Q4 2024 Vantage Drilling Co Earnings Call
Okay.
Operator: Good day and thank you for standing by.
Speaker Change: Good day, and thank you for standing by and welcome to the vantage drilling fourth quarter and year end 2024 earnings call.
Operator: Welcome to the Vantage Drilling fourth quarter and year-end 2024 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session.
At this time all participants are in a listen only mode.
Speaker Change: After the Speakers' presentation, there'll be a question and answer session.
Operator: To ask a question during the session, you'll need to press star-one-one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star-one-one again.
Speaker Change: To ask a question during the session you'll need to press star one one on your telephone you will then hear an automated message advising your hand is raised to withdraw your question. Please press star one again.
Operator: Please be advised that today's conference is being recorded.
Speaker Change: Please be advised that today's conference is being recorded.
Operator: I would now like to hand the conference over to Raphael Blattner, Chief Financial Officer. Please go ahead.
Speaker Change: I would now like to hand, the conference over to Raphael bladder Chief Financial Officer. Please go ahead.
Raphael Blattner: Welcome everyone to the Vantage Drilling 4th Quarter 2024 Earnings Conference Call. On the call alongside me today is Ihab Thoma, our CEO.
Speaker Change: Thank you.
Raphael Bladder: Welcome everyone to the vantage drilling fourth quarter 2024 earnings conference call on.
Speaker Change: On the call alongside me today, it would be hard.
Bob Thomas: Bob Thomas our CEO.
Raphael Blattner: This morning, we released our earnings announcement for the quarter ended December 31st, 2024. The earnings release is available on our website at www.VantageDrilling.com Please note that any comments we make today about our expectations of future events and projections are forward-looking statements pursuant to the Private Securities Litigation Reform Act. We have based forward looking statements on management's current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, our expectations regarding future results, including our liquidity position, future costs and expenses related to upgrades and out-of-service work, as well as contract preparation costs and expenses.
Bob Thomas: This morning, we released our earnings announcement for the quarter ended December 31 2024.
Bob Thomas: The earnings release is available on our website advantage drilling dotcom.
Bob Thomas: Please note that any comments, we make today about our expectations of future events and projections are forward looking statements pursuant to the private Securities Litigation Reform Act.
Bob Thomas: We have based forward looking statements on management's current expectations and assumptions.
Bob Thomas: Not on historical facts.
Bob Thomas: These statements include but are not limited to our expectations regarding future results, including our liquidity position future costs and expenses related to upgrades and out of service work as well as contract preparation costs and expenses.
Raphael Blattner: Forward-looking statements are subject to a number of risks and uncertainties. many of which are beyond our control and could cause our actual results to differ materially from the projections made. Vantage does not undertake to update any such statement or risk factor.
Bob Thomas: Forward looking statements are subject to a number of risks and uncertainties.
Bob Thomas: Any of which are beyond our control and could cause our actual results to differ materially from the projections made.
Bob Thomas: Vantage does not undertake to update any such statement or risk factor.
Raphael Blattner: We refer you to our earnings release and financials available on our website.
Bob Thomas: We refer you to our earnings release and financials are available on our website.
Raphael Blattner: We have prerecorded our opening remarks and are participating on the call remotely to manage the question and answer session segment of the call. In the event there are issues with sound quality or of a similar nature, please accept our apologies in advance and thank you for your understanding.
Bob Thomas: We have prerecorded, our opening remarks and are participating on the call remotely to manage the question and answer session segment of the call.
Bob Thomas: In the event there are issues with the sound quality or of a similar nature. Please accept our apologies in advance and thank you for your understanding.
Ehab Thoma: Now I will hand over to our CEO, Ehab Thoma. Thank you Raphael and welcome everyone. I am pleased to report on a successful 2024, driven by safe operations and the execution of accretive transactions aligned with our Asset Light strategy. These included the sale of the Topaz Driller and the Suhana followed by the two previously announced three-year management agreements and a three-year support service agreement. We also incorporated the joint venture with Total Energies and finalized definitive agreements for the joint venture purchase of the Tungsten Explorer, which the parties signed on January 2, 2025. Finally, we successfully listed our shares on the Euronext Growth Platform.
Speaker Change: Now I will hand over to our CEO <unk> tomo.
Speaker Change: Thank you Raphael and welcome everyone I am pleased to report on a successful 2024, driven by safe operations and the execution of accretive transactions.
Speaker Change: And with our asset light strategy.
Speaker Change: These included the sale of the Topaz Driller and the Savannah, followed by the two previously announced three year management agreement and a three year support service agreement.
Speaker Change: We also incorporated the joint venture with total energies and finalize the definitive agreements for the joint venture purchase of tungsten explorer, which the parties signed on January 2nd 2025. Finally, we successfully listed our shares on the Euro next growth platform.
Ehab Thoma: As required by our Senior Notes Indenture, the sale of the jackups triggered a redemption of $184.9 million of the outstanding note. and to ensure sufficient liquidity ahead of the Tungsten Explorer sale and its planned out-of-service project. We subsequently issued an additional $50 million in senior notes. Additionally, Vantage received $20 million in pre-funding for Tungsten Explorer upgrades requested by Total Energies, which are fully funded by Total Energies and not the joint venture.
Speaker Change: As required by our senior notes indenture, the sale of the Jackups triggered redemption of $184 $9 million of the outstanding notes.
Speaker Change: And to ensure sufficient liquidity ahead of the tungsten explore a sale and its planned out of service project.
Speaker Change: We subsequently issued an additional $50 million in senior notes.
Speaker Change: Additionally, vantage received $20 million and pre funding for tungsten explorer upgrades requested by total energies, which are fully funded by total energies and not the joint venture.
Ehab Thoma: Lastly, and in line with our Asset Light Strategy and focus on managing third-party assets, I am pleased to report that in early 2025, we signed an agreement with El Dorado Drilling to market the seventh-generation Dorado drill ship for operations in various locations. I would now like to take the opportunity to reflect on the full year of 2024, and as usual, I will do so by taking you through our progress in relation to our three corporate goals of, 1. Maintaining our stellar safety and operational performance, 2. Contracting of our fleet, and 3. Achieving excellent stakeholder returns.
Speaker Change: Lastly, and in line with our asset light strategy and focus on managing third party assets I am pleased to report that in early 2025, we signed an agreement with Eldorado drilling to market the seventh generation Dorado drillship for operations in various locations.
Speaker Change: I'd now like to take the opportunity to reflect on the full year of 2024 and as usual I.
Speaker Change: I will do so by taking you through our progress in relation to our three corporate goals of one.
Speaker Change: Maintaining a stellar safety and operational performance too.
Speaker Change: Contracting of our fleet and three achieving excellent stakeholder returns.
Ehab Thoma: I will begin with our first corporate goal of maintaining our stellar safety and operational performance. From a safety perspective, 2024 was a solid year for Vantage. We had several safety achievements, such as having no reported injuries on the Suhana and during the Topaz Driller Shipyard Project. In addition, Vantage won two safety awards at the IADC SAPC Safety Awards Program. These were Best Drilling Contractor Safety Initiative Award for our innovative 2D safety alert videos and Best Offshore Drilling Contractor Recordable Incident Rates in the region for 2023. Switching to operations, revenue efficiency for the owned fleet during the fourth quarter 2024 was 90.8 percent, where the deepwater fleet and the jackup fleet ended at 88.4 percent and 99.2 percent respectively.
Speaker Change: I will begin with our first corporate goal of maintaining our stellar safety and operational performance.
Speaker Change: From a safety perspective.
Speaker Change: 24 was a solid year for vantage, we had several safety achievements such as having no reported injuries on the Savannah and during the Topaz Driller Shipyard project. In addition, vantage one two safety awards at the I E. D. C. S. APC Safety Awards program. These were best drilling contractor Safety Initiative award for our <unk>.
Speaker Change: <unk> two dee safety alert videos.
Speaker Change: And best offshore drilling contractor recordable incident rates in the region for 2023.
Speaker Change: Switching to operations revenue efficiency for the owned fleet.
Speaker Change: During the fourth quarter 2024 was 19, 8%.
Speaker Change: The deepwater fleet and the Jackup fleet ended at 88, 4% and 99, 2% respectively.
Ehab Thoma: Revenue efficiency for the fleet during the year was 92.8%. where the Deepwater fleet ended at 89.9 percent and the Jackup fleet achieved 98.7 percent. The lower than historical Deepwater revenue efficiency was due to equipment issues on the Tungsten Explorer, resulting in a number of corrective and preventative actions which were implemented fleet-wide. I want to congratulate the Capella and Sohana teams for their outstanding performance in 2024, achieving operational efficiencies of 98.2% and 99.7% respectively.
Speaker Change: Revenue efficiency for the fleet during the year was 92, 8%.
Speaker Change: Where the deepwater fleet ended at 89, 9%.
Speaker Change: And the Jackup fleet achieved 98, 7%.
Speaker Change: The lower than historical deepwater revenue efficiency was due to equipment issues on the tungsten explorer, resulting in a number of corrective and preventative actions, which were implemented fleet wide.
Speaker Change: I want to congratulate the capella and so hunter teams for their outstanding performance in 2024.
Speaker Change: Achieving operational efficiencies of 98, 2% and 99, 7%, respectively. I'll now walk you through our fleet status, which ties to our second corporate goal of contracting out rigs and securing full fleet utilization.
Ehab Thoma: I'll now walk you through our fleet status, which ties to our second corporate goal of contracting our rigs and securing full fleet utilisation. Starting with the jackups, the Sohana had an uninterrupted quarter working for Medco Indonesia, rounding off the year with an impressive rig, non-productive time track record of only 30 hours in 2024. The rig has proven to be a stellar performer for Medco, having just over one day of downtime throughout the year, and more than 480 days since its last recordable safety incident. The Topaz Driller successfully completed the major shipyard project in Singapore safely, on time and on budget.
Speaker Change: Starting with the Jackups, So hunter had an uninterrupted quarter working for Medco, Indonesia rounding off the year with an impressive rig nonproductive time track record of only 30 hours in 2024, the rig has proven to be a stellar performer for medco, having just over one day of downtime throughout the year.
Speaker Change: And more than 480 days since its last recordable safety incident.
Speaker Change: The Topaz <unk> successfully completed the major shipyard project in Singapore safely on time and on budget.
Ehab Thoma: This project involved mobilising the rig from West Africa and upgrading it with multiple offline activity equipment, increasing the quarters to 150 people and completing major maintenance of the equipment. The Topaz Driller completed its contract upgrades in mid-September and successfully started its contract with SIPOC at $125,000 per day in the joint development area of Malaysia and Thailand at the end of September. On October 30th, if Vantage closed the sale of the Sohana and the Topaz Driller for a total of $190 million. The party has also entered into two three-year management agreements for the sole jackups and a three-year support services agreement for the emerald driller.
Speaker Change: This project involved mobilizing the rig from West Africa, and upgrading it with multiple offline activity equipment.
Speaker Change: Leasing the quarters to 150 people and completing major maintenance of the equipment.
Speaker Change: <unk> completed its contract upgrades in mid September and successfully started its contract with <unk> at $125000 per day in the joint development area of Malaysia, and Thailand at the end of September on October 30th vintage closed the sale of the so Honda in the Topaz driller for a total of $190 million.
Speaker Change: The parties also entered into two three year management agreements for the sole Jackups and three year support services agreement for the Emerald Driller.
Ehab Thoma: These agreements are expected to generate $7.5 million per year when the rigs are fully contracted. These transactions are a testament to Vantage's commitment to returning value to our shareholders and a forward step in executing on our Asset Light strategy while further expanding our global alliance with our partner ADAS. Switching to Deepwater, the Platinum Explorer continues its cyclical recertifications and upgrades including the upgrade of the BOP from 5 to 6 RAMs and meeting the latest API standards. We continue to pursue various suitable opportunities for the rig. Moving on to the Tungsten Explorer, the rig continues its campaign in Congo.
Speaker Change: These agreements are expected to generate $7 $5 million per year. When the rigs are fully contracted these transactions are a testament to vantages commitment to returning value to our shareholders and a forward step in executing on our asset light strategy, while further expanding our global alliance with our partner Addis switching to deepwater the platinum explorer continues its cyclical.
Speaker Change: Re certifications and upgrades, including the upgrade of the B O P from five to six Rams and meeting the latest API standards.
Speaker Change: We continue to pursue various suitable opportunities for the rig.
Speaker Change: Moving on to the tungsten explorer the rig continues its campaign in Congo. The client has exercised the three remaining contractual options.
Ehab Thoma: The client has exercised the three remaining contractual options, which based on current wells program, will take us into the third quarter of 2025. Upon conclusion of these wells, the rig will be sold to the JV. The 10-year management contract will commence, and the rig will undergo an out-of-service period, including periodic maintenance and upgrades prior to mobilization to its next contract under the Joint Venture Ownership. We have also signed a contract for two firm wells and four optional wells in West Africa on behalf of the joint venture, which will be its maiden contract under the new ownership and management structure.
Speaker Change: Based on current Wells program will take us into the third quarter of 2025.
Speaker Change: Upon conclusion of these wells the rig will be sold to the JV.
Speaker Change: The 10 year management contract will commence and the rig will undergo an out of service period, including periodic maintenance and upgrades prior to mobilization to its next contract under the joint venture ownership.
Speaker Change: We have also signed a contract for two firm wells and four optional wells in West Africa on behalf of the joint venture, which will be its maiden contract under the new ownership and management structure.
Ehab Thoma: This scope will commence directly after the Tungsten Explorer concludes its out-of-service scope in the fourth quarter of 2025, with a firm duration of 160 days and a further optional duration of up to 280 days.
Speaker Change: This scope will commence directly after the tungsten explorer concludes its out of service scope in the fourth quarter of 2025.
Speaker Change: The firm duration of 160 days and a further optional duration of up to 280 days backlog at the end of the year totaled $65 $3 million, including $21 $3 million for rigs owned by third parties, where the contract is still held by an entity of the VDI group and our managed services segment 2024 was it.
Ehab Thoma: backlog at the end of the year totaled $65.3 million including $21.3 million for rigs owned by third parties where the contract is still held by an entity of the VDI Group. In our managed services segment 2024 was a busy year and that momentum has carried into 2025. Last year we returned the Capella to C-Drill in Q3 and expanded our portfolio with the management agreements for Topaz Driller and Suhana along with the support services agreement for the Emerald Driller. As I earlier mentioned, in 2025, we entered into an agreement with Eldorado Drilling to market the 7th generation Dorado Drill Ship for drilling opportunities across various locations, which is a testament to our strong reputation as a rig manager.
Speaker Change: A busy year.
Speaker Change: And that momentum has carried into 2025 last year, we returned the capella to see drilling Q3 and.
Speaker Change: <unk> expanded our portfolio with the management agreements for the Topaz Driller and Savannah, along with the support services agreement for the Emerald Driller.
Speaker Change: As I earlier mentioned in 2025, we entered into an agreement with Eldorado drilling to market. The seventh generation Dorado drillship for drilling opportunities across various locations, which is a testament to our strong reputation as a rig manager okay.
Ehab Thoma: And we remain focused on expanding our managed services business by adding more rigs to our portfolio. And in that spirit, we have also signed an LOI with a third party to manage the marketing, reactivation and operations of their vessel for a long term opportunity. Turning to market dynamics, throughout 2024, we saw a trend of deepwater project postponements. And while long-term sentiment remains healthy, we anticipate idle periods for some floater extending into 2026. On the jack-up segment, the market remains under pressure caused by the suspended contracts with no clear restart dates.
Speaker Change: We remain focused on expanding our managed services business by adding more rigs to our portfolio and in that spirit. We have also signed an LOI with a third party to manage the marketing reactivation and operations of their vessel for a long term opportunity.
Speaker Change: Turning to market dynamics throughout 2024, we saw a trend of a deepwater project postponements and while long term sentiment remains healthy we anticipate idle periods for some floater extending into 2026 on the Jackup segment. The market remains under pressure caused by the suspended contracts with nuclear restart dates.
Ehab Thoma: I will move now to our third corporate goal of achieving excellent stakeholders' returns. In 2024, we achieved a total EBITDA of $116.9 million. With regards to our cash position, we ended the year with a cash balance of $89.6 million, including $6.2 million in restricted cash, $8.3 million of managed services pre-funded cash, and $20 million pre-funded by Total Energies to support the planned upgrades for the Tungsten Explorer. As previously mentioned, to ensure sufficient liquidity before the Tungsten Explorer's planned out-of-service period, we issued $50 million in new notes.
Speaker Change: I will move now to our third corporate goal of achieving excellent stakeholders returns.
In 2024, we achieved a total EBITDA of $116 9 million.
Speaker Change: With regards to our cash position, we ended the year with a cash balance of $89 $6 million, including $6 $2 million in restricted cash $8 $3 million of managed services pre funded cash and $20 million pre funded by total energies to support the planned upgrades for the tungsten explorer.
Speaker Change: As previously mentioned to ensure sufficient liquidity before the tungsten explore as planned out of service period, we issued $50 million in new nodes.
Ehab Thoma: In conclusion, we remain focused on achieving exceptional safety performance and securing profitable long-term drilling contracts to deliver strong future returns for our stakeholders.
Speaker Change: In conclusion, we remain focused on achieving exceptional safety performance and securing profitable long term drilling contracts to deliver strong future returns for our stakeholders.
Raphael Blattner: With that, I would like to turn the call back over to Rafael to take us through the numbers.
Raphael Bladder: With that I would like to turn the call back over to Raphael to take us through the numbers.
Raphael Blattner: Thank you, Ehab, and welcome everyone. I'll now provide an overview of our financial performance for the quarter and full year ending, December 31st, 2024. As of December 31st, 2024, Vantage had approximately $89.6 million in cash. This total includes $20 million from Total Energies to support their planned upgrades for the Tungsten Explorer, $6.2 million of restricted cash, and $8.3 million pre-funded by our managed services customers for near-term obligations.
Raphael Bladder: Thank you we have and welcome everyone.
Raphael Bladder: Now provide an overview of our financial performance for the quarter and full year ending December 31 2024.
Raphael Bladder: As of December 31, 2020 for vantage had approximately $89 $6 million in cash.
Raphael Bladder: This total includes $20 million from total energies to support their planned upgrades for the tungsten explore $6 $2 million of restricted cash and $8 $3 million pre funded by our managed services customers for near term obligations.
Raphael Blattner: In comparison, as of December 31st, 2023. Vantage had $84 million in cash, including $10.8 million of restricted cash and $11.6 million pre-funded by our managed services customers.
Raphael Bladder: In comparison as of December 31.
Raphael Bladder: 2023 <unk>.
Raphael Bladder: <unk> had $84 million in cash.
Raphael Bladder: Including $10 $8 million of restricted cash and $11 $6 million pre funded by our managed services customers.
Raphael Blattner: During the year, we successfully listed on the Urinex Growth Exchange, sold two jack-ups to ADDUS, and simultaneously entered into two three-year management agreements for the sold rigs and a three-year support services agreement for the Emerald Driller. Additionally, Total Energies and Vantage finalized definitive agreements and incorporated the joint venture, which will purchase the Tungsten Explorer after the conclusion of the current Total Energies campaign in the Congo. The parties signed the agreements on January 2, 2025, and upon the sale transaction closing, Vantage will operate the rig for a period of 10 years, with an optional extension of 5 years.
Raphael Bladder: During the year, we successfully listed on the Euronext growth exchange sold two jackups to add us and simultaneously entered into two three year management agreements for the sold rigs and a three year support services agreement for the Emerald Driller.
Raphael Bladder: Additionally, total energies and vantage finalize definitive agreements and incorporated the joint venture, which will purchase the tungsten explore after the conclusion of the current total Energy's campaign in the Congo.
Raphael Bladder: The party sign the agreements on January <unk>.
Raphael Bladder: <unk> 2025, and upon the sale transaction closing vantage will operate the rig for a period of 10 years with an optional extension of five years.
Raphael Blattner: These pivotal transactions underscore Vantage's successful execution of its asset-light strategy, positioning the company as debt-free and financially agile. The sale of the jack-ups generated net proceeds of $184.9 million, which were used to redeem senior notes, reducing the balance from $200 million to approximately $15 million. To maintain adequate liquidity ahead of the Tungsten Explorer sale, followed by its planned out-of-service period, we issued $50 million in new senior notes at a 97% issue price. We issued these notes under the same indenture terms, which include a 9.5 percent annual interest rate and a mandatory redemption, at par, when the Tungsten Explorer is sold to the joint venture.
Raphael Bladder: These pivotal transactions underscore advantages successful execution of its asset light strategy positioning the company is debt free and financially agile.
Raphael Bladder: The sale of the Jackups generated net proceeds of $184 $9 million, which were used to redeem senior notes, reducing the balance from $200 million to approximately $15 million.
Raphael Bladder: To maintain adequate liquidity ahead of the tungsten explore sale followed by its planned out of service period, we issued $50 million in new senior notes at a 97% issue price.
Raphael Bladder: We issued these notes under the same indenture terms, which include a nine 5% annual interest rate and a mandatory redemption at par when the tungsten explore is sold to the joint venture.
Raphael Blattner: Working capital for the year ending December 31, 2024 ended at approximately $115.3 million compared to $119.1 million in the previous year. For the fourth quarter, we achieved revenues of approximately $64.4 million compared to $94.5 million for the fourth quarter of 2023. Total revenue for 2024 was $239.3 million, compared to $383.1 million in the previous year. The decrease in revenue was primarily driven by the change in fleet activity, including the conclusion of the Platinum Explorer campaign in the first quarter of 2024 and management agreements for the Polaris and the Capella in the first and third quarter of 2024 respectively.
Raphael Bladder: Working capital for the year ending December 31, 2024 ended at approximately $115 $3 million compared to $119 $1 million in the previous year.
Raphael Bladder: For the fourth quarter, we achieved revenues of approximately $64 $4 million compared to $94 $5 million for the fourth quarter of 2023.
Raphael Bladder: Total revenue for 2024 was $239 $3 million compared to $383 1 million in the previous year.
Raphael Bladder: The decrease in revenue was primarily driven by the change in fleet activity, including the conclusion of the platinum explorer campaign in the first quarter of 2024 and management agreements for the Polaris and the Capella in the first and third quarter of 2024, respectively.
Raphael Blattner: The decrease in revenue was partially offset by the full recognition of deferred contract revenues upon the sale of the Topaz Driller, totaling $18.9 million. Revenue efficiency for the fourth quarter and full year of 2024 for the owned fleet was 90.8% and 92.8% respectively. Operating costs for the fourth quarter totaled $52.2 million. These were lower compared to $75.2 million in the same quarter of 2023. Operating costs for the year ended 2024 totaled $182.5 million compared to $290.1 million in 2023. The decrease was primarily due to the previously explained change in fleet activity. and it was partially offset by full recognition of deferred contract cost upon the sale of the Topaz Driller totaling $17 million.
Raphael Bladder: The decrease in revenue was partially offset by the full recognition of deferred contract revenues upon the sale of the topaz driller totaling $18 $9 million.
Raphael Bladder: Revenue efficiency for the fourth quarter and full year of 2024 for the owned fleet was 98% and 92, 8% respectively.
Raphael Bladder: Operating costs for the fourth quarter totaled $52 2 million these were lower compared to $75 2 million in the same quarter of 2023.
Raphael Bladder: Operating costs for the year ended 2024 totaled $182 5 million compared to $291 million in 2023.
Raphael Bladder: The decrease was primarily due to the previously explained change in fleet activity.
Raphael Bladder: And it was partially offset by full recognition of deferred contract cost upon the sale of the topaz driller totaling $17 million.
Raphael Blattner: General and administrative expenses for the fourth quarter of 2024 totaled approximately $6.9 million, as compared to $6.2 million for the comparable quarter in 2023. The cost increase is primarily due to costs associated with the joint venture setup and definitive agreements and the Euronext growth list. General and administrative expenses for the year ended 2024 totaled $25.1 million, compared to $21.7 million in the year 2023. The $3.4 million increase was mainly driven by labor costs of $1.9 million. along with $1.2 million in non-cash stock compensation. and $1.2 million in professional and legal fees primarily associated with the joint venture setup and definitive agreements and the Urinex growth list.
Raphael Bladder: General and administrative expenses for the fourth quarter of 2024 totaled approximately $6 9 million as compared to $6 2 million for the comparable quarter in 2023.
Raphael Bladder: The cost increase is primarily due to costs associated with the joint venture setup and definitive agreements and the euronext growth listing.
Raphael Bladder: General and administrative expenses for the year ended 2024 totaled $25 1 million compared to $21 $7 million in the year 2023.
Raphael Bladder: The $3 4 million increase was mainly driven by labor costs of $1 $9 million, along with $1 2 million in noncash stock compensation.
Raphael Bladder: And $1.2 million in professional and legal fees, primarily associated with the joint venture setup and definitive agreements and the euronext growth listing.
Raphael Blattner: The increase was partially offset by $900,000 from lower severance costs and the Houston office closure. For the fourth quarter, interest expense was approximately $14 million compared to $5.3 million in the same quarter of 2023. The increase in expense was primarily due to write-off of deferred financing costs from the redemption of senior notes totaling $8.7 million. Interest expense for 2024 was $31.4 million, an increase of $9.8 million from 2023. This was mainly due to the $8.7 million write-off of deferred financing costs from the redemption of senior notes and $2.6 million related to the closed revolving credit facility.
Raphael Bladder: The increase was partially offset by $900000 from lower severance costs and the Houston office closure for.
Raphael Bladder: For the fourth quarter interest expense was approximately $14 million compared to $5 3 million in the same quarter of 2023.
Raphael Bladder: The increase in expense was primarily due to write off of deferred financing costs from the redemption of senior notes totaling $8 $7 million.
Interest expense for 2024 was $31 4 million, an increase of $9 $8 million from 2023.
Raphael Bladder: This was mainly due to the $8 $7 million write off of deferred financing costs from the redemption of senior notes and $2 $6 million related to the closed revolving credit facility.
Raphael Blattner: The increase was partially offset by $1.5 million in lower interest on the remaining balance. The net result for the fourth quarter and for the year of 2024 was net income of $55.5 million and $27.8 million, respectively attributable to shareholders. Net income was impacted by the gain on sale of the Topaz Driller and Soahana totaling $87 million.
Raphael Bladder: The increase was partially offset by $1 $5 million and lower interest on the remaining balance.
Raphael Bladder: The net result for the fourth quarter and for the year of 2024 was net income of $55 $5 million and $27 $8 million, respectively attributable to shareholders.
Raphael Bladder: Net income was impacted by the gain on sale of the Topaz driller, and so Honda totaling $87 million.
Raphael Blattner: Please note we will post our 2024 annual report to our website later today.
Raphael Bladder: Please note we will post our 2024 annual report to our website later today and with that I will now turn the call back over to the operator to begin the Q&A.
Operator: And with that, I will now turn the call back over to the operator to begin the Q&A. As a reminder, if you'd like to ask a question at this time, please press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again. Please stand by while we compile the Q&A roster. Again, that is Star 1-1 to ask a question. Thank you for participating.
Speaker Change: As a reminder, if you'd like to ask a question at this time. Please press star one on your telephone and wait for your name to be announced.
Raphael Bladder: Your question. Please press star one again.
Please standby.
Speaker Change: Thank you Ralph.
Speaker Change: Sure.
Speaker Change: Again that is star one to ask question to ask a question.
Speaker Change: Yeah.
Speaker Change: Just kill it.
Speaker Change: I'm showing no questions.
Speaker Change: This concludes today's conference.
Operator: You may now disconnect.
Speaker Change: Thank you for participating you for participants may now disconnect.
Operator: Thanks for watching!
Speaker Change: Okay.
Speaker Change: [music].