Q2 2026 Ventura Offshore Holding Ltd Earnings Call
[Company Representative] (Ventura Offshore): Was going to BP in Brazil. Vale as GSA going to Shell in Brazil, and Transocean KG2 going to ONGC in India as recently announced. However, the swing factor remains the success in the exploratory wells in the Lotus Basin, in the known basins of Campos and Santos, which have exploratory work, but more particularly and more importantly, in the Equatorial margin. As you are all aware, Petrobras recently announced the confirmation of hydrocarbons in the north well offshore Amapá in the Equatorial margin, supporting the view that the region may become an important long-term growth frontier. 15 exploratory wells are yet to be drilled in the region, and assuming Petrobras is able to declare commercial viability of that region, we could see the demand for additional rigs rising. Now shifting gears to Southeast Asia, a region of particular interest to us due to SSV Catarina.
Guilherme Coelho: Was going to BP in Brazil. Vale as GSA going to Shell in Brazil, and Transocean KG2 going to ONGC in India as recently announced. However, the swing factor remains the success in the exploratory wells in the Lotus Basin, in the known basins of Campos and Santos, which have exploratory work, but more particularly and more importantly, in the Equatorial margin. As you are all aware, Petrobras recently announced the confirmation of hydrocarbons in the north well offshore Amapá in the Equatorial margin, supporting the view that the region may become an important long-term growth frontier. 15 exploratory wells are yet to be drilled in the region, and assuming Petrobras is able to declare commercial viability of that region, we could see the demand for additional rigs rising. Now shifting gears to Southeast Asia, a region of particular interest to us due to SSV Catarina.
Speaker #1: Goes to BP, and the zero dollars, yes, they're going to Shell in Brazil, and TransOcean's KDQ going to ONGC in India, as recently announced.
Speaker #1: However, the swing factor remains the success in the exploratory wells in Pelotas Basin, in the non-basins of Campos and Santos, which have exploratory work but more particularly and more importantly in the equatorial margin.
Speaker #1: As you're all aware, Petrobras recently announced the confirmation of hydrocarbons in the morph well of Shore Amapa, in the equatorial margin, supporting the view that the region may become an important long-term growth frontier.
Speaker #1: Fifteen exploratory wells are yet to be drilled in the region, and assuming Petrobras is able to repair commerciality or commercial viability, of that region, we could see the demand for additional rigs rising.
Speaker #1: Now, shifting gears to Southeast Asia, a region of particular interest to us due to SSV Catarina. This region is clearly becoming the biggest growth market in the ultra-deployed drilling, with Indonesian and India taking the hottest spot.
[Company Representative] (Ventura Offshore): This region is clearly becoming the biggest growth market in the ultra-deepwater drilling, with Indonesia and India taking the hottest spots, so not a bad place to have a rig operating. In Indonesia, Mubadala is starting FID for the Tangguh gas development. Development drilling expected to commence next year. We see also other campaigns progressing. Mubadala South Andaman. Searah is the JV between Eni and Petronas. So Searah's multi-year North Ganal tender. Petronas Muara Bakau Akbar has won exploration well and impacts Masela LNG project, besides Harbour Energy, who are in the market very recently looking for a floater. It is fair to say that Indonesia's opportunity remains mostly with Eni and its joint venture, Searah, which is advancing a multi-year deepwater drilling campaign across the North Ganal and Rapak blocks, supported by a recently announced $6 billion financing facility.
Guilherme Coelho: This region is clearly becoming the biggest growth market in the ultra-deepwater drilling, with Indonesia and India taking the hottest spots, so not a bad place to have a rig operating. In Indonesia, Mubadala is starting FID for the Tangguh gas development. Development drilling expected to commence next year. We see also other campaigns progressing. Mubadala South Andaman. Searah is the JV between Eni and Petronas. So Searah's multi-year North Ganal tender. Petronas Muara Bakau Akbar has won exploration well and impacts Masela LNG project, besides Harbour Energy, who are in the market very recently looking for a floater. It is fair to say that Indonesia's opportunity remains mostly with Eni and its joint venture, Searah, which is advancing a multi-year deepwater drilling campaign across the North Ganal and Rapak blocks, supported by a recently announced $6 billion financing facility.
Speaker #1: So, not a bad place to have a rig operating. In Indonesia, Bubadali is starting FID for the Tangguluh Gas Development, Development Drilling Expected to commence next year.
Speaker #1: We see also other campaigns progressing, Bubadala Salsa Deman Siaras, Siaras is the JV between ENI and Petronas, so Siaras' multi-year North Canal tender Petronas Bubakar Akbar won exploration well and impacts Mazela LNG project.
Speaker #1: Besides Harbor, we're in the market very recently looking for a floater. But it's fair to say that Indonesia's opportunities remain mostly with ENI in its joint venture Siara, which is advancing a multi-year deep water drilling campaign across the North Canal, and repacked blocks, supported by a recently announced $6 billion financing facility.
Speaker #1: This development will sustain the demand for drilling rigs, and we see that Catarina is very well positioned to continue to play an important role in the development of this important regional hub.
[Company Representative] (Ventura Offshore): These developments will sustain the demand for drilling rigs, and we see that Catarina is very well positioned to continue to play an important role in the development of this important regional hub. As a matter of fact, the rig has been in the region for seven years now and continuously undertaking drilling and workover activities across multiple Eni blocks. So we feel positively about engaging further discussions with Eni about future opportunities for the rig in Indonesia and continuing the successful and long-term partnership. In India, we saw this quarter, Q2, starting with the disappointing news of the partial suspension of the ONGC five-rig tender process, which included the need for one DP3 semi. They have progressed, though, for one or more drillships and ended up getting one valid offer only, the Transocean KG2.
Guilherme Coelho: These developments will sustain the demand for drilling rigs, and we see that Catarina is very well positioned to continue to play an important role in the development of this important regional hub. As a matter of fact, the rig has been in the region for seven years now and continuously undertaking drilling and workover activities across multiple Eni blocks. So we feel positively about engaging further discussions with Eni about future opportunities for the rig in Indonesia and continuing the successful and long-term partnership. In India, we saw this quarter, Q2, starting with the disappointing news of the partial suspension of the ONGC five-rig tender process, which included the need for one DP3 semi. They have progressed, though, for one or more drillships and ended up getting one valid offer only, the Transocean KG2.
Speaker #1: As a matter of fact, the rig has been in the region for 7 years now and continuously undertaking drilling and workover activities across multiple ENI blocks.
Speaker #1: So, we feel positively about engaging further discussions with ENI about future opportunities for the rig in Indonesia, and continuing the successful and long-term partnership.
Speaker #1: In India, we saw the quarter Q2 starting with a disappointing news of the partial suspension of the ONGC 5-rig tender process, which included the need for one DP3 semi.
Speaker #1: They have progressed, though, for one or more drill ships, and it ended up getting one valid offer only, the TransOcean's KG2. But despite this partial suspension of the original tender, the country reinforced since then its upstream growth agenda during the quarter through the approval of the Samudra Mantan Offshore Exploration Project, which carries an approved outlay of approximately $8.8 billion.
[Company Representative] (Ventura Offshore): Despite the partial suspension of the regional tender, the country reinforced, since then, its upstream growth agenda during the quarter through the approval of the Samudra Manthan offshore exploration project, which carries an approved outlay of approximately $8.8 billion and is designed to accelerate seismic deepwater and ultra-deepwater drilling. The initiative builds on recent reforms that opened previously restricted offshore areas to exploration and is intended to reduce hydrocarbons import dependence. Early activity, including new ONGC deepwater drilling campaigns and ongoing licensing rounds, shows that India is becoming an even more relevant source of future exploration demand, and the reviving of the regional tender issued earlier this year is to be expected. In parallel to the ONGC tender, Oil India Limited is also currently in the market for two drillships.
Guilherme Coelho: Despite the partial suspension of the regional tender, the country reinforced, since then, its upstream growth agenda during the quarter through the approval of the Samudra Manthan offshore exploration project, which carries an approved outlay of approximately $8.8 billion and is designed to accelerate seismic deepwater and ultra-deepwater drilling. The initiative builds on recent reforms that opened previously restricted offshore areas to exploration and is intended to reduce hydrocarbons import dependence. Early activity, including new ONGC deepwater drilling campaigns and ongoing licensing rounds, shows that India is becoming an even more relevant source of future exploration demand, and the reviving of the regional tender issued earlier this year is to be expected. In parallel to the ONGC tender, Oil India Limited is also currently in the market for two drillships.
Speaker #1: And it is designed to accelerate seismic deep water and ultra-deployed drilling.
Speaker #2: The initiative builds on recent reforms that opened previously restricted offshore areas to exploration, and is intended to reduce hydrocarbons import dependence. Early activity, including new ONGC deep water drilling campaigns and ongoing licensing rounds, shows that India is becoming an even more relevant source of future offshore exploration demand, and the reviving of the original tender issued earlier this year is to be expected.
Speaker #2: In parallel to the ONGC tender, oil India is also currently in the market for two drill ships. And finally, on Africa, several ongoing tender processes point to a sharp recovery of that region and recount expected rise by at least 20%.
[Company Representative] (Ventura Offshore): Finally, on Africa, several ongoing tender processes point to a sharp recovery of that region and rig count expected to rise by at least 20%. We have tenders in Namibia, Ivory Coast, Mozambique, Nigeria, and for different companies such as TotalEnergies, Eni, Shell, and ExxonMobil. All these opportunities amount to quite an auspicious scenario for a DP3 semi-submersible, SSV Catarina. Remaining in Indonesia, where we've been since 2019, being a strong possibility, but relocating to India or Africa, where Ventura Offshore has operated in the past, also being attractive opportunities being actively pursued for the rig. That closes our presentation for Q2 2026, and as always, I couldn't close it without thanking our teams offshore and onshore for delivering such great results on both safety and uptime while maintaining our industry-leading cost structure.
Guilherme Coelho: Finally, on Africa, several ongoing tender processes point to a sharp recovery of that region and rig count expected to rise by at least 20%. We have tenders in Namibia, Ivory Coast, Mozambique, Nigeria, and for different companies such as TotalEnergies, Eni, Shell, and ExxonMobil. All these opportunities amount to quite an auspicious scenario for a DP3 semi-submersible, SSV Catarina. Remaining in Indonesia, where we've been since 2019, being a strong possibility, but relocating to India or Africa, where Ventura Offshore has operated in the past, also being attractive opportunities being actively pursued for the rig. That closes our presentation for Q2 2026, and as always, I couldn't close it without thanking our teams offshore and onshore for delivering such great results on both safety and uptime while maintaining our industry-leading cost structure.
Speaker #2: We have tenders in Namibia, Ivory Coast, Mozambique, Nigeria, and for different companies such as TotalEnergies, ENI, Shell, and ExxonMobil. So, all these opportunities mount to a quite an auspicious scenario for a DP3 semi submersible Catarina.
Speaker #2: Remaining in Indonesia, where we've been since 2019, being a strong possibility, but relocating to India, Africa, where Ventura Offshore has operated in the past, also being attractive opportunities being actively pursued for the rig.
Speaker #1: So, that closes our presentation for Q2 2026, and as always, I couldn't close it without thanking our teams offshore and onshore for delivering such great results on both safety and uptime while maintaining our industry-leading cost structure.
Speaker #1: The reconstruction of our rigs, extension with ENI, management services signed for the DBD, are all testimony to the great work the offshore teams the Ventura Offshore teams delivered.
[Company Representative] (Ventura Offshore): The recontracting of our rigs, expansion with Eni, management services signed for the DBD are all testimony to the great work the offshore teams, the Ventura Offshore teams deliver. I'd also like to express my appreciation to our shareholders, partners, and customers for their continued trust in Ventura Offshore. With that, I close our presentation, and we will open for questions. As a reminder, questions are to be made in writing. Use the Q&A icon you can see on the top of your screen. Okay. Starting off, first question I have, Javier, just one second, please. Okay. Regarding the SSV Catarina, you mentioned one more well with Eni into year-end 2026. What is the day rate for this well, and are there any ongoing talks for further work with Eni into 2027?
Guilherme Coelho: The recontracting of our rigs, expansion with Eni, management services signed for the DBD are all testimony to the great work the offshore teams, the Ventura Offshore teams deliver. I'd also like to express my appreciation to our shareholders, partners, and customers for their continued trust in Ventura Offshore. With that, I close our presentation, and we will open for questions. As a reminder, questions are to be made in writing. Use the Q&A icon you can see on the top of your screen. Okay. Starting off, first question I have, Javier, just one second, please. Okay. Regarding the SSV Catarina, you mentioned one more well with Eni into year-end 2026. What is the day rate for this well, and are there any ongoing talks for further work with Eni into 2027?
Speaker #1: I also wanted to express my appreciation to our shareholders, partners, and customers for their continued trust in Ventura Offshore. With that, I close our presentations.
Speaker #1: Our presentation and we will open for questions. As a reminder, questions are to be made in writing, use the Q&A icon you can see on the top of your screen.
Speaker #1: Okay, so starting off, first question I have: Javier, just one second, please. Okay, regarding the SSV Catarina, you mentioned one more well with ENI into year-end 2026.
Speaker #1: What is the day rate for this well, and are there any ongoing talks or further work with ENI into 2027? If not, how confident are you in securing a follow-on contract to avoid idle time in Q1 2027?
[Company Representative] (Ventura Offshore): If not, how confident are you in securing a follow-on contract to avoid idle time in Q1 2027? So it is, as I mentioned, it is in the same terms and condition of the current contract, this additional well. Okay? So same day rate we currently have. And yes, we are in discussions with Eni. We are optimistic about finding future work with Eni in Indonesia. But as I mentioned just now, we're also looking at opportunities. We expect India to come back online, and we're also participating in opportunities in West Africa. Second question from Javier is: following the recent ONGC tender semi-cancellation, is India completely ruled out for the SSV Catarina? Or do you see the negotiation tactic to suppress southern rig demand in the area? So I think I've addressed this.
Guilherme Coelho: If not, how confident are you in securing a follow-on contract to avoid idle time in Q1 2027? So it is, as I mentioned, it is in the same terms and condition of the current contract, this additional well. Okay? So same day rate we currently have. And yes, we are in discussions with Eni. We are optimistic about finding future work with Eni in Indonesia. But as I mentioned just now, we're also looking at opportunities. We expect India to come back online, and we're also participating in opportunities in West Africa. Second question from Javier is: following the recent ONGC tender semi-cancellation, is India completely ruled out for the SSV Catarina? Or do you see the negotiation tactic to suppress southern rig demand in the area? So I think I've addressed this.
Speaker #1: So, it is, as I mentioned, it is in the same terms and conditions as the current contract, this additional well. Okay, so same day rate we currently have, and yes, we are in discussions with ENI, we are we are optimistic about finding future work with ENI in Indonesia, but as I mentioned, just just now, we're also looking at opportunities to expect India to come back online and we're also participating in opportunities in West Africa.
Speaker #1: Second question, from Javier, is following the recent ONGC tender semi cancellation, is India completely ruled out for the Catarina, or do you see the negotiation tactic to suppress sudden rig demand and day rate?
Speaker #1: So, I think I've addressed this. We believe ONGC is coming back to the market again after this announcement of the significant investment of $8.8 billion and the government directive to reduce, you know, their dependent their dependence on hydrocarbons import.
[Company Representative] (Ventura Offshore): We believe ONGC is coming back to the market again after this announcement of the significant investment of $8.8 billion and the government directive to reduce their dependence on the hydrocarbons import. We believe that there will be further opportunities in India. We have operated in India with the Sevan Louisiana. We have operated for ONGC in India for Sevan Louisiana, so we do have the experience operating there, and we certainly do not rule out India. Third question from Javier is: given reports of Costamare activists seeking rigs, would you consider an outright sale of the SSV Catarina if a fair market offer arises? So we're always open to discussions. If a good offer comes up for it, we will also take a look at it. Okay. The rig is not for sale. That is very clear.
Guilherme Coelho: We believe ONGC is coming back to the market again after this announcement of the significant investment of $8.8 billion and the government directive to reduce their dependence on the hydrocarbons import. We believe that there will be further opportunities in India. We have operated in India with the Sevan Louisiana. We have operated for ONGC in India for Sevan Louisiana, so we do have the experience operating there, and we certainly do not rule out India. Third question from Javier is: given reports of Costamare activists seeking rigs, would you consider an outright sale of the SSV Catarina if a fair market offer arises? So we're always open to discussions. If a good offer comes up for it, we will also take a look at it. Okay. The rig is not for sale. That is very clear.
Speaker #1: We believe that there will be further opportunities in India. We have operated in India with the Louisiana we have operated for ONGC in India for Louisiana, so we do have the experience of operating there, and we certainly do not rule out India.
Speaker #1: Third question from Javier is: Given reports of coastal activity seeking rigs, would you consider an outright sale of the Catarina if a fair market offer arises?
Speaker #1: So, we're always open to discussions if a good offer comes up for individual also take a look at it. Okay, the rig is not for sale, that is very clear.
Speaker #1: We are very confident on opportunities future opportunities for work for the rig. But we just don't we don't close the door. Okay, I mean, we're always open for discussions.
[Company Representative] (Ventura Offshore): We are very confident on future opportunities for work for the rig, but we do not close the door. We are always open for discussions. This rig is not for sale, and we remain confident on future work we will find for the Catarina. Next question I have also from Javier. He said, I have lots of questions out there. With Eldorado acquiring Vantage's management capabilities, is there a risk they internalize the Zonda's operations once the termination waiver expires in early 2028? I think this is highly unlikely. The contract with Petrobras is with Ventura Offshore. In our discussions with Eldorado and Vantage, it is the intention of all the companies that will carry on this contract until the end. We will see it through the end of the Zonda contract with Petrobras in Brazil.
Guilherme Coelho: We are very confident on future opportunities for work for the rig, but we do not close the door. We are always open for discussions. This rig is not for sale, and we remain confident on future work we will find for the Catarina. Next question I have also from Javier. He said, I have lots of questions out there. With Eldorado acquiring Vantage's management capabilities, is there a risk they internalize the Zonda's operations once the termination waiver expires in early 2028? I think this is highly unlikely. The contract with Petrobras is with Ventura Offshore. In our discussions with Eldorado and Vantage, it is the intention of all the companies that will carry on this contract until the end. We will see it through the end of the Zonda contract with Petrobras in Brazil.
Speaker #1: But again, this rig is not for sale and we remain confident on future work of finds for the Catarina. Okay, next question I have, also from Javier.
Speaker #1: Let me see, I have lots of questions, Javier. Will El Dorado acquiring advantageous management capabilities is there is there risk the internalized the zones operations once the termination waiver expires in early 2028?
Speaker #2: I think this is highly unlikely. The contract with the Zonda is the sorry, the contract with Petrobras is with Ventura Offshore. And in our discussions with El Dorado and Vantage, it the intention of other companies that will carry on this contract and to the end, we'll see through the the end of the Zonda contract with Petrobras in Brazil.
Speaker #1: Okay, Javier, can you categorically confirm no no capsule ops here, no delay request from Petrobras for the SCarolina or SSV Victor in January 2027?
[Company Representative] (Ventura Offshore): Javier, can you categorically confirm no delay request from Petrobras for the Carolina or SSV Victoria in January 2027? I did mention this in the call, and we have not been approached by Petrobras about any delays on the Carolina or the Victoria. Next, Marcos Monson. Do you see any specific CapEx requirements for the SSV Catarina assuming continued work in Southeast Asia? Marcos, that really depends on what this future work will be. The rig went through her SPS in early 2023. She, from an SPS standpoint, should be visible until 2028, right? That is when we would, in principle, stop the rig for work, unless, of course, there are opportunities that justify stopping the rig and doing the SPS like the earlier, doing contractual upgrades if needed.
Guilherme Coelho: Javier, can you categorically confirm no delay request from Petrobras for the Carolina or SSV Victoria in January 2027? I did mention this in the call, and we have not been approached by Petrobras about any delays on the Carolina or the Victoria. Next, Marcos Monson. Do you see any specific CapEx requirements for the SSV Catarina assuming continued work in Southeast Asia? Marcos, that really depends on what this future work will be. The rig went through her SPS in early 2023. She, from an SPS standpoint, should be visible until 2028, right? That is when we would, in principle, stop the rig for work, unless, of course, there are opportunities that justify stopping the rig and doing the SPS like the earlier, doing contractual upgrades if needed.
Speaker #1: I did mention this in the call, and we have not been approached to Petrobras about any delays on the Carolina or the Victoria. Okay, next call, next Marcos Monson.
Speaker #1: Do you see any specific capex requirements for the SSV Catarina, assuming continued work in Southeast Asia? So, Marcos, that that really depends on what this future work will be.
Speaker #2: The rig went went through her SDS in 2023, right, early 2023, so she from an SBS standpoint should be going to go into 2028.
Speaker #2: Right, so that's when we would in principle stop the rig for work. Unless, of course, there there are opportunities that justify stopping the rig and, you know, doing the test like the earlier, doing contractual upgrades if needed.
Speaker #2: Okay, so the answer to your question is that this is dependent on the next opportunity the next opportunity that materializes. And I just, again, from a regulatory standpoint, the SBS we could wait until 2028.
[Company Representative] (Ventura Offshore): The answer to your question is that this is dependent on the next opportunity that materializes. I just, again, from a regulatory standpoint, the SPS, we could wait until 2028. Another question from Roberto Pastor. Could you elaborate further on the Deep Value Driller topic? The Deep Value Driller was a rig owned by the Deep Value Driller company, and it was bareboat chartered to Saipem. Saipem was operating this rig. Then Eldorado, the same owners of the Zonda, they purchased this rig. They purchased this rig, and they looked at us. We operate the Zonda for them very successfully, very safely, to operate this rig for them. That is basically what we did. We signed contracts. They are pretty much a mirror of what we had for the Zonda, also for the Deep Value Driller, to market and manage this rig for them.
Guilherme Coelho: The answer to your question is that this is dependent on the next opportunity that materializes. I just, again, from a regulatory standpoint, the SPS, we could wait until 2028. Another question from Roberto Pastor. Could you elaborate further on the Deep Value Driller topic? The Deep Value Driller was a rig owned by the Deep Value Driller company, and it was bareboat chartered to Saipem. Saipem was operating this rig. Then Eldorado, the same owners of the Zonda, they purchased this rig. They purchased this rig, and they looked at us. We operate the Zonda for them very successfully, very safely, to operate this rig for them. That is basically what we did. We signed contracts. They are pretty much a mirror of what we had for the Zonda, also for the Deep Value Driller, to market and manage this rig for them.
Speaker #1: Another question from Roberto Pastor. Could you elaborate further on the deep value driller topic?
Speaker #2: So, the deep value driller was a rig owned by the deep value driller company and it was a variable charter to stipend. Stipend was operating this rig.
Speaker #2: And then El Dorado, the same owners of the Zonda, they purchased this rig.
Speaker #1: Okay, they purchased this rig and they I mean, they looked at us. We are operating the Zonda for them, very successfully, very safely. To operate this rig for them.
Speaker #1: So, that's basically what we did. We signed contracts. They are pretty much a mirror of what we had for the Zonda. Also, for the deep value driller, to manage, to market, and manage this rig for them.
Speaker #1: Okay, and once we signed those contracts, we started offering those rigs in a few ongoing tender processes. What has happened since is that El Dorado and Vantage they they they merged, right, so our contract is valid for the ongoing tenders.
[Company Representative] (Ventura Offshore): Once we signed those contracts, we started offering those rigs in a few ongoing tender processes. What has happened since is that Eldorado and Vantage, they merged. Our contract is valid for the ongoing tenders. Anything beyond, of course, the merger of those two companies, I am assuming that Vantage will be the one offering the rig, which makes sense. I hope this clarifies the question. Another question here from Javier. You have mentioned potential consolidation growth as one of the reasons for the two-step refinancing approach. Should we interpret that as preserving balance sheet capacity for potential acquisitions or fleet growth? Separately, how much of up to the USD 130 million CapEx of current inventory is already committed or spent, and are you still comfortable with that cost estimate?
Guilherme Coelho: Once we signed those contracts, we started offering those rigs in a few ongoing tender processes. What has happened since is that Eldorado and Vantage, they merged. Our contract is valid for the ongoing tenders. Anything beyond, of course, the merger of those two companies, I am assuming that Vantage will be the one offering the rig, which makes sense. I hope this clarifies the question. Another question here from Javier. You have mentioned potential consolidation growth as one of the reasons for the two-step refinancing approach. Should we interpret that as preserving balance sheet capacity for potential acquisitions or fleet growth? Separately, how much of up to the USD 130 million CapEx of current inventory is already committed or spent, and are you still comfortable with that cost estimate?
Speaker #1: But anything beyond, of course, the merger of those two companies I'm assuming that Vantage will be the one offering the rig, which makes sense.
Speaker #1: I hope this clarifies the question. Okay, another question here from Javier. You have mentioned potential consolidation growth as one of the reasons for the two-step refinancing approach.
Speaker #1: Should we interpret that as preserving balance sheet capacity for potential acquisitions or fleet growth? And separately, how much of up to the $130 million capex of current inventory is already committed or spent, and are you still comfortable with that cost estimate?
Speaker #1: So, starting from the second part of your question, as I have mentioned, we have we are going to be we're not going to provide updates this time around.
[Company Representative] (Ventura Offshore): Starting from the second part of your question, as I have mentioned, we are not going to provide updates this time around. We are seeing, of course, fluctuations. Fluctuations are normal, right? But the numbers have not materially changed since what we have informed 2 or 3 months ago. We are going to see the SSV Catarina arriving Guanabara Bay in about a week's time. That is when we are going to start to have a better visibility on the needs for the rig, possible saving opportunities, costs that were unforeseen. That is what makes the fluctuations, again, is very normal in SPSs of this nature. Back to your first question about potential consolidation and growth as one of the reasons of two-step financing, that is correct. That has not changed. The reasons are threefold, basically. One is the potential opportunities for growth. Second is the projects themselves.
Guilherme Coelho: Starting from the second part of your question, as I have mentioned, we are not going to provide updates this time around. We are seeing, of course, fluctuations. Fluctuations are normal, right? But the numbers have not materially changed since what we have informed 2 or 3 months ago. We are going to see the SSV Catarina arriving Guanabara Bay in about a week's time. That is when we are going to start to have a better visibility on the needs for the rig, possible saving opportunities, costs that were unforeseen. That is what makes the fluctuations, again, is very normal in SPSs of this nature. Back to your first question about potential consolidation and growth as one of the reasons of two-step financing, that is correct. That has not changed. The reasons are threefold, basically. One is the potential opportunities for growth. Second is the projects themselves.
Speaker #1: We are we are seeing, of course, fluctuations, fluctuations are normal. Right, but we are with the numbers have not materially changed since what we have informed two or three months ago.
Speaker #1: Okay, we're going to see the Carolina arriving Guanabara Bay in about a week's time. And that's when we're going to start to have a better visibility on the needs for the rig, possible saving opportunities, costs that we're unforeseen.
Speaker #1: And that's what makes the the fluctuations, again, is very normal in SBSs of this nature. Back to your first question about potential consolidation and growth as one of the reasons of two-step financing, that is correct.
Speaker #1: So, that has not changed. I mean, the the reasons are threefold, basically. Okay, one is the opportunity potential opportunities for growth. Second is the projects themselves, right, I just mentioned about the capex potential capex fluctuation.
[Company Representative] (Ventura Offshore): I just mentioned about potential CapEx fluctuation. By Q4, we are going to have a significantly better visibility on how much money those projects will cost us, hence why we are going to be providing an update during Q3. The third one, we are also going to have better visibility on the SSV Catarina going forward. These are going to be the drivers to determine how much money we are going to be looking for on the step 2 of our refinancing process. Another question here from Stefan Dietl. What are your current estimates for SPS cost for the SSV Catarina, and what kind of contract would be needed to justify the investment? Stefan, I think I already answered this on the previous question.
Guilherme Coelho: I just mentioned about potential CapEx fluctuation. By Q4, we are going to have a significantly better visibility on how much money those projects will cost us, hence why we are going to be providing an update during Q3. The third one, we are also going to have better visibility on the SSV Catarina going forward. These are going to be the drivers to determine how much money we are going to be looking for on the step 2 of our refinancing process. Another question here from Stefan Dietl. What are your current estimates for SPS cost for the SSV Catarina, and what kind of contract would be needed to justify the investment? Stefan, I think I already answered this on the previous question.
Speaker #1: So, by by Q4, we're going to have a significantly better visibility on how much money those projects will cost us. Hence why we're going to be providing an update during Q3.
Speaker #1: And the third one, we're also going to have better visibility on the Catarina going forward. So, these are going to be the drivers to determine how much money we're going to be looking for on the on the step two of our refinancing process.
Speaker #1: Another question here from Stefan Dietl. What are your current estimates for SBS costs for the Catarina, and what kind of contract would be needed to justify the investment?
Speaker #1: So, Stefan, I think I already answered this on the previous question. We do not know. How much that is going to be, because that's going to be highly dependent on the next contractual requirements that we'll have for the for the Catarina.
[Company Representative] (Ventura Offshore): We do not know how much that is going to be because that is going to be highly dependent on the next contractual requirements that we will have for the SSV Catarina. Again, we do not plan on doing an SPS on the SSV Catarina before 2028 unless a contract opportunity arises. Any contractual opportunity brings their specific technical requirements that the rig may or may not comply with, and that may or may not require upgrades. The kind of contract that will justify the investment, an SPS has to be done due to regulatory reasons, right? An SPS is not contract-dependent. You have to do it every 5 years. What you do is you move your SPS, you bring it forward, or you push it further down the line, depending on when the contract starts, to avoid unnecessary idle time in the middle of a contract.
Guilherme Coelho: We do not know how much that is going to be because that is going to be highly dependent on the next contractual requirements that we will have for the SSV Catarina. Again, we do not plan on doing an SPS on the SSV Catarina before 2028 unless a contract opportunity arises. Any contractual opportunity brings their specific technical requirements that the rig may or may not comply with, and that may or may not require upgrades. The kind of contract that will justify the investment, an SPS has to be done due to regulatory reasons, right? An SPS is not contract-dependent. You have to do it every 5 years. What you do is you move your SPS, you bring it forward, or you push it further down the line, depending on when the contract starts, to avoid unnecessary idle time in the middle of a contract.
Speaker #1: Okay, so again, we don't plan on spending doing an SBS on the on the Catarina before 2028 unless a contract opportunity arises in the any contractual opportunity brings about their tech specific technical requirements that the rig may or may not comply with, and that may or may not require upgrades.
Speaker #1: And the kind of contract that we justify the investment, an SBS has to be done due to regulatory reasons, right? An SBS is not contract dependent.
Speaker #1: That's good every five years. What you do is you move your SBS, you push it, you bring it further, you push it further down the the line, depending on when the contract starts.
Speaker #1: To avoid idle unnecessary idle time in the middle of a contract. Okay, so I hope to have answered your question on that. There you go.
[Company Representative] (Ventura Offshore): I would have answered your question on that. There you go. Another question here. What is the size of the dividend you are thinking about for next year? A question from Sarit Konstantini. Sarit, this is going to be dependent on factors and the refinancing, the visibility on the SSV Catarina future info. But our intent is to distribute our free cash flow as dividend. 100% of the free cash flow that we generate starting 2027, our idea is to distribute that as dividend. A question from Fredrik from Clarksons. Congrats on the solid Q2. Thank you. Can you talk a bit more in detail around the discussions you are having with Eni for a potential extension of the SSV Catarina? Is this well-based term, and how many months or words this work might be added if the discussions are successful?
Guilherme Coelho: I would have answered your question on that. There you go. Another question here. What is the size of the dividend you are thinking about for next year? A question from Sarit Konstantini. Sarit, this is going to be dependent on factors and the refinancing, the visibility on the SSV Catarina future info. But our intent is to distribute our free cash flow as dividend. 100% of the free cash flow that we generate starting 2027, our idea is to distribute that as dividend. A question from Fredrik from Clarksons. Congrats on the solid Q2. Thank you. Can you talk a bit more in detail around the discussions you are having with Eni for a potential extension of the SSV Catarina? Is this well-based term, and how many months or words this work might be added if the discussions are successful?
Speaker #1: Okay, another question here. What is the size of the dividend you are thinking about for next year? A question from, sorry, Constantine. So, sorry, this is going to be dependent on factors and and the refinancing, the visibility on the Catarina future inflow.
Speaker #1: But our intent is to distribute our free cash flow as dividend. Okay, 100% of the free cash flow that we generate starting 2027, our idea is to distribute that as dividend.
Speaker #1: Okay, okay, question from Frederick. From Clarksons. Congrats on the solid Q2. Thank you. Can you talk a bit more in detail around the discussions you are having with E&I for potential extension of the Catarina?
Speaker #1: Is this well-based term, and how many months of works this work might be added in if the discussions are successful? If discussions with E&I are not successful, is there a risk of downtime on the rig towards year-end or into Q1 2027?
[Company Representative] (Ventura Offshore): If discussions with Eni are not successful, is there a risk of downtime on the rig towards year-end or into Q1 2027? Or do other opportunities you are pursuing also give you potential back-to-back work? Fredrik, as you would expect, there's not a whole lot I can disclose in terms of discussions that we're having with Eni. What I can say is that we are engaged in discussions because, again, SSV Catarina has been doing a very good job for Eni. Eni has a very important field that they need to develop. They are now looking for two drillships. One drillship, I think, is to start that this year, the second one in 2028. There is an opportunity for the SSV Catarina to continue to contribute on the development of their fields.
Guilherme Coelho: If discussions with Eni are not successful, is there a risk of downtime on the rig towards year-end or into Q1 2027? Or do other opportunities you are pursuing also give you potential back-to-back work? Fredrik, as you would expect, there's not a whole lot I can disclose in terms of discussions that we're having with Eni. What I can say is that we are engaged in discussions because, again, SSV Catarina has been doing a very good job for Eni. Eni has a very important field that they need to develop. They are now looking for two drillships. One drillship, I think, is to start that this year, the second one in 2028. There is an opportunity for the SSV Catarina to continue to contribute on the development of their fields.
Speaker #1: Or do other opportunities you are pursuing also give you potential back-to-back work? So, so Frederick, as you as you as you would expect, you know, there's not a whole lot that can disclose in terms of discussions we're having with E&I.
Speaker #1: What what I can say is that we we are engaged in discussions because you know, again, the Catarina has been doing a very good job for for E&I.
Speaker #1: E&I has been very important fuel that they need to develop. They they are now looking for two drill ships one drill ship, I think, is to start that this year, the second one in 2028.
Speaker #1: So, there is an opportunity for the Carolina to continue to contribute on the development of of their fields. So, we are optimistic about something coming up, but again, too early for me to to provide you more more detail.
[Company Representative] (Ventura Offshore): We are optimistic about something coming up, but again, too early for me to provide you more detail. Of course, our intention is to keep the rig in direct integration. If there is a risk of some idle time, it's really going to depend on the outcome of those discussions, Fredrik. If there is some idle time, what we could potentially do is just bring forward our SPS so that you can have another five years of work without having to stop the rig again. But again, it's too early to give you more details on that. In regards to other opportunities, yes, we are looking at other opportunities. We have the rig is actively participating at least two other tenders. It could be that we see the rig actually going somewhere else. The idea is always to try and avoid idle time.
Guilherme Coelho: We are optimistic about something coming up, but again, too early for me to provide you more detail. Of course, our intention is to keep the rig in direct integration. If there is a risk of some idle time, it's really going to depend on the outcome of those discussions, Fredrik. If there is some idle time, what we could potentially do is just bring forward our SPS so that you can have another five years of work without having to stop the rig again. But again, it's too early to give you more details on that. In regards to other opportunities, yes, we are looking at other opportunities. We have the rig is actively participating at least two other tenders. It could be that we see the rig actually going somewhere else. The idea is always to try and avoid idle time.
Speaker #1: Of course, our intention is to keep the rig in direct continuation. If there is a risk of some idle time really going to depend on the outcome of those discussions, Frederick.
Speaker #1: And if there is some some idle time, what we could potentially do is, you know, just bring forward our SBS so that you can have another five years of work without having to stop the rig again.
Speaker #1: But again, too early to to give you more details on that. With regards to other opportunities, yes, we are looking at other opportunities because we have we have the rig is actively participating at least two other tenders.
Speaker #1: So, it could be that we that we see the rig actually going somewhere else. Okay, and the idea is always to try and avoid idle time.
Speaker #1: Okay, second question from Frederick. Is with regards to the refinancing of the balance sheet, the bond structure makes it feasible to do it before year-end?
[Company Representative] (Ventura Offshore): Second question from Fredrik is, with regards to the refinancing of the balance sheet, the bond structure makes it favorable to do it before year-end. On the other hand, I would understand that more visibility on CapEx and an update on Q3, as you alluded to, and opportunities for the SSV Catarina will be helpful to right-size the new debt facility. Should we consequently think of the timing of the refi would be likely to be H2 of Q4, or could it come earlier? Fredrik, I think by mid Q4, we're going to have a pretty good visibility, even before then, of the CapEx needs for both rigs. I think we could potentially see where we'll be in terms of growth opportunities, if there's anything coming down the pipeline or not. We might have some good visibility on the SSV Catarina.
Guilherme Coelho: Second question from Fredrik is, with regards to the refinancing of the balance sheet, the bond structure makes it favorable to do it before year-end. On the other hand, I would understand that more visibility on CapEx and an update on Q3, as you alluded to, and opportunities for the SSV Catarina will be helpful to right-size the new debt facility. Should we consequently think of the timing of the refi would be likely to be H2 of Q4, or could it come earlier? Fredrik, I think by mid Q4, we're going to have a pretty good visibility, even before then, of the CapEx needs for both rigs. I think we could potentially see where we'll be in terms of growth opportunities, if there's anything coming down the pipeline or not. We might have some good visibility on the SSV Catarina.
Speaker #1: On the other hand, I would understand that more visibility on capex and an update on Q3 as you alluded to, and opportunities for the Catarina will be helpful to rightsize the new debt facility.
Speaker #1: Should the consequently think of the timing of the refinancing would be likely to be second half of the fourth quarter, or could it come earlier?
Speaker #1: So, Frederick, I think by mid-Q2, sorry, mid-Q4, we're going to have a pretty good visibility, even before then, of the the capex needs for both rigs.
Speaker #1: I think we could potentially see, you know, where we'll be in terms of, you know, gross opportunities if there's anything coming down the pipeline or not.
Speaker #1: And we might have some some good visibility on the on the Catarina. So, I do not necessarily see us changing the original plan of having our refinancing around mid-Q4.
[Company Representative] (Ventura Offshore): I do not necessarily see us changing the original plan of having our refinancing around mid Q4. I think we're going to have sufficient data to give us good comfort to go after the refinancing with the right numbers as an objective. Question from Javier. On the DS Carolina interdiction settlement, will the Q3 cash inflow be full $12.7 million in dispute? No. Absolutely not. The number was not $12.7 million, Javier. This would be considering the rig operating at 100% all the time for 60 days, right? I mean, not even in the budget we consider that. The number we had accrued for the period in dispute was $5.3 million. Our expect- Not our expectation. What we settled was 4.9. These are the numbers that you're going to see in Q3 for the DS Carolina interdiction. A question here from Roberto Pastor.
Guilherme Coelho: I do not necessarily see us changing the original plan of having our refinancing around mid Q4. I think we're going to have sufficient data to give us good comfort to go after the refinancing with the right numbers as an objective. Question from Javier. On the DS Carolina interdiction settlement, will the Q3 cash inflow be full $12.7 million in dispute? No. Absolutely not. The number was not $12.7 million, Javier. This would be considering the rig operating at 100% all the time for 60 days, right? I mean, not even in the budget we consider that. The number we had accrued for the period in dispute was $5.3 million. Our expect- Not our expectation. What we settled was 4.9. These are the numbers that you're going to see in Q3 for the DS Carolina interdiction. A question here from Roberto Pastor.
Speaker #1: I think we're going to have sufficient data to to give us good comfort to go after the refinancing with the right numbers as an objective.
Speaker #1: Okay, question from Javier. On the Carolina introduction statement, will the Q3 cash inflow be full 20.7 million in dispute? No, no, no, no. Absolutely not.
Speaker #1: The number was not 12.7 million, Javier. This would be considering the rig operating at 100% all the time for 60 days, right? I mean, not even in the budget we consider that.
Speaker #1: Okay, so the number we had accrued for the the for the period in dispute was 5.3 million dollars. And we will and our expect not not our expectation, right, what we settled was 4.9.
Speaker #1: So, these are the numbers that you're going to see in Q3. For the Carolina introduction. So, a question here for Roberto Pastor. How many tenders are you currently working on with the deep tides river, and which margins?
[Company Representative] (Ventura Offshore): How many tenders are you currently working on with the Deep Value Driller and which markets? Roberto, we are working on a few tenders. I mean, we do not comment on the tender processes while they are still occurring, right? But we are looking at more than one tender process for the Deep Value Driller. Okay. Another question from Roberto. On the bond market, several Brazilian and international drillers have refinanced successfully in recent bonds. Some cases have meaningfully tighter spreads. How do you assess the current window for Ventura refinancing, and does the recent issuance activity by peers change your view on timing? Roberto, I refer to the answer to the previous questions. They do not change our view.
Guilherme Coelho: How many tenders are you currently working on with the Deep Value Driller and which markets? Roberto, we are working on a few tenders. I mean, we do not comment on the tender processes while they are still occurring, right? But we are looking at more than one tender process for the Deep Value Driller. Okay. Another question from Roberto. On the bond market, several Brazilian and international drillers have refinanced successfully in recent bonds. Some cases have meaningfully tighter spreads. How do you assess the current window for Ventura refinancing, and does the recent issuance activity by peers change your view on timing? Roberto, I refer to the answer to the previous questions. They do not change our view.
Speaker #1: Roberto, we're working on a few tenders. I'm not I mean, we do not comment on the tender processes while they are still occurring, right?
Speaker #1: But we are we are looking at more than one tender process for the the deep tides river. Okay, okay, another question from Alberto. On the bond market, several Brazilian and international drillers have refinanced successfully in recent months.
Speaker #1: Some cases have meaningfully tighter spreads. How do you assess the current window for Ventura refinancing, and does the recent issuance activity by peers change your view on timing?
Speaker #1: So, Roberto, I'll refer to the answer to the previous questions. They do not change our view, I think. We have a sufficiently strong story, you know, with over a billion dollar backlog, contractual visibility, 29 all the way up to 2021.
[Company Representative] (Ventura Offshore): I think we have a sufficiently strong story, with over a USD 1 billion backlog, contractual visibility, 2029 all the way up to 2031, that we feel very, very confident about going to the market in Q4. We still think there will be a window open, but I think the fundamentals of Ventura, in terms of revenue visibility, gives us sufficient comfort to go to the market in a successful refinancing exercise in Q4. Again, with the added benefit of knowing how much CapEx will be needed for the rigs, with the benefit of knowing whether any consolidation/growth opportunities are down the pipeline, and with the benefit of potentially having a better visibility on future work for the SSV Catarina. Okay. There is a question here by Rafael Coby. Sorry to come back on this subject, but just to confirm my understanding.
Guilherme Coelho: I think we have a sufficiently strong story, with over a USD 1 billion backlog, contractual visibility, 2029 all the way up to 2031, that we feel very, very confident about going to the market in Q4. We still think there will be a window open, but I think the fundamentals of Ventura, in terms of revenue visibility, gives us sufficient comfort to go to the market in a successful refinancing exercise in Q4. Again, with the added benefit of knowing how much CapEx will be needed for the rigs, with the benefit of knowing whether any consolidation/growth opportunities are down the pipeline, and with the benefit of potentially having a better visibility on future work for the SSV Catarina. Okay. There is a question here by Rafael Coby. Sorry to come back on this subject, but just to confirm my understanding.
Speaker #1: That's, you know, we feel very, very confident about going through the market in Q4. We still think there will be a window open, but, you know, I think the fundamentals of Ventura in terms of revenue visibility gives us sufficient comfort to go to the market in a successful refinancing exercise in Q4.
Speaker #1: And again, with the added benefit of knowing how much capex will be needed for the rigs, with the benefit of knowing whether any consolidation slash growth opportunities are down the pipeline, and with the benefit of potentially having a better visibility on future work for the Catarina.
Speaker #1: Okay, there was a question here by Rafael Colby. Sorry to come back on this subject, but just to confirm my understanding. The marketing operations contract for the DVD was signed with Alberto before the merger with Alberto Advantage.
[Company Representative] (Ventura Offshore): The marketing operations contract for the DDU was signed with Eldorado before the merger with Eldorado Vantage. Now, given that Vantage has a marketing operations platform, there is a doubt that this will stay with Ventura. To your first question, that is correct. The marketing and operations contracts for the DDU were signed with Eldorado before the merger with Vantage. Okay. Now, for the existing opportunities, the ones we are offering the rig, the rig will stay with Ventura Offshore, and Ventura will operate the rig. For future opportunities beyond or after the merger of the two companies, I can only assume that Vantage will be offering the rig, right? I think that makes sense. Ongoing discussions that predate the merger, Ventura Offshore is offering the rig. For new opportunities after the merger, Vantage should offer the rig and operate. Okay, another question here from Javier.
Guilherme Coelho: The marketing operations contract for the DDU was signed with Eldorado before the merger with Eldorado Vantage. Now, given that Vantage has a marketing operations platform, there is a doubt that this will stay with Ventura. To your first question, that is correct. The marketing and operations contracts for the DDU were signed with Eldorado before the merger with Vantage. Okay. Now, for the existing opportunities, the ones we are offering the rig, the rig will stay with Ventura Offshore, and Ventura will operate the rig.
Speaker #1: Now, given that Advantage has a marketing operations platform, there's a doubt that this will stay with Ventura. So, to your first question, that's correct.
Speaker #1: The marketing and operations contracts for the DVD were signed with Alberto before the merger with Advantage. Okay, now, for the existing opportunities, the ones we are offering the rig, the rig will stay with Ventura Offshore, and Ventura will operate the rig.
Speaker #1: For future opportunities beyond or after the merger of the two companies, I can only assume that Advantage will be offering the rig, right? I think that makes sense.
Guilherme Coelho: For future opportunities beyond or after the merger of the two companies, I can only assume that Vantage will be offering the rig, right? I think that makes sense. Ongoing discussions that predate the merger, Ventura Offshore is offering the rig. For new opportunities after the merger, Vantage should offer the rig and operate. Okay, another question here from Javier. What is a realistic consolidated effective tax rule of thumb we should assume for our 2027 models? Marcelo?
Speaker #1: So, ongoing discussions that predate the merger Ventura Offshore is offering the rig. For the opportunities after the merger, Advantage should offer the rig. And operate.
Speaker #1: Okay, another question here from Javier. What is a realistic consolidated effective tax rule of thumb we should assume for our 2027 models? Marcel, Javier, I'm going to tell you what we are considering.
[Company Representative] (Ventura Offshore): What is a realistic consolidated effective tax rule of thumb we should assume for our 2027 models? Marcelo?
Marcelo Issa: Javier, I am going to tell you what we are considering country by country. Here for Brazil, the service contract for Petrobras, on the revenue, 11.25%.
Marcelo Issa: Javier, I am going to tell you what we are considering country by country. Here for Brazil, the service contract for Petrobras, on the revenue, 11.25%. Depending on your model, if you are calculating income here in Brazil, 34%. In Indonesia, you should consider 6% on the heavy. That is it.
Speaker #1: Country by country, okay? Here for Brazil, the service the service avenue 11.25%. And depending on your model, if you are calculating income here in Brazil, 34%.
[Company Representative] (Ventura Offshore): Depending on your model, if you are calculating income here in Brazil, 34%. In Indonesia, you should consider 6% on the heavy. That is it. Thanks, Marcelo. A question from José Ruiz de Alda, "When can we expect the refinancing to be announced?" José Ruiz, I think I have answered this already, but again, we are looking at Q4. I have another question from Javier here. "If the Catarina only gets short-term work, how does that impact the late 2026 refinancing? Will the new debt structure still permit dividends without Catarina on a long-term contract?" The answers are no and yes. It would not impact our plans for refinancing Q4. The new debt structure will still permit dividends without the Catarina. The answer is yes, even if we do not have a long-term contract for it. Okay, another question here from Javier.
Speaker #1: And in Indonesia, you you should consider 6% on the avenue. That's it.
Speaker #2: Thanks, Marcel. Question from José Ruiz de Alda. When can we expect the refinancing to be announced? José Ruiz, I think I've answered this already.
Guilherme Coelho: Thanks, Marcelo. A question from José Ruiz de Alda, "When can we expect the refinancing to be announced?" José Ruiz, I think I have answered this already, but again, we are looking at Q4. I have another question from Javier here. "If the Catarina only gets short-term work, how does that impact the late 2026 refinancing? Will the new debt structure still permit dividends without Catarina on a long-term contract?" The answers are no and yes. It would not impact our plans for refinancing Q4. The new debt structure will still permit dividends without the Catarina. The answer is yes, even if we do not have a long-term contract for it. Okay, another question here from Javier.
Speaker #2: But again, we're looking at Q4. I have another question from Javier here. If the Catarina only gets short-term work, how does that impact the late 2026 refinancing?
Speaker #2: And will the new debt structure still permit dividends without Catarina on a long-term contract? So, the answers are no and yes. So, it would not impact our plans for refinancing.
Speaker #2: Q4. And if the new if the new debt structure will still permit dividends without the Catarina? The answer is yes. Even if we don't have a long-term contract for Okay, one another question here from from Javier.
Speaker #2: What is the quarterly breakdown of the remaining Victoria Carina capex before April 2027? What percentage of this has been successfully distributed to vendors to post commencement?
[Company Representative] (Ventura Offshore): What is the quarterly breakdown of the remaining Victoria and Catarina CapEx before April 2027? What percentage of this has been successfully conferred with vendors to post commencement?" Javier, as mentioned, we are not going to provide additional details on the CapEx for both rigs in this call. Again, we are going to be having some further visibility around the Q3 call. That is when we plan to provide you guys additional color on the expected CapEx requirements for the projects. Again, what we can say is that the numbers today have not materially differed from the numbers we informed the market. Okay, one additional question. "Given the market outlook in Brazil and the opportunities ahead, how likely do you see an increase in the number of third-party units Ventura could operate?" The outlook in Brazil, as mentioned, is of a stable market.
Guilherme Coelho: What is the quarterly breakdown of the remaining Victoria and Catarina CapEx before April 2027? What percentage of this has been successfully conferred with vendors to post commencement?" Javier, as mentioned, we are not going to provide additional details on the CapEx for both rigs in this call. Again, we are going to be having some further visibility around the Q3 call. That is when we plan to provide you guys additional color on the expected CapEx requirements for the projects. Again, what we can say is that the numbers today have not materially differed from the numbers we informed the market. Okay, one additional question. "Given the market outlook in Brazil and the opportunities ahead, how likely do you see an increase in the number of third-party units Ventura could operate?" The outlook in Brazil, as mentioned, is of a stable market.
Speaker #2: So, Javier, as mentioned, we are not going to provide additional details on on the capex for both rigs in this call. Again, we're going to be having some further visibility around the Q3 call.
Speaker #2: So, that's going to be planned to provide you guys additional color. On the expected capex requirements for the projects, again, what we can say is that the numbers today have not materially differed from the numbers we informed the market.
Speaker #2: Okay, one additional question. Given the market outlook in Brazil and the opportunities ahead, how likely do you see an increase in the number of third-party units Ventura could operate?
Speaker #2: So, Roberto, the outlook in Brazil as mentioned is of a stable market. So, currently, we do not see necessarily any slugs of more rigs into country.
[Company Representative] (Ventura Offshore): Currently, we do not see necessarily an influx of more rigs into the country. I think supply and demand is pretty balanced. However, that does not stop us from looking at, we like the business model that we actually pioneered here in Brazil with the Zonda of managing third-party units. The Zonda has been a successful case. So much so that we are repeating that with the Deep Value Driller. We will, of course, the board is open to repeat that with other assets, as long as, of course, the assets meet our standards of the asset integrity condition, so we can deliver to the customer what Ventura really delivers. Okay. Another question here. Alberto, on the two-step refinancing. "Reference to potential consolidations, one of the elements requiring more visibility later in 2026.
Guilherme Coelho: Currently, we do not see necessarily an influx of more rigs into the country. I think supply and demand is pretty balanced. However, that does not stop us from looking at, we like the business model that we actually pioneered here in Brazil with the Zonda of managing third-party units. The Zonda has been a successful case. So much so that we are repeating that with the Deep Value Driller. We will, of course, the board is open to repeat that with other assets, as long as, of course, the assets meet our standards of the asset integrity condition, so we can deliver to the customer what Ventura really delivers. Okay. Another question here. Alberto, on the two-step refinancing. "Reference to potential consolidations, one of the elements requiring more visibility later in 2026.
Speaker #2: I think supply and demand is pretty balanced. However, that does not stop us from looking at we like the the the business model that we actually pioneered here in Brazil with the Zonda.
Speaker #2: Of of managing third-party units. You know, the Zonda has been a successful case. That so much so that we are we are repeating that with the deep value driller.
Speaker #2: And we will, of course, be more than open to to repeat that with other assets, you know, as long as, of course, you know, the assets meet our standards of of of the asset integrity condition, so we can deliver to the customer what Ventura usually delivers.
Speaker #2: Okay. Okay, another question here. Alberto, on the two-step refinancing, reference to potential consolidations, one of the elements requiring more visibility later in 2026. Without comments on any specific transaction, can you explain how that factor influences debt financing structure or timing?
[Company Representative] (Ventura Offshore): Without commenting on any specific transaction, can you explain how that fact influences the financing structure or timing, and whether anything has actually progressed since Q1? What happens to the plan if that really does not materialize?" So Alberto, this is opportunistic. Okay, of course, I am not commenting if anything materialized or has progressed, right? I mean, that goes without saying. But this is opportunistic, right? If that does not happen, it does not happen. The refinancing plans carry on, right, without this element. Right? We still have the CapEx requirements for the rigs, right, and we still have the Catarina. So the refinancing plans are unchanged, okay? Now, would a potential consolidation or potential growth acquisition change how we go about refinancing? They could potentially change that, of course. It could change the nature of the refinancing we are looking at. Okay.
Guilherme Coelho: Without commenting on any specific transaction, can you explain how that fact influences the financing structure or timing, and whether anything has actually progressed since Q1? What happens to the plan if that really does not materialize?" So Alberto, this is opportunistic. Okay, of course, I am not commenting if anything materialized or has progressed, right? I mean, that goes without saying. But this is opportunistic, right? If that does not happen, it does not happen. The refinancing plans carry on, right, without this element. Right? We still have the CapEx requirements for the rigs, right, and we still have the Catarina. So the refinancing plans are unchanged, okay? Now, would a potential consolidation or potential growth acquisition change how we go about refinancing? They could potentially change that, of course. It could change the nature of the refinancing we are looking at. Okay.
Speaker #2: And whether anything has actually progressed since Q1? And what happens to the plannings that Ventura does not materialize? So, Alberto, this is opportunistic. Okay, of course, I'm not commenting if anything materialized or has progressed, right?
Speaker #2: I mean, that that goes without saying. But this is opportunistic. Right? If that doesn't happen, it doesn't happen. And the refinancing plans carry on, right?
Speaker #2: Without this element, right? You still have the capex requirements for the rigs, right? And you still have the Catarina. So, the refinancing plans are unchanged.
Speaker #2: Okay? Now, would a potential consolidation or potential growth acquisition change how we go about refinancing? They could potentially change that, of course. You could change the nature of the refinancing we're looking at.
Speaker #2: Okay. But a refinancing will happen on Q4. All conditions remaining as as they are today. Okay, I'm not sure if that answers your question, but I mean, I cannot really comment on whether anything has actually progressed since Q1 because it's something to the appropriate.
[Company Representative] (Ventura Offshore): But a refinancing will happen on Q4, all conditions remaining as they are today. Okay, I am not sure if that answers your question, but, I mean, I cannot really comment on whether anything has actually progressed since Q1 because it is not appropriate. But thank you for the question. Okay, so I think I think that was the last question. Nothing more came up. So I wanted to once again thank you all for your interest in Ventura Offshore, for your questions, and for your continued support, and we will talk again in August. Thank you very much. Have a great day.
Guilherme Coelho: But a refinancing will happen on Q4, all conditions remaining as they are today. Okay, I am not sure if that answers your question, but, I mean, I cannot really comment on whether anything has actually progressed since Q1 because it is not appropriate. But thank you for the question. Okay, so I think I think that was the last question. Nothing more came up. So I wanted to once again thank you all for your interest in Ventura Offshore, for your questions, and for your continued support, and we will talk again in August. Thank you very much. Have a great day.
Speaker #2: But thank you for the question. Okay, so I think I think that was the last question. Nothing more came up. So, I wanted to once again thank you all for your interest in Ventura Offshore for your questions.
Speaker #2: And for your continued support. And we'll talk again in August. Thank you very much. Have a great day.
Speaker #1: Thank you.
Operator: Thank you. This concludes today's webinar. Thank you all for joining. You may now disconnect.
Marcelo Issa: Thank you.
Operator: This concludes today's webinar. Thank you all for joining. You may now disconnect.
