© 2024 Alpha Spread Limited. All Rights Reserved.
www.alphaspread.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on www.alphaspread.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. In no event shall Alpha Spread Limited be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on www.alphaspread.com, or relating to the use of, or inability to use, www.alphaspread.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance.
You don't have any saved screeners yet
Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.
Welcome to the Earnings Conference Call First Quarter 2018. My name is Adrian, and I'll be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] Please note the conference is being recorded.
I'll now turn the call over to Jason Stanley. Jason Stanley, you may begin.
Thank you, Adrain. Good morning, everyone, and welcome to Tidewater's earnings conference call for the period ended March 31, 2018. I'm Jason Stanley, Tidewater's Director, Investor Relations, and I would like to thank you for your time and interest in Tidewater.
With me this morning on the call are our President and CEO, John Rynd; Quinn Fanning, our Chief Financial Officer; and Bruce Lundstrom, our General Counsel and Secretary. Following a few formalities, I will turn the call over to John for his initial comments, to be followed by Quinn's financial review. John will then provide some final wrap-up comments, and we'll open the call for your questions.
During the call today, we may make certain comments that are forward-looking and not statements of historical fact. I know that you understand that there are risks, uncertainties and other factors that may cause the company's actual future performance to be materially different from as stated or implied by any comment that we may make during today's conference call.
Also during the call, we will present both GAAP and non-GAAP financial measures. The reconciliation of GAAP to non-GAAP measures is included in last evening's press release. Additional information concerning the factors that could cause actual results to differ materially from those stated or implied by the forward-looking statements may be found in the risk factors section of Tidewater's most recent Form 10-Q.
With that, I will turn the call over to John.
Thank you, Jason. Good morning everyone and thank you for joining the Tidewater call. For the first quarter of 2018, we reported a net loss of $39.2 million or $1.67 per common share on revenues of $91.5 million. The March's quarter loss included $15.2 million or $0.65 per share of foreign exchange losses. Also included are non-cash impairment charges of $6.2 million or $0.26 per common share resulting from impairment reviews undertaken during the quarter.
Note that the loss per share or adjusted loss per share is based on approximately 24 million weighted average shares outstanding and excludes our Jones Act related new credit awards. EBITDA for the quarter ended March 31 was a negative $9.9 million. This excludes asset impairment charges but includes $3 million of stock based compensation expense and the previously mentioned $15.2 million of foreign exchange losses.
Our results for the quarter continue to be driven by the ongoing weakness in the OSD market, which is yet to benefit from the steady improvement in the commodity prices. Final investment decisions for offshore projects increased in 2017 and are forecasted to further increase in 2018. While these are positive macro trends, we feel it will take some time for these commitments to support a material improvement and spending in the global OSD sector.
As I've covered during the last call we observed to pick up continuing activity and customer inquiries in the North Sea during the pre-summer season. With our exposure to the global market, we have also noticed an improvement in activity and opportunities in other areas. As you may have seen we've recently announced the transfer of two our Norwegian built PSVs to the Canadian market. To address other opportunities and backfill requirements, we'd also made the decision to activate 4 vessels. 2 in the Middle East and 2 operating in our Europe Mediterranean segment, bringing the total distributor reactivations year-to-date.
With our large global footprint, we view the markets through our wide lens and while some of the activities I just mentioned indicate there is some limited signs of improvement in some areas we continue to expect the overall markets to remain challenged for the remainder of the year and into 2019.
Our streamlining initiatives have continued to take effect through the first quarter driving down our G&A below our previously reported target of $25 million. Our team remains focused on identifying opportunities for great efficiency and everything we do without impacting our dedication to providing a safe environment for employees and high-quality services to our clients. While I am pleased with our team's progress with reducing cost, we will continue to look at the company's operating footprint and associated shore-based cost in order to identify opportunities for additional cost savings and achieve the company's near-term objectives of reaching cash flow breakeven.
With the lean and right sized global operations, in addition to the other attributes I mentioned, Tidewater is well positioned as a possible consolidator, if and when the right opportunities present themselves.
The status of our stack fleet and suitability for our customers future requirements on a region-by-region basis remains an ongoing focal point for the management team. This fleet rationalization remains a key component of our plan to be prepared for eventual market improvement wherever and whenever that may take place. You've heard from us and others in this sector about the significant overcapacity problem in the OSD sector. As the market leader we remain committed to doing our part to reduce excess vessel capacity by right sizing our fleet. Year-to-date Tidewater has disposed of 22 vessels, 15 of which were sold as scrap with an additional 6 vessels in the process of being been sold. In the last 4 years, since the beginning of the downturn, the company has disposed of 101 vessels 27 of which were sold as scrap. In the last 5 years the company has disposed of 158 vessels 56 of which were sold as scrap. We will continue to report our fleet rationalization activities on a quarterly basis.
Finally, an ongoing priority for our team is refining plans to continue to be prepared the cost effectively reactivate additional currently ideal equipment. Recognizing that the ownership of modern high specification, the currently inactive tonnage and the ability to fund reactivations when the customer can help us make the business case to do so or potential competitive advantages for Tidewater.
And now I'll turn the call over to Quinn to cover our financial performance for the quarter.
Thank you, John. Good morning everyone. As was highlighted in our earnings press release and 10-Q upon completion of our financial restructuring on July 31, 2017, the company adopted fresh start accounting and reports of financial position and results of operations through July 31 as predecessor activities. We will continue to report our financial position and results of operations subsequent to July 31 as Successor activities.
I’ll also draw your attention to financial tables included with last evenings press release. Financial results, balance sheet data with selective operating statistics are presented covering five quarters or equivalent periods, straddling both predecessor and successor activities.
Operating and financial data is also presented by asset class and based on four geographies based reporting segments, reflecting our split during the quarter of the company’s Africa Europe segment, into a European Mediterranean Sea segment and a West Africa segment.
As John noted, we have reported the net loss for the three months ended March 31, 2018 of $39.2 million or $1.67 per common share. The net loss includes $6.2 million or $0.26 per share and non-cash asset impairment charges related to 13 stacked vessels.
Financial results for the quarter also reflect $15.2 million or $0.65 per common share of foreign exchange losses, $14.8 million of which $0.63 per common share, which are included in equity and net losses of unconsolidated companies and was related to our Angola joint venture, Sonatide.
I’ll also note that anticipated foreign exchange losses in the just completed March quarter were previously disclosed as a subsequent event in our transition period Form 10-K that was filed on March 15. Also noted in our earnings press release was an updated mix of common shares and Jones Act related new creditor warrants outstanding which reflect continued conversion of new creditor warrants into common shares.
As discussed in our last earnings conference call, we consider the new creditor warrants each of which is exercisable to acquire a share of common stock at a price of $0.001 to be the economic equivalent to common shares. I call this to your attention in part to highlight as John did, that the reported loss per share is based on approximately 24 million common shares and excludes approximately 6 million in creditor warrants due to the U.S. gas anti-dilution rules.
Returning to operating results, vessel revenue investment operating margins for the quarter ended March 31, was $87.5 million and $26.1 million respectively. As a percentage of vessel revenue, vessel operating margins for the quarter was approximately 30%.
General and administrative expense excluding stock-based compensation was approximately $21 million, which is down approximately $7 million quarter-over-quarter, quarter-over-quarter trends flexible cost control measures and some unusual items in the December quarter.
As John noted, cost control and cash flow breakeven remains a focus of the management team. I suspect that run rate G&A excluding stock-based compensation will be comfortably below $25 million, as we exit 2018. It is likely however, that we will record restructuring charges at some point in 2018, related to office closures and other downsizing activity.
Consolidated EBITDA for the three months ended March 31, 2018, which again excludes $6.2 million in asset impairment charges includes $3 million of stock-based compensation expense and $15.2 million in foreign exchange losses was a negative $9.9 million. Adjusted for these two items, EBITDA for the quarter ended March 31, was approximately a positive $9.5 million, which is down for approximately $16.3 million of adjusted EBITDA in the December quarter. Tables reconciling the EBITDA to a net loss and cash provided by or used in operating activities on page 26 of our press release.
Looking at the fleet, our average owned vessels in the March quarter was 217 vessels, which is down 12 vessels from the average number of vessels for the quarter ended December 31, 2017. Average active vessels in the March quarter were 138 vessels which was down 2 vessels quarter-over-quarter. The stacked fleet at quarter end was 70 vessels or down 19 vessels quarter-over-quarter reflecting a net effective vessel disposition, newly stacked vessels and vessel reactivations.
Other than the March quarter having two fewer days and two fewer average active vessels the primary driver of operating results in the March quarter at least relative to the December quarter was utilization of the active fleet. In particular, utilization of the active fleet of 70% in the March quarter was down approximately 8 percentage points quarter-over-quarter. The quarter-over-quarter trend was most pronounced in the ton of supply fleet and as a sign for Middle East Asia-Pacific segment. The utilization of active fleet was also down and with our deepwater vessels assigned to Europe, Mediterranean Sea segment and to a lesser extent towing-supply vessels in the West Africa segment. This largely reflects additional vessels commencing drydocks in the March quarter but otherwise being ready for work. We also added a number of vessels mobilizing to new jobs including the vessels we moved to Canada that John referenced in his opening remarks. I think one of the analysts referred to this as air gap. I generally agree with that characterization, but we'll see how things playout in the June quarter subsequently.
Looking forward, while it may be premature to call it market bottomed we do expect an increased investment revenue in each of our four reporting segments in the June quarter driven primarily by vessels that were in drydock in the March quarter and that have now returned to work are expected to returned to work in the June quarter.
Second and third calendar quarters also tend to be better quarters in the Northern Hemisphere due to weather and we expect seasonal utilization if not average day rates to move up in the levels experienced in the first quarter. Most industry participants expect higher utilization in day rates in the North Sea, less appreciated is the potential for positive knockdown effects in the Mediterranean Sea, and West Africa as capacity might rank north to the summer season.
And also, to the December quarter average day rates at approximately $10,000 were relatively flat to the March quarter. As outlook, our view remains to sustained improvement in day rates will require higher industrywide utilization. That said, rates could and should move higher in those markets with seasonally higher activity levels given the relatively limited number of currently inactive vessels that are still current with relevant class certifications and that are otherwise available to work on a prompt basis.
In regards to the quarter end balance sheet, with $445 million of cash, net debt at March 31 was $4 million and net working capital excluding cash was approximately $173 million. Cash used by operating activities for the period was approximately $6 million. Cash provided by investment activities was approximately $8 million and disposition proceeds exceeded CapEx in the quarter. Cash used by financing activities in the March quarter was approximately $10 million, primarily driven by the final $8 million of required payments to creditors, made in connection to our plan of reorganization. With the long-term assets, net properties and equipment which primarily reflects the current value of 207 ships owned at March 31, was $814 million. This equates to approximately $4.6 million per active ship, and approximately $2.4 million for stacked ship.
As additional data points, I will further note that on average, the carrying value of our 41 deepwater PSVs with cargo carrying capacities above 3,800 deadweight tons is approximately $8.7 million per vessel. 21 of those 41 vessels are less than five years old and have an average carrying value of approximately $9.5 million. On average, the carrying value of our 67, 5,500 to 10,000 brake horsepower AHTS vessels was approximately $2.2 million. 45 of those 67 vessels are less than 10 years old and at March 31, had an average carrying value of approximately $2.6 million.
Shareholder's equity at March 31 on a book basis, was approximately $1 billion or approximately $33 per common share and Jones Act-related warrants outstanding, that represents rough parity with our stock closed last evening at an approximate 10% premium where the stocks opened. For those of you that focus on similar measures however, keep in mind that our balance sheet was essentially mark to market for a close restricting adoption of fresh start accounting.
And with that, I’ll turn the call back over to John.
Thanks Quinn. As Quinn mentioned based on some stability and expected utilization in average day rates over the past several quarters, we continue to feel that we may have finally reached the trough. There is also scope for improvements in average rate in some areas over the next several quarters. A constructed commodity price backdrop, recent contract awards and customer dialogue all suggests that we maybe in the early stages of a market recovery. That said, the current OSD market generally remains weak and our sense is that a recovery will be slow. As such, we remain focused on right sizing our business to be able to ongoing challenges.
As market conditions lower, we will be prepare to both reactivate currently oil equipment and pursue consolidation opportunities that create long-term value for shareholders. Our near-term objectives remain focused on maintaining our strengths, at competitive fleet at competitive cost structure and global operating footprint and a financial profile that is characterized by low leverage in a strong liquidity position.
Thank you for joining us today for the call, Adrian we can now open the line for questions.
Thank you. Now we will begin the question-and-answer session. [Operator Instructions] And our first question comes from Mike Urban from Seaport Global. Please go ahead.
So certainly, refreshing to be talking about the market recovery here for once and I think you are not alone, your peers and also the offshore driller seems to pretty strong green shoots in terms of activity, FIDs those kinds of things. Are you concerned at all as we do given the recovery or maybe even a little bit before that about that the dynamic that we've seen in some cases in the off-shore drilling space where you have certain competitors especially in the more fragmented markets trying to get ahead of the recovery and reactivating stacked vessels or things like that or even in some cases ordering newbuilds before any existing fleet or the active fleet is at a special level utilization? What have you seen at all and are concerned about that in any of your markets?
Yeah Mike, it's a fair concern. And I think we've seen it happen before. I think one difference this time potentially is a lot of vessel owners who are very cash strapped with a high debt load and may not have the ability to activate even if I wanted to. We have seen with this little uptick in the North Sea we have seen vessels reactivating into that market for the summer season. But overall, it's just something we watch very carefully but I think could be capital constrained that may defray some of the flooding that has happened in previous cycles.
Got it. And then in terms of the relative strength of the markets that you're in. You've highlighted the North Sea and then I think we've certainly seen that market recovering relatively strongly. How would you kind of rank the outlook for your other markets after that whether it's Gulf of Mexico, South Africa, Asia-Pac. How added to the relevant strength of those markets?
There has been a focus on operators and certainly benefited the owners of harsh environment rigs to focus on the North Sea. We have seen the same thing everybody else has seen, there has been vessels that moved up from the Med, there are vessels that have returned from Australia and to not just the traditional North Sea markets, we've also seen the equipment moving to the Barents Sea and then to Kara Sea, some of those are potentially Russian related projects, some American companies are going to participate in those. But at the end of the day it helps supply demand dynamics in the North Sea as equipment moves north.
But as I mentioned in my remarks I think one of the less appreciated dynamics is that vessels might head north for the summer season and improves the supply demand dynamics both of the Med and probably the northern regions of the West African Coast.
Setting aside those markets along the Atlantic basin, I think we've seen a relatively stable market list from a utilization perspective in the Middle East, it's been a good construction season Aramco has been relatively consistent in terms of number of rigs that they worked really over the last couple of years have 45 to 50 rigs and some discussion potentially moving up from there.
I think once you'd move away from those two markets it's a little bit of a -- I guess we characterized it as some good news and some bad news on a market-by-market basis that there is noise around increases in drilling activity in Brazil. I think we'll take away the approach there. A lot of issues still the work through with Petrobras and otherwise in that market. But longer term, we're relatively bullish on Mexico. The U.S. market where we haven't seen a movement up in working rigs. I think that's a market that is probably reasonably well set up for an increase in demand. But I think there is a very significant capacity issue that the market will have to work through before you see significant traction in day rates. So again, I think at this stage, which is early stage and a potential market recovery you see some positive and negative signs. And which way it leans ultimately plays out over the next couple of quarters, we and many others are pretty focused on what the customers budget is and we’ll look like as they move into that and I think many of the customers are pretty budget mode right now, but as you get into the fall, when I set 2019 budgets I think that’s really going to be where do you see the market heading from there.
And our next question comes from Joe Gibney from Capital One.
Hi, thanks, good morning guys. Just a question for you. On the reactivation side, you referenced a four of total vessels two in the Middle East, and two in to Europe Med, and I believe seven year-to-date you indicated. I was curious, is it deepwater, is this twin supply vessels and just let give us some sense on cost reactivate here obviously its palatable enough to bring them back them into the market, when are you not looking at some turmoil through the summer season, just a little bit more color there on cost to bring some of these boats out, what you are seeing maybe specifically in the Middle East and Europe Med that functions to do that outside of typical seasonality?
Yes, the type of equipment will differ as you go mark-to-market. We have -- as John mentioned moved a couple of deepwater ships across the Atlantic into the Canadian market. We backfield with the reactivations from ships for the North Sea, replacing those vessels as we move into the Middle East that’s more of a supply market, at least from Arabian Gulf, Red Sea has potentially to be deepwater market, but I would say that’s 2019 and beyond maybe even 2020 standpoint, with Aramco and others try to do and outside.
So, I want to say deepwater only led recovery or a towing-supply only, lead recovery, we are just very pleased to see some step up in activity in a couple of different markets and hopefully that's the only signs of things to come.
Got you.
Again, a lot would get loss from the averages, it may be helpful to direct you to some of the geography based operating statics disclosure at the back of our press release. If you focused on the individual markets or consolidated fleet you can see what we’re spending and the trends in that, and I think we spent $9 to $10 million on reactivations, in the just completed quarter that's probably up $5 million to $6 million from the previous quarter, but that’s going to bounce around as you suspect based on schedule dry docks and our perception of the economics of reactivation. I think John makes the right point, which is the customers have to help us make the business case reactivate equipment if they can do that, I think Tidewater is in a unique position to funds reactivations and we’re probably in a better position than anybody to throw more iron at the recovery market. And in that sense, we’ve probably got organic growth opportunities that others may not have.
Sure, understood. On the resale market, just curious on exclusive of vessels being sold to scrap, are you seeing a lift in other assets prices for sale for quality tonnage, are you beginning to see some movement on that side of the fence, just kind of curious some perspective bearing outside of the scrap market, what are some of the puts and takes on there on asset pricing.
I am going to let others comment on the trend in second hand vessel pricing, it's kind of like you make utilization before you can see a traction at day rates. I say it's positive from my perspective you have seen more transaction in the S&P market. I wouldn't say that there has been a dramatic movement if you normalized type of assets that are being sold in overall second-hand vessel pricing but clearly more transactions and more interest in this space should lead to higher prices, and I think that's been addressed in some other folks' calls. I wouldn’t disagree with those characterizations but I think it's a very limited number of datapoints at this point.
Okay fair enough. And last one for me, Quinn. Just on G&A well understood on a company below $25 million on solid 1Q posting. But you sound like you intimidated that there are a few puts and takes one times in the quarter that maybe don’t refer to 2Q. So I mean is 2Q normally higher at stock-based compensation expense, just trying to rationalize there on the forward...
I know I've taken a different point Joe, I'm sorry. We had some unusual items in the December quarter and as we've run the comparison of the March quarter to December quarter made for a more positive quarter-over-quarter trend. And I think I would want people to extrapolate. But I think if you look at quarters G&A ex-stock-based compensation expense which potentially creates volatility as the share price moves around, you're at $21 million which again puts us strong -- flow the $25 million target articulated in previous calls and I'm comfortable that we'll remain at around that level on a go forward basis.
The other comment I made is that we continue to look at ways to reorganize the business and that's just -- reduce cost but create scope to margin expansion in a recovery and maybe refreshing cost as we get from here to there. Most notably the possibility for having both restructuring charges related to lease liabilities and assets that we may close. So, there are some relatively detailed accounting guidance as to when you can recognize construction cost with that and we haven't met tests at this point with activities like office closings and downsizing is an ongoing part of what we're doing.
And your next question comes from Turner Holm with Clarksons. Please go ahead.
Hey Quinn. I just wanted to confirm I just want to make sure I understand you correctly. But it sounded like the issues that you saw in the first quarter numbers with regards to the Middle East segment and perhaps a few other areas impressive few other areas are mostly transitory. Is that right?
I think that's fair Turner. In fact, I probably should have given attribution on your GAAP comment. But yeah maybe the only think I just point out to in terms of statistical back up comment. I think we had 19 vessels commencing dry docks in the March quarter, that compares to 10 vessels commencing dry docks in the December quarter. That's not a perfect measure, but it gives you a sense of relative activity levels in terms of ship repairs and dry dock activity. So yeah, I think it is transitory issue. We know active utilization was down materially particularly in the ton of supply equipment in the Middle East and in the deepwater equipment in the Med and Europe. And we know the circumstances around those dry docks and many of the vessels that were in dry dock are now working or are expected to be working shortly. So, as I mentioned we're expecting a revenue trajectory in the June quarter and really every one of the four reporting segments I don't think I comment at this point in terms of magnitude of that. But I would expect that the active fleet utilization that you saw in the December quarter and prior to that is kind of the zip code that we should be in the June quarter and beyond. And I think we'll just take a wait and see approach in regards to the knock-on effects on day rates. But transitory is probably a good characterization.
Sure. No, that's helpful. And just given the nature of the business, I guess a lot of what you see the numbers in the first quarter and its frankly a reflection of what was happening late in 2017 just sort of given the rolling nature of contracts, do you have any sense based on your recent rates that you've been booking or tenders or the opportunity set that you're looking at that as we move through the year that we'll see any kind of meaningful change in the utilization or day rates what you reported in the first quarter?
I would say we're more comfortable with the positive utilization trend in the day rate trends. Sure, there's going to be markets that you and others have written on that we see interest day rates comfortably moving in the right direction and how that plays out around the globe I think is just to be seen.
Sure, fair point. And last one for me is just on a consolidation that you referenced in your prepared remarks, that John referenced in his prepared remarks. Clearly Tidewater is in a privileged position from a balance sheet perspective and also from an operating platform perspective. One of your public competitors made a move on consolidation in this quarter, albeit small. What is it that Tidewater is really looking for to sort of get comfortable to make a move like that.
Well I think my forecast of all maybe no clearer than anybody else's, but you know what we look for in an acquisition opportunity and I would characterize ourselves as aggressive window shoppers right now. We want to do something that is accretive or at least not dilutive to asset quality. We have no interest in consolidating the global stacked fleet, contract backlog while less prevalent in the OSD space and then the rig space, obviously it's a net positive. We want to do something that is ultimate not going to relever the balance sheet or to plead in any significant fashion available liquidity because I think that's an important competitive strength of Tidewater, particularly in recovery market and preserving our ability both to reactivate, just what we currently own in recovery market and potentially shifts that we would acquire an acquisition.
I think the other things that we focus on an acquisition as we've convinced ourselves over the last couple of years we’re pretty good at cutting costs. And so, if there is an acquisition that creates an opportunity to take additional G&A rather short based cost out of the system, we would view that as a positive and quite frankly, trough type consolidation is more appealing to us because the capitalized value of the synergies can be a bigger percentage of the target enterprise value. And if you do the same deal in a cyclical peak. Obviously we've got a strong balance sheet, that should be appealing to counterparties.
Okay, well thank you Quinn I appreciate it.
We had a strong stock too. So…
Turner your line is still open. Okay, we’ll move on. Our next question from Ceki Medina from Southpaw. Please go ahead.
Okay, so on Angola, can you describe what, if any, the latest changes to the AR effects regime mean for your ability to collect on the remaining of your receivables from your joint venture there?
Sure. I think it's helpful to deconstruct what is on the balance sheet on the asset side and this is laid out in the 10-Q that we just filed. The asset includes both customer AR that is reclassed to do from affiliate because of the expectation that can be collected through the joint venture. And the liability includes both commissions and other amounts that are due from Tidewater to the joint ventures. So, if you look at a net basis, within the last 4-5 quarters it's bounced around $129 million to $130 million or something like that.
When we think about what is behind even with the assets of the net assets Sonic Tide has a significant amount of cash, a portion of which is U.S. dollar denominated and a portion of which is Angola kwanza denominated. And obviously as the kwanza devalued in the March quarter from to -- I guess we concluded the quarter at 14, 24 something like that which was obviously 25% evaluation from December so we have flagged that in the 10-K and obviously we booked the charge in the March quarter.
Now really the exposure that we have generally represents legacy activity, which manifests itself in large quantity of denominated balances. And I think really protects our self on a go forward basis with the contract structure with higher U.S. dollar split so we've been successful doing that. But the other thing I would just point out and this was also detailed in the 10-Q. A number of vessels we have operated in Angola is substantially down year-over-year and certainly over the last four years I think they're down, a recollection of circa 40 vessels for a four-year period. So, from a market peak at present, the Angola operating footprint is down dramatically and I think we had 21 or 22 active vessels in Angola in just completed quarter.
So, the point of my question was does the liberalization help your collection of the remainder of the receivable? And because now the official rate is closer to if you will the street rate and there is more of a seller buyer, more balance in the dollar market that's one. And two, due to the efforts of the new President to make the country more investor friendly in your judgment make the OSD market there more active because more majors are investing in the country for oil production?
Well number one, higher oil prices will improve dollars denominated liquidity in Angola and that's a good thing. In terms of the Angolan government's initiatives which I think are reasonably well publicized particularly following the presentation of OTC we view those steps as very positive and hopefully the IOCs view them as positive as well. That said, most of the activity in Angola is production related. The number of working rigs in Angola has come down relatively significant over the last couple of years. And then I think really what you're going need to see happen is, is that the operators dial the new fiscal regimes into the thinking and ultimately make new joint commitments in Angola and obviously the knock-on effects will be significant and positive we hope for the OC operators ourselves included. But I think, you know, it's a process and at least from our perspective it's a process that seems to be moving in the right direction.
Okay. And my last question is, your major competitor in Angola and really around the world, announced some debt restructuring earlier in the month. Have you seen any effects of it in the markets that you compete?
No, I would say on a day to day competitive basis in any market, you are referring obviously Bourbon. Bourbon is a big company with a high-quality fleet. Obviously, they have a somewhat different financial profile than we do which will create issues for them we assume on a go forward basis. But I don't want to disparage a customer or a competitor for bonds to find company with a high-quality asset base, but they have issues to work through on their balance sheets. So, we've largely put behind us.
And we have no further questions at this time. I'll turn the call back over to Jason Stanley for final remarks.
Okay, well thank you Adrian, and thank you everybody for your time and interest in Tidewater. With that, we'll conclude today's earnings call.
Thank you. Ladies and gentlemen, this concludes today's conference. Thank you for participating. You may now disconnect.