style="color:#000000;">the potential need to sell certain assets to raise additional capital; volatility in worldwide energy demand and oil and gas prices, and continuing depressed levels of oil and gas prices without a clear indication of if, or when, prices will recover to a level to support renewed offshore exploration activities; consolidation of our customer base; fleet additions by competitors and industry overcapacity; our&#160;views with respect to the need for and timing of the replenishment of our asset base, including through acquisitions or vessel construction; changes in decisions and capital spending by customers and the industry expectations in the energy industry for offshore exploration, field development and production; loss of a major customer; changing customer demands for vessel specifications, which may make some of our older vessels technologically obsolete for certain customer projects or in certain markets; rapid technological changes; delays and other problems associated with vessel&#160;construction and maintenance; uncertainty of global financial market conditions and difficulty in accessing credit or capital; our ability to comply with covenants in our indentures and other debt instruments; the continued availability of qualified personnel and other supplies; the operating risks normally incident to our lines of business, including the potential impact of liquidated counterparties; acts of terrorism and piracy; integration of acquired businesses and entry into new lines of business; disagreements with our joint venture partners; significant weather conditions; unsettled political conditions, war, civil unrest and governmental actions, such as expropriation or enforcement of customs or other laws that are not well developed or consistently enforced; the risks associated with our international operations, including local content, local currency or similar requirements, especially in higher political risk countries where we operate; interest rate and foreign currency fluctuations; labor changes proposed by&#160;international conventions;&#160;increased regulatory burdens and oversight;&#160;changes in laws governing the taxation of foreign source income; retention of skilled workers; enforcement of laws related to the environment, labor and foreign corrupt practices; the effects of asserted and unasserted claims and the extent of available insurance coverage; and the resolution of pending legal proceedings</font>. Readers should consider all of these risk factors as well as other information contained in this report.</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:11pt;">&nbsp;</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:11pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The following information is being provided under Item 7.01 Regulation FD Disclosure in this Current Report on Form 8-K: a transcript from the Company&#8217;s March 15, 2018 analyst conference call discussing its financial results for the three months ended December 31, 2017 and the nine month transition period from April 1, 2017 through December 31, 2017.&nbsp;&nbsp;</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:11pt;">&nbsp;</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:11pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The transcript is furnished as Exhibit 99.1 to this Current Report and is incorporated herein by reference as if fully set forth under this item.</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:11pt;">&nbsp;</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:11pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The information contained in the transcript, which was prepared by Thomson Reuters, is a textual representation of the Company&#8217;s conference call.&nbsp;&nbsp;There may be material errors, omissions or inaccuracies in the reporting of the contents of the conference call.&nbsp;&nbsp;The Company assumes no responsibility to correct or update the third-party transcript.&nbsp;&nbsp;Users are advised to review the Company&#8217;s conference call itself (which is accessible via the Company&#8217;s website) and the Company&#8217;s SEC filings before making any investment or other decisions.</p>
<p style="text-align:center;margin-top:12pt;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2</p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-size:11pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU3"></a><font style="font-weight:bold;font-size:11pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Item 9.01. Financial Statements and Exh</font><font style="font-weight:bold;font-size:11pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">ibits.</font></p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;;font-size:11pt;">&nbsp;</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:11pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(d)<font style="margin-left:22pt;">Exhibits</font></p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:11pt;">&nbsp;</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:11pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The following exhibit is furnished with this Form 8-K:</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:11pt;">&nbsp;</p>
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<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;font-size:11pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="font-size:11pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">99.1</font></p></td>
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<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:11pt;"><a href="tdw-ex991_69.htm"><font style="text-decoration:underline;">Transcript from the March 15, 2018 analyst conference call</font></a>.</p></td></tr></table></div>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:11pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU4"></a><font style="font-size:11pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">SIGNATURES</font></p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:11pt;">&nbsp;</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:11pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</p>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:11pt;text-align:left;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:11pt;text-align:left;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;text-align:left;font-size:11pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">By:</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:11pt;text-align:left;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;text-align:left;font-size:11pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">/s/ Quinn P. Fanning</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:11pt;text-align:left;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:11pt;text-align:left;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;text-align:left;font-size:11pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Quinn P. Fanning</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:11pt;text-align:left;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;text-align:left;font-size:11pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;text-align:left;font-size:11pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Executive Vice President and Chief Financial Officer</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:11pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Date: March 23, 2018</p>
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<TYPE>EX-99.1
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<FILENAME>tdw-ex991_69.htm
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<p style="line-height:18pt;margin-bottom:0pt;margin-top:0pt;margin-left:23pt;;text-indent:0pt;;color:#FFFFFF;font-size:18pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">TDW - Tidewater Inc. Earnings Call for the Three Months Ended</p>
<p style="margin-top:0pt;margin-bottom:0pt;margin-left:23pt;;text-indent:0pt;;color:#FFFFFF;font-size:18pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">December<font style="letter-spacing:-1.55pt;"> </font>31,<font style="letter-spacing:-1.55pt;"> </font>2017<font style="letter-spacing:-1.55pt;"> </font>and<font style="letter-spacing:-1.55pt;"> </font>the<font style="letter-spacing:-1.55pt;"> </font>Nine<font style="letter-spacing:-1.55pt;"> </font>Month<font style="letter-spacing:-1.55pt;"> </font>Transition<font style="letter-spacing:-1.55pt;"> </font>Period<font style="letter-spacing:-1.55pt;"> </font>from<font style="letter-spacing:-1.55pt;"> </font>April<font style="letter-spacing:-1.55pt;"> </font>1, 2017 through December 31,<font style="letter-spacing:-1.05pt;"> </font>2017</p>
<p style="margin-top:0pt;margin-bottom:0pt;margin-left:23pt;;text-indent:0pt;;font-family:Times New Roman;font-size:20pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:23pt;;text-indent:0pt;;color:#FFFFFF;font-size:18pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">EVENT DATE/TIME: MARCH 15, 2018 / 3:00PM GMT</p>
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<p style="margin-top:6pt;margin-bottom:0pt;margin-left:23pt;;margin-right:21.96%;text-indent:0pt;;color:#FFFFFF;font-size:12pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Co. reported 3Q18 Successor period revenues of $104.5m and net loss of $23.6m or $1.02 per common share.</p>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#666666;font-size:8pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us</p></td>
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<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#666666;font-size:5.5pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#169;2018 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without<font style="letter-spacing:-0.1pt;"> </font>the<font style="letter-spacing:-0.1pt;"> </font>prior<font style="letter-spacing:-0.1pt;"> </font>written<font style="letter-spacing:-0.1pt;"> </font>consent<font style="letter-spacing:-0.1pt;"> </font>of<font style="letter-spacing:-0.1pt;"> </font>Thomson<font style="letter-spacing:-0.1pt;"> </font>Reuters.<font style="letter-spacing:-0.1pt;"> </font>'Thomson<font style="letter-spacing:-0.1pt;"> </font>Reuters'<font style="letter-spacing:-0.1pt;"> </font>and<font style="letter-spacing:-0.1pt;"> </font>the<font style="letter-spacing:-0.1pt;"> </font>Thomson<font style="letter-spacing:-0.1pt;"> </font>Reuters<font style="letter-spacing:-0.1pt;"> </font>logo<font style="letter-spacing:-0.1pt;"> </font>are<font style="letter-spacing:-0.1pt;"> </font>registered<font style="letter-spacing:-0.1pt;"> </font>trademarks<font style="letter-spacing:-0.1pt;"> </font>of<font style="letter-spacing:-0.1pt;"> </font>Thomson<font style="letter-spacing:-0.1pt;"> </font>Reuters<font style="letter-spacing:-0.1pt;"> </font>and<font style="letter-spacing:-0.1pt;"> </font>its affiliated<font style="letter-spacing:-0.05pt;"> </font>companies.</p></td>
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<p style="margin-bottom:4pt;margin-top:4pt;margin-left:4pt;;margin-right:0.73%;text-indent:0pt;;color:#FFFFFF;font-size:12pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">MARCH<font style="letter-spacing:-0.75pt;"> </font>15,<font style="letter-spacing:-0.75pt;"> </font>2018<font style="letter-spacing:-0.75pt;"> </font>/<font style="letter-spacing:-0.75pt;"> </font>3:00PM,<font style="letter-spacing:-0.75pt;"> </font>TDW<font style="letter-spacing:-0.75pt;"> </font>-<font style="letter-spacing:-0.75pt;"> </font>Tidewater<font style="letter-spacing:-0.75pt;"> </font>Inc.<font style="letter-spacing:-0.75pt;"> </font>Earnings<font style="letter-spacing:-0.75pt;"> </font>Call<font style="letter-spacing:-0.75pt;"> </font>for<font style="letter-spacing:-0.75pt;"> </font>the<font style="letter-spacing:-0.75pt;"> </font>Three<font style="letter-spacing:-0.75pt;"> </font>Months<font style="letter-spacing:-0.75pt;"> </font>Ended<font style="letter-spacing:-0.75pt;"> </font>December<font style="letter-spacing:-0.75pt;"> </font>31,<font style="letter-spacing:-0.75pt;"> </font>2017 and<font style="letter-spacing:-0.25pt;"> </font>the<font style="letter-spacing:-0.25pt;"> </font>Nine<font style="letter-spacing:-0.25pt;"> </font>Month<font style="letter-spacing:-0.25pt;"> </font>Transition<font style="letter-spacing:-0.25pt;"> </font>Period<font style="letter-spacing:-0.25pt;"> </font>from<font style="letter-spacing:-0.25pt;"> </font>April<font style="letter-spacing:-0.25pt;"> </font>1,<font style="letter-spacing:-0.25pt;"> </font>2017<font style="letter-spacing:-0.25pt;"> </font>through<font style="letter-spacing:-0.25pt;"> </font>December<font style="letter-spacing:-0.25pt;"> </font>31,<font style="letter-spacing:-0.25pt;"> </font>2017</p></td>
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<p style="margin-bottom:4pt;margin-top:4pt;margin-left:4pt;;margin-right:0.73%;text-indent:0pt;;font-family:Times New Roman;font-size:12pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:3pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;color:#003399;font-weight:bold;font-family:Myriad Pro Cond;font-size:11pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="Corporate_Participants"></a><a name="Jason_Stanley_(2_Turns)"></a>C O R P O R A T E P A R T I C I P A N T S </p><a name="Jeffrey_A._Gorski_(4_Turns)"></a>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;"><a href="#_bookmark0">Jason Stanley</a></p><a name="John_T._Rynd_(10_Turns)"></a>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;margin-right:59.53%;text-indent:0%;font-family:Myriad Pro;font-size:11pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="Quinn_P._Fanning_(14_Turns)"></a><a href="#_bookmark4"><font style="font-weight:bold;font-size:9pt;">Jeffrey A. Gorski </font></a><font style="font-style:italic;font-size:9pt;font-family:Calibri;"><a name="Quinn_P._Fanning_(14_Turns)"></a>Tidewater Inc. - Executive VP &amp; COO </font></p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;margin-right:59.53%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;"><a name="Conference_Call_Participants"></a><a href="#_bookmark1">John T. Rynd </a><font style="font-style:italic;font-family:Calibri;font-weight:normal;"><a name="Conference_Call_Participants"></a>Tidewater Inc. - President, CEO &amp; Director </font></p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;margin-right:59.53%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;"><a href="#_bookmark2">Quinn P. Fanning </a><font style="font-style:italic;font-family:Calibri;font-weight:normal;">Tidewater Inc. - Executive VP &amp; CFO</font></p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;color:#003399;font-weight:bold;font-family:Myriad Pro Cond;font-size:11pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="John_Eric_Deysher_(4_Turns)"></a><a name="Joseph_Donough_Gibney_(5_Turns)"></a>C O N F E R E N C E C A L L P A R T I C I P A N T S </p><a name="Synn&#248;ve_Gj&#248;nnes_(2_Turns)"></a>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-family:Myriad Pro;font-size:11pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="#_bookmark8"><font style="font-weight:bold;font-size:9pt;">John Eric Deysher </font></a><font style="font-style:italic;font-size:9pt;font-family:Calibri;">Bertolet Capital LLC - President, Chief Compliance Officer, and Portfolio Manager</font></p><a name="Turner_Holm_(7_Turns)"></a>
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<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-family:Myriad Pro;font-size:11pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="#_bookmark6"><font style="font-weight:bold;font-size:9pt;">Synn&#248;ve Gj&#248;nnes </font></a><font style="font-style:italic;font-size:9pt;font-family:Calibri;">Pareto Securities, Research Division - Analyst</font></p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;"><a href="#_bookmark5">Turner Holm </a><font style="font-style:italic;font-family:Calibri;font-weight:normal;">Clarksons Platou Securities AS, Research Division - Director</font></p><a name="PRESENTATION"></a>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-family:Myriad Pro;font-size:11pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="#_bookmark7"><font style="font-weight:bold;font-size:9pt;">Tord Augestad </font></a><font style="font-style:italic;font-size:9pt;font-family:Calibri;">Arctic Securities - Analyst</font></p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:14pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;color:#003399;font-weight:bold;font-family:Myriad Pro Cond;font-size:11pt;font-style:normal;text-transform:none;font-variant: normal;">P R E S E N T A T I O N </p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;">Operator</p>
<p style="text-align:justify;margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Welcome<font style="letter-spacing:-0.3pt;"> </font>to<font style="letter-spacing:-0.3pt;"> </font>the<font style="letter-spacing:-0.3pt;"> </font>earnings<font style="letter-spacing:-0.3pt;"> </font>conference<font style="letter-spacing:-0.3pt;"> </font>call<font style="letter-spacing:-0.3pt;"> </font>for<font style="letter-spacing:-0.3pt;"> </font>the<font style="letter-spacing:-0.3pt;"> </font>three<font style="letter-spacing:-0.3pt;"> </font>months<font style="letter-spacing:-0.3pt;"> </font>ended<font style="letter-spacing:-0.3pt;"> </font>December<font style="letter-spacing:-0.3pt;"> </font>31,<font style="letter-spacing:-0.3pt;"> </font>2017,<font style="letter-spacing:-0.3pt;"> </font>and<font style="letter-spacing:-0.3pt;"> </font>the<font style="letter-spacing:-0.3pt;"> </font>nine-month<font style="letter-spacing:-0.3pt;"> </font>transition<font style="letter-spacing:-0.3pt;"> </font>period<font style="letter-spacing:-0.3pt;"> </font>from<font style="letter-spacing:-0.3pt;"> </font>April<font style="letter-spacing:-0.3pt;"> </font>1,<font style="letter-spacing:-0.3pt;"> </font>2017, through December 31, 2017. My name is John, and I will be your operator for today's call. (Operator Instructions) Please note, the conference is being recorded.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="2._Jason_Stanley"></a><a name="_bookmark0"></a>And I will now turn the call over to Jason Stanley.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;">Jason Stanley</p>
<p style="text-align:justify;margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Thank you, John. Good morning, everyone, and welcome to Tidewater's earnings conference call for the period ended December 31, 2017. I am Jason<font style="letter-spacing:-0.2pt;"> </font>Stanley,<font style="letter-spacing:-0.2pt;"> </font>Tidewater's<font style="letter-spacing:-0.2pt;"> </font>Director,<font style="letter-spacing:-0.2pt;"> </font>Investor<font style="letter-spacing:-0.2pt;"> </font>Relations,<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>I<font style="letter-spacing:-0.2pt;"> </font>would<font style="letter-spacing:-0.2pt;"> </font>like<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>thank<font style="letter-spacing:-0.2pt;"> </font>you<font style="letter-spacing:-0.2pt;"> </font>for<font style="letter-spacing:-0.2pt;"> </font>your<font style="letter-spacing:-0.2pt;"> </font>time<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>interest<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>Tidewater.<font style="letter-spacing:-0.2pt;"> </font>With<font style="letter-spacing:-0.2pt;"> </font>me<font style="letter-spacing:-0.2pt;"> </font>this<font style="letter-spacing:-0.2pt;"> </font>morning on<font style="letter-spacing:-1pt;"> </font>the<font style="letter-spacing:-1pt;"> </font>call<font style="letter-spacing:-1pt;"> </font>are<font style="letter-spacing:-1pt;"> </font>our<font style="letter-spacing:-1pt;"> </font>President<font style="letter-spacing:-1pt;"> </font>and<font style="letter-spacing:-1pt;"> </font>CEO,<font style="letter-spacing:-1pt;"> </font>John<font style="letter-spacing:-1pt;"> </font>Rynd;<font style="letter-spacing:-1pt;"> </font>Quinn<font style="letter-spacing:-1pt;"> </font>Fanning,<font style="letter-spacing:-1pt;"> </font>our<font style="letter-spacing:-1pt;"> </font>Chief<font style="letter-spacing:-1pt;"> </font>Financial<font style="letter-spacing:-1pt;"> </font>Officer;<font style="letter-spacing:-1pt;"> </font>Jeff<font style="letter-spacing:-1pt;"> </font>Gorski,<font style="letter-spacing:-1pt;"> </font>our<font style="letter-spacing:-1pt;"> </font>Chief<font style="letter-spacing:-1pt;"> </font>Operating<font style="letter-spacing:-1pt;"> </font>Officer;<font style="letter-spacing:-1pt;"> </font>Bruce<font style="letter-spacing:-1pt;"> </font>Lundstrom, our General Counsel and Secretary.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Following<font style="letter-spacing:-0.55pt;"> </font>a<font style="letter-spacing:-0.55pt;"> </font>few<font style="letter-spacing:-0.55pt;"> </font>formalities,<font style="letter-spacing:-0.55pt;"> </font>I<font style="letter-spacing:-0.55pt;"> </font>will<font style="letter-spacing:-0.55pt;"> </font>turn<font style="letter-spacing:-0.55pt;"> </font>the<font style="letter-spacing:-0.55pt;"> </font>call<font style="letter-spacing:-0.55pt;"> </font>over<font style="letter-spacing:-0.55pt;"> </font>to<font style="letter-spacing:-0.55pt;"> </font>John<font style="letter-spacing:-0.55pt;"> </font>for<font style="letter-spacing:-0.55pt;"> </font>his<font style="letter-spacing:-0.55pt;"> </font>initial<font style="letter-spacing:-0.55pt;"> </font>comments,<font style="letter-spacing:-0.55pt;"> </font>to<font style="letter-spacing:-0.55pt;"> </font>be<font style="letter-spacing:-0.55pt;"> </font>followed<font style="letter-spacing:-0.55pt;"> </font>by<font style="letter-spacing:-0.55pt;"> </font>Quinn's<font style="letter-spacing:-0.55pt;"> </font>financial<font style="letter-spacing:-0.55pt;"> </font>review.<font style="letter-spacing:-0.55pt;"> </font>John<font style="letter-spacing:-0.55pt;"> </font>will<font style="letter-spacing:-0.55pt;"> </font>then<font style="letter-spacing:-0.55pt;"> </font>provide some final wrap-up comments, and we will then open the call for your questions.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">During today's conference call, we may make certain comments that are forward-looking and not statements of historical fact. I know that you understand<font style="letter-spacing:-0.3pt;"> </font>there<font style="letter-spacing:-0.3pt;"> </font>are<font style="letter-spacing:-0.3pt;"> </font>risks,<font style="letter-spacing:-0.3pt;"> </font>uncertainties<font style="letter-spacing:-0.3pt;"> </font>and<font style="letter-spacing:-0.3pt;"> </font>other<font style="letter-spacing:-0.3pt;"> </font>factors<font style="letter-spacing:-0.3pt;"> </font>that<font style="letter-spacing:-0.3pt;"> </font>may<font style="letter-spacing:-0.3pt;"> </font>cause<font style="letter-spacing:-0.3pt;"> </font>the<font style="letter-spacing:-0.3pt;"> </font>company's<font style="letter-spacing:-0.3pt;"> </font>actual<font style="letter-spacing:-0.3pt;"> </font>future<font style="letter-spacing:-0.3pt;"> </font>performance<font style="letter-spacing:-0.3pt;"> </font>to<font style="letter-spacing:-0.3pt;"> </font>be<font style="letter-spacing:-0.3pt;"> </font>materially<font style="letter-spacing:-0.3pt;"> </font>different<font style="letter-spacing:-0.3pt;"> </font>from that stated or implied by any comment that we make during today's conference call.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Also during the call, we will present both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included<font style="letter-spacing:-1.1pt;"> </font>in the<font style="letter-spacing:-0.25pt;"> </font>last<font style="letter-spacing:-0.25pt;"> </font>evening's<font style="letter-spacing:-0.25pt;"> </font>press<font style="letter-spacing:-0.25pt;"> </font>release.<font style="letter-spacing:-0.25pt;"> </font>Additional<font style="letter-spacing:-0.25pt;"> </font>information<font style="letter-spacing:-0.25pt;"> </font>concerning<font style="letter-spacing:-0.25pt;"> </font>the<font style="letter-spacing:-0.25pt;"> </font>factors<font style="letter-spacing:-0.25pt;"> </font>that<font style="letter-spacing:-0.25pt;"> </font>could<font style="letter-spacing:-0.25pt;"> </font>cause<font style="letter-spacing:-0.25pt;"> </font>actual<font style="letter-spacing:-0.25pt;"> </font>results<font style="letter-spacing:-0.25pt;"> </font>to<font style="letter-spacing:-0.25pt;"> </font>differ<font style="letter-spacing:-0.25pt;"> </font>materially<font style="letter-spacing:-0.25pt;"> </font>from<font style="letter-spacing:-0.25pt;"> </font>those<font style="letter-spacing:-0.25pt;"> </font>stated or implied by the forward-looking statements may be found in the risk factors section of Tidewater's most recent Form 10-K.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">With that, I will turn the call over to John.</p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:3pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;"><a name="_bookmark1"></a>John T. Rynd <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Tidewater Inc. - President, CEO &amp; Director</font></p>
<p style="text-align:justify;margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Thank you, Jason. Good morning, everyone, and thank you for joining the Tidewater call.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:10.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">I will first say that I am pleased and honored to join Tidewater as the company's President and CEO. I feel strongly that the management team - with Larry Rigdon's leadership as Interim CEO - has set the company on the right track to maintain a solid foundation and market position as the offshore<font style="letter-spacing:-0.3pt;"> </font>sector<font style="letter-spacing:-0.3pt;"> </font>improves<font style="letter-spacing:-0.3pt;"> </font>in<font style="letter-spacing:-0.3pt;"> </font>the<font style="letter-spacing:-0.3pt;"> </font>years<font style="letter-spacing:-0.3pt;"> </font>ahead.<font style="letter-spacing:-0.3pt;"> </font>With<font style="letter-spacing:-0.3pt;"> </font>that,<font style="letter-spacing:-0.3pt;"> </font>I<font style="letter-spacing:-0.3pt;"> </font>will<font style="letter-spacing:-0.3pt;"> </font>provide<font style="letter-spacing:-0.3pt;"> </font>some<font style="letter-spacing:-0.3pt;"> </font>highlights<font style="letter-spacing:-0.3pt;"> </font>on<font style="letter-spacing:-0.3pt;"> </font>the<font style="letter-spacing:-0.3pt;"> </font>past<font style="letter-spacing:-0.3pt;"> </font>quarter,<font style="letter-spacing:-0.3pt;"> </font>give<font style="letter-spacing:-0.3pt;"> </font>you<font style="letter-spacing:-0.3pt;"> </font>a<font style="letter-spacing:-0.3pt;"> </font>brief<font style="letter-spacing:-0.3pt;"> </font>summary<font style="letter-spacing:-0.3pt;"> </font>of<font style="letter-spacing:-0.3pt;"> </font>our<font style="letter-spacing:-0.3pt;"> </font>progress to date, and with the benefit of just a few weeks at the helm, address how I see our current priorities.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">For the fourth quarter of 2017, we reported a net loss of $23.6 million, or $1.02 per common share, on revenues of $104.5 million. Note that the December's<font style="letter-spacing:-0.2pt;"> </font>quarter's<font style="letter-spacing:-0.2pt;"> </font>loss<font style="letter-spacing:-0.2pt;"> </font>included<font style="letter-spacing:-0.2pt;"> </font>$19.8<font style="letter-spacing:-0.2pt;"> </font>million<font style="letter-spacing:-0.2pt;"> </font>or<font style="letter-spacing:-0.2pt;"> </font>$0.82<font style="letter-spacing:-0.2pt;"> </font>per<font style="letter-spacing:-0.2pt;"> </font>share,<font style="letter-spacing:-0.2pt;"> </font>of<font style="letter-spacing:-0.2pt;"> </font>reorganization<font style="letter-spacing:-0.2pt;"> </font>items<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>asset<font style="letter-spacing:-0.2pt;"> </font>impairment<font style="letter-spacing:-0.2pt;"> </font>charges.<font style="letter-spacing:-0.2pt;"> </font>Also,<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>loss<font style="letter-spacing:-0.2pt;"> </font>per<font style="letter-spacing:-0.2pt;"> </font>share or<font style="letter-spacing:-0.5pt;"> </font>adjusted<font style="letter-spacing:-0.5pt;"> </font>loss<font style="letter-spacing:-0.5pt;"> </font>per<font style="letter-spacing:-0.5pt;"> </font>share<font style="letter-spacing:-0.5pt;"> </font>is<font style="letter-spacing:-0.5pt;"> </font>based<font style="letter-spacing:-0.5pt;"> </font>on<font style="letter-spacing:-0.5pt;"> </font>23.1<font style="letter-spacing:-0.5pt;"> </font>million<font style="letter-spacing:-0.5pt;"> </font>weighted<font style="letter-spacing:-0.5pt;"> </font>average<font style="letter-spacing:-0.5pt;"> </font>shares<font style="letter-spacing:-0.5pt;"> </font>outstanding<font style="letter-spacing:-0.5pt;"> </font>and<font style="letter-spacing:-0.5pt;"> </font>excludes<font style="letter-spacing:-0.5pt;"> </font>our<font style="letter-spacing:-0.5pt;"> </font>Jones<font style="letter-spacing:-0.5pt;"> </font>Act-related<font style="letter-spacing:-0.5pt;"> </font>New<font style="letter-spacing:-0.5pt;"> </font>Creditor<font style="letter-spacing:-0.5pt;"> </font>Warrants. EBITDA for the December quarter, which includes $2.6 million of stock-based compensation expense, was $13.3 million.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our results for the quarter reflect the continued weakness in the offshore supply vessel market. While oil prices have continued to improve and appeared<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>somewhat<font style="letter-spacing:-0.2pt;"> </font>stabilized,<font style="letter-spacing:-0.2pt;"> </font>our<font style="letter-spacing:-0.2pt;"> </font>customers<font style="letter-spacing:-0.2pt;"> </font>have<font style="letter-spacing:-0.2pt;"> </font>begun,<font style="letter-spacing:-0.2pt;"> </font>at<font style="letter-spacing:-0.2pt;"> </font>least<font style="letter-spacing:-0.2pt;"> </font>in<font style="letter-spacing:-0.2pt;"> </font>some<font style="letter-spacing:-0.2pt;"> </font>cases,<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>commit<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>new<font style="letter-spacing:-0.2pt;"> </font>offshore<font style="letter-spacing:-0.2pt;"> </font>projects,<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>increase<font style="letter-spacing:-0.2pt;"> </font>in<font style="letter-spacing:-0.2pt;"> </font>spending is<font style="letter-spacing:-0.5pt;"> </font>not<font style="letter-spacing:-0.5pt;"> </font>yet<font style="letter-spacing:-0.5pt;"> </font>significant<font style="letter-spacing:-0.5pt;"> </font>enough<font style="letter-spacing:-0.5pt;"> </font>to<font style="letter-spacing:-0.5pt;"> </font>offset<font style="letter-spacing:-0.5pt;"> </font>the<font style="letter-spacing:-0.5pt;"> </font>declines<font style="letter-spacing:-0.5pt;"> </font>over<font style="letter-spacing:-0.5pt;"> </font>the<font style="letter-spacing:-0.5pt;"> </font>past<font style="letter-spacing:-0.5pt;"> </font>several<font style="letter-spacing:-0.5pt;"> </font>years.<font style="letter-spacing:-0.5pt;"> </font>With<font style="letter-spacing:-0.5pt;"> </font>no<font style="letter-spacing:-0.5pt;"> </font>intent<font style="letter-spacing:-0.5pt;"> </font>to<font style="letter-spacing:-0.5pt;"> </font>dismiss<font style="letter-spacing:-0.5pt;"> </font>the<font style="letter-spacing:-0.5pt;"> </font>relatively<font style="letter-spacing:-0.5pt;"> </font>bullish<font style="letter-spacing:-0.5pt;"> </font>outlook<font style="letter-spacing:-0.5pt;"> </font>for<font style="letter-spacing:-0.5pt;"> </font>the<font style="letter-spacing:-0.5pt;"> </font>summer season<font style="letter-spacing:-0.2pt;"> </font>in<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>North<font style="letter-spacing:-0.2pt;"> </font>Sea<font style="letter-spacing:-0.2pt;"> </font>that<font style="letter-spacing:-0.2pt;"> </font>has<font style="letter-spacing:-0.2pt;"> </font>been<font style="letter-spacing:-0.2pt;"> </font>well<font style="letter-spacing:-0.2pt;"> </font>articulated<font style="letter-spacing:-0.2pt;"> </font>by<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>analyst<font style="letter-spacing:-0.2pt;"> </font>community<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>a<font style="letter-spacing:-0.2pt;"> </font>modest<font style="letter-spacing:-0.2pt;"> </font>pickup<font style="letter-spacing:-0.2pt;"> </font>we<font style="letter-spacing:-0.2pt;"> </font>have<font style="letter-spacing:-0.2pt;"> </font>observed<font style="letter-spacing:-0.2pt;"> </font>in<font style="letter-spacing:-0.2pt;"> </font>tendering<font style="letter-spacing:-0.2pt;"> </font>activity<font style="letter-spacing:-0.2pt;"> </font>and customer inquiries, we expect the global OSV market to remain challenging in 2018. As a result, the management team will continue to work to position the company for sustained profitability and future growth.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">During<font style="letter-spacing:-0.15pt;"> </font>my<font style="letter-spacing:-0.15pt;"> </font>time<font style="letter-spacing:-0.15pt;"> </font>as<font style="letter-spacing:-0.15pt;"> </font>CEO,<font style="letter-spacing:-0.15pt;"> </font>Tidewater<font style="letter-spacing:-0.15pt;"> </font>remained<font style="letter-spacing:-0.15pt;"> </font>committed<font style="letter-spacing:-0.15pt;"> </font>to<font style="letter-spacing:-0.15pt;"> </font>safe<font style="letter-spacing:-0.15pt;"> </font>and<font style="letter-spacing:-0.15pt;"> </font>compliant<font style="letter-spacing:-0.15pt;"> </font>operations<font style="letter-spacing:-0.15pt;"> </font>and<font style="letter-spacing:-0.15pt;"> </font>to<font style="letter-spacing:-0.15pt;"> </font>globally<font style="letter-spacing:-0.15pt;"> </font>supporting<font style="letter-spacing:-0.15pt;"> </font>our<font style="letter-spacing:-0.15pt;"> </font>customers<font style="letter-spacing:-0.15pt;"> </font>with<font style="letter-spacing:-0.15pt;"> </font>a<font style="letter-spacing:-0.15pt;"> </font>young modern<font style="letter-spacing:-0.35pt;"> </font>fleet<font style="letter-spacing:-0.35pt;"> </font>and<font style="letter-spacing:-0.35pt;"> </font>with<font style="letter-spacing:-0.35pt;"> </font>high-quality<font style="letter-spacing:-0.35pt;"> </font>service<font style="letter-spacing:-0.35pt;"> </font>in<font style="letter-spacing:-0.35pt;"> </font>all<font style="letter-spacing:-0.35pt;"> </font>water<font style="letter-spacing:-0.35pt;"> </font>depths<font style="letter-spacing:-0.35pt;"> </font>in<font style="letter-spacing:-0.35pt;"> </font>which<font style="letter-spacing:-0.35pt;"> </font>they<font style="letter-spacing:-0.35pt;"> </font>operate.<font style="letter-spacing:-0.35pt;"> </font>These<font style="letter-spacing:-0.35pt;"> </font>core<font style="letter-spacing:-0.35pt;"> </font>principles<font style="letter-spacing:-0.35pt;"> </font>will<font style="letter-spacing:-0.35pt;"> </font>always<font style="letter-spacing:-0.35pt;"> </font>remain<font style="letter-spacing:-0.35pt;"> </font>our<font style="letter-spacing:-0.35pt;"> </font>highest<font style="letter-spacing:-0.35pt;"> </font>priorities as we execute our post-restructuring business plan. These attributes will also position the company as a possible consolidator, if and when the right opportunities present themselves.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Having just recently joined the company, I am pleased to see what the team has done to adapt to the realities of this lengthy downturn. As you <font style="letter-spacing:-0.15pt;">heard</font><font style="letter-spacing:-0.65pt;"> </font><font style="letter-spacing:-0.15pt;">from</font><font style="letter-spacing:-0.65pt;"> </font><font style="letter-spacing:-0.15pt;">Larry</font><font style="letter-spacing:-0.65pt;"> </font>and<font style="letter-spacing:-0.65pt;"> </font><font style="letter-spacing:-0.15pt;">Quinn</font><font style="letter-spacing:-0.65pt;"> </font><font style="letter-spacing:-0.15pt;">last</font><font style="letter-spacing:-0.65pt;"> </font><font style="letter-spacing:-0.15pt;">quarter,</font><font style="letter-spacing:-0.65pt;"> </font><font style="letter-spacing:-0.15pt;">several</font><font style="letter-spacing:-0.65pt;"> </font><font style="letter-spacing:-0.15pt;">significant</font><font style="letter-spacing:-0.65pt;"> </font><font style="letter-spacing:-0.15pt;">streamlining</font><font style="letter-spacing:-0.65pt;"> </font><font style="letter-spacing:-0.15pt;">initiatives</font><font style="letter-spacing:-0.65pt;"> </font><font style="letter-spacing:-0.15pt;">have</font><font style="letter-spacing:-0.65pt;"> </font><font style="letter-spacing:-0.15pt;">been</font><font style="letter-spacing:-0.65pt;"> </font><font style="letter-spacing:-0.15pt;">underway</font><font style="letter-spacing:-0.65pt;"> </font>for<font style="letter-spacing:-0.65pt;"> </font><font style="letter-spacing:-0.15pt;">several</font><font style="letter-spacing:-0.65pt;"> </font><font style="letter-spacing:-0.15pt;">months,</font><font style="letter-spacing:-0.65pt;"> </font><font style="letter-spacing:-0.15pt;">including</font><font style="letter-spacing:-0.65pt;"> </font>the<font style="letter-spacing:-0.65pt;"> </font><font style="letter-spacing:-0.15pt;">consolidation </font>of four geography-based reporting segments into three reporting segments, and the elimination of management structures that were made redundant as a result of such consolidation. Staff, wage and benefit reductions have been significant. In addition, the company has stacked underutilized equipment and selectively disposed of vessels in recent quarters.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Going forward, while I do not believe we will shrink our way to long-term growth and profitability, we will continue to look at the company's operating<font style="letter-spacing:-1.15pt;"> </font>footprint<font style="letter-spacing:-1.15pt;"> </font>and<font style="letter-spacing:-1.15pt;"> </font>associated<font style="letter-spacing:-1.15pt;"> </font>shore-based<font style="letter-spacing:-1.15pt;"> </font>support<font style="letter-spacing:-1.15pt;"> </font>costs<font style="letter-spacing:-1.15pt;"> </font>in<font style="letter-spacing:-1.15pt;"> </font>order<font style="letter-spacing:-1.15pt;"> </font>to<font style="letter-spacing:-1.15pt;"> </font>identify<font style="letter-spacing:-1.15pt;"> </font>opportunities<font style="letter-spacing:-1.15pt;"> </font>for<font style="letter-spacing:-1.15pt;"> </font>additional<font style="letter-spacing:-1.15pt;"> </font>cost<font style="letter-spacing:-1.15pt;"> </font>savings<font style="letter-spacing:-1.15pt;"> </font>and<font style="letter-spacing:-1.15pt;"> </font>achieve<font style="letter-spacing:-1.15pt;"> </font>the<font style="letter-spacing:-1.15pt;"> </font>company's near-term objective of reaching cash flow breakeven. Due to the nature and scope of several of the changes in process, the company may incur restructuring<font style="letter-spacing:-0.1pt;"> </font>charges<font style="letter-spacing:-0.1pt;"> </font>at<font style="letter-spacing:-0.1pt;"> </font>some<font style="letter-spacing:-0.1pt;"> </font>point<font style="letter-spacing:-0.1pt;"> </font>in<font style="letter-spacing:-0.1pt;"> </font>2018.<font style="letter-spacing:-0.1pt;"> </font>It<font style="letter-spacing:-0.1pt;"> </font>may<font style="letter-spacing:-0.1pt;"> </font>also<font style="letter-spacing:-0.1pt;"> </font>take<font style="letter-spacing:-0.1pt;"> </font>a<font style="letter-spacing:-0.1pt;"> </font>couple<font style="letter-spacing:-0.1pt;"> </font>of<font style="letter-spacing:-0.1pt;"> </font>quarters<font style="letter-spacing:-0.1pt;"> </font>for<font style="letter-spacing:-0.1pt;"> </font>recently<font style="letter-spacing:-0.1pt;"> </font>implemented<font style="letter-spacing:-0.1pt;"> </font>cost<font style="letter-spacing:-0.1pt;"> </font>reductions<font style="letter-spacing:-0.1pt;"> </font>to<font style="letter-spacing:-0.1pt;"> </font>be<font style="letter-spacing:-0.1pt;"> </font>fully<font style="letter-spacing:-0.1pt;"> </font>reflected<font style="letter-spacing:-0.1pt;"> </font>in our financial results. As we exit 2018, run rate G&amp;A, again excluding stock-based compensation expense, should be below $25 million per<font style="letter-spacing:-1.05pt;"> </font>quarter or down +50% from pre-downturn levels.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">As I mentioned, another focus area for our team at the moment is the continued rationalization of our vessel fleet. We are continuing to evaluate the status of our stacked fleet and its suitability for our customers' future requirements on a region-by-region basis. You have heard from us, our peers and a number of analysts that there is a significant overcapacity problem in the OSV sector. As a market leader, Tidewater will do its part to reduce<font style="letter-spacing:-0.3pt;"> </font>excess<font style="letter-spacing:-0.3pt;"> </font>vessel<font style="letter-spacing:-0.3pt;"> </font>capacity,<font style="letter-spacing:-0.3pt;"> </font>either<font style="letter-spacing:-0.3pt;"> </font>by<font style="letter-spacing:-0.3pt;"> </font>scrapping<font style="letter-spacing:-0.3pt;"> </font>or<font style="letter-spacing:-0.3pt;"> </font>selling<font style="letter-spacing:-0.3pt;"> </font>outside<font style="letter-spacing:-0.3pt;"> </font>of<font style="letter-spacing:-0.3pt;"> </font>the<font style="letter-spacing:-0.3pt;"> </font>oil<font style="letter-spacing:-0.3pt;"> </font>and<font style="letter-spacing:-0.3pt;"> </font>gas<font style="letter-spacing:-0.3pt;"> </font>services<font style="letter-spacing:-0.3pt;"> </font>industry<font style="letter-spacing:-0.3pt;"> </font>the<font style="letter-spacing:-0.3pt;"> </font>older,<font style="letter-spacing:-0.3pt;"> </font>less<font style="letter-spacing:-0.3pt;"> </font>capable<font style="letter-spacing:-0.3pt;"> </font>vessels<font style="letter-spacing:-0.3pt;"> </font>that<font style="letter-spacing:-0.3pt;"> </font>can<font style="letter-spacing:-0.3pt;"> </font>only serve to impede a sustained improvement in OSV utilization and day rates, and ultimately will cause the OSV sector to generally lag expected increases in offshore drilling activity.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Subsequent<font style="letter-spacing:-0.15pt;"> </font>to<font style="letter-spacing:-0.15pt;"> </font>December<font style="letter-spacing:-0.15pt;"> </font>31,<font style="letter-spacing:-0.15pt;"> </font>Tidewater's<font style="letter-spacing:-0.15pt;"> </font>dispose<font style="letter-spacing:-0.15pt;"> </font>of<font style="letter-spacing:-0.15pt;"> </font>18<font style="letter-spacing:-0.15pt;"> </font>vessels,<font style="letter-spacing:-0.15pt;"> </font>16<font style="letter-spacing:-0.15pt;"> </font>of<font style="letter-spacing:-0.15pt;"> </font>which<font style="letter-spacing:-0.15pt;"> </font>were<font style="letter-spacing:-0.15pt;"> </font>sold<font style="letter-spacing:-0.15pt;"> </font>as<font style="letter-spacing:-0.15pt;"> </font>scrap.<font style="letter-spacing:-0.15pt;"> </font>In<font style="letter-spacing:-0.15pt;"> </font>the<font style="letter-spacing:-0.15pt;"> </font>last<font style="letter-spacing:-0.15pt;"> </font>four<font style="letter-spacing:-0.15pt;"> </font>years,<font style="letter-spacing:-0.15pt;"> </font>the<font style="letter-spacing:-0.15pt;"> </font>company<font style="letter-spacing:-0.15pt;"> </font>has<font style="letter-spacing:-0.15pt;"> </font>disposed<font style="letter-spacing:-0.15pt;"> </font>of 76 vessels, 28 of which were sold as scrap. Tidewater will continue to report its progress on further rationalizing the fleet.</p>
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<p style="margin-bottom:4pt;margin-top:4pt;margin-left:4pt;;margin-right:0.73%;text-indent:0pt;;color:#FFFFFF;font-size:12pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">MARCH<font style="letter-spacing:-0.75pt;"> </font>15,<font style="letter-spacing:-0.75pt;"> </font>2018<font style="letter-spacing:-0.75pt;"> </font>/<font style="letter-spacing:-0.75pt;"> </font>3:00PM,<font style="letter-spacing:-0.75pt;"> </font>TDW<font style="letter-spacing:-0.75pt;"> </font>-<font style="letter-spacing:-0.75pt;"> </font>Tidewater<font style="letter-spacing:-0.75pt;"> </font>Inc.<font style="letter-spacing:-0.75pt;"> </font>Earnings<font style="letter-spacing:-0.75pt;"> </font>Call<font style="letter-spacing:-0.75pt;"> </font>for<font style="letter-spacing:-0.75pt;"> </font>the<font style="letter-spacing:-0.75pt;"> </font>Three<font style="letter-spacing:-0.75pt;"> </font>Months<font style="letter-spacing:-0.75pt;"> </font>Ended<font style="letter-spacing:-0.75pt;"> </font>December<font style="letter-spacing:-0.75pt;"> </font>31,<font style="letter-spacing:-0.75pt;"> </font>2017 and<font style="letter-spacing:-0.25pt;"> </font>the<font style="letter-spacing:-0.25pt;"> </font>Nine<font style="letter-spacing:-0.25pt;"> </font>Month<font style="letter-spacing:-0.25pt;"> </font>Transition<font style="letter-spacing:-0.25pt;"> </font>Period<font style="letter-spacing:-0.25pt;"> </font>from<font style="letter-spacing:-0.25pt;"> </font>April<font style="letter-spacing:-0.25pt;"> </font>1,<font style="letter-spacing:-0.25pt;"> </font>2017<font style="letter-spacing:-0.25pt;"> </font>through<font style="letter-spacing:-0.25pt;"> </font>December<font style="letter-spacing:-0.25pt;"> </font>31,<font style="letter-spacing:-0.25pt;"> </font>2017</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:3pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:10.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">A third near-term priority we have is to refine plans to cost-effectively reactivate currently idle equipment, recognizing that the ownership of modern,<font style="letter-spacing:-0.15pt;"> </font>high<font style="letter-spacing:-0.15pt;"> </font>specification,<font style="letter-spacing:-0.15pt;"> </font>but<font style="letter-spacing:-0.15pt;"> </font>currently<font style="letter-spacing:-0.15pt;"> </font>inactive<font style="letter-spacing:-0.15pt;"> </font>tonnage<font style="letter-spacing:-0.15pt;"> </font>and<font style="letter-spacing:-0.15pt;"> </font>the<font style="letter-spacing:-0.15pt;"> </font>ability<font style="letter-spacing:-0.15pt;"> </font>to<font style="letter-spacing:-0.15pt;"> </font>fund<font style="letter-spacing:-0.15pt;"> </font>reactivations<font style="letter-spacing:-0.15pt;"> </font>when<font style="letter-spacing:-0.15pt;"> </font>the<font style="letter-spacing:-0.15pt;"> </font>customer<font style="letter-spacing:-0.15pt;"> </font>can<font style="letter-spacing:-0.15pt;"> </font>help<font style="letter-spacing:-0.15pt;"> </font>us<font style="letter-spacing:-0.15pt;"> </font>make<font style="letter-spacing:-0.15pt;"> </font>the<font style="letter-spacing:-0.15pt;"> </font>business case to do so are potential competitive advantages for Tidewater.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">And now, I will turn the call over to Quinn Fanning to cover our financial performance this quarter.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;"><a name="4._Quinn_P._Fanning"></a><a name="_bookmark2"></a>Quinn P. Fanning <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Tidewater Inc. - Executive VP &amp; CFO</font></p>
<p style="text-align:justify;margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Thank you, John. Good morning, everyone. As you know, we issued our earnings press release after the market closed yesterday. Our transition report for the period from April 1, 2017, through December 31, 2017, will be filed on Form 10-K through the EDGAR filing service later today. The nine-month transition period is consistent with the company's previously disclosed decision to change our fiscal year-end from March 31 to December 31.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">As<font style="letter-spacing:-0.3pt;"> </font>was<font style="letter-spacing:-0.3pt;"> </font>highlighted<font style="letter-spacing:-0.3pt;"> </font>in<font style="letter-spacing:-0.3pt;"> </font>earnings<font style="letter-spacing:-0.3pt;"> </font>press<font style="letter-spacing:-0.3pt;"> </font>release<font style="letter-spacing:-0.3pt;"> </font>and<font style="letter-spacing:-0.3pt;"> </font>will<font style="letter-spacing:-0.3pt;"> </font>be<font style="letter-spacing:-0.3pt;"> </font>more<font style="letter-spacing:-0.3pt;"> </font>fully<font style="letter-spacing:-0.3pt;"> </font>explained<font style="letter-spacing:-0.3pt;"> </font>on<font style="letter-spacing:-0.3pt;"> </font>the<font style="letter-spacing:-0.3pt;"> </font>company's<font style="letter-spacing:-0.3pt;"> </font>December<font style="letter-spacing:-0.3pt;"> </font>31,<font style="letter-spacing:-0.3pt;"> </font>2017,<font style="letter-spacing:-0.3pt;"> </font>10-K,<font style="letter-spacing:-0.3pt;"> </font>upon<font style="letter-spacing:-0.3pt;"> </font>emergence<font style="letter-spacing:-0.3pt;"> </font>on<font style="letter-spacing:-0.3pt;"> </font>July 31, 2017, from a court-supervised restructuring, the company adopted "fresh start" accounting and will report its financial position and results of operations through July 31 as "Predecessor" activities. We will report our financial position and results of operations subsequent to July 31 as "Successor" activities.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">I will also call your attention to the financial tables included with last evening's press release. Financial results, balance sheet data and select operating statistics are presented covering five quarters (or equivalent periods), straddling both Predecessor and Successor activities. Similarly, operating and financial detail is presented by asset class and based on our three geography-based reporting segments.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We have also included consolidated EBITDA as a non-GAAP performance and liquidity measure, as well as reconciliations to the most directly comparable GAAP financial measures.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">With<font style="letter-spacing:-0.25pt;"> </font>that<font style="letter-spacing:-0.25pt;"> </font>context<font style="letter-spacing:-0.25pt;"> </font>(and<font style="letter-spacing:-0.25pt;"> </font>as<font style="letter-spacing:-0.25pt;"> </font>John<font style="letter-spacing:-0.25pt;"> </font>noted),<font style="letter-spacing:-0.25pt;"> </font>we<font style="letter-spacing:-0.25pt;"> </font>reported<font style="letter-spacing:-0.25pt;"> </font>net<font style="letter-spacing:-0.25pt;"> </font>loss<font style="letter-spacing:-0.25pt;"> </font>for<font style="letter-spacing:-0.25pt;"> </font>the<font style="letter-spacing:-0.25pt;"> </font>three<font style="letter-spacing:-0.25pt;"> </font>months<font style="letter-spacing:-0.25pt;"> </font>ended<font style="letter-spacing:-0.25pt;"> </font>December<font style="letter-spacing:-0.25pt;"> </font>31,<font style="letter-spacing:-0.25pt;"> </font>2017,<font style="letter-spacing:-0.25pt;"> </font>of<font style="letter-spacing:-0.25pt;"> </font>$23.6<font style="letter-spacing:-0.25pt;"> </font>million<font style="letter-spacing:-0.25pt;"> </font>or<font style="letter-spacing:-0.25pt;"> </font>$1.02<font style="letter-spacing:-0.25pt;"> </font>per<font style="letter-spacing:-0.25pt;"> </font>common share.<font style="letter-spacing:-1.05pt;"> </font>The<font style="letter-spacing:-1.05pt;"> </font>net<font style="letter-spacing:-1.05pt;"> </font>loss<font style="letter-spacing:-1.05pt;"> </font>includes<font style="letter-spacing:-1.05pt;"> </font>$16.8<font style="letter-spacing:-1.05pt;"> </font>million,<font style="letter-spacing:-1.05pt;"> </font>or<font style="letter-spacing:-1.05pt;"> </font>$0.72<font style="letter-spacing:-1.05pt;"> </font>per<font style="letter-spacing:-1.05pt;"> </font>share,<font style="letter-spacing:-1.05pt;"> </font>in<font style="letter-spacing:-1.05pt;"> </font>non-cash<font style="letter-spacing:-1.05pt;"> </font>asset<font style="letter-spacing:-1.05pt;"> </font>impairment<font style="letter-spacing:-1.05pt;"> </font>charges<font style="letter-spacing:-1.05pt;"> </font>that<font style="letter-spacing:-1.05pt;"> </font>resulted<font style="letter-spacing:-1.05pt;"> </font>from<font style="letter-spacing:-1.05pt;"> </font>impairment<font style="letter-spacing:-1.05pt;"> </font>reviews<font style="letter-spacing:-1.05pt;"> </font>undertaken during<font style="letter-spacing:-0.8pt;"> </font>the<font style="letter-spacing:-0.8pt;"> </font>period<font style="letter-spacing:-0.8pt;"> </font>and<font style="letter-spacing:-0.8pt;"> </font>$2.4<font style="letter-spacing:-0.8pt;"> </font>million,<font style="letter-spacing:-0.8pt;"> </font>or<font style="letter-spacing:-0.8pt;"> </font>$0.10<font style="letter-spacing:-0.8pt;"> </font>per<font style="letter-spacing:-0.8pt;"> </font>share,<font style="letter-spacing:-0.8pt;"> </font>of<font style="letter-spacing:-0.8pt;"> </font>reorganization<font style="letter-spacing:-0.8pt;"> </font>items<font style="letter-spacing:-0.8pt;"> </font>related<font style="letter-spacing:-0.8pt;"> </font>to<font style="letter-spacing:-0.8pt;"> </font>the<font style="letter-spacing:-0.8pt;"> </font>company's<font style="letter-spacing:-0.8pt;"> </font>chapter<font style="letter-spacing:-0.8pt;"> </font>11<font style="letter-spacing:-0.8pt;"> </font>proceedings.<font style="letter-spacing:-0.8pt;"> </font>John<font style="letter-spacing:-0.8pt;"> </font>also<font style="letter-spacing:-0.8pt;"> </font>referenced the exclusion of the Jones Act-related warrants from the calculation of the loss per share, which is due to U.S. GAAP's anti-dilution rules.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">As<font style="letter-spacing:-1.05pt;"> </font>previously<font style="letter-spacing:-1.05pt;"> </font>disclosed,<font style="letter-spacing:-1.05pt;"> </font>with<font style="letter-spacing:-1.05pt;"> </font>the<font style="letter-spacing:-1.05pt;"> </font>settlement<font style="letter-spacing:-1.05pt;"> </font>of<font style="letter-spacing:-1.05pt;"> </font>the<font style="letter-spacing:-1.05pt;"> </font>remaining<font style="letter-spacing:-1.05pt;"> </font>sale-leaseback<font style="letter-spacing:-1.05pt;"> </font>claim,<font style="letter-spacing:-1.05pt;"> </font>as<font style="letter-spacing:-1.05pt;"> </font>of<font style="letter-spacing:-1.05pt;"> </font>mid-February<font style="letter-spacing:-1.05pt;"> </font>2018,<font style="letter-spacing:-1.05pt;"> </font>in<font style="letter-spacing:-1.05pt;"> </font>total,<font style="letter-spacing:-1.05pt;"> </font>the<font style="letter-spacing:-1.05pt;"> </font>company<font style="letter-spacing:-1.05pt;"> </font>had<font style="letter-spacing:-1.05pt;"> </font>approximately 30 million common shares and New Creditor Warrants outstanding. As many of you know, the New Credit Warrants have a strike price of $0.001 per share. So at least in our view, the New Credit Warrants are economically equivalent to common shares.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Vessel revenue and vessel operating margin for the quarter ended December 31 was $101 million and $33 million, respectively. In percentage terms, vessel operating margin for the quarter was approximately 33%.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Consolidated EBITDA for the three months ended December 31, 2017, which excludes reorganization items and asset impairment charges, but includes<font style="letter-spacing:-1.1pt;"> </font>$2.6<font style="letter-spacing:-1.1pt;"> </font>million<font style="letter-spacing:-1.1pt;"> </font>of<font style="letter-spacing:-1.1pt;"> </font>stock-based<font style="letter-spacing:-1.1pt;"> </font>compensation<font style="letter-spacing:-1.1pt;"> </font>expense,<font style="letter-spacing:-1.1pt;"> </font>was<font style="letter-spacing:-1.1pt;"> </font>$13.3<font style="letter-spacing:-1.1pt;"> </font>million.<font style="letter-spacing:-1.1pt;"> </font>For<font style="letter-spacing:-1.1pt;"> </font>reference,<font style="letter-spacing:-1.1pt;"> </font>consolidated<font style="letter-spacing:-1.1pt;"> </font>EBITDA<font style="letter-spacing:-1.1pt;"> </font>for<font style="letter-spacing:-1.1pt;"> </font>the<font style="letter-spacing:-1.1pt;"> </font>four<font style="letter-spacing:-1.1pt;"> </font>quarters<font style="letter-spacing:-1.1pt;"> </font>(or<font style="letter-spacing:-1.1pt;"> </font>equivalent periods) ended December 31, 2017, was $71.6 million. Again, EBITDA here excludes reorganization items and asset impairment charges, but for this<font style="letter-spacing:-0.1pt;"> </font>period,<font style="letter-spacing:-0.1pt;"> </font>includes<font style="letter-spacing:-0.1pt;"> </font>$4.6<font style="letter-spacing:-0.1pt;"> </font>million<font style="letter-spacing:-0.1pt;"> </font>of<font style="letter-spacing:-0.1pt;"> </font>stock-based<font style="letter-spacing:-0.1pt;"> </font>compensation<font style="letter-spacing:-0.1pt;"> </font>expense<font style="letter-spacing:-0.1pt;"> </font>and<font style="letter-spacing:-0.1pt;"> </font>$15.8<font style="letter-spacing:-0.1pt;"> </font>million<font style="letter-spacing:-0.1pt;"> </font>of<font style="letter-spacing:-0.1pt;"> </font>vessel<font style="letter-spacing:-0.1pt;"> </font>operating<font style="letter-spacing:-0.1pt;"> </font>lease<font style="letter-spacing:-0.1pt;"> </font>expense.<font style="letter-spacing:-0.1pt;"> </font>The<font style="letter-spacing:-0.1pt;"> </font>vessel<font style="letter-spacing:-0.1pt;"> </font>operating lease<font style="letter-spacing:-0.25pt;"> </font>expense<font style="letter-spacing:-0.25pt;"> </font>relates<font style="letter-spacing:-0.25pt;"> </font>to<font style="letter-spacing:-0.25pt;"> </font>the<font style="letter-spacing:-0.25pt;"> </font>16<font style="letter-spacing:-0.25pt;"> </font>vessels<font style="letter-spacing:-0.25pt;"> </font>that<font style="letter-spacing:-0.25pt;"> </font>were<font style="letter-spacing:-0.25pt;"> </font>returned<font style="letter-spacing:-0.25pt;"> </font>to<font style="letter-spacing:-0.25pt;"> </font>their<font style="letter-spacing:-0.25pt;"> </font>respective<font style="letter-spacing:-0.25pt;"> </font>owners<font style="letter-spacing:-0.25pt;"> </font>in<font style="letter-spacing:-0.25pt;"> </font>connection<font style="letter-spacing:-0.25pt;"> </font>with<font style="letter-spacing:-0.25pt;"> </font>our<font style="letter-spacing:-0.25pt;"> </font>Plan<font style="letter-spacing:-0.25pt;"> </font>of<font style="letter-spacing:-0.25pt;"> </font>Reorganization<font style="letter-spacing:-0.25pt;"> </font>and,<font style="letter-spacing:-0.25pt;"> </font>therefore, will not be a factor in go-forward financial results. Tables reconciling EBITDA to our net loss and cash provided or used in operating activities are on Page 26 of our press release.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Interest<font style="letter-spacing:-0.4pt;"> </font>expense<font style="letter-spacing:-0.4pt;"> </font>for<font style="letter-spacing:-0.4pt;"> </font>the<font style="letter-spacing:-0.4pt;"> </font>December<font style="letter-spacing:-0.4pt;"> </font>quarter,<font style="letter-spacing:-0.4pt;"> </font>which<font style="letter-spacing:-0.4pt;"> </font>reflects<font style="letter-spacing:-0.4pt;"> </font>our<font style="letter-spacing:-0.4pt;"> </font>post-reorganization<font style="letter-spacing:-0.4pt;"> </font>capital<font style="letter-spacing:-0.4pt;"> </font>structure,<font style="letter-spacing:-0.4pt;"> </font>was<font style="letter-spacing:-0.4pt;"> </font>$7.8<font style="letter-spacing:-0.4pt;"> </font>million.<font style="letter-spacing:-0.4pt;"> </font>While<font style="letter-spacing:-0.4pt;"> </font>we<font style="letter-spacing:-0.4pt;"> </font>recognized<font style="letter-spacing:-0.4pt;"> </font>the<font style="letter-spacing:-0.4pt;"> </font>$2.7 million<font style="letter-spacing:-0.8pt;"> </font>tax<font style="letter-spacing:-0.8pt;"> </font>benefit<font style="letter-spacing:-0.8pt;"> </font>in<font style="letter-spacing:-0.8pt;"> </font>the<font style="letter-spacing:-0.8pt;"> </font>December<font style="letter-spacing:-0.8pt;"> </font>quarter,<font style="letter-spacing:-0.8pt;"> </font>cash<font style="letter-spacing:-0.8pt;"> </font>paid<font style="letter-spacing:-0.8pt;"> </font>for<font style="letter-spacing:-0.8pt;"> </font>taxes<font style="letter-spacing:-0.8pt;"> </font>during<font style="letter-spacing:-0.8pt;"> </font>the<font style="letter-spacing:-0.8pt;"> </font>same<font style="letter-spacing:-0.8pt;"> </font>period<font style="letter-spacing:-0.8pt;"> </font>was<font style="letter-spacing:-0.8pt;"> </font>approximately<font style="letter-spacing:-0.8pt;"> </font>$3.3<font style="letter-spacing:-0.8pt;"> </font>million,<font style="letter-spacing:-0.8pt;"> </font>which<font style="letter-spacing:-0.8pt;"> </font>is<font style="letter-spacing:-0.8pt;"> </font>generally<font style="letter-spacing:-0.8pt;"> </font>consistent with<font style="letter-spacing:-0.25pt;"> </font>our<font style="letter-spacing:-0.25pt;"> </font>quarterly<font style="letter-spacing:-0.25pt;"> </font>outlays<font style="letter-spacing:-0.25pt;"> </font>for<font style="letter-spacing:-0.25pt;"> </font>taxes<font style="letter-spacing:-0.25pt;"> </font>over<font style="letter-spacing:-0.25pt;"> </font>the<font style="letter-spacing:-0.25pt;"> </font>last<font style="letter-spacing:-0.25pt;"> </font>couple<font style="letter-spacing:-0.25pt;"> </font>of<font style="letter-spacing:-0.25pt;"> </font>quarters<font style="letter-spacing:-0.25pt;"> </font>(or<font style="letter-spacing:-0.25pt;"> </font>equivalent<font style="letter-spacing:-0.25pt;"> </font>periods).<font style="letter-spacing:-0.25pt;"> </font>As<font style="letter-spacing:-0.25pt;"> </font>noted<font style="letter-spacing:-0.25pt;"> </font>in<font style="letter-spacing:-0.25pt;"> </font>prior<font style="letter-spacing:-0.25pt;"> </font>earnings<font style="letter-spacing:-0.25pt;"> </font>calls,<font style="letter-spacing:-0.25pt;"> </font>cash<font style="letter-spacing:-0.25pt;"> </font>taxes<font style="letter-spacing:-0.25pt;"> </font>are<font style="letter-spacing:-0.25pt;"> </font>primarily driven<font style="letter-spacing:-0.5pt;"> </font>by<font style="letter-spacing:-0.5pt;"> </font>revenue-based<font style="letter-spacing:-0.5pt;"> </font>taxation<font style="letter-spacing:-0.5pt;"> </font>and<font style="letter-spacing:-0.5pt;"> </font>foreign<font style="letter-spacing:-0.5pt;"> </font>jurisdictions.<font style="letter-spacing:-0.5pt;"> </font>I<font style="letter-spacing:-0.5pt;"> </font>highlight<font style="letter-spacing:-0.5pt;"> </font>interest<font style="letter-spacing:-0.5pt;"> </font>and<font style="letter-spacing:-0.5pt;"> </font>tax<font style="letter-spacing:-0.5pt;"> </font>expense<font style="letter-spacing:-0.5pt;"> </font>in<font style="letter-spacing:-0.5pt;"> </font>particular<font style="letter-spacing:-0.5pt;"> </font>to<font style="letter-spacing:-0.5pt;"> </font>make<font style="letter-spacing:-0.5pt;"> </font>the<font style="letter-spacing:-0.5pt;"> </font>point<font style="letter-spacing:-0.5pt;"> </font>that<font style="letter-spacing:-0.5pt;"> </font>our<font style="letter-spacing:-0.5pt;"> </font>fixed<font style="letter-spacing:-0.5pt;"> </font>charge</p>
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<p style="margin-bottom:4pt;margin-top:4pt;margin-left:4pt;;margin-right:0.73%;text-indent:0pt;;color:#FFFFFF;font-size:12pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">MARCH<font style="letter-spacing:-0.75pt;"> </font>15,<font style="letter-spacing:-0.75pt;"> </font>2018<font style="letter-spacing:-0.75pt;"> </font>/<font style="letter-spacing:-0.75pt;"> </font>3:00PM,<font style="letter-spacing:-0.75pt;"> </font>TDW<font style="letter-spacing:-0.75pt;"> </font>-<font style="letter-spacing:-0.75pt;"> </font>Tidewater<font style="letter-spacing:-0.75pt;"> </font>Inc.<font style="letter-spacing:-0.75pt;"> </font>Earnings<font style="letter-spacing:-0.75pt;"> </font>Call<font style="letter-spacing:-0.75pt;"> </font>for<font style="letter-spacing:-0.75pt;"> </font>the<font style="letter-spacing:-0.75pt;"> </font>Three<font style="letter-spacing:-0.75pt;"> </font>Months<font style="letter-spacing:-0.75pt;"> </font>Ended<font style="letter-spacing:-0.75pt;"> </font>December<font style="letter-spacing:-0.75pt;"> </font>31,<font style="letter-spacing:-0.75pt;"> </font>2017 and<font style="letter-spacing:-0.25pt;"> </font>the<font style="letter-spacing:-0.25pt;"> </font>Nine<font style="letter-spacing:-0.25pt;"> </font>Month<font style="letter-spacing:-0.25pt;"> </font>Transition<font style="letter-spacing:-0.25pt;"> </font>Period<font style="letter-spacing:-0.25pt;"> </font>from<font style="letter-spacing:-0.25pt;"> </font>April<font style="letter-spacing:-0.25pt;"> </font>1,<font style="letter-spacing:-0.25pt;"> </font>2017<font style="letter-spacing:-0.25pt;"> </font>through<font style="letter-spacing:-0.25pt;"> </font>December<font style="letter-spacing:-0.25pt;"> </font>31,<font style="letter-spacing:-0.25pt;"> </font>2017</p></td>
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<p style="text-align:justify;margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">burden, which includes G&amp;A, excluding stock-based compensation expense, interest expense and cash taxes, is trending toward $35 million to</p>
<p style="text-align:justify;margin-top:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$40<font style="letter-spacing:-0.6pt;"> </font>million<font style="letter-spacing:-0.6pt;"> </font>per<font style="letter-spacing:-0.6pt;"> </font>quarter.<font style="letter-spacing:-0.6pt;"> </font>We<font style="letter-spacing:-0.6pt;"> </font>think<font style="letter-spacing:-0.6pt;"> </font>vessel<font style="letter-spacing:-0.6pt;"> </font>operating<font style="letter-spacing:-0.6pt;"> </font>margin<font style="letter-spacing:-0.6pt;"> </font>relative<font style="letter-spacing:-0.6pt;"> </font>to<font style="letter-spacing:-0.6pt;"> </font>our<font style="letter-spacing:-0.6pt;"> </font>fixed<font style="letter-spacing:-0.6pt;"> </font>charge<font style="letter-spacing:-0.6pt;"> </font>burden<font style="letter-spacing:-0.6pt;"> </font>is<font style="letter-spacing:-0.6pt;"> </font>a<font style="letter-spacing:-0.6pt;"> </font>reasonable<font style="letter-spacing:-0.6pt;"> </font>proxy<font style="letter-spacing:-0.6pt;"> </font>for<font style="letter-spacing:-0.6pt;"> </font>cash<font style="letter-spacing:-0.6pt;"> </font>produced<font style="letter-spacing:-0.6pt;"> </font>(or<font style="letter-spacing:-0.6pt;"> </font>consumed) by<font style="letter-spacing:-0.4pt;"> </font>operating<font style="letter-spacing:-0.4pt;"> </font>activities,<font style="letter-spacing:-0.4pt;"> </font>and<font style="letter-spacing:-0.4pt;"> </font>is<font style="letter-spacing:-0.4pt;"> </font>a<font style="letter-spacing:-0.4pt;"> </font>basis<font style="letter-spacing:-0.4pt;"> </font>upon<font style="letter-spacing:-0.4pt;"> </font>which<font style="letter-spacing:-0.4pt;"> </font>we<font style="letter-spacing:-0.4pt;"> </font>and<font style="letter-spacing:-0.4pt;"> </font>you<font style="letter-spacing:-0.4pt;"> </font>can<font style="letter-spacing:-0.4pt;"> </font>measure<font style="letter-spacing:-0.4pt;"> </font>the<font style="letter-spacing:-0.4pt;"> </font>company's<font style="letter-spacing:-0.4pt;"> </font>quarter-over-quarter<font style="letter-spacing:-0.4pt;"> </font>progress<font style="letter-spacing:-0.4pt;"> </font>towards<font style="letter-spacing:-0.4pt;"> </font>our<font style="letter-spacing:-0.4pt;"> </font>goal<font style="letter-spacing:-0.4pt;"> </font>of<font style="letter-spacing:-0.4pt;"> </font>a<font style="letter-spacing:-0.4pt;"> </font>cash flow breakeven.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Looking<font style="letter-spacing:-0.55pt;"> </font>at<font style="letter-spacing:-0.55pt;"> </font>the<font style="letter-spacing:-0.55pt;"> </font>fleet,<font style="letter-spacing:-0.55pt;"> </font>the<font style="letter-spacing:-0.55pt;"> </font>average<font style="letter-spacing:-0.55pt;"> </font>number<font style="letter-spacing:-0.55pt;"> </font>of<font style="letter-spacing:-0.55pt;"> </font>vessels<font style="letter-spacing:-0.55pt;"> </font>in<font style="letter-spacing:-0.55pt;"> </font>our<font style="letter-spacing:-0.55pt;"> </font>fleet<font style="letter-spacing:-0.55pt;"> </font>for<font style="letter-spacing:-0.55pt;"> </font>the<font style="letter-spacing:-0.55pt;"> </font>December<font style="letter-spacing:-0.55pt;"> </font>quarter<font style="letter-spacing:-0.55pt;"> </font>was<font style="letter-spacing:-0.55pt;"> </font>229<font style="letter-spacing:-0.55pt;"> </font>vessels,<font style="letter-spacing:-0.55pt;"> </font>which<font style="letter-spacing:-0.55pt;"> </font>is<font style="letter-spacing:-0.55pt;"> </font>down<font style="letter-spacing:-0.55pt;"> </font>22<font style="letter-spacing:-0.55pt;"> </font>vessels<font style="letter-spacing:-0.55pt;"> </font>from<font style="letter-spacing:-0.55pt;"> </font>the<font style="letter-spacing:-0.55pt;"> </font>average number of vessels for the three month period ended September 30, 2017. Of the 22 vessel decrease quarter-over-quarter, the return of leased vessels to their respective owners in connection with our Plan of Reorganization accounted for 15 vessels. Note that leased vessels that were returned<font style="letter-spacing:-0.4pt;"> </font>to<font style="letter-spacing:-0.4pt;"> </font>the<font style="letter-spacing:-0.4pt;"> </font>owners<font style="letter-spacing:-0.4pt;"> </font>pursuant<font style="letter-spacing:-0.4pt;"> </font>to<font style="letter-spacing:-0.4pt;"> </font>our<font style="letter-spacing:-0.4pt;"> </font>Plan<font style="letter-spacing:-0.4pt;"> </font>had<font style="letter-spacing:-0.4pt;"> </font>an<font style="letter-spacing:-0.4pt;"> </font>average<font style="letter-spacing:-0.4pt;"> </font>age<font style="letter-spacing:-0.4pt;"> </font>of<font style="letter-spacing:-0.4pt;"> </font>12<font style="letter-spacing:-0.4pt;"> </font>years.<font style="letter-spacing:-0.4pt;"> </font>As<font style="letter-spacing:-0.4pt;"> </font>John<font style="letter-spacing:-0.4pt;"> </font>noted,<font style="letter-spacing:-0.4pt;"> </font>we<font style="letter-spacing:-0.4pt;"> </font>have<font style="letter-spacing:-0.4pt;"> </font>scrapped<font style="letter-spacing:-0.4pt;"> </font>and<font style="letter-spacing:-0.4pt;"> </font>otherwise<font style="letter-spacing:-0.4pt;"> </font>disposed<font style="letter-spacing:-0.4pt;"> </font>of<font style="letter-spacing:-0.4pt;"> </font>a<font style="letter-spacing:-0.4pt;"> </font>number of vessels subsequent to December 31, so the average owned and operated fleet (and the stacked fleet in particular) should be further reduced during the March quarter. I will also note that the impairment charges recognized during the December quarter were driven by our decision to scrap vessels that are less likely to return to service in the Tidewater fleet over the next couple of years.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Of the 229 owned and operated vessels, on average, 140 vessels were active in the December quarter. Average active vessels and available days for<font style="letter-spacing:-0.45pt;"> </font>the<font style="letter-spacing:-0.45pt;"> </font>active<font style="letter-spacing:-0.45pt;"> </font>fleet,<font style="letter-spacing:-0.45pt;"> </font>which<font style="letter-spacing:-0.45pt;"> </font>were<font style="letter-spacing:-0.45pt;"> </font>approximately<font style="letter-spacing:-0.45pt;"> </font>12,900<font style="letter-spacing:-0.45pt;"> </font>days<font style="letter-spacing:-0.45pt;"> </font>in<font style="letter-spacing:-0.45pt;"> </font>the<font style="letter-spacing:-0.45pt;"> </font>December<font style="letter-spacing:-0.45pt;"> </font>quarter,<font style="letter-spacing:-0.45pt;"> </font>have<font style="letter-spacing:-0.45pt;"> </font>been<font style="letter-spacing:-0.45pt;"> </font>relatively<font style="letter-spacing:-0.45pt;"> </font>consistent<font style="letter-spacing:-0.45pt;"> </font>over<font style="letter-spacing:-0.45pt;"> </font>the<font style="letter-spacing:-0.45pt;"> </font>last<font style="letter-spacing:-0.45pt;"> </font>couple<font style="letter-spacing:-0.45pt;"> </font>of<font style="letter-spacing:-0.45pt;"> </font>quarters (or<font style="letter-spacing:-0.75pt;"> </font><font style="letter-spacing:-0.15pt;">equivalent</font><font style="letter-spacing:-0.75pt;"> </font><font style="letter-spacing:-0.15pt;">periods).</font><font style="letter-spacing:-0.75pt;"> </font><font style="letter-spacing:-0.15pt;">Utilization</font><font style="letter-spacing:-0.75pt;"> </font>of<font style="letter-spacing:-0.75pt;"> </font>the<font style="letter-spacing:-0.75pt;"> </font><font style="letter-spacing:-0.15pt;">active</font><font style="letter-spacing:-0.75pt;"> </font><font style="letter-spacing:-0.15pt;">fleet,</font><font style="letter-spacing:-0.75pt;"> </font>at<font style="letter-spacing:-0.75pt;"> </font><font style="letter-spacing:-0.15pt;">78.1%</font><font style="letter-spacing:-0.75pt;"> </font>in<font style="letter-spacing:-0.75pt;"> </font>the<font style="letter-spacing:-0.75pt;"> </font><font style="letter-spacing:-0.15pt;">December</font><font style="letter-spacing:-0.75pt;"> </font><font style="letter-spacing:-0.15pt;">quarter,</font><font style="letter-spacing:-0.75pt;"> </font>was<font style="letter-spacing:-0.75pt;"> </font>up<font style="letter-spacing:-0.75pt;"> </font><font style="letter-spacing:-0.15pt;">approximately</font><font style="letter-spacing:-0.75pt;"> </font>1<font style="letter-spacing:-0.75pt;"> </font><font style="letter-spacing:-0.15pt;">percentage</font><font style="letter-spacing:-0.75pt;"> </font><font style="letter-spacing:-0.15pt;">point</font><font style="letter-spacing:-0.75pt;"> </font><font style="letter-spacing:-0.15pt;">quarter-over-quarter. </font>Average day rates for the December quarter were approximately $10,100 and generally consistent with average day rates over the last couple of quarters.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Perhaps<font style="letter-spacing:-0.3pt;"> </font>obviously,<font style="letter-spacing:-0.3pt;"> </font>vessel<font style="letter-spacing:-0.3pt;"> </font>revenue<font style="letter-spacing:-0.3pt;"> </font>is<font style="letter-spacing:-0.3pt;"> </font>a<font style="letter-spacing:-0.3pt;"> </font>function<font style="letter-spacing:-0.3pt;"> </font>of<font style="letter-spacing:-0.3pt;"> </font>days<font style="letter-spacing:-0.3pt;"> </font>available<font style="letter-spacing:-0.3pt;"> </font>for<font style="letter-spacing:-0.3pt;"> </font>the<font style="letter-spacing:-0.3pt;"> </font>active<font style="letter-spacing:-0.3pt;"> </font>fleet,<font style="letter-spacing:-0.3pt;"> </font>utilization<font style="letter-spacing:-0.3pt;"> </font>of<font style="letter-spacing:-0.3pt;"> </font>the<font style="letter-spacing:-0.3pt;"> </font>active<font style="letter-spacing:-0.3pt;"> </font>fleet<font style="letter-spacing:-0.3pt;"> </font>and<font style="letter-spacing:-0.3pt;"> </font>average<font style="letter-spacing:-0.3pt;"> </font>day<font style="letter-spacing:-0.3pt;"> </font>rates,<font style="letter-spacing:-0.3pt;"> </font>all<font style="letter-spacing:-0.3pt;"> </font>of<font style="letter-spacing:-0.3pt;"> </font>which we<font style="letter-spacing:-0.8pt;"> </font>now<font style="letter-spacing:-0.8pt;"> </font>summarize<font style="letter-spacing:-0.8pt;"> </font>in<font style="letter-spacing:-0.8pt;"> </font>the<font style="letter-spacing:-0.8pt;"> </font>financial<font style="letter-spacing:-0.8pt;"> </font>schedules,<font style="letter-spacing:-0.8pt;"> </font>which<font style="letter-spacing:-0.8pt;"> </font>are<font style="letter-spacing:-0.8pt;"> </font>included<font style="letter-spacing:-0.8pt;"> </font>with<font style="letter-spacing:-0.8pt;"> </font>our<font style="letter-spacing:-0.8pt;"> </font>press<font style="letter-spacing:-0.8pt;"> </font>release.<font style="letter-spacing:-0.8pt;"> </font>As<font style="letter-spacing:-0.8pt;"> </font>noted<font style="letter-spacing:-0.8pt;"> </font>earlier,<font style="letter-spacing:-0.8pt;"> </font>additional<font style="letter-spacing:-0.8pt;"> </font>financial<font style="letter-spacing:-0.8pt;"> </font>and<font style="letter-spacing:-0.8pt;"> </font>operating<font style="letter-spacing:-0.8pt;"> </font>statistics are also included with the press release by asset class and geo-market.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Since our last earnings conference call, I will also note that the company completed the sale of its ROV assets for approximately $23 million.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:10.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The company also successfully resolved all outstanding disputes with the U.S. shipyard over the construction of two 5,400 deadweight ton PSVs. The first vessel has been delivered, and the second is scheduled for delivery in early summer, which will increase the U.S. flag fleet to 10 vessels,<font style="letter-spacing:-1.3pt;"> </font>9 of which are large, modern deepwater PSVs.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Finally,<font style="letter-spacing:-1pt;"> </font>as<font style="letter-spacing:-1pt;"> </font>required<font style="letter-spacing:-1pt;"> </font>by<font style="letter-spacing:-1pt;"> </font>the<font style="letter-spacing:-1pt;"> </font>indenture<font style="letter-spacing:-1pt;"> </font>governing<font style="letter-spacing:-1pt;"> </font>$350<font style="letter-spacing:-1pt;"> </font>million<font style="letter-spacing:-1pt;"> </font>senior<font style="letter-spacing:-1pt;"> </font>secured<font style="letter-spacing:-1pt;"> </font>notes<font style="letter-spacing:-1pt;"> </font>that<font style="letter-spacing:-1pt;"> </font>are<font style="letter-spacing:-1pt;"> </font>due<font style="letter-spacing:-1pt;"> </font>in<font style="letter-spacing:-1pt;"> </font>2022,<font style="letter-spacing:-1pt;"> </font>on<font style="letter-spacing:-1pt;"> </font>February<font style="letter-spacing:-1pt;"> </font>2,<font style="letter-spacing:-1pt;"> </font>2018,<font style="letter-spacing:-1pt;"> </font>the<font style="letter-spacing:-1pt;"> </font>company<font style="letter-spacing:-1pt;"> </font>commenced an offer to purchase, at par, up to $24.7 million of such notes using a portion of proceeds that the company has realized from asset dispositions. Less than $50,000 of notes were tendered in accordance with the terms and conditions of the tender offer and were ultimately purchased by the company. The remainder of the $24.7 million, including $21.3 million that was classified as restricted cash on our balance sheet at December 31,2017,<font style="letter-spacing:-0.2pt;"> </font>is<font style="letter-spacing:-0.2pt;"> </font>now<font style="letter-spacing:-0.2pt;"> </font>available<font style="letter-spacing:-0.2pt;"> </font>for<font style="letter-spacing:-0.2pt;"> </font>use<font style="letter-spacing:-0.2pt;"> </font>by<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>company<font style="letter-spacing:-0.2pt;"> </font>in<font style="letter-spacing:-0.2pt;"> </font>any<font style="letter-spacing:-0.2pt;"> </font>manner<font style="letter-spacing:-0.2pt;"> </font>that<font style="letter-spacing:-0.2pt;"> </font>is<font style="letter-spacing:-0.2pt;"> </font>not<font style="letter-spacing:-0.2pt;"> </font>prohibited<font style="letter-spacing:-0.2pt;"> </font>by<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>indenture.<font style="letter-spacing:-0.2pt;"> </font>To<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>extent<font style="letter-spacing:-0.2pt;"> </font>we<font style="letter-spacing:-0.2pt;"> </font>report<font style="letter-spacing:-0.2pt;"> </font>restricted<font style="letter-spacing:-0.2pt;"> </font>cash<font style="letter-spacing:-0.2pt;"> </font>on our<font style="letter-spacing:-0.1pt;"> </font>balance<font style="letter-spacing:-0.1pt;"> </font>sheet,<font style="letter-spacing:-0.1pt;"> </font>it<font style="letter-spacing:-0.1pt;"> </font>will<font style="letter-spacing:-0.1pt;"> </font>likely<font style="letter-spacing:-0.1pt;"> </font>be<font style="letter-spacing:-0.1pt;"> </font>related<font style="letter-spacing:-0.1pt;"> </font>to<font style="letter-spacing:-0.1pt;"> </font>our<font style="letter-spacing:-0.1pt;"> </font>ongoing<font style="letter-spacing:-0.1pt;"> </font>requirement<font style="letter-spacing:-0.1pt;"> </font>to<font style="letter-spacing:-0.1pt;"> </font>offer<font style="letter-spacing:-0.1pt;"> </font>to<font style="letter-spacing:-0.1pt;"> </font>purchase<font style="letter-spacing:-0.1pt;"> </font>notes<font style="letter-spacing:-0.1pt;"> </font>with<font style="letter-spacing:-0.1pt;"> </font>a<font style="letter-spacing:-0.1pt;"> </font>portion<font style="letter-spacing:-0.1pt;"> </font>of<font style="letter-spacing:-0.1pt;"> </font>asset<font style="letter-spacing:-0.1pt;"> </font>disposition<font style="letter-spacing:-0.1pt;"> </font>proceeds.<font style="letter-spacing:-0.1pt;"> </font>As<font style="letter-spacing:-0.1pt;"> </font>a result, we think of our net debt position as gross interest-bearing debt net of cash and restricted cash.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In<font style="letter-spacing:-0.2pt;"> </font>regards<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>balance<font style="letter-spacing:-0.2pt;"> </font>sheet,<font style="letter-spacing:-0.2pt;"> </font>as<font style="letter-spacing:-0.2pt;"> </font>mentioned<font style="letter-spacing:-0.2pt;"> </font>on<font style="letter-spacing:-0.2pt;"> </font>our<font style="letter-spacing:-0.2pt;"> </font>last<font style="letter-spacing:-0.2pt;"> </font>earnings<font style="letter-spacing:-0.2pt;"> </font>conference<font style="letter-spacing:-0.2pt;"> </font>call<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>again,<font style="letter-spacing:-0.2pt;"> </font>at<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>top<font style="letter-spacing:-0.2pt;"> </font>of<font style="letter-spacing:-0.2pt;"> </font>my<font style="letter-spacing:-0.2pt;"> </font>remarks<font style="letter-spacing:-0.2pt;"> </font>today,<font style="letter-spacing:-0.2pt;"> </font>balance<font style="letter-spacing:-0.2pt;"> </font>sheet<font style="letter-spacing:-0.2pt;"> </font>values as of December 31 reflect the de-levering associated with our Plan of Reorganization, emergence consideration paid in connection with the Plan and "fresh start" accounting adjustments.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">With $453 million of cash, net debt at December 31 was negative $5 million and net working capital, excluding cash, was approximately $172 million.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Cash<font style="letter-spacing:-0.5pt;"> </font>used<font style="letter-spacing:-0.5pt;"> </font>by<font style="letter-spacing:-0.5pt;"> </font>operating<font style="letter-spacing:-0.5pt;"> </font>activities<font style="letter-spacing:-0.5pt;"> </font>for<font style="letter-spacing:-0.5pt;"> </font>the<font style="letter-spacing:-0.5pt;"> </font>five<font style="letter-spacing:-0.5pt;"> </font>month<font style="letter-spacing:-0.5pt;"> </font>period<font style="letter-spacing:-0.5pt;"> </font>following<font style="letter-spacing:-0.5pt;"> </font>the<font style="letter-spacing:-0.5pt;"> </font>completion<font style="letter-spacing:-0.5pt;"> </font>of<font style="letter-spacing:-0.5pt;"> </font>our<font style="letter-spacing:-0.5pt;"> </font>financial<font style="letter-spacing:-0.5pt;"> </font>restructuring<font style="letter-spacing:-0.5pt;"> </font>was<font style="letter-spacing:-0.5pt;"> </font>approximately<font style="letter-spacing:-0.5pt;"> </font>$35.5<font style="letter-spacing:-0.5pt;"> </font>million, which includes $4.3 million of reorganization items, $1.2 million of vessel operating lease expense, which, again, relates to the vessels that were returned to the respective owners in connection with the Plan, and a $23.4 million decrease in operating assets, net of operating liabilities, $12.2 million of which relates to the payment of previously accrued restructuring-related professional services costs. So, consistent with my<font style="letter-spacing:0.8pt;"> </font>comments</p>
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<p style="margin-bottom:4pt;margin-top:4pt;margin-left:4pt;;margin-right:0.73%;text-indent:0pt;;color:#FFFFFF;font-size:12pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">MARCH<font style="letter-spacing:-0.75pt;"> </font>15,<font style="letter-spacing:-0.75pt;"> </font>2018<font style="letter-spacing:-0.75pt;"> </font>/<font style="letter-spacing:-0.75pt;"> </font>3:00PM,<font style="letter-spacing:-0.75pt;"> </font>TDW<font style="letter-spacing:-0.75pt;"> </font>-<font style="letter-spacing:-0.75pt;"> </font>Tidewater<font style="letter-spacing:-0.75pt;"> </font>Inc.<font style="letter-spacing:-0.75pt;"> </font>Earnings<font style="letter-spacing:-0.75pt;"> </font>Call<font style="letter-spacing:-0.75pt;"> </font>for<font style="letter-spacing:-0.75pt;"> </font>the<font style="letter-spacing:-0.75pt;"> </font>Three<font style="letter-spacing:-0.75pt;"> </font>Months<font style="letter-spacing:-0.75pt;"> </font>Ended<font style="letter-spacing:-0.75pt;"> </font>December<font style="letter-spacing:-0.75pt;"> </font>31,<font style="letter-spacing:-0.75pt;"> </font>2017 and<font style="letter-spacing:-0.25pt;"> </font>the<font style="letter-spacing:-0.25pt;"> </font>Nine<font style="letter-spacing:-0.25pt;"> </font>Month<font style="letter-spacing:-0.25pt;"> </font>Transition<font style="letter-spacing:-0.25pt;"> </font>Period<font style="letter-spacing:-0.25pt;"> </font>from<font style="letter-spacing:-0.25pt;"> </font>April<font style="letter-spacing:-0.25pt;"> </font>1,<font style="letter-spacing:-0.25pt;"> </font>2017<font style="letter-spacing:-0.25pt;"> </font>through<font style="letter-spacing:-0.25pt;"> </font>December<font style="letter-spacing:-0.25pt;"> </font>31,<font style="letter-spacing:-0.25pt;"> </font>2017</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:3pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:10.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">related to the relationship between vessel operating margin and fixed charges, cash provided or used in operating activities was modest in the post-restructuring period, particularly when results are adjusted for restructuring-related costs and other restructuring-related items.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Looking at long-term assets, net properties and equipment, which primarily reflects the carrying value of 227 ships owned at December 31, was</p>
<p style="margin-top:1pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$838 million, which equates to approximately $4.6 million per active ship and approximately $2.1 million per stacked ship.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:10.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">As additional data points, I will further note that, on average, the carrying value of our 42 deepwater PSVs with cargo carrying capacities above 3,800 deadweight tons is approximately $8.6 million per vessel. Twenty-one of those 42 vessels are less than five years old and have an average carrying value of approximately $9.6 million. On average, the carrying value of our seventy-three 5,500 to 10,000 brake horsepower AHTS vessels is approximately $2.1 million. Forty-six of those 73 vessels are less than ten years old and have an average carrying value of approximately $2.6 million.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Other than interest-bearing long-term debt of $443 million, the right-hand side of our post-restructuring balance sheet is pretty straightforward, with<font style="letter-spacing:-0.2pt;"> </font>modest<font style="letter-spacing:-0.2pt;"> </font>pension<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>similar<font style="letter-spacing:-0.2pt;"> </font>liabilities<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>no<font style="letter-spacing:-0.2pt;"> </font>deferred<font style="letter-spacing:-0.2pt;"> </font>income<font style="letter-spacing:-0.2pt;"> </font>taxes.<font style="letter-spacing:-0.2pt;"> </font>In<font style="letter-spacing:-0.2pt;"> </font>fact,<font style="letter-spacing:-0.2pt;"> </font>at<font style="letter-spacing:-0.2pt;"> </font>December<font style="letter-spacing:-0.2pt;"> </font>31,<font style="letter-spacing:-0.2pt;"> </font>2017,<font style="letter-spacing:-0.2pt;"> </font>we<font style="letter-spacing:-0.2pt;"> </font>are<font style="letter-spacing:-0.2pt;"> </font>in<font style="letter-spacing:-0.2pt;"> </font>a<font style="letter-spacing:-0.2pt;"> </font>net<font style="letter-spacing:-0.2pt;"> </font>deferred<font style="letter-spacing:-0.2pt;"> </font>tax<font style="letter-spacing:-0.2pt;"> </font>asset<font style="letter-spacing:-0.2pt;"> </font>position, against which we have booked a 100% valuation allowance.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Shareholders' equity at December 31 was approximately $1 billion or approximately $33 per common share and Jones Act-related warrant outstanding. With essentially zero net debt, on this basis, our stock currently trades at an approximate 25% discount to post-restructuring, post "fresh start" accounting book equity.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="5._John_T._Rynd"></a>With that, I will turn the call back over to John.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;">John T. Rynd <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Tidewater Inc. - President, CEO &amp; Director</font></p>
<p style="text-align:justify;margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Thanks, Quinn. As Quinn mentioned, based on some stability in utilization and average day rates over the past several quarters, we, like several respected analysts we follow, feel the market may be reaching a trough. Achieving a cash-neutral position by remaining primarily focused on streamlining<font style="letter-spacing:-0.15pt;"> </font>our<font style="letter-spacing:-0.15pt;"> </font>business<font style="letter-spacing:-0.15pt;"> </font>will<font style="letter-spacing:-0.15pt;"> </font>ensure<font style="letter-spacing:-0.15pt;"> </font>that<font style="letter-spacing:-0.15pt;"> </font>the<font style="letter-spacing:-0.15pt;"> </font>company<font style="letter-spacing:-0.15pt;"> </font>is<font style="letter-spacing:-0.15pt;"> </font>prepared<font style="letter-spacing:-0.15pt;"> </font>to<font style="letter-spacing:-0.15pt;"> </font>navigate<font style="letter-spacing:-0.15pt;"> </font>what<font style="letter-spacing:-0.15pt;"> </font>we<font style="letter-spacing:-0.15pt;"> </font>expect<font style="letter-spacing:-0.15pt;"> </font>to<font style="letter-spacing:-0.15pt;"> </font>be<font style="letter-spacing:-0.15pt;"> </font>another<font style="letter-spacing:-0.15pt;"> </font>challenging<font style="letter-spacing:-0.15pt;"> </font>year<font style="letter-spacing:-0.15pt;"> </font>in<font style="letter-spacing:-0.15pt;"> </font>terms<font style="letter-spacing:-0.15pt;"> </font>of<font style="letter-spacing:-0.15pt;"> </font>overall offshore activity. While the worst seems to be behind us at this point, we are looking to 2019 and beyond for any significant increase in offshore exploration and development drilling, particularly in deepwater and ultra deepwater.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">However, with a competitive fleet and competitive cost structure, a global operating footprint and a financial profile that is characterized by low-leverage and a strong liquidity position, we believe that Tidewater is well positioned for an eventual recovery in the offshore sector.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="QUESTIONS_AND_ANSWERS"></a><a name="1._Operator"></a>Thank you for joining us on the call today. And John, we can now open the line for questions.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:13.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;color:#003399;font-weight:bold;font-family:Myriad Pro Cond;font-size:11pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="2._Joseph_Donough_Gibney"></a><a name="_bookmark3"></a>Q U E S T I O N S A N D A N S W E R S </p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;">Operator</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(Operator Instructions) And our first question is from Joe Gibney from Capital One.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;">Joseph Donough Gibney <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Capital One Securities, Inc., Research Division - Senior Analyst</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Thanks, and good morning. Good morning, John. It is good to talk to with you again.</p>
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<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#666666;font-size:5.5pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#169;2018 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without<font style="letter-spacing:-0.1pt;"> </font>the<font style="letter-spacing:-0.1pt;"> </font>prior<font style="letter-spacing:-0.1pt;"> </font>written<font style="letter-spacing:-0.1pt;"> </font>consent<font style="letter-spacing:-0.1pt;"> </font>of<font style="letter-spacing:-0.1pt;"> </font>Thomson<font style="letter-spacing:-0.1pt;"> </font>Reuters.<font style="letter-spacing:-0.1pt;"> </font>'Thomson<font style="letter-spacing:-0.1pt;"> </font>Reuters'<font style="letter-spacing:-0.1pt;"> </font>and<font style="letter-spacing:-0.1pt;"> </font>the<font style="letter-spacing:-0.1pt;"> </font>Thomson<font style="letter-spacing:-0.1pt;"> </font>Reuters<font style="letter-spacing:-0.1pt;"> </font>logo<font style="letter-spacing:-0.1pt;"> </font>are<font style="letter-spacing:-0.1pt;"> </font>registered<font style="letter-spacing:-0.1pt;"> </font>trademarks<font style="letter-spacing:-0.1pt;"> </font>of<font style="letter-spacing:-0.1pt;"> </font>Thomson<font style="letter-spacing:-0.1pt;"> </font>Reuters<font style="letter-spacing:-0.1pt;"> </font>and<font style="letter-spacing:-0.1pt;"> </font>its affiliated<font style="letter-spacing:-0.05pt;"> </font>companies.</p></td>
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<p style="margin-bottom:4pt;margin-top:4pt;margin-left:4pt;;margin-right:0.73%;text-indent:0pt;;color:#FFFFFF;font-size:12pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">MARCH<font style="letter-spacing:-0.75pt;"> </font>15,<font style="letter-spacing:-0.75pt;"> </font>2018<font style="letter-spacing:-0.75pt;"> </font>/<font style="letter-spacing:-0.75pt;"> </font>3:00PM,<font style="letter-spacing:-0.75pt;"> </font>TDW<font style="letter-spacing:-0.75pt;"> </font>-<font style="letter-spacing:-0.75pt;"> </font>Tidewater<font style="letter-spacing:-0.75pt;"> </font>Inc.<font style="letter-spacing:-0.75pt;"> </font>Earnings<font style="letter-spacing:-0.75pt;"> </font>Call<font style="letter-spacing:-0.75pt;"> </font>for<font style="letter-spacing:-0.75pt;"> </font>the<font style="letter-spacing:-0.75pt;"> </font>Three<font style="letter-spacing:-0.75pt;"> </font>Months<font style="letter-spacing:-0.75pt;"> </font>Ended<font style="letter-spacing:-0.75pt;"> </font>December<font style="letter-spacing:-0.75pt;"> </font>31,<font style="letter-spacing:-0.75pt;"> </font>2017 and<font style="letter-spacing:-0.25pt;"> </font>the<font style="letter-spacing:-0.25pt;"> </font>Nine<font style="letter-spacing:-0.25pt;"> </font>Month<font style="letter-spacing:-0.25pt;"> </font>Transition<font style="letter-spacing:-0.25pt;"> </font>Period<font style="letter-spacing:-0.25pt;"> </font>from<font style="letter-spacing:-0.25pt;"> </font>April<font style="letter-spacing:-0.25pt;"> </font>1,<font style="letter-spacing:-0.25pt;"> </font>2017<font style="letter-spacing:-0.25pt;"> </font>through<font style="letter-spacing:-0.25pt;"> </font>December<font style="letter-spacing:-0.25pt;"> </font>31,<font style="letter-spacing:-0.25pt;"> </font>2017</p></td>
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<p style="margin-bottom:4pt;margin-top:4pt;margin-left:4pt;;margin-right:0.73%;text-indent:0pt;;font-family:Times New Roman;font-size:12pt;">&nbsp;</p></td>
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<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;"><a name="3._John_T._Rynd"></a>John T. Rynd <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Tidewater Inc. - President, CEO &amp; Director</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Good morning. Thank you, Joe.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;"><a name="4._Joseph_Donough_Gibney"></a>Joseph Donough Gibney <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Capital One Securities, Inc., Research Division - Senior Analyst</font></p>
<p style="text-align:justify;margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Just a question on the market, not [specifically] away from the North Sea just given what we are seeing there on the strength of high spec jack<font style="letter-spacing:-1.35pt;"> </font>up side. Would be curious a little bit more on perspective of what has been going on in the Gulf of Mexico related to maybe the Middle East. And maybe, Jeff, if you could comment on what you are seeing from customers on seeking more term, length of term. Is it broad-based? Or are you seeing it more in this particular region? Would be curious on some perspective there as we come out of the trough.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:8.5pt;">&nbsp;</p>
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<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;"><a name="5._Jeffrey_A._Gorski"></a><a name="_bookmark4"></a>Jeffrey A. Gorski <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Tidewater Inc. - Executive VP &amp; COO</font></p>
<p style="text-align:justify;margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Okay, Joe. There was a lot there that you are asking, so let me circle back. I think, first of all, the North Sea, the comment is there is an expectation for improvement in spot rates this summer. I hope that happens. We have not seen anything to date, but we are hoping for the promise to fulfill. In<font style="letter-spacing:-0.05pt;"> </font>terms<font style="letter-spacing:-0.05pt;"> </font>of<font style="letter-spacing:-0.05pt;"> </font>the<font style="letter-spacing:-0.05pt;"> </font>Gulf<font style="letter-spacing:-0.05pt;"> </font>of<font style="letter-spacing:-0.05pt;"> </font>Mexico<font style="letter-spacing:-0.05pt;"> </font>itself,<font style="letter-spacing:-0.05pt;"> </font>I<font style="letter-spacing:-0.05pt;"> </font>think<font style="letter-spacing:-0.05pt;"> </font>you<font style="letter-spacing:-0.05pt;"> </font>are<font style="letter-spacing:-0.05pt;"> </font>aware<font style="letter-spacing:-0.05pt;"> </font>within<font style="letter-spacing:-0.05pt;"> </font>the<font style="letter-spacing:-0.05pt;"> </font>sector<font style="letter-spacing:-0.05pt;"> </font>that<font style="letter-spacing:-0.05pt;"> </font>we<font style="letter-spacing:-0.05pt;"> </font>play<font style="letter-spacing:-0.05pt;"> </font>in<font style="letter-spacing:-0.05pt;"> </font>is<font style="letter-spacing:-0.05pt;"> </font>in<font style="letter-spacing:-0.05pt;"> </font>the<font style="letter-spacing:-0.05pt;"> </font>deepwater<font style="letter-spacing:-0.05pt;"> </font>side<font style="letter-spacing:-0.05pt;"> </font>of<font style="letter-spacing:-0.05pt;"> </font>the<font style="letter-spacing:-0.05pt;"> </font>business<font style="letter-spacing:-0.05pt;"> </font>of<font style="letter-spacing:-0.05pt;"> </font>floating<font style="letter-spacing:-0.05pt;"> </font>rigs, and we are kind of at those continued lows. And even though there is talk about some other activity, we have not really seen it.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">I hope to see some improvement in 2019. But ultimately, we will see where th oil price stays in terms of stability, which is what our customers are looking<font style="letter-spacing:-0.15pt;"> </font>for.<font style="letter-spacing:-0.15pt;"> </font>And<font style="letter-spacing:-0.15pt;"> </font>if<font style="letter-spacing:-0.15pt;"> </font>that<font style="letter-spacing:-0.15pt;"> </font>holds<font style="letter-spacing:-0.15pt;"> </font>out,<font style="letter-spacing:-0.15pt;"> </font>maybe<font style="letter-spacing:-0.15pt;"> </font>more<font style="letter-spacing:-0.15pt;"> </font>people<font style="letter-spacing:-0.15pt;"> </font>are<font style="letter-spacing:-0.15pt;"> </font>going<font style="letter-spacing:-0.15pt;"> </font>into<font style="letter-spacing:-0.15pt;"> </font>their<font style="letter-spacing:-0.15pt;"> </font>forecasting<font style="letter-spacing:-0.15pt;"> </font>later<font style="letter-spacing:-0.15pt;"> </font>in<font style="letter-spacing:-0.15pt;"> </font>this<font style="letter-spacing:-0.15pt;"> </font>year,<font style="letter-spacing:-0.15pt;"> </font>we<font style="letter-spacing:-0.15pt;"> </font>will<font style="letter-spacing:-0.15pt;"> </font>look<font style="letter-spacing:-0.15pt;"> </font>for<font style="letter-spacing:-0.15pt;"> </font>opportunities<font style="letter-spacing:-0.15pt;"> </font>in<font style="letter-spacing:-0.15pt;"> </font>places<font style="letter-spacing:-0.15pt;"> </font>like the Gulf of Mexico and North Sea and some of the other mature basins.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Middle<font style="letter-spacing:-0.15pt;"> </font>East<font style="letter-spacing:-0.15pt;"> </font>continues<font style="letter-spacing:-0.15pt;"> </font>to<font style="letter-spacing:-0.15pt;"> </font>be<font style="letter-spacing:-0.15pt;"> </font>strong<font style="letter-spacing:-0.15pt;"> </font>for<font style="letter-spacing:-0.15pt;"> </font>us<font style="letter-spacing:-0.15pt;"> </font>in<font style="letter-spacing:-0.15pt;"> </font>utilization.<font style="letter-spacing:-0.15pt;"> </font>The<font style="letter-spacing:-0.15pt;"> </font>issue<font style="letter-spacing:-0.15pt;"> </font>is<font style="letter-spacing:-0.15pt;"> </font>continued<font style="letter-spacing:-0.15pt;"> </font>movement<font style="letter-spacing:-0.15pt;"> </font>of<font style="letter-spacing:-0.15pt;"> </font>our<font style="letter-spacing:-0.15pt;"> </font>competitors<font style="letter-spacing:-0.15pt;"> </font>in<font style="letter-spacing:-0.15pt;"> </font>from<font style="letter-spacing:-0.15pt;"> </font>Southeast<font style="letter-spacing:-0.15pt;"> </font>Asia,<font style="letter-spacing:-0.15pt;"> </font>but<font style="letter-spacing:-0.15pt;"> </font>very,<font style="letter-spacing:-0.15pt;"> </font>very strong<font style="letter-spacing:-0.35pt;"> </font>utilization<font style="letter-spacing:-0.35pt;"> </font>based<font style="letter-spacing:-0.35pt;"> </font>upon<font style="letter-spacing:-0.35pt;"> </font>not<font style="letter-spacing:-0.35pt;"> </font>only<font style="letter-spacing:-0.35pt;"> </font>supporting<font style="letter-spacing:-0.35pt;"> </font>drilling<font style="letter-spacing:-0.35pt;"> </font>activities,<font style="letter-spacing:-0.35pt;"> </font>but<font style="letter-spacing:-0.35pt;"> </font>also<font style="letter-spacing:-0.35pt;"> </font>this<font style="letter-spacing:-0.35pt;"> </font>uptick<font style="letter-spacing:-0.35pt;"> </font>that<font style="letter-spacing:-0.35pt;"> </font>we<font style="letter-spacing:-0.35pt;"> </font>have<font style="letter-spacing:-0.35pt;"> </font>seen<font style="letter-spacing:-0.35pt;"> </font>in<font style="letter-spacing:-0.35pt;"> </font>the<font style="letter-spacing:-0.35pt;"> </font>construction<font style="letter-spacing:-0.35pt;"> </font>market<font style="letter-spacing:-0.35pt;"> </font>that<font style="letter-spacing:-0.35pt;"> </font>we<font style="letter-spacing:-0.35pt;"> </font>hope continues to hold on, as we are looking for improvement in terms of the drilling activity, hopefully, in 2019 and further on.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="6._Joseph_Donough_Gibney"></a>Was there any other specific area you were looking for on the customer, side?</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;"><a name="7._Jeffrey_A._Gorski"></a>Joseph Donough Gibney <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Capital One Securities, Inc., Research Division - Senior Analyst</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">No, that was it. I was just curious in your perspective on term. Are the customers seeking a little bit more term here as we come off the trough?</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;">Jeffrey A. Gorski <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Tidewater Inc. - Executive VP &amp; COO</font></p>
<p style="text-align:justify;margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Yes. Sorry, Joe. So it is really interesting. The places where we have seen the request for term are places where customers are already doing some sort of longer-term investment. So as you know, any type of true further exploration or looking at some sort of greenfield developments is very limited. We have seen a few of those around the world. So across the globe, in terms of customers overwhelmingly asking for extended term, we are not seeing that.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Actually, in some other place we are working, we are seeing an increase of spot, which could be considered a situation where someone is picking up a rig for a one-, maybe two-well program. So this 3-month to 6-month activity window, which we have seen here recently, seems to be more of the interest at least where we are operating globally versus really this looking forward of a larger longer-term or multiyear duration.</p>
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<p style="margin-bottom:4pt;margin-top:4pt;margin-left:4pt;;margin-right:0.73%;text-indent:0pt;;color:#FFFFFF;font-size:12pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">MARCH<font style="letter-spacing:-0.75pt;"> </font>15,<font style="letter-spacing:-0.75pt;"> </font>2018<font style="letter-spacing:-0.75pt;"> </font>/<font style="letter-spacing:-0.75pt;"> </font>3:00PM,<font style="letter-spacing:-0.75pt;"> </font>TDW<font style="letter-spacing:-0.75pt;"> </font>-<font style="letter-spacing:-0.75pt;"> </font>Tidewater<font style="letter-spacing:-0.75pt;"> </font>Inc.<font style="letter-spacing:-0.75pt;"> </font>Earnings<font style="letter-spacing:-0.75pt;"> </font>Call<font style="letter-spacing:-0.75pt;"> </font>for<font style="letter-spacing:-0.75pt;"> </font>the<font style="letter-spacing:-0.75pt;"> </font>Three<font style="letter-spacing:-0.75pt;"> </font>Months<font style="letter-spacing:-0.75pt;"> </font>Ended<font style="letter-spacing:-0.75pt;"> </font>December<font style="letter-spacing:-0.75pt;"> </font>31,<font style="letter-spacing:-0.75pt;"> </font>2017 and<font style="letter-spacing:-0.25pt;"> </font>the<font style="letter-spacing:-0.25pt;"> </font>Nine<font style="letter-spacing:-0.25pt;"> </font>Month<font style="letter-spacing:-0.25pt;"> </font>Transition<font style="letter-spacing:-0.25pt;"> </font>Period<font style="letter-spacing:-0.25pt;"> </font>from<font style="letter-spacing:-0.25pt;"> </font>April<font style="letter-spacing:-0.25pt;"> </font>1,<font style="letter-spacing:-0.25pt;"> </font>2017<font style="letter-spacing:-0.25pt;"> </font>through<font style="letter-spacing:-0.25pt;"> </font>December<font style="letter-spacing:-0.25pt;"> </font>31,<font style="letter-spacing:-0.25pt;"> </font>2017</p></td>
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<p style="margin-bottom:4pt;margin-top:4pt;margin-left:4pt;;margin-right:0.73%;text-indent:0pt;;font-family:Times New Roman;font-size:12pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:3pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;"><a name="8._Joseph_Donough_Gibney"></a>Joseph Donough Gibney <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Capital One Securities, Inc., Research Division - Senior Analyst</font></p>
<p style="text-align:justify;margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Okay.<font style="letter-spacing:-0.1pt;"> </font>Helpful.<font style="letter-spacing:-0.1pt;"> </font>And<font style="letter-spacing:-0.1pt;"> </font>Quinn,<font style="letter-spacing:-0.1pt;"> </font>just<font style="letter-spacing:-0.1pt;"> </font>a<font style="letter-spacing:-0.1pt;"> </font>question<font style="letter-spacing:-0.1pt;"> </font>for<font style="letter-spacing:-0.1pt;"> </font>you,<font style="letter-spacing:-0.1pt;"> </font>just<font style="letter-spacing:-0.1pt;"> </font>trying<font style="letter-spacing:-0.1pt;"> </font>to<font style="letter-spacing:-0.1pt;"> </font>understand<font style="letter-spacing:-0.1pt;"> </font>what<font style="letter-spacing:-0.1pt;"> </font>you<font style="letter-spacing:-0.1pt;"> </font>said<font style="letter-spacing:-0.1pt;"> </font>a<font style="letter-spacing:-0.1pt;"> </font>little<font style="letter-spacing:-0.1pt;"> </font>bit<font style="letter-spacing:-0.1pt;"> </font>about<font style="letter-spacing:-0.1pt;"> </font>CapEx<font style="letter-spacing:-0.1pt;"> </font>baseline<font style="letter-spacing:-0.1pt;"> </font>as<font style="letter-spacing:-0.1pt;"> </font>we<font style="letter-spacing:-0.1pt;"> </font>think<font style="letter-spacing:-0.1pt;"> </font>about<font style="letter-spacing:-0.1pt;"> </font>costs flowing through over the next few quarters. And then just curious of '18. I believe you had characterized vessels sold since December 31, 16 of them into scrap. Were the 2 that were not sold to scrap coming out of the active fleet? We are just trying to get a little more granular there.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:8.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;"><a name="9._Quinn_P._Fanning"></a>Quinn P. Fanning <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Tidewater Inc. - Executive VP &amp; CFO</font></p>
<p style="text-align:justify;margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="10._Joseph_Donough_Gibney"></a>My recollection was that maybe one was sold out of the active fleet, but we distinguish between a vessel that we scrap, which is maybe a couple hundred thousand dollar proposition, or maybe $1 million if you get into some of the larger AHTS vessels. But it is really -- they are sold into not oil<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>gas<font style="letter-spacing:-0.2pt;"> </font>markets.<font style="letter-spacing:-0.2pt;"> </font>Typically,<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>low<font style="letter-spacing:-0.2pt;"> </font>end<font style="letter-spacing:-0.2pt;"> </font>of<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>oil<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>gas<font style="letter-spacing:-0.2pt;"> </font>markets<font style="letter-spacing:-0.2pt;"> </font>as<font style="letter-spacing:-0.2pt;"> </font>operational<font style="letter-spacing:-0.2pt;"> </font>equipment<font style="letter-spacing:-0.2pt;"> </font>where<font style="letter-spacing:-0.2pt;"> </font>you<font style="letter-spacing:-0.2pt;"> </font>can<font style="letter-spacing:-0.2pt;"> </font>maybe<font style="letter-spacing:-0.2pt;"> </font>do<font style="letter-spacing:-0.2pt;"> </font>a<font style="letter-spacing:-0.2pt;"> </font>little<font style="letter-spacing:-0.2pt;"> </font>bit<font style="letter-spacing:-0.2pt;"> </font>better<font style="letter-spacing:-0.2pt;"> </font>in<font style="letter-spacing:-0.2pt;"> </font><a name="10._Joseph_Donough_Gibney"></a>terms of price over scrapping. But, I think the point we are trying to make is that we are committed to rationalizing our fleet. We think the industry as a whole and particularly the leaders in the industry need to more seriously think about scrapping vessels rather than continuing to sit on idle equipment that, again, is just going to serve as a supply overhang as the market tries to recover.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:8.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;">Joseph Donough Gibney <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Capital One Securities, Inc., Research Division - Senior Analyst</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="11._Quinn_P._Fanning"></a>Understood. And CapEx near-term?</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;">Quinn P. Fanning <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Tidewater Inc. - Executive VP &amp; CFO</font></p>
<p style="text-align:justify;margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="12._Operator"></a>CapEx<font style="letter-spacing:-0.15pt;"> </font>near-term,<font style="letter-spacing:-0.15pt;"> </font>as<font style="letter-spacing:-0.15pt;"> </font>I<font style="letter-spacing:-0.15pt;"> </font>mentioned,<font style="letter-spacing:-0.15pt;"> </font>we<font style="letter-spacing:-0.15pt;"> </font>took<font style="letter-spacing:-0.15pt;"> </font>delivery<font style="letter-spacing:-0.15pt;"> </font>of<font style="letter-spacing:-0.15pt;"> </font>one<font style="letter-spacing:-0.15pt;"> </font>of<font style="letter-spacing:-0.15pt;"> </font>the<font style="letter-spacing:-0.15pt;"> </font>two<font style="letter-spacing:-0.15pt;"> </font>deepwater<font style="letter-spacing:-0.15pt;"> </font>PSVs<font style="letter-spacing:-0.15pt;"> </font>that<font style="letter-spacing:-0.15pt;"> </font>we<font style="letter-spacing:-0.15pt;"> </font>are<font style="letter-spacing:-0.15pt;"> </font>building<font style="letter-spacing:-0.15pt;"> </font>in<font style="letter-spacing:-0.15pt;"> </font>the<font style="letter-spacing:-0.15pt;"> </font>U.S.<font style="letter-spacing:-0.15pt;"> </font>The<font style="letter-spacing:-0.15pt;"> </font>last<font style="letter-spacing:-0.15pt;"> </font>one<font style="letter-spacing:-0.15pt;"> </font>will<font style="letter-spacing:-0.15pt;"> </font>be<font style="letter-spacing:-0.15pt;"> </font>delivered in probably the June timetable. I think the final delivery payment on that is $4.5 million or something like that, and that is really the last outflow that<font style="letter-spacing:-0.8pt;"> </font>we<font style="letter-spacing:-0.8pt;"> </font>expect<font style="letter-spacing:-0.8pt;"> </font>in<font style="letter-spacing:-0.8pt;"> </font>connection<font style="letter-spacing:-0.8pt;"> </font>with<font style="letter-spacing:-0.8pt;"> </font>our<font style="letter-spacing:-0.8pt;"> </font>fleet<font style="letter-spacing:-0.8pt;"> </font>renewal<font style="letter-spacing:-0.8pt;"> </font>replacement<font style="letter-spacing:-0.8pt;"> </font>program.<font style="letter-spacing:-0.8pt;"> </font>CapEx,<font style="letter-spacing:-0.8pt;"> </font>otherwise,<font style="letter-spacing:-0.8pt;"> </font>is<font style="letter-spacing:-0.8pt;"> </font>a<font style="letter-spacing:-0.8pt;"> </font>very<font style="letter-spacing:-0.8pt;"> </font>modest.<font style="letter-spacing:-0.8pt;"> </font>Typically<font style="letter-spacing:-0.8pt;"> </font>modifications<font style="letter-spacing:-0.8pt;"> </font>in<font style="letter-spacing:-0.8pt;"> </font>connection with a specific customer requirement, whether it is communications package or whatever, and the very rare life extension or enhancement to a vessel<font style="letter-spacing:-0.65pt;"> </font>that<font style="letter-spacing:-0.65pt;"> </font>has<font style="letter-spacing:-0.65pt;"> </font>already<font style="letter-spacing:-0.65pt;"> </font>reached<font style="letter-spacing:-0.65pt;"> </font>its<font style="letter-spacing:-0.65pt;"> </font>depreciated<font style="letter-spacing:-0.65pt;"> </font>or<font style="letter-spacing:-0.65pt;"> </font>assumed<font style="letter-spacing:-0.65pt;"> </font>economically<font style="letter-spacing:-0.65pt;"> </font>useful<font style="letter-spacing:-0.65pt;"> </font>life.<font style="letter-spacing:-0.65pt;"> </font>And<font style="letter-spacing:-0.65pt;"> </font>so<font style="letter-spacing:-0.65pt;"> </font>we<font style="letter-spacing:-0.65pt;"> </font>would<font style="letter-spacing:-0.65pt;"> </font>expect<font style="letter-spacing:-0.65pt;"> </font>CapEx<font style="letter-spacing:-0.65pt;"> </font>once<font style="letter-spacing:-0.65pt;"> </font>we<font style="letter-spacing:-0.65pt;"> </font>take<font style="letter-spacing:-0.65pt;"> </font>this<font style="letter-spacing:-0.65pt;"> </font>last<font style="letter-spacing:-0.65pt;"> </font>deepwater PSV<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>trail<font style="letter-spacing:-0.2pt;"> </font>off<font style="letter-spacing:-0.2pt;"> </font>significantly<font style="letter-spacing:-0.2pt;"> </font>unless,<font style="letter-spacing:-0.2pt;"> </font>of<font style="letter-spacing:-0.2pt;"> </font>course,<font style="letter-spacing:-0.2pt;"> </font>we<font style="letter-spacing:-0.2pt;"> </font>decided<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>look<font style="letter-spacing:-0.2pt;"> </font>at<font style="letter-spacing:-0.2pt;"> </font>an<font style="letter-spacing:-0.2pt;"> </font>M&amp;A<font style="letter-spacing:-0.2pt;"> </font>opportunity.<font style="letter-spacing:-0.2pt;"> </font>So<font style="letter-spacing:-0.2pt;"> </font>CapEx<font style="letter-spacing:-0.2pt;"> </font>is<font style="letter-spacing:-0.2pt;"> </font>modest.<font style="letter-spacing:-0.2pt;"> </font>If<font style="letter-spacing:-0.2pt;"> </font>you<font style="letter-spacing:-0.2pt;"> </font>look<font style="letter-spacing:-0.2pt;"> </font>back<font style="letter-spacing:-0.2pt;"> </font>over<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>last<font style="letter-spacing:-0.2pt;"> </font>number of<font style="letter-spacing:-0.8pt;"> </font>quarters,<font style="letter-spacing:-0.8pt;"> </font>our<font style="letter-spacing:-0.8pt;"> </font>cash<font style="letter-spacing:-0.8pt;"> </font>flow<font style="letter-spacing:-0.8pt;"> </font>from<font style="letter-spacing:-0.8pt;"> </font>financing<font style="letter-spacing:-0.8pt;"> </font>activities<font style="letter-spacing:-0.8pt;"> </font>was<font style="letter-spacing:-0.8pt;"> </font>essentially<font style="letter-spacing:-0.8pt;"> </font>driven<font style="letter-spacing:-0.8pt;"> </font>by<font style="letter-spacing:-0.8pt;"> </font>the<font style="letter-spacing:-0.8pt;"> </font>completion<font style="letter-spacing:-0.8pt;"> </font>of<font style="letter-spacing:-0.8pt;"> </font>the<font style="letter-spacing:-0.8pt;"> </font>emergence<font style="letter-spacing:-0.8pt;"> </font>consideration<font style="letter-spacing:-0.8pt;"> </font>to<font style="letter-spacing:-0.8pt;"> </font>payout<font style="letter-spacing:-0.8pt;"> </font>in<font style="letter-spacing:-0.8pt;"> </font><a name="12._Operator"></a>connection with the reorganization. And our cash flow from investing activities has, in fact, been a source of cash as opposed to a typical use of cash<font style="letter-spacing:-1.3pt;"> </font>because our disposition proceeds, particularly in the December quarter, which have the ROV dispositions, has, in fact, been higher than our CapEx. So we are actually generating cash from investing activities, at least in the last couple of quarters.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:8.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;"><a name="13._Turner_Holm"></a><a name="_bookmark5"></a>Operator</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our next question is from Turner Holm from Clarksons Platou.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;"><a name="14._John_T._Rynd"></a>Turner Holm <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Clarksons Platou Securities AS, Research Division - Director</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Good morning, gentlemen. And John, congratulations on the new role.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;">John T. Rynd <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Tidewater Inc. - President, CEO &amp; Director</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Well, thank you very much.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:3pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;"><a name="15._Turner_Holm"></a>Turner Holm <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Clarksons Platou Securities AS, Research Division - Director</font></p>
<p style="text-align:justify;margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Yes, we will try to take it easy on you, John, given that you are just a few weeks into your tenure. So this question, I guess, will be for anyone who wants to chime in. When you look at the operating statistics, utilization is pretty steadily creeping up over the last quarter couple of quarters,<font style="letter-spacing:-1.2pt;"> </font>and now<font style="letter-spacing:-0.3pt;"> </font>you<font style="letter-spacing:-0.3pt;"> </font>see<font style="letter-spacing:-0.3pt;"> </font>active<font style="letter-spacing:-0.3pt;"> </font>utilization<font style="letter-spacing:-0.3pt;"> </font>in<font style="letter-spacing:-0.3pt;"> </font>the<font style="letter-spacing:-0.3pt;"> </font>high<font style="letter-spacing:-0.3pt;"> </font>70s,<font style="letter-spacing:-0.3pt;"> </font>approaching<font style="letter-spacing:-0.3pt;"> </font>80%.<font style="letter-spacing:-0.3pt;"> </font>So<font style="letter-spacing:-0.3pt;"> </font>first,<font style="letter-spacing:-0.3pt;"> </font>I<font style="letter-spacing:-0.3pt;"> </font>am<font style="letter-spacing:-0.3pt;"> </font>curious<font style="letter-spacing:-0.3pt;"> </font>if<font style="letter-spacing:-0.3pt;"> </font>that<font style="letter-spacing:-0.3pt;"> </font>trend<font style="letter-spacing:-0.3pt;"> </font>seems<font style="letter-spacing:-0.3pt;"> </font>to<font style="letter-spacing:-0.3pt;"> </font>be<font style="letter-spacing:-0.3pt;"> </font>carrying<font style="letter-spacing:-0.3pt;"> </font>into<font style="letter-spacing:-0.3pt;"> </font>the<font style="letter-spacing:-0.3pt;"> </font>March<font style="letter-spacing:-0.3pt;"> </font>quarter<font style="letter-spacing:-0.3pt;"> </font>with the<font style="letter-spacing:-0.75pt;"> </font>understanding<font style="letter-spacing:-0.75pt;"> </font>that<font style="letter-spacing:-0.75pt;"> </font>this<font style="letter-spacing:-0.75pt;"> </font>is<font style="letter-spacing:-0.75pt;"> </font>sort<font style="letter-spacing:-0.75pt;"> </font>of<font style="letter-spacing:-0.75pt;"> </font>a<font style="letter-spacing:-0.75pt;"> </font>seasonal<font style="letter-spacing:-0.75pt;"> </font>weak<font style="letter-spacing:-0.75pt;"> </font>period.<font style="letter-spacing:-0.75pt;"> </font>And<font style="letter-spacing:-0.75pt;"> </font>then<font style="letter-spacing:-0.75pt;"> </font>secondly,<font style="letter-spacing:-0.75pt;"> </font>where<font style="letter-spacing:-0.75pt;"> </font>do<font style="letter-spacing:-0.75pt;"> </font>you<font style="letter-spacing:-0.75pt;"> </font>see<font style="letter-spacing:-0.75pt;"> </font>a<font style="letter-spacing:-0.75pt;"> </font>tipping<font style="letter-spacing:-0.75pt;"> </font>point<font style="letter-spacing:-0.75pt;"> </font>in<font style="letter-spacing:-0.75pt;"> </font>terms<font style="letter-spacing:-0.75pt;"> </font>of<font style="letter-spacing:-0.75pt;"> </font>potential<font style="letter-spacing:-0.75pt;"> </font>improvement in day rates? Is that 85% on an active basis? Is it 90%? What is sort of the magic number, if you will? What are you looking for?</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:8.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;"><a name="16._Jeffrey_A._Gorski"></a>Jeffrey A. Gorski <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Tidewater Inc. - Executive VP &amp; COO</font></p>
<p style="text-align:justify;margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="17._Turner_Holm"></a>So Turner, this is Jeff Gorski. First of all, I think what you are hearing from other operators, there tends to be more interest in terms of tendering. We are also hearing this on the rig side as well. So in terms of going into the next quarter in terms of where we think active utilization is going to be, at least from that standpoint, and if you believe those tenders come to fruition in timing, I think it will continue. With regard to at what level do we get to the point that we are -- utilization is actually going to drive pricing, well, I think because of the complexity and amount of players in the<font style="letter-spacing:-0.8pt;"> </font>OSV<font style="letter-spacing:-0.8pt;"> </font>space,<font style="letter-spacing:-0.8pt;"> </font>you<font style="letter-spacing:-0.8pt;"> </font>have<font style="letter-spacing:-0.8pt;"> </font>really<font style="letter-spacing:-0.8pt;"> </font>got<font style="letter-spacing:-0.8pt;"> </font>to<font style="letter-spacing:-0.8pt;"> </font>start<font style="letter-spacing:-0.8pt;"> </font>looking<font style="letter-spacing:-0.8pt;"> </font>at<font style="letter-spacing:-0.8pt;"> </font>things<font style="letter-spacing:-0.8pt;"> </font>from<font style="letter-spacing:-0.8pt;"> </font>a<font style="letter-spacing:-0.8pt;"> </font>geographical<font style="letter-spacing:-0.8pt;"> </font>perspective.<font style="letter-spacing:-0.8pt;"> </font>I<font style="letter-spacing:-0.8pt;"> </font>think<font style="letter-spacing:-0.8pt;"> </font>when<font style="letter-spacing:-0.8pt;"> </font>we<font style="letter-spacing:-0.8pt;"> </font>get<font style="letter-spacing:-0.8pt;"> </font>into<font style="letter-spacing:-0.8pt;"> </font>the<font style="letter-spacing:-0.8pt;"> </font>shorter-term<font style="letter-spacing:-0.8pt;"> </font>opportunities and the spot market starts getting tight, it really has to do with vessel availability. So are you going to get someone to go ahead and spend the money to drive out the vessel at $1 million, $1.5 million for a 3-month job? Maybe they will. But from that perspective, we are taking a little bit of a<font style="letter-spacing:-0.15pt;"> </font>longer-term<font style="letter-spacing:-0.15pt;"> </font>look<font style="letter-spacing:-0.15pt;"> </font>if<font style="letter-spacing:-0.15pt;"> </font>we<font style="letter-spacing:-0.15pt;"> </font>are<font style="letter-spacing:-0.15pt;"> </font>going<font style="letter-spacing:-0.15pt;"> </font>to<font style="letter-spacing:-0.15pt;"> </font>activate<font style="letter-spacing:-0.15pt;"> </font>a<font style="letter-spacing:-0.15pt;"> </font>vessel<font style="letter-spacing:-0.15pt;"> </font>for<font style="letter-spacing:-0.15pt;"> </font>some<font style="letter-spacing:-0.15pt;"> </font>sort<font style="letter-spacing:-0.15pt;"> </font>of<font style="letter-spacing:-0.15pt;"> </font>substantial<font style="letter-spacing:-0.15pt;"> </font>business<font style="letter-spacing:-0.15pt;"> </font>more<font style="letter-spacing:-0.15pt;"> </font>than<font style="letter-spacing:-0.15pt;"> </font>3<font style="letter-spacing:-0.15pt;"> </font>months,<font style="letter-spacing:-0.15pt;"> </font>and<font style="letter-spacing:-0.15pt;"> </font>that<font style="letter-spacing:-0.15pt;"> </font>is<font style="letter-spacing:-0.15pt;"> </font>how<font style="letter-spacing:-0.15pt;"> </font>we<font style="letter-spacing:-0.15pt;"> </font>are<font style="letter-spacing:-0.15pt;"> </font>looking<font style="letter-spacing:-0.15pt;"> </font>at it.<font style="letter-spacing:-0.25pt;"> </font>Maybe<font style="letter-spacing:-0.25pt;"> </font>it<font style="letter-spacing:-0.25pt;"> </font>is<font style="letter-spacing:-0.25pt;"> </font>not<font style="letter-spacing:-0.25pt;"> </font>the<font style="letter-spacing:-0.25pt;"> </font>same<font style="letter-spacing:-0.25pt;"> </font>exact<font style="letter-spacing:-0.25pt;"> </font>opportunity,<font style="letter-spacing:-0.25pt;"> </font>but<font style="letter-spacing:-0.25pt;"> </font>we<font style="letter-spacing:-0.25pt;"> </font>can<font style="letter-spacing:-0.25pt;"> </font>back<font style="letter-spacing:-0.25pt;"> </font>them<font style="letter-spacing:-0.25pt;"> </font>up,<font style="letter-spacing:-0.25pt;"> </font>and<font style="letter-spacing:-0.25pt;"> </font>we<font style="letter-spacing:-0.25pt;"> </font>think<font style="letter-spacing:-0.25pt;"> </font>we<font style="letter-spacing:-0.25pt;"> </font>have<font style="letter-spacing:-0.25pt;"> </font>the<font style="letter-spacing:-0.25pt;"> </font>business<font style="letter-spacing:-0.25pt;"> </font>to<font style="letter-spacing:-0.25pt;"> </font>continue<font style="letter-spacing:-0.25pt;"> </font>through<font style="letter-spacing:-0.25pt;"> </font>pass<font style="letter-spacing:-0.25pt;"> </font>through<font style="letter-spacing:-0.25pt;"> </font><a name="17._Turner_Holm"></a>the 6 that maybe into the next year, makes more sense. So I think that is really what is ultimately going to drive rates is -- and I think it is going to be by a geographic-to-geographic area, really has to do with what vessels are available. And if you are really to the point of reactivation, that is not something you can do overnight. Hopefully, that helps, Turner.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:8.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;"><a name="18._Quinn_P._Fanning"></a>Turner Holm <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Clarksons Platou Securities AS, Research Division - Director</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Yes, it does.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;">Quinn P. Fanning <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Tidewater Inc. - Executive VP &amp; CFO</font></p>
<p style="text-align:justify;margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="19._Turner_Holm"></a>I guess, I would add more color, Turner. I think the historical experience that we and our peer vessel owners have had is, as overall utilization got into the high 70s or even into the 80s, you would see an ability to push price. And I think the question you are asking relates to should you think about active utilization or overall utilization, and there is obviously a, call it, 30 percentage point delta between the two. I think what we are experiencing today is maybe a little bit different than we have experienced in the last couple of downturns, particularly after the financial crisis is that a lot of the equipment that is idle today is not easily coming back into the market without substantial investment, whether it is in special surveys<font style="letter-spacing:-0.2pt;"> </font>or<font style="letter-spacing:-0.2pt;"> </font>deferred<font style="letter-spacing:-0.2pt;"> </font>maintenance<font style="letter-spacing:-0.2pt;"> </font>or<font style="letter-spacing:-0.2pt;"> </font>whatever.<font style="letter-spacing:-0.2pt;"> </font>So<font style="letter-spacing:-0.2pt;"> </font>again,<font style="letter-spacing:-0.2pt;"> </font>I<font style="letter-spacing:-0.2pt;"> </font>would<font style="letter-spacing:-0.2pt;"> </font>expect<font style="letter-spacing:-0.2pt;"> </font>that<font style="letter-spacing:-0.2pt;"> </font>as<font style="letter-spacing:-0.2pt;"> </font>we<font style="letter-spacing:-0.2pt;"> </font>see<font style="letter-spacing:-0.2pt;"> </font>utilization<font style="letter-spacing:-0.2pt;"> </font>trend<font style="letter-spacing:-0.2pt;"> </font>higher<font style="letter-spacing:-0.2pt;"> </font>on<font style="letter-spacing:-0.2pt;"> </font>an<font style="letter-spacing:-0.2pt;"> </font>overall<font style="letter-spacing:-0.2pt;"> </font>basis<font style="letter-spacing:-0.2pt;"> </font>that<font style="letter-spacing:-0.2pt;"> </font>you<font style="letter-spacing:-0.2pt;"> </font>may<font style="letter-spacing:-0.2pt;"> </font><a name="19._Turner_Holm"></a>see some<font style="letter-spacing:-0.45pt;"> </font>ability<font style="letter-spacing:-0.45pt;"> </font>to<font style="letter-spacing:-0.45pt;"> </font>push<font style="letter-spacing:-0.45pt;"> </font>price<font style="letter-spacing:-0.45pt;"> </font>at<font style="letter-spacing:-0.45pt;"> </font>levels<font style="letter-spacing:-0.45pt;"> </font>lower<font style="letter-spacing:-0.45pt;"> </font>than<font style="letter-spacing:-0.45pt;"> </font>what<font style="letter-spacing:-0.45pt;"> </font>we<font style="letter-spacing:-0.45pt;"> </font>have<font style="letter-spacing:-0.45pt;"> </font>seen<font style="letter-spacing:-0.45pt;"> </font>historically,<font style="letter-spacing:-0.45pt;"> </font>primarily<font style="letter-spacing:-0.45pt;"> </font>because<font style="letter-spacing:-0.45pt;"> </font>of<font style="letter-spacing:-0.45pt;"> </font>the<font style="letter-spacing:-0.45pt;"> </font>large<font style="letter-spacing:-0.45pt;"> </font>investment<font style="letter-spacing:-0.45pt;"> </font>that<font style="letter-spacing:-0.45pt;"> </font>is<font style="letter-spacing:-0.45pt;"> </font>going<font style="letter-spacing:-0.45pt;"> </font>to<font style="letter-spacing:-0.45pt;"> </font>be<font style="letter-spacing:-0.45pt;"> </font>required to<font style="letter-spacing:-0.2pt;"> </font>make<font style="letter-spacing:-0.2pt;"> </font>additional<font style="letter-spacing:-0.2pt;"> </font>equipment<font style="letter-spacing:-0.2pt;"> </font>available<font style="letter-spacing:-0.2pt;"> </font>into<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>market.<font style="letter-spacing:-0.2pt;"> </font>But<font style="letter-spacing:-0.2pt;"> </font>I<font style="letter-spacing:-0.2pt;"> </font>think<font style="letter-spacing:-0.2pt;"> </font>this<font style="letter-spacing:-0.2pt;"> </font>recovery<font style="letter-spacing:-0.2pt;"> </font>is<font style="letter-spacing:-0.2pt;"> </font>going<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>be<font style="letter-spacing:-0.2pt;"> </font>a<font style="letter-spacing:-0.2pt;"> </font>little<font style="letter-spacing:-0.2pt;"> </font>bit<font style="letter-spacing:-0.2pt;"> </font>different<font style="letter-spacing:-0.2pt;"> </font>than<font style="letter-spacing:-0.2pt;"> </font>what<font style="letter-spacing:-0.2pt;"> </font>you<font style="letter-spacing:-0.2pt;"> </font>have<font style="letter-spacing:-0.2pt;"> </font>seen<font style="letter-spacing:-0.2pt;"> </font>in<font style="letter-spacing:-0.2pt;"> </font>the past because much of the equipment has been on the side lines for so long.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:8.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;"><a name="20._Quinn_P._Fanning"></a>Turner Holm <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Clarksons Platou Securities AS, Research Division - Director</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Yes. I agree. I guess that is the question, right, which is the right denominator, but at least, to what we have seen...</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
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<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;">Quinn P. Fanning <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Tidewater Inc. - Executive VP &amp; CFO</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.18%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(inaudible) That's the sixty-four dollar question. I think the supply overhang on paper is substantial. I think the reality is probably a lot smaller than most people assume, again, largely related to this investment that needs to be made in reactivations.</p>
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<p style="margin-bottom:4pt;margin-top:4pt;margin-left:4pt;;margin-right:0.73%;text-indent:0pt;;color:#FFFFFF;font-size:12pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">MARCH<font style="letter-spacing:-0.75pt;"> </font>15,<font style="letter-spacing:-0.75pt;"> </font>2018<font style="letter-spacing:-0.75pt;"> </font>/<font style="letter-spacing:-0.75pt;"> </font>3:00PM,<font style="letter-spacing:-0.75pt;"> </font>TDW<font style="letter-spacing:-0.75pt;"> </font>-<font style="letter-spacing:-0.75pt;"> </font>Tidewater<font style="letter-spacing:-0.75pt;"> </font>Inc.<font style="letter-spacing:-0.75pt;"> </font>Earnings<font style="letter-spacing:-0.75pt;"> </font>Call<font style="letter-spacing:-0.75pt;"> </font>for<font style="letter-spacing:-0.75pt;"> </font>the<font style="letter-spacing:-0.75pt;"> </font>Three<font style="letter-spacing:-0.75pt;"> </font>Months<font style="letter-spacing:-0.75pt;"> </font>Ended<font style="letter-spacing:-0.75pt;"> </font>December<font style="letter-spacing:-0.75pt;"> </font>31,<font style="letter-spacing:-0.75pt;"> </font>2017 and<font style="letter-spacing:-0.25pt;"> </font>the<font style="letter-spacing:-0.25pt;"> </font>Nine<font style="letter-spacing:-0.25pt;"> </font>Month<font style="letter-spacing:-0.25pt;"> </font>Transition<font style="letter-spacing:-0.25pt;"> </font>Period<font style="letter-spacing:-0.25pt;"> </font>from<font style="letter-spacing:-0.25pt;"> </font>April<font style="letter-spacing:-0.25pt;"> </font>1,<font style="letter-spacing:-0.25pt;"> </font>2017<font style="letter-spacing:-0.25pt;"> </font>through<font style="letter-spacing:-0.25pt;"> </font>December<font style="letter-spacing:-0.25pt;"> </font>31,<font style="letter-spacing:-0.25pt;"> </font>2017</p></td>
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<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;"><a name="21._Turner_Holm"></a>Turner Holm <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Clarksons Platou Securities AS, Research Division - Director</font></p>
<p style="text-align:justify;margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Indeed.<font style="letter-spacing:-0.3pt;"> </font>Well,<font style="letter-spacing:-0.3pt;"> </font>I<font style="letter-spacing:-0.3pt;"> </font>will<font style="letter-spacing:-0.3pt;"> </font>turn<font style="letter-spacing:-0.3pt;"> </font>it<font style="letter-spacing:-0.3pt;"> </font>a<font style="letter-spacing:-0.3pt;"> </font>little<font style="letter-spacing:-0.3pt;"> </font>bit<font style="letter-spacing:-0.3pt;"> </font>to<font style="letter-spacing:-0.3pt;"> </font>consolidation,<font style="letter-spacing:-0.3pt;"> </font>which<font style="letter-spacing:-0.3pt;"> </font>gets<font style="letter-spacing:-0.3pt;"> </font>a<font style="letter-spacing:-0.3pt;"> </font>lot<font style="letter-spacing:-0.3pt;"> </font>of<font style="letter-spacing:-0.3pt;"> </font>attention.<font style="letter-spacing:-0.3pt;"> </font>Tidewater,<font style="letter-spacing:-0.3pt;"> </font>clearly,<font style="letter-spacing:-0.3pt;"> </font>is<font style="letter-spacing:-0.3pt;"> </font>in<font style="letter-spacing:-0.3pt;"> </font>a<font style="letter-spacing:-0.3pt;"> </font>very<font style="letter-spacing:-0.3pt;"> </font>strong<font style="letter-spacing:-0.3pt;"> </font>position.<font style="letter-spacing:-0.3pt;"> </font>You<font style="letter-spacing:-0.3pt;"> </font>got<font style="letter-spacing:-0.3pt;"> </font>a<font style="letter-spacing:-0.3pt;"> </font>new<font style="letter-spacing:-0.3pt;"> </font>CEO in place. What is sort of going to make you say now is the time to do a deal? Is it about getting to cash breakeven? Is it about seeing and feeling a turn in the market? Is it an opportunistic approach? Just trying to understand what is driving the thought process there.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:8.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;"><a name="22._John_T._Rynd"></a>John T. Rynd <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Tidewater Inc. - President, CEO &amp; Director</font></p>
<p style="text-align:justify;margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="23._Turner_Holm"></a>Turner,<font style="letter-spacing:-0.4pt;"> </font>I<font style="letter-spacing:-0.4pt;"> </font>will<font style="letter-spacing:-0.4pt;"> </font>take<font style="letter-spacing:-0.4pt;"> </font>the<font style="letter-spacing:-0.4pt;"> </font>first<font style="letter-spacing:-0.4pt;"> </font>shot<font style="letter-spacing:-0.4pt;"> </font>at<font style="letter-spacing:-0.4pt;"> </font>that.<font style="letter-spacing:-0.4pt;"> </font>This<font style="letter-spacing:-0.4pt;"> </font>is<font style="letter-spacing:-0.4pt;"> </font>John.<font style="letter-spacing:-0.4pt;"> </font>I<font style="letter-spacing:-0.4pt;"> </font>think<font style="letter-spacing:-0.4pt;"> </font>that<font style="letter-spacing:-0.4pt;"> </font>you<font style="letter-spacing:-0.4pt;"> </font>cannot<font style="letter-spacing:-0.4pt;"> </font>force<font style="letter-spacing:-0.4pt;"> </font>consolidation.<font style="letter-spacing:-0.4pt;"> </font>Obviously,<font style="letter-spacing:-0.4pt;"> </font>we<font style="letter-spacing:-0.4pt;"> </font>are<font style="letter-spacing:-0.4pt;"> </font>in<font style="letter-spacing:-0.4pt;"> </font>very<font style="letter-spacing:-0.4pt;"> </font>unique<font style="letter-spacing:-0.4pt;"> </font>and<font style="letter-spacing:-0.4pt;"> </font>a<font style="letter-spacing:-0.4pt;"> </font>good<font style="letter-spacing:-0.4pt;"> </font>position relative<font style="letter-spacing:-0.1pt;"> </font>to<font style="letter-spacing:-0.1pt;"> </font>our<font style="letter-spacing:-0.1pt;"> </font>peers.<font style="letter-spacing:-0.1pt;"> </font>So<font style="letter-spacing:-0.1pt;"> </font>we<font style="letter-spacing:-0.1pt;"> </font>are<font style="letter-spacing:-0.1pt;"> </font>in<font style="letter-spacing:-0.1pt;"> </font>a<font style="letter-spacing:-0.1pt;"> </font>position<font style="letter-spacing:-0.1pt;"> </font>to<font style="letter-spacing:-0.1pt;"> </font>do<font style="letter-spacing:-0.1pt;"> </font>consolidation<font style="letter-spacing:-0.1pt;"> </font>and<font style="letter-spacing:-0.1pt;"> </font>look<font style="letter-spacing:-0.1pt;"> </font>at<font style="letter-spacing:-0.1pt;"> </font>it<font style="letter-spacing:-0.1pt;"> </font>hard,<font style="letter-spacing:-0.1pt;"> </font>which<font style="letter-spacing:-0.1pt;"> </font>we<font style="letter-spacing:-0.1pt;"> </font>will.<font style="letter-spacing:-0.1pt;"> </font>And<font style="letter-spacing:-0.1pt;"> </font>there<font style="letter-spacing:-0.1pt;"> </font>is<font style="letter-spacing:-0.1pt;"> </font>no<font style="letter-spacing:-0.1pt;"> </font>time<font style="letter-spacing:-0.1pt;"> </font>line<font style="letter-spacing:-0.1pt;"> </font>here,<font style="letter-spacing:-0.1pt;"> </font>and<font style="letter-spacing:-0.1pt;"> </font>there<font style="letter-spacing:-0.1pt;"> </font>are<font style="letter-spacing:-0.1pt;"> </font>no deals on the table. But if something at -- any good management team always looks at M&amp;A opportunities, whether that would be another peer<font style="letter-spacing:-1.2pt;"> </font>in its<font style="letter-spacing:-0.5pt;"> </font>entire<font style="letter-spacing:-0.5pt;"> </font>fleet<font style="letter-spacing:-0.5pt;"> </font>or<font style="letter-spacing:-0.5pt;"> </font>individual<font style="letter-spacing:-0.5pt;"> </font>assets<font style="letter-spacing:-0.5pt;"> </font>that<font style="letter-spacing:-0.5pt;"> </font>are<font style="letter-spacing:-0.5pt;"> </font>distressed<font style="letter-spacing:-0.5pt;"> </font>that<font style="letter-spacing:-0.5pt;"> </font>you<font style="letter-spacing:-0.5pt;"> </font>could<font style="letter-spacing:-0.5pt;"> </font>plug<font style="letter-spacing:-0.5pt;"> </font>into<font style="letter-spacing:-0.5pt;"> </font>one<font style="letter-spacing:-0.5pt;"> </font>of<font style="letter-spacing:-0.5pt;"> </font>your<font style="letter-spacing:-0.5pt;"> </font>key<font style="letter-spacing:-0.5pt;"> </font>markets.<font style="letter-spacing:-0.5pt;"> </font>So<font style="letter-spacing:-0.5pt;"> </font>I<font style="letter-spacing:-0.5pt;"> </font>think<font style="letter-spacing:-0.5pt;"> </font>that<font style="letter-spacing:-0.5pt;"> </font>this<font style="letter-spacing:-0.5pt;"> </font>will<font style="letter-spacing:-0.5pt;"> </font>be<font style="letter-spacing:-0.5pt;"> </font>an<font style="letter-spacing:-0.5pt;"> </font>ongoing<font style="letter-spacing:-0.5pt;"> </font><a name="23._Turner_Holm"></a>process at Tidewater that we will look to opportunistically take advantage of the marketplace and the strength of our balance sheet.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:8.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;">Turner Holm <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Clarksons Platou Securities AS, Research Division - Director</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="24._Operator"></a>Okay, thank you very much John. Appreciate that, and I will turn it back.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;">Operator</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="25._Synn&#248;ve_Gj&#248;nnes"></a><a name="_bookmark6"></a>Our next question is from Synn&#248;ve Gj&#248;nnes from Pareto.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
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<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;">Synn&#248;ve Gj&#248;nnes <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Pareto Securities, Research Division - Analyst</font></p>
<p style="text-align:justify;margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="26._John_T._Rynd"></a>Good morning, guys. Thank you for taking my questions. Two questions for me, please. The first one, on your cost initiatives and your near-term objective<font style="letter-spacing:-0.1pt;"> </font>on<font style="letter-spacing:-0.1pt;"> </font>becoming<font style="letter-spacing:-0.1pt;"> </font>cash<font style="letter-spacing:-0.1pt;"> </font>flow<font style="letter-spacing:-0.1pt;"> </font>breakeven,<font style="letter-spacing:-0.1pt;"> </font>how<font style="letter-spacing:-0.1pt;"> </font>much<font style="letter-spacing:-0.1pt;"> </font>of<font style="letter-spacing:-0.1pt;"> </font>that<font style="letter-spacing:-0.1pt;"> </font>objective<font style="letter-spacing:-0.1pt;"> </font>is<font style="letter-spacing:-0.1pt;"> </font>driven<font style="letter-spacing:-0.1pt;"> </font>by<font style="letter-spacing:-0.1pt;"> </font>an<font style="letter-spacing:-0.1pt;"> </font>anticipated<font style="letter-spacing:-0.1pt;"> </font>improvement<font style="letter-spacing:-0.1pt;"> </font>in<font style="letter-spacing:-0.1pt;"> </font>day<font style="letter-spacing:-0.1pt;"> </font>rates<font style="letter-spacing:-0.1pt;"> </font>and/or<font style="letter-spacing:-0.1pt;"> </font><a name="26._John_T._Rynd"></a>utilization? And how much is expected to be driven by costs? And the second question for me is on scrapping of assets. Where should we expect seeing the most scrapping going forward in terms of regions? And also, if you can comment a bit on vessel characteristics in which you are -- you sort of<font style="letter-spacing:-1.35pt;"> </font>find a good fit for scrapping. Thank you.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:8.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;"><a name="27._Quinn_P._Fanning"></a>John T. Rynd <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Tidewater Inc. - President, CEO &amp; Director</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Quinn, why don't you go ahead and take that?</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
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<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;">Quinn P. Fanning <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Tidewater Inc. - Executive VP &amp; CFO</font></p>
<p style="text-align:justify;margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Sure. Well, as I highlighted, Synn&#248;ve, I think the starting point for us is dealing with the revenue reality as opposed to a revenue objective. We<font style="letter-spacing:-1.3pt;"> </font>are where<font style="letter-spacing:-0.25pt;"> </font>we<font style="letter-spacing:-0.25pt;"> </font>are<font style="letter-spacing:-0.25pt;"> </font>in<font style="letter-spacing:-0.25pt;"> </font>terms<font style="letter-spacing:-0.25pt;"> </font>of<font style="letter-spacing:-0.25pt;"> </font>$100-plus<font style="letter-spacing:-0.25pt;"> </font>million<font style="letter-spacing:-0.25pt;"> </font>a<font style="letter-spacing:-0.25pt;"> </font>quarter<font style="letter-spacing:-0.25pt;"> </font>in<font style="letter-spacing:-0.25pt;"> </font>vessel<font style="letter-spacing:-0.25pt;"> </font>revenue.<font style="letter-spacing:-0.25pt;"> </font>And<font style="letter-spacing:-0.25pt;"> </font>what<font style="letter-spacing:-0.25pt;"> </font>we<font style="letter-spacing:-0.25pt;"> </font>are<font style="letter-spacing:-0.25pt;"> </font>trying<font style="letter-spacing:-0.25pt;"> </font>to<font style="letter-spacing:-0.25pt;"> </font>do<font style="letter-spacing:-0.25pt;"> </font>is<font style="letter-spacing:-0.25pt;"> </font>size<font style="letter-spacing:-0.25pt;"> </font>the<font style="letter-spacing:-0.25pt;"> </font>cost<font style="letter-spacing:-0.25pt;"> </font>structure<font style="letter-spacing:-0.25pt;"> </font>to<font style="letter-spacing:-0.25pt;"> </font>get<font style="letter-spacing:-0.25pt;"> </font>to<font style="letter-spacing:-0.25pt;"> </font>a<font style="letter-spacing:-0.25pt;"> </font>breakeven in<font style="letter-spacing:-0.2pt;"> </font>that<font style="letter-spacing:-0.2pt;"> </font>context<font style="letter-spacing:-0.2pt;"> </font>on<font style="letter-spacing:-0.2pt;"> </font>an<font style="letter-spacing:-0.2pt;"> </font>after-tax<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>after-leverage<font style="letter-spacing:-0.2pt;"> </font>basis.<font style="letter-spacing:-0.2pt;"> </font>I<font style="letter-spacing:-0.2pt;"> </font>think<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>mandate<font style="letter-spacing:-0.2pt;"> </font>from<font style="letter-spacing:-0.2pt;"> </font>Larry<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>now,<font style="letter-spacing:-0.2pt;"> </font>John<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>our<font style="letter-spacing:-0.2pt;"> </font>board,<font style="letter-spacing:-0.2pt;"> </font>just<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>be<font style="letter-spacing:-0.2pt;"> </font>clear,<font style="letter-spacing:-0.2pt;"> </font>is<font style="letter-spacing:-0.2pt;"> </font>that<font style="letter-spacing:-0.2pt;"> </font>we<font style="letter-spacing:-0.2pt;"> </font>are going<font style="letter-spacing:-0.4pt;"> </font>to<font style="letter-spacing:-0.4pt;"> </font>get<font style="letter-spacing:-0.4pt;"> </font>to<font style="letter-spacing:-0.4pt;"> </font>a<font style="letter-spacing:-0.4pt;"> </font>cash<font style="letter-spacing:-0.4pt;"> </font>flow<font style="letter-spacing:-0.4pt;"> </font>breakeven<font style="letter-spacing:-0.4pt;"> </font>or<font style="letter-spacing:-0.4pt;"> </font>something<font style="letter-spacing:-0.4pt;"> </font>very<font style="letter-spacing:-0.4pt;"> </font>close<font style="letter-spacing:-0.4pt;"> </font>to<font style="letter-spacing:-0.4pt;"> </font>it<font style="letter-spacing:-0.4pt;"> </font>on<font style="letter-spacing:-0.4pt;"> </font>the<font style="letter-spacing:-0.4pt;"> </font>basis<font style="letter-spacing:-0.4pt;"> </font>of<font style="letter-spacing:-0.4pt;"> </font>the<font style="letter-spacing:-0.4pt;"> </font>market<font style="letter-spacing:-0.4pt;"> </font>that<font style="letter-spacing:-0.4pt;"> </font>we<font style="letter-spacing:-0.4pt;"> </font>have<font style="letter-spacing:-0.4pt;"> </font>today.<font style="letter-spacing:-0.4pt;"> </font>And<font style="letter-spacing:-0.4pt;"> </font>parenthetically,<font style="letter-spacing:-0.4pt;"> </font>or<font style="letter-spacing:-0.4pt;"> </font>die<font style="letter-spacing:-0.4pt;"> </font>trying. So<font style="letter-spacing:-0.1pt;"> </font>I<font style="letter-spacing:-0.1pt;"> </font>think<font style="letter-spacing:-0.1pt;"> </font>the<font style="letter-spacing:-0.1pt;"> </font>point<font style="letter-spacing:-0.1pt;"> </font>is<font style="letter-spacing:-0.1pt;"> </font>to<font style="letter-spacing:-0.1pt;"> </font>look<font style="letter-spacing:-0.1pt;"> </font>at<font style="letter-spacing:-0.1pt;"> </font>structural<font style="letter-spacing:-0.1pt;"> </font>adjustments,<font style="letter-spacing:-0.1pt;"> </font>too.<font style="letter-spacing:-0.1pt;"> </font>The<font style="letter-spacing:-0.1pt;"> </font>cost<font style="letter-spacing:-0.1pt;"> </font>structure,<font style="letter-spacing:-0.1pt;"> </font>I<font style="letter-spacing:-0.1pt;"> </font>think,<font style="letter-spacing:-0.1pt;"> </font>we<font style="letter-spacing:-0.1pt;"> </font>have<font style="letter-spacing:-0.1pt;"> </font>harvested<font style="letter-spacing:-0.1pt;"> </font>most<font style="letter-spacing:-0.1pt;"> </font>of<font style="letter-spacing:-0.1pt;"> </font>the<font style="letter-spacing:-0.1pt;"> </font>"low-hanging<font style="letter-spacing:-0.1pt;"> </font>fruit."<font style="letter-spacing:-0.1pt;"> </font>As<font style="letter-spacing:-0.1pt;"> </font>John highlighted, the wage, benefits and staffing levels have been significant in terms of reductions, and we are going to continue to look at that kind of<font style="letter-spacing:-0.3pt;"> </font>stuff<font style="letter-spacing:-0.3pt;"> </font>on<font style="letter-spacing:-0.3pt;"> </font>a<font style="letter-spacing:-0.3pt;"> </font>go-forward<font style="letter-spacing:-0.3pt;"> </font>basis,<font style="letter-spacing:-0.3pt;"> </font>whether<font style="letter-spacing:-0.3pt;"> </font>it<font style="letter-spacing:-0.3pt;"> </font>is<font style="letter-spacing:-0.3pt;"> </font>additional<font style="letter-spacing:-0.3pt;"> </font>rationalization<font style="letter-spacing:-0.3pt;"> </font>of<font style="letter-spacing:-0.3pt;"> </font>our<font style="letter-spacing:-0.3pt;"> </font>shore<font style="letter-spacing:-0.3pt;"> </font>base<font style="letter-spacing:-0.3pt;"> </font>support<font style="letter-spacing:-0.3pt;"> </font>in<font style="letter-spacing:-0.3pt;"> </font>a<font style="letter-spacing:-0.3pt;"> </font>particular<font style="letter-spacing:-0.3pt;"> </font>area<font style="letter-spacing:-0.3pt;"> </font>or<font style="letter-spacing:-0.3pt;"> </font>region<font style="letter-spacing:-0.3pt;"> </font>or<font style="letter-spacing:-0.3pt;"> </font>something<font style="letter-spacing:-0.3pt;"> </font>like<font style="letter-spacing:-0.3pt;"> </font>that. Supply<font style="letter-spacing:-1.05pt;"> </font>chain<font style="letter-spacing:-1.05pt;"> </font>is<font style="letter-spacing:-1.05pt;"> </font>also<font style="letter-spacing:-1.05pt;"> </font>a<font style="letter-spacing:-1.05pt;"> </font>significant<font style="letter-spacing:-1.05pt;"> </font>potential<font style="letter-spacing:-1.05pt;"> </font>for<font style="letter-spacing:-1.05pt;"> </font>cost<font style="letter-spacing:-1.05pt;"> </font>savings<font style="letter-spacing:-1.05pt;"> </font>on<font style="letter-spacing:-1.05pt;"> </font>a<font style="letter-spacing:-1.05pt;"> </font>go-forward<font style="letter-spacing:-1.05pt;"> </font>basis,<font style="letter-spacing:-1.05pt;"> </font>particularly<font style="letter-spacing:-1.05pt;"> </font>as<font style="letter-spacing:-1.05pt;"> </font>we<font style="letter-spacing:-1.05pt;"> </font>start<font style="letter-spacing:-1.05pt;"> </font>thinking<font style="letter-spacing:-1.05pt;"> </font>about<font style="letter-spacing:-1.05pt;"> </font>global<font style="letter-spacing:-1.05pt;"> </font>purchasing<font style="letter-spacing:-1.05pt;"> </font>economies, as<font style="letter-spacing:-0.25pt;"> </font>we<font style="letter-spacing:-0.25pt;"> </font>think<font style="letter-spacing:-0.25pt;"> </font>about<font style="letter-spacing:-0.25pt;"> </font>reactivating<font style="letter-spacing:-0.25pt;"> </font>vessels<font style="letter-spacing:-0.25pt;"> </font>in<font style="letter-spacing:-0.25pt;"> </font>an<font style="letter-spacing:-0.25pt;"> </font>upturn.<font style="letter-spacing:-0.25pt;"> </font>So<font style="letter-spacing:-0.25pt;"> </font>again,<font style="letter-spacing:-0.25pt;"> </font>we<font style="letter-spacing:-0.25pt;"> </font>are<font style="letter-spacing:-0.25pt;"> </font>not<font style="letter-spacing:-0.25pt;"> </font>banking<font style="letter-spacing:-0.25pt;"> </font>on<font style="letter-spacing:-0.25pt;"> </font>some<font style="letter-spacing:-0.25pt;"> </font>significant<font style="letter-spacing:-0.25pt;"> </font>recovery<font style="letter-spacing:-0.25pt;"> </font>in<font style="letter-spacing:-0.25pt;"> </font>the<font style="letter-spacing:-0.25pt;"> </font>market<font style="letter-spacing:-0.25pt;"> </font>to<font style="letter-spacing:-0.25pt;"> </font>achieve<font style="letter-spacing:-0.25pt;"> </font>a<font style="letter-spacing:-0.25pt;"> </font>cash<font style="letter-spacing:-0.25pt;"> </font>flow breakeven,<font style="letter-spacing:-0.2pt;"> </font>but<font style="letter-spacing:-0.2pt;"> </font>we<font style="letter-spacing:-0.2pt;"> </font>are<font style="letter-spacing:-0.2pt;"> </font>trying<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>get<font style="letter-spacing:-0.2pt;"> </font>there<font style="letter-spacing:-0.2pt;"> </font>based<font style="letter-spacing:-0.2pt;"> </font>on<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>current<font style="letter-spacing:-0.2pt;"> </font>revenue<font style="letter-spacing:-0.2pt;"> </font>run<font style="letter-spacing:-0.2pt;"> </font>rate.<font style="letter-spacing:-0.2pt;"> </font>Will<font style="letter-spacing:-0.2pt;"> </font>we<font style="letter-spacing:-0.2pt;"> </font>get<font style="letter-spacing:-0.2pt;"> </font>there<font style="letter-spacing:-0.2pt;"> </font>in<font style="letter-spacing:-0.2pt;"> </font>one<font style="letter-spacing:-0.2pt;"> </font>quarter,<font style="letter-spacing:-0.2pt;"> </font>two<font style="letter-spacing:-0.2pt;"> </font>quarters?<font style="letter-spacing:-0.2pt;"> </font>I<font style="letter-spacing:-0.2pt;"> </font>do<font style="letter-spacing:-0.2pt;"> </font>not<font style="letter-spacing:-0.2pt;"> </font>know,<font style="letter-spacing:-0.2pt;"> </font>but</p>
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<p style="margin-bottom:4pt;margin-top:4pt;margin-left:4pt;;margin-right:0.73%;text-indent:0pt;;color:#FFFFFF;font-size:12pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">MARCH<font style="letter-spacing:-0.75pt;"> </font>15,<font style="letter-spacing:-0.75pt;"> </font>2018<font style="letter-spacing:-0.75pt;"> </font>/<font style="letter-spacing:-0.75pt;"> </font>3:00PM,<font style="letter-spacing:-0.75pt;"> </font>TDW<font style="letter-spacing:-0.75pt;"> </font>-<font style="letter-spacing:-0.75pt;"> </font>Tidewater<font style="letter-spacing:-0.75pt;"> </font>Inc.<font style="letter-spacing:-0.75pt;"> </font>Earnings<font style="letter-spacing:-0.75pt;"> </font>Call<font style="letter-spacing:-0.75pt;"> </font>for<font style="letter-spacing:-0.75pt;"> </font>the<font style="letter-spacing:-0.75pt;"> </font>Three<font style="letter-spacing:-0.75pt;"> </font>Months<font style="letter-spacing:-0.75pt;"> </font>Ended<font style="letter-spacing:-0.75pt;"> </font>December<font style="letter-spacing:-0.75pt;"> </font>31,<font style="letter-spacing:-0.75pt;"> </font>2017 and<font style="letter-spacing:-0.25pt;"> </font>the<font style="letter-spacing:-0.25pt;"> </font>Nine<font style="letter-spacing:-0.25pt;"> </font>Month<font style="letter-spacing:-0.25pt;"> </font>Transition<font style="letter-spacing:-0.25pt;"> </font>Period<font style="letter-spacing:-0.25pt;"> </font>from<font style="letter-spacing:-0.25pt;"> </font>April<font style="letter-spacing:-0.25pt;"> </font>1,<font style="letter-spacing:-0.25pt;"> </font>2017<font style="letter-spacing:-0.25pt;"> </font>through<font style="letter-spacing:-0.25pt;"> </font>December<font style="letter-spacing:-0.25pt;"> </font>31,<font style="letter-spacing:-0.25pt;"> </font>2017</p></td>
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<p style="text-align:justify;margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">we<font style="letter-spacing:-0.3pt;"> </font>are<font style="letter-spacing:-0.3pt;"> </font>certainly<font style="letter-spacing:-0.3pt;"> </font>making<font style="letter-spacing:-0.3pt;"> </font>decisions<font style="letter-spacing:-0.3pt;"> </font>from<font style="letter-spacing:-0.3pt;"> </font>the<font style="letter-spacing:-0.3pt;"> </font>office<font style="letter-spacing:-0.3pt;"> </font>closures<font style="letter-spacing:-0.3pt;"> </font>and<font style="letter-spacing:-0.3pt;"> </font>the<font style="letter-spacing:-0.3pt;"> </font>like<font style="letter-spacing:-0.3pt;"> </font>or<font style="letter-spacing:-0.3pt;"> </font>downsizing<font style="letter-spacing:-0.3pt;"> </font>decisions<font style="letter-spacing:-0.3pt;"> </font>on<font style="letter-spacing:-0.3pt;"> </font>the<font style="letter-spacing:-0.3pt;"> </font>basis<font style="letter-spacing:-0.3pt;"> </font>of<font style="letter-spacing:-0.3pt;"> </font>the<font style="letter-spacing:-0.3pt;"> </font>current<font style="letter-spacing:-0.3pt;"> </font>run<font style="letter-spacing:-0.3pt;"> </font>rate<font style="letter-spacing:-0.3pt;"> </font>of<font style="letter-spacing:-0.3pt;"> </font>revenue.<font style="letter-spacing:-0.3pt;"> </font>That said,<font style="letter-spacing:-0.7pt;"> </font>I<font style="letter-spacing:-0.7pt;"> </font>think<font style="letter-spacing:-0.7pt;"> </font>we<font style="letter-spacing:-0.7pt;"> </font>see<font style="letter-spacing:-0.7pt;"> </font>some<font style="letter-spacing:-0.7pt;"> </font>positive<font style="letter-spacing:-0.7pt;"> </font>signs<font style="letter-spacing:-0.7pt;"> </font>in<font style="letter-spacing:-0.7pt;"> </font>the<font style="letter-spacing:-0.7pt;"> </font>market<font style="letter-spacing:-0.7pt;"> </font>that<font style="letter-spacing:-0.7pt;"> </font>would<font style="letter-spacing:-0.7pt;"> </font>point<font style="letter-spacing:-0.7pt;"> </font>to<font style="letter-spacing:-0.7pt;"> </font>at<font style="letter-spacing:-0.7pt;"> </font>least<font style="letter-spacing:-0.7pt;"> </font>better<font style="letter-spacing:-0.7pt;"> </font>utilization,<font style="letter-spacing:-0.7pt;"> </font>potentially<font style="letter-spacing:-0.7pt;"> </font>better<font style="letter-spacing:-0.7pt;"> </font>day<font style="letter-spacing:-0.7pt;"> </font>rates<font style="letter-spacing:-0.7pt;"> </font>as<font style="letter-spacing:-0.7pt;"> </font>the<font style="letter-spacing:-0.7pt;"> </font>year<font style="letter-spacing:-0.7pt;"> </font>progresses. And particularly, as we get into '19 when we see some uptick in drilling activity.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">I<font style="letter-spacing:-0.05pt;"> </font>think<font style="letter-spacing:-0.05pt;"> </font>that<font style="letter-spacing:-0.05pt;"> </font>is<font style="letter-spacing:-0.05pt;"> </font>something<font style="letter-spacing:-0.05pt;"> </font>we<font style="letter-spacing:-0.05pt;"> </font>are<font style="letter-spacing:-0.05pt;"> </font>just<font style="letter-spacing:-0.05pt;"> </font>going<font style="letter-spacing:-0.05pt;"> </font>to<font style="letter-spacing:-0.05pt;"> </font>have<font style="letter-spacing:-0.05pt;"> </font>to<font style="letter-spacing:-0.05pt;"> </font>wait<font style="letter-spacing:-0.05pt;"> </font>and<font style="letter-spacing:-0.05pt;"> </font>see<font style="letter-spacing:-0.05pt;"> </font>how<font style="letter-spacing:-0.05pt;"> </font>the<font style="letter-spacing:-0.05pt;"> </font>market<font style="letter-spacing:-0.05pt;"> </font>develops,<font style="letter-spacing:-0.05pt;"> </font>but<font style="letter-spacing:-0.05pt;"> </font>there<font style="letter-spacing:-0.05pt;"> </font>is<font style="letter-spacing:-0.05pt;"> </font>positive<font style="letter-spacing:-0.05pt;"> </font>signs<font style="letter-spacing:-0.05pt;"> </font>out<font style="letter-spacing:-0.05pt;"> </font>there,<font style="letter-spacing:-0.05pt;"> </font>to<font style="letter-spacing:-0.05pt;"> </font>some<font style="letter-spacing:-0.05pt;"> </font>extent. In terms of vessel characteristics that we are looking at in terms of dispositions, as you would probably expect, it relates to age and specification. We believe that the market is generally focused on vessels that are 15 years older or younger on a go-forward basis. The good news is we do not have a lot of equipment that is older than 15 years, and that has been somewhat driving our decisions when we have decided to scrap a vessel here or a vessel there.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="28._Synn&#248;ve_Gj&#248;nnes"></a><a name="28._Synn&#248;ve_Gj&#248;nnes"></a>I think those were your primary questions. But we are not looking at a region per se in terms of scrapping equipment as a targeted region. If we have got good equipment in one market that would be better utilized in another market, we will move it on occasion. But really, it is vessel specification and age that drives our decision to scrap or sell outside of the oil and gas industry.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:8.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;">Synn&#248;ve Gj&#248;nnes <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Pareto Securities, Research Division - Analyst</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="29._Operator"></a>Okay, that made it clear. Thank you. I will go back in the que. Thank you.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;">Operator</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="30._Tord_Augestad"></a><a name="_bookmark7"></a>Our next question is from Tord Augestad from Arctic Securities.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;">Tord Augestad <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Arctic Securities - Analyst</font></p>
<p style="text-align:justify;margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="31._Quinn_P._Fanning"></a>Good<font style="letter-spacing:-0.25pt;"> </font>morning,<font style="letter-spacing:-0.25pt;"> </font>guys.<font style="letter-spacing:-0.25pt;"> </font>I<font style="letter-spacing:-0.25pt;"> </font>think<font style="letter-spacing:-0.25pt;"> </font>a<font style="letter-spacing:-0.25pt;"> </font>lot<font style="letter-spacing:-0.25pt;"> </font>of<font style="letter-spacing:-0.25pt;"> </font>them<font style="letter-spacing:-0.25pt;"> </font>actually<font style="letter-spacing:-0.25pt;"> </font>got<font style="letter-spacing:-0.25pt;"> </font>answered.<font style="letter-spacing:-0.25pt;"> </font>But<font style="letter-spacing:-0.25pt;"> </font>a<font style="letter-spacing:-0.25pt;"> </font>short<font style="letter-spacing:-0.25pt;"> </font>one<font style="letter-spacing:-0.25pt;"> </font>on<font style="letter-spacing:-0.25pt;"> </font>costs.<font style="letter-spacing:-0.25pt;"> </font>I<font style="letter-spacing:-0.25pt;"> </font>think<font style="letter-spacing:-0.25pt;"> </font>you<font style="letter-spacing:-0.25pt;"> </font>showed<font style="letter-spacing:-0.25pt;"> </font>some<font style="letter-spacing:-0.25pt;"> </font>good<font style="letter-spacing:-0.25pt;"> </font>progress<font style="letter-spacing:-0.25pt;"> </font>in<font style="letter-spacing:-0.25pt;"> </font>Q4.<font style="letter-spacing:-0.25pt;"> </font>And<font style="letter-spacing:-0.25pt;"> </font>I<font style="letter-spacing:-0.25pt;"> </font><a name="31._Quinn_P._Fanning"></a>was just wondering, is there any special items or anything that drove down costs sequentially as much as it did in the quarter? Is there any dry dock that will bump back in Q2 or Q3 or stuff like that, that changes the picture somewhat? Or is this all structural?</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:8.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;">Quinn P. Fanning <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Tidewater Inc. - Executive VP &amp; CFO</font></p>
<p style="text-align:justify;margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="32._Tord_Augestad"></a>I think what you are primarily seeing is us putting a lot of the restructuring-related costs behind us at this point. I think at the December quarter, we<font style="letter-spacing:-0.35pt;"> </font>are<font style="letter-spacing:-0.35pt;"> </font>down<font style="letter-spacing:-0.35pt;"> </font>to<font style="letter-spacing:-0.35pt;"> </font>essentially<font style="letter-spacing:-0.35pt;"> </font>a<font style="letter-spacing:-0.35pt;"> </font>trickle<font style="letter-spacing:-0.35pt;"> </font>in<font style="letter-spacing:-0.35pt;"> </font>terms<font style="letter-spacing:-0.35pt;"> </font>of<font style="letter-spacing:-0.35pt;"> </font>restructuring-related<font style="letter-spacing:-0.35pt;"> </font>professional<font style="letter-spacing:-0.35pt;"> </font>services<font style="letter-spacing:-0.35pt;"> </font>costs.<font style="letter-spacing:-0.35pt;"> </font>Will<font style="letter-spacing:-0.35pt;"> </font>we<font style="letter-spacing:-0.35pt;"> </font>have<font style="letter-spacing:-0.35pt;"> </font>a<font style="letter-spacing:-0.35pt;"> </font>bit<font style="letter-spacing:-0.35pt;"> </font>in<font style="letter-spacing:-0.35pt;"> </font>the<font style="letter-spacing:-0.35pt;"> </font>March<font style="letter-spacing:-0.35pt;"> </font>quarter?<font style="letter-spacing:-0.35pt;"> </font><a name="32._Tord_Augestad"></a>Potentially, but I do not think the numbers will be significant. I think the other thing that we take comfort in as we look at, particularly in G&amp;A trends on a go-forward basis. A number of the wage and benefit reductions that we have implemented became effective on January 1, 2018. Some of the restructuring-related stay incentives that we have put in place are behind us starting in January. So I think when John talks about the outlook for costs<font style="letter-spacing:-0.2pt;"> </font>is<font style="letter-spacing:-0.2pt;"> </font>getting<font style="letter-spacing:-0.2pt;"> </font>below<font style="letter-spacing:-0.2pt;"> </font>kind<font style="letter-spacing:-0.2pt;"> </font>of<font style="letter-spacing:-0.2pt;"> </font>$25<font style="letter-spacing:-0.2pt;"> </font>million<font style="letter-spacing:-0.2pt;"> </font>per<font style="letter-spacing:-0.2pt;"> </font>quarter<font style="letter-spacing:-0.2pt;"> </font>level<font style="letter-spacing:-0.2pt;"> </font>in<font style="letter-spacing:-0.2pt;"> </font>terms<font style="letter-spacing:-0.2pt;"> </font>of<font style="letter-spacing:-0.2pt;"> </font>G&amp;A,<font style="letter-spacing:-0.2pt;"> </font>excluding<font style="letter-spacing:-0.2pt;"> </font>stock-based<font style="letter-spacing:-0.2pt;"> </font>compensation<font style="letter-spacing:-0.2pt;"> </font>expense,<font style="letter-spacing:-0.2pt;"> </font>I<font style="letter-spacing:-0.2pt;"> </font>think<font style="letter-spacing:-0.2pt;"> </font>that<font style="letter-spacing:-0.2pt;"> </font>is<font style="letter-spacing:-0.2pt;"> </font>where<font style="letter-spacing:-0.2pt;"> </font>we see the trend going from, I think, $30 million in the December quarter. And as we exit 2018, I think we are highly confident that it will be at $25 million<font style="letter-spacing:-0.25pt;"> </font>or<font style="letter-spacing:-0.25pt;"> </font>below<font style="letter-spacing:-0.25pt;"> </font>in<font style="letter-spacing:-0.25pt;"> </font>terms<font style="letter-spacing:-0.25pt;"> </font>of<font style="letter-spacing:-0.25pt;"> </font>quarterly<font style="letter-spacing:-0.25pt;"> </font>G&amp;A.<font style="letter-spacing:-0.25pt;"> </font>So<font style="letter-spacing:-0.25pt;"> </font>we<font style="letter-spacing:-0.25pt;"> </font>are<font style="letter-spacing:-0.25pt;"> </font>moving<font style="letter-spacing:-0.25pt;"> </font>in<font style="letter-spacing:-0.25pt;"> </font>the<font style="letter-spacing:-0.25pt;"> </font>right<font style="letter-spacing:-0.25pt;"> </font>direction<font style="letter-spacing:-0.25pt;"> </font>in<font style="letter-spacing:-0.25pt;"> </font>part<font style="letter-spacing:-0.25pt;"> </font>because<font style="letter-spacing:-0.25pt;"> </font>we<font style="letter-spacing:-0.25pt;"> </font>are<font style="letter-spacing:-0.25pt;"> </font>putting<font style="letter-spacing:-0.25pt;"> </font>a<font style="letter-spacing:-0.25pt;"> </font>lot<font style="letter-spacing:-0.25pt;"> </font>of<font style="letter-spacing:-0.25pt;"> </font>the<font style="letter-spacing:-0.25pt;"> </font>restructuring-related professional services costs and some of the stay incentives that we have put in place during the restructuring are now generally behind us.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:8.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;">Tord Augestad <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Arctic Securities - Analyst</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.36%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Okay. So we can use the fourth quarter as sort of the vessel operating costs as a -- going forward into the second and third quarter. I guess, that is a good yardstick to use then?</p>
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<p style="margin-bottom:4pt;margin-top:4pt;margin-left:4pt;;margin-right:0.73%;text-indent:0pt;;color:#FFFFFF;font-size:12pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">MARCH<font style="letter-spacing:-0.75pt;"> </font>15,<font style="letter-spacing:-0.75pt;"> </font>2018<font style="letter-spacing:-0.75pt;"> </font>/<font style="letter-spacing:-0.75pt;"> </font>3:00PM,<font style="letter-spacing:-0.75pt;"> </font>TDW<font style="letter-spacing:-0.75pt;"> </font>-<font style="letter-spacing:-0.75pt;"> </font>Tidewater<font style="letter-spacing:-0.75pt;"> </font>Inc.<font style="letter-spacing:-0.75pt;"> </font>Earnings<font style="letter-spacing:-0.75pt;"> </font>Call<font style="letter-spacing:-0.75pt;"> </font>for<font style="letter-spacing:-0.75pt;"> </font>the<font style="letter-spacing:-0.75pt;"> </font>Three<font style="letter-spacing:-0.75pt;"> </font>Months<font style="letter-spacing:-0.75pt;"> </font>Ended<font style="letter-spacing:-0.75pt;"> </font>December<font style="letter-spacing:-0.75pt;"> </font>31,<font style="letter-spacing:-0.75pt;"> </font>2017 and<font style="letter-spacing:-0.25pt;"> </font>the<font style="letter-spacing:-0.25pt;"> </font>Nine<font style="letter-spacing:-0.25pt;"> </font>Month<font style="letter-spacing:-0.25pt;"> </font>Transition<font style="letter-spacing:-0.25pt;"> </font>Period<font style="letter-spacing:-0.25pt;"> </font>from<font style="letter-spacing:-0.25pt;"> </font>April<font style="letter-spacing:-0.25pt;"> </font>1,<font style="letter-spacing:-0.25pt;"> </font>2017<font style="letter-spacing:-0.25pt;"> </font>through<font style="letter-spacing:-0.25pt;"> </font>December<font style="letter-spacing:-0.25pt;"> </font>31,<font style="letter-spacing:-0.25pt;"> </font>2017</p></td>
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<p style="margin-bottom:4pt;margin-top:4pt;margin-left:4pt;;margin-right:0.73%;text-indent:0pt;;font-family:Times New Roman;font-size:12pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:3pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;"><a name="33._Quinn_P._Fanning"></a>Quinn P. Fanning <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Tidewater Inc. - Executive VP &amp; CFO</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">I have to be clear. I was referring to G&amp;A vessel operating expense, vessel operating expense...</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;"><a name="34._Tord_Augestad"></a>Tord Augestad <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Arctic Securities - Analyst</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Yes, okay, so that is just G&amp;A. So I was thinking more about the total vessel operating costs.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;"><a name="35._Quinn_P._Fanning"></a>Quinn P. Fanning <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Tidewater Inc. - Executive VP &amp; CFO</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="36._Tord_Augestad"></a>I am sorry, I spoke over you.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;">Tord Augestad <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Arctic Securities - Analyst</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="37._Quinn_P._Fanning"></a>Yes, I was thinking more about total vessel operating costs in terms of crew costs and so forth.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;">Quinn P. Fanning <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Tidewater Inc. - Executive VP &amp; CFO</font></p>
<p style="text-align:justify;margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="38._Tord_Augestad"></a><a name="38._Tord_Augestad"></a>Yes. Again, I think that is going to be a function of active vessels, which, we would expect to be relatively stable over the next couple of quarters, depending upon activity level. I would focus more on the active vessels that you anticipate based on market trends and whatever the guidance we are providing you and focus on the vessel level operating margin numbers to back into your operating expenses. We are trying to manage to that mid-30s vessel operating margin. And to the extent that we are going to activate equipment, there may be a lag between costs, particularly crew costs, and the revenue that we generate on it, but we would expect those two to be generally moving in the same direction.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:8.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;"><a name="39._Quinn_P._Fanning"></a>Tord Augestad <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Arctic Securities - Analyst</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Okay, thank you. That is all for me.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;"><a name="40._Operator"></a>Quinn P. Fanning <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Tidewater Inc. - Executive VP &amp; CFO</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Thank you.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;"><a name="41._John_Eric_Deysher"></a><a name="_bookmark8"></a>Operator</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our next question is from John Deysher from Pinnacle.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;"><a name="42._John_T._Rynd"></a>John Eric Deysher <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Bertolet Capital LLC - President, Chief Compliance Officer, and Portfolio Manager</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Hi, good morning.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;">John T. Rynd <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Tidewater Inc. - President, CEO &amp; Director</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Good morning.</p>
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<p style="margin-bottom:4pt;margin-top:4pt;margin-left:4pt;;margin-right:0.73%;text-indent:0pt;;color:#FFFFFF;font-size:12pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">MARCH<font style="letter-spacing:-0.75pt;"> </font>15,<font style="letter-spacing:-0.75pt;"> </font>2018<font style="letter-spacing:-0.75pt;"> </font>/<font style="letter-spacing:-0.75pt;"> </font>3:00PM,<font style="letter-spacing:-0.75pt;"> </font>TDW<font style="letter-spacing:-0.75pt;"> </font>-<font style="letter-spacing:-0.75pt;"> </font>Tidewater<font style="letter-spacing:-0.75pt;"> </font>Inc.<font style="letter-spacing:-0.75pt;"> </font>Earnings<font style="letter-spacing:-0.75pt;"> </font>Call<font style="letter-spacing:-0.75pt;"> </font>for<font style="letter-spacing:-0.75pt;"> </font>the<font style="letter-spacing:-0.75pt;"> </font>Three<font style="letter-spacing:-0.75pt;"> </font>Months<font style="letter-spacing:-0.75pt;"> </font>Ended<font style="letter-spacing:-0.75pt;"> </font>December<font style="letter-spacing:-0.75pt;"> </font>31,<font style="letter-spacing:-0.75pt;"> </font>2017 and<font style="letter-spacing:-0.25pt;"> </font>the<font style="letter-spacing:-0.25pt;"> </font>Nine<font style="letter-spacing:-0.25pt;"> </font>Month<font style="letter-spacing:-0.25pt;"> </font>Transition<font style="letter-spacing:-0.25pt;"> </font>Period<font style="letter-spacing:-0.25pt;"> </font>from<font style="letter-spacing:-0.25pt;"> </font>April<font style="letter-spacing:-0.25pt;"> </font>1,<font style="letter-spacing:-0.25pt;"> </font>2017<font style="letter-spacing:-0.25pt;"> </font>through<font style="letter-spacing:-0.25pt;"> </font>December<font style="letter-spacing:-0.25pt;"> </font>31,<font style="letter-spacing:-0.25pt;"> </font>2017</p></td>
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<p style="margin-bottom:4pt;margin-top:4pt;margin-left:4pt;;margin-right:0.73%;text-indent:0pt;;font-family:Times New Roman;font-size:12pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:3pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;"><a name="43._John_Eric_Deysher"></a>John Eric Deysher <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Bertolet Capital LLC - President, Chief Compliance Officer, and Portfolio Manager</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Good<font style="letter-spacing:-0.5pt;"> </font>morning.<font style="letter-spacing:-0.5pt;"> </font>The<font style="letter-spacing:-0.5pt;"> </font>scrapping,<font style="letter-spacing:-0.5pt;"> </font>you<font style="letter-spacing:-0.5pt;"> </font>mentioned<font style="letter-spacing:-0.5pt;"> </font>you<font style="letter-spacing:-0.5pt;"> </font>scrapped<font style="letter-spacing:-0.5pt;"> </font>18<font style="letter-spacing:-0.5pt;"> </font>vessels<font style="letter-spacing:-0.5pt;"> </font>year-to-date.<font style="letter-spacing:-0.5pt;"> </font>Where<font style="letter-spacing:-0.5pt;"> </font>do<font style="letter-spacing:-0.5pt;"> </font>you<font style="letter-spacing:-0.5pt;"> </font>think<font style="letter-spacing:-0.5pt;"> </font>the<font style="letter-spacing:-0.5pt;"> </font>total<font style="letter-spacing:-0.5pt;"> </font>scrapping<font style="letter-spacing:-0.5pt;"> </font>might<font style="letter-spacing:-0.5pt;"> </font>be<font style="letter-spacing:-0.5pt;"> </font>by<font style="letter-spacing:-0.5pt;"> </font>year-end? How many vessels do you anticipate scrapping this year?</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:8.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;"><a name="44._Quinn_P._Fanning"></a>Quinn P. Fanning <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Tidewater Inc. - Executive VP &amp; CFO</font></p>
<p style="text-align:justify;margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="45._John_Eric_Deysher"></a>Well, at December, at quarter-end, we had 89 stacked vessels. As John highlighted, we disposed of 18 vessels subsequent to December 31, 16 of which were scrapped, not 18. Yes, we will continue to look at dispositions, including scrapping on a go-forward basis. But as we get into excuse me, a stacked fleet, that is now into the low to mid-70s, I think we are getting closer where we want to be from a inactive vessels, that number is not<font style="letter-spacing:-0.25pt;"> </font>going<font style="letter-spacing:-0.25pt;"> </font>to<font style="letter-spacing:-0.25pt;"> </font>get<font style="letter-spacing:-0.25pt;"> </font>to<font style="letter-spacing:-0.25pt;"> </font>zero<font style="letter-spacing:-0.25pt;"> </font>until<font style="letter-spacing:-0.25pt;"> </font>we<font style="letter-spacing:-0.25pt;"> </font>see<font style="letter-spacing:-0.25pt;"> </font>a<font style="letter-spacing:-0.25pt;"> </font>significant<font style="letter-spacing:-0.25pt;"> </font>upturn<font style="letter-spacing:-0.25pt;"> </font>in<font style="letter-spacing:-0.25pt;"> </font>the<font style="letter-spacing:-0.25pt;"> </font>market.<font style="letter-spacing:-0.25pt;"> </font>We<font style="letter-spacing:-0.25pt;"> </font>are<font style="letter-spacing:-0.25pt;"> </font>reactivating<font style="letter-spacing:-0.25pt;"> </font>equipment,<font style="letter-spacing:-0.25pt;"> </font>but<font style="letter-spacing:-0.25pt;"> </font>have<font style="letter-spacing:-0.25pt;"> </font>$650<font style="letter-spacing:-0.25pt;"> </font>plus<font style="letter-spacing:-0.25pt;"> </font>or<font style="letter-spacing:-0.25pt;"> </font>minus<font style="letter-spacing:-0.25pt;"> </font>a<font style="letter-spacing:-0.25pt;"> </font>day<font style="letter-spacing:-0.25pt;"> </font>in<font style="letter-spacing:-0.25pt;"> </font>terms of costs to maintain an idle vessel, there is potential for additional cost savings by eliminating elements of a stacked fleet by either disposing our scrapping<font style="letter-spacing:-0.1pt;"> </font>them.<font style="letter-spacing:-0.1pt;"> </font>But<font style="letter-spacing:-0.1pt;"> </font>I<font style="letter-spacing:-0.1pt;"> </font>would<font style="letter-spacing:-0.1pt;"> </font>not<font style="letter-spacing:-0.1pt;"> </font>provide<font style="letter-spacing:-0.1pt;"> </font>you<font style="letter-spacing:-0.1pt;"> </font>specific<font style="letter-spacing:-0.1pt;"> </font>guidance<font style="letter-spacing:-0.1pt;"> </font>in<font style="letter-spacing:-0.1pt;"> </font>terms<font style="letter-spacing:-0.1pt;"> </font>of<font style="letter-spacing:-0.1pt;"> </font>what<font style="letter-spacing:-0.1pt;"> </font>we<font style="letter-spacing:-0.1pt;"> </font>plan<font style="letter-spacing:-0.1pt;"> </font>to<font style="letter-spacing:-0.1pt;"> </font>scrap<font style="letter-spacing:-0.1pt;"> </font>or<font style="letter-spacing:-0.1pt;"> </font>sell<font style="letter-spacing:-0.1pt;"> </font>beyond<font style="letter-spacing:-0.1pt;"> </font>the<font style="letter-spacing:-0.1pt;"> </font>18<font style="letter-spacing:-0.1pt;"> </font>that<font style="letter-spacing:-0.1pt;"> </font>we<font style="letter-spacing:-0.1pt;"> </font>have<font style="letter-spacing:-0.1pt;"> </font>already<font style="letter-spacing:-0.1pt;"> </font><a name="45._John_Eric_Deysher"></a>done year-to-date, which John mentioned in his prepared remarks.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:8.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;">John Eric Deysher <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Bertolet Capital LLC - President, Chief Compliance Officer, and Portfolio Manager</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="46._Quinn_P._Fanning"></a>Okay, fine. So it's not going to continue at that rate, it sounds like.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;">Quinn P. Fanning <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Tidewater Inc. - Executive VP &amp; CFO</font></p>
<p style="text-align:justify;margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="47._John_Eric_Deysher"></a>I<font style="letter-spacing:-0.15pt;"> </font>mean,<font style="letter-spacing:-0.15pt;"> </font>not<font style="letter-spacing:-0.15pt;"> </font>at<font style="letter-spacing:-0.15pt;"> </font>that<font style="letter-spacing:-0.15pt;"> </font>rate.<font style="letter-spacing:-0.15pt;"> </font>But<font style="letter-spacing:-0.15pt;"> </font>I<font style="letter-spacing:-0.15pt;"> </font>think<font style="letter-spacing:-0.15pt;"> </font>the<font style="letter-spacing:-0.15pt;"> </font>other<font style="letter-spacing:-0.15pt;"> </font>thing<font style="letter-spacing:-0.15pt;"> </font>I<font style="letter-spacing:-0.15pt;"> </font>would<font style="letter-spacing:-0.15pt;"> </font>point<font style="letter-spacing:-0.15pt;"> </font>out<font style="letter-spacing:-0.15pt;"> </font>is<font style="letter-spacing:-0.15pt;"> </font>as<font style="letter-spacing:-0.15pt;"> </font>we<font style="letter-spacing:-0.15pt;"> </font>have<font style="letter-spacing:-0.15pt;"> </font>disposed<font style="letter-spacing:-0.15pt;"> </font>of<font style="letter-spacing:-0.15pt;"> </font>vessels<font style="letter-spacing:-0.15pt;"> </font>in<font style="letter-spacing:-0.15pt;"> </font>the<font style="letter-spacing:-0.15pt;"> </font>stacked<font style="letter-spacing:-0.15pt;"> </font>fleet,<font style="letter-spacing:-0.15pt;"> </font>it<font style="letter-spacing:-0.15pt;"> </font>is<font style="letter-spacing:-0.15pt;"> </font>probably<font style="letter-spacing:-0.15pt;"> </font><a name="47._John_Eric_Deysher"></a>reasonable to assume that those are not the highest spec or youngest vessels. And as a result, the average quality and age of the vessels that remain idle is moving<font style="letter-spacing:-0.9pt;"> </font>up,<font style="letter-spacing:-0.9pt;"> </font>i.e.<font style="letter-spacing:-0.9pt;"> </font>it's<font style="letter-spacing:-0.9pt;"> </font>a<font style="letter-spacing:-0.9pt;"> </font>higher-quality<font style="letter-spacing:-0.9pt;"> </font>inactive<font style="letter-spacing:-0.9pt;"> </font>fleet<font style="letter-spacing:-0.9pt;"> </font>just<font style="letter-spacing:-0.9pt;"> </font>because<font style="letter-spacing:-0.9pt;"> </font>we<font style="letter-spacing:-0.9pt;"> </font>are<font style="letter-spacing:-0.9pt;"> </font>pruning<font style="letter-spacing:-0.9pt;"> </font>because<font style="letter-spacing:-0.9pt;"> </font>we<font style="letter-spacing:-0.9pt;"> </font>do<font style="letter-spacing:-0.9pt;"> </font>not<font style="letter-spacing:-0.9pt;"> </font>expect<font style="letter-spacing:-0.9pt;"> </font>to<font style="letter-spacing:-0.9pt;"> </font>return<font style="letter-spacing:-0.9pt;"> </font>to<font style="letter-spacing:-0.9pt;"> </font>service<font style="letter-spacing:-0.9pt;"> </font>in<font style="letter-spacing:-0.9pt;"> </font>our<font style="letter-spacing:-0.9pt;"> </font>fleet<font style="letter-spacing:-0.9pt;"> </font>and<font style="letter-spacing:-0.9pt;"> </font>potentially even in the oil and gas market overall.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:8.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;"><a name="48._Quinn_P._Fanning"></a>John Eric Deysher <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Bertolet Capital LLC - President, Chief Compliance Officer, and Portfolio Manager</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Got it. That makes sense. Is there two company headquarters now? Has Houston been closed? Or where is the company's headquarters right now?</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;">Quinn P. Fanning <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Tidewater Inc. - Executive VP &amp; CFO</font></p>
<p style="text-align:justify;margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="49._Operator"></a>As<font style="letter-spacing:-0.15pt;"> </font>you<font style="letter-spacing:-0.15pt;"> </font>saw<font style="letter-spacing:-0.15pt;"> </font>from<font style="letter-spacing:-0.15pt;"> </font>the<font style="letter-spacing:-0.15pt;"> </font>press<font style="letter-spacing:-0.15pt;"> </font>release<font style="letter-spacing:-0.15pt;"> </font>this<font style="letter-spacing:-0.15pt;"> </font>quarter,<font style="letter-spacing:-0.15pt;"> </font>it<font style="letter-spacing:-0.15pt;"> </font>was<font style="letter-spacing:-0.15pt;"> </font>issued<font style="letter-spacing:-0.15pt;"> </font>from<font style="letter-spacing:-0.15pt;"> </font>Houston<font style="letter-spacing:-0.15pt;"> </font>as<font style="letter-spacing:-0.15pt;"> </font>opposed<font style="letter-spacing:-0.15pt;"> </font>to<font style="letter-spacing:-0.15pt;"> </font>New<font style="letter-spacing:-0.15pt;"> </font>Orleans.<font style="letter-spacing:-0.15pt;"> </font>John<font style="letter-spacing:-0.15pt;"> </font>mentioned<font style="letter-spacing:-0.15pt;"> </font>that<font style="letter-spacing:-0.15pt;"> </font>we<font style="letter-spacing:-0.15pt;"> </font>are<font style="letter-spacing:-0.15pt;"> </font>continuing<font style="letter-spacing:-0.15pt;"> </font>to look<font style="letter-spacing:-0.1pt;"> </font>at<font style="letter-spacing:-0.1pt;"> </font>office<font style="letter-spacing:-0.1pt;"> </font>consolidation,<font style="letter-spacing:-0.1pt;"> </font>but<font style="letter-spacing:-0.1pt;"> </font>the<font style="letter-spacing:-0.1pt;"> </font>migration,<font style="letter-spacing:-0.1pt;"> </font>at<font style="letter-spacing:-0.1pt;"> </font>least<font style="letter-spacing:-0.1pt;"> </font>of<font style="letter-spacing:-0.1pt;"> </font>the<font style="letter-spacing:-0.1pt;"> </font>headquarters<font style="letter-spacing:-0.1pt;"> </font>staff,<font style="letter-spacing:-0.1pt;"> </font>is<font style="letter-spacing:-0.1pt;"> </font>toward<font style="letter-spacing:-0.1pt;"> </font>rather<font style="letter-spacing:-0.1pt;"> </font>than<font style="letter-spacing:-0.1pt;"> </font>away<font style="letter-spacing:-0.1pt;"> </font>from<font style="letter-spacing:-0.1pt;"> </font>Houston.<font style="letter-spacing:-0.1pt;"> </font>So<font style="letter-spacing:-0.1pt;"> </font>we<font style="letter-spacing:-0.1pt;"> </font>would<font style="letter-spacing:-0.1pt;"> </font>expect<font style="letter-spacing:-0.1pt;"> </font>to be downsizing and, if not, ultimately closing the New Orleans operation.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:8.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;"><a name="50._Turner_Holm"></a>Operator</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our next question is from Turner Holm from Clarksons Platou.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;">Turner Holm <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Clarksons Platou Securities AS, Research Division - Director</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Hey, guys, my additional questions were asked and answered, so anything else, I will just take off line. So yes, good luck in 2018. Thank you.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
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<p style="margin-bottom:4pt;margin-top:4pt;margin-left:4pt;;margin-right:0.73%;text-indent:0pt;;font-family:Times New Roman;font-size:12pt;">&nbsp;</p></td>
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<p style="margin-bottom:4pt;margin-top:4pt;margin-left:4pt;;margin-right:0.73%;text-indent:0pt;;color:#FFFFFF;font-size:12pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">MARCH<font style="letter-spacing:-0.75pt;"> </font>15,<font style="letter-spacing:-0.75pt;"> </font>2018<font style="letter-spacing:-0.75pt;"> </font>/<font style="letter-spacing:-0.75pt;"> </font>3:00PM,<font style="letter-spacing:-0.75pt;"> </font>TDW<font style="letter-spacing:-0.75pt;"> </font>-<font style="letter-spacing:-0.75pt;"> </font>Tidewater<font style="letter-spacing:-0.75pt;"> </font>Inc.<font style="letter-spacing:-0.75pt;"> </font>Earnings<font style="letter-spacing:-0.75pt;"> </font>Call<font style="letter-spacing:-0.75pt;"> </font>for<font style="letter-spacing:-0.75pt;"> </font>the<font style="letter-spacing:-0.75pt;"> </font>Three<font style="letter-spacing:-0.75pt;"> </font>Months<font style="letter-spacing:-0.75pt;"> </font>Ended<font style="letter-spacing:-0.75pt;"> </font>December<font style="letter-spacing:-0.75pt;"> </font>31,<font style="letter-spacing:-0.75pt;"> </font>2017 and<font style="letter-spacing:-0.25pt;"> </font>the<font style="letter-spacing:-0.25pt;"> </font>Nine<font style="letter-spacing:-0.25pt;"> </font>Month<font style="letter-spacing:-0.25pt;"> </font>Transition<font style="letter-spacing:-0.25pt;"> </font>Period<font style="letter-spacing:-0.25pt;"> </font>from<font style="letter-spacing:-0.25pt;"> </font>April<font style="letter-spacing:-0.25pt;"> </font>1,<font style="letter-spacing:-0.25pt;"> </font>2017<font style="letter-spacing:-0.25pt;"> </font>through<font style="letter-spacing:-0.25pt;"> </font>December<font style="letter-spacing:-0.25pt;"> </font>31,<font style="letter-spacing:-0.25pt;"> </font>2017</p></td>
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<p style="margin-bottom:4pt;margin-top:4pt;margin-left:4pt;;margin-right:0.73%;text-indent:0pt;;font-family:Times New Roman;font-size:12pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:3pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;"><a name="51._Jeffrey_A._Gorski"></a>Jeffrey A. Gorski <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Tidewater Inc. - Executive VP &amp; COO</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Thanks Turner.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;"><a name="52._John_T._Rynd"></a>John T. Rynd <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Tidewater Inc. - President, CEO &amp; Director</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Thank you.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;"><a name="53._Operator"></a>Operator</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="54._John_T._Rynd"></a>(Operator Instructions) And there are no further questions at this time.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;">John T. Rynd <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Tidewater Inc. - President, CEO &amp; Director</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="55._Jason_Stanley"></a>Okay. We appreciate everybody's interest in Tidewater, and we will stay tuned for 2018 as it develops.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;">Jason Stanley</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="56._John_T._Rynd"></a>Yes, thank you for your time.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;">John T. Rynd <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Tidewater Inc. - President, CEO &amp; Director</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="57._Operator"></a>Thank you.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:3.5pt;">&nbsp;</p>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;">Operator</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="Disclaimer"></a>Thank you, ladies and gentlemen. That concludes today's conference. Thank you for participating, and you may now disconnect.</p>
<p style="margin-top:0pt;border-bottom:Solid 0.75pt #003399;padding-bottom:1pt;margin-bottom:0pt;margin-left:0.91%;margin-right:0.91%;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
