Kurtis Beckmann

Kurtis Beckmann from Pickering Energy Partners asked about the maximum operational life for the majority of PSVs in the industry, the timeline for significant upgrades or a new build cycle, and potential regions for fleet expansion or rationalization of lower-spec vessels.

Answer

Quintin Kneen, President and CEO, explained that while vessels are depreciated over 25 years, they can operate for 30-35 years with serious upgrades, which require supportive day rates. He noted the industry's current capital discipline, expecting modest to no new builds unless day rates approach $30,000. Regarding fleet strategy, Mr. Kneen mentioned regular sales of economically unviable vessels and expressed excitement about West Africa as a potential region for future expansion, in addition to the recent Brazil acquisition.

Kurtis Beckmann asked about the maximum vessel life for the majority of PSVs in the industry and the rough timeline for serious upgrades, renovations, or a full new build cycle. He also inquired about other regions where Tidewater might consider increasing its fleet and if any fleet rationalization of lower-spec boats is planned.

Answer

President and CEO Quintin Kneen explained that while vessels are depreciated over 25 years, they can operate for 30-35 years with serious upgrades. He noted that the industry is currently capital disciplined, with modest to no new builds expected in the next year, and significant building likely only if day rates approach $30,000 per day. Regarding fleet expansion, he expressed excitement about West Africa, while confirming regular sales of economically unviable vessels.