Tidewater issues positive earnings guidanceNews // January 12, 2006
Tidewater in the US has announced that it expects fiscal third quarter financial results to exceed current earnings expectations. For the three months ended December 31st 2005, the company is currently estimating diluted earnings per share of US$1.02-1.06. The Thomson First Call consensus estimate is currently US$0.87 per share.
The increase in estimated earnings is resulting from improved average vessel utilization and day rates in the company's Gulf of Mexico operations and several of its international operations.
The company estimates that, due to these better average utilizations and day rates, revenue from its domestic vessel operations will be up by approximately US$10 million and revenue from its international vessel operations will be up approximately US$17 to US$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 US$103 to US$105 million, which is slightly lower than September 30th 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 programme for personal uninsured losses related to hurricanes Katrina and Rita.
Tidewater's Chairman, President and CEO, Dean Taylor, said: "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."