<SEC-DOCUMENT>0001564590-18-022031.txt : 20180820
<SEC-HEADER>0001564590-18-022031.hdr.sgml : 20180820
<ACCEPTANCE-DATETIME>20180820161405
ACCESSION NUMBER:		0001564590-18-022031
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20180814
ITEM INFORMATION:		Regulation FD Disclosure
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20180820
DATE AS OF CHANGE:		20180820

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:		181028384

	BUSINESS ADDRESS:	
		STREET 1:		6002 ROGERDALE ROAD
		STREET 2:		SUITE 600
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77072
		BUSINESS PHONE:		7134705300

	MAIL ADDRESS:	
		STREET 1:		6002 ROGERDALE ROAD
		STREET 2:		SUITE 600
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77072

	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_20180814.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;">August 14, 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%;">
<tr>
<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>
<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;">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%;">
<tr>
<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>
<div align="left">
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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>
<div align="left">
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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</a></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-family:Times New Roman;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;letter-spacing:-0.1pt;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 ability of the company to complete the proposed transaction with GulfMark Offshore, Inc. (the &#8220;proposed merger&#8221;) on the anticipated terms and timetable, if at all; the ability to obtain shareholder and government approval of the proposed merger; the ability to satisfy various other conditions to the closing of the transaction; the risk that the cost savings and any other synergies from the transaction may not be fully realized or may take longer to realize than expected; disruption from the transaction making it more difficult to maintain relationships with customers, employees or suppliers; the possibility of litigation (related to the proposed merger); the diversion of management&#8217;s time from day-to-day operations by the proposed merger; the difficulty attracting, motivating and retaining executives and other employees with the proposed merger pending; restrictions on the conduct of business pursuant to the merger agreement; incurrence of substantial transaction-related costs; new accounting policies and our consolidation activities; 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; fleet additions by competitors and industry overcapacity; our&#160;limited capital resources available to replenish our asset base, including through acquisitions or vessel construction, and to fund our capital expenditure needs; uncertainty of global financial market conditions and potential constraints in accessing capital or credit if and when needed with favorable terms, if at all; changes in decisions and capital spending by customers in the energy industry and the industry expectations for offshore exploration, field development and production; consolidation of our customer base; 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; the continued availability of qualified personnel and our ability to attract and retain them; the operating risks normally incident to our lines of business, including the potential impact of liquidated counterparties; our ability to comply with covenants in our indentures and other debt instruments; 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></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 August 14, 2018 analyst conference call discussing its financial results for the three months ended June 30, 2018.&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="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;"><br /></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</a></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-size:11pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU3"></a><font style="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</font><font style="font-size:11pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> 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 Co</font><font style="font-size:11pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">mpany&#8217;s website) and the Company&#8217;s SEC filings before making any investment or other decisions.</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-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 Exhibits.</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>
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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_6.htm"><font style="text-decoration:underline;">Transcript from the August 14, 2018 analyst conference call.</font></a></p></td></tr></table></div>
<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;">3</a></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: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;;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;;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;;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: August 20, 2018</p>
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<TYPE>EX-99.1
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<FILENAME>tdw-ex991_6.htm
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<p style="margin-top:65pt;line-height:21pt;margin-bottom:0pt;margin-left:23pt;;text-indent:0pt;;color:#BCBEBF;font-size:18pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">THOMSON REUTERS STREETEVENTS</p>
<p style="line-height:35pt;margin-bottom:0pt;margin-top:0pt;margin-left:23pt;;text-indent:0pt;;color:#FFFFFF;font-size:32pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">EDITED TRANSCRIPT</p>
<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 &#8211; Q2 2018 Tidewater Inc Earnings Call<font style="letter-spacing:-1.55pt;"> </font></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: AUGUST 14, 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 three months ended 06/30/18 revenues of $106m and net loss of $10.9m or $0.44 per common share.</p>
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<p style="margin-top:0pt;margin-bottom:0pt;margin-left:0.18%;text-indent:0%;color:#FFFFFF;font-size:12pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">AUGUST 14, 2018 / 3:00PM, TDW &#8211; Q2 2018 Tidewater Inc Earnings Call</p>
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<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="John_T._Rynd_(8_Turns)"></a>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="#bookmark0"><font style="font-weight:bold;font-size:9pt;font-family:Myriad Pro;">Jason Stanley </font></a><font style="font-style:italic;font-family:Calibri;font-size:9pt;">Tidewater Inc. - Director of IR</font></p><a name="Quinn_P._Fanning_(8_Turns)"></a>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="#bookmark1"><font style="font-weight:bold;font-size:9pt;font-family:Myriad Pro;">John T. Rynd </font></a><font style="font-style:italic;font-family:Calibri;font-size:9pt;">Tidewater Inc. - President, CEO &amp; Director</font></p><a name="Conference_Call_Participants"></a>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="#bookmark2"><font style="font-weight:bold;font-size:9pt;font-family:Myriad Pro;">Quinn P. Fanning </font></a><font style="font-style:italic;font-family:Calibri;font-size:9pt;">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:14pt;">&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="Ceki_Aluf_Medina_(3_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="Joseph_Donough_Gibney_(3_Turns)"></a><a name="Turner_Holm_(3_Turns)"></a>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="#bookmark4"><font style="font-weight:bold;font-size:9pt;font-family:Myriad Pro;">Ceki Aluf Medina </font></a><font style="font-style:italic;font-family:Calibri;font-size:9pt;">Southpaw Asset Management, LP - Partner and MD</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">Joseph Donough Gibney </a><font style="font-style:italic;font-family:Calibri;font-weight:normal;">Capital One Securities, Inc., Research Division - Senior Analyst</font></p><a name="PRESENTATION"></a>
<p style="margin-top:5pt;margin-bottom:0pt;margin-left:0.91%;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="#bookmark3"><font style="font-weight:bold;font-size:9pt;font-family:Myriad Pro;">Turner Holm </font></a><font style="font-style:italic;font-family:Calibri;font-size:9pt;">Clarksons Platou Securities AS, Research Division - Director</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: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;">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="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;">Welcome to Tidewater's 2018 Second Quarter Earnings Conference Call. My name is Paulette, and I will be your operator for today's call. (Operator Instructions)</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>Please note that this conference is being recorded. I will now turn the call over to Jason Stanley. You may begin.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></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 <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Tidewater Inc. - Director of IR</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<font style="letter-spacing:-0.25pt;"> </font>you,<font style="letter-spacing:-0.25pt;"> </font>Paulette.<font style="letter-spacing:-0.25pt;"> </font>Good<font style="letter-spacing:-0.25pt;"> </font>morning,<font style="letter-spacing:-0.25pt;"> </font>everyone,<font style="letter-spacing:-0.25pt;"> </font>and<font style="letter-spacing:-0.25pt;"> </font>welcome<font style="letter-spacing:-0.25pt;"> </font>to<font style="letter-spacing:-0.25pt;"> </font>Tidewater's<font style="letter-spacing:-0.25pt;"> </font>earnings<font style="letter-spacing:-0.25pt;"> </font>conference<font style="letter-spacing:-0.25pt;"> </font>call<font style="letter-spacing:-0.25pt;"> </font>for<font style="letter-spacing:-0.25pt;"> </font>the<font style="letter-spacing:-0.25pt;"> </font>period<font style="letter-spacing:-0.25pt;"> </font>ended<font style="letter-spacing:-0.25pt;"> </font>June<font style="letter-spacing:-0.25pt;"> </font>30,<font style="letter-spacing:-0.25pt;"> </font>2018.<font style="letter-spacing:-0.25pt;"> </font>I'm<font style="letter-spacing:-0.25pt;"> </font>Jason Stanley, Tidewater's Director, Investor Relations, and I'd like to thank you for your time and interest in 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%;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>me<font style="letter-spacing:-0.25pt;"> </font>this<font style="letter-spacing:-0.25pt;"> </font>morning<font style="letter-spacing:-0.25pt;"> </font>on<font style="letter-spacing:-0.25pt;"> </font>the<font style="letter-spacing:-0.25pt;"> </font>call<font style="letter-spacing:-0.25pt;"> </font>are<font style="letter-spacing:-0.25pt;"> </font>our<font style="letter-spacing:-0.25pt;"> </font>President<font style="letter-spacing:-0.25pt;"> </font>and<font style="letter-spacing:-0.25pt;"> </font>CEO,<font style="letter-spacing:-0.25pt;"> </font>John<font style="letter-spacing:-0.25pt;"> </font>Rynd;<font style="letter-spacing:-0.25pt;"> </font>Quinn<font style="letter-spacing:-0.25pt;"> </font>Fanning,<font style="letter-spacing:-0.25pt;"> </font>our<font style="letter-spacing:-0.25pt;"> </font>Chief<font style="letter-spacing:-0.25pt;"> </font>Financial<font style="letter-spacing:-0.25pt;"> </font>Officer;<font style="letter-spacing:-0.25pt;"> </font>Jeff<font style="letter-spacing:-0.25pt;"> </font>Gorski,<font style="letter-spacing:-0.25pt;"> </font>our<font style="letter-spacing:-0.25pt;"> </font>Chief<font style="letter-spacing:-0.25pt;"> </font>Operating Officer; and Bruce 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:-0.25pt;"> </font>a<font style="letter-spacing:-0.25pt;"> </font>few<font style="letter-spacing:-0.25pt;"> </font>formalities,<font style="letter-spacing:-0.25pt;"> </font>I'll<font style="letter-spacing:-0.25pt;"> </font>turn<font style="letter-spacing:-0.25pt;"> </font>the<font style="letter-spacing:-0.25pt;"> </font>call<font style="letter-spacing:-0.25pt;"> </font>over<font style="letter-spacing:-0.25pt;"> </font>to<font style="letter-spacing:-0.25pt;"> </font>John<font style="letter-spacing:-0.25pt;"> </font>for<font style="letter-spacing:-0.25pt;"> </font>his<font style="letter-spacing:-0.25pt;"> </font>initial<font style="letter-spacing:-0.25pt;"> </font>comments,<font style="letter-spacing:-0.25pt;"> </font>to<font style="letter-spacing:-0.25pt;"> </font>be<font style="letter-spacing:-0.25pt;"> </font>followed<font style="letter-spacing:-0.25pt;"> </font>by<font style="letter-spacing:-0.25pt;"> </font>Quinn's<font style="letter-spacing:-0.25pt;"> </font>financial<font style="letter-spacing:-0.25pt;"> </font>review.<font style="letter-spacing:-0.25pt;"> </font>John<font style="letter-spacing:-0.25pt;"> </font>will<font style="letter-spacing:-0.25pt;"> </font>then<font style="letter-spacing:-0.25pt;"> </font>provide some final wrap-up comments, and we'll then open the call for your questions.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:10pt;">&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. There are risks, uncertainties and other factors that may cause the company's actual future performance to be materially different from that stated or implied by any comment that we make during today's conference call. Please refer to our most recent Form 10-Q for additional details on these risk factors. This document is available on our website.</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 last evening's 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;">Finally, while we're continuing to plan for the integration of GulfMark, our comments related to the transaction will be limited to our prepared remarks. If there are updates related to the deal, we'll announce them broadly.</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-top:0pt;margin-bottom: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%;color:#FFFFFF;font-size:12pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">
<p style="margin-top:0pt;margin-bottom:0pt;margin-left:0.18%;text-indent:0%;color:#FFFFFF;font-size:12pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">AUGUST 14, 2018 / 3:00PM, TDW &#8211; Q2 2018 Tidewater Inc Earnings Call</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>&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><a name="_AEIOULastRenderedPageBreakAEIOU2"></a><font style="font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;">John T. Rynd </font><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. For the second quarter of 2018, we reported a net loss of $10.9 million or $0.44 per common share, on revenues of approximately $106 million. EBITDA for the quarter ended June 30 was $16.2 million, which<font style="letter-spacing:-0.5pt;"> </font>includes<font style="letter-spacing:-0.5pt;"> </font>$3.2<font style="letter-spacing:-0.5pt;"> </font>million<font style="letter-spacing:-0.5pt;"> </font>of<font style="letter-spacing:-0.5pt;"> </font>stock-based<font style="letter-spacing:-0.5pt;"> </font>compensation<font style="letter-spacing:-0.5pt;"> </font>expense,<font style="letter-spacing:-0.5pt;"> </font>$6.8<font style="letter-spacing:-0.5pt;"> </font>million<font style="letter-spacing:-0.5pt;"> </font>of<font style="letter-spacing:-0.5pt;"> </font>foreign<font style="letter-spacing:-0.5pt;"> </font>exchange<font style="letter-spacing:-0.5pt;"> </font>losses,<font style="letter-spacing:-0.5pt;"> </font>$1.5<font style="letter-spacing:-0.5pt;"> </font>million<font style="letter-spacing:-0.5pt;"> </font>of<font style="letter-spacing:-0.5pt;"> </font>professional<font style="letter-spacing:-0.5pt;"> </font>service<font style="letter-spacing:-0.5pt;"> </font>costs related to our proposed combination with GulfMark, and $4.9 million of dividend income related to our Angolan joint venture.</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;">In a few minutes, Quinn will discuss our financial results in more detail.</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;">Strong<font style="letter-spacing:-0.3pt;"> </font>execution<font style="letter-spacing:-0.3pt;"> </font>by<font style="letter-spacing:-0.3pt;"> </font>our<font style="letter-spacing:-0.3pt;"> </font>team<font style="letter-spacing:-0.3pt;"> </font>in<font style="letter-spacing:-0.3pt;"> </font>the<font style="letter-spacing:-0.3pt;"> </font>June<font style="letter-spacing:-0.3pt;"> </font>quarter<font style="letter-spacing:-0.3pt;"> </font>as<font style="letter-spacing:-0.3pt;"> </font>reflected<font style="letter-spacing:-0.3pt;"> </font>by<font style="letter-spacing:-0.3pt;"> </font>industry-leading<font style="letter-spacing:-0.3pt;"> </font>safety<font style="letter-spacing:-0.3pt;"> </font>and<font style="letter-spacing:-0.3pt;"> </font>similar<font style="letter-spacing:-0.3pt;"> </font>metrics<font style="letter-spacing:-0.3pt;"> </font>and<font style="letter-spacing:-0.3pt;"> </font>positive<font style="letter-spacing:-0.3pt;"> </font>quarter-to-quarter<font style="letter-spacing:-0.3pt;"> </font>trends in active and overall utilization, vessel revenues and vessel operating margin, all contributed to better results relative to the March quarter.</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:-0.1pt;"> </font>I<font style="letter-spacing:-0.1pt;"> </font>stated<font style="letter-spacing:-0.1pt;"> </font>on<font style="letter-spacing:-0.1pt;"> </font>our<font style="letter-spacing:-0.1pt;"> </font>last<font style="letter-spacing:-0.1pt;"> </font>earnings<font style="letter-spacing:-0.1pt;"> </font>conference<font style="letter-spacing:-0.1pt;"> </font>call<font style="letter-spacing:-0.1pt;"> </font>and<font style="letter-spacing:-0.1pt;"> </font>as<font style="letter-spacing:-0.1pt;"> </font>demonstrated<font style="letter-spacing:-0.1pt;"> </font>by<font style="letter-spacing:-0.1pt;"> </font>our<font style="letter-spacing:-0.1pt;"> </font>results<font style="letter-spacing:-0.1pt;"> </font>in<font style="letter-spacing:-0.1pt;"> </font>the<font style="letter-spacing:-0.1pt;"> </font>June<font style="letter-spacing:-0.1pt;"> </font>quarter,<font style="letter-spacing:-0.1pt;"> </font>we<font style="letter-spacing:-0.1pt;"> </font>continue<font style="letter-spacing:-0.1pt;"> </font>to<font style="letter-spacing:-0.1pt;"> </font>feel<font style="letter-spacing:-0.1pt;"> </font>we<font style="letter-spacing:-0.1pt;"> </font>may<font style="letter-spacing:-0.1pt;"> </font>be<font style="letter-spacing:-0.1pt;"> </font>in<font style="letter-spacing:-0.1pt;"> </font>the<font style="letter-spacing:-0.1pt;"> </font>early stages of a market recovery. Commodity prices and service pricing remain constructive, which we believe will provide a helpful backdrop as key customers kick off their annual budgeting process this fall and begin to determine the 2019 offshore spending plans.</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:-0.3pt;"> </font>recent<font style="letter-spacing:-0.3pt;"> </font>months,<font style="letter-spacing:-0.3pt;"> </font>the<font style="letter-spacing:-0.3pt;"> </font>working<font style="letter-spacing:-0.3pt;"> </font>offshore<font style="letter-spacing:-0.3pt;"> </font>rig<font style="letter-spacing:-0.3pt;"> </font>count<font style="letter-spacing:-0.3pt;"> </font>has<font style="letter-spacing:-0.3pt;"> </font>generally<font style="letter-spacing:-0.3pt;"> </font>been<font style="letter-spacing:-0.3pt;"> </font>trending<font style="letter-spacing:-0.3pt;"> </font>in<font style="letter-spacing:-0.3pt;"> </font>a<font style="letter-spacing:-0.3pt;"> </font>positive<font style="letter-spacing:-0.3pt;"> </font>direction<font style="letter-spacing:-0.3pt;"> </font>and<font style="letter-spacing:-0.3pt;"> </font>recent<font style="letter-spacing:-0.3pt;"> </font>contract<font style="letter-spacing:-0.3pt;"> </font>awards,<font style="letter-spacing:-0.3pt;"> </font>tendering<font style="letter-spacing:-0.3pt;"> </font>activity and customer dialogue all point to higher demand for offshore capital equipment, including rigs, OSVs and FPSOs</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;">The overall OSV market, however, remains highly fragmented and it continues to be burdened, at least on paper, by excess capacity. With few exceptions, OSVs owners' balance sheets are stressed, industry-wide costs are too high and access to capital is very limited.</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;">At<font style="letter-spacing:-0.1pt;"> </font>Tidewater,<font style="letter-spacing:-0.1pt;"> </font>our<font style="letter-spacing:-0.1pt;"> </font>progress<font style="letter-spacing:-0.1pt;"> </font>in<font style="letter-spacing:-0.1pt;"> </font>rightsizing<font style="letter-spacing:-0.1pt;"> </font>our<font style="letter-spacing:-0.1pt;"> </font>business<font style="letter-spacing:-0.1pt;"> </font>and<font style="letter-spacing:-0.1pt;"> </font>balance<font style="letter-spacing:-0.1pt;"> </font>sheet<font style="letter-spacing:-0.1pt;"> </font>has<font style="letter-spacing:-0.1pt;"> </font>prepared<font style="letter-spacing:-0.1pt;"> </font>the<font style="letter-spacing:-0.1pt;"> </font>company<font style="letter-spacing:-0.1pt;"> </font>to<font style="letter-spacing:-0.1pt;"> </font>successfully<font style="letter-spacing:-0.1pt;"> </font>manage<font style="letter-spacing:-0.1pt;"> </font>through<font style="letter-spacing:-0.1pt;"> </font>the<font style="letter-spacing:-0.1pt;"> </font>ongoing challenges of the OSV business and to be in a good position to respond as opportunities and market conditions warrant. Our fleet is young, our operating footprint is the broadest in the business and our financial position, both in regard to leverage and liquidity, is strong.</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 at our operating results by segment, recent awards in Eastern Canada and Mexico, as well as a more robust seasonal spot market in the Gulf of Mexico, drove quarter-to-quarter improvements in vessel utilization and average day rates in our Americas segment.</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<font style="letter-spacing:-0.6pt;"> </font>revenue<font style="letter-spacing:-0.6pt;"> </font>in<font style="letter-spacing:-0.6pt;"> </font>the<font style="letter-spacing:-0.6pt;"> </font>Americas<font style="letter-spacing:-0.6pt;"> </font>segment<font style="letter-spacing:-0.6pt;"> </font>was<font style="letter-spacing:-0.6pt;"> </font>up<font style="letter-spacing:-0.6pt;"> </font>approximately<font style="letter-spacing:-0.6pt;"> </font>$6.5<font style="letter-spacing:-0.6pt;"> </font>million<font style="letter-spacing:-0.6pt;"> </font>or<font style="letter-spacing:-0.6pt;"> </font>about<font style="letter-spacing:-0.6pt;"> </font>25%<font style="letter-spacing:-0.6pt;"> </font>quarter-to-quarter, and average<font style="letter-spacing:-0.6pt;"> </font>active<font style="letter-spacing:-0.6pt;"> </font>vessels<font style="letter-spacing:-0.6pt;"> </font>in<font style="letter-spacing:-0.6pt;"> </font>the<font style="letter-spacing:-0.6pt;"> </font>Americas segment were comparable in the June and March quarters; however, active vessel utilization at 82% was up approximately 7 percentage points quarter-to-quarter, and average day rates, at approximately $16,000 per day, were up about 10% quarter-to-quarter.</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:-0.1pt;"> </font>to<font style="letter-spacing:-0.1pt;"> </font>our<font style="letter-spacing:-0.1pt;"> </font>near-term<font style="letter-spacing:-0.1pt;"> </font>outlook,<font style="letter-spacing:-0.1pt;"> </font>average<font style="letter-spacing:-0.1pt;"> </font>active<font style="letter-spacing:-0.1pt;"> </font>vessels<font style="letter-spacing:-0.1pt;"> </font>and<font style="letter-spacing:-0.1pt;"> </font>active<font style="letter-spacing:-0.1pt;"> </font>utilization<font style="letter-spacing:-0.1pt;"> </font>should<font style="letter-spacing:-0.1pt;"> </font>remain<font style="letter-spacing:-0.1pt;"> </font>relatively<font style="letter-spacing:-0.1pt;"> </font>stable<font style="letter-spacing:-0.1pt;"> </font>in<font style="letter-spacing:-0.1pt;"> </font>the<font style="letter-spacing:-0.1pt;"> </font>Americas<font style="letter-spacing:-0.1pt;"> </font>segment,<font style="letter-spacing:-0.1pt;"> </font>but<font style="letter-spacing:-0.1pt;"> </font>the<font style="letter-spacing:-0.1pt;"> </font>rates<font style="letter-spacing:-0.1pt;"> </font>in Mexico, in particular, remain under pressure.</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;">Overall, vessel revenue for the Americas segment in the September quarter is expected to be down a couple of million dollars, again reflecting high<font style="letter-spacing:-0.45pt;"> </font>and<font style="letter-spacing:-0.45pt;"> </font>stable<font style="letter-spacing:-0.45pt;"> </font>active<font style="letter-spacing:-0.45pt;"> </font>utilization,<font style="letter-spacing:-0.45pt;"> </font>but<font style="letter-spacing:-0.45pt;"> </font>generally<font style="letter-spacing:-0.45pt;"> </font>lower<font style="letter-spacing:-0.45pt;"> </font>average<font style="letter-spacing:-0.45pt;"> </font>day<font style="letter-spacing:-0.45pt;"> </font>rates,<font style="letter-spacing:-0.45pt;"> </font>with<font style="letter-spacing:-0.45pt;"> </font>Mexico<font style="letter-spacing:-0.45pt;"> </font>being<font style="letter-spacing:-0.45pt;"> </font>the<font style="letter-spacing:-0.45pt;"> </font>most<font style="letter-spacing:-0.45pt;"> </font>significant<font style="letter-spacing:-0.45pt;"> </font>near-term<font style="letter-spacing:-0.45pt;"> </font>driver<font style="letter-spacing:-0.45pt;"> </font>in<font style="letter-spacing:-0.45pt;"> </font>regards<font style="letter-spacing:-0.45pt;"> </font>to<font style="letter-spacing:-0.45pt;"> </font>rates.</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;">Activity<font style="letter-spacing:-0.55pt;"> </font>in<font style="letter-spacing:-0.55pt;"> </font>the<font style="letter-spacing:-0.55pt;"> </font>North<font style="letter-spacing:-0.55pt;"> </font>Sea<font style="letter-spacing:-0.55pt;"> </font>increased<font style="letter-spacing:-0.55pt;"> </font>in<font style="letter-spacing:-0.55pt;"> </font>the<font style="letter-spacing:-0.55pt;"> </font>quarter<font style="letter-spacing:-0.55pt;"> </font>as<font style="letter-spacing:-0.55pt;"> </font>anticipated,<font style="letter-spacing:-0.55pt;"> </font>resulting<font style="letter-spacing:-0.55pt;"> </font>in<font style="letter-spacing:-0.55pt;"> </font>improved<font style="letter-spacing:-0.55pt;"> </font>utilization<font style="letter-spacing:-0.55pt;"> </font>as<font style="letter-spacing:-0.55pt;"> </font>we<font style="letter-spacing:-0.55pt;"> </font>began<font style="letter-spacing:-0.55pt;"> </font>the<font style="letter-spacing:-0.55pt;"> </font>typically<font style="letter-spacing:-0.55pt;"> </font>stronger<font style="letter-spacing:-0.55pt;"> </font>summer<font style="letter-spacing:-0.55pt;"> </font>drilling season;<font style="letter-spacing:-0.1pt;"> </font>however,<font style="letter-spacing:-0.1pt;"> </font>as<font style="letter-spacing:-0.1pt;"> </font>best<font style="letter-spacing:-0.1pt;"> </font>as<font style="letter-spacing:-0.1pt;"> </font>we<font style="letter-spacing:-0.1pt;"> </font>can<font style="letter-spacing:-0.1pt;"> </font>tell,<font style="letter-spacing:-0.1pt;"> </font>the<font style="letter-spacing:-0.1pt;"> </font>OSV<font style="letter-spacing:-0.1pt;"> </font>industry<font style="letter-spacing:-0.1pt;"> </font>only<font style="letter-spacing:-0.1pt;"> </font>saw<font style="letter-spacing:-0.1pt;"> </font>modest<font style="letter-spacing:-0.1pt;"> </font>increases<font style="letter-spacing:-0.1pt;"> </font>in<font style="letter-spacing:-0.1pt;"> </font>average<font style="letter-spacing:-0.1pt;"> </font>North<font style="letter-spacing:-0.1pt;"> </font>Sea<font style="letter-spacing:-0.1pt;"> </font>day<font style="letter-spacing:-0.1pt;"> </font>rates<font style="letter-spacing:-0.1pt;"> </font>year-to-date,<font style="letter-spacing:-0.1pt;"> </font>in<font style="letter-spacing:-0.1pt;"> </font>large<font style="letter-spacing:-0.1pt;"> </font>part<font style="letter-spacing:-0.1pt;"> </font>due to an overall increase in available supply. By our count, during the January to June period, 22 previously stacked vessels were reactivated and 18 vessels returned to the North Sea from other regions.</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;">Net of 6 vessels that left traditional North Sea region, the active North Sea fleet increased by 34 vessels, or approximately 20% year-to-date. Tidewater's<font style="letter-spacing:-0.35pt;"> </font>active<font style="letter-spacing:-0.35pt;"> </font>vessels<font style="letter-spacing:-0.35pt;"> </font>in<font style="letter-spacing:-0.35pt;"> </font>North<font style="letter-spacing:-0.35pt;"> </font>Sea<font style="letter-spacing:-0.35pt;"> </font>found<font style="letter-spacing:-0.35pt;"> </font>relatively<font style="letter-spacing:-0.35pt;"> </font>consistent<font style="letter-spacing:-0.35pt;"> </font>employment<font style="letter-spacing:-0.35pt;"> </font>in<font style="letter-spacing:-0.35pt;"> </font>the<font style="letter-spacing:-0.35pt;"> </font>June<font style="letter-spacing:-0.35pt;"> </font>quarter,<font style="letter-spacing:-0.35pt;"> </font>but<font style="letter-spacing:-0.35pt;"> </font>again,<font style="letter-spacing:-0.35pt;"> </font>incremental<font style="letter-spacing:-0.35pt;"> </font>available<font style="letter-spacing:-0.35pt;"> </font>supply<font style="letter-spacing:-0.35pt;"> </font>limited the quarter-to-quarter improvement in average day rates to just about $1,000 per day, or approximately 11% during the June quarter. Utilization of our active North Sea fleets should remain strong through the third quarter, and, we remain optimistic that we will see reasonable, i.e., a couple thousand dollars or 15% to 20%, quarter-to-quarter improvement in average day rates in the September quarter.</p>
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<p style="margin-top:0pt;margin-bottom: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%;color:#FFFFFF;font-size:12pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">
<p style="margin-top:0pt;margin-bottom:0pt;margin-left:0.18%;text-indent:0%;color:#FFFFFF;font-size:12pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">AUGUST 14, 2018 / 3:00PM, TDW &#8211; Q2 2018 Tidewater Inc Earnings Call</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>&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 name="_AEIOULastRenderedPageBreakAEIOU3"></a><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In</font><font style="letter-spacing:-0.6pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</font><font style="letter-spacing:-0.6pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Medite</font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">rranean</font><font style="letter-spacing:-0.6pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Sea,</font><font style="letter-spacing:-0.6pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our</font><font style="letter-spacing:-0.6pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">active</font><font style="letter-spacing:-0.6pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">vessel</font><font style="letter-spacing:-0.6pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">count</font><font style="letter-spacing:-0.6pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">was</font><font style="letter-spacing:-0.6pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">up</font><font style="letter-spacing:-0.6pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">a</font><font style="letter-spacing:-0.6pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">couple</font><font style="letter-spacing:-0.6pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of</font><font style="letter-spacing:-0.6pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">vessels</font><font style="letter-spacing:-0.6pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">quarter-to-quarter,</font><font style="letter-spacing:-0.6pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and</font><font style="letter-spacing:-0.6pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</font><font style="letter-spacing:-0.6pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">quarter-to-quarter</font><font style="letter-spacing:-0.6pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">trend</font><font style="letter-spacing:-0.6pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in</font><font style="letter-spacing:-0.6pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">active</font><font style="letter-spacing:-0.6pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">utilization was</font><font style="letter-spacing:-0.4pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">also</font><font style="letter-spacing:-0.4pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">positive.</font><font style="letter-spacing:-0.4pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Average</font><font style="letter-spacing:-0.4pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">active</font><font style="letter-spacing:-0.4pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">vessels,</font><font style="letter-spacing:-0.4pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">average</font><font style="letter-spacing:-0.4pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">day</font><font style="letter-spacing:-0.4pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">rates</font><font style="letter-spacing:-0.4pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and</font><font style="letter-spacing:-0.4pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</font><font style="letter-spacing:-0.4pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">utilization</font><font style="letter-spacing:-0.4pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of</font><font style="letter-spacing:-0.4pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our</font><font style="letter-spacing:-0.4pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">active</font><font style="letter-spacing:-0.4pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">fleet</font><font style="letter-spacing:-0.4pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in</font><font style="letter-spacing:-0.4pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</font><font style="letter-spacing:-0.4pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Med</font><font style="letter-spacing:-0.4pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">should</font><font style="letter-spacing:-0.4pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">remain</font><font style="letter-spacing:-0.4pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">relatively</font><font style="letter-spacing:-0.4pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">stable</font><font style="letter-spacing:-0.4pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">through the September quarter.</font></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;">Overall, active vessels and active vessel utilization in the Europe/Mediterranean Sea segment should also be relatively stable in the September quarter<font style="letter-spacing:-0.35pt;"> </font>relative<font style="letter-spacing:-0.35pt;"> </font>to<font style="letter-spacing:-0.35pt;"> </font>the<font style="letter-spacing:-0.35pt;"> </font>June<font style="letter-spacing:-0.35pt;"> </font>quarter.<font style="letter-spacing:-0.35pt;"> </font>Average<font style="letter-spacing:-0.35pt;"> </font>day<font style="letter-spacing:-0.35pt;"> </font>rates<font style="letter-spacing:-0.35pt;"> </font>are<font style="letter-spacing:-0.35pt;"> </font>expected<font style="letter-spacing:-0.35pt;"> </font>to<font style="letter-spacing:-0.35pt;"> </font>be<font style="letter-spacing:-0.35pt;"> </font>up<font style="letter-spacing:-0.35pt;"> </font>plus<font style="letter-spacing:-0.35pt;"> </font>or<font style="letter-spacing:-0.35pt;"> </font>minus<font style="letter-spacing:-0.35pt;"> </font>about<font style="letter-spacing:-0.35pt;"> </font>5%<font style="letter-spacing:-0.35pt;"> </font>quarter-to-quarter<font style="letter-spacing:-0.35pt;"> </font>and<font style="letter-spacing:-0.35pt;"> </font>vessel<font style="letter-spacing:-0.35pt;"> </font>revenue<font style="letter-spacing:-0.35pt;"> </font>should be flat, to up modestly, in the September quarter relative to the June quarter, with the benefit of the higher average day rates in the North Sea somewhat offset by modestly lower average day rates and scheduled repairs in regards to vessels operating in the Med.</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;">Moving<font style="letter-spacing:-1.05pt;"> </font>to<font style="letter-spacing:-1.05pt;"> </font>our<font style="letter-spacing:-1.05pt;"> </font>operations<font style="letter-spacing:-1.05pt;"> </font>in<font style="letter-spacing:-1.05pt;"> </font>West<font style="letter-spacing:-1.05pt;"> </font>Africa,<font style="letter-spacing:-1.05pt;"> </font>utilization,<font style="letter-spacing:-1.05pt;"> </font>at<font style="letter-spacing:-1.05pt;"> </font>approximately<font style="letter-spacing:-1.05pt;"> </font>80%,<font style="letter-spacing:-1.05pt;"> </font>in<font style="letter-spacing:-1.05pt;"> </font>the<font style="letter-spacing:-1.05pt;"> </font>June<font style="letter-spacing:-1.05pt;"> </font>quarter,<font style="letter-spacing:-1.05pt;"> </font>was<font style="letter-spacing:-1.05pt;"> </font>up<font style="letter-spacing:-1.05pt;"> </font>almost<font style="letter-spacing:-1.05pt;"> </font>7<font style="letter-spacing:-1.05pt;"> </font>percentage<font style="letter-spacing:-1.05pt;"> </font>points<font style="letter-spacing:-1.05pt;"> </font>quarter-to-quarter, but average day rates, at approximately $9,000 per day, were down approximately 5% quarter-to-quarter.</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 for the West Africa segment was up a couple of million dollars quarter-to-quarter, largely reflecting relative stability in Angola, a modest improvement in average day rates in Nigeria and an uptick in vessel utilization for our operations in and around the Gulf of Guinea.</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:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>outlook,<font style="letter-spacing:-0.2pt;"> </font>we<font style="letter-spacing:-0.2pt;"> </font>should<font style="letter-spacing:-0.2pt;"> </font>see<font style="letter-spacing:-0.2pt;"> </font>more<font style="letter-spacing:-0.2pt;"> </font>of<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>same<font style="letter-spacing:-0.2pt;"> </font>in<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>segment<font style="letter-spacing:-0.2pt;"> </font>in<font style="letter-spacing:-0.2pt;"> </font>September<font style="letter-spacing:-0.2pt;"> </font>quarter.<font style="letter-spacing:-0.2pt;"> </font>In<font style="letter-spacing:-0.2pt;"> </font>particular,<font style="letter-spacing:-0.2pt;"> </font>vessel<font style="letter-spacing:-0.2pt;"> </font>revenue<font style="letter-spacing:-0.2pt;"> </font>generated<font style="letter-spacing:-0.2pt;"> </font>along<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>African coast is expected to be flat in the September quarter relative to the June quarter. Active vessel utilization maybe up a bit quarter-to-quarter, particularly<font style="letter-spacing:-0.1pt;"> </font>in<font style="letter-spacing:-0.1pt;"> </font>Nigeria,<font style="letter-spacing:-0.1pt;"> </font>but<font style="letter-spacing:-0.1pt;"> </font>somewhat<font style="letter-spacing:-0.1pt;"> </font>counter-intuitively,<font style="letter-spacing:-0.1pt;"> </font>term<font style="letter-spacing:-0.1pt;"> </font>rates<font style="letter-spacing:-0.1pt;"> </font>remain<font style="letter-spacing:-0.1pt;"> </font>modestly<font style="letter-spacing:-0.1pt;"> </font>lower<font style="letter-spacing:-0.1pt;"> </font>than<font style="letter-spacing:-0.1pt;"> </font>spot<font style="letter-spacing:-0.1pt;"> </font>rates,<font style="letter-spacing:-0.1pt;"> </font>despite<font style="letter-spacing:-0.1pt;"> </font>a<font style="letter-spacing:-0.1pt;"> </font>general<font style="letter-spacing:-0.1pt;"> </font>sense<font style="letter-spacing:-0.1pt;"> </font>that<font style="letter-spacing:-0.1pt;"> </font>the<font style="letter-spacing:-0.1pt;"> </font>West African<font style="letter-spacing:-0.3pt;"> </font>OSV<font style="letter-spacing:-0.3pt;"> </font>market<font style="letter-spacing:-0.3pt;"> </font>is<font style="letter-spacing:-0.3pt;"> </font>tightening.<font style="letter-spacing:-0.3pt;"> </font>As<font style="letter-spacing:-0.3pt;"> </font>a<font style="letter-spacing:-0.3pt;"> </font>result,<font style="letter-spacing:-0.3pt;"> </font>in<font style="letter-spacing:-0.3pt;"> </font>the<font style="letter-spacing:-0.3pt;"> </font>near-term,<font style="letter-spacing:-0.3pt;"> </font>upside<font style="letter-spacing:-0.3pt;"> </font>or<font style="letter-spacing:-0.3pt;"> </font>downside<font style="letter-spacing:-0.3pt;"> </font>in<font style="letter-spacing:-0.3pt;"> </font>vessel<font style="letter-spacing:-0.3pt;"> </font>revenue<font style="letter-spacing:-0.3pt;"> </font>from<font style="letter-spacing:-0.3pt;"> </font>our<font style="letter-spacing:-0.3pt;"> </font>Africa<font style="letter-spacing:-0.3pt;"> </font>operations<font style="letter-spacing:-0.3pt;"> </font>will<font style="letter-spacing:-0.3pt;"> </font>likely<font style="letter-spacing:-0.3pt;"> </font>be<font style="letter-spacing:-0.3pt;"> </font>driven by better or worse-than-expected utilization and/or average day rates on vessels working in the spot market along the African coast, excluding Angola and Nigeria, which are generally term markets 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%;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:-0.1pt;"> </font>to<font style="letter-spacing:-0.1pt;"> </font>a<font style="letter-spacing:-0.1pt;"> </font>catalyst<font style="letter-spacing:-0.1pt;"> </font>for<font style="letter-spacing:-0.1pt;"> </font>movement<font style="letter-spacing:-0.1pt;"> </font>in<font style="letter-spacing:-0.1pt;"> </font>term<font style="letter-spacing:-0.1pt;"> </font>rates,<font style="letter-spacing:-0.1pt;"> </font>in<font style="letter-spacing:-0.1pt;"> </font>Africa<font style="letter-spacing:-0.1pt;"> </font>and<font style="letter-spacing:-0.1pt;"> </font>elsewhere,<font style="letter-spacing:-0.1pt;"> </font>historically,<font style="letter-spacing:-0.1pt;"> </font>rates<font style="letter-spacing:-0.1pt;"> </font>move<font style="letter-spacing:-0.1pt;"> </font>once<font style="letter-spacing:-0.1pt;"> </font>customers<font style="letter-spacing:-0.1pt;"> </font>have<font style="letter-spacing:-0.1pt;"> </font>difficulty<font style="letter-spacing:-0.1pt;"> </font>securing,<font style="letter-spacing:-0.1pt;"> </font>on<font style="letter-spacing:-0.1pt;"> </font>a<font style="letter-spacing:-0.1pt;"> </font>prompt basis, an acceptable vessel that is current with regulatory certifications. Once that begins to happen, it is possible the term rates could move up very quickly.</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;">For<font style="letter-spacing:-0.75pt;"> </font>the<font style="letter-spacing:-0.75pt;"> </font><font style="letter-spacing:-0.15pt;">Middle</font><font style="letter-spacing:-0.75pt;"> </font><font style="letter-spacing:-0.15pt;">East-Asia</font><font style="letter-spacing:-0.75pt;"> </font>Pac<font style="letter-spacing:-0.75pt;"> </font><font style="letter-spacing:-0.15pt;">segment,</font><font style="letter-spacing:-0.75pt;"> </font><font style="letter-spacing:-0.15pt;">which</font><font style="letter-spacing:-0.75pt;"> </font>is<font style="letter-spacing:-0.75pt;"> </font><font style="letter-spacing:-0.15pt;">primarily</font><font style="letter-spacing:-0.75pt;"> </font><font style="letter-spacing:-0.15pt;">driven</font><font style="letter-spacing:-0.75pt;"> </font>by<font style="letter-spacing:-0.75pt;"> </font>our<font style="letter-spacing:-0.75pt;"> </font><font style="letter-spacing:-0.15pt;">Middle</font><font style="letter-spacing:-0.75pt;"> </font><font style="letter-spacing:-0.15pt;">East</font><font style="letter-spacing:-0.75pt;"> </font><font style="letter-spacing:-0.15pt;">operations,</font><font style="letter-spacing:-0.75pt;"> </font><font style="letter-spacing:-0.15pt;">vessel</font><font style="letter-spacing:-0.75pt;"> </font><font style="letter-spacing:-0.15pt;">revenue</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;">June</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>$4<font style="letter-spacing:-0.55pt;"> </font>million<font style="letter-spacing:-0.55pt;"> </font>quarter-to-quarter,<font style="letter-spacing:-0.55pt;"> </font>due<font style="letter-spacing:-0.55pt;"> </font>in<font style="letter-spacing:-0.55pt;"> </font>large<font style="letter-spacing:-0.55pt;"> </font>part<font style="letter-spacing:-0.55pt;"> </font>to<font style="letter-spacing:-0.55pt;"> </font>a<font style="letter-spacing:-0.55pt;"> </font>number<font style="letter-spacing:-0.55pt;"> </font>of<font style="letter-spacing:-0.55pt;"> </font>our<font style="letter-spacing:-0.55pt;"> </font>towing<font style="letter-spacing:-0.55pt;"> </font>supply<font style="letter-spacing:-0.55pt;"> </font>vessels<font style="letter-spacing:-0.55pt;"> </font>returning<font style="letter-spacing:-0.55pt;"> </font>to<font style="letter-spacing:-0.55pt;"> </font>work<font style="letter-spacing:-0.55pt;"> </font>following<font style="letter-spacing:-0.55pt;"> </font>dry-dockings,<font style="letter-spacing:-0.55pt;"> </font>as<font style="letter-spacing:-0.55pt;"> </font>was<font style="letter-spacing:-0.55pt;"> </font>discussed last<font style="letter-spacing:-0.2pt;"> </font>quarter.<font style="letter-spacing:-0.2pt;"> </font>Active<font style="letter-spacing:-0.2pt;"> </font>utilization,<font style="letter-spacing:-0.2pt;"> </font>at<font style="letter-spacing:-0.2pt;"> </font>81%,<font style="letter-spacing:-0.2pt;"> </font>was<font style="letter-spacing:-0.2pt;"> </font>up<font style="letter-spacing:-0.2pt;"> </font>almost<font style="letter-spacing:-0.2pt;"> </font>20<font style="letter-spacing:-0.2pt;"> </font>percentage<font style="letter-spacing:-0.2pt;"> </font>points<font style="letter-spacing:-0.2pt;"> </font>quarter-to-quarter,<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>average<font style="letter-spacing:-0.2pt;"> </font>day<font style="letter-spacing:-0.2pt;"> </font>rates,<font style="letter-spacing:-0.2pt;"> </font>at<font style="letter-spacing:-0.2pt;"> </font>approximately<font style="letter-spacing:-0.2pt;"> </font>$7,600<font style="letter-spacing:-0.2pt;"> </font>per day, were down approximately 6% quarter-to-quarter.</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;">Somewhat<font style="letter-spacing:-0.25pt;"> </font>similar<font style="letter-spacing:-0.25pt;"> </font>to<font style="letter-spacing:-0.25pt;"> </font>the<font style="letter-spacing:-0.25pt;"> </font>story<font style="letter-spacing:-0.25pt;"> </font>in<font style="letter-spacing:-0.25pt;"> </font>Mexico,<font style="letter-spacing:-0.25pt;"> </font>we<font style="letter-spacing:-0.25pt;"> </font>expect<font style="letter-spacing:-0.25pt;"> </font>a<font style="letter-spacing:-0.25pt;"> </font>relatively<font style="letter-spacing:-0.25pt;"> </font>stable<font style="letter-spacing:-0.25pt;"> </font>active<font style="letter-spacing:-0.25pt;"> </font>fleet<font style="letter-spacing:-0.25pt;"> </font>in<font style="letter-spacing:-0.25pt;"> </font>the<font style="letter-spacing:-0.25pt;"> </font>Middle<font style="letter-spacing:-0.25pt;"> </font>East<font style="letter-spacing:-0.25pt;"> </font>and<font style="letter-spacing:-0.25pt;"> </font>relatively<font style="letter-spacing:-0.25pt;"> </font>high<font style="letter-spacing:-0.25pt;"> </font>utilization,<font style="letter-spacing:-0.25pt;"> </font>but<font style="letter-spacing:-0.25pt;"> </font>average<font style="letter-spacing:-0.25pt;"> </font>day rates will remain under pressure given the large influx of equipment relocating from the Asian markets into the Middle East in the last number of quarters.<font style="letter-spacing:-0.35pt;"> </font>Based<font style="letter-spacing:-0.35pt;"> </font>on<font style="letter-spacing:-0.35pt;"> </font>known<font style="letter-spacing:-0.35pt;"> </font>and<font style="letter-spacing:-0.35pt;"> </font>expected<font style="letter-spacing:-0.35pt;"> </font>contracts,<font style="letter-spacing:-0.35pt;"> </font>vessel<font style="letter-spacing:-0.35pt;"> </font>revenue<font style="letter-spacing:-0.35pt;"> </font>should<font style="letter-spacing:-0.35pt;"> </font>be<font style="letter-spacing:-0.35pt;"> </font>flat<font style="letter-spacing:-0.35pt;"> </font>to<font style="letter-spacing:-0.35pt;"> </font>down<font style="letter-spacing:-0.35pt;"> </font>a<font style="letter-spacing:-0.35pt;"> </font>couple<font style="letter-spacing:-0.35pt;"> </font>of<font style="letter-spacing:-0.35pt;"> </font>million<font style="letter-spacing:-0.35pt;"> </font>dollars<font style="letter-spacing:-0.35pt;"> </font>in<font style="letter-spacing:-0.35pt;"> </font>the<font style="letter-spacing:-0.35pt;"> </font>September<font style="letter-spacing:-0.35pt;"> </font>quarter,<font style="letter-spacing:-0.35pt;"> </font>with the upside largely tied to shorter-term construction-related contracts. Our vessel count, activity and average day rates in Southeast Asia have remained relatively flat, and we expect that to be the case for the rest of 2018.</p>
<p style="margin-top:0pt;margin-bottom:0pt;font-size:9.5pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;text-indent:25.05%;">&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;">While we continue to feel the market has stabilized and we may be experiencing the beginning of a slow recovery, our commitment to expense management<font style="letter-spacing:-0.1pt;"> </font>has<font style="letter-spacing:-0.1pt;"> </font>not<font style="letter-spacing:-0.1pt;"> </font>changed.<font style="letter-spacing:-0.1pt;"> </font>G&amp;A<font style="letter-spacing:-0.1pt;"> </font>remained<font style="letter-spacing:-0.1pt;"> </font>below<font style="letter-spacing:-0.1pt;"> </font>our<font style="letter-spacing:-0.1pt;"> </font>quarterly<font style="letter-spacing:-0.1pt;"> </font>target<font style="letter-spacing:-0.1pt;"> </font>of<font style="letter-spacing:-0.1pt;"> </font>$25<font style="letter-spacing:-0.1pt;"> </font>million,<font style="letter-spacing:-0.1pt;"> </font>and<font style="letter-spacing:-0.1pt;"> </font>G&amp;A,<font style="letter-spacing:-0.1pt;"> </font>excluding<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 of $3.2 million and professional services expense related to the proposed combination with GulfMark of $1.5 million, was less than $20 million in the June quarter.</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;">Since our financial reorganization was completed last year, our focus remains on streamlining our operations and rationalizing our shore-based footprint,<font style="letter-spacing:-0.1pt;"> </font>all<font style="letter-spacing:-0.1pt;"> </font>while<font style="letter-spacing:-0.1pt;"> </font>remaining<font style="letter-spacing:-0.1pt;"> </font>dedicated<font style="letter-spacing:-0.1pt;"> </font>to<font style="letter-spacing:-0.1pt;"> </font>providing<font style="letter-spacing:-0.1pt;"> </font>a<font style="letter-spacing:-0.1pt;"> </font>safe<font style="letter-spacing:-0.1pt;"> </font>environment<font style="letter-spacing:-0.1pt;"> </font>for<font style="letter-spacing:-0.1pt;"> </font>employees,<font style="letter-spacing:-0.1pt;"> </font>high-quality<font style="letter-spacing:-0.1pt;"> </font>service<font style="letter-spacing:-0.1pt;"> </font>to<font style="letter-spacing:-0.1pt;"> </font>our<font style="letter-spacing:-0.1pt;"> </font>clients<font style="letter-spacing:-0.1pt;"> </font>around<font style="letter-spacing:-0.1pt;"> </font>the<font style="letter-spacing:-0.1pt;"> </font>world,<font style="letter-spacing:-0.1pt;"> </font>and, of course, best positioning of the company to capitalize on an OSV market recovery.</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<font style="letter-spacing:-0.85pt;"> </font>recently<font style="letter-spacing:-0.85pt;"> </font>announced<font style="letter-spacing:-0.85pt;"> </font>agreement<font style="letter-spacing:-0.85pt;"> </font>to<font style="letter-spacing:-0.85pt;"> </font>combine<font style="letter-spacing:-0.85pt;"> </font>with<font style="letter-spacing:-0.85pt;"> </font>GulfMark<font style="letter-spacing:-0.85pt;"> </font>is<font style="letter-spacing:-0.85pt;"> </font>intended<font style="letter-spacing:-0.85pt;"> </font>to<font style="letter-spacing:-0.85pt;"> </font>accelerate<font style="letter-spacing:-0.85pt;"> </font>our<font style="letter-spacing:-0.85pt;"> </font>progress<font style="letter-spacing:-0.85pt;"> </font>towards<font style="letter-spacing:-0.85pt;"> </font>these<font style="letter-spacing:-0.85pt;"> </font>goals.<font style="letter-spacing:-0.85pt;"> </font>The<font style="letter-spacing:-0.85pt;"> </font>combined<font style="letter-spacing:-0.85pt;"> </font>company's fleet<font style="letter-spacing:-1.15pt;"> </font>would<font style="letter-spacing:-1.15pt;"> </font>provide<font style="letter-spacing:-1.15pt;"> </font>enhanced<font style="letter-spacing:-1.15pt;"> </font>access<font style="letter-spacing:-1.15pt;"> </font>for<font style="letter-spacing:-1.15pt;"> </font>customers<font style="letter-spacing:-1.15pt;"> </font>to<font style="letter-spacing:-1.15pt;"> </font>modern,<font style="letter-spacing:-1.15pt;"> </font>high-specification<font style="letter-spacing:-1.15pt;"> </font>vessels,<font style="letter-spacing:-1.15pt;"> </font>while<font style="letter-spacing:-1.15pt;"> </font>maintaining<font style="letter-spacing:-1.15pt;"> </font>a<font style="letter-spacing:-1.15pt;"> </font>strong<font style="letter-spacing:-1.15pt;"> </font>commitment<font style="letter-spacing:-1.15pt;"> </font>to<font style="letter-spacing:-1.15pt;"> </font>safe<font style="letter-spacing:-1.15pt;"> </font>operations and superior, cost-effective customer service.</p>
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<p style="margin-top:0pt;margin-bottom: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%;color:#FFFFFF;font-size:12pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">
<p style="margin-top:0pt;margin-bottom:0pt;margin-left:0.18%;text-indent:0%;color:#FFFFFF;font-size:12pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">AUGUST 14, 2018 / 3:00PM, TDW &#8211; Q2 2018 Tidewater Inc Earnings Call</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>&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;">As we highlighted at the time of the GulfMark merger announcement, the combined company will have the largest OSV fleet in the world, with strengths in key markets that we think will be attractive to shareholders of both companies.</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;">The<font style="letter-spacing:-0.3pt;"> </font>combined<font style="letter-spacing:-0.3pt;"> </font>company<font style="letter-spacing:-0.3pt;"> </font>will<font style="letter-spacing:-0.3pt;"> </font>have<font style="letter-spacing:-0.3pt;"> </font>scale<font style="letter-spacing:-0.3pt;"> </font>positions<font style="letter-spacing:-0.3pt;"> </font>in<font style="letter-spacing:-0.3pt;"> </font>the<font style="letter-spacing:-0.3pt;"> </font>Americas<font style="letter-spacing:-0.3pt;"> </font>regions,<font style="letter-spacing:-0.3pt;"> </font>which<font style="letter-spacing:-0.3pt;"> </font>covers<font style="letter-spacing:-0.3pt;"> </font>operations<font style="letter-spacing:-0.3pt;"> </font>from<font style="letter-spacing:-0.3pt;"> </font>Canada<font style="letter-spacing:-0.3pt;"> </font>in<font style="letter-spacing:-0.3pt;"> </font>the<font style="letter-spacing:-0.3pt;"> </font>North<font style="letter-spacing:-0.3pt;"> </font>to<font style="letter-spacing:-0.3pt;"> </font>Brazil<font style="letter-spacing:-0.3pt;"> </font>in<font style="letter-spacing:-0.3pt;"> </font>the<font style="letter-spacing:-0.3pt;"> </font>South, the North Sea, the Med, West Africa and the Middle East. Importantly, Tidewater's global operating footprint also presents possible opportunities for improved utilization by redeploying elements at GulfMark's America-based fleet.</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 understand that scale matters in this market, and we remain focused on ensuring that our fleet is best-suited to support the needs of our customers. We are confident that the combination of Tidewater and GulfMark will benefit all stakeholders, including employees, customers and shareholders.<font style="letter-spacing:-0.15pt;"> </font>As<font style="letter-spacing:-0.15pt;"> </font>the<font style="letter-spacing:-0.15pt;"> </font>industry<font style="letter-spacing:-0.15pt;"> </font>recovers,<font style="letter-spacing:-0.15pt;"> </font>we<font style="letter-spacing:-0.15pt;"> </font>also<font style="letter-spacing:-0.15pt;"> </font>need<font style="letter-spacing:-0.15pt;"> </font>to<font style="letter-spacing:-0.15pt;"> </font>maintain<font style="letter-spacing:-0.15pt;"> </font>our<font style="letter-spacing:-0.15pt;"> </font>focus<font style="letter-spacing:-0.15pt;"> </font>on<font style="letter-spacing:-0.15pt;"> </font>efficiency<font style="letter-spacing:-0.15pt;"> </font>and<font style="letter-spacing:-0.15pt;"> </font>agility,<font style="letter-spacing:-0.15pt;"> </font>and<font style="letter-spacing:-0.15pt;"> </font>the<font style="letter-spacing:-0.15pt;"> </font>proposed<font style="letter-spacing:-0.15pt;"> </font>combination<font style="letter-spacing:-0.15pt;"> </font>with<font style="letter-spacing:-0.15pt;"> </font>GulfMark supports that goal.</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 we have reported for the past several quarters, rationalizing our fleet is an ongoing process, and we continue to make progress with vessel dispositions. We expect this process to continue at a combined Tidewater/GulfMark.</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:-0.5pt;"> </font>particular,<font style="letter-spacing:-0.5pt;"> </font>Tidewater<font style="letter-spacing:-0.5pt;"> </font>has<font style="letter-spacing:-0.5pt;"> </font>disposed<font style="letter-spacing:-0.5pt;"> </font>of<font style="letter-spacing:-0.5pt;"> </font>25<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>16<font style="letter-spacing:-0.5pt;"> </font>of<font style="letter-spacing:-0.5pt;"> </font>which<font style="letter-spacing:-0.5pt;"> </font>were<font style="letter-spacing:-0.5pt;"> </font>sold<font style="letter-spacing:-0.5pt;"> </font>as<font style="letter-spacing:-0.5pt;"> </font>scrap.<font style="letter-spacing:-0.5pt;"> </font>An<font style="letter-spacing:-0.5pt;"> </font>additional<font style="letter-spacing:-0.5pt;"> </font>13<font style="letter-spacing:-0.5pt;"> </font>Tidewater<font style="letter-spacing:-0.5pt;"> </font>vessels<font style="letter-spacing:-0.5pt;"> </font>are<font style="letter-spacing:-0.5pt;"> </font>in<font style="letter-spacing:-0.5pt;"> </font>the<font style="letter-spacing:-0.5pt;"> </font>process of being sold. In the last five years, the company has disposed of 161 vessels, 57 of which were sold as scrap.</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 operations team remains focused on ensuring we are prepared to activate additional vessels from our stacked fleet as market conditions support. As you will hear from Quinn, we continue to maintain our strong financial position, which will enable us to fund these reactivations with existing<font style="letter-spacing:-0.25pt;"> </font>and<font style="letter-spacing:-0.25pt;"> </font>available<font style="letter-spacing:-0.25pt;"> </font>cash.<font style="letter-spacing:-0.25pt;"> </font>It<font style="letter-spacing:-0.25pt;"> </font>is<font style="letter-spacing:-0.25pt;"> </font>worth<font style="letter-spacing:-0.25pt;"> </font>pointing<font style="letter-spacing:-0.25pt;"> </font>out<font style="letter-spacing:-0.25pt;"> </font>that<font style="letter-spacing:-0.25pt;"> </font>we<font style="letter-spacing:-0.25pt;"> </font>structured<font style="letter-spacing:-0.25pt;"> </font>the<font style="letter-spacing:-0.25pt;"> </font>GulfMark<font style="letter-spacing:-0.25pt;"> </font>acquisition<font style="letter-spacing:-0.25pt;"> </font>to<font style="letter-spacing:-0.25pt;"> </font>preserve<font style="letter-spacing:-0.25pt;"> </font>our<font style="letter-spacing:-0.25pt;"> </font>strong<font style="letter-spacing:-0.25pt;"> </font>balance<font style="letter-spacing:-0.25pt;"> </font>sheet,<font style="letter-spacing:-0.25pt;"> </font>enabling<font style="letter-spacing:-0.25pt;"> </font>the combined company to strategically consider both organic and inorganic growth opportunities in the future. We continue to feel that our strong liquidity position, increased scale and diversification across geo markets will be a competitive advantage 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%;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="4._Quinn_P._Fanning"></a><a name="_bookmark2"></a>As noted at the beginning of my remarks, access to capital for many vessel owners remains quite limited in the current environment. That<font style="letter-spacing:-1.15pt;"> </font><a name="4._Quinn_P._Fanning"></a><a name="_bookmark2"></a>should not be the case for Tidewater or combined Tidewater/GulfMark. Now I'll turn the call over to Quinn to cover our financial performance during the just completed June quarter.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></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;">Thank you, John. Good morning, everyone. As was highlighted in our earnings press release and 10-Q, concurrent with the completion of our financial restructuring, the company adopted "fresh-start" accounting and will continue to report its financial position and results of operations through July 31, 2017, as "Predecessor" activities. We will report our financial position and results of operations subsequent to July 31, 2017, as "Successor"<font style="letter-spacing:-0.2pt;"> </font>activities.<font style="letter-spacing:-0.2pt;"> </font>I'll<font style="letter-spacing:-0.2pt;"> </font>also<font style="letter-spacing:-0.2pt;"> </font>call<font style="letter-spacing:-0.2pt;"> </font>your<font style="letter-spacing:-0.2pt;"> </font>attention<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>financial<font style="letter-spacing:-0.2pt;"> </font>tables<font style="letter-spacing:-0.2pt;"> </font>included<font style="letter-spacing:-0.2pt;"> </font>in<font style="letter-spacing:-0.2pt;"> </font>last<font style="letter-spacing:-0.2pt;"> </font>evening's<font style="letter-spacing:-0.2pt;"> </font>press<font style="letter-spacing:-0.2pt;"> </font>release.<font style="letter-spacing:-0.2pt;"> </font>Financial<font style="letter-spacing:-0.2pt;"> </font>results,<font style="letter-spacing:-0.2pt;"> </font>balance<font style="letter-spacing:-0.2pt;"> </font>sheet<font style="letter-spacing:-0.2pt;"> </font>data and select operating statistics are presented covering five quarters or equivalent periods, straddling both Predecessor and 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;">Similarly,<font style="letter-spacing:-0.55pt;"> </font>operating<font style="letter-spacing:-0.55pt;"> </font>and<font style="letter-spacing:-0.55pt;"> </font>financial<font style="letter-spacing:-0.55pt;"> </font>detail<font style="letter-spacing:-0.55pt;"> </font>is<font style="letter-spacing:-0.55pt;"> </font>presented<font style="letter-spacing:-0.55pt;"> </font>by<font style="letter-spacing:-0.55pt;"> </font>asset<font style="letter-spacing:-0.55pt;"> </font>class<font style="letter-spacing:-0.55pt;"> </font>and<font style="letter-spacing:-0.55pt;"> </font>based<font style="letter-spacing:-0.55pt;"> </font>on<font style="letter-spacing:-0.55pt;"> </font>our<font style="letter-spacing:-0.55pt;"> </font>4<font style="letter-spacing:-0.55pt;"> </font>geography-based<font style="letter-spacing:-0.55pt;"> </font>reporting<font style="letter-spacing:-0.55pt;"> </font>segments.<font style="letter-spacing:-0.55pt;"> </font>We<font style="letter-spacing:-0.55pt;"> </font>have<font style="letter-spacing:-0.55pt;"> </font>also<font style="letter-spacing:-0.55pt;"> </font>included consolidated<font style="letter-spacing:-0.2pt;"> </font>EBITDA<font style="letter-spacing:-0.2pt;"> </font>as<font style="letter-spacing:-0.2pt;"> </font>a<font style="letter-spacing:-0.2pt;"> </font>non-GAAP<font style="letter-spacing:-0.2pt;"> </font>performance<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>liquidity<font style="letter-spacing:-0.2pt;"> </font>measure,<font style="letter-spacing:-0.2pt;"> </font>as<font style="letter-spacing:-0.2pt;"> </font>well<font style="letter-spacing:-0.2pt;"> </font>as<font style="letter-spacing:-0.2pt;"> </font>reconciliations<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>most<font style="letter-spacing:-0.2pt;"> </font>directly<font style="letter-spacing:-0.2pt;"> </font>comparable<font style="letter-spacing:-0.2pt;"> </font>GAAP<font style="letter-spacing:-0.2pt;"> </font>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;">Now<font style="letter-spacing:-1.1pt;"> </font>turning<font style="letter-spacing:-1.1pt;"> </font>to<font style="letter-spacing:-1.1pt;"> </font>our<font style="letter-spacing:-1.1pt;"> </font>financial<font style="letter-spacing:-1.1pt;"> </font>results<font style="letter-spacing:-1.1pt;"> </font>for<font style="letter-spacing:-1.1pt;"> </font>the<font style="letter-spacing:-1.1pt;"> </font>quarter,<font style="letter-spacing:-1.1pt;"> </font>as<font style="letter-spacing:-1.1pt;"> </font>John<font style="letter-spacing:-1.1pt;"> </font>noted,<font style="letter-spacing:-1.1pt;"> </font>operating<font style="letter-spacing:-1.1pt;"> </font>results<font style="letter-spacing:-1.1pt;"> </font>improved<font style="letter-spacing:-1.1pt;"> </font>quarter-over-quarter,<font style="letter-spacing:-1.1pt;"> </font>primarily<font style="letter-spacing:-1.1pt;"> </font>due<font style="letter-spacing:-1.1pt;"> </font>to<font style="letter-spacing:-1.1pt;"> </font>better<font style="letter-spacing:-1.1pt;"> </font>utilization of the active fleet, which at 81% was up approximately 11% quarter-over-quarter. The improvement in active utilization was most pronounced in the Americas segment, driven by new work in Eastern Canada, and in the Europe/Mediterranean Sea segment, driven by the seasonal pickup in activity<font style="letter-spacing:-0.35pt;"> </font>in<font style="letter-spacing:-0.35pt;"> </font>the<font style="letter-spacing:-0.35pt;"> </font>North<font style="letter-spacing:-0.35pt;"> </font>Sea.<font style="letter-spacing:-0.35pt;"> </font>Better<font style="letter-spacing:-0.35pt;"> </font>active<font style="letter-spacing:-0.35pt;"> </font>vessel<font style="letter-spacing:-0.35pt;"> </font>utilization<font style="letter-spacing:-0.35pt;"> </font>in<font style="letter-spacing:-0.35pt;"> </font>the<font style="letter-spacing:-0.35pt;"> </font>Middle<font style="letter-spacing:-0.35pt;"> </font>East,<font style="letter-spacing:-0.35pt;"> </font>the<font style="letter-spacing:-0.35pt;"> </font>Med<font style="letter-spacing:-0.35pt;"> </font>and<font style="letter-spacing:-0.35pt;"> </font>West<font style="letter-spacing:-0.35pt;"> </font>Africa<font style="letter-spacing:-0.35pt;"> </font>also<font style="letter-spacing:-0.35pt;"> </font>reflects<font style="letter-spacing:-0.35pt;"> </font>vessels<font style="letter-spacing:-0.35pt;"> </font>returning<font style="letter-spacing:-0.35pt;"> </font>to<font style="letter-spacing:-0.35pt;"> </font>work<font style="letter-spacing:-0.35pt;"> </font>following scheduled dry-dockings during the March quarter.</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;">Average<font style="letter-spacing:-0.35pt;"> </font>day<font style="letter-spacing:-0.35pt;"> </font>rates,<font style="letter-spacing:-0.35pt;"> </font>at<font style="letter-spacing:-0.35pt;"> </font>approximately<font style="letter-spacing:-0.35pt;"> </font>$10,000<font style="letter-spacing:-0.35pt;"> </font>per<font style="letter-spacing:-0.35pt;"> </font>day,<font style="letter-spacing:-0.35pt;"> </font>were<font style="letter-spacing:-0.35pt;"> </font>basically<font style="letter-spacing:-0.35pt;"> </font>flat<font style="letter-spacing:-0.35pt;"> </font>quarter-over-quarter,<font style="letter-spacing:-0.35pt;"> </font>with<font style="letter-spacing:-0.35pt;"> </font>some<font style="letter-spacing:-0.35pt;"> </font>of<font style="letter-spacing:-0.35pt;"> </font>the<font style="letter-spacing:-0.35pt;"> </font>positive<font style="letter-spacing:-0.35pt;"> </font>trends<font style="letter-spacing:-0.35pt;"> </font>in<font style="letter-spacing:-0.35pt;"> </font>leading-edge<font style="letter-spacing:-0.35pt;"> </font>day rates offset by lower term rates in select markets, most notably in Mexico and Saudi Arabia, and to a lesser extent, along the African coast.</p>
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<p style="margin-top:0pt;margin-bottom: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%;color:#FFFFFF;font-size:12pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">
<p style="margin-top:0pt;margin-bottom:0pt;margin-left:0.18%;text-indent:0%;color:#FFFFFF;font-size:12pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">AUGUST 14, 2018 / 3:00PM, TDW &#8211; Q2 2018 Tidewater Inc Earnings Call</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>&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 name="_AEIOULastRenderedPageBreakAEIOU4"></a><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">With that context, we reported a net loss for the three months ended June 30, 2018 of $10.9 million, or $0.44 per common share. The net loss includes</font><font style="letter-spacing:-0.8pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$1.2</font><font style="letter-spacing:-0.8pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">million,</font><font style="letter-spacing:-0.8pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or</font><font style="letter-spacing:-0.8pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$0.05</font><font style="letter-spacing:-0.8pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">per</font><font style="letter-spacing:-0.8pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">share</font><font style="letter-spacing:-0.8pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in</font><font style="letter-spacing:-0.8pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">non-cash</font><font style="letter-spacing:-0.8pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">asset</font><font style="letter-spacing:-0.8pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">impairme</font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">nts</font><font style="letter-spacing:-0.8pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">that</font><font style="letter-spacing:-0.8pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">resulted</font><font style="letter-spacing:-0.8pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">from</font><font style="letter-spacing:-0.8pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">impairment</font><font style="letter-spacing:-0.8pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">reviews</font><font style="letter-spacing:-0.8pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">undertaken</font><font style="letter-spacing:-0.8pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">during</font><font style="letter-spacing:-0.8pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</font><font style="letter-spacing:-0.8pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">just</font><font style="letter-spacing:-0.8pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">completed quarter. Asset impairments recognized in the June quarter were related to 2 vessels that were stacked as of June 30 and, at least in my view, do not</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">suggest</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">a</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">broader</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">negative</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">t</font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">rend</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">secondhand</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">vessel</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">values.</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">fact,</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">secondhand</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">vessel</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">market</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">has</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">become</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">more</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">active</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">recent</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">months and pricing seems to be moving in a generally positive direction.</font></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;">Financial results for the June quarter also reflect $6.8 million, or $0.27 per common share of foreign exchange losses, $5.8 million, or $0.23 per common share, of which is included in equity in net losses of unconsolidated companies and was related to our Angolan joint venture.</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 noted in our press release, also included in equity in net losses of unconsolidated companies is a gain of $4.9 million, or $0.20 per share, representing dividends received from Sonatide of $12.3 million, which exceeded the company's pre-dividend investment balance of $7.3 million at quarter-end. Giving effect to the dividend received, at June 30, we carried our equity investment in Sonatide at zero.</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 due from Sonatide, net of due to Sonatide was approximately $106 million at June 30 or down approximately $24 million since March 31, largely reflecting USD collections in excess of Angola-related revenue during the quarter.</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 note that at June 30, we have included amounts due from and due to our Nigerian joint venture, DTDW, of approximately $44 million and approximately $16 million, respectively, in the due from and due to affiliates balances on the face of our balance sheet.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:10pt;">&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 due from DTDW, net of amounts due to DTDW was approximately $29 million at June 30, and was up approximately $3 million quarter-over-quarter.<font style="letter-spacing:-0.1pt;"> </font>At<font style="letter-spacing:-0.1pt;"> </font>present,<font style="letter-spacing:-0.1pt;"> </font>we<font style="letter-spacing:-0.1pt;"> </font>do<font style="letter-spacing:-0.1pt;"> </font>not<font style="letter-spacing:-0.1pt;"> </font>have<font style="letter-spacing:-0.1pt;"> </font>the<font style="letter-spacing:-0.1pt;"> </font>same<font style="letter-spacing:-0.1pt;"> </font>USD<font style="letter-spacing:-0.1pt;"> </font>liquidity<font style="letter-spacing:-0.1pt;"> </font>issues<font style="letter-spacing:-0.1pt;"> </font>in<font style="letter-spacing:-0.1pt;"> </font>Nigeria<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>experienced<font style="letter-spacing:-0.1pt;"> </font>in<font style="letter-spacing:-0.1pt;"> </font>Angola<font style="letter-spacing:-0.1pt;"> </font>in<font style="letter-spacing:-0.1pt;"> </font>recent<font style="letter-spacing:-0.1pt;"> </font>years.<font style="letter-spacing:-0.1pt;"> </font>The net due from DTDW is also expected to be relatively stable in the near-term, if not trend down in the second half of 2018.</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 noted in our earnings press release was an updated mix of common shares and Jones Act Warrants outstanding, which reflects continued progress<font style="letter-spacing:-0.2pt;"> </font>in<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>conversion<font style="letter-spacing:-0.2pt;"> </font>of<font style="letter-spacing:-0.2pt;"> </font>Jones<font style="letter-spacing:-0.2pt;"> </font>Act<font style="letter-spacing:-0.2pt;"> </font>Warrants<font style="letter-spacing:-0.2pt;"> </font>into<font style="letter-spacing:-0.2pt;"> </font>common<font style="letter-spacing:-0.2pt;"> </font>shares.<font style="letter-spacing:-0.2pt;"> </font>As<font style="letter-spacing:-0.2pt;"> </font>discussed<font style="letter-spacing:-0.2pt;"> </font>in<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>we<font style="letter-spacing:-0.2pt;"> </font>consider<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>Jones<font style="letter-spacing:-0.2pt;"> </font>Act Warrants, each of which is exercisable to acquire a share of common stock at a price of $0.001, to be the economic equivalent to common<font style="letter-spacing:-1.25pt;"> </font>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;">As<font style="letter-spacing:-0.1pt;"> </font>of<font style="letter-spacing:-0.1pt;"> </font>June<font style="letter-spacing:-0.1pt;"> </font>30,<font style="letter-spacing:-0.1pt;"> </font>the<font style="letter-spacing:-0.1pt;"> </font>sum<font style="letter-spacing:-0.1pt;"> </font>of<font style="letter-spacing:-0.1pt;"> </font>outstanding<font style="letter-spacing:-0.1pt;"> </font>common<font style="letter-spacing:-0.1pt;"> </font>shares<font style="letter-spacing:-0.1pt;"> </font>and<font style="letter-spacing:-0.1pt;"> </font>Jones<font style="letter-spacing:-0.1pt;"> </font>Act<font style="letter-spacing:-0.1pt;"> </font>Warrants<font style="letter-spacing:-0.1pt;"> </font>was<font style="letter-spacing:-0.1pt;"> </font>30<font style="letter-spacing:-0.1pt;"> </font>million.<font style="letter-spacing:-0.1pt;"> </font>I<font style="letter-spacing:-0.1pt;"> </font>call<font style="letter-spacing:-0.1pt;"> </font>this<font style="letter-spacing:-0.1pt;"> </font>to<font style="letter-spacing:-0.1pt;"> </font>your<font style="letter-spacing:-0.1pt;"> </font>attention,<font style="letter-spacing:-0.1pt;"> </font>in<font style="letter-spacing:-0.1pt;"> </font>part,<font style="letter-spacing:-0.1pt;"> </font>to<font style="letter-spacing:-0.1pt;"> </font>highlight<font style="letter-spacing:-0.1pt;"> </font>that the<font style="letter-spacing:-0.25pt;"> </font>reported<font style="letter-spacing:-0.25pt;"> </font>loss<font style="letter-spacing:-0.25pt;"> </font>per<font style="letter-spacing:-0.25pt;"> </font>share<font style="letter-spacing:-0.25pt;"> </font>is<font style="letter-spacing:-0.25pt;"> </font>based<font style="letter-spacing:-0.25pt;"> </font>on<font style="letter-spacing:-0.25pt;"> </font>weighted<font style="letter-spacing:-0.25pt;"> </font>average<font style="letter-spacing:-0.25pt;"> </font>common<font style="letter-spacing:-0.25pt;"> </font>shares<font style="letter-spacing:-0.25pt;"> </font>outstanding<font style="letter-spacing:-0.25pt;"> </font>of<font style="letter-spacing:-0.25pt;"> </font>24.7<font style="letter-spacing:-0.25pt;"> </font>million,<font style="letter-spacing:-0.25pt;"> </font>and<font style="letter-spacing:-0.25pt;"> </font>excludes<font style="letter-spacing:-0.25pt;"> </font>5.3<font style="letter-spacing:-0.25pt;"> </font>million<font style="letter-spacing:-0.25pt;"> </font>Jones<font style="letter-spacing:-0.25pt;"> </font>Act<font style="letter-spacing:-0.25pt;"> </font>Warrants due to U.S. citizenship restrictions on exercising such warrants.</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;">Returning to operating results, vessel revenue and vessel operating margin for the quarter ended June 30 was $104.2 million and $36.2 million, respectively. As a percentage of vessel revenue, vessel operating margin for the quarter was approximately 35%. Vessel operating margin was<font style="letter-spacing:-1pt;"> </font>up approximately $10 million quarter-over-quarter and vessel operating margin as a percentage of vessel revenue improved by approximately 5 percentage points quarter-over-quarter.</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:-0.25pt;"> </font>John<font style="letter-spacing:-0.25pt;"> </font>noted,<font style="letter-spacing:-0.25pt;"> </font>consolidated<font style="letter-spacing:-0.25pt;"> </font>EBITDA<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>June<font style="letter-spacing:-0.25pt;"> </font>30,<font style="letter-spacing:-0.25pt;"> </font>2018<font style="letter-spacing:-0.25pt;"> </font>was<font style="letter-spacing:-0.25pt;"> </font>$16.2<font style="letter-spacing:-0.25pt;"> </font>million.<font style="letter-spacing:-0.25pt;"> </font>EBITDA<font style="letter-spacing:-0.25pt;"> </font>in<font style="letter-spacing:-0.25pt;"> </font>the<font style="letter-spacing:-0.25pt;"> </font>June<font style="letter-spacing:-0.25pt;"> </font>quarter<font style="letter-spacing:-0.25pt;"> </font>excludes<font style="letter-spacing:-0.25pt;"> </font>$1.2<font style="letter-spacing:-0.25pt;"> </font>million in<font style="letter-spacing:-0.15pt;"> </font>asset<font style="letter-spacing:-0.15pt;"> </font>impairment<font style="letter-spacing:-0.15pt;"> </font>charges,<font style="letter-spacing:-0.15pt;"> </font>but<font style="letter-spacing:-0.15pt;"> </font>includes<font style="letter-spacing:-0.15pt;"> </font>$3.2<font style="letter-spacing:-0.15pt;"> </font>million<font style="letter-spacing:-0.15pt;"> </font>of<font style="letter-spacing:-0.15pt;"> </font>stock-based<font style="letter-spacing:-0.15pt;"> </font>compensation<font style="letter-spacing:-0.15pt;"> </font>expense,<font style="letter-spacing:-0.15pt;"> </font>$6.8<font style="letter-spacing:-0.15pt;"> </font>million<font style="letter-spacing:-0.15pt;"> </font>of<font style="letter-spacing:-0.15pt;"> </font>foreign<font style="letter-spacing:-0.15pt;"> </font>exchange<font style="letter-spacing:-0.15pt;"> </font>losses,<font style="letter-spacing:-0.15pt;"> </font>$1.5<font style="letter-spacing:-0.15pt;"> </font>million of professional services costs related to our proposed combination with GulfMark, and, finally, $4.9 million of Sonatide-related dividend income.</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<font style="letter-spacing:-0.4pt;"> </font>comparison<font style="letter-spacing:-0.4pt;"> </font>purposes,<font style="letter-spacing:-0.4pt;"> </font>consolidated<font style="letter-spacing:-0.4pt;"> </font>EBITDA<font style="letter-spacing:-0.4pt;"> </font>for<font style="letter-spacing:-0.4pt;"> </font>the<font style="letter-spacing:-0.4pt;"> </font>three<font style="letter-spacing:-0.4pt;"> </font>months<font style="letter-spacing:-0.4pt;"> </font>ended<font style="letter-spacing:-0.4pt;"> </font>March<font style="letter-spacing:-0.4pt;"> </font>31,<font style="letter-spacing:-0.4pt;"> </font>2018<font style="letter-spacing:-0.4pt;"> </font>was<font style="letter-spacing:-0.4pt;"> </font>negative<font style="letter-spacing:-0.4pt;"> </font>$9.9<font style="letter-spacing:-0.4pt;"> </font>million.<font style="letter-spacing:-0.4pt;"> </font>EBITDA<font style="letter-spacing:-0.4pt;"> </font>in<font style="letter-spacing:-0.4pt;"> </font>the<font style="letter-spacing:-0.4pt;"> </font>March<font style="letter-spacing:-0.4pt;"> </font>quarter excludes $6.2 million in asset impairment charges, but includes $3 million of stock-based compensation expense and $15.2 million of foreign exchange losses.</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;">Tables reconciling EBITDA to our net loss and cash provided by, 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: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;">Looking at the fleet, the average number of vessels in our fleet for the June quarter was 205 vessels, which is down 12 vessels from the average number of vessels for the three month period ended March 31, 2018. Average active vessels in the June quarter were 141 vessels, which is up 3 vessels quarter-over-quarter.</p>
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<p style="margin-top:0pt;margin-bottom: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%;color:#FFFFFF;font-size:12pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">
<p style="margin-top:0pt;margin-bottom:0pt;margin-left:0.18%;text-indent:0%;color:#FFFFFF;font-size:12pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">AUGUST 14, 2018 / 3:00PM, TDW &#8211; Q2 2018 Tidewater Inc Earnings Call</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>&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 name="_AEIOULastRenderedPageBreakAEIOU5"></a><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The</font><font style="letter-spacing:-0.35pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">stacked</font><font style="letter-spacing:-0.35pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">fleet</font><font style="letter-spacing:-0.35pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">at</font><font style="letter-spacing:-0.35pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">quarter-end</font><font style="letter-spacing:-0.35pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">was</font><font style="letter-spacing:-0.35pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">66</font><font style="letter-spacing:-0.35pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">vessels,</font><font style="letter-spacing:-0.35pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or</font><font style="letter-spacing:-0.35pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">down</font><font style="letter-spacing:-0.35pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">4</font><font style="letter-spacing:-0.35pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">vessels</font><font style="letter-spacing:-0.35pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">quarter-over-quarter,</font><font style="letter-spacing:-0.35pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">reflecting</font><font style="letter-spacing:-0.35pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3</font><font style="letter-spacing:-0.35pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">vessel</font><font style="letter-spacing:-0.35pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">dispositions,</font><font style="letter-spacing:-0.35pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1</font><font style="letter-spacing:-0.35pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">newly</font><font style="letter-spacing:-0.35pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">stacked</font><font style="letter-spacing:-0.35pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">vessel</font><font style="letter-spacing:-0.35pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and 2 vessel reactivations.</font></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 maintain the view that sustained improvement in day rates will require higher industry-wide utilization. With utilization improving in several markets with seasonally higher activity levels, rates have the potential to move higher, particularly given the number of currently inactive vessels that are still current with relevant classifications and that are otherwise available to work on a prompt basis.</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 regards to the quarter-end balance sheet, as mentioned on our last earnings conference call and again at the top of my remarks today,<font style="letter-spacing:-1.25pt;"> </font>balance sheet values as of June 30 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 $464 million of cash, net debt at June 30 was negative $20 million and net working capital, excluding cash was approximately $170 million. Cash provided by operating activities during the six month period ended June 30 was $17 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;">Investing activities generated approximately $7 million of cash during the six month period ended June 30, as year-to-date disposition proceeds exceeded additions to property and equipment. Financing activities used approximately $13 million of cash and primarily reflects cash paid to creditors during the March quarter pursuant to our now completed financial restructuring. As noted on previous earnings conference calls, we have no significant debt maturities until 2022.</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;">At June 30, we had unfunded capital commitments of approximately $2 million, which were satisfied with the delivery of our final vessel under construction, a 5400 deadweight ton deepwater PSV on July 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;">Looking at long-term assets, net properties and equipment, which primarily reflects the carrying value of 204 ships owned at June 30, was $787 million, which equates to approximately $4.6 million per active ship and approximately $2.2 million for stacked ship.</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:-0.25pt;"> </font>additional<font style="letter-spacing:-0.25pt;"> </font>data<font style="letter-spacing:-0.25pt;"> </font>points,<font style="letter-spacing:-0.25pt;"> </font>I<font style="letter-spacing:-0.25pt;"> </font>will<font style="letter-spacing:-0.25pt;"> </font>further<font style="letter-spacing:-0.25pt;"> </font>note<font style="letter-spacing:-0.25pt;"> </font>that,<font style="letter-spacing:-0.25pt;"> </font>on<font style="letter-spacing:-0.25pt;"> </font>average,<font style="letter-spacing:-0.25pt;"> </font>the<font style="letter-spacing:-0.25pt;"> </font>carrying<font style="letter-spacing:-0.25pt;"> </font>value<font style="letter-spacing:-0.25pt;"> </font>of<font style="letter-spacing:-0.25pt;"> </font>our<font style="letter-spacing:-0.25pt;"> </font>41<font style="letter-spacing:-0.25pt;"> </font>deepwater<font style="letter-spacing:-0.25pt;"> </font>PSVs<font style="letter-spacing:-0.25pt;"> </font>with<font style="letter-spacing:-0.25pt;"> </font>cargo<font style="letter-spacing:-0.25pt;"> </font>carrying<font style="letter-spacing:-0.25pt;"> </font>capacity<font style="letter-spacing:-0.25pt;"> </font>above<font style="letter-spacing:-0.25pt;"> </font>3800 deadweight tons is approximately $8.6 million per vessel. 21 of those 41 vessels are less than five years old and have an average carrying value of approximately $9.5 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;">On average, the carrying value of our 66, 5,500 to 10,000 brake horsepower AHTS vessels was approximately $2.2 million. 44 of those 66 vessels are less than ten years old and, at June 30, had an average carrying value of approximately $2.5 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;">In<font style="letter-spacing:-0.15pt;"> </font>sum,<font style="letter-spacing:-0.15pt;"> </font>our<font style="letter-spacing:-0.15pt;"> </font>leverage<font style="letter-spacing:-0.15pt;"> </font>is<font style="letter-spacing:-0.15pt;"> </font>low,<font style="letter-spacing:-0.15pt;"> </font>our<font style="letter-spacing:-0.15pt;"> </font>liquidity<font style="letter-spacing:-0.15pt;"> </font>position<font style="letter-spacing:-0.15pt;"> </font>is<font style="letter-spacing:-0.15pt;"> </font>strong,<font style="letter-spacing:-0.15pt;"> </font>our<font style="letter-spacing:-0.15pt;"> </font>assets<font style="letter-spacing:-0.15pt;"> </font>are<font style="letter-spacing:-0.15pt;"> </font>carried<font style="letter-spacing:-0.15pt;"> </font>at<font style="letter-spacing:-0.15pt;"> </font>an<font style="letter-spacing:-0.15pt;"> </font>aggregate<font style="letter-spacing:-0.15pt;"> </font>value<font style="letter-spacing:-0.15pt;"> </font>that<font style="letter-spacing:-0.15pt;"> </font>we<font style="letter-spacing:-0.15pt;"> </font>believe<font style="letter-spacing:-0.15pt;"> </font>to<font style="letter-spacing:-0.15pt;"> </font>be<font style="letter-spacing:-0.15pt;"> </font>significantly<font style="letter-spacing:-0.15pt;"> </font>less<font style="letter-spacing:-0.15pt;"> </font>than both replacement cost and current market values, and we are generating both positive EBITDA and cash from operating 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;">Shareholders'<font style="letter-spacing:-1.05pt;"> </font>equity<font style="letter-spacing:-1.05pt;"> </font>at<font style="letter-spacing:-1.05pt;"> </font>June<font style="letter-spacing:-1.05pt;"> </font>30<font style="letter-spacing:-1.05pt;"> </font>was<font style="letter-spacing:-1.05pt;"> </font>approximately<font style="letter-spacing:-1.05pt;"> </font>$1<font style="letter-spacing:-1.05pt;"> </font>billion,<font style="letter-spacing:-1.05pt;"> </font>or<font style="letter-spacing:-1.05pt;"> </font>approximately<font style="letter-spacing:-1.05pt;"> </font>$32.50<font style="letter-spacing:-1.05pt;"> </font>per<font style="letter-spacing:-1.05pt;"> </font>common<font style="letter-spacing:-1.05pt;"> </font>share<font style="letter-spacing:-1.05pt;"> </font>and<font style="letter-spacing:-1.05pt;"> </font>Jones<font style="letter-spacing:-1.05pt;"> </font>Act-related<font style="letter-spacing:-1.05pt;"> </font>warrant<font style="letter-spacing:-1.05pt;"> </font><font style="letter-spacing:-0.1pt;">outstanding. </font>Based<font style="letter-spacing:-0.55pt;"> </font>on<font style="letter-spacing:-0.55pt;"> </font>our<font style="letter-spacing:-0.55pt;"> </font>closing<font style="letter-spacing:-0.55pt;"> </font>price<font style="letter-spacing:-0.55pt;"> </font>last<font style="letter-spacing:-0.55pt;"> </font>evening<font style="letter-spacing:-0.55pt;"> </font>of<font style="letter-spacing:-0.55pt;"> </font>$31.57,<font style="letter-spacing:-0.55pt;"> </font>we<font style="letter-spacing:-0.55pt;"> </font>currently<font style="letter-spacing:-0.55pt;"> </font>trade<font style="letter-spacing:-0.55pt;"> </font>at<font style="letter-spacing:-0.55pt;"> </font>a<font style="letter-spacing:-0.55pt;"> </font>modest<font style="letter-spacing:-0.55pt;"> </font>discount<font style="letter-spacing:-0.55pt;"> </font>to<font style="letter-spacing:-0.55pt;"> </font>our<font style="letter-spacing:-0.55pt;"> </font>stand-alone<font style="letter-spacing:-0.55pt;"> </font>book<font style="letter-spacing:-0.55pt;"> </font>equity,<font style="letter-spacing:-0.55pt;"> </font>which<font style="letter-spacing:-0.55pt;"> </font>obviously<font style="letter-spacing:-0.55pt;"> </font>captures none of the value that we believe can be secured through our proposed combination with GulfMark. And with that, I'll turn the call back over to John.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></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 I mentioned, we are encouraged by signs of a market recovery, with improving commodity prices, which are reflected in new contract<font style="letter-spacing:-0.15pt;"> </font>awards<font style="letter-spacing:-0.15pt;"> </font>and<font style="letter-spacing:-0.15pt;"> </font>increased<font style="letter-spacing:-0.15pt;"> </font>optimism<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>hearing<font style="letter-spacing:-0.15pt;"> </font>from<font style="letter-spacing:-0.15pt;"> </font>our<font style="letter-spacing:-0.15pt;"> </font>customers.<font style="letter-spacing:-0.15pt;"> </font>While<font style="letter-spacing:-0.15pt;"> </font>these<font style="letter-spacing:-0.15pt;"> </font>are<font style="letter-spacing:-0.15pt;"> </font>positive<font style="letter-spacing:-0.15pt;"> </font>indicators,<font style="letter-spacing:-0.15pt;"> </font>we<font style="letter-spacing:-0.15pt;"> </font>continue<font style="letter-spacing:-0.15pt;"> </font>to<font style="letter-spacing:-0.15pt;"> </font>look<font style="letter-spacing:-0.15pt;"> </font>to<font style="letter-spacing:-0.15pt;"> </font>2019 and beyond for significant improvements in demand and further rationalization of the global OSV fleet to support high utilization and average day rates.</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 taken several steps, including reducing costs, and most, recently announcing our plans to combine with GulfMark in order to better position the combined company for industry recovery that seemed to be slowly getting some traction, while ensuring that we have the right</p>
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<p style="margin-top:0pt;margin-bottom:0pt;margin-left:0.18%;text-indent:0%;color:#666666;font-size:5.5pt;font-family:Times New Roman;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>&nbsp;</p>
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<p style="margin-top:0pt;margin-bottom: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%;color:#FFFFFF;font-size:12pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">
<p style="margin-top:0pt;margin-bottom:0pt;margin-left:0.18%;text-indent:0%;color:#FFFFFF;font-size:12pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">AUGUST 14, 2018 / 3:00PM, TDW &#8211; Q2 2018 Tidewater Inc Earnings Call</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>&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 name="_AEIOULastRenderedPageBreakAEIOU6"></a><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">balance</font><font style="letter-spacing:-0.2pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">sheet</font><font style="letter-spacing:-0.2pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and</font><font style="letter-spacing:-0.2pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</font><font style="letter-spacing:-0.2pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">right</font><font style="letter-spacing:-0.2pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">global</font><font style="letter-spacing:-0.2pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">operating</font><font style="letter-spacing:-0.2pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">footprint,</font><font style="letter-spacing:-0.2pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">such</font><font style="letter-spacing:-0.2pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">that</font><font style="letter-spacing:-0.2pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">we</font><font style="letter-spacing:-0.2pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">can</font><font style="letter-spacing:-0.2pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">both</font><font style="letter-spacing:-0.2pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">weather</font><font style="letter-spacing:-0.2pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</font><font style="letter-spacing:-0.2pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">inevitable</font><font style="letter-spacing:-0.2pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">down</font><font style="letter-spacing:-0.2pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">markets</font><font style="letter-spacing:-0.2pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of</font><font style="letter-spacing:-0.2pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</font><font style="letter-spacing:-0.2pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">energy</font><font style="letter-spacing:-0.2pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">service</font><font style="letter-spacing:-0.2pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">industry and also prosper during the equally inevitable stronger markets.</font></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 near-term objectives continue to be focused on maintaining our strengths: a competitive fleet, a global operating footprint, a competitive cost structure and a financial profile that is characterized by low-leverage and a strong liquidity position.</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'm confident that the combination with GulfMark will build on these strengths and our teams will be working together over the coming months to<font style="letter-spacing:-0.15pt;"> </font>formalize<font style="letter-spacing:-0.15pt;"> </font>plans<font style="letter-spacing:-0.15pt;"> </font>to<font style="letter-spacing:-0.15pt;"> </font>integrate<font style="letter-spacing:-0.15pt;"> </font>the<font style="letter-spacing:-0.15pt;"> </font>companies,<font style="letter-spacing:-0.15pt;"> </font>to<font style="letter-spacing:-0.15pt;"> </font>quickly<font style="letter-spacing:-0.15pt;"> </font>and<font style="letter-spacing:-0.15pt;"> </font>fully<font style="letter-spacing:-0.15pt;"> </font>realize<font style="letter-spacing:-0.15pt;"> </font>the<font style="letter-spacing:-0.15pt;"> </font>expected<font style="letter-spacing:-0.15pt;"> </font>synergies,<font style="letter-spacing:-0.15pt;"> </font>and<font style="letter-spacing:-0.15pt;"> </font>to<font style="letter-spacing:-0.15pt;"> </font>create<font style="letter-spacing:-0.15pt;"> </font>significant<font style="letter-spacing:-0.15pt;"> </font>long-term<font style="letter-spacing:-0.15pt;"> </font>value<font style="letter-spacing:-0.15pt;"> </font>for<font style="letter-spacing:-0.15pt;"> </font>our respective shareholders. Thank you for joining us on the call today. And Paulette, we can now open the line for questions.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></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="QUESTIONS_AND_ANSWERS"></a><a name="1._Operator"></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;"><a name="2._Turner_Holm"></a><a name="_bookmark3"></a>(Operator Instructions) And our first question comes from Turner Holm from Clarksons Platou.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></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="3._John_T._Rynd"></a>Good morning, Gentlemen.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></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="4._Turner_Holm"></a>How are you doing?</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></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="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="5._John_T._Rynd"></a>Doing well. So John, you tal<a name="5._John_T._Rynd"></a>ked about in your prepared remarks how day rates have historically been driven by the prompt availability of vessels. And as I look at the quarter's numbers, the active utilization jumping up to 81%, which is, I guess, the highest it's been since 2014. Do you think that<font style="letter-spacing:-0.1pt;"> </font>you're<font style="letter-spacing:-0.1pt;"> </font>getting<font style="letter-spacing:-0.1pt;"> </font>close<font style="letter-spacing:-0.1pt;"> </font>to<font style="letter-spacing:-0.1pt;"> </font>being<font style="letter-spacing:-0.1pt;"> </font>able<font style="letter-spacing:-0.1pt;"> </font>to<font style="letter-spacing:-0.1pt;"> </font>pull<font style="letter-spacing:-0.1pt;"> </font>that<font style="letter-spacing:-0.1pt;"> </font>lever<font style="letter-spacing:-0.1pt;"> </font>on<font style="letter-spacing:-0.1pt;"> </font>higher<font style="letter-spacing:-0.1pt;"> </font>day<font style="letter-spacing:-0.1pt;"> </font>rates?<font style="letter-spacing:-0.1pt;"> </font>Is<font style="letter-spacing:-0.1pt;"> </font>that<font style="letter-spacing:-0.1pt;"> </font>80%<font style="letter-spacing:-0.1pt;"> </font>kind<font style="letter-spacing:-0.1pt;"> </font>of<font style="letter-spacing:-0.1pt;"> </font>a<font style="letter-spacing:-0.1pt;"> </font>fair<font style="letter-spacing:-0.1pt;"> </font>measure<font style="letter-spacing:-0.1pt;"> </font>of<font style="letter-spacing:-0.1pt;"> </font>what<font style="letter-spacing:-0.1pt;"> </font>your<font style="letter-spacing:-0.1pt;"> </font>prompt<font style="letter-spacing:-0.1pt;"> </font>availability<font style="letter-spacing:-0.1pt;"> </font>is? Is that a fair proxy for the industry? How do you kind of look at it from that perspective?</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></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;"><a name="6._Quinn_P._Fanning"></a><a name="6._Quinn_P._Fanning"></a>I think, yes and no. I think it depends on what market we're in. They're all different. So it's not -- globally, you cannot have one answer. So I think we do see some tightness in certain of our geo markets. Others still have excess capacity, like we mentioned in prepared remarks, in the Middle East with the influx of the Asian tonnage, and the Asian market is awfully oversupplied. So we think we do have some potential pricing power in certain of our markets as this utilization and prompt availability gets to where it needs to be.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></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;">I think another dynamic that you see, Turner, is financial distress amongst a lot of our competitors provides a semi-perverse incentive for them<font style="letter-spacing:-1.15pt;"> </font>to take term rates that may even be below spot rates, despite the fact that we think the market is trending in the right direction. So obviously, if the consensus<font style="letter-spacing:-0.15pt;"> is that </font>rates<font style="letter-spacing:-0.15pt;"> </font>are<font style="letter-spacing:-0.15pt;"> </font>going<font style="letter-spacing:-0.15pt;"> </font>up,<font style="letter-spacing:-0.15pt;"> </font>there<font style="letter-spacing:-0.15pt;"> </font>is<font style="letter-spacing:-0.15pt;"> </font>limited<font style="letter-spacing:-0.15pt;"> </font>incentive<font style="letter-spacing:-0.15pt;"> </font>unless<font style="letter-spacing:-0.15pt;"> </font>it's<font style="letter-spacing:-0.15pt;"> </font>a<font style="letter-spacing:-0.15pt;"> </font>customer<font style="letter-spacing:-0.15pt;"> </font>relationship-driven<font style="letter-spacing:-0.15pt;"> </font>issue<font style="letter-spacing:-0.15pt;"> </font>to<font style="letter-spacing:-0.15pt;"> </font>lock<font style="letter-spacing:-0.15pt;"> </font>in<font style="letter-spacing:-0.15pt;"> </font>rates<font style="letter-spacing:-0.15pt;"> </font>that<font style="letter-spacing:-0.15pt;"> </font>they're<font style="letter-spacing:-0.15pt;"> </font>going<font style="letter-spacing:-0.15pt;"> </font>to<font style="letter-spacing:-0.15pt;"> </font>be better tomorrow. But that's what we are seeing today, and I think one of the factors that drives that is that some of our competitors are more focused on debt service than they are on value creation.</p>
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<p style="margin-top:0pt;margin-bottom:0pt;margin-left:0.18%;text-indent:0%;color:#666666;font-size:5.5pt;font-family:Times New Roman;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>&nbsp;</p>
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<p style="margin-top:0pt;margin-bottom: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%;color:#FFFFFF;font-size:12pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">
<p style="margin-top:0pt;margin-bottom:0pt;margin-left:0.18%;text-indent:0%;color:#FFFFFF;font-size:12pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">AUGUST 14, 2018 / 3:00PM, TDW &#8211; Q2 2018 Tidewater Inc Earnings Call</p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:14.5pt;">&nbsp;</p>
<p style="line-height:1pt;margin-top:0pt;margin-bottom:0pt;margin-left:0.86%;text-indent:0%;font-size:1pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:4pt;">&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._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;">I<font style="letter-spacing:-0.5pt;"> </font>see.<font style="letter-spacing:-0.5pt;"> </font>Okay.<font style="letter-spacing:-0.5pt;"> </font>Thanks<font style="letter-spacing:-0.5pt;"> </font>for<font style="letter-spacing:-0.5pt;"> </font>that<font style="letter-spacing:-0.5pt;"> </font>Quinn.<font style="letter-spacing:-0.5pt;"> </font>You<font style="letter-spacing:-0.5pt;"> </font>also<font style="letter-spacing:-0.5pt;"> </font>touched<font style="letter-spacing:-0.5pt;"> </font>on<font style="letter-spacing:-0.5pt;"> </font>something<font style="letter-spacing:-0.5pt;"> </font>I<font style="letter-spacing:-0.5pt;"> </font>thought<font style="letter-spacing:-0.5pt;"> </font>was<font style="letter-spacing:-0.5pt;"> </font>interesting<font style="letter-spacing:-0.5pt;"> </font>in<font style="letter-spacing:-0.5pt;"> </font>prepared<font style="letter-spacing:-0.5pt;"> </font>remarks,<font style="letter-spacing:-0.5pt;"> </font>that<font style="letter-spacing:-0.5pt;"> </font>you<font style="letter-spacing:-0.5pt;"> </font>think<font style="letter-spacing:-0.5pt;"> </font>that<font style="letter-spacing:-0.5pt;"> </font>the<font style="letter-spacing:-0.5pt;"> </font>underlying asset value in Tidewater is probably higher than what it's on the books. Is there some way you can frame that? You mentioned about different classes of vessels and where they are on your books? And if you compare that to an asset transaction that's out there, or is there anyway you can kind of give us context for where you think your secondhand market value of the asset is compared to where it's in the books?</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></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="8._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="9._Operator"></a>Well, again, I think the secondhand vessel market is moving in the right direction, both in regards to depth and pricing. I did try and provide at least<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>examples<font style="letter-spacing:-0.1pt;"> </font>that<font style="letter-spacing:-0.1pt;"> </font>I<font style="letter-spacing:-0.1pt;"> </font>thought<font style="letter-spacing:-0.1pt;"> </font>you<font style="letter-spacing:-0.1pt;"> </font>and<font style="letter-spacing:-0.1pt;"> </font>people<font style="letter-spacing:-0.1pt;"> </font>like<font style="letter-spacing:-0.1pt;"> </font>you<font style="letter-spacing:-0.1pt;"> </font>could<font style="letter-spacing:-0.1pt;"> </font>translate<font style="letter-spacing:-0.1pt;"> </font>into<font style="letter-spacing:-0.1pt;"> </font>where<font style="letter-spacing:-0.1pt;"> </font>we<font style="letter-spacing:-0.1pt;"> </font>carry<font style="letter-spacing:-0.1pt;"> </font>vessels<font style="letter-spacing:-0.1pt;"> </font>relative<font style="letter-spacing:-0.1pt;"> </font>to<font style="letter-spacing:-0.1pt;"> </font>the<font style="letter-spacing:-0.1pt;"> </font>current<font style="letter-spacing:-0.1pt;"> </font>market<font style="letter-spacing:-0.1pt;"> </font>value. As an example, I mentioned the relatively new deepwater PSVs. And I think most people whether it's 3,800 or 4,000 deadweight ton, I think most people<font style="letter-spacing:-0.3pt;"> </font>would<font style="letter-spacing:-0.3pt;"> </font>say<font style="letter-spacing:-0.3pt;"> </font>that,<font style="letter-spacing:-0.3pt;"> </font>that<font style="letter-spacing:-0.3pt;"> </font>is<font style="letter-spacing:-0.3pt;"> </font>kind<font style="letter-spacing:-0.3pt;"> </font>of<font style="letter-spacing:-0.3pt;"> </font>the<font style="letter-spacing:-0.3pt;"> </font>most<font style="letter-spacing:-0.3pt;"> </font>desirous<font style="letter-spacing:-0.3pt;"> </font>equipment,<font style="letter-spacing:-0.3pt;"> </font>particularly<font style="letter-spacing:-0.3pt;"> </font>in<font style="letter-spacing:-0.3pt;"> </font>a<font style="letter-spacing:-0.3pt;"> </font>market<font style="letter-spacing:-0.3pt;"> </font>that<font style="letter-spacing:-0.3pt;"> </font>is<font style="letter-spacing:-0.3pt;"> </font>expected<font style="letter-spacing:-0.3pt;"> </font>to<font style="letter-spacing:-0.3pt;"> </font>trend<font style="letter-spacing:-0.3pt;"> </font>up<font style="letter-spacing:-0.3pt;"> </font>in<font style="letter-spacing:-0.3pt;"> </font>terms<font style="letter-spacing:-0.3pt;"> </font>of<font style="letter-spacing:-0.3pt;"> </font>drilling<font style="letter-spacing:-0.3pt;"> </font>activity, but we are obviously carrying that at $9.5 million. And my sense is that secondhand vessel values while still significantly below new construction pricing,<font style="letter-spacing:-0.2pt;"> </font>is<font style="letter-spacing:-0.2pt;"> </font>probably<font style="letter-spacing:-0.2pt;"> </font>in<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>high-teens<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>low<font style="letter-spacing:-0.2pt;"> </font>20s.<font style="letter-spacing:-0.2pt;"> </font>So<font style="letter-spacing:-0.2pt;"> </font>probably<font style="letter-spacing:-0.2pt;"> </font>2x<font style="letter-spacing:-0.2pt;"> </font>of<font style="letter-spacing:-0.2pt;"> </font>what<font style="letter-spacing:-0.2pt;"> </font>we're<font style="letter-spacing:-0.2pt;"> </font>carrying<font style="letter-spacing:-0.2pt;"> </font>those<font style="letter-spacing:-0.2pt;"> </font>vessels<font style="letter-spacing:-0.2pt;"> </font>at<font style="letter-spacing:-0.2pt;"> </font>on<font style="letter-spacing:-0.2pt;"> </font>average.<font style="letter-spacing:-0.2pt;"> </font>Obviously,<font style="letter-spacing:-0.2pt;"> </font>a<font style="letter-spacing:-0.2pt;"> </font>lot<font style="letter-spacing:-0.2pt;"> </font>gets<font style="letter-spacing:-0.2pt;"> </font>lost<font style="letter-spacing:-0.2pt;"> </font>in<font style="letter-spacing:-0.2pt;"> </font>the averages, but I would point you to the examples I provide in my prepared remarks to give you a sense of where we carry a ship versus where it's valued<font style="letter-spacing:-0.4pt;"> </font>at.<font style="letter-spacing:-0.4pt;"> </font>And<font style="letter-spacing:-0.4pt;"> </font>obviously,<font style="letter-spacing:-0.4pt;"> </font>we<font style="letter-spacing:-0.4pt;"> </font>occasionally<font style="letter-spacing:-0.4pt;"> </font>decide<font style="letter-spacing:-0.4pt;"> </font>to<font style="letter-spacing:-0.4pt;"> </font>scrap<font style="letter-spacing:-0.4pt;"> </font>or<font style="letter-spacing:-0.4pt;"> </font>sell<font style="letter-spacing:-0.4pt;"> </font>into<font style="letter-spacing:-0.4pt;"> </font>a<font style="letter-spacing:-0.4pt;"> </font>non-classed<font style="letter-spacing:-0.4pt;"> </font>market,<font style="letter-spacing:-0.4pt;"> </font>one<font style="letter-spacing:-0.4pt;"> </font>of<font style="letter-spacing:-0.4pt;"> </font>our<font style="letter-spacing:-0.4pt;"> </font>stacked<font style="letter-spacing:-0.4pt;"> </font>vessels.<font style="letter-spacing:-0.4pt;"> </font>But<font style="letter-spacing:-0.4pt;"> </font>if<font style="letter-spacing:-0.4pt;"> </font>you<font style="letter-spacing:-0.4pt;"> </font>look<font style="letter-spacing:-0.4pt;"> </font>at<font style="letter-spacing:-0.4pt;"> </font>the<font style="letter-spacing:-0.4pt;"> </font>average carrying<font style="letter-spacing:-0.15pt;"> </font>value<font style="letter-spacing:-0.15pt;"> </font>of<font style="letter-spacing:-0.15pt;"> </font>our<font style="letter-spacing:-0.15pt;"> </font>kind<font style="letter-spacing:-0.15pt;"> </font>of<font style="letter-spacing:-0.15pt;"> </font>Chevy<font style="letter-spacing:-0.15pt;"> </font>Tahoe-type<font style="letter-spacing:-0.15pt;"> </font>AHTS<font style="letter-spacing:-0.15pt;"> </font>vessels<font style="letter-spacing:-0.15pt;"> </font>at<font style="letter-spacing:-0.15pt;"> </font>a<font style="letter-spacing:-0.15pt;"> </font>couple<font style="letter-spacing:-0.15pt;"> </font>of<font style="letter-spacing:-0.15pt;"> </font>million<font style="letter-spacing:-0.15pt;"> </font>dollars<font style="letter-spacing:-0.15pt;"> </font>clearly<font style="letter-spacing:-0.15pt;"> </font>in<font style="letter-spacing:-0.15pt;"> </font>the<font style="letter-spacing:-0.15pt;"> </font>secondhand<font style="letter-spacing:-0.15pt;"> </font>vessel<font style="letter-spacing:-0.15pt;"> </font>market<font style="letter-spacing:-0.15pt;"> </font>for<font style="letter-spacing:-0.15pt;"> </font>a<font style="letter-spacing:-0.15pt;"> </font>vessel<font style="letter-spacing:-0.15pt;"> </font><a name="9._Operator"></a>that can support jackups should be 2 or 3x that. So hopefully that's a significant premium. Sorry, Paulette, go ahead.</p>
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<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="10._Quinn_P._Fanning"></a>And our next question comes from Ceki Medina from Southpaw Asset.</p>
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<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="11._Ceki_Aluf_Medina"></a><a name="_bookmark4"></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;">Hello Ceki</p>
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<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="12._John_T._Rynd"></a>Ceki Aluf Medina <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Southpaw Asset Management, LP - Partner and MD</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 there. Good quarter and congratulations.</p>
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<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._Ceki_Aluf_Medina"></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>
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<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._Quinn_P._Fanning"></a>Ceki Aluf Medina <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Southpaw Asset Management, LP - Partner and MD</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 few questions on my end. One, do you see a difference between the U.K. and the Norwegian markets?</p>
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<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="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;">You want to? Go ahead.</p>
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<p style="margin-top:0pt;margin-bottom:0pt;margin-left:0.18%;text-indent:0%;color:#666666;font-size:5.5pt;font-family:Times New Roman;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>&nbsp;</p>
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<p style="margin-top:0pt;margin-bottom: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%;color:#FFFFFF;font-size:12pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">
<p style="margin-top:0pt;margin-bottom:0pt;margin-left:0.18%;text-indent:0%;color:#FFFFFF;font-size:12pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">AUGUST 14, 2018 / 3:00PM, TDW &#8211; Q2 2018 Tidewater Inc Earnings Call</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>&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._John_T._Rynd"></a><a name="_AEIOULastRenderedPageBreakAEIOU7"></a><font style="font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;">John T. Ryn</font><font style="font-weight:bold;font-size:9pt;font-family:Myriad Pro;font-style:normal;text-transform:none;font-variant: normal;">d </font><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;">Yes, so we do. I think it's the Norwegian market's a little tighter band of providers of the equipment, and the U.K. sector tends to garner the most capacity.<font style="letter-spacing:-0.2pt;"> </font>So<font style="letter-spacing:-0.2pt;"> </font>I<font style="letter-spacing:-0.2pt;"> </font>think<font style="letter-spacing:-0.2pt;"> </font>it<font style="letter-spacing:-0.2pt;"> </font>tends<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>more<font style="letter-spacing:-0.2pt;"> </font>oversupplied.<font style="letter-spacing:-0.2pt;"> </font>Of<font style="letter-spacing:-0.2pt;"> </font>course,<font style="letter-spacing:-0.2pt;"> </font>you've<font style="letter-spacing:-0.2pt;"> </font>got<font style="letter-spacing:-0.2pt;"> </font>one<font style="letter-spacing:-0.2pt;"> </font>key<font style="letter-spacing:-0.2pt;"> </font>customer<font style="letter-spacing:-0.2pt;"> </font>in<font style="letter-spacing:-0.2pt;"> </font>Norway,<font style="letter-spacing:-0.2pt;"> </font>who<font style="letter-spacing:-0.2pt;"> </font>has<font style="letter-spacing:-0.2pt;"> </font>changed<font style="letter-spacing:-0.2pt;"> </font>their<font style="letter-spacing:-0.2pt;"> </font>contracting strategy from historically a term contract method to go in on spot. So yes, and it's also the Norway is a little higher cost than the U.K.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></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._Ceki_Aluf_Medina"></a>Ceki Aluf Medina <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Southpaw Asset Management, LP - Partner and MD</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. Okay. Quinn was just talking about the value of the vessels. Can you give some color of any activity you are seeing in the A&amp;D market for vessels? Do you see more transactions? Do see more interest? Any buyer or seller type of color would be great.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></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="17._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="18._Operator"></a>Yes, I can give you individual examples in terms of who is buying other than what you see in the public. Obviously, Standard did a couple of transactions, and we've seen onesies and twosies elsewhere, but we're active participants generally from a disposition perspective, so the trends in the secondhand vessel market are obviously relevant to us. But we certainly hear the chat around bayou and around the North Sea in terms of where<font style="letter-spacing:-0.15pt;"> </font>people<font style="letter-spacing:-0.15pt;"> </font>are<font style="letter-spacing:-0.15pt;"> </font>prepared<font style="letter-spacing:-0.15pt;"> </font>to<font style="letter-spacing:-0.15pt;"> </font>transact.<font style="letter-spacing:-0.15pt;"> </font>I<font style="letter-spacing:-0.15pt;"> </font>think<font style="letter-spacing:-0.15pt;"> </font>we<font style="letter-spacing:-0.15pt;"> </font>saw<font style="letter-spacing:-0.15pt;"> </font>high-teen<font style="letter-spacing:-0.15pt;"> </font>deepwater<font style="letter-spacing:-0.15pt;"> </font>PSV<font style="letter-spacing:-0.15pt;"> </font>transaction<font style="letter-spacing:-0.15pt;"> </font>that<font style="letter-spacing:-0.15pt;"> </font>we<font style="letter-spacing:-0.15pt;"> </font>have<font style="letter-spacing:-0.15pt;"> </font>some<font style="letter-spacing:-0.15pt;"> </font>specific<font style="letter-spacing:-0.15pt;"> </font>familiarity<font style="letter-spacing:-0.15pt;"> </font>with,<font style="letter-spacing:-0.15pt;"> </font>and<font style="letter-spacing:-0.15pt;"> </font>we're aware<font style="letter-spacing:-0.25pt;"> </font>of<font style="letter-spacing:-0.25pt;"> </font>the<font style="letter-spacing:-0.25pt;"> </font>fact<font style="letter-spacing:-0.25pt;"> </font>that<font style="letter-spacing:-0.25pt;"> </font>for<font style="letter-spacing:-0.25pt;"> </font>that<font style="letter-spacing:-0.25pt;"> </font>vessel<font style="letter-spacing:-0.25pt;"> </font>to<font style="letter-spacing:-0.25pt;"> </font>be<font style="letter-spacing:-0.25pt;"> </font>operational,<font style="letter-spacing:-0.25pt;"> </font>there<font style="letter-spacing:-0.25pt;"> </font>is<font style="letter-spacing:-0.25pt;"> </font>probably<font style="letter-spacing:-0.25pt;"> </font>a<font style="letter-spacing:-0.25pt;"> </font>couple<font style="letter-spacing:-0.25pt;"> </font>million<font style="letter-spacing:-0.25pt;"> </font>dollar<font style="letter-spacing:-0.25pt;"> </font>incremental<font style="letter-spacing:-0.25pt;"> </font>investment.<font style="letter-spacing:-0.25pt;"> </font>So<font style="letter-spacing:-0.25pt;"> </font>that<font style="letter-spacing:-0.25pt;"> </font>is<font style="letter-spacing:-0.25pt;"> </font>a<font style="letter-spacing:-0.25pt;"> </font>data<font style="letter-spacing:-0.25pt;"> </font>point,<font style="letter-spacing:-0.25pt;"> </font><a name="18._Operator"></a>but I believe has a deepwater PSV in the U.S. market with a two handle on it. I think the transaction that Hornbeck got done a couple of months ago was somewhat aberrant and kudos to Todd Hornbeck because I think the value that they got for what they paid was a very good transaction,<font style="letter-spacing:-1.25pt;"> </font>but I don't think that's where the market is today.</p>
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<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="19._Joseph_Donough_Gibney"></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 comes from Joe Gibney from Capital One.</p>
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<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._John_T._Rynd"></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;">Thanks. Good morning, Guys</p>
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<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="21._Joseph_Donough_Gibney"></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.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></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="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="22._Quinn_P._Fanning"></a><a name="22._Quinn_P._Fanning"></a>Morning. A question regionally. I appreciate all the forward regional view and color you provided. I was just trying to maybe sum that up a little bit on a quarter-over-quarter basis thinking of the worldwide fleet. So Americas is down a little bit with the Mexico term rates. You referenced Eur/Med, flat to up; Africa, flat; Asia Pac, flat to down. Is sort of the net of that, that average utilization is slightly higher quarter-over-quarter, rate is<font style="letter-spacing:-0.4pt;"> </font>slightly<font style="letter-spacing:-0.4pt;"> </font>lower<font style="letter-spacing:-0.4pt;"> </font>and<font style="letter-spacing:-0.4pt;"> </font>vessel<font style="letter-spacing:-0.4pt;"> </font>revenue<font style="letter-spacing:-0.4pt;"> </font>is<font style="letter-spacing:-0.4pt;"> </font>generally<font style="letter-spacing:-0.4pt;"> </font>flat.<font style="letter-spacing:-0.4pt;"> </font>I'm<font style="letter-spacing:-0.4pt;"> </font>just<font style="letter-spacing:-0.4pt;"> </font>trying<font style="letter-spacing:-0.4pt;"> </font>to<font style="letter-spacing:-0.4pt;"> </font>ascertain<font style="letter-spacing:-0.4pt;"> </font>sort<font style="letter-spacing:-0.4pt;"> </font>of<font style="letter-spacing:-0.4pt;"> </font>where<font style="letter-spacing:-0.4pt;"> </font>you're<font style="letter-spacing:-0.4pt;"> </font>triangulating<font style="letter-spacing:-0.4pt;"> </font>for<font style="letter-spacing:-0.4pt;"> </font>your<font style="letter-spacing:-0.4pt;"> </font>quarter-over-quarter<font style="letter-spacing:-0.4pt;"> </font>view on a worldwide basis?</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></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;">It's an excellent question and the reason we didn't give a consolidated view on revenue or otherwise. There's still a couple of moving pieces that John<font style="letter-spacing:-0.15pt;"> </font>tried<font style="letter-spacing:-0.15pt;"> </font>to<font style="letter-spacing:-0.15pt;"> </font>point<font style="letter-spacing:-0.15pt;"> </font>out.<font style="letter-spacing:-0.15pt;"> </font>I<font style="letter-spacing:-0.15pt;"> </font>should<font style="letter-spacing:-0.15pt;"> </font>say<font style="letter-spacing:-0.15pt;"> </font>that<font style="letter-spacing:-0.15pt;"> </font>there<font style="letter-spacing:-0.15pt;"> </font>are<font style="letter-spacing:-0.15pt;"> </font>markets<font style="letter-spacing:-0.15pt;"> </font>wherever<font style="letter-spacing:-0.15pt;"> </font>we<font style="letter-spacing:-0.15pt;"> </font>see<font style="letter-spacing:-0.15pt;"> </font>a<font style="letter-spacing:-0.15pt;"> </font>trend<font style="letter-spacing:-0.15pt;"> </font>and<font style="letter-spacing:-0.15pt;"> </font>we<font style="letter-spacing:-0.15pt;"> </font>would<font style="letter-spacing:-0.15pt;"> </font>point<font style="letter-spacing:-0.15pt;"> </font>to<font style="letter-spacing:-0.15pt;"> </font>Saudi<font style="letter-spacing:-0.15pt;"> </font>the<font style="letter-spacing:-0.15pt;"> </font>Mexico.<font style="letter-spacing:-0.15pt;"> </font>Not<font style="letter-spacing:-0.15pt;"> </font>necessarily<font style="letter-spacing:-0.15pt;"> </font>from a<font style="letter-spacing:-1.05pt;"> </font>demand<font style="letter-spacing:-1.05pt;"> </font>perspective<font style="letter-spacing:-1.05pt;"> </font>or<font style="letter-spacing:-1.05pt;"> </font>from<font style="letter-spacing:-1.05pt;"> </font>a<font style="letter-spacing:-1.05pt;"> </font>utilization<font style="letter-spacing:-1.05pt;"> </font>perspective,<font style="letter-spacing:-1.05pt;"> </font>but<font style="letter-spacing:-1.05pt;"> </font>from<font style="letter-spacing:-1.05pt;"> </font>a<font style="letter-spacing:-1.05pt;"> </font>rate<font style="letter-spacing:-1.05pt;"> </font>perspective<font style="letter-spacing:-1.05pt;"> </font>is<font style="letter-spacing:-1.05pt;"> </font>trending<font style="letter-spacing:-1.05pt;"> </font>negatively.<font style="letter-spacing:-1.05pt;"> </font>So<font style="letter-spacing:-1.05pt;"> </font>that<font style="letter-spacing:-1.05pt;"> </font>will<font style="letter-spacing:-1.05pt;"> </font>be<font style="letter-spacing:-1.05pt;"> </font>a<font style="letter-spacing:-1.05pt;"> </font>negative<font style="letter-spacing:-1.05pt;"> </font>quarter-to-quarter</p>
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<p style="margin-top:0pt;margin-bottom: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%;color:#FFFFFF;font-size:12pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">
<p style="margin-top:0pt;margin-bottom:0pt;margin-left:0.18%;text-indent:0%;color:#FFFFFF;font-size:12pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">AUGUST 14, 2018 / 3:00PM, TDW &#8211; Q2 2018 Tidewater Inc Earnings Call</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></p>
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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;"><a name="_AEIOULastRenderedPageBreakAEIOU8"></a><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and</font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> all things being equal. That would've taken consolidated vessel revenue down a couple million dollars bucks per market. On the other hand, you've got positive momentum it seems in rates in the North Sea and at least we see a relatively good market from a </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">supply-demand dynamic perspective along the African coast. But I guess I would say, the quarter-over-quarter on a consolidated basis would be flat to down, but very modestly,</font><font style="letter-spacing:-0.25pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">with</font><font style="letter-spacing:-0.25pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</font><font style="letter-spacing:-0.25pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">ability</font><font style="letter-spacing:-0.25pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to</font><font style="letter-spacing:-0.25pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">be</font><font style="letter-spacing:-0.25pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">flat</font><font style="letter-spacing:-0.25pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to</font><font style="letter-spacing:-0.25pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">modestly</font><font style="letter-spacing:-0.25pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">up</font><font style="letter-spacing:-0.25pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">depending</font><font style="letter-spacing:-0.25pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">upon</font><font style="letter-spacing:-0.25pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">rates</font><font style="letter-spacing:-0.25pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in</font><font style="letter-spacing:-0.25pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</font><font style="letter-spacing:-0.25pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">North</font><font style="letter-spacing:-0.25pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Sea,</font><font style="letter-spacing:-0.25pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">utilization</font><font style="letter-spacing:-0.25pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and</font><font style="letter-spacing:-0.25pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">rates</font><font style="letter-spacing:-0.25pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">along</font><font style="letter-spacing:-0.25pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</font><font style="letter-spacing:-0.25pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">African</font><font style="letter-spacing:-0.25pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">coast</font><font style="letter-spacing:-0.25pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and</font><font style="letter-spacing:-0.25pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">there's a couple of specific projects that we're involved with that could get extended based on customers' drilling results. So I guess, our perspective is, this</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">is</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">what</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">we</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">know</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">today,</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">kind</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">known</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">an</font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">d</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">unknowns</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">that</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">we</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">know</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">today</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">give</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">us</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">a</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">modest</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">bias</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">a</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">negative</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">quarter-over-quarter</font><font style="letter-spacing:-0.5pt;"> </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">revenue trend. But we can certainly point to three or four items that could result in it being flat to modestly up. It's not going to be dramatically up or dramatically </font><font style="font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">down is our view because we do have pretty good visibility on our contract cover through the end of year, and we also have pretty decent visibility on projects that we're kind of around the water cooler on.</font></p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></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="23._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;"><a name="24._John_T._Rynd"></a>Okay, understood. And maybe just a little more color and thoughts around Mexico. Some of the moving dynamics there as it pertains to thinking about<font style="letter-spacing:-0.1pt;"> </font>the<font style="letter-spacing:-0.1pt;"> </font>Americas<font style="letter-spacing:-0.1pt;"> </font>and<font style="letter-spacing:-0.1pt;"> </font>may<font style="letter-spacing:-0.1pt;"> </font>seasonally<font style="letter-spacing:-0.1pt;"> </font>Gulf<font style="letter-spacing:-0.1pt;"> </font>of<font style="letter-spacing:-0.1pt;"> </font>Mexico,<font style="letter-spacing:-0.1pt;"> </font>maybe<font style="letter-spacing:-0.1pt;"> </font>tightening<font style="letter-spacing:-0.1pt;"> </font>up<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>as<font style="letter-spacing:-0.1pt;"> </font>we<font style="letter-spacing:-0.1pt;"> </font>get<font style="letter-spacing:-0.1pt;"> </font>into<font style="letter-spacing:-0.1pt;"> </font>3Q,<font style="letter-spacing:-0.1pt;"> </font>but<font style="letter-spacing:-0.1pt;"> </font>maybe<font style="letter-spacing:-0.1pt;"> </font>help<font style="letter-spacing:-0.1pt;"> </font>us<font style="letter-spacing:-0.1pt;"> </font>understand<font style="letter-spacing:-0.1pt;"> </font>some<font style="letter-spacing:-0.1pt;"> </font>of the<font style="letter-spacing:-0.4pt;"> </font>moving<font style="letter-spacing:-0.4pt;"> </font>pieces<font style="letter-spacing:-0.4pt;"> </font>on<font style="letter-spacing:-0.4pt;"> </font>Mexico<font style="letter-spacing:-0.4pt;"> </font>and<font style="letter-spacing:-0.4pt;"> </font>what<font style="letter-spacing:-0.4pt;"> </font>maybe<font style="letter-spacing:-0.4pt;"> </font>is<font style="letter-spacing:-0.4pt;"> </font>required<font style="letter-spacing:-0.4pt;"> </font>to<font style="letter-spacing:-0.4pt;"> </font>get<font style="letter-spacing:-0.4pt;"> </font>that<font style="letter-spacing:-0.4pt;"> </font>market<font style="letter-spacing:-0.4pt;"> </font>moving<font style="letter-spacing:-0.4pt;"> </font>outside<font style="letter-spacing:-0.4pt;"> </font>or<font style="letter-spacing:-0.4pt;"> </font>tendering<font style="letter-spacing:-0.4pt;"> </font>pickup<font style="letter-spacing:-0.4pt;"> </font>on<font style="letter-spacing:-0.4pt;"> </font>the<font style="letter-spacing:-0.4pt;"> </font>deepwater<font style="letter-spacing:-0.4pt;"> </font>side<font style="letter-spacing:-0.4pt;"> </font>that<font style="letter-spacing:-0.4pt;"> </font><a name="24._John_T._Rynd"></a>we're all certainly waiting for, just curious on some perspective there. I appreciate it.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></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;"><a name="25._Quinn_P._Fanning"></a>Well,<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>know<font style="letter-spacing:-0.05pt;"> </font>that,<font style="letter-spacing:-0.05pt;"> </font>Joe.<font style="letter-spacing:-0.05pt;"> </font>We<font style="letter-spacing:-0.05pt;"> </font>need<font style="letter-spacing:-0.05pt;"> </font>the<font style="letter-spacing:-0.05pt;"> </font>IOCs<font style="letter-spacing:-0.05pt;"> </font>to<font style="letter-spacing:-0.05pt;"> </font>get<font style="letter-spacing:-0.05pt;"> </font>active.<font style="letter-spacing:-0.05pt;"> </font>It's<font style="letter-spacing:-0.05pt;"> </font>really<font style="letter-spacing:-0.05pt;"> </font>going<font style="letter-spacing:-0.05pt;"> </font>to<font style="letter-spacing:-0.05pt;"> </font>be<font style="letter-spacing:-0.05pt;"> </font>the<font style="letter-spacing:-0.05pt;"> </font>changer<font style="letter-spacing:-0.05pt;"> </font>down<font style="letter-spacing:-0.05pt;"> </font>there.<font style="letter-spacing:-0.05pt;"> </font>Pemex<font style="letter-spacing:-0.05pt;"> </font>retendered<font style="letter-spacing:-0.05pt;"> </font>for<font style="letter-spacing:-0.05pt;"> </font>a<font style="letter-spacing:-0.05pt;"> </font>big<font style="letter-spacing:-0.05pt;"> </font><a name="25._Quinn_P._Fanning"></a>chunk of their fleet and given the condition around the world in the OSV market, those rates were down, hence our guidance on the low revenue side for<font style="letter-spacing:-0.1pt;"> </font>Mexico.<font style="letter-spacing:-0.1pt;"> </font>But<font style="letter-spacing:-0.1pt;"> </font>I<font style="letter-spacing:-0.1pt;"> </font>think,<font style="letter-spacing:-0.1pt;"> </font>again,<font style="letter-spacing:-0.1pt;"> </font>strong<font style="letter-spacing:-0.1pt;"> </font>commodity<font style="letter-spacing:-0.1pt;"> </font>price<font style="letter-spacing:-0.1pt;"> </font>backdrop<font style="letter-spacing:-0.1pt;"> </font>also<font style="letter-spacing:-0.1pt;"> </font>helps<font style="letter-spacing:-0.1pt;"> </font>Pemex<font style="letter-spacing:-0.1pt;"> </font>and<font style="letter-spacing:-0.1pt;"> </font>their<font style="letter-spacing:-0.1pt;"> </font>budgeting<font style="letter-spacing:-0.1pt;"> </font>process<font style="letter-spacing:-0.1pt;"> </font>as<font style="letter-spacing:-0.1pt;"> </font>well<font style="letter-spacing:-0.1pt;"> </font>as<font style="letter-spacing:-0.1pt;"> </font>we<font style="letter-spacing:-0.1pt;"> </font>see<font style="letter-spacing:-0.1pt;"> </font>the<font style="letter-spacing:-0.1pt;"> </font>IOCs<font style="letter-spacing:-0.1pt;"> </font>move<font style="letter-spacing:-0.1pt;"> </font>in and start to drill the deepwater wells. I think it's that kind of both that combination of both that's going to help get that a little more healthy.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></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="26._Operator"></a>And political situation in Mexico has actually changed over the last couple of months, which is probably a good news, bad news story in some regards that Pemex has probably got a stronger hand with a more leftist government. But at leas<a name="26._Operator"></a>t they're saying the right things in terms of the long-term commitment to deepwater drilling and IOC participation, but that has not materialized and we hope it will, but actually, other than the retendering exercise and the impact on pricing, it's good to see that Pemex seems to have budget authorization through year-end. And certainly with<font style="letter-spacing:-0.2pt;"> </font>a<font style="letter-spacing:-0.2pt;"> </font>leftist<font style="letter-spacing:-0.2pt;"> </font>government,<font style="letter-spacing:-0.2pt;"> </font>Pemex<font style="letter-spacing:-0.2pt;"> </font>is<font style="letter-spacing:-0.2pt;"> </font>probably<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>in<font style="letter-spacing:-0.2pt;"> </font>a<font style="letter-spacing:-0.2pt;"> </font>better<font style="letter-spacing:-0.2pt;"> </font>position<font style="letter-spacing:-0.2pt;"> </font>than<font style="letter-spacing:-0.2pt;"> </font>they<font style="letter-spacing:-0.2pt;"> </font>would<font style="letter-spacing:-0.2pt;"> </font>have<font style="letter-spacing:-0.2pt;"> </font>with<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>rightist<font style="letter-spacing:-0.2pt;"> </font>government,<font style="letter-spacing:-0.2pt;"> </font>at<font style="letter-spacing:-0.2pt;"> </font>least<font style="letter-spacing:-0.2pt;"> </font>from<font style="letter-spacing:-0.2pt;"> </font>the cheap seat view that we have.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></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._Jason_Stanley"></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;">And we are showing no further questions. I will now turn the call back to Jason Stanley for closing remarks.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></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="28._Operator"></a>Jason Stanley <font style="font-style:italic;font-family:Calibri;font-weight:normal;">- Tidewater Inc. - Director of IR</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;">Thank<font style="letter-spacing:-0.6pt;"> </font>you,<font style="letter-spacing:-0.6pt;"> </font>Paulette.<font style="letter-spacing:-0.6pt;"> </font>Thanks,<font style="letter-spacing:-0.6pt;"> </font>again,<font style="letter-spacing:-0.6pt;"> </font>everybody<font style="letter-spacing:-0.6pt;"> </font>for<font style="letter-spacing:-0.6pt;"> </font>your<font style="letter-spacing:-0.6pt;"> </font>time<font style="letter-spacing:-0.6pt;"> </font>and<font style="letter-spacing:-0.6pt;"> </font>interest<font style="letter-spacing:-0.6pt;"> </font>in<font style="letter-spacing:-0.6pt;"> </font>Tidewater.<font style="letter-spacing:-0.6pt;"> </font>This<font style="letter-spacing:-0.6pt;"> </font>will<font style="letter-spacing:-0.6pt;"> </font>conclude<font style="letter-spacing:-0.6pt;"> </font>today's<font style="letter-spacing:-0.6pt;"> </font>earnings<font style="letter-spacing:-0.6pt;"> </font>conference<font style="letter-spacing:-0.6pt;"> </font>call<font style="letter-spacing:-0.6pt;"> </font>for<font style="letter-spacing:-0.6pt;"> </font>second quarter. Thank you.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9pt;font-family:Myriad Pro;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></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>
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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
