Tidewater Inc. Q1 2023 Earnings Call
Ladies and gentlemen, thank you for standing by my name is Brent and I will be your conference operator today at this.
I would like to welcome everyone to the Tidewater incorporated first quarter 2023 earnings conference call.
All lines have been placed on mute to prevent any background noise.
After the Speakers' remarks, there will be a question and answer session.
If you would like to ask a question at that time simply press star followed by the number one on your telephone keypad.
If you would like to withdraw your question again press Star one thank you.
It is now my pleasure to turn today's call over to Mr. West Gotcher, Vice President of Finance and Investor Relations. Sir. Please go ahead.
Thank you Brad good morning, everyone and welcome to Tidewater as Q1 2023 earnings Conference call I'm joined on the call. This morning by our President and CEO Quintin Kneen, Our Chief Financial Officer, Sam Rubio, and our Chief commercial Officer appears Middleton.
Today's call, we'll make certain statements that are forward looking and referring to our plans and expectations.
There are risks uncertainties and other factors that may cause the company's actual performance to be materially different from that stated or implied by any comment that we are making during todays conference call.
Please refer to our most recent Form 10-K and 10-Q for additional details on these factors.
These documents are available on our website at T D W dot com or through the SEC at SEC Gov information presented on this call speaks only as of today may nine 2023. Therefore.
And therefore, you're advised that any time sensitive information may no longer be accurate at the time of any replay.
Also during the call we'll present, both GAAP and non-GAAP financial measures a reconciliation of GAAP to non-GAAP financial measures can be found on our website at T. D. W. Dot Com and is included in yesterday's press release, and now with that I'll turn the call over to Glenn.
Thank you Wes good morning, everyone and welcome to the first quarter 2023, Tidewater earnings Conference call.
Before we get into the quarterly results I want to start out the call by briefly updating you on our recently announced agreement to acquire 37 highest specification P. S fees from sole set offshore and our assessment of the recent market volatility on the outlook for our industry.
As we talked about on the call. We hosted you announced the acquisition. We are acquiring this whole sad PSV fleet for $577 million, we mentioned that we plan to finance the purchase of the acquisition through a 325 million bank facility led by Dnb incremental new debt and cash on hand.
We continue to monitor the commercial banking that debt capital alternatives to optimize the cost of capital and financial flexibility.
We are confident in our ability to finance the acquisition and expect the acquisition to close by the end of the second quarter.
So a unique aspect of the recent market volatility has been that it hasnt had an impact on chartering activity or price discussions since 2024 anytime there has been a pullback in oil price or uncertainty in the global economy. It has been used to delay chartering decisions or at the very least to reset price talk.
This has not happened this time and we take it as a good sign that our customers and more importantly, our competitors realize what the world is short of all vessel types in all geographies.
The first quarter was another positive period for the rapidly unfolding recovery in the offshore vessel market. The most important indicator of strength in our business average day rate continued its upward momentum during the first quarter with average day rates up $1100 per day sequentially.
Average day rates within the business are now up approximately $4000 per day since the recovery began around the end of 2021.
Every region in every vessel class, except for our smallest class of anchor handlers experienced modest to quite significant day rate expansion during the first quarter.
This is particularly notable as the first quarter is often the slowest quarter of the year due to seasonality in certain markets calendar year budgets and the nature of contracting by our customers.
The lack of available vessels globally against a backdrop of growing demand continued to push up global average day rates.
During the first quarter, we entered into 51 term contracts for 44 vessels. The average day rate for the contracts associated with a subset of vessels was over $21000. In this subset is a good representation of the entire fleet.
The average duration of these contracts it was about seven and a half months, which provides us the opportunity to push day rates upward again as these contracts roll off into a market that continues to tighten.
The leading edge composite average day rate of $21000 per day is 44% above the average day rate for the first quarter and a leading reason why we continue to have confidence in the revenue and vessel gross margin guidance for the year.
While day rate performance in chartering activity remained strong during the first quarter as mentioned earlier, we did experience the expected seasonality that occurs during the first quarter of the calendar year active utilization declined about one nine percentage points sequentially to 86% principally driven by seasonal factors in the north sea in the matter.
Turanian.
Further given the calendar year budgeting in chartering practices of many of our customers. We took advantage of what is generally a slower period to maximize the number of drydocks in the first quarter. So as to prepare those vessels for the busier periods. During the second third and fourth quarters of this year.
As such dry dock days were up about 41% sequentially and Drydock expense was $31 million.
Our calendar year Drydock guidance remains unchanged at $77 million.
For the first quarter revenue increased about 3% to $193 million compared to $187 million in the fourth quarter average day rate was up about 8% sequentially vessel level cash margin expanded two full percentage points to right at 40%.
Our Americas fleet led the way with an 8% sequential improvement in day rate and five percentage point improvement in active utilization with the Caribbean and Mexico sub regions, showing particular strength.
Vessel level cash margin improved considerably during the quarter up eight percentage points sequentially to just under 41%. We are quite excited about the outlook for this region, particularly the Caribbean. As this is a market that requires large vessels and continues to show material improvements in both near term and long term activity.
The recovery in the Asia Pacific Region has lagged the rest of the other global offshore geographies. However, we began to see momentum emerge in this market as well day rates were up around 32% during the quarter with significant improvements in both southeast Asia, and Australia active utilization did decline during the quarter, but.
It was principally due to intra regional mobilizations and Drydock days the.
The decline in utilization due to this frictional unemployment was more than offset by the day rate increases with revenue, increasing 15% sequentially and vessel operating margins, increasing nearly 16 percentage points to 43%.
West Africa continue to show strong day rate increases during the year Dayrates improved 6% sequentially to just over $13000 per day now up about 48% from the same period in 2022.
So level cash margin was essentially flat during the quarter as active utilization ticked down to 77% from 82% in the prior quarter.
This drop in utilization was due to a handful of vessels mobilized and within the region and an increase in dry dock days, we expect utilization to rebound through the year and we remain optimistic on the West Africa market in general a combination of significant existing activity and the regional along with new development and Greenfield activities in areas such as it may be.
Senegal and equatorial generic.
Turning to the European and Mediterranean region seasonality did play a factor during the first quarter with active utilization dropping to about eight 3% from 88% in the prior quarter revenue declined about 7% sequentially and vessel cash margin declined nearly 3%. However, the average day rate improve.
During the quarter by about 2%.
Interest line during the quarter spot day rates for anchor handler vessels showed unusual day rate strength with a few incidence of spot vessels, achieving day rates north of $150000 per day.
Signaling that general tightness in the anchor handler market you may recall, the north sea experienced the highest anchor handler rates in the industry's history during the third quarter of last year and based on the first quarter of this year, we suspect those record day rates to be tested.
Furthermore, current estimates for E&P capital spending as we enter 2024 and beyond and then in the North Sea, particularly in Norway. As a result of the recently initiated tax incentives scheme are orders of magnitude higher than their current levels given the tight vessel supply market along with substantial expected increases in demand.
We are quite optimistic for the next few years in this geography.
Lastly, turning to our middle East region during the third quarter. The average day rate improved by 2% to about $9700 per day in active utilization dropped modestly to 82, 5%.
Industrial cash margin came in right at 25% looking forward expected capital spending by the major operators. In this region continues to remain robust. This is a market where activity and capital spending have historically been fairly inelastic.
Global commodity prices.
The magnitude of spending and activity in the in the in this region as a result and in this market absorbing vessels from southeast Asia.
And as a result the.
The direct impact of additional activity in the region and the indirect benefits to areas like southeast Asia should be meaningful over the coming years.
Our G&A costs during the quarter totaled $23 5 million, which included approximately $1 4 million in professional fees and other transaction related expenses associated with this wire acquisition.
Excluding these items G&A totaled $22 1 million or about $88 million on an annualized basis as it relates to synergies pertaining to the acquisition I'm pleased to say, we have successfully integrated the acquired business into Tidewater and achieve essentially 90% of the G&A and Opex synergies, we originally anticipated when we announced the trans.
In fact, the G&A synergies have been fully achieved with some additional operating expense synergies to be achieved over the remainder of 2023.
I'm thankful to our team for making this transaction and transition a big success.
Free cash flow for the quarter was $9 9 million compared to free cash flow of $53 3 million in the fourth quarter.
In prior quarters, we've talked about the build in working capital that occurs naturally ers revenue increases as well as the build that due to slower than anticipated customer collections overall working capital in the first quarter actually remained fairly flat relative to the fourth quarter. Although we remained focus on improving the accounts receivable collection times.
With our customers.
The lower cash generation during the quarter was primarily attributable to drydock in capital expenditures and about $20 million of cash tax payments given the relatively lower remaining capital spend for the rest of the year and the onetime nature of a few of the tax related items in the first quarter.
We expect our cash flow performance to materially improve over the remaining quarters of the year.
We ended the quarter with three vessels remaining in the held for sale category. We also have five vessels classify this stacked we will evaluate the possibility of reactivating any of the remaining stacked vessels for the remaining vessels held for sale. We are in active negotiations on two of the vessels and we expect to close the sale of these.
During the second quarter.
That's a layup costs were 727000 in the first quarter.
In summary, we are very pleased with the continued momentum across our geographic regions in our vessel classes during the first quarter.
And with that let me turn the call over to peers for an overview of the global markets and the company's performance with them.
Okay.
Thank you Quintin and good morning, everyone.
Last quarter, we talked about some of the availability constraints, we saw strengthening the global OSV market during 2022, and we expect those same constraints to follow through into 2023.
In line with our modern larger fleet in PSC as in ACS as we are well placed to take advantage of this continuing upturn in the market.
These larger vessel classes of PSC, and HTS and <unk>, where the supply demand balance is basically at parity with limited numbers of vessels expected to come back into the marketplace and where the barriers to entry are greater than in the smaller vessel classes.
We are also still seeing limited dry docking space globally, and significant long lead times of major equipment items, which we believe will further exacerbate the already tight supply demand balance in these larger vessel classes.
This quarter I will focus more on the demand side globally in the context of a reasonable performance in Q1, and what some of the demand drivers are expected to be going forward.
Overall, the outlook for the offshore market remains positive with effects of well set for further improvements in 2023 and beyond.
Expectations remain that offshore markets is set to tighten further in the coming months against the backdrop of continued demand side improvement and constraints investment supply driven by rising investment by the offshore E&P operators silicone dry said I expect to lift capex in 2023 by another 14% to 183.
$3 billion compared to last year.
On the rig side. According to Clarksons research Jackup demand is expected to grow by 6% in 2023 underpinned by various contract Commencements in the middle East and with floater demand projected to increase by 16% across 2023 on the back of the elevated activity in the Golden Triangle The Atlantic Basin.
In addition rig deployment in northwest Europe is expected to also increase significantly in 2024 by 21% driven primarily by offshore Norway were a record $27 billion of new Capex was committed to last year.
Overall global rig demand is projected to grow 8% in 2023, reaching 561 units by the end of 2023.
Next year rig demand is expected to increase by a further 6%, reaching 593 units by the end of 2024.
Rates for ultra deepwater floaters averaged $383000 per day during Q1 2023, an increase of 31% year on year and the highest level seen since Q1 2015.
All very positive indicators for robust future for the offshore space.
Specifically related to our own fleet, we have start to see the increase in demand in shortness in supply impact rates positively on the upside in.
And even though Q1 is historically a softer quarter the team still managed to push our fleet composite day rate up by almost $1100 per day compared to Q4, 2022, and just as impressively our composite rate jumped over $3900 per day compared to Q1 2022.
Working through our various regions and starting with Europe .
Whilst we have the normal seasonal softer quarter. The team still managed to improve our composite fleet rates compared to Q4 of 2022 from $15364 per day to $15669 per day compared to Q1 2022 rates improved by three five.
<unk> hundred $45 per day across the whole region.
The UK P&C market was a little slow to pick up in the first few months of the year, but that was offset by stronger demand for larger psc's, Norway as.
That's why it is being helped by all of us being prepared to hold rates, which all in all manage to keep the PSV market better balanced than compared to Q1 2022.
On the ACS side. We also saw positive indicators that we can expect a strong summer season again as the large break horsepower HTS market recorded leading edge day rates in Q1 coming in at over 100000 pounds per day levels, which is about 20% higher than compared to Q1 2022.
Moving to Africa, which remains our biggest region. We again are seeing rising demand across the whole continent.
Taken a focus in Angola, Namibia, Congo, and Senegal, and we expect to see the floating rig count increased by 21 units by the end of 2023 in the region.
Q1, 2023 competent fleet rates improved by $775 per day.
$12272 per day in Q4 of 2022.
Up to $13047 today.
With the majority of the day rate improvement in the quarter coming from our larger 16000, BHP class HTS and sub 900 square meter class PSV.
However, compared to Q1 2022, we sold the total composite fleet rate increased by over $4000 per day in Q1 2023 with every class of vessel contributing.
In the Middle East, Saudi Arabia remains a dominant country in the region as well as one of our key areas of focus of the fleet.
But we are also seeing an increase in activity in the region, including in India as the whole region looks to add more production.
Jackup rig demand in the middle East has grown by 29%.
Since the start of 2022 and currently stands at a record 148 units with further gains as expected as units fix last year continued to commence that contracts that day.
<unk> in the middle East projected to grow by an additional 8% for the rest of 2023.
And what is our most challenging region competition wise.
<unk> still managed to increase our total Cogs at fleet rate by 2%.
$9498 per day in Q4 of 2020 $229679 per day in Q1, 2023, which is also up over $500 per day compared to Q1 2022.
In the Americas, we saw a lot of demand in Brazil in Q1 from Petrobras with the NSE reported awarded up to 20, new PSC contracts in Q1 and with the expectation of a further 20 plus contracts to be awarded by year end.
A recurring theme of limited domestic tonnage to meet this demand we do expect to see larger psc's Acs sucked into Brazil from other regions of the world.
Elsewhere in the region Guiana, Suriname continues to see strong demand for rigs and vessels both in the first half of the ongoing solid.
In Q1 2023, our Americas fleet continued to perform strongly and the team were able to push composite feet rates by 8% from $18271 per day in Q4 2020 to up to $19794 per day in Q1, 2023, which was.
Of the $4000 per day compared to Q1 2022.
Lastly, in Asia Pacific, Malaysia, and Taiwan, and Australia, where the key drivers of demand in the region in Q1, and we expect those countries to drive demand through the rest of the year.
<unk> said, we do expect to see a rebound of sanctioning activity in the region to a seven year high of nearly $14 billion.
2024, driven by further investments in the Indonesia, Vietnam in Brunei, which will continue to tighten supply in the region as we move that beyond 2023, and then into 2024.
In Q1 2023, the Asia Pacific team also continued to perform strongly and constant rates in the region increased 32% from $17868 per day in Q4 2020 to up to $23582 per day in Q1 2023.
All in all a very impressive performance for the quarter.
Overall as mentioned by Clinton, we are very pleased with how the market has continued to move in the right direction in Q1, 2023, and we expect that positive momentum to continue into subsequent quarters with all sides in Spain that we do not see any significant slowdown in demand in any of the regions in which we operate with that I'll hand over to Sam.
Thank you.
Thank you Paris and good morning, everyone.
At this time I would like to take you through our financial results in my discussion will focus primarily on a quarter to quarter results of the first quarter of 2023 compared to the fourth quarter of 2022.
As noted in our press release filed yesterday, we reported net income of $10 7 million for the quarter or <unk> 21 per share.
In the first quarter of 2023, we generated revenue of $193 1 million compared to $186 7 million in the fourth quarter of 2022, an increase of three 4%.
Active utilization decreased marginally from 82, 5% in Q4, 'twenty, 2% to 86%.
In the current quarter average day rates increased significantly from 13 $5 54 per day in the fourth quarter to $14 six four per day in the first quarter.
Which was the main driver for the increase in revenue considering the decrease in utilization and two less operating days in the quarter.
Vessel margin percentage for Q1 increased to 40% from 38% in Q4.
Vessel margin in Q1 was $75 7 million compared to $69 6 million in Q4 2002.
Adjusted EBITDA was $59 1 million in Q1, 'twenty three compared to $51 2 million in Q4 2002.
This is a positive result, as the first quarter is traditionally the weakest quarter in our fiscal year due mainly to the seasonal weakness in the north sea.
That's all operating costs for the quarter were $115 5 million, which was the same amount in Q4 in the quarter. We saw an increase in R&M costs and fuel costs related to the mobilization of 13 vessels, which resulted in 289 mobilization days.
This increase was offset by the decrease in crew salaries and travel costs as we continue to realize synergies as part of the <unk> acquisition.
Our vessel operating costs per <unk> was $7 78 in the first quarter compared to $6 $9 45 per day in the fourth quarter.
The additional fuel costs incurred for mobile mobilizing our vessels added approximately.
$300 per day to our operating costs and a good portion of that fuel is billed back to our customer.
As mentioned previously we continued to realize identified operating synergies associated with disposal acquisition. Our original target was $25 million and to date, we have realized 80% of that goal.
We anticipate the.
The remaining synergies to be realized by the end of 2023.
As we look to the remainder of the year based on our most recent forecast we continue to estimate total 2023 revenues.
To be in the range of $890 million to $910 million and our vessel margins to be between 49% and 51%.
In the quarter, we sold five vessels all of our assets held for sale all of our assets held for sale for net proceeds of $5 4 million and recorded a net gain of $1 9 million on the sale of these vessels.
We generated operating income of $24 5 million for the first quarter of <unk> 23, compared to $13 1 million in Q4 22.
The increase is due primarily to the higher revenue, coupled with lower general and administrative costs.
G&A costs for the quarter was $23 5 million $5 1 million lower than Q4 'twenty two.
G&A for the fourth quarter included $5 $2 million in transaction costs associated with the <unk> acquisition.
G&A costs in the first quarter included about $1 4 million of transaction costs legacy <unk> G&A costs for the quarter was $2 4 million, which continues to be well below our expectations of $8 $8 million per quarter.
On an annual basis.
Equates to approximately 20 million $26 million in savings, which is above our synergy targets.
We expect our G&A costs for 2023 to be approximately $87 million.
In the quarter, we incurred $31 1 million in deferred dry dock costs compared to $12 1 million in Q4.
The first quarter is traditionally our heavier drydock quarter as we take advantage of more seasonality.
The quarter spend also includes approximately $3 million in purchases pull forward for future dry docks to be performed later in the year.
In the quarter, we incurred <unk> 694, drydock days, which affected utilization by 4%.
But our thoughts for full year 2023 is still expected to be about $77 million.
In Q1, we also incurred about $8 7 million in capital expenditures related to vessel modifications, including battery installations upgrades and fuel monitoring systems.
The battery installation of approximately $3 $3 million will be reimbursed by our customer similar to the drive outspend, we incurred approximately 300000 of cost related to future projects and an additional 700000 of cost that will be reimbursed by our customer for modifications done on one of our vessels.
For the full year 2003, we expect to incur approximately $14 million in capital expenditures.
We generated $9 9 million of free cash flow for this quarter as cash flow in Q1 was affected primarily by the higher Drydock in Capex spend. In addition, we paid approximately $9 5 million in taxes related to historic slow operations of <unk>.
It's $3 1 million would be reimbursed by <unk> in Q2.
Working capital remained relatively flat for the quarter and even though we do expect to invest in working capital as revenue continues to grow we will manage as investment as tightly as possible.
We did see a higher than normal spending capex in drydock this quarter and taxes paid were also high due to the legacy spill tax statements.
We expect the cash flow performance has significantly improved prove as the business continues to accelerate.
In Q4, 2019, we began reclassifying vessels on the balance sheet from property and equipment to assets held for sale.
We have since run 88 vessels through this program at the end of Q1 'twenty three we had three vessels remaining in assets held for sale at a value of about 700000.
During the quarter as mentioned previously we sold five vessels from assets held for sale for proceeds of $5 4 million.
I would now like to focus on the performance of the regions. Our Americas region reported operating income of $8 million for the quarter compared to operating income of $3 2 million in Q4 'twenty to the.
<unk> reported revenue of $47 7 million in Q1 compared to $41 8 million in Q4.
The region operate at 31 active vessels in the quarter, which was unchanged from Q4 active utilization for the quarter was 85, 2% five percentage points higher than Q4.
Day rates increased eight 3% to 17794 per day from $18 $2 71 per day in Q4.
The improvement in operating income was due primarily to the increase in revenue.
For the first quarter, the Asia Pacific Region reported an operating profit of $5 6 million compared to an operating loss of 800000 in Q4.
The radio reported revenue of $22 million in the first quarter compared to $19 1 million in the prior quarter.
The region operating operate at 13 active vessels, which was down one vessel on average compared to Q4, the higher operating income is due to the increase in revenue coupled with the reduction in operating costs is one less vessel operator in the region.
Active utilization decreased to 77, 8% in the quarter compared to 79, 5% in Q4.
The region was impacted by 59, Drydock days contributing to a 5% reduction in utilization.
However day rates increased by 32%.
A substantial increase to $23 $5 82 per day in Q1 compared to 17868 per day in Q4.
For the first quarter to the Middle East region reported an operating loss of 344000 compared to an operating profit of 492000 in Q4.
The region remained steady quarter over quarter and reported revenue of $30 8 million in the first quarter compared to $30 6 million in the prior quarter.
The region operate at 43 vessels the same as Q4 active utilization remained the same at 83% in the quarter.
Day rates increased nine 679 per day in Q1 compared to $9 $4 98 per day in Q4.
The decrease in operating income was due primarily to the increase in operating expenses in particular higher mobilization expense.
And substitute vessel costs incurred as we modified some of our own vessels for the work in the region.
Our Europe and Mediterranean region reported operating income of $2 million in Q1 compared to operating income of $3 9 million in Q4.
The typical seasonality occurred in Q1, as we saw revenue decreased to $31 3 million compared to $33 5 million in Q4.
The region operate at 27 vessels in the quarter. The same as Q4 active utilization decreased to 83, 4% compared to 87 eight.
<unk> percent in Q4, the decrease in utilization was due to seasonality as there is less activity in order months. In addition, we had 22 additional drydock days in the quarter.
However, even with the seasonality we saw an increase in day rates of 2% to 15669 per day compared to $15 $3 64 per day in Q4.
The decline in operating income for the quarter was mainly driven by the decrease in revenue offset by slightly lower operating expenses.
Our West Africa region reported operating income of $17 2 million in Q1 compared to operating income of $18 3 million in Q4.
Revenue for Q1 was $59 5 million compared to $60 2 million in Q4 the region operating operated at 66 vessels on average in Q1, one more than in Q4.
Active utilization decreased to $76 6 million in Q1 from $81 7 million in Q4.
The region incurred 122 additional Drydock days 91, additional mobilization days in the quarter, which contributed to the decrease in utilization.
Day rates continue to increase as we saw a six 3% increase to 13000.
<unk> 47 per day in Q1 from $2 72 per day in Q4.
The slight decrease in operating income from Q4 resulted from the lower revenue.
Summary.
Pleased with our Q1 results Q1 results will typically be lower which as expected is the seasonality occurs in the north sea.
In the quarter. We also mobilized 13 vessels and had a high number of dry dock days that affected our overall results.
We are encouraged to see the continuing increases in revenue throughout the year driven by higher day rates.
During 2020 to reactivate at many of our previously stacked legacy Tidewater vessels and acquired 49 vessels with the smaller transactions.
All of which will now put us in a strong position to take advantage of the upturn in the industry.
We remain encouraged by the leading indicators, we see for the remainder of 2023 and beyond.
With that I'll turn it back over to clay.
Thank you Sam.
In closing I want to mention some of what we see for the remainder of 2023.
For the full year 2023 for legacy Tidewater, we reiterate our revenue guidance of 900 million and vessel operating margin of 50%.
We are in a unique period, where revenue will be accelerating each quarter of the year outstripping the typical impact of calendar year seasonality.
Relative to the first quarter, we anticipate revenue increasing approximately $25 million in the second quarter and $50 million in the third quarter, we have about 95% of the charter hire revenue already booked for the second quarter and about 75% for the third quarter, where we do have a vessel availability. It is in the larger PSV and larger.
Anchor handler classes and both classes, we anticipate being very strong in the third quarter.
Given the current strength of the market tight vessel supply and our outlook for the business moving forward, we feel quite confident in our outlook for the remainder of 2023 and remain excited about the ability to continue this level of incremental improvement in 2024.
And with that Brent we will open it up for questions.
At this time I would like to remind everyone in order to ask a question press star followed by the number one on your telephone keypad. If you would like to withdraw your question again Press Star one we'll pause for just a moment to compile the Q&A roster.
Your first question is from the line of <unk> <unk>.
<unk> with Fearnley Securities. Your line is open.
Hi, good morning, everyone.
Congratulation for the very strong quarter as James mentioned this analogy I had a couple of questions.
Well, let's start with the.
Thank you, Kevin Psb's to be acquired from <unk>.
And you mentioned that you are looking at different options and.
I would just wonder if you could just give a little more color on what you call.
<unk> financing.
Okay.
Thank you for the quarter.
Acceptable courses adjustment all term, but we're looking for.
The best rates in the best flexibility, we can find we're active seeking.
Seeking things in the Norwegian debt capital markets as well as in the U S debt capital markets and we'll continue to evaluate those opportunities with a bilateral type of arrangements that are also available there. So so compared to a year ago I would say that the debt capital markets are much wider open than they were even when we do.
The 2000.
'twenty one.
Refinancing on the Norwegian bonds the debt capital markets look good there has certainly been a little chaotic over the last few weeks as we've gone through those banking sector prices, but but I do feel that based on what we see out there today that we will find an acceptable.
Financing solution for those particular transactions.
Thank you Kim.
I was wondering a little bit.
Thanks, Andy you gave the guidance you reiterated the guidance when it comes to revenues than previously anticipated conference.
Yeah.
Previous calls you have mentioned that you expect and I think.
Taking day rates year on year of Val <unk> $3000 per day <unk>.
Keeping into account.
The sofa piece deeply to be acquired if you're still looking at that kind of yearly increments.
Commensal nine daily.
Oh, yes, okay. Thank.
Anticipated 94.
Yes so.
So what we see.
Would acquire was the sole sale transaction is very consistent with what we are anticipating to be the all in average day rates for the Tidewater business as we go through the remainder of 2823, so very consistent.
Sure.
They are certainly locked up into 'twenty four important in some units or 25% to 26 and so.
As a result, I expect that the overall fleets will accelerate faster than those day rates that are already locked up but by the time, we get there I'm really excited to renegotiate those contracts and roll them over in 2425, so but yes.
As I look to 2003.
No change in the guidance I see that's been locked up for a full set is very consistent with what we anticipate doing for ourselves at Tidewater stand alone.
As we go into 2025.
The fleet Thats, not locked up will probably accelerate much faster than what's already booked for cells.
Thank you.
And as you mentioned.
The strong market for anchor handlers.
Funding for give me some indication.
How much do you have available and named spot in North Sea, both Norwegian and UK site.
The second and third quarter.
Wesley.
Alright, well this one I'm going to hand on hand over peers, because he's got a lot more of a handle on F&I do so let me, let me hand, it over to Pierce for an update on what's available in North Sea.
Okay.
Sorry is that just related to the anchor handler.
Oh, yes, yes, please as well listen listen I guess, mostly John go ahead.
We're expecting another strong.
So the <unk>, we have over the items, we had in the North Sea are all on spot. So nothing is locked up.
<unk>.
Available for the whole year.
They have some work at the moment, but it's all on spot type work at the moment.
Yes.
So.
Hopefully that answers the question.
Yes. Thank you and my last one was that we noted yesterday big increase in terms of average daily to name specific.
I was just wondering if you can comment on that.
Color on that specific region.
So ill take that again.
Yes.
So primarily that.
Driven a lot by.
Vessels, which we've had fixed into Australia, and Taiwan as well.
And we saw a number of vessels also rolling off.
Some older contracts. So we were able to reset the rates, it's just a timing piece.
Piece of it will just came together at the right time I'm a little side.
Much larger PSV.
And it comes in the region. So we were able to.
Start to globalize the rates so that we start seeing the same rates with charging for vessels.
Africa for instance, we're starting to push those into other regions has fallen to Asia Pacific as well. So it all sort of came together as we went into into Q1.
Okay. Thank you and the very last thoughts from me is just if I got it correctly you said that in the question that you have and changes 51, new contracts for 44 vessels.
Yes.
At an average rate of $21000 per day.
Yeah.
Yes.
Okay, great and the leading way and leading edge rates that youre seeing at around 28.
So.
So the composite of a fleet of 21000 is a very good.
Round number for what is the leading edge for all 200 vessels.
On the larger vessels were certainly topping out even over even into the high <unk> yeah.
Okay.
Okay.
That's all for me thank you.
Thank you Anna.
There are no further questions at this time I will now turn today's call back over to Mr. Clinton Cain.
Alright, well. Thank you everyone and we look forward to updating you again in August Goodbye.
Ladies and gentlemen, thank you for participating. This concludes today's conference call you may now disconnect.
[music].
Okay.
[music].
Yes.