Q3 2024 Helix Energy Solutions Group Inc Earnings Call

October 24, 2024

[music].

Thank you for standing by my name is Andrea and I will be your conference operator today at this time I would like to welcome everyone to the Q3 'twenty 'twenty four helix Energy Solutions Group, Inc.

Incorporated earnings Conference call all lines have been placed in 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. During this time simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question Press Star one again.

Okay.

Incorporated earnings Conference call all lines have been placed in used 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. During this time simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question Press Star one again.

Speaker Change: I would now like to turn the call over to Brent are yeah that Chief Accounting officer. Thank you. Please go ahead.

Brent Yeah: Good morning, everyone and thanks for joining us today on our third quarter 2024 earnings Conference call.

Speaker Change: Participating on this call for helix today are Owen Kratz, our CEO Scotty Sparks our C O O.

I would now like to turn the call over to Brent are yeah that Chief Accounting officer. Thank you. Please go ahead.

Brent Yeah: Eric <unk>, our CFO, Ken Neikirk, our general Counsel, Daniel Stewart, our Vice President commercial and.

Speaker Change: Good morning, everyone and thanks for joining us today on our third quarter 2024 earnings Conference call.

Speaker Change: And myself.

Speaker Change: Hopefully you've had an opportunity to review our press release and the related slide presentation released last night.

Speaker Change: Participating on this call for helix today are Owen Kratz, our CEO Scotty Sparks our C O O.

If you not have a copy of these materials both can be accessed through the investor Relations page on our website at www Dot helix ESG Dot com. The press release, the slides can be accessed under the news and events tab.

Eric Staff felt our CFO, Ken Neikirk, our general Counsel, Daniel Stewart, our Vice President commercial.

Speaker Change: And myself.

Speaker Change: Hopefully you've had an opportunity to review our press release and the related slide presentation released last night.

Speaker Change: Before we begin our prepared remarks, Ken Neikirk will make a statement regarding forward looking information Ken.

Brent Yeah: Have a copy of these materials both can be accessed through the Investor Relations page on our website at www Dot helix ESG Dot com.

Ken Neikirk: During this conference call, we anticipate making certain projections and forward looking statements based on our current expectations and assumptions as of today.

Brent Yeah: The press release, the slides can be accessed under the news and events tab.

Ken Neikirk: Such forward looking statements may include projections, and estimates of future events business or industry trends or business or financial results. All statements in this conference call or in the associated presentation. Other than statements of historical fact are forward looking statements and are made under the safe Harbor provisions of the private Securities Litigation Reform Act of 995.

Speaker Change: Before we begin our prepared remarks, Ken Neikirk will make a statement regarding forward looking information Ken.

Ken Neikirk: During this conference call, we anticipate making certain projections and forward looking statements based on our current expectations and assumptions as of today.

Speaker Change: Such forward looking statements may include projections, and estimates of future events business or industry trends or business or financial results. All statements in this conference call or in the associated presentation. Other than statements of historical fact are forward looking statements and are made under the safe Harbor provisions of the private Securities Litigation Reform Act of 1095 or.

Ken Neikirk: Our actual future results may differ materially from our projections and forward looking statements due to a number and variety of risks uncertainties assumptions and factors, including those set forth on slide two of our presentation and our most recently filed annual report on Form 10-K, our quarterly reports on Form 10-Q and in our other filings with the SEC you should not place undue reliance.

Ken Neikirk: Some forward looking statements and we do not undertake any duty to update any forward looking statements. We disclaim any written or oral statements made by any third party regarding the subject matter of this conference call.

Ken Neikirk: Also during this call certain non-GAAP financial disclosures may be made in accordance with SEC rules. The final slides of our presentation provide reconciliations of certain non-GAAP measures to comparable GAAP financial measures. These reconciliations along with this presentation. The earnings press release, our annual report on Form 10-K, and a replay of this broadcast will be available under the for the investors section of our web.

Ken Neikirk: On forward looking statements and we do not undertake any duty to update any forward looking statements. We disclaim any written or oral statements made by any third party regarding the subject matter of this conference call.

Ken Neikirk: Site at Www Dot helix ESG Dot com. Please remember that information on this conference call speaks only as of today October 24th 2024, and therefore, you're advised that any time sensitive information may no longer be accurate as of any replay of this call Scott.

Scott: Thanks, Ken and good morning, everyone. Thank you for joining our call today, everybody is doing well.

Site at Www Dot <unk> Dot com. Please remember that information on this conference call speaks only as of today October 24th 2024, and therefore, you're advised that any time sensitive information may no longer be accurate as of any replay of this call Scott.

Speaker Change: Good morning, we will review, our third quarter and year to date results financial performance and operations will provide our view of the current market and update our guidance for 2024.

Speaker Change: Starting with the presentation slides six and seven provide a high level summary of our results and key highlights for the quarter.

Speaker Change: Thanks, Ken and good morning, everyone. Thank you for joining our call today.

Speaker Change: The team's offshore and onshore up fold again, producing another well executed quarter.

Speaker Change: Everybody is doing well.

Speaker Change: And we will review, our third quarter and year to date results financial performance and operations.

Speaker Change: Revenues for the quarter were $342 million with a gross profit of $66 million.

Speaker Change: Provide our view of the current market and update our guidance for 2024.

Speaker Change: With results in net income was $29 5 million.

Speaker Change: Starting with the presentation slides six and seven provide a high level summary of our results and key highlights for the quarter.

Speaker Change: <unk> EBITDA was $88 million for the quarter, we had positive operating cash flow of $56 million, resulting in strong free cash flow of $53 million.

Scott: The team's offshore and onshore up phones again, producing another well executed quarter.

Speaker Change: Our cash and liquidity remains strong with cash and cash equivalents of $324 million and liquidity of 399 million.

Scott: Revenues for the quarter were $342 million with a gross profit of $66 million.

Scott: With results in net income was $29 5 million <unk>.

Speaker Change: Our financial results were negatively impacted by the significantly realizations for the Q4 thousand locations in Nigeria from the Gulf of Mexico, and the Q 7000, transferring from southeastern Australia to the northwest of Australia, 105 days in total of accounts and deferral of revenues and costs impacted the Q3 reporting.

Scott: Adjusted EBITDA was $88 million for the quarter, we had positive operating cash flow of $56 million, resulting in strong free cash flow of $53 million.

Speaker Change: Our cash and liquidity remains strong with cash and cash equivalents of $324 million and liquidity of $399 million.

Speaker Change: Our financial results were negatively impacted by the significantly realizations for the Q4 thousand locations in Nigeria from the Gulf of Mexico, and the Q 7000, transferring from South Eastern Australia to the northwest of Australia, 105 days in total of accounts and deferral of revenues and costs impacted the Q3 reporting.

Speaker Change: Additionally, we incurred higher than expected weather related downtime of approximately 12 days in shallow water abandonment due to hurricanes Francine and Helene. This caused an estimated revenue loss of up to $10 million without any significant reduction in our costs, resulting in a meaningful hit to our EBITDA.

Speaker Change: Highlights for the quarter include arrival of the Q4 thousand in Nigeria to commence a six month contract plus options strong results in robotics with high utilization performing renewables works in free regions.

Speaker Change: <unk> 7000 to northwest, Australia, and commencement of the final campaign in the region.

Speaker Change: Contracts in both the Siem helix, one and Siem helix two on long term three year contracts with Petrobras.

Speaker Change: Highlights for the quarter include arrival of the Q4 thousand in Nigeria to commence a six month contract plus options.

Speaker Change: And the key five thousands of shell for a minimum two year 175 days per year commitments plus options in the Gulf of Mexico.

Speaker Change: Strong results in robotics with high utilization performing renewables works in three regions transits of the Q 7000 to northwest, Australia and commencement of the final campaign in the region.

Speaker Change: We are excited that these new contracts added over $800 million backlog multiple years of committed utilization to our business.

Speaker Change: Contracts in both the Siem helix, one and Siem helix two on long term three year contracts with Petrobras.

Speaker Change: At quarter end state revenues were $1 billion with a gross profit of $161 million with resulting net income of $36 million.

Speaker Change: Contracts in the key five thousands of shell for a minimum two year 175 days per year commitments plus options in the Gulf of Mexico.

Year to date adjusted EBITDA was 300, sorry, it was $242 million and we had positive operating cash flow of $108 million, resulting in positive free cash flow of $98 million.

Speaker Change: We are excited that these new contracts added over 800 million of backlog multiple years of committed utilization to our business.

Speaker Change: At quarter end IH state revenues were $1 billion with a gross profit of $161 million with the resulting net income of 36 million.

Speaker Change: These key financial metrics all improved over 2023 results.

Speaker Change: Over to slide nine slide.

Speaker Change: Year to date adjusted EBITDA was 300, sorry, it was $232 million and we had positive operating cash flow of $108 million, resulting in positive free cash flow of $98 million.

Speaker Change: Slide nine provides a more detailed review of our segment results and segment utilization in.

Speaker Change: In the third quarter, we continued to operate globally with minimal operational disruption with operations in Europe Asia Pacific, Brazil Africa, the Gulf of Mexico, and the USD East Coast.

Speaker Change: These key financial metrics all improved over 2023 results.

Speaker Change: Our overall third quarter results were in line with expectations driven by our core well intervention market globally strong results of our robotics group in shallow water abandonments improved quarter over quarter. Despite the impacts of the hurricanes.

Over to slide nine slide.

Speaker Change: Slide nine provides a more detailed review of our segment results and segment utilization.

Speaker Change: Moving to slide 10, Slide 10 provides further detail about when subvention segments, we achieved strong utilization in the North sea the Gulf of Mexico, Brazil, and Australia performed very well with solid overall uptime efficiency of 19, 9% for the quarter.

Speaker Change: Our overall third quarter results were in line with expectations driven by our core well intervention markets globally strong results of our robotics group in shallow water abandonments improved quarter over quarter. Despite the impacts of the hurricanes.

Speaker Change: <unk> 7000 performed extremely well with 100% utilization working in Australia. The vessel is expected to complete work in Australia. Shortly and then commence the paid transit to Brazil for the shell decommissioning campaign, which has now been extended to a minimum 400 day contract.

Speaker Change: Moving to slide 10, Slide 10 provides further detail of our intervention segments, we achieved strong utilization in the North sea the Gulf of Mexico, Brazil, and Australia performed very well with solid overall uptime efficiency of 99% for the quarter.

Speaker Change: We had solid utilization for both units in the Gulf of Mexico with the key 4000 completion type transits in Nigeria for the Australian minimum six months foil campaign that commenced earlier this month.

Speaker Change: The accounting for the paid trends that impacted Q3 is the mobilization fees with the fed.

Speaker Change: Again, we are very pleased with the recently announced long term contracts for both the Siem helix vessels for Petrobras in Brazil, and the key five fathom for shell in the Gulf of Mexico.

Speaker Change: Solid utilization for both units in the Gulf of Mexico with the key 4000 completion type transits in Nigeria for the Australian minimum six months foil campaign that commenced earlier this month.

Speaker Change: Moving to slide 11.

Speaker Change: Slide 11 provides further detail of our robotics business robotics had another very strong quarter for visits performed at high standards operating six vessels during the quarter between Trenching RV supports insight survey work on renewables and oil and gas related projects globally.

Speaker Change: The accounting for the paid trends that impacted Q3 is the mobilization fees with the fed.

Speaker Change: Again, we are very pleased with the recently announced long term contracts for both the Siem helix vessels for Petrobras in Brazil, and the <unk> fathom for shell in the Gulf of Mexico.

Speaker Change: Moving to slide 11.

Speaker Change: Six vessels with some renewables related projects within the quarter and old vessels had strong utilization with free vessels working on trenching projects.

Speaker Change: Slide 11 provides further detail of our robotics business robotics had another very strong quarter for visits performed at high standards operating six vessels during the quarter between trenching RV support and site survey work on renewables and oil and gas related projects globally.

Speaker Change: The GC free in the North Sea Naval attrition in Europe, and the <unk> type is trenching in Taiwan, The Sheila Board alone works on various renewable related projects on the east coast and the flowers deployed for the quarter on iOS East coast undertaken renewables related trenching from a client provided vessel.

Speaker Change: Oh six vessels, what some renewables related projects within the quarter and old vessels had strong utilization with free vessels working on trenching projects.

Speaker Change: <unk> is performing very well and we expect them to have another strong year.

Speaker Change: The <unk> in the North Sea Naval attrition in Europe, and the <unk> type is trenching in Taiwan.

Speaker Change: Slide 12 provides detail of our shallow water abandonment business key free activities I've always reflect seasonal improvements I have acute see some nice to the asset classes. However, as noted the business was impacted by two hurricanes during the quarter, leading to less than expected utilization in the shallow water management business continues to experience a sluggish markets in 2024.

Speaker Change: Sheila Board alone works on various renewable related projects on the East coast and the <unk> was deployed for the quarter on iOS East coast undertaken renewables related trenching from a client provided vessel.

Speaker Change: Robotics is performing very well and we expect them to have another strong year.

Speaker Change: Slide 12 provides detail of our shallow water abandonment business key free activities I've always reflect seasonal improvements I have acute C from nice to have the asset classes. However, as noted the business was impacted by two hurricanes during the quarter, leading to less than expected utilization in the shallow water development business continues to experience a sluggish market in 2024.

Speaker Change: In Q3, we continued on the larger fulfill decommissioning projects, where the project utilizing the <unk> heavy lift barge some of the dive vessel support vessels in <unk>.

Speaker Change: Our production facilities segment was negatively impacted by the unplanned.

Speaker Change: Shifting on the Thunder Hawk field at the end of July with production remaining offline.

Speaker Change: In Q3, we continued on the larger fulfill decommissioning projects, where the project utilizing the <unk> heavy lift barge some of the dive vessel support vessels in <unk>.

Speaker Change: In summary, we had a very strong quarter and it could have been even better absent and localization of the Q4, thousands and the Q 7000, and the downtime from the weather in the Gulf of Mexico During Q3.

Speaker Change: Our production facilities segment was negatively impacted by the unplanned shut.

Speaker Change: As previously mentioned, we entered 2025 with a newly contracted well intervention assets coming off legacy contracts and entering contracts with improved market rates with a good degree of secured work for the coming years.

Speaker Change: Shifting on the Thunder Hawk field at the end of July with production remaining offline.

I would like to thank our employees for their efforts secure and a strong backlog and delivering at a high level of execution I will now turn the call over to Brent.

As previously mentioned, we entered 2025 with a newly contracted well intervention assets coming off legacy contracts and entering contracts with improved market rates. We have a good degree of secured work for the coming years.

Speaker Change: Okay.

Brent Yeah: Thanks, Scott moving to slide 14 outlines our debt instruments and key balance sheet metrics as of September 30 at.

Brent Yeah: At quarter end, we had cash of $324 million in availability under the ABL of $75 million with the resulting liquidity of $399 million.

Speaker Change: I'd like to thank our employees for their efforts secure and a strong backlog and delivering at a high level of execution I will now turn the call over to Brent.

Brent Yeah: In August we extended the terms of our ABL and increase the size of the LC basket.

Speaker Change: Okay.

Speaker Change: Thanks, Scott moving to slide 14 outlines our debt instruments and key balance sheet metrics as of September 30 at.

Brent Yeah: Our ABL availability decrease in Q3 due to increases in our LC usage related to our Nigeria contract.

Speaker Change: At quarter end, we had cash of $324 million in availability under the ABL of $75 million with the resulting liquidity of $399 million.

Brent Yeah: Our funded debt was $324 million and we have negative net debt of $9 million at quarter end.

Speaker Change: In August we extended the terms of our ABL and increase the size of the LC basket.

Speaker Change: I'll now turn the call over to Eric for a discussion of our outlook for 2024 and beyond.

Speaker Change: Our ABL availability decrease in Q3 due to increases in our LC usage related to our Nigeria contract.

Eric: Thanks, Brett our team performed well in the quarter Q3 has historically been our highest quarter, but was impacted by the higher transit and mobilization days and weather downtime. Nonetheless, our quarter results were in line with expectations.

Brent Yeah: Our funded debt was $324 million and we have negative net debt of $9 million at quarter end.

Speaker Change: I'll now turn the call over to Eric for a discussion of our outlook for 2024 and beyond.

Eric: Our year to date results improved year over year as.

Eric: Thanks, Brent our team performed well in the quarter Q3 has historically been our highest quarter, but was impacted by the higher transit and mobilization days and weather downtime. Nonetheless, our quarter results were inline with expectations and our year to date results improved year over year as.

Eric: As we enter Q4, we do expect seasonal impacts to our operations, particularly in the North Sea Gulf of Mexico shelf and APAC region.

Eric: That said, we are tightening our guidance of certain key financial metrics from our forecast.

Eric: Our revenue guidance is $1 3 billion to $1 $3 65 billion EBIT.

Brent Yeah: As we enter Q4, we do expect seasonal impacts to our operations, particularly in the North Sea Gulf of Mexico shelf and APAC region.

Eric: EBITDA of 280 million to $310 million, we have narrowed our EBITDA guidance, our new range reflects our year to date actual results, including the impacts of weather events in the Gulf of Mexico shelf and unplanned shut ins at our offshore production wells.

Eric: That said, we are tightening our guidance of certain key financial metrics from our forecast.

Eric: Our revenue guidance is $1 3 billion to $1 36 5 billion EBIT.

Eric: Free cash flow, we are increasing our guidance to $120 million to $150 million the.

Eric: EBITDA of $280 million to $310 million, we have narrowed our EBITDA guidance, our new range reflects our year to date actual results, including the impacts of weather events in the Gulf of Mexico shelf and unplanned shut ins at our offshore production wells.

Eric: The improved cash flow outlook is driven by expected lower working capital outflow flows in 2024 and the range provided contemplates the variability in capital spending due to some spend possibly shifting to the right into 2025.

Eric: Free cash flow, we are increasing our guidance to $120 million to $150 million.

Eric: We also note that our full year free cash flow guidance includes the $58 million impact from the earn out payment that was made in Q2, excluding that impact of the earn out our full year free cash flow range would be $178 million to $208 million.

Eric: Okay.

Eric: Capital spending we are reducing our forecast of <unk> $55 million to $70 million.

Eric: Lower end of the guidance is based on approved amounts moving into 2025.

Eric: Our spend continues to be a mix of regulatory maintenance in our vessels and fleet.

Eric: Renewal of our robotics Rovs.

Eric: Okay.

Eric: These ranges involved some key assumptions and estimates and any significant variation from these assumptions and estimates could cause us to.

Eric: Capital spending we are reducing our forecast of <unk> $55 million to $70 million.

Lower end of the guidance is based on approved amounts moving into 2025.

Eric: As a result results to fall outside these ranges.

Eric: Our spend continues to be a mix of regulatory maintenance in our vessels and fleet.

Eric: Moving on to slide 17 as discussed our fourth quarter results will be impacted by winter seasonal weather in the northern hemisphere. The variability in our fourth quarter guidance range is dependent on the length and extent of operations working into the winter season, namely in the North Sea, well intervention and robotics businesses in our Asia Pac.

Eric: <unk> of our robotics Rovs.

Eric: These ranges involved some key assumptions and estimates and any significant variation from these assumptions and estimates could cause us to.

Eric: As a result results for fall outside these ranges.

Eric: Moving on to slide 17 as discussed our fourth quarter results will be impacted by winter seasonal weather in the northern hemisphere. The variability in our fourth quarter guidance range is dependent on the length and extensive operations working into the winter season, namely in the North Sea, well intervention and robotics businesses in our Asia Pac.

Eric: <unk> robotics operations and in the Gulf of Mexico for shallow water abandonment.

Eric: We commenced our Nigeria work on Q4 thousand in October and our fourth quarter results may be affected by the expected ultimate duration of that contract and we expect variability our oil and gas production, depending on the length of the process.

Eric: <unk> robotics operations and in the Gulf of Mexico for shallow water abandonment.

Eric: <unk> of our Droshky wells into Q4.

Eric: Reviewing our balance sheet, our funded debt stands at 324 million with no significant maturities until 2029, we are still targeting 20% to $30 million share repurchases in our in our 2024 program with $10 million done year to date.

We commenced our Nigeria work on Q4 thousand in October and our fourth quarter results may be affected by the expected ultimate duration of that contract and we expect record early our oil and gas production depending on the length.

Eric: Of our Droshky wells into Q4.

Eric: Providing some key assumptions for the remainder of the year by segment and region starting on slide 18.

Eric: With our well intervention segment the Gulf of Mexico continues to be a strong market for helix. The Q 5000 is contracted through the remainder of the year and we reached.

Eric: For the year minimum 175 day per year commitment on the Q 5000, beginning in 2025.

Eric: Providing some key assumptions for the remainder of the year by segment and region starting in slide 18, first with our well intervention segment. The Gulf of Mexico continues to be a strong market for helix. The <unk> thousand is contracted through the remainder of the year and we recently.

Eric: Q4 thousand completed its transit to West Africa in September and went on hire mid October for its minimum six month contract in Nigeria with deferred mobilization revenue and costs on this project are.

Eric: For the year minimum 175 day per year commitment on the Q 5000, beginning in 2025.

Eric: Our reporting will depend on application of accounting rules to the ultimate duration of the contract or other opportunities that would extend our operations in Nigeria.

Eric: The Q4 thousand completed its transit to West Africa in September and went on hire mid October for its minimum six month contract in Nigeria with deferred mobilization revenue and costs on this project.

Eric: And in the UK North Sea, we are anticipating a return to seasonally adjusted utilization in the winter months and expect the seawell and well enhancer will be utilized through midpoint Q4.

Eric: Reporting will depend on application of accounting rules to the ultimate duration of the contract or other opportunities that would extend our operations in Nigeria.

Eric: Possibility of working later into the winter season provides upside potential within our guidance range.

Eric: In the UK North Sea, we are anticipating a return to seasonally adjusted utilization in the winter months and expect the seawell and well enhancer will be utilized through midpoint in Q4.

Eric: For Q 7000 is currently working on its final project of this campaign in Australia, which is expected to continue through October followed by a scheduled transit and mobilization for its contracted work in Brazil expected to commence in early 'twenty five.

Eric: Possibility of working later into the winter season provides upside potential within our guidance range.

Eric: In Brazil, the Siem helix two has contracted into mid December with Petrobras, followed by vessel acceptance and mobilization for its new three year contract the duration of that period in Q4 provides variability within our guidance range.

Eric: For Q 7000 is currently working on its final project of this campaign in Australia, which is expected to continue through October followed by a scheduled transit and mobilization towards contracted work in Brazil expected to commence in early 'twenty five.

Eric: Cm helix won his contract is contracted performing well abandonment work for tried it into Q4 of 2025, we expect to benefit from the <unk> contract extension in Petrobras contracts at improved rates in 2025.

In Brazil, the Siem helix two has contracted into mid December with Petrobras.

Eric: Road by vessel acceptance and mobilization for its new three year contract the duration of that period in Q4 provides variability within our guidance range.

Eric: Moving to our robotics segment continues to benefit from a tight market, where both oil and gas and renewables markets are extremely active competing for assets. Our robotics estimates is affected by seasonality and activity levels in the north sea in APAC are expected to be impacted by seasonality as usual in the winter months APAC region.

Eric: The Siem helix, one is contract contracted performing well abandonment work for tried it into Q4 of 2025, we expect to benefit from the trial.

Eric: Contract extension in Petrobras contracts at improved rates in 2025.

Eric: Through our robotics segment continues to benefit from a tight market, where both oil and gas and renewables markets are extremely active competing for assets. Our robotics segment is affected by seasonality and activity levels in the north sea in APAC are expected to be impacted by seasonality as usual in the winter months APAC region.

Eric: The Grand Canyon, II, providing RV support offshore Malaysia, and the CF Topaz is performing renewables trenching offshore Taiwan, both expected into December.

Eric: Potential for further work in December provides upside within our guidance.

Eric: In the North Sea, the Grand Canyon III in the North Sea neighbor, performing trenching projects and are expected to remain utilized for the remainder of the year.

Eric: The Grand Canyon, II, providing RV support offshore Malaysia, and this year Topaz is performing renewables trenching offshore Taiwan, both expected into December the potential for further work in December provides upside within our guidance and the North Sea the Grand Canyon III in the North Sea neighbor, performing trenching projects and are expected to remain.

Eric: <unk> is forecasted to remain on site clearance operations through October.

Eric: In the U S to Australia more line is up for U S East coast, providing wind farm support.

Eric: <unk> into November and the potential for further work this year on the east coast or Gulf of Mexico provide potential upside within our guidance range.

Eric: Utilized for the remainder of the year the growth of our wave is forecasted to remain on site clearance operations through October in.

Eric: Moving to production facilities. The HP one is on contract for the balance of 2024 with no expected change.

Eric: In the U S. The <unk> is up for U S East coast, providing wind farm support expected into November and the potential for further work this year on the east coast or Gulf of Mexico provide potential upside within our guidance range.

Eric: As mentioned earlier in the call. The Thunder Hawk wells are temporarily shut in and we expect our Droshky wells will be shut in for approximately five to six weeks for facilities work to be conducted by the facility owner.

Eric: Moving to production facilities. The HP one is on contract for the balance of 2024 with no expected change.

Eric: Our forecast takes these shut ins into account, but the duration of the shut ins could affect our results going forward.

Eric: Continuing to shallow water continued to anticipate this to be a seasonal business with the decline in vessel activity in line with the winter weather arrival in the Gulf of Mexico. Our outlook range includes variability depending on the timing and extent of the winter season.

Our forecast takes these shut ins into account, but the duration of the shut ins could affect our results going forward.

Eric: <unk> Commission is a callout business, but given customer needs a continued reversion of properties bankruptcies.

Continuing to shallow water continued to anticipate this to be a seasonal business with the decline in vessel activity in line with the winter weather arrival in the Gulf of Mexico. Our outlook range includes variability depending on the timing and extent of the winter season.

Eric: Term, we still believe in the solid foundation for this market.

Speaker Change: At this time I will turn the call back to OLED for a discussion of our outlook.

Speaker Change: Beyond 2024 and for closing comments.

Eric: Sharpton Commission is a callout business, but given customer needs a continued reversion of properties bankruptcies.

Speaker Change: Thanks, Eric and good morning to everyone things are good and I'm pleased with <unk> results, which generated $88 million in EBITDA in Q3, its third largest quarterly EBITDA since 2014.

Eric: Term, we still believe in the solid foundation for this market.

Speaker Change: At this time I will turn the call back to open for a discussion of our outlook beyond 2020 for closing comments.

Speaker Change: Despite the slow shallow water abandonment segment and the one offs that were mentioned earlier helix is in great shape and positioned well for the future.

Speaker Change: Thanks, Eric and good morning to everyone things are good and I'm pleased with <unk> results helix generated $88 million in EBITDA in Q3, its third largest quarterly EBITDA since 2014 and thats. Despite the slow shallow water abandonment segment and the one offs that were mentioned earlier.

Speaker Change: Robotics pro forming very well with foreseeable growth in the wind farm market for both trenching and site clearance abandonment and production enhancement demand in well intervention is strong and currently exceeding our capacity to supply.

Eric: Helix is in great shape and positioned well for the future.

Speaker Change: Shallow water is experiencing a slow down.

Speaker Change: Down slow year as previously covered.

Eric: Robotics pro forming very well with foreseeable growth in the wind farm market for both trenching and site clearance abandonment and production enhancement demand in well intervention is strong and currently exceeding our capacity to supply.

Speaker Change: The results more negative than our initial expectations due to the softer market here.

Speaker Change: Hurricane disruptions the carrying costs, we feel we need to do.

Speaker Change: Keep in place in order to be ready for a rebound in 2025.

Speaker Change: Shallow water is experiencing a slow down.

Speaker Change: Down slow year as previously covered.

Speaker Change: As mentioned earlier this year, there was going to be and there has been noise in our second half reported results as Eric has covered first or hurricane disruptions impacted the shallow water to a greater extent than typically considered.

Speaker Change: The results more negative than our initial expectations due to the softer market hurricane disruptions the carrying costs, we feel we need to keep.

Speaker Change: Keeping in place in order to be ready for a rebound in <unk>.

Speaker Change: To the extension of work for the Q 7000 in Australia, Although we have an overall positive is that a lower legacy margin than the next contracted work in Brazil, which will now be deferred to start in early 'twenty five.

Speaker Change: 25.

Speaker Change: As mentioned earlier this year, there was going to be and there has been noise in our second half reported results as Eric has covered first our hurricane disruptions impacted the shallow water to a greater extent than typically considered.

Speaker Change: The 67 days and mobilization of the Q4 thousand through its initial six month contract in Nigeria adds noise to Q3 reporting as the paid mobe and Demoed our paid.

Speaker Change: To the extension of work for the Q 7000, Australia, Although we have an overall positive is that a lower legacy margin. The next contracted work in Brazil, which will now be deferred to start in early 'twenty five.

Speaker Change: The paid mode fees and costs were not recognized in Q3, but are amortized over the term of the contract.

Speaker Change: The 67 days and mobilization of the Q4 thousand through its initial six month contract.

Speaker Change: <unk> 7038, the transit and mobilization from southeastern Australia to northwest, Australia creates more noise due to the accounting treatment.

Speaker Change: Nigeria adds noise to Q3 reporting as the paid mobe and Demoed our paid.

Speaker Change: Thunder Hawk production went offline July 28 and remains offline.

Speaker Change: Paid fees and costs were not recognized in Q3, but are amortized over the term of the contract.

Speaker Change: There are always ups and downs in the business most of our business segments are executing as expected or better offsetting these one time impacts we've tried to capture the net effect from the accounting treatment in our revised guidance. We reiterate the expected improvements in 2025, and we should see $60 million to $100 million increase.

Speaker Change: <unk> 7038, the transit and mobilization from southeastern Australia to northwest, Australia creates more noise due to the accounting treatment.

Speaker Change: Thunder Hawk production went offline July 28 and remains offline.

Speaker Change: There are always ups and downs in the business most of our business segments are executing as expected or better offsetting these one time impacts we've tried to capture the net effect from the accounting treatment in our revised guidance, we reiterate the expected improvements in 2025, and we should see $60 million to $100 million.

Speaker Change: EBITDA for well interventions continued performance robotics, and a rebound in shallow water.

Speaker Change: During the past quarter, there's been a couple of topics that are predominantly the inbound questions from our investors.

Speaker Change: First there was an anonymous story on potential M&A activities as helix.

Speaker Change: <unk> and EBITDA for well interventions continued performance robotics and a rebound in shallow water.

Speaker Change: Company policy, we don't comment on rumors and speculations.

Speaker Change: As we've consistently communicated with investors, we recognize that our strong outlook healthy balance sheet evaluation of strategic growth opportunities and willingness to entertain M&A options will continue to generate market chatter.

Speaker Change: During the past quarter, there's been a couple of topics that abdominal aided the inbound questions from our investors.

Speaker Change: First there was an anonymous story on potential M&A activities with helix.

Speaker Change: As a company policy, we don't comment on rumors and speculations.

Speaker Change: Second there has been a significant messaging of a softer market for 2025 for upstream service providers helix has intentionally developed our business line to focus on the downstream segments of oil and gas, which are largely driven by opex rather than capex spending.

Speaker Change: We've consistently communicated with investors, we recognize that our strong outlook healthy balance sheet evaluation of strategic growth opportunities and willingness to entertain M&A options will continue to generate market chatter.

Speaker Change: As a result, we believe that the helix model is more resilient in a softer market than most capex dependent business models.

Speaker Change: Second there has been a significant messaging of a softer market for 2025 for upstream service providers.

Speaker Change: Helix is also well positioned by having four of our seven major assets already committed on two to three year contracts.

Speaker Change: Has intentionally developed our business line to focus on the downstream segments of oil and gas, which are largely driven by opex rather than capex spending as a result, we believe that the helix model is more resilient in a softer market than most capex dependent business models.

Speaker Change: Our robotics business is primarily focused on the offshore wind market, which we feel is well positioned to continue to get stronger for us.

Speaker Change: The softer oil and gas market may actually not be a bad thing for us as we anticipate even stronger free cash flow generation for helix with good visibility.

Speaker Change: <unk> is also well positioned by having four of our seven major assets already committed on two to three year contracts.

Speaker Change: Our robotics business is primarily focused on the offshore wind market, which we feel is well positioned to continue to get stronger for us.

Speaker Change: The price point for capital allocation for growth may become better and more rational for full cycle consideration.

Speaker Change: Accounting noise and give and takes the solid free cash flow generation for 2024 has been greater than expected and recall that absent the alliance earn out paid back in April our free cash flow for the year would have been even higher.

Speaker Change: Softer oil and gas market may actually not be a bad thing for us as we anticipate even stronger free cash flow generation for helix with good visibility the.

The price point for capital allocation for growth may become better and more rational for full cycle consideration.

Speaker Change: There's been noise in the 2024 as predicted but overall helix is moving directionally up and expected as we are looking into.

2025 year ahead.

Speaker Change: Thanks.

Speaker Change: Back to your excellent operator at this time, we'll take any questions.

Speaker Change: There's been noise in the 2024 as predicted but overall helix is moving directionally up and expected as we are looking into.

Speaker Change: Thank you at this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad.

Speaker Change: 2025 year ahead.

Speaker Change: We will pause for just a moment to compile the Q&A roster.

Speaker Change: Thanks.

Speaker Change: Back to you our excellent operator at this time, we'll take any questions.

Speaker Change: Okay.

Speaker Change: And your first question comes from the line of Jim Rollyson with Raymond James. Thank you. Please go ahead.

Speaker Change: Thank you at this time I would like to remind everyone in order to add.

Ask a question press Star then the number one on your telephone keypad.

Jim Rollyson: Hey, good morning, everyone.

Jim Rollyson: Owen It seems like you've got pretty good visibility now for well intervention going into next year, given the recent contract signings and in your mention of the $60 million to $100 million of incremental EBITDA.

Speaker Change: We will pause for just a moment to compile the Q&A roster.

Speaker Change: And your first question comes from the line of Jim Rollyson with Raymond James. Thank you. Please go ahead.

Jim Rollyson: You've also been talking about the softness this year in shallow water abandonment business relative to the really strong last year.

Jim Rollyson: Hey, good morning, everyone.

Jim Rollyson: What kind of visibility do you have going into next year on the improvement like how comfortable are you from.

Jim Rollyson: Just kind of how things will shake out this year, how comfortable are you with that view.

Speaker Change: You've also been talking about the softness this year in shallow water abandonment business relative to the really strong last year.

Speaker Change: An improvement for 25%.

Speaker Change: Jim we're in the middle of our budgeting process right now, but I can tell you that the first pass which is from our guys. We do a bottom up budgeting.

Speaker Change: What kind of visibility do you have going into next year on the improvement like how comfortable are you from.

Speaker Change: It is showing.

Jim Rollyson: Just kind of how things will shake out this year, how comfortable are you with that view.

Speaker Change: <unk> moved over this year.

Speaker Change: I'm trying to quantify things for you don't have a budget for you.

Speaker Change: You an improvement for 25.

Jim Rollyson: Jim we're in the middle of our budgeting process right now, but I can tell you that the first pass which is from our guys. We do a bottom up budgeting.

Speaker Change: But if you remember back when we made the acquisition the expectations were somewhere around a $40 million to $50 million a year.

Speaker Change: 40% to $60 million a year.

Jim Rollyson: It is showing.

Jim Rollyson: <unk> moved over this year.

Speaker Change: Last year was truly an.

Jim Rollyson: I'm trying to quantify things for you don't have a budget for.

Speaker Change: Nominally.

Speaker Change: I'd say, we're definitely not going to reach that level.

But if you remember back when we made the acquisition the expectations were somewhere around a $40 million to $50 million a year.

Speaker Change: But.

Speaker Change: Bidding activity that were seeing is starting to pick up.

Speaker Change: Yeah.

Jim Rollyson: 40% to $60 million a year.

Speaker Change: Just the general activity. This late in the year is actually picking up so I would say that.

Speaker Change: Last year was truly an.

Speaker Change: The anomaly.

Speaker Change: So fair to say that we should be back in the range that we originally predicted.

Speaker Change: I'd say, we're definitely not going to reach that level.

Speaker Change: But.

Speaker Change: Typical range for this business.

Speaker Change: Bidding activity that were seeing is starting to pick up.

Speaker Change: Got it and that would be a pretty nice year over year improvement as well so.

Speaker Change: Yeah.

Speaker Change: Just the general activity. This late in the year is actually picking up so I would say that.

Speaker Change: On the free cash flow part I think a quarter or two ago, you talked about getting maybe next year north of $200 million and now.

Speaker Change: So fair to say that we should be back in the range that we originally predicted.

Speaker Change: If you stripped out the earn out youre basically on track to almost be there. This year, how should we think about free cash flow next year in the context of.

Speaker Change: Typical range for this business.

Speaker Change: Got it and that would be a pretty nice year over year improvement as well so.

Speaker Change: The incrementals from well intervention and from shallow water and then maybe plus or minus the fact, I think Eric mentioned capex might actually some roll into next year, but like how are you thinking about the cash free cash flow next year and then what are you thinking about doing with it.

Speaker Change: On the free cash flow part I think a quarter or two ago, you talked about getting maybe next year north of $200 million and now.

Speaker Change: If you stripped out the earn out you are basically on track to almost be there. This year, how should we think about free cash flow next year in the context of.

Speaker Change: So I'll take the first part and then pass it back to Owen obviously, we are.

Speaker Change: The incrementals from well intervention and from shallow water and then maybe plus or minus the fact, I think Eric mentioned capex might actually some roll into next year, but like how are you thinking about cash free cash flow next year and then what are you thinking about doing with it.

Speaker Change: Bullish on our free cash flow generation as we've talked about I think overall this year, we are definitely benefiting from some of the you can say.

Speaker Change: The working capital flow backs.

Speaker Change: So I'll take the first part and then pass it back to Owen obviously, we are.

Speaker Change: From our growth that we experienced back in 2023.

Speaker Change: So absent any significant.

Speaker Change: Bullish on on our free cash flow generation as we've talked about I think overall this year, we are definitely benefiting from some of the you could say.

Speaker Change: Working capital fluctuations, we would expect definitely improvement in our free cash flow.

Speaker Change: The working capital flow backs.

Next year I think obviously the key elements that impact that we've talked about capex. This year in general we've guided to about $70 million to $80 million of Capex per year. I believe we will probably be in that range will still need to work through that but.

Speaker Change: Well from our growth that we experienced back in 2023.

Speaker Change: So absent any significant.

Speaker Change: Working capital fluctuations, we would expect definitely improvement in our free cash flow.

Speaker Change: But we have the ability to manage within that range I think our taxes will probably be a little bit higher as we become a U S taxpayer towards the end of the year, but we feel very good about our free cash flow generation and I think we've talked about it being in that $200 million range for next year and as far as <unk>.

Owen Kratz: Next year I think obviously the key elements that impact that we've talked about capex. This year in general we've guided to about $70 million to $80 million of Capex per year. I believe we will probably be in that range will still need to work through that but.

Speaker Change: Uses for it I'll turn that back to <unk>.

Speaker Change: Well.

Speaker Change: Yes, it would be easy for me to cite what I've said in the past is that we're first going to look for capital allocation for growth.

Speaker Change: Maine continue our share repurchase program.

Speaker Change: Then the remainder would be a cash build I would say that.

Speaker Change: Uses for it I'll turn that back to our.

Speaker Change: Well.

Speaker Change: Growth companies in a cyclical industry should be wary about expanding their cash in up cycles, and then look for the opportunity to deploy in down cycles. The recent market dynamics surrounding market sentiment towards a market softening here.

Speaker Change: Yes, it would be easy for me to cite what I've said in the past is that we're first going to look for capital allocation for growth, we're going to continue our share repurchase program.

Speaker Change: Then the remainder would be a cash build I would say that.

Speaker Change: Growth companies in a cyclical industry should.

Speaker Change: Sort of.

Speaker Change: Sure.

Speaker Change: It should be worried about.

Speaker Change: Gives you pause and makes you start to think about.

Speaker Change: Expanding their cash in up cycles, and then look for the opportunity to deploy in down cycles. The recent market dynamics surrounding market sentiment towards a market softening here.

Speaker Change: Is there going to be a rationalization and pullback in the pricing of potential growth capital allocation that would have a major effect.

Speaker Change: We have an impact on our decision making process, but we're always looking.

Speaker Change: Sort of.

Speaker Change: Sure.

Speaker Change: Gives you pause and makes you start to think about.

Speaker Change: For the best allocation of capital that generates the greatest shareholder returns.

Speaker Change: Is there going to be a rationalization and pullback in the pricing of potential growth capital allocation that would have a major effect.

Speaker Change: I appreciate the answers guys. Thanks.

Speaker Change: Okay.

Speaker Change: A an impact on our decision making process, but we're always looking.

Speaker Change: For the best allocation of capital that generates the greatest shareholder returns.

Speaker Change: Operator are there further questions.

Speaker Change: I appreciate the answers guys. Thanks.

Speaker Change: Your next question comes from the line of James Sheehan with SEBI Cowen. Thank you. Please go ahead.

Speaker Change: Okay.

James Sheehan: Hey, good morning, guys. Thanks for taking my questions.

Speaker Change: Operator are there further questions.

Speaker Change:

Speaker Change: You mentioned in shallow water.

Speaker Change: 10 million loss of revenues in Q3 without any.

Operator: Your next question comes from the line of James Sheehan with SEBI Cowen. Thank you. Please go ahead.

Speaker Change: And really cost relief there. So just curious is this.

Speaker Change: Yes.

James Sheehan: Hey, good morning, guys. Thanks for taking my questions.

Speaker Change: Will that benefit be deferred and recouped in Q4 or will there be no impact to Q4.

Speaker Change: Yes.

Speaker Change: You mentioned in shallow water.

Speaker Change: 10 million loss of revenues in Q3 without any.

Speaker Change: I would say we won't be recouping any of those monies back is a pure hitting key free. Unfortunately, the hurricanes that went through in the past a lot of our websites.

Speaker Change: And really cost relief there. So just curious is this.

Speaker Change: Will that benefit be deferred and recouped in Q4 or will there be no impact to Q4.

Speaker Change: And that event in the shallow water. Unfortunately, the contracts are set that the client just put us off higher so it was unexpected.

Speaker Change: As we move into Q4 at the moment I don't see any hurricanes on the on the horizon. So hopefully we are coming out of hurricane season that we will start entering into the season and winter notes, we will expect that the that work will drop off coming here at towards the end of October into November depending on when the <unk> come down into the Gulf of Mexico.

Speaker Change: I would say we won't be recouping any of those monies back is a pure hitting key free. Unfortunately, the hurricanes that went through in the past a lot of our websites.

Speaker Change: And that events in the shallow water. Unfortunately, the contracts are set that their clients just put us off higher it.

Speaker Change: It was unexpected as.

Speaker Change: As we move into Q4 at the moment I don't see any hurricanes on the on the horizon. So hopefully we are coming out of hurricane season that we will start entering into the seat in the winter notes, we will expect that the work will drop off coming here at towards the end of October into November depending on when the <unk> come down into the Gulf of Mexico.

Speaker Change: Okay, and then can you can you give us some more color on it looks like youre going to have shut ins or on the Droshky and Thunder Hawk fields can you help us quantify the EBITDA from Droshky and separately Thunder Hawk.

Speaker Change: So from.

Speaker Change: From the Droshky standpoint, Jeremy we expected shut in here until early to mid November So cheetah on let's say five to six weeks. So it's from that standpoint.

Speaker Change: It's not a very significant hit I think the Thunder Hawk once again I think right now we are.

Speaker Change: So from.

Speaker Change: Undertaking investigations into that and so we are in our assumptions assume no production from that and that is at least a couple of million dollars for the quarter.

Speaker Change: From the Droshky standpoint, Jeremy we expected shut in here until early to mid November So, let's say five to six weeks. So it's from that standpoint, it's.

Speaker Change: Okay. Thanks.

Speaker Change: It's not a very significant hit I think the Thunder Hawk once again I think right now we're.

Speaker Change: And then just a housekeeping one.

Speaker Change: Like how many well intervention vessel transit days do you expect in Q4.

Speaker Change: Undertaking investigations into that and so we are in our assumptions assume no production from that and that is at least a couple of million dollars for the quarter.

So in Q4, we completed the transit and mobilization on the Q4. So we went on hire early to mid October so there'll be a few days there and then the Q 7000 once it completes its Australia work.

Speaker Change: Okay. Thanks.

Speaker Change: And then just a housekeeping one.

Speaker Change: How many well intervention vessel transit days do you expect in Q4.

Speaker Change: So in Q4 the.

Speaker Change: End of October early November essentially it will be in transit and mode for the rest of the quarter into Q1.

Speaker Change: Completed the transit and mobilization on the Q4. So we went on hire early to mid October so there'll be a few days there and then.

Speaker Change: So that's like 60 ish days.

Speaker Change: On the Q.

Speaker Change: Then the Q seven.

Speaker Change: Okay Alright.

Speaker Change: Once it completes its Australia work.

Speaker Change: Sorry, I didn't hear you Scotty how many.

Speaker Change: End of October early November essentially will be in transit and mode for the rest of the quarter into Q1.

Speaker Change: At 63 days is the current plan.

Speaker Change: Great Great. Thank you very much I'll turn it back.

Speaker Change: Okay.

Speaker Change: So that's like 60 ish days on.

Speaker Change: Thank you. Your next question comes from the line of David Smith with Pickering Energy partners. Thank you. Please go ahead.

Speaker Change: On the Q3.

Speaker Change: Okay Alright.

Speaker Change: Sorry, I didn't hear you Scotty how many.

David Smith: Hey, good morning, and thanks for taking my question.

Speaker Change: At 63 days is the current plan 60, great great. Thank you very much I'll turn it back.

Speaker Change: Good morning.

David Smith: Just wanted to circle back to your remarks about the topics of investor interest.

Speaker Change: Okay.

Speaker Change: Thank you. Your next question comes from the line of David Smith with Pickering Energy partners. Thank you. Please go ahead.

Speaker Change: We're also seeing that growing concern about softening deepwater market.

Speaker Change: Potential pricing pressure.

Speaker Change: The sixth generation fleet and some of that concern has impacted your stock price with that perception that sixth Gen rig pricing competition.

Speaker Change: Hey, good morning, and thank you for taking my question.

Speaker Change: Good morning.

Speaker Change: Just wanted to circle back to your remarks about the topics of investor interest.

Speaker Change: And Pat your business next year. So I just wanted to ask my wrong thinking that less than 20% probably of your heavy well intervention.

Speaker Change: We're also seeing that growing concern about assai and deepwater market.

Speaker Change: Potential pricing pressure.

The sixth generation fleet, and I think some of that concern us.

Speaker Change: All availability is actually opened next year.

Speaker Change: Probably less than half is opened for 26.

Speaker Change: And to your stock price without a perception that sixth Gen rig pricing competition in <unk>.

Speaker Change: Uptake that <unk> 7000, as we now beyond the shell contract for a minimum 400 days of options. The key 4000 will be six months with options sizable options in Nigeria on a good contract.

Speaker Change: That's your business next year. So I just wanted to ask my wrong thinking that less than 20% of your heavy well intervention vessel availability is actually open next year and probably less than half is opened for 26.

Speaker Change: TSH, one will be with <unk> and I will transfer over to <unk>.

Speaker Change: Petro restaurant, a three year contract at much improved rates and the SHT will transfer over here in January from the existing contract with Petrobras.

David Smith: The uptake that <unk> 7000.

Speaker Change: As we have beyond the shell contract for a minimum 400 days of options. The key four thousands will be six months with options sizable options in Nigeria on a good contract.

Speaker Change: The new three year contracts with Petrobras at much better market rates. So.

Speaker Change: And it really leaves us a bit of time to find on the key 5000, which is contracted with <unk> for a minimum of 175 days and we already have booked in for that.

Speaker Change: So each one will be with <unk> and I will transfer over to <unk>.

Speaker Change: Restaurant, a three year contract at much improved rates and the SHT will transfer over here in January from the existing contract with Petrobras to the new three year contracts with Petrobras at much better market rates. So that only really leads us a bit of time to find on the key 5000, which is contracted with shelf for a minimum of 175 days.

Speaker Change: See we have virtually no time left for next year on the key 5000.

The north sea vessels, they are a spot related assets that we season, we expect that we will warm stack at some point in the winter and then we'll get going again in Q1 and should have a strong cemetery.

Speaker Change: And we already have 15 for that.

Speaker Change: The summer months.

Speaker Change: Through Q2, and Q3 for both of those assets I would say again back to seasonal activities that best way to think of it in the North Sea right now, but the heavy assets are all contracted at good contracts with much improved market rates for 2025.

Speaker Change: See we have virtually no time left for next year on the key 5000.

Speaker Change: The north sea vessels, they are a spot related assets that we season, we expect that we will warm stack at some point in the winter and then we'll get going on again in Q1 and should have a strong cemetery creative summer months and through Q2 and Q3 for both of those assets again back to seasonal activities that best way to think of it in the North Sea right now.

Speaker Change: Yes, I appreciate that it is remarkable how those vessels.

Speaker Change: It turned out certainly at different contracting trajectory than that extent letters have seen this year.

Speaker Change: Ask it if you are having a real discussions on your 26 availability for the heavy well intervention assets or do you see a likely return towards towards the spot market activity.

Speaker Change: But the heavy assets contracted at good contracts with much improved market rates for 2025.

Speaker Change: Okay. I appreciate that it is remarkable how it turned out certainly at different contracting trajectory than that extent letters have seen this year.

Speaker Change: In 2026.

<unk> vessels will be contracted up we'll be working with shell on the case of a thousand in Brazil, and they have good options and <unk>.

Speaker Change: Wanted to ask you. If you are having a real discussions on your 26 availability for the heavy well I mentioned assets or do you see a likely return towards towards the spot market activity.

Speaker Change: And high visibility of further work for 'twenty six.

Speaker Change: <unk> 5000 will have its shelf back background contracts say that's in good shape.

Speaker Change: In 2026.

Speaker Change: And we'll have to decide whether we think the key for Fas in Africa will come back to the Gulf, but if we do come back to that well that will be more spot activity.

Speaker Change: ICF such vessels will be contracted up we'll be working with shell on the case of a thousand in Brazil, and they have good options and share in high visibility of some of the work for 2006.

Speaker Change: Very much appreciate it I will circle back into the queue.

Speaker Change: Yes.

<unk> 5000 will have its shelf back background.

Speaker Change: <unk> taken the key 5000 that gives us a good backstop pharma contracts and keeping the other clients happy with the Q4 thousand.

Speaker Change: Back on contract say, that's in good shape and we'll have to decide whether we think the key for Fas in Africa will come back to the Gulf, but if we do come back to the growth that will be more spot activity.

Speaker Change: Absolutely appreciate the color.

Speaker Change: Okay. Thank you.

Speaker Change: Thank you next question comes from the line of Josh chain with that.

Speaker Change: Very much appreciate it I will circle back into the queue.

<unk> taken the key 5000 that gives us a good backstop for our contracts and keeping the other clients happy with the Q4.

Speaker Change: <unk> energy partners. Thank you. Please go ahead.

Speaker Change: Thanks for taking my questions first I wanted to just talk about the robotics market as we look at what you guys have been able to achieve over the course of this year and looking forward. So chartered vessel utilization in the mid Ninety's RMB and trencher utilization in the high <unk>.

Speaker Change: Absolutely appreciate the color.

Speaker Change: Okay. Thank you.

Speaker Change: Thank you next question comes from the line of Josh chain with Daniel Energy Partners. Thank you. Please go ahead.

Speaker Change: You haven't talked as much in the 25 as you have with respect to the well intervention market, but I'm. Just curious could you talk about the visibility you have for the robotics business today into next year and beyond how many of the assets are essentially spoken for for next year, and maybe just a little bit more detail around that business.

Speaker Change: You haven't talked as much into 'twenty five as you have with respect to the well intervention market, but I'm. Just curious could you talk about the visibility you have for the robotics business today into next year and beyond.

Speaker Change: Currently we have six vessels working in robotics.

Speaker Change: We expect <unk> to.

Speaker Change: Stay with six vessels next year.

Speaker Change: I would say we have probably the best visibility we have ever had entrenching.

Speaker Change: We have undertaken tenders out to 2028 and 2030, we have contracted work for 26% into 2700, retrenching and trenching the niche parts of the robotics business.

Speaker Change: Many of the assets are essentially spoken for for next year, and maybe just a little bit more detail around that business.

Speaker Change: Currently we have six vessels working in robotics, we expect to stay.

Speaker Change: Stay with six vessels next year.

Speaker Change: The market is tight from a renewables perspective, as a tight from an oil and gas perspective, no body over the last few years has built any RMB. So there's actually.

Speaker Change: I would say we have probably the best visibility we have ever had entrenching.

Speaker Change: We have undertaken tenders out to 2028 and 2030, we have contracted work for 26% into 2007% retention and trenching the niche parts of the robotics business.

A shortage in the market for RV services, both in renewables and oil and gas I would expect to see continued similar utilization for robotics, and hopefully a better outlook entrenching and increased rates retrenching oxygen.

Speaker Change #101: The market is tight from a renewables perspective, so as I type from an oil and gas perspective, no body over the last few years has built any RMB. So there's actually a shortage in the market for RV services, both in renewables and oil and gas I would expect to see continued similar utilization for robotics, and hopefully a better outlook entrenching and increased <unk>.

Speaker Change #100: Okay. Thanks, and then I wanted to double back to one of the comments that Owen made about.

Speaker Change #101: Sort of free cash flow and ultimately what to do with it as I assume it's going to get a lot more interest as we as.

Speaker Change #101: As you guys move forward into next year with just the strength of all of the business is improving including the most in well intervention.

David Smith: Smith <unk>.

Speaker Change #103: Okay. Thanks, and then I wanted to double back to one of the comments that Owen made about.

Speaker Change #101: When you talk about that free cash flow number.

Speaker Change #101: First is there any reason that capex should deviate from what you guys had been spending in the next couple of years and then second.

Speaker Change #104: Sort of free cash flow and ultimately what to do with it as I assume it's going to get a lot more interest as we as.

Speaker Change #105: As you guys move forward into next year with just the strength of all of the business is improving including the most in well intervention just when you talk about that free cash flow number.

When you look about when you look around and opportunities to grow.

Speaker Change #101: What are the what are the types of things you would look to potentially add to your.

Speaker Change #101: To the portfolio are there opportunities to convert another.

Speaker Change #105: First is there any reason that capex should deviate from what you guys have been spending in the next couple of years and then second.

Speaker Change #101: Maybe an idle asset into an intervention vessel or something of that nature or would it be something else in the offshore space. Thanks.

Speaker Change #105: When you look about when you look around and opportunities to grow.

Speaker Change #106: Well quite a question.

Speaker Change #100: What are the what are the types of things you would look to potentially add to your.

Speaker Change #106: Yeah.

Speaker Change #106: Sorry.

Speaker Change #106: Yes.

Speaker Change #101: To the portfolio are there opportunities to convert another.

Speaker Change #106: No I think.

Speaker Change #106: As far as the opportunities go I think there is.

Speaker Change #101: Be an idle asset into an intervention vessel or something of that nature or would it be something else in the offshore space. Thanks.

Speaker Change #106: Our visibility is for increasing demand in each one of the niches that we occupy right now so there is opportunity Scotty mentioned the growth of the trenching market.

Speaker Change #101: Well quite a question.

Speaker Change #101: Oh, sorry.

Yes.

Speaker Change #107: No I think.

Speaker Change #106: I'm sorry.

Speaker Change #107: As far as the opportunities go I think there is of.

Sorry about that anyway, as Scotty mentioned the growth in the trenching market. So I do see the potential of adding capacity there the robotics.

Speaker Change #107: Our visibility is for increasing demand in each one of the niches that we occupy right now so there is opportunity.

Speaker Change #106: Segment, there is the potential borrowing capacity there.

Speaker Change #108: Scott you mentioned the growth of the trenching market.

Speaker Change #106: And the.

Speaker Change #101: Yes.

Speaker Change #109: I'm sorry.

Speaker Change #106: Shallow water abandonment.

Speaker Change #110: Sorry about that anyway, as Scott mentioned the growth in the trenching market. So I do see.

Speaker Change #106: We're sort of in a wait and see and let.

Speaker Change #106: Let the market prove it so that it is going to be as strong as we'd anticipate but.

<unk> capacity there the robotics.

Speaker Change #106: There is a potential one of the strategic reasons why we made the acquisition in the Gulf of Mexico was because we also saw.

Speaker Change #106: Segment, there is the potential borrowing capacity there.

Speaker Change #106: And the.

Speaker Change #106: Shallow water abandonment.

Speaker Change #106: Nascent market in Brazil.

Speaker Change #106: We're sort of in a wait and see and let the market prove itself.

Speaker Change #106: Australia.

Speaker Change #106: So and we're actually tendering for some work in Brazil, So there could be an opportunity to deploy capital to enter that new market and then the big one more intervention capacity right now.

It's going to be as strong as we anticipate but there is a potential.

Speaker Change #106: <unk> one of the strategic reasons why we made the acquisition in the Gulf of Mexico was because we also saw.

Speaker Change #106: Nascent market in Brazil.

Speaker Change #106: I have told the market we're probably.

Speaker Change #106: Australia.

Speaker Change #106: We were through the downturn, we were probably a vessel and a half to heavy and now we're probably a vessel in half too light there is the opportunity.

Speaker Change #106: So and we're actually tendering for some work in Brazil, So there could be an opportunity to deploy capital to <unk>.

Speaker Change #106: That new market and then the big one more intervention capacity right now.

Speaker Change #106: For work right now, but I think you have to look long term through the full cycle.

Speaker Change #106: No the pricing expectations on assets.

Speaker Change #106: I have told the market we're probably.

Speaker Change #106: We are through the downturn, we were probably a vessel and a half to heavy and now we're probably a vessel in half too light there is the opportunity.

Speaker Change #106: In recent years really exploded from where they were three years ago. So I think you have to be patient, but if a client comes to us and once our services.

Speaker Change #106: For work right now, but I think you have to look long term through the full cycle.

Speaker Change #106: I need a vessel then for the right contract we'd consider it.

Speaker Change #111: No the pricing expectations on assets.

Speaker Change #106: And as far as.

Speaker Change #106: In recent years really exploded from where they were three years ago. So I think you have to be patient, but if a client comes to us and once our services.

Speaker Change #106: As far as managing Capex, I think we feel comfortable that for our existing assets to be able to manage within that $70 million to $80 million range. Obviously, there will be variability in there, but I believe we feel comfortable in that range of course that doesn't include any growth opportunities that Owen has addressed.

Speaker Change #106: I need a vessel then for the right contract we'd consider it.

Speaker Change #106: And as far as.

Speaker Change #115: As far as managing Capex, I think we feel comfortable that for our existing assets to be able to manage within that $70 million to $80 million range. Obviously, there will be variability in there, but I believe we feel comfortable in that range of course that doesn't include any growth opportunities that Owen has addressed.

Speaker Change #112: Understood. Thanks, Eric I will turn it back.

Speaker Change #113: Thank you. Your next question comes from the line of Greg.

Greg: Hi, Thank you and thanks for taking my questions.

Speaker Change #116: Scotty it's good to see that the Q4 up and running in West Africa.

Understood. Thanks, Eric I will turn it back.

Greg: You had called out those options on that unit.

Speaker Change #117: Thank you. Your next question comes from the line of Greg.

Speaker Change #118: What kind of sense that you get for the lead time for when they need to exercise those options just as you continue to plan.

Speaker Change #118: Hi, Thank you and thanks for taking my questions.

Good morning, Scott.

Greg: The outlook for Q4.

Speaker Change #121: Good to see that the Q4 up and running in West Africa.

Speaker Change #119: I think.

Scotty Sparks: There's a good chance to what portion of the options will be taken Jim but I don't think we'll have that trend up until Q1 of next year.

Speaker Change #121: You called out those options on that unit.

Speaker Change #124: What kind of sense that you get for the lead time for when they need to exercise those options just as you continue to plan.

Speaker Change #124: Okay. Okay, Great and then just as we think about that the mobilization time from.

Speaker Change #124: Gulf of Mexico to Whopper was about 30 days.

Speaker Change #112: The outlook for the Q4.

Speaker Change #112: I think.

Speaker Change #124: So all of that I think it was about 67 days.

Speaker Change #126: There's a good chance that portion of the options will be taken James that I don't think we will have that stand up until Q1 of next year.

Speaker Change #124: Okay.

Speaker Change #124: We have to take the vessels to the dock and do the vessel cotton and in securities that before we actually set up that way.

Greg: Okay, Okay, Great and then just as we think about that.

Speaker Change #124: They get paid.

Speaker Change #116: The mobilization time from.

Speaker Change #124: Do they get paid quite a good number for that mobilization to Africa.

Speaker Change #116: Gulf of Mexico to Whopper was about 30 days.

Speaker Change #127: Yeah, and okay, and Theres, a demob too right yes.

So all up I think it was about 67 days.

Speaker Change #124: Yes.

Speaker Change #124: Our size and with the United as well.

Speaker Change #118: Okay.

Speaker Change #118: We have to take the vessels to the dock into the vessel cotton and in security and all that before we actually set up that we did get paid.

Speaker Change #124: Okay, and then on the robotic side.

Speaker Change #124: I guess, maybe I didnt appreciate.

Speaker Change #124: And I guess, you laid out pretty clearly.

Or do they get paid quite a good number for that mobilization to Africa.

Speaker Change #124: Much of the business as renewable versus.

Speaker Change #128: Yes, and okay, and Theres, a demob too right yes.

Speaker Change #124: Traditional oil energy any kind of split you guys can talk about in terms of revenue and robotics between what that mix is.

Scotty Sparks: Yes.

Scotty Sparks: And with eight items.

Speaker Change #129: Okay, and then on the robotic side.

Speaker Change #129: I'll hand that to Mike.

Speaker Change #129: I guess, maybe I didnt appreciate.

Speaker Change #124: Transit.

Speaker Change #131: Yes, good morning, Greg Yeah on the robotics side of renewables typically is.

Speaker Change #124: And I guess, you'll lay it out pretty clearly how much of the business is renewable versus.

Speaker Change #133: Traditional oil energy any kind of split you guys can talk about in terms of revenue of robotics between what that mix is.

Speaker Change #132: Half of our robotics business, which is about 20% of the company. So youre looking at about 10% overall.

Speaker Change #132: Okay.

Speaker Change #134: And then like just as I think about robotics.

Speaker Change #124: I'll hand that either.

Speaker Change #132: <unk>.

Speaker Change #124: Thanks.

Speaker Change #132: Yes, I guess, they're all assets between the.

Speaker Change #135: Yes, good morning, Greg.

On the robotics side of renewables typically is.

Speaker Change #136: Is it safe to kind of assume like the trenches are largely all renewable.

Speaker Change #137: Half of our robotics business, which is about 20% of the company. So youre looking at about 10% overall.

Speaker Change #137: Yes, that's a good assumption.

Speaker Change #124: Okay.

Speaker Change #137: And we're seeing the trenching market not only expand in Europe and.

Speaker Change #124: And then like just as I think about robotics.

Speaker Change #137: In Asia Pacific and the U S East coast as well.

Speaker Change #124: <unk>.

Speaker Change #124: Yes, I guess, they're all assets between the.

Speaker Change #137: Okay, Alright, guys.

Speaker Change #124: Is it safe to kind of assume like the trenches are largely all renewable.

Speaker Change #139: Perfect Super helpful. Thank you very much.

Speaker Change #139: Thank you.

Speaker Change #139: Yes.

Speaker Change #124: Yes, that's a good assumption.

Speaker Change #140: Thank you and your final question comes from the line of David Smith with Pickering Energy partners. Thank you. Please go ahead.

Speaker Change #140: And we're seeing the trenching market not only expand in Europe.

Speaker Change #131: In Asia Pacific and the U S East coast as well.

Speaker Change #139: Okay.

David Smith: Hey, Thanks for letting me back in.

Speaker Change #131: Okay, Alright, guys.

Speaker Change #139: Okay and your presentation.

Speaker Change #142: Perfect Super helpful. Thank you very much.

A comment about well intervention rate increases expected.

Speaker Change #132: Thank you.

Speaker Change #132: Yes.

Speaker Change #143: Thank you and your final question comes from the line of David Smith with Pickering Energy partners. Thank you. Please go ahead.

David Smith: The increased 25, EBITDA by $60 million to $100 million versus 24, Im sorry, if you touched on this and I missed it but could you. Please talk a little about the factors impacting that range.

David Smith: Hey, Thanks for letting me back in.

Speaker Change #144: Okay and your presentation.

Speaker Change #147: And so obviously I think the big issue has been the or the big impact is the new contracts that we announced here in the third quarter I think we talked about rate improvements over what we've realized to date and 24 with those new contracts in Brazil, approximately 40% higher.

Speaker Change #145: Comments about well intervention rate increases expected.

Speaker Change #137: The increased 25, EBITDA by $60 million to $100 million versus 24.

Speaker Change #146: Sorry, if you touched on this and I missed it but could you. Please talk a little about the factors impacting that range.

Speaker Change #148: And so obviously I think the big issue has been the or the big impact is the new contracts that we announced here in the third quarter I think we talked about rate improvements over what we've realized to date and 24 with those new contracts in Brazil, approximately 40% higher.

Speaker Change #147: In 'twenty, five and with the shell contract, what we're able to realize approximately 20% higher rates and what were the what were able to deliver this year. So those are the components of it also that we've talked about that.

Speaker Change #147: <unk> 7000, working in Brazil from that standpoint, I think thats, one where we expect to generate better margins on that vessel than what we what we're generating today under the contracts and the APAC region.

Speaker Change #149: In 'twenty, five and with the the shell contracts, what we're able to realize as approximately 20% higher rates and what were the what were able to deliver this year. So those are the components of it also that we've talked about.

Speaker Change #149: Okay. Thank you I understand that.

Speaker Change #151: The factors behind the increase I was just thinking about that $40 million range.

Speaker Change #147: The Q 7000, working in Brazil from that standpoint, I think thats, one where we expect to generate better margins on that vessel than what we what we're generating today under the contracts and the APAC region.

Yeah that comment about 25, EBITDA up by $60 million to $100 million.

Speaker Change #152: Yes, the factors impacting that 49 range so.

Speaker Change #152: So obviously I think at the end of the day overall utilization.

Speaker Change #153: Sure. Thank you I understand that.

Speaker Change #154: The factors behind the increase I was just thinking about that $40 million range.

Speaker Change #152: The impact on that.

Speaker Change #152: Would impact that as well also.

Speaker Change #155: Yeah that comment about 25, EBITDA up by $60 million to $100 million, yes.

Speaker Change #152: You could say that mobilization period on the Q seven.

Speaker Change #152: If it starts.

Speaker Change #152: Early January obviously that would be a lot higher and if it starts in March and so there are give and takes as far as as when the assets are working.

Speaker Change #155: Factors impacting up 49 range.

Speaker Change #155: So obviously I think at the end of the day overall utilization.

Speaker Change #147: Impact on that.

Speaker Change #147: Would impact that as well also.

Speaker Change #152: That are built into that assumption of 62.

Speaker Change #147: You could say that mobilization period on the Q seven.

Speaker Change #156: Very much appreciate it if I could.

Speaker Change #147: If it starts.

Speaker Change #147: Early January obviously that would be a lot higher than if it starts in March and so there are give and takes as far as as when the assets are working.

Speaker Change #157: One more follow up.

Speaker Change #157: Circling back to the question about the Q4 thousand options being exercised I was curious if you have seen.

Speaker Change #157: Interest in the Q4 thousand per for work in West Africa beyond the firm contract option.

Speaker Change #151: That are built into that assumption of 60 to 100.

Speaker Change #152: Very much appreciate it if I could.

Speaker Change #157: So are there any reasons that you might not keep the Q4 thousand in West Africa for an extended period.

Speaker Change #152: One more follow up.

Speaker Change #152: Circling back to the good.

Speaker Change #152: About the Q4 thousand option being exercised I was curious if you've seen.

Speaker Change #158: I mean I'll take that.

Speaker Change #158: Obviously, the other clients in the region and are aware that where.

Speaker Change #152: Interest in the Q4 thousand per for work in West Africa beyond the phone contracts and option.

Speaker Change #158: They are in Nigeria, working on right now.

Speaker Change #158: And it's not often that intervention vessels goes over two to Nigeria. So it is a good degree of interest with two or three of our operators after the Exxon.

Speaker Change #159: Yes. Thanks, so are there any reasons that you might not.

Speaker Change #152: <unk> 4000 in West Africa for an extended period.

Speaker Change #158: But we have to be mindful of what we want to stay in the Gulf of Mexico shelf taken the key five women's backstop contract.

Speaker Change #159: I mean I'll take that.

Speaker Change #159: Obviously, the other clients in the region are aware that where they are in Nigeria working right now.

Speaker Change #158: We don't want at least the market share in the Gulf of Mexico with clients that we've had for a long time as well so it will be about an active how busy the gulf as compared to the other works on offer to us in Nigeria. This is where I would circle back to my comment that we're a bushel and have short of.

Speaker Change #156: Now often an intervention vessel goes I would say to Nigeria. So it is a good degree of interest with two or three of our operators after the Exxon.

Speaker Change #157: But we have to be mindful of what we want to stay in the Gulf of Mexico shelf taken the key five.

Speaker Change #158: Meeting the demand that we have right now.

Speaker Change #157: Its backstop contract.

Speaker Change #157: We don't want to leave the market share in the Gulf of Mexico with clients that we've had for a long time as well so it will be about an active how busy the gulf as compared to the upper works on offer to us in Nigeria.

Speaker Change #158: We've taken the Q4 thousand to West Africa. There is a strong market there we haven't even started to penetrate Angola yet.

Speaker Change #158: Guyana is on the horizon of meeting well intervention assets down there.

Speaker Change #158: Where I would circle back to my comment, but we're a barcelona have shorter.

Speaker Change #158: Meeting the demand that we have right now.

Speaker Change #158: And of course, we're taking an asset out of Australia, which is so there is also demand built up down there. So that's where that's where it's very easy for me to say that we're vessel and they have short from being able to meet the demand that we're seeing.

Speaker Change #158: We've taken the Q4 thousand to West Africa, There is a <unk>.

Speaker Change #158: <unk> market there, we haven't even started to penetrate Angola yet.

Speaker Change #158: Donna is on the horizon of meeting well intervention assets down there.

Speaker Change #160: Okay very much appreciate it thanks.

Speaker Change #160: Yeah.

Speaker Change #161: Thank you and your final question comes from the line of James Sheehan with Daddy Cowen. Thank you. Please go ahead.

Speaker Change #160: Yes.

James Sheehan: Hey, guys. Thanks for letting me back in.

James Sheehan: I just wanted to ask like what is driving the lower EBITDA guidance. This year, there's a number of things that I could point to but I just wanted to see what how you guys are framing that.

Speaker Change #158: Yeah.

Speaker Change #162: Okay very much appreciate it thanks.

Speaker Change #158: Okay.

Speaker Change #163: Thank you and your final question comes from the line of James Sheehan with Daddy Colin. Thank you. Please go ahead.

Speaker Change #164: In reference to our guidance for full year, essentially the fourth quarter or.

Speaker Change #158: Yes.

James Sheehan: Hey, guys. Thanks for letting me back in.

Speaker Change #164: Yes.

Speaker Change #164: Okay.

Speaker Change #164: For EBITDA guidance is lowered at the midpoint $5 million. So what's driving that is it <unk> weakness is it.

Well I'll, let you answer Theres some.

Speaker Change #158: In reference to our guidance for full year, essentially the fourth quarter or.

Speaker Change #165: Incremental weakness in Q4.

Speaker Change #165: You point to.

Speaker Change #160: Yeah, Yeah, I mean the.

Speaker Change #165: So obviously I think overall, obviously, we did have some negatives that impacted us in the third quarter.

Speaker Change #160: 20.

Speaker Change #160: <unk> 24, EBITDA guidance is lowered at the midpoint $5 million. So what's driving that is it <unk> weakness is it.

Speaker Change #165: And what was overall still a very strong quarter for us I think.

Speaker Change #166: Well I'll, let you answer there is some.

Speaker Change #165: <unk> talked about the weather impact there.

Speaker Change #167: Incremental weakness in Q4, what do you point to.

Speaker Change #165: And obviously that flows through to our overall guidance and of course the shut in production and then I think overall, we still have a fairly wide range.

Speaker Change #168: So obviously I think.

Speaker Change #169: Obviously, we did have some negatives that impacted us in the third quarter.

Speaker Change #169: And what was overall still a very strong quarter for us I think.

Speaker Change #165: For the fourth quarter, Jim and that really is driven by <unk>.

Speaker Change #165: Really the timing of when the seasonal impact will hit our.

Speaker Change #164: We've talked about the weather impact there.

Speaker Change #164: And obviously that flows through to our overall guidance and of course the shut in production and then I think overall, we still have a fairly wide range for the fourth quarter, Jim and that really is driven by really the timing of when the seasonal impact will hit our <unk>.

Speaker Change #165: Our assets in the Gulf of Mexico, and the North Sea. So those are the variables I think some of the one offs that hit us in the Q3, obviously flowed through to the overall year.

Speaker Change #165: Have the ability to make that back if if our seasons go go go longer than what we're anticipating but thats all built into the range that we've provided in the market.

Speaker Change #165: Our assets in the Gulf of Mexico, and the North Sea. So those are the variables I think some of the one offs that Edison in the Q3, obviously flowed through to the overall year.

Speaker Change #170: Got it thanks, Eric and then just last one from me Scott you mentioned that the RV market is very tight I was just wondering.

Speaker Change #165: The ability to to make that back if if our seasons go go go longer than what we're anticipating but thats all built into the range that we've provided in the market.

Speaker Change #171: Could you give could you give me a sense of like where you see <unk> pricing this year and like is it up.

Jim Rollyson: Got it thanks, Eric and then just last one from me Scott you mentioned that the RV.

Speaker Change #171: 10% or and then what are your expectations for next year.

Speaker Change #171: I think we will see a tightened up the market and the rates of certain increased over the last.

Speaker Change #172: Market is very tight I was just wondering could you give could you give me a sense of like where you see <unk> pricing this year and like is it up.

Speaker Change #171: 18 months to two years.

Speaker Change #171: The tenders that have gone out currently they still have increases in them. So I'd say, if the market stays tight we should see at least a 10% increase in RV and <unk>.

Speaker Change #165: 10% or and then what are your expectations for next year.

Speaker Change #171: <unk> announced that go out.

Speaker Change #165: I think we will see a tightened up the market and the rates of certain increased over the last 18 months to two years.

Speaker Change #171: On the Chinese side was certainly increase in the rates.

Speaker Change #171: The regs are increased I'd say.

Speaker Change #171: 15% guidance next year, and then as some of the tenders that we let's see even.

Speaker Change #165: <unk> got an hour currently I still have increases in them. So I'd say, if the market stays tight we should see at least a 10% increase in RV.

Speaker Change #171: Even high end, but obviously, we will have some cost creep as we expand out into those years as well.

Speaker Change #170: Personnel that go out on the Chinese side, we're certainly increasing the rates.

Speaker Change #171: Additional crewing costs and stuff.

Speaker Change #171: As we go.

Speaker Change #171: Alright.

Speaker Change #171: The Brexit increased I'd say.

Speaker Change #171: Right. Okay. That's great. Thank you guys very much thank.

Speaker Change #173: 15% going into next year, and then as some of the tenders that we let's see.

Speaker Change #171: Thank you.

Speaker Change #174: There are no questions at this time.

Speaker Change #171: Even high end, but obviously, we will have some cost creep as we expand out into those areas as well.

Speaker Change #175: Thanks for joining us today, we very much appreciate your interest and participation and look forward to having you on our fourth quarter 2024 call in February 2025. Thank you.

Speaker Change #171: Additional crewing costs and stuff.

Speaker Change #171: As we go.

Speaker Change #171: Alright.

Speaker Change #175: Right. Okay. That's great. Thank you guys very much thank.

Speaker Change #171: Thank you.

Speaker Change #177: Thank you ladies and gentlemen that concludes today's call. Thank you all for joining you may now disconnect.

Speaker Change #177: There are no questions at this time.

Speaker Change #179: Thanks for joining us today, we very much appreciate your interest and participation and look forward to having you on our fourth quarter 2024 call in February 2025. Thank you.

Speaker Change #177: [music].

Speaker Change #180: Thank you ladies and gentlemen that concludes today's call. Thank you all for joining you may now disconnect.

Speaker Change #171: [music].

Speaker Change #177: Yes.

Speaker Change #177: [music].

Speaker Change #177: Okay.

Speaker Change #177: Yes.

Speaker Change #177: [music].

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