January 10, 2006
Tidewater ups earnings estimate
Tidewater Inc. (NYSE: TDW ) announced today that it expects fiscal third quarter financial results to exceed current earnings expectations.
For the three months ended December 31, 2005, the company is currently estimating diluted earnings per share between $1.02 - $1.06. The Thomson First Call consensus estimate is currently $0.87 per share.
The increase in estimated earnings is resulting from improved average vessel utilization and dayrates in the company's Gulf of Mexico operations and several of its international operations.
Tidewater estimates that, due to these better average utilizations and dayrates, revenue from its domestic vessel operations will be up by approximately $10 million and revenue from its international vessel operations will be up approximately $17 to $20 million as compared to revenues in the quarter ended September 30, 2005.
Worldwide vessel operating costs are expected to be in line with prior guidance of $103 to $105 million, which is slightly lower than September 30, 2005 quarterly totals.
G&A expense is expected to be higher than the prior quarter, primarily due to additional employee related costs, including a recently adopted Board of Director-approved employee assistance program for personal uninsured losses related to hurricanes Katrina and Rita.
Tidewater's Chairman, President and CEO, Dean Taylor, commented, "We hope that our shareholders will be pleased to see that our ability to manage operating costs concurrent with steadily increasing demand for our vessels is producing such positive financial results. Demand for our vessels does not appear to be abating. We will continue to focus on keeping our operating costs under control while maintaining the high level of safe service that our customers expect us to provide."