Last month, Tidewater Inc. (NYSE:TDW), Houston, reported revenue of $345.1 million for the fourth quarter of 2024, marking an increase from $302.7 million in the same period the previous year.
The company reported that its 2024 annual revenue reached $1.35 billion, a 33% increase over the $1.01 billion reported in 2023. Net income for 2024 was $180.7 million ($3.40 per share), nearly doubling the $97.2 million ($1.84 per share) reported for 2023.
According to Tidewater president and CEO Quintin Kneen, the company benefited from a persistent supply-demand imbalance in the offshore vessel market which led to higher day rates. “The financial successes realized during 2024 can be attributed to our multi-year effort to high-grade the fleet through the disposal of older, smaller vessels and through the acquisition of younger, higher-specification vessels,” Kneen said. “Our short-term contracting strategy has allowed us to realize the day rate benefits of vessel scarcity in a healthy demand environment.”
Tidewater generated $331 million in free cash flow for 2024, which Kneen noted is a substantial increase from the previous year. $103 million of that total helped pay down required amortization on outstanding debt and $119.4 million reduced the number of shares outstanding through repurchases and tax payments related to equity compensation, the company said.
Through the company’s share repurchase program, Tidewater bought back $44.1 million in shares during the fourth quarter, which is the maximum permitted under current debt agreements. Since launching the program in late 2023, the company said its 2024 Q4 marked the largest share buyback to date.
Tidewater’s board also authorized a new $90.3 million share repurchase program as it expects a continued strong free cash flow in 2025. “Our desire to repurchase shares at current trading levels remains strong, and we will continue to take advantage of the inefficiencies we see in the market,” Kneen said.
The company anticipates a slow start to 2025 but expects improving demand fundamentals throughout the year. Revenue, gross margin, and free cash flow are projected to be similar to or slightly better than in 2024. The offshore vessel supply situation remains favorable, with limited newbuilds on order and no deliveries expected in 2025.
“We are confident that the fundamental supply and demand forces that have propelled our financial performance over the last few years remain intact,” Kneen said. “As offshore activity resumes its anticipated growth, we will be well positioned to continue driving material improvements in financial performance.”
Tidewater’s strong performance reflects the broader resilience of the maritime industry, which continues to play a critical role in global energy logistics and infrastructure.
