Tidewater has expressed optimism toward the offshore oil and gas markets into next year after higher day rates led to improved third-quarter earnings.
On Monday, the New York-listed offshore vessel owner reported $26.2m in net profit for the quarter, up substantially from $5.38m in net profit for the same period last year.
Third-quarter revenue came in at $299m, up from $192m a year earlier, primarily due to Tidewater’s average day rates improving to nearly $17,900 during the quarter from nearly $16,100 per day a year earlier.
Tidewater said in its 10Q, a quarterly document filed with the US Securities and Exchange Commission that gives a comprehensive look at earnings, that the company expects the market to “remain favourable” into 2024, despite forecasting volatile energy prices.
“As we look forward into the remainder of 2023 and 2024, we expect the supply-demand balance in the global offshore oil and gas markets to continue to be favorable for ongoing offshore activities by the major oil and gas producers,” it said in its 10Q filed on Monday.
The New Orleans-headquartered outfit based its optimistic outlook on continued international demand growth for hydrocarbons, Opec+ maintaining stable oil prices and tight supply of offshore vessels.
“Energy prices are expected to remain volatile for the remainder of 2023 and into 2024 due to ongoing geopolitical conflicts, global inflationary trends and associated actions from central banks as well as uncertainties surrounding the growth rates expected in key world economies,” Tidewater said.
Tidewater also based its optimism on earning a net profit of $59.5m for the first nine months of 2023, up from a net loss of $32.4m posted a year earlier.
Revenue for the period totalled $707m, up from $461m for the same time frame in 2022.
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