Summary
- Tidewater reports Q1 results.
- The company reactivates capable vessels and scraps old ones.
- 2019 is set to be a better year than 2018 for Tidewater.
Back in March, I wrote that Tidewater (TDW) was an interesting speculative be on offshore support vessel rebound. Since that time, the stock traded in a choppy fashion, but fared much better than most offshore drilling shares:
The company has recently reported its Q1 2019 earnings results, and it's high time to look at Tidewater's results.
Tidewater reported revenues of $122 million and a loss of $21 million. The company lost $3 million in operating cash flow, but got some money from asset sales and ended with roughly the same cash position as at the beginning of this year. It's important to note that the first quarter is seasonally weak, so Tidewater is clearly on the way to positive operating cash flow - a major development for the company in an industry that was hurt the most following the oil price slump and slow recovery in offshore drilling. Technically, the positive operating cash flow was reached in 2018 when the company had $4 million of positive operating cash flow, but, of course, a more significant cash flow number is required to provide material upside for the stock.
