Tidewater (TDW) risk factors, FY2024 10-K

Risks Relating to Our Human Capital

1. 01We may be subject to additional unionization efforts, new collective bargaining agreements or work stoppages

Risks Relating to Our Indebtedness

1. 02We may not be able to generate sufficient cash flow to meet our debt service and other obligations

Risks Relating to Governmental Regulation

1. 03Changes and developments in U.S. and international tax laws and policies could adversely affect our financial results
2. 32With our extensive international operations, we are subject to certain compliance risks under the Foreign Corrupt Practices Act, the United Kingdom Bribery Act or similar worldwide anti-bribery laws
3. 33Changes to applicable laws or regulations, including any developing laws and regulations, may increase our compliance costs and operational risk
4. 34Most of our revenues and net income are generated by our operations outside of the U.S. Our effective tax rate has historically averaged approximately 30% until recent years when the decline of the oil and gas market significantly impacted our operations and overall effective tax rate
5. 35Changes in environmental regulations and evolving environmental expectations may reduce demand for hydrocarbons, increase our compliance costs, harm our reputation and adversely affect our financial results
6. 36Governments may also pass laws or regulations encouraging or mandating the use of alternative energy sources such as wind power and solar energy. These regulations could reduce demand for oil and gas and as a result, reduce demand for the services we provide our customers

Risks Relating to Information Technology and Cybersecurity

1. 04Cybersecurity attacks on any of our vessels, facilities, or those of third parties, may result in potential liability or reputational damage or otherwise adversely affect our business

Risks Relating to Our Securities

1. 05Our ability to raise capital in the future may be limited, which could make us unable to fund our capital requirements
2. 06Uncertain economic conditions may lead our customers to postpone capital spending or jeopardize our customers’ or other counterparties’ ability to perform their obligations

Risks Relating to Our Business and Industry

1. 07the price and availability of, and public sentiment regarding, alternative fuel and energy sources;
2. 08domestic and foreign tax policies, including those regarding tariffs and duties
3. 09Failure to effectively and timely address the energy transition could adversely affect our business, results of operations and cash flows
4. 10As we implement our business strategy, we face risks associated with identifying acquisition targets, integrating any acquisitions or mergers and growing the business from the acquisition, including our ability to finance any such acquisitions
5. 11We derive a significant amount of revenue from a relatively small number of customers
6. 12We may not be able to collect amounts owed to us by our customers
7. 13Our customer base has undergone consolidation and additional consolidation is possible
8. 14The high level of competition in the offshore marine service industry could negatively impact pricing for our services
9. 15The rise in production of oil and gas resources could increase supply without a commensurate growth in demand which could negatively impact oil and gas prices
10. 16Maintaining our current fleet size and configuration and acquiring vessels required for additional future growth requires significant capital
11. 17We may not be able to renew or replace expiring contracts for our vessels
12. 18Early termination of contracts on our vessels could have an adverse effect on our operations and our backlog may not be converted to actual operating results for any future period
13. 19We may record impairment charges or other losses related to our vessels
14. 20We may not be able to sell vessels because we may be unable to locate buyers with access to financing or to complete any sales on acceptable terms or within a reasonable timeframe
15. 21An increase in vessel supply without a corresponding increase in the working offshore rig count could lead to a decline in the charter day rates we can charge and negatively impact our revenue
16. 22Our insurance coverage and contractual indemnity protections may not be sufficient to protect us under all circumstances or against all risks

Risks Relating to Our International and Foreign Operations

1. 23We operate in various regions throughout the world and are exposed to many risks inherent in doing business outside the U.S., including risks associated with foreign corrupt practices laws, acts of piracy, war, terrorist attacks and international hostilities
2. 24Disruptions or disagreements with our foreign joint venture partners, could lead to an unwinding of the joint venture
3. 25Our international operations expose us to currency devaluation, exchange and conversion risk

Risks Related to Human Capital

1. 26Failure to attract and retain qualified personnel could impede our operations
2. 27Our participation in industry-wide, multi-employer, defined benefit pension plans expose us to potential future losses
3. 28Certain of our employees are covered by federal laws that may subject us to job-related claims in addition to those provided by state laws

Risks Related to Our Indebtedness

1. 29We may not be able to generate sufficient cash flow to meet our debt service and other obligations
2. 30The terms for our 8.50% Senior Secured Bonds due in 2026, the Senior Secured Term Loan, 10.375% Senior Unsecured Notes due July 2028 and the Super Senior Revolving Credit Facility Agreement due in 2026 (the Credit Facility Agreement) contain certain restrictive covenants
3. 31We may not be able to obtain debt or equity financing if and when needed with favorable terms, if at all

Risks Related to Information Technology and Cybersecurity

1. 37Cybersecurity attacks on any of our vessels, facilities, or those of third parties, may result in potential liability or reputational damage or otherwise adversely affect our business
2. 38Artificial Intelligence presents risks and challenges that can impact our business

Risks Related to Our Securities

1. 39Our common stock is subject to restrictions on foreign ownership and possible required divestiture by non-U.S. Citizen stockholders
2. 40The market price of our securities is subject to volatility
3. 41We do not currently pay cash dividends, so realizing a return on your investment depends on selling your common stock for a price greater than what you paid
4. 42Any limitations in our ability to finance future capital expenditures may limit our ability to respond to changes in customer preferences, technological change and other market conditions, which may diminish our competitive position within our sector
5. 43Certain provisions and limitations on foreign ownership in our organizational documents could delay or prevent a change of control
6. 44the availability for issuance of additional shares of common stock; and
7. 45The issuance of stock-based awards may dilute our stockholders
8. 46A limited trading market may exist for our New Creditor Warrants and GLF Creditor Warrants making it difficult to trade or obtain quotations for the warrants
9. 47We may not be able to maintain a listing of our common stock on the NYSE
10. 48Activist stockholders could divert the attention of our management team and/or negatively affect our business
11. 49Severe weather events, including extreme weather conditions associated with climate change, have in the past and may in the future adversely affect our operations and financial results