TDW Stock Recent News

DOVER, Del., Aug. 30, 2024 (GLOBE NEWSWIRE) -- Tidewater Utilities, Inc. (“Tidewater” or the “Company”), a wholly owned subsidiary of Middlesex Water Company (Nasdaq:MSEX) filed a request today with the Delaware Public Service Commission (PSC) for new rates in order to recover prudently incurred investments made in the last ten years to support continued regulatory compliance, enhance water quality, service reliability, security and resiliency of its water utility infrastructure assets.

Leading offshore service vessel provider Tidewater Inc. reported strong Q2/2024 results, with both top and bottom line results exceeding expectations. Revenues of $339.2 million and Adjusted EBITDA of $139.7 million represented new multi-year highs. The company's average dayrate of $21,130 moved up by 32% year-over-year and 8% sequentially. Despite the company's strong second quarter results, management lowered full-year expectations due to several drilling campaigns having been pushed out from the third into the fourth quarter.

Management anticipated longer drydock days in Q3 and several project commencements have been pushed to the right, leading to revised guidance. We believe these developments are temporary. The bull thesis remains in play given supportive market fundamentals. Markets underappreciate potential increases in day rates and utilization rates. We revised our fair value estimate on TDW from $125/share to $121/share (-3%), as smaller vessels with lower yields come into play.

Investors need to pay close attention to Tidewater (TDW) stock based on the movements in the options market lately.

Tidewater Inc. (NYSE:TDW ) Q2 2024 Results Conference Call August 7, 2024 9:00 AM ET Company Participants West Gotcher - VP, Finance & IR Quintin Kneen - President & CEO Piers Middleton - Chief Commercial Officer Samuel Rubio - CFO Conference Call Participants Magnus Anderson - Fearnley Securities Don Crist - Johnson Rice Josh Jayne - Daniel Energy Partners David Smith - Pickering Energy Partners Fredrik Stene - Clarksons Securities Greg Lewis - BTIG Jim Rollyson - Raymond James Operator Thank you for standing by. My name is Mandeep, and I'll be your operator today.

Tidewater (TDW) came out with quarterly earnings of $0.94 per share, beating the Zacks Consensus Estimate of $0.72 per share. This compares to earnings of $0.46 per share a year ago.

The market for offshore oil rigs rigs and offshore supply vessels has experienced a significant increase over the past three years, mainly driven by higher oil prices. The favorable market conditions have led to a higher demand for OSVs, leading to increased usage rates as well as daily rates across the industry.

Shipping trends with J Mintzmyer and Ed Finley-Richardson. Valuations and investor excitement compared to ship owners' cautious optimism.

Demand for OSVs will likely remain robust thanks to healthy oil prices, peaking US shale production, and lower offshore breakeven levels. Limited yard capacity, high newbuilding and secondhand prices, as well as aging global fleet will result in high day rates and utilization rates. The market is too conservative in anticipating TDW's future growth. We expect TDW to generate $1.85 billion in revenue (13% above consensus) and $1 billion in adjusted EBITDA by 2025.

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