Tidewater (TDW) 28 Feb 232022 Q4 Earnings call transcript

Thank you for standing by. At this time, I would like to welcome everyone to the Tidewater Inc's Q4 2022 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be question-and-answer session. [Operator Instructions]

of Investor President Vice Gotcher, Finance Relations. and West

may begin conference. your You

on and Good Middleton. Earnings Tidewater's joined our morning Chief Cheryl. and Quintin you, Piers Sam Vice and welcome our Conference call President by morning, I'm Financial XXXX Thank Marketing, Kneen; QX President everyone, to of CEO, and this and Full Call. Rubio; Officer, the our Year Sales

factors. implied at that during the most risks These are and During today's available sec.gov. uncertainties forward-looking stated referring by different certain today's on call, that to plans cdw.com are we'll make SEC from for our to at company's to that recent refer any factors expectations. we other conference Form or call. statements these There the actual additional and make through documents and our comment are our that cause be and may website or performance Please XX-K on details materially

this time as time-sensitive information speaks on any longer accurate be Information only no any that February the replay. at of XX, Therefore, advised may presented call of XXXX. you're today,

non-GAAP Also on measures press we'll during GAAP to both non-GAAP can measures. included the release. A tdw.com GAAP of be present financial found and at our reconciliation yesterday's website and is call, financial in

that, the now call turn I'll And with over to Quintin.

reflecting of our today's by fourth improvements Tidewater earnings make the during XXXX call quarter conference business can our the Wes. you, the a industry like and morning, and the Good to I'd to Thank course in difference in year start welcome everyone, call. XXXX. that on

point inflection in long the vessel marked XXXX market. the awaited offshore

a improvement day reflect a rates. XX of to but per improvement have past of will compared XX% rise a seen improved XXXX day full $X,XXX acquisition, not we nearly major full per Average expect over in $X,XXX year, a that the the also day. average for and year increased XXXX, during driven years, pace significant we revenue by day over rates Our

quarter-over-quarter, a We it's year On early average acceleration. up-cycle comment expect perspective, increasing the to see and although XXXX, in day XXXX. to improvements be increases this year-over-year were full rate stopping put approximately $X,XXX nothing throughout basis rate too day for the quarterly To day. we historical day rate day per rates on

Vessel operating margins by points year-over-year. increased over percentage XX

year net Our adjusted we the XXXX positive third EBITDA are year. report measures, nearly XXXX. XXXX. and fourth very acquisition past the successes seminal all closed generated income major quarters XXXX. and as Tidewater, to the and integrated We By quadrupled for compared pleased We a to of over a was in of on

I'm the going performance you let individual regions. give on and details Piers more the Sam of to

on As process to a time provide resumed go when today, the wanted of we to will we handful through, this I explain some a notice want moment many to take guidance, I forward which quarter. topics. non-routine you spend we of

a merger then Jones become Act of our I to on bit want flow. increasing to And industry. allocation, more to related merger free acquisition capital finish to continue describe I then we cash comments generate consolidation philosophy, to some which the important going an topic is wanted up levels Warrants capital on in with the allocation And and -- as current integration.

Some Tidewater you the of new are story. to

have everything the we been new expenses, levels, week. to our We rates forecasted this a every how literally unplanned to increases to general to contracts on in to companies day capture an system changes reforecast have changes been over level months, Sam business price next how that and Years XX a discuss added that ago, So I we utilization moment developed basis in weekly internal over I the and a process and run business take years. to critical past wanted our industry XX is in expected XX running between.

months. next company we the associated Every activity, told these but outlook outside with I've this the that extreme the and review the to over changes evaluate week many been by inside us sounds it's times mostly frequency. as rates XX us have well. people strategy. an industry company important historically quite for dictates tool But our to volatility a developing in us to And been high volatile. assist this in chartering Day sampling that this

mobilization confidence some again in confidence Piers how has you fourth you development hear short and Sam and another the will calls rate is the about the chartering maintaining going closely the day and rates is past position in we relative which movement are comes monitoring see to this today, world. from region taking it mentioned quarter during regions vessels on the to on and from speak operate. costs day around we one we we our in in incurred to relocating in based our

in reports. provide have deliberately reports of confidence based benefit is going of is It's another ability relatively the that nor through developed The Sam optimistic, candid conservative weekly you we guidance But forecast it's of degree assessment these in we The process this the provide and is high neither detailed same later business. refinement forecasting over to our a guidance to for the off to time year. our is call the current our Board.

range guidance a year. year the up tighten range proceed we that we through We provide as with and calendar

information every the for you update quarter outlook possible are the given. will and is we time feel business our best confident We we providing it's at that the

the cash And as the already we of on conclude unlevered. virtually that flow you the substantial are reflect you quickly over As the will to in press poised release years. mentioned for XXXX, several is amount business a next outlook free generate

in to will capital the considered be acquisitions, dividends, see ultimate our all that our philosophy. the It's also if magnitude amount of cash discuss that over easy capital. years correct to allocation fairly appropriate allocation of several it's next repurchases, outlook such generated So is value-accretive, that is the of a share will be mergers,

on First and to new foremost, water. putting we any will not vessels be

reactivated. been has fleet Our

reactivation we mergers in can no our Mergers A and long-term and the acquisitions acquisitions to increase is material overall for We key costs return look used remaining. ability capital. to on be have attribute span increase over water earning vessel individual fleet's vessels control and/or each economies our provided scale. the to those profitability the potential of of of duration of through the vessels on contribute currently our maximize

the add price. our to find a our And fleet. span vessels price has. at purchased pursue more but them, like is not makes consolidating vessels that, right to when with Increasing interested more This fleet to of the disproportionately of we It holders. they're over in make money company just vessels vessels, the sense opportunities it can only the accretive I'm we the with tremendous when control money per adding vessel can amount to make vessels the already they vessels exception. are if certainly the right equity

that all as which the Even generate of to are we through the could value-accretive will return several expect shareholders means addition, industry repurchases. next over deploy we share that dividends fragmented not cash forecasted years as do we is, acquisitions, in money I our to such in and

are a perspective. structured we Now from also with all that need to properly debt capital ensure said, we

debt underleveraged at position As are of point cycle. million, we reflected the in this our $X.X by net

an our to leverage equity use degree value appropriate holders. also should we to So maximize to

shareholders. compatible the not means to volatility. more long we the but business capital it's return current in duration and permit debt issue cash to our restriction $XXX the mention. move matures that bond November have having restriction And need million with through can restricts we cash time, can of in to the allocate XXXX amount markets appropriate leverage last issue we timing but a a our be to even industry's that with This with the the that as that of least, dealt and Leveraging over is

Act in issued this Swire recall million X.X that You acquisition. Pacific Warrants Jones will we Offshore

warrants of have common warrants done the been shares. we have of converted were to US into those Because remain. for Tidewater of two issued equity. now in majority exchange overwhelming This room those common the hold the foreign XXXX. common All an citizens, issued half None transactions to now second shares during warrant owners was of

common relatively common cash amount the a do. credit shares happen us will be not you in those when contact or warrants into of please Remember those a if warrants small XXXX, to shares. convert were that So to dividend, issued receive holding that

so, been been around world. an But I five and in It's acquisition just As two consolidation, additional it's to that want have getting accurate major we years. diligence closed say happen. not may due experience in think may non-stop the due non-stop over only so a diligent to we've the our everyone that deals. it in or I our relates disciplined enjoyable over comprehensive or We're years strategy to consolidation competitors caution or past five of those such past the understanding

first changed use is that consolidation, the future you As the did I deals two I suggest is outlook we has equity low. perspective about for can deals for the that those to to the for willingness that the those and would not the potential to think be I Again, state purchased right right one focused Due that price for from unlevered cash very and are generation on company, opportunities the more at am vessels of rule. the cash. those the exception our

group of It the on was tough. by that had first to Offshore a people XX effort the close throughout pleased I'm brought the projects X. relate always happy a without infrastructure into integration process recent was talented period to to monthly integration. eight-month running Swire Integrations and fully We also went most I'm effect are integrated of acquisition over very relay Herculean newly separate a this through the business Pacific to January the hitch. Tidewater

the because the the And and of is track begin We this the recall synergies. are integration, with of We that reduced realization synergies you third accelerate full of on of eliminated. from processes quarter. systems realization anticipate we we've to the the are will by GulfMark occur end may realization synergies certain our when the redundant as

quite for to function improvement a is to inherent during flow working XXXX. free of our of three flow million, third generation absolute the in principally level million of flow cash business. incurred cash improvement of operating the cash the the of sequential cash free free representing the realized. in the flow quarters with of $XX.X generation I'm efforts first $XX.X million quarter, a indicative quarter improvement is Further quarter this compared The leverage capital sequentially. $XX.X the was pleased investment the and Free reverse sequential the

We have free utilization to as costs generate a incremental in off total rates cash day now position fleet increase. point have and where we leveled and a are meaningful reached operating flow our

continues We do to other and the proportional as in business expect to capital continue do grow to we we working investments to working capital will any as slightly manage make continue capital expenditure.

-- get would the we of in didn't stacked or We of with. held quite that all them all have reactivated end XXXX get sale. originally anticipated dealt for remaining our sold of by assets We

As of of have vessels we total eight remaining. a now,

We of working in are of and half four stages of to eight the over the various sale four of resolve are the first negotiating remaining XXXX. vessels remaining the

And let markets over turn with that, call performance company's an to Piers, overview for me and the the global within. of the

morning, and everyone. Thank good Quintin, you,

talk Tidewater's it's the as to and be in about global to to to our releasing commitment an Quintin's sustainability released. just extremely report has for context, a is wanted we'll look that I historical into week is and well that out core reiterate Tidewater's it market report of the that at Before the showcase the our latest Please ESG important DNA. when mention always with be our that as our wider continue ESG. our at something And about performance stakeholders of end some of will to and comments we been I future part report, always great sustainability third

greater we as crystallize happening during period. through themes and I talk in and Sam we through our what develop year detail, in wanted through XXXX what of saw the Tidewater XXXX this go goes Before and beyond some during and numbers cycle the to we up achieved see

growth XXXX Total peak market's the Clarksons big XXXX scope little down XXXX. according stack future in theme both in limited was to OSV Due the supply OSV meet to of increase the or some The any in to demand. X% with XXXX order in underlying that there is and XXXX realization and Research, remaining supply, was we any supply limited for for since was and OSV expect fleet, don't book to additional time. suboptimal growth see

brokers projecting throughout On global for XXXX X% XX% side, strengthen demand OSVs demand the with continued to during overall offshore further sentiment in XXXX. increasing demand with XXXX a increase

demand the the OSV in impact increase XXXX, side to we see On in continue the rates and in shortness year. positively supply throughout

$XX,XXX circa time one-year charter reporting PSVs day in $XX,XXX per per and with largest market global day during one the time All in as With push averaging rates for to rates year new $XX,XXX is compared Clarksons a indicators, for charter XXXX. day levels Research at to and to being compared $XX,XXX rates positive per XXXX. continued whole, large per disciplined AHTSs day XXXX the

we for XXXX, us to one our when the quickly largest composite key allow to has per seen increase was contracts bidding cycles. day almost very been our to up from with and by day QX XXXX, XXXX fleet push pushing team The rates. have day very strategy previous crew chartering XX% new in and more of higher $XX,XXX rates fleet as new what being During rate vessels to remained an whole our in shorter-term world our to as stay $XX,XXX on disciplined in smallest the talents focus double disciplined from successful roll to possible vessels at our than to keeping onto to of across has achieved QX a boats per

our with Europe. day rate day strong and regions year jumping day through from rate QX significant very XXXX Working fleet This average day per rates per increases composite QX to classes various across in had in $XX,XXX vessel with XXXX. with a all starting of $XX,XXX region overall a

year we And and £XXX,XXX anchor we during anchor rates to traditional per which spot XXXX look calls, Sea own beyond, QX on out periods saw the we day high AHTSs classes projects $XX.X previous offshore for project the new driven During for gas the again record day see of drove and XXXX strong saw Norway continuing QX, of lower large turn handlers our for beyond North larger in being of part handlers for XXXX. and expect XXXX. season in as rates rates as out where market in improve all billion with in region term and in longer to demand forward approved this we and CapEx in throughout work PSVs vessel oil to XXXX mentioned

in fleet Africa to the day our which in in a we operate rate activity per during QX across Moving day XX% saw where to the in have fleet in increase. QX XXXX, is of composite increase turn increase significant to per course of an in largest $XX,XXX which our led we all that we XXXX a jumping in countries XXXX, $X,XXX

and excess AHTS class in day for largest rates $XX,XXX edge winning day. $XX,XXX of our work leading saw we XXXX, QX During excess rates of on medium PSV per in day per our

subsea in As increase by through no expected we we look driven will the region forward the in an through all the the OSV well for supply also XXXX, XXXX, number region additional see large in space. offshore announcements which and by of out construction bodes floater demand beyond let up upcycle OSV sustained and projects of require for XXXX in but in activity both in a region

from competitive active of still NOCs market vessels in strong continues market and large to region, is Middle which tendering this very to per prior excess over continue day in us per AHTS enabled vessel rate to QX our composite that in day. QX for region drive were to XXXX. in Leading-edge region rates fleet per $X,XXX of of day $X,XXX day for XXXX the East, XXXX tighten. with but see the the we've the the as levels calls in from In class smallest mentioned a on during $X,XXX But our the XXX

new last to we're seeing for in out to still and the other more of seeing beyond Again, XXXX. world, companies demand slowdown of region from the significant NSCs the the looking no are the region. construction well that the boats the rigs from Similar out any of significant areas to as activity projects rest signs we as in would year, support tendering

XXXX day of again AHTS with jumping to the In and we the $XX,XXX class in rate quarter. largest for we the XXXX Outside during day Act, XXXX. largest per of throughout per excess from improvement same $XX,XXX PSV QX our per during per a our saw Americas for class of in excess day $XX,XXX day rates significant in dayrates of XXXX fleet saw the QX Jones $XX,XXX composite data in QX

rates foreign of we in work PSVs During in XXXX we per of And saw Mexico. steady due of saw flagged influx flagged a country. being tonnage of indicator Brazil in very $XX,XXX day the A in Brazil positive delicate Gulf in support just of to allowed the excess tonnage, for projects to supply-demand a lack the country the globally. Brazilian available also but in how balances, not large

strong significant exacerbated further the the in supply primarily to in countries beyond is we several region with by expected the operate and currently further by led Brazil. in and in construction in being stay region exploration XXXX in region slated which Demand projects all

in Pacific, Lastly, see during during second little to our start started year than the but pickup a in Asia other we to XXXX. a demand expect slower off regions, we of which of blossom XXXX half some the really see

fleet But increase, XXXX, day push the we year. in which to $XX,XXX QX earlier per fleet in from of $XX,XXX the were day per to XX% to still most acquisition XXXX spot due in is the a able QX of rates composite

QX, rates we in $XX,XXX anchor $XX,XXX of per for edge for in rates excess medium-sized excess and day leading class PSV Asia. handling our largest achieved our In in day day of per in class Australia of

for strong which Swire the acquired in the in In we XXXX, country placed with to presence windfarm Taiwan seeing a through we're we up-tick are demand support transaction. projects which in our well

some demand term. activity Malaysia region longer much the year, projects as positive very starting Again, higher we a with the are of Australia, And of support the to level operate already in all in in other tendering for Indonesia. whole throughout which of and to second half see the we signs regions the

but on also of equitable are be and terms our line in remain we the improve focused course the realities for them disciplined contract that parties in we marketplace more and we rates, with aiming to of with to push XXXX will For to into enter will continuing beyond, today. customers make and we more both the

Overall, direction the move into and during XXXX the period the as foreseeable growth Quintin, with very to XXXX of OSV and very how market pleased would continued a the sustained into during positive mentioned are right we in for develop market space the how front. are by about,

And over to Sam. with you. Thank it that, hand I'll

results these you take activity quarterly like by Thank time, you, Piers points everyone. turn full begin that will I results. I good up key morning highlighting financial the this the make At and discuss to our through some would to and and results. year

For the compared $XXX.X increase to in to the the main million fleet XXXX, in addition of the XX%. year, million increase. we generated and revenue day of The rates Swire an revenue of the $XXX drivers were increase

year, margin operating Vessel million, of loss We and for generated $XXX.X year we income the compared XXXX. and $XX.X for third compared a $XXX to to fourth reported million million in million was a in XXXX. quarter loss in net net the the of $XX.X net XXXX of

success Operationally year million $XXX.X Adjusted we approximately year-over-year. margins to are full XXXX, $X,XXX per rates EBITDA points, a by XXXX, was the the average day operating and for quite almost XX%.XXXX percentage million of an in for and year increased increase improved XX.X achieved. to pleased day was vessel we report $XX.X compared

on have we our earnings guidance. release, once begun again to report As forward noted

be margins operating the we $XXX based million are be range estimating recent to our So to our to vessel as XX% most revenues of and between XX%. to and $XXX in forecast, we on million, look XXXX,

focus And I through quarter the comparing quarter discussion our will XXXX. the XXXX the past on my fourth the would of sequential results, quarter. in attention turn now like to quarterly of to third primarily as

$X.X per net reported diluted we diluted $X.XX quarter, million of per fourth compared quarter. share or third net of the income million $X.XX income $XX.X the share for to For or

now in bankruptcy reported first consecutive the our XXXX. income have for time, We since net emergence from

Our the million. the million fourth of $XXX.X for quarter $XXX.X from was revenue down revenue quarter million, $X.X third

vessels and out the or our Sea Mediterranean region, QX region, of QX Pacific and vessels our we seasonal come each primarily the Europe The of operations in North mobilizing their in and And which occurs impacted that saw contracts perform from area decrease resulted dry in off year. normally results. the our transiting to in docks vessels overall Asia decline

to quarter Gross down Active were rates to per percentage margin decreased QX. in third day marginally Average fourth day per day XX.X%, the XX.X% flat compared to QX. for to compared XX.X% decreased utilization $XX,XXX from at $XX,XXX in QX in quarter. XX.X% in essentially the

by costs, Vessel operating fuel and of the higher and million, were from for new vessel costs out to contracts in mobilize costs achieve to an of $X.X increase million higher we margins. quarter driven $XXX.X continue repair as principally vessels QX higher

fuel quarter, day of additional operating operating relocated added to our which of result the In we cost to per increased day six quarter. vessels per different the our in costs $XXX,XXX $X,XXX to expense. The the areas marketed approximately almost costs vessel

We continue synergies the realize SPO with identify associated to acquisition. operating

realized million. was anticipate We target to of $XX original to approximately QX and $XX be Our XXXX. we million date remaining by realized synergies the

operating operating net In in these vessels, expense. sold for million sale QX. a vessels. in recorded gain $XX.X the on the and million proceeds quarter the of to $X.X a we The four with We held the compared income coupled due $XX.X increase in of revenue, the million million $X net two fourth primarily quarter, during is for of quarter sale, to assets decrease from for the decrease of generated

below in the associated compared $X.X million cost the $XX.X fourth cost, quarter well G&A for to for included, for initial the continues be SPO of $X.X about burdened the expectation which transaction legacy by was with costs million SPO QX. in our also about million fourth $X.X quarter. $X.X associated quarter acquisition, to million was with $X.X G&A million G&A the higher quarter costs QX. million the than of

our have target basis, million, the million $XX $XX of achieving of as anticipate QX the completed implementation. approaching part approximately a an synergy which significant that replaces On we by our now is We this XXXX SAP end annual that will synergies target. materialize

to cost incur G&A of transaction in expect additional XXXX. QX do year was million. $XXX.X costs We the our For total

for XXXX is our be to costs these estimated million. G&A $XX costs Excluding

million million dock In incurred by deferred we $XX.X the quarter, incurred utilization QX. we In affected quarter, drydock costs compared to which in the days of $XX.X X%. XXX dry

For million million. XXXX about be $XX the incurred Drydock costs. expected cost we is full year, drydock in $XX for to

also upgrades monitoring installations in and capital In about systems. fuel IT vessel QX, incurred including we expenditures battery related million $X.X including to modifications

year, receivable this For including We to XXXX. invest cash resulting increased amount, we expect capital driven million more capital expect to activities the million began as we possible. to million free to incurred $XX.X manage the increases. accounts have which $XX.X from full collections and doubled approximately working in quarter expenditures we incur from however, as this QX in prior operating We flow in monetize quarter, than as grow; revenue revenue generated to $XX capital continue to of as do by we strong cash tightly working continues

QX vessels In assets began to on XXXX, held sheet we sale. reclassifying of for our from and equipment balance property

held sale program. vessels At we end We of million. a eight have vessels for in QX XXXX, assets XX had this $X.X through at the remaining run since of value

During the quarter, for two held assets million. from proceeds sale $X.X for we of vessels sold fourth

the we redemption for approximately In of invention that X common XXXX, issued have acquisition. for the were part shares equal redeemed SPO we remaining. all public warrants stock November, number X.X warrants with our million of -- to SPO the our completed of total, redeem the a warrants million Swire of as to offering warrants

to performance regions. the on of I like would the now focus

to income operating Americas million of $X compared quarter million of income XXXX. Our in operating for $X.X the of reported QX region

reported same was the operated was in XX%, $XX.X quarter. revenue compared region QX. utilization The XX in $XX.X the Active to for The unchanged prior from million QX. QX in quarter average of quarter, the region also vessels as which million

X.X% increased the operating rates $XX,XXX The to day increase in primarily from $XX,XXX in improvement in QX. revenue. day was Additionally, due per income to

million average vessel an quarter. of $X.X to revenue compared quarter the $XX.X average compared vessels, QX. The fourth reported prior the Asia-Pacific to in the QX. million the loss reported $XX.X region The which quarter, compared million down XX to region operating profit was of operated For fourth $XXX,XXX an one operating for in region at on of

decreases QX. the Day one QX by compared dry XX.X% in compared decreases less Revenue as the movement in utilization to Active per by the of docks of contracts, to in the operating $XX,XXX region, incurred one slightly influenced quarter. XX.X% decreased vessel the rates revenues and principally declined of The were per out partially quarter to expiration vessel to we day lower quarter. were operated in $XX,XXX QX. in costs, the day in offset in

profit region remained fourth the quarter, The and the $XX.X an For compared million $XXX,XXX in reported reported $XX.X region Middle in of $XXX,XXX prior operating an QX. quarter-over-quarter East operating to quarter of to profit million fourth of the compared steady the revenue quarter. in

compared slightly operating than to to primarily due income operated in which the per day The in per in vessel to in QX. higher day QX. XX rates in declined remained same decrease one Active revenue. was QX vessels, region the $X,XXX The utilization was XX% at Day decrease $X,XXX the quarter.

decrease $XX.X we QX, to QX, million and million Our to million seasonality to compared region QX. compared operating in QX. Europe of Typical $XX.X occurred revenue $XX.X in saw million $X.X operating in of Mediterranean income as reported income in

operated one region vessel of less to was QX. activity vessels from the decreased in there utilization in as XX.X% XX winter The an was the in which increase The to in the decrease Active months. is quarter, QX. to XX.X% seasonality, utilization due compared

dry addition, of had a process utilization. overall couple that In docks in we affected the

per in saw per a also day $XX,XXX $XX,XXX decline day compared XX% to to QX. rates day in We

QX rates the recall that North rates increased day in to in may Sea. handler significantly day achieved the due You leading-edge Anchor by our

and costs, quarter with the the higher coupled operating vessel in income operating in mainly was decline by The the driven in for one revenue, operated we extra decrease region. as transferred

to market West increase operating The operating we income eight continued has income compared $XX.X revenues this Africa in quarters. improve, million QX, Our as to in seen reported of in QX. $XX.X for of million have region area steadily straight

QX for from $XX.X average vessels less operated QX. The compared two Active was utilization in million to XX.X% XX.X% in QX. QX $XX.X in on increased Revenue million region QX. in to

X% continue in costs, coupled from in rates two per region. as in to QX. with operating per QX from we operating revenue $XX,XXX a to day lower higher day saw from The $XX,XXX QX resulted operated increase increase vessels the in as Day increase income less

are as overall In with Sea. is typically relocated dry be days number high seasonality will a QX, results. we results. and to QX which QX affected also of North pleased expected, the quarter, summary, dock areas occurs In that vessels in the our results had we below

day the in increase revenue We are year. to rates half the throughout the the newly increase second and see acquired year, encouraged the driven SPO in by vessels of

We many underutilized Tidewater our upturn to see now in industry, advantage also beyond. for previously the and will leading stacked put of remain of take by position we the the legacy XXXX which us encouraged we strong as a vessels, indicators reactivated in

successful individuals that X.X go-live from our month since This I made system close and January without a SAP. short of ERP want X, in a very of this Finally, was possible to a had The months. XXXX days we end we first our we which have but have in thank a teams SAP Oracle was lot eight accomplished problem. talented hard do legacy for work, implementation the group SPO

to over turn that, Quintin. With I'll back it

leg as customers plan and you, into up continues by activity XXXX Thank our what Sam. accounts for another be offshore appears all to momentum in Commercial XXXX. in

take classes. We continue in commercial rising strategy our staying all in day all vessel short regions chartering of be rates advantage to of to committed to

cash view coming earnings generation the to best to as drive quarters. the flow over this continue free and We strategy

will Cheryl, open with up And it that for we questions.

is question Hans first Your go of Instructions] [Operator Clarksons. from Please ahead. you. Lund Thank

is open. line Your

XXXX? XXXX the color committed Yeah. contracts on fleet in on you. and perhaps of how in percentage Can Thank some you provide of terms much is

hold Hans on numbers the of to better a up you looking some Sam right second idea Yeah, what number. is give that one of is. here you give an we'll

tell thing we're intention will get longer short I is we However, you term. that because until more a that to minimize in up number going locking to our comfortable

some if year? you gave there able the next XXXX, for mean guidance I number to perhaps backlog on if Maybe to you you're have you look but do -- XXXX,

Yeah.

be it'd XX% Hans, we XXXX So in percentage-wise have and contracted of XXXX XX%.

those of value terms of in then have XX% backlog or... do in And Perfect. you that XXXX, Okay. the number

XXXX $XXX Yes, is million. is XXXX million and so $XXX

you versus guess think and and I could asking in And what expect then increase annual such as I'm of to is…? XXXX, guess, XXXX XXXX? as an EBITDA to on compare I terms basis Perfect. EBITDA revenue XXXX, you do staying XXXX increase on in you if revenue

in yeah, increase profitability do. will So, And I fact disproportionately. I think even

accelerating So are have rates boats a are still in as increases day you. year-over-year in $X,XXX. just over earlier we're that the That's the lower And the maybe for I little we talking to that going were and and approximately that some day off. charter at are rolling about implicit that done and XXXX, we to we're guidance it rates a be as on seeing $X,XXX rate XXXX in see XXXX call, relates in XXXX like

anticipation is that $X,XXX the see that increase even more means increase would just essentially or So my than which percentage a much in XXXX, as higher. be we'll year-over-year, rate

But it. think SG&A lastly you I XXXX, Sam terms just in about million? to in SG&A that for at just Okay, you upon did perfect. say expect come touched $XX And then of

Yes. correct. That's

be expected docks And then to XX. dry

That’s Drydocks correct. at XX.

you. Thank right. in That’s All for it me. queue. jump back Perfect. just I’ll

is question next Golikja of Fearnley Your go ahead. Securities. Please from Ina

open. is line Your

here also heard let's my you just pressure was XXXX? like cost markets Hello, but have see, question. end also about What's from just like the everyone. a talking you bite. to the Because in we getting tighter I were for and overall the mentioned little they the say of inflation bit taking average G&A, Norway but starting the what cost. thinking owners Thanks level

-- if on bit you. XXXX and in So XXXX? I could to increase you more cost is color -- think give how a what Thank you will much wanted just

mentioned XX% for we margin a of as Ina, the range in XX% to XXXX. So

Yeah.

the in implicit X% we're experiencing synergies of Swire I And for there's think labor transaction and have certainly is things as are that X% But that else Pacific everybody a couple that's rolling are in to that general other to is that down. things. also that through on range. going we bring increases price level There happening.

magnitude is that to vessel on basis overall So, X% a at in range. the you're if looking dollar X% per

For 'XX or 'XX-'XX.

on is doesn't it pressure nice actually more and is the laborers jump. constrained that So if fact the others. early supply just 'XX thing don't so on that, channel, put to is supply our I -- about too

the day are the rates with increases no So once to all lift boats in rates. working pressure essentially, commensurate there's

is better to my we you we'll stabilize that. that, So, 'XX, get that give hope see as in we'll closer but guidance

Thanks. Okay.

mention to like Just see for average a little utilization you bit utilization, the two next years.

to but you think you limitations, Well, where period. on the I increasing, a about it reasonable me see right? over to time utilization, in So, let it have it see down I break definitely

you go there's I a dry give talk that you month, be But a to me X% if if year, to give So, X.X% XXX% about going utilization. always box. you could for

we're down that's right? things that, some out. to repairs, to is theoretical belief be cycle and do continuing X% But So to the the my the case. to year, high going So, and over hope -- But be go also maximum frictional certainly a to you low be There's that going in cap Now, is I anticipate unemployment going XXs. be so. going so for for range, your ever I always right? going think X.X% of that, about and I to XX% to like there's the that's as strengthen, we see XX% XXs that move it into don't out will

the like see I you vessels into are one mentioned you here you at strong season And more the Sea, heading do Thank Okay. heard the if we as mobilized I you. have vessels least summer correctly, the towards you in to it North this Mediterranean, see moving region? that -- do of

market market certain I I see goes. the areas. in the very is obviously mean, strong think, we'll where

be where as We'll mobilization going rates. to we long can vessels are highest move the mobilization work, we're paid -- we'll as off So vessels required, push our fees fees. getting where accordingly,

going anywhere, to open we're yes, properly. So as we're as long paid

Okay. you. Thank

further will I now call Quintin over There for no the closing are to remarks. turn this questions Kneen at time.

forward May. again Goodbye. everyone, Thank look and in you, you Cheryl. you, Thank to we updating

you This for participation. Thank concludes your call. today's conference

now disconnect. You may