Babcock & Wilcox Enterprises Inc (BW) 2024 Q2 法說會逐字稿

Good evening. My name is Makaia, and I will be your conference operator today. At this time, I would like to welcome everyone to the conference call. (Operator Instructions)

晚安.我叫 Makaia，今天我將擔任你們的會議操作員。此時，我謹歡迎大家來參加電話會議。（操作員說明）

Sharyn, you may begin your conference call at this time.

Sharyn，您現在可以開始電話會議了。

Thank you, Makaia. And thanks to everyone for joining us on Babcock & Wilcox Enterprises Second Quarter 2024 Earnings Conference Call. I am Sharyn Brooks, Director of Communications. Joining the call today are Kenny Young, B&W's Chairman and Chief Executive Officer; and Lou Salamone, Chief Financial Officer, to discuss our second quarter results.

謝謝你，馬卡亞。感謝大家參加 Babcock & Wilcox Enterprises 2024 年第二季財報電話會議。我是通訊總監 Sharyn Brooks。今天加入電話會議的還有 B&W 董事長兼執行長 Kenny Young；和財務長 Lou Salamone 討論我們第二季的業績。

During this call, certain statements we make will be forward-looking. These statements are subject to risks and uncertainties, including those set forth in our Safe Harbor provision for forward-looking statements that can be found at the end of our earnings press release and also in our Form 10-Q that was filed this afternoon and our Form 10-K that is on file with the SEC and provide further detail about the risks related to our business.

在本次電話會議中，我們所做的某些陳述將具有前瞻性。這些陳述受到風險和不確定性的影響，包括我們的前瞻性陳述的安全港條款中規定的風險和不確定性，這些條款可以在我們的收益新聞稿末尾找到，也可以在我們今天下午提交的10-Q 表格和我們的表格中找到。

Additionally, except as required by law, we undertake no obligation to update any forward-looking statements. We also provide non-GAAP information regarding certain of our historical and targeted results to supplement the results provided in accordance with GAAP. This information should not be considered superior to or as a substitute for the comparable GAAP measures.

此外，除非法律要求，我們不承擔更新任何前瞻性聲明的義務。我們還提供有關我們的某些歷史和目標結果的非 GAAP 信息，以補充根據 GAAP 提供的結果。該資訊不應被視為優於或替代可比較的 GAAP 衡量標準。

A reconciliation of historical non-GAAP measures can be found in our second quarter earnings release published this afternoon and in our company overview presentation filed on Form 8-K this afternoon and posted on the Investor Relations section of our website at babcock.com.

歷史非公認會計準則指標的調節可以在今天下午發布的第二季度收益報告中找到，也可以在今天下午以8-K 表格提交並發佈在我們網站babcock.com 投資者關係部分的公司概況介紹中找到。

I will now turn the call over to Kenny.

我現在將把電話轉給肯尼。

Thanks, Sharyn, and thanks, Makaia, and good afternoon, everyone, and thanks for joining us on our second quarter 2024 earnings call, we continued to build on our strong start to 2024, which drove a robust second quarter results across all of our businesses. Our results in the second quarter reflect the increased demand for our portfolio of technologies that support the generation of efficient and sustainable energy, regardless of fuel source.

謝謝 Sharyn，謝謝 Makaia，大家下午好，感謝您參加我們的 2024 年第二季度財報電話會議，我們繼續在 2024 年強勁開局的基礎上再接再厲，這推動了我們所有部門的第二季度業績強勁企業。我們第二季的業績反映了對我們的技術組合的需求增加，這些技術組合支持高效和可持續能源的產生，無論燃料來源如何。

And B&W is well positioned to capitalize on the continued growth in natural gas conversions, environmental solutions, carbon capture and clean energy opportunities globally with utility and industrial customers. We are excited about the progress we're making to advance our revolutionary ClimateBright decarbonization technologies, including our innovative BrightLoop system that creates hydrogen without incineration or gasification to support the world's energy transition.

B&W 處於有利位置，可與公用事業和工業客戶一起利用全球天然氣轉換、環境解決方案、碳捕獲和清潔能源領域持續成長的機會。我們對我們在推動革命性的 ClimateBright 脫碳技術方面所取得的進展感到興奮，其中包括我們創新的 BrightLoop 系統，該系統無需焚燒或氣化即可產生氫氣，以支持世界能源轉型。

We continue to see opportunities for new bookings this year for these types of hydrogen generation and carbon capture projects, and we'll discuss some exciting new developments later during this call.

今年我們繼續看到這些類型的氫氣和碳捕獲項目有新的預訂機會，我們將在稍後的電話會議中討論一些令人興奮的新進展。

Additionally, our teams have worked hard to reduce our overall cost improve our margins as we are seeing the benefits of our more selective market approach and target of higher value projects and opportunities. We've also seen an increase in paid front end engineering design or FEED studies regarding various biomass, carbon capture and hydrogen opportunities.

此外，我們的團隊努力降低整體成本，提高利潤，因為我們看到了更具選擇性的市場方法和更高價值項目和機會的目標的好處。我們也看到有關各種生物質、碳捕獲和氫機會的付費前端工程設計或 FEED 研究有所增加。

We expect that a few of these FEED studies will lead to booking opportunities over the coming years and we are looking at expanding our engineering teams due to the increased demand for these studies.

我們預計其中一些 FEED 研究將在未來幾年帶來預訂機會，並且由於對這些研究的需求增加，我們正在考慮擴大我們的工程團隊。

As mentioned, we generated another quarter of strong operating results during Q2, highlighted by adjusted EBITDA that exceeded our expectation and keeps us on track to achieve our full year adjusted EBITDA targets.

如前所述，我們在第二季度又取得了強勁的經營業績，其中調整後的 EBITDA 超出了我們的預期，並使我們有望實現全年調整後的 EBITDA 目標。

Based on the combination of strong thermal parts bookings and new customer activities and better than expected adjusted EBITDA through the second quarter of 2024. We are reiterating our full year adjusted EBITDA target of $105 million to $115 million despite the sale of our Danish renewable services subsidiary, which was completed during the second quarter.

基於強勁的熱部件預訂和新客戶活動，以及截至 2024 年第二季的調整後 EBITDA 比預期好。儘管我們在第二季完成了丹麥再生能源服務子公司的出售，但我們重申全年調整後 EBITDA 目標為 1.05 億至 1.15 億美元。

The proceeds from this sale improved our balance sheet and demonstrates the execution of our stated intent to sell certain non-strategic businesses. Importantly, we remain in negotiations related to the sale of other nonstrategic assets with proceeds expected to significantly reduce our debt obligations, improve liquidity and support growth working capital.

此次出售的收益改善了我們的資產負債表，並證明了我們出售某些非策略性業務的既定意圖的執行。重要的是，我們仍在就出售其他非策略資產進行談判，預計所得款項將大幅減少我們的債務、改善流動性並支持營運資本成長。

We also continued to make progress on our cost reduction efforts during the second quarter, achieving $25 million to date as we work toward our target of over $30 million of annualized cost savings. We have significantly improved the cash in our solar operations, which produced $6 million of cash in the second quarter and is now generating positive EBITDA results despite its classification.

第二季我們在成本削減方面也持續取得進展，迄今已實現 2,500 萬美元的目標，並努力實現年度成本節約超過 3,000 萬美元的目標。我們顯著改善了太陽能業務的現金狀況，第二季產生了 600 萬美元的現金，儘管其分類，目前仍產生積極的 EBITDA 業績。

In parallel, we continued utilizing cash to ramp up our investment in BrightLoop and ClimateBright as we continue developing the pipeline of opportunities and anticipate bookings later this year. These actions and our improved margins are creating a pathway that will allow us to improve our liquidity as we focus on reducing our long-term debt we expected growth and anticipated higher margins of our BrightLoop, low-carbon hydrogen technology and our ClimateBright decarbonization technologies should also lead to continued higher margins in the future.

同時，我們繼續利用現金增加對 BrightLoop 和 ClimateBright 的投資，繼續開發機會管道並預計今年稍後的預訂。這些行動和我們提高的利潤率正在創造一條途徑，使我們能夠提高流動性，因為我們專注於減少我們的長期債務，我們預計BrightLoop、低碳氫化合物技術和ClimateBright 脫碳技術的成長和預期更高的利潤率也應該導致未來利潤率持續走高。

I would like now to discuss our strong second quarter operating performance in which our adjusted EBITDA exceeded the company's expectations. These results, combined with strong bookings and year to date set the stage for us to reiterate our full year adjusted EBITDA target range. We are already seeing the benefits of our strategic plan as adjusted EBITDA margins expanded during the second quarter of 2024, representing 100 basis points of improvement compared to the second quarter of '23.

我現在想討論我們第二季強勁的營運業績，調整後的 EBITDA 超出了公司的預期。這些結果，加上強勁的預訂量和年初至今，為我們重申全年調整後 EBITDA 目標範圍奠定了基礎。我們已經看到了我們策略計畫的好處，調整後的 EBITDA 利潤率在 2024 年第二季有所擴大，與 2023 年第二季相比提高了 100 個基點。

Our margins are benefiting from the shift to reduced reliance on high interest, low margin newbuild projects. Our margins have been further supported by strength across our aftermarket parts and services businesses.

我們的利潤受惠於減少對高利息、低利潤新建案的依賴。我們的售後零件和服務業務的實力進一步支撐了我們的利潤率。

From a segment perspective, our environmental business was a standout performer during the second quarter with revenue increasing 15% compared to the second quarter of 2023 and margins that continued to expand, which drove a 97% increase in total adjusted EBITDA compared to the second quarter of 2023.

從細分市場來看，我們的環保業務在第二季表現突出，營收較2023年第二季成長15%，利潤率持續擴大，帶動調整後EBITDA總額較第二季成長97% 2023 年。

These results were primarily driven by higher margin product mix, along with a favorable close out of the flue gas treatment project. While revenue declined year over year in the Renewables segment as a result of our strategic shift to be more selective and reduced the number of low margin new-build projects that we pursue adjusted EBITDA increased 40% compared to the second quarter of last year, benefiting from our cost reduction efforts related to the restructuring of our renewable business.

這些結果主要是由於更高利潤的產品組合以及煙氣處理項目的順利結束而推動的。雖然再生能源領域的收入同比下降，但由於我們的策略轉變為更具選擇性，並減少了我們追求的低利潤新建項目的數量，調整後的EBITDA 與去年第二季度相比增長了40% ，受益於來自我們與再生能源業務重組相關的成本削減努力。

Thermal revenues declined compared to the second quarter of 2023 as a result of a completion of a large construction project in 2023. However, customer demand for our thermal segment products and services remained strong as demonstrated by bookings in the first half of 2024 that exceeded bookings in the same period of 2023, and we anticipate a strong Q4 based on previously announced gas conversion projects and recent parts and service bookings.

由於 2023 年大型建設工程竣工，熱力收入較 2023 年第二季下降。然而，客戶對我們熱力領域產品和服務的需求仍然強勁，2024 年上半年的預訂量超過2023 年同期的預訂量就證明了這一點，根據先前宣布的天然氣轉換項目和最近的零件和服務，我們預計第四季將表現強勁。

We continue to see strong underlying industry trends with expanding global demand for clean power production and energy security and a global pipeline of identified project opportunities of over $9 billion, which includes over $1.5 billion of BrightLoop and ClimateBright opportunities alone. These trends are foundational drivers for our business outlook for 2024 and beyond as we continue to make considerable progress and converting this pipeline into bookings.

我們繼續看到強勁的潛在產業趨勢，全球對清潔電力生產和能源安全的需求不斷擴大，全球已確定的專案機會超過 90 億美元，其中僅包括超過 15 億美元的 BrightLoop 和 ClimateBright 機會。這些趨勢是我們 2024 年及以後業務前景的基本驅動力，我們將繼續取得重大進展並將此管道轉化為預訂。

Moving through the second half of 2024, we anticipate prospects for continued new bookings and strong financial performance. Our backlog and implied backlog at the end of the second quarter was $472 million and $757 million, respectively, representing a slight decrease in bookings, but an increase of 39% compared to the backlog and implied backlog at the end of second quarter of 2023.

展望 2024 年下半年，我們預期新預訂量將持續成長，財務表現將強勁。第二季末的積壓訂單和隱含積壓訂單分別為4.72 億美元和7.57 億美元，預訂量略有下降，但與2023 年第二季末的積壓訂單和隱含積壓訂單相比增加了39% 。

As we introduced last quarter, the implied backlog figure includes awarded projects as well as those under contract and have not been fully released for performance and provides a better representation of our customer demand.

正如我們在上季度介紹的那樣，隱含的積壓數據包括已獲獎的項目以及合約中尚未完全釋放績效的項目，並更好地代表了我們的客戶需求。

Looking ahead, given the new EPA requirements, we are seeing increasing opportunities for coal to natural gas and coal to biomass projects within the United States, which is very exciting for us as we look to the remainder of 2024 and into 2025, many of these projects are either under development in the proposal stage or in final design and have with revenue ranges of $50 million to $400 million in value for B&W.

展望未來，鑑於EPA 的新要求，我們看到美國境內煤製天然氣和煤製生物質計畫的機會越來越多，這對我們來說非常令人興奮，因為我們展望2024 年剩餘時間和2025 年，其中許多項目項目要么處於提案階段，要么處於最終設計階段，B&W 的收入範圍為 5000 萬至 4 億美元。

With our increasing visibility of customer demand and our near-term booking success, we are reiterating our full year 2024 adjusted EBITDA target range of $105 million to $115 million which excludes BrightLoop and ClimateBright.

隨著我們對客戶需求的了解不斷增加以及近期預訂的成功，我們重申 2024 年全年調整後 EBITDA 目標範圍為 1.05 億美元至 1.15 億美元，其中不包括 BrightLoop 和 ClimateBright。

Importantly, we continue to invest in our BrightLoop opportunities and anticipate spending in the range of $10 million to $15 million in 2024 on our BrightLoop projects and technology advancement, including CapEx. Our efforts to progress BrightLoop are moving forward as we further the commercial development of our existing projects and continue working to improve the overall operational effectiveness of these technologies to produce low-cost, low-carbon intensity hydrogen.

重要的是，我們將繼續投資 BrightLoop 機會，並預計 2024 年將在 BrightLoop 專案和技術進步（包括資本支出）上支出 1,000 萬至 1,500 萬美元。隨著我們進一步推進現有專案的商業開發，並繼續努力提高這些技術的整體營運效率，以生產低成本、低碳強度的氫氣，我們推動 BrightLoop 發展的努力正在繼續向前推進。

We are continuing to progress with engineering work for our previously announced BrightLoop projects in Gillette, Wyoming; Baton Rouge, Louisiana; and Massillon, Ohio.

我們正在繼續推進先前宣布的位於懷俄明州吉列的 BrightLoop 專案的工程工作；路易斯安那州巴吞魯日；和俄亥俄州馬西隆。

In fact, today, we are excited to announce a few key developments regarding our Massillon, Ohio project. As we have previously stated, it’s important to prove the commercial demonstration of BrightLoop both for hydrogen production as well as syngas production, which can be used as sustainable aviation fuel or SAF, or other synthetic fuels.

事實上，今天，我們很高興地宣布有關俄亥俄州馬西隆計畫的一些關鍵進展。正如我們之前所說，證明 BrightLoop 在氫氣生產和合成氣生產方面的商業示範非常重要，合成氣可用作永續航空燃料或 SAF 或其他合成燃料。

We have signed a 10-year -- offtake agreement with CGI International for up to five tons of hydrogen per day while sequestering the CO2. We have reached indicative financing terms for the construction and leaseback of the site for up to 10-years as well. We do anticipate signing the SPV financing letters of intent and begin construction immediately with the goal of reaching hydrogen production by the end of 2025 or early 2026.

我們與 CGI International 簽署了一項為期 10 年的承購協議，每天最多生產 5 噸氫氣，同時封存二氧化碳。我們也就該場地的建設和回租達成了長達 10 年的指示性融資條款。我們確實預計簽署 SPV 融資意向書並立即開始建設，目標是在 2025 年底或 2026 年初實現氫氣生產。

This is a significant development for our BrightLoop technologies as we now will have a commercial demonstration facility near our headquarters in Ohio. This will raise our technology readiness level into bankable projects as we continue our efforts towards the Wyoming, Louisiana and potentially West Virginia projects as well as other BrightLoop opportunities where we are in discussions or have engaged in FEED studies around the world.

這是我們 BrightLoop 技術的重大發展，因為我們現在將在俄亥俄州總部附近擁有一個商業演示設施。隨著我們繼續努力實現懷俄明州、路易斯安那州和潛在的西維吉尼亞州計畫以及我們正在討論或參與世界各地 FEED 研究的其他 BrightLoop 機會，這將提高我們進入可融資計畫的技術準備水平。

We remain excited about the prospects and outlook for the BrightLoop platform with visibility to reach one billion in bookings by 2028, driven by a combination of small, medium and large BrightLoop projects that are in our current identified pipeline. As I mentioned earlier, this pipeline includes approximately $1.5 billion of BrightLoop and ClimateBright opportunities alone.

我們對 BrightLoop 平台的前景和前景仍然感到興奮，在我們目前確定的管道中的小型、中型和大型 BrightLoop 項目組合的推動下，到 2028 年預訂量將達到 10 億。正如我之前提到的，該管道僅包含約 15 億美元的 BrightLoop 和 ClimateBright 機會。

We continue to believe this level of activity has the potential to lead to $1 billion in revenues by 2030, which would still only represent roughly 1% of the market share for total global hydrogen spend by 2030.

我們仍然相信，到 2030 年，這一水準的活動有可能帶來 10 億美元的收入，但到 2030 年，這筆收入仍僅佔全球氫支出總額的約 1%。

Within BrightLoop, it’s been extremely exciting to watch our team advance the engineering process and the business towards deploying these technologies at scale and further expanding our suite of carbon capture solutions. We also continue to see opportunities for new projects related to waste energy in the United States, which should enable us to leverage our climate decarbonization platform and presents additional higher margin prospects.

在 BrightLoop 中，看到我們的團隊推進工程流程和業務以大規模部署這些技術並進一步擴展我們的碳捕獲解決方案套件，真是令人興奮不已。我們也繼續看到美國與廢棄能源相關的新項目的機會，這將使我們能夠利用我們的氣候脫碳平台，並帶來更高的利潤前景。

I will now turn the call over to Lou to discuss the financial details of the second quarter for 2024. Lou?

我現在將電話轉給大樓，討論 2024 年第二季的財務細節。盧？

Thanks, Kenny. I’m really pleased to review our second quarter results. Further details on which can be found in the 10-Q that’s on file with the SEC. Our second quarter consolidated revenues were $233.6 million which is a decrease compared to the second quarter. This decrease is primarily attributable, as Kenny mentioned, through our strategic approach of reducing reliance on lower-margin projects and completion of a very large construction project in the second quarter of 2023.

謝謝，肯尼。我很高興回顧我們第二季的業績。有關詳細信息，請參閱 SEC 備案的 10-Q。我們第二季的綜合收入為 2.336 億美元，較第二季有所下降。正如肯尼所提到的，這一下降主要歸因於我們減少對低利潤項目的依賴以及在 2023 年第二季度完成一個超大型建設項目的戰略方法。

Our operating income in the second quarter of 2024 was $42.2 million compared to an operating income of $12.4 million in the second quarter of 2023. Operating income well exceeded expectations and is primarily attributable to a gain on the sale of our denmark-based subsidiary and a decrease in selling, general and administrative expenses.

我們 2024 年第二季的營業收入為 4,220 萬美元，而 2023 年第二季的營業收入為 1,240 萬美元。營業收入遠遠超出預期，主要歸因於出售我們位於丹麥的子公司的收益以及銷售、一般和管理費用的減少。

Our adjusted EBITDA, excluding BrightLoop and ClimateBright expenses, was $24.6 million, which was ahead of expectations for the quarter. Implied bookings in the second quarter of 2024 were $193 million and ending implied book backlog was $757.8 million. Our earnings per share in the second quarter were a positive $0.24 as compared to a loss per share of $0.10 in the second quarter of 2023.

不包括 BrightLoop 和 ClimateBright 費用的調整後 EBITDA 為 2,460 萬美元，超出了本季的預期。2024 年第二季的隱含預訂量為 1.93 億美元，期末隱含預訂積壓量為 7.578 億美元。我們第二季的每股盈餘為正 0.24 美元，而 2023 年第二季每股虧損為 0.10 美元。

I will now turn to our segment quarterly reporting results. Within our Babcock and Wilcox revenue – segment revenues were $61 million for the second quarter of 2024. This is a decrease compared to the second quarter of 2023 and the revenue decrease was primarily due to our strategic shift to be more selective and reduce the number of lower margin new build projects that we will pursue.

我現在將談談我們部門的季度報告結果。在我們的 Babcock 和 Wilcox 收入中，2024 年第二季的營收為 6,100 萬美元。與 2023 年第二季度相比有所下降，收入下降主要是由於我們的策略轉變，變得更有選擇性，並減少了我們將追求的利潤率較低的新建項目的數量。

Adjusted EBITDA in the second quarter of 2024 was $7.7 million, an increase of 63% compared to the $4.7 million in the second quarter of 2023. This is primarily due to the reduction of our reliance on low-margin new build projects, and a decrease in selling and general administrative expenses and cost-saving initiatives related to the restructuring of our renewable business.

2024 年第二季調整後 EBITDA 為 770 萬美元，較 2023 年第二季的 470 萬美元成長 63%。這主要是由於我們減少了對低利潤新建項目的依賴，以及銷售和一般管理費用的減少以及與再生能源業務重組相關的成本節約措施。

Within Babcock & Wilcox Environmental segment, revenues were $56.2 million for the second quarter. This is an increase of 15% compared to the $48.7 million in the second quarter of 2023. This increase is primarily driven by higher overall volumes of cooling technology projects partially offset by lower volumes of flu gas treatment projects and adjusted EBITDA was $6.7 million for the quarter compared to $3.4 million in the same quarter of last year. So, our adjusted EBITDA in that segment nearly doubled, and this was primarily driven by improved product mix and favorable flu gas treatment projects.

Babcock & Wilcox Env​​ironmental 部門第二季的收入為 5,620 萬美元。與 2023 年第二季的 4,870 萬美元相比，成長了 15%。這一增長主要是由於冷卻技術項目總量的增加部分被流感氣體處理項目數量的減少所抵消，本季度調整後的 EBITDA 為 670 萬美元，而去年同期為 340 萬美元。因此，我們在該領域的調整後 EBITDA 幾乎翻了一番，這主要是由於產品組合的改善和有利的流感氣體處理項目的推動。

Turning to the Babcock and Wilcox Thermal segment, revenues were $120 million compared to the – in the second quarter of 2024, which is in line with company expectations despite the decrease compared to the 2023 quarter. The revenue decrease is primarily attributable to the completion of a large construction project in 2023 that was not fully replaced in the second quarter of 2024.

轉向 Babcock 和 Wilcox Thermal 部門，與 2024 年第二季度相比，收入為 1.2 億美元，儘管與 2023 年季度相比有所下降，但符合公司預期。收入下降的主要原因是2023年完成了一個大型建設項目，該項目在2024年第二季尚未完全更換。

Adjusted EBITDA in the second quarter of 2024 was $13 million, which is in line with our expectations and a slight decrease compared to the second quarter of 2023, primarily due to the completion of that previously mentioned large projects.

2024年第二季調整後EBITDA為1300萬美元，符合我們的預期，但與2023年第二季相比略有下降，主要是由於先前提到的大型專案的完成。

I’ll now turn to our balance sheet, cash flow and liquidity. Total debt at June 30, 2024, was $476.8 million. And the company had cash, cash equivalents and restricted cash of $202.1 million. As Kenny previously mentioned, we've significantly closed out the legacy solar projects and anticipate cash use being neutral to positive going forward.

現在我將談談我們的資產負債表、現金流和流動性。截至 2024 年 6 月 30 日，債務總額為 4.768 億美元。該公司擁有現金、現金等價物和限制性現金 2.021 億美元。正如肯尼之前提到的，我們已經大幅關閉了遺留的太陽能項目，並預計未來的現金使用將是中性到積極的。

As previously noted, we completed the sale of the denmark-based subsidiary during the quarter, which improved our balance sheet and demonstrated our ability to execute against our stated strategy to sell certain non-strategic businesses. Additionally, as previously announced, we are initiating processes to sell certain other non-strategic business and assets. The proceeds of these sales will be used primarily to pay down existing debt and for working capital.

如前所述，我們在本季完成了丹麥子公司的出售，這改善了我們的資產負債表，並證明了我們執行出售某些非策略業務的既定策略的能力。此外，正如先前宣布的那樣，我們正在啟動出售某些其他非戰略業務和資產的流程。這些銷售所得款項將主要用於償還現有債務和營運資金。

As a result of these actions, we are confident that we have overcome the previous liquidity concerns and continue to invest over $10 million a year annually in the BrightLoop and ClimateBright projects to accelerate our future growth.

透過這些行動，我們相信我們已經克服了先前的流動性問題，並繼續每年向 BrightLoop 和 ClimateBright 項目投資超過 1000 萬美元，以加速我們未來的成長。

I will now turn it back to Kenny.

我現在將其轉回給肯尼。

Thanks, Louis. Well, in closing, we remain intently focused on executing our strategic plan and driving further improvements in our balance sheet. More specifically, we anticipate additional sales of non-strategic businesses to drive further improvements in our cash liquidity position and leverage ratio.

謝謝，路易斯。好吧，最後，我們仍然專注於執行我們的策略計劃並推動我們的資產負債表的進一步改善。更具體地說，我們預計非策略性業務的額外銷售將進一步改善我們的現金流動性狀況和槓桿率。

As we look ahead to the second half of 2024, we expect operating momentum driven by our thermal and environmental segments to continue with increased services and project schedules from our customers. Our global pipeline of over $9 billion and identified project opportunities remains healthy across all our business segments, and we anticipate prospects for new bookings and stronger financial performance throughout the second half of 2024.

展望 2024 年下半年，我們預計，隨著客戶服務和專案進度的增加，我們的熱力和環境部門將繼續推動營運動能。我們超過 90 億美元的全球管道和已確定的專案機會在我們所有業務部門都保持健康，我們預計 2024 年下半年將出現新的預訂和更強勁的財務業績。

We continue to believe our deep industry expertise with clean energy and carbon capture technologies, coupled with our long history of traditional energy sources positions us well to deliver environmentally conscious technology-driven solutions to our global customers.

我們仍然相信，我們在清潔能源和碳捕獲技術方面深厚的行業專業知識，加上我們在傳統能源領域的悠久歷史，使我們能夠為全球客戶提供環保的技術驅動解決方案。

And lastly, as always, I would like to recognize the efforts of our dedicated and talented employees around the world. We have a great team at B&W that's focused on working hard and safely to deliver consistent profitable growth for our shareholders and help meet the world's need for clean, reliable energy now and in the future.

最後，一如既往，我想對我們世界各地敬業且才華橫溢的員工所付出的努力表示認可。B&W 擁有一支優秀的團隊，致力於努力、安全地工作，為我們的股東帶來持續的利潤成長，並幫助滿足世界現在和未來對清潔、可靠能源的需求。

I would also like to thank our global customer base and suppliers for their continued support of Babcock & Wilcox. And looking forward, we are excited about leveraging our leading power and environmental solutions to capitalize on the strong growth prospects ahead for the remainder of 2024 and beyond.

我還要感謝我們的全球客戶群和供應商對 Babcock & Wilcox 的持續支持。展望未來，我們很高興能夠利用我們領先的電力和環境解決方案來充分利用 2024 年剩餘時間及以後的強勁成長前景。

And we remain focused on being a leader and innovator and advocate for clean energy future.

我們仍然致力於成為清潔能源未來的領導者、創新者和倡導者。

I will now turn the call back over to Makaia, who will assist us with your questions. Makaia?

我現在將把電話轉回 Makaia，他將幫助我們解答您的問題。馬卡亞？

(Operator Instructions) Rob Brown, Lake Street Capital Markets.

（操作員說明）Rob Brown，Lake Street Capital Markets。

Hi. First question is on the BrightLoop projects in Ohio. You’ve got an offtake agreement there and then some financing. Can you give us a sense on how that ramps and how the economic model works for you?

你好。第一個問題是關於俄亥俄州的 BrightLoop 計畫。您在那裡獲得了承購協議，然後獲得了一些融資。您能否讓我們了解一下這種成長方式以及經濟模式如何為您服務？

Yes. So basically, there will be a construction period to build projects over the next 12 to 18 months on the project so that the primary part of the financing will be used to offset a significant amount of cash being borne by the company for the construction period. And then there will be a lease back of the site during the offtake period when revenues are being produced off the offtake agreement.

是的。因此，基本上，該項目將有一個建設期，在未來12至18個月內建設項目，因此融資的主要部分將用於抵消公司在建設期承擔的大量現金。然後，在承購期間，當根據承購協議產生收入時，將對該場地進行回租。

So I mean over the 10-year period that that cash and revenue offset each other on that standpoint. So it's it is a great way for us to build a first commercial project without using a significant amount of our own capital to build a commercial demonstration plant. So pretty excited both on the financing opportunity and also the offtake agreement too buy the hydrogen during that period.

所以我的意思是，從這個角度來看，在十年期間，現金和收入是相互抵銷的。因此，這對我們來說是建立第一個商業項目的好方法，而無需使用大量自有資金來建造商業示範工廠。對於在此期間購買氫氣的融資機會和承購協議都感到非常興奮。

Okay, great. And then some of the larger projects that you have under development, I know you talked about the engineering work. Could you give us a sense of how those progress? And I think you talked about expectations by this year, getting some of those to move forward as well, but just an update on how the Wyoming and the Baton Rouge projects are coming along.

好的，太好了。然後是您正在開發的一些較大的項目，我知道您談到了工程工作。能為我們介紹一下這些進展嗎？我認為您談到了今年的期望，並推動其中一些項目向前推進，但只是介紹了懷俄明州和巴吞魯日項目進展的最新情況。

Yes. We’re in full engineering mode and working with on the Wyoming project right now have been doing a lot of the on-site engineering works, civil engineering, those type of activities in conjunction with that. As previously stated, we’re working closely with Black Hills Energy on that particular project, who would be the user of the hydrogen as they’re working through their rate-based considerations inside Wyoming in parallel.

是的。我們處於完整的工程模式，目前正在與懷俄明州計畫合作，進行了大量的現場工程、土木工程以及與之相關的此類活動。如前所述，我們正在與 Black Hills Energy 就該特定項目密切合作，他們將成為氫氣的用戶，因為他們正在懷俄明州同時研究基於費率的考慮因素。

So, we continue supporting them on those particular efforts and anticipate more developments and other activities around that, hopefully, later this year that we can put out.

因此，我們將繼續支持他們的這些特殊努力，並預計圍繞這些努力會有更多進展和其他活動，希望在今年晚些時候我們能夠推出。

On the Baton Rouge project, primarily we are although I can’t name them public at this point, but since we are under NDA, but we are in full discussions with the developer and investor in the initial 15 tons per day project that we contemplate there follow-on up to 200 tons per day in that particular site. And so, we’re in full discussions with them on moving that project forward.

在巴吞魯日項目上，我們主要是——雖然我現在還不能公開他們的名字，但由於我們處於保密協議之下，但我們正在與開發商和投資者就我們最初的每天15 噸的項目進行充分討論。因此，我們正在與他們就推進該專案進行充分討論。

So, too early to announce any certainty on the developments of that investment coming in. But other than that, we're in full discussions and considerations right now for both the 15 and the 200 ton per day projects in Baton Rouge. And that again, that would be using biomass in that particular case.

因此，現在宣布該投資的進展還為時過早。但除此之外，我們現在正在對巴吞魯日的 15 噸和 200 噸/日項目進行充分的討論和考慮。再說一次，在這種特殊情況下，將使用生物質。

Great. Thank you. Congratulations on the progress. I'll turn it away.

偉大的。謝謝。祝賀取得的進展。我會把它轉開。

Yes. Thank you.

是的。謝謝。

Alex Rygiel, B. Riley.

亞歷克斯·里吉爾，B.萊利。

Thanks. Good evening, guys. A lot of great things here.

謝謝。晚上好，夥計們。這裡有很多很棒的東西。

Hi, Alex.

嗨，亞歷克斯。

Hi, Alex.

嗨，亞歷克斯。

About a couple of questions. First at attendee as it relates to your guidance, great to hear that you're reiterating your guidance, your EBITDA guidance and I guess my question is just sort of kind of what's at risk there or maybe what portion of that guidance, if any, at all is not yet in backlog and or what are some of the variables that can help you to be near the low end or the high end of that range?

關於幾個問題。首先，與會者，因為這與您的指導有關，很高興聽到您重申您的指導，您的 EBITDA 指導，我想我的問題只是存在風險，或者該指導的哪一部分（如果有），根本還沒有積壓，或者有哪些變數可以幫助您接近該範圍的低端或高端？

Yes, it's mainly timing. And on a primarily, I would say a couple of the larger projects, gas conversion projects that that we announced previously. And it's just it's really the timing of the exact starting point of some of those activities like anything on our on our projects, especially larger projects in our revenue and margin is all based on cost recognition.

是的，主要是時機。首先，我想說的是我們先前宣布的幾個較大的項目，即天然氣轉換項目。這只是其中一些活動的確切起點的時間安排，就像我們專案上的任何活動一樣，特別是我們的收入和利潤中的大型專案都是基於成本確認的。

So it's just the timeliness of how we get orders through and on some of those projects and just the timing of that, that could hit the higher end of the range or the lower end of the range on that. So that that's always a challenge, but that's those are the the main considerations there.

因此，這只是我們如何透過其中一些項目獲得訂單的及時性以及時間安排，這可能會達到範圍的上限或範圍的下限。所以這始終是一個挑戰，但這就是主要考慮因素。

Excellent. And then great to see of your net debt down here. Any update on the timing of additional non-core asset sales.

出色的。然後很高興看到你的淨債務在這裡。有關額外非核心資產出售時間的任何更新。

We're other than we're just in discussions and those continue on and anticipate hopefully one or two yet this year and I would leave it at that for now. Obviously, since we're in discussions and negotiations on those, but we do anticipate one or two yet this year on that. And that's probably that's probably as much as I want to get into it on the call.

我們只是在討論，這些討論仍在繼續，預計今年還會有一兩次，我現在就到此為止。顯然，因為我們正在就這些問題進行討論和談判，但我們確實預計今年還會有一兩個。這可能就是我在電話會議上想談的內容。

Let's look at then coming back to the Ohio bright new project. Can you help me to understand that that lease back again, how much capital is VW going to have to put up on the front end there for construction and exactly what's the timeframe? Or when does that sort of payback and so on?

讓我們回到俄亥俄州明亮的新項目。您能否幫我了解一下，再次租回，大眾需要在前端建設上投入多少資金，以及具體的時間表是什麼？或是什麼時候會有這樣的回報等等？

We can go into it more but go ahead, Lou.

我們可以進一步討論，但請繼續，盧。

No, go ahead, Kenny. And then I'll follow-up.

不，繼續吧，肯尼。然後我會跟進。

Okay. So, what we're anticipating, I mean the total project to build the project will be in the roughly $50 million, $60 million range or I should say that let’s just call it $60 million to $65 million range to build out that particular project is what we're anticipating. Initially, we'll probably have, I don't know, roughly $5 million to $10 million as we mentioned, we’re spending about $10 million a year investing in BrightLoop. Some of that investment goes towards that project. So, it’s not duplicative or incremental on top of that. I just want to add that.

好的。因此，我們的預期是，我的意思是，建設該項目的總項目將在大約5000 萬至6000 萬美元範圍內，或者我應該說，讓我們稱之為6000 萬至6500 萬美元範圍內的建設項目特定的項目是我們所期待的。最初，我不知道，正如我們所提到的，我們可能會投入大約 500 萬到 1000 萬美元，我們每年在 BrightLoop 上投資約 1000 萬美元。部分投資用於該項目。因此，它不是重複的或增量的。我只想補充一點。

So about $5 million to $10 million would come from B&W in that and the rest would be financed out to do the construction portion of that particular project. And then the revenues for the hydrogen would start with the first data that we're producing hydrogen, which can we do anticipate the end of 2025, really 2026 as we start to place some of the long lead time orders for equipment and other aspects associated with that particular project overall.

因此，B&W 將為此提供約 500 萬至 1000 萬美元，其餘資金將用於該特定項目的建設部分。然後氫氣的收入將從我們生產氫氣的第一個數據開始，我們可以預計到 2025 年底，實際上是 2026 年，因為我們開始下一些設備和其他相關方面的長交貨期訂單整個特定項目。

So that’s Lou, I don’t know if you want to add to that, but that’s a rough order of magnitude and how we think about it in terms of the B&W’s portion of it.

這就是 Lou，我不知道你是否想補充這一點，但這是一個粗略的數量級，以及我們如何根據黑白部分來考慮它。

So, I think we're excited about it because we need to have that commercial demonstration out, and this is actually a much more affordable way for us to do that, to get that first commercial project off the ground so that we can increase our TRL level. And what we’re excited about.

所以，我認為我們對此感到興奮，因為我們需要進行商業演示，這實際上對我們來說是一種更經濟實惠的方式，讓第一個商業項目啟動，這樣我們就可以增加我們的TRL 級別。以及我們感到興奮的事。

Normally, we would have to invest in that project ourselves and build it ourselves almost like an R&D facility. In this particular case, we’re doing that in a commercial environment where we’re receiving revenues to cover the costs associated with that based on the revenues of the hydrogen that we’ll be selling to the offtake or through the offtake agreement itself.

通常情況下，我們必須自己投資該專案並自己建造它，就像研發設施一樣。在這種特殊情況下，我們是在商業環境中這樣做的，我們根據我們將向承銷商或透過承銷商出售的氫氣的收入來獲得收入來支付與此相關的成本協議本身。

So, we think it’s a great way for us to get this off the ground a great way to do it with a low amount of cash requirements by B&W, and we had to offset the financing costs of that over the long-term period versus the tendered and offtake agreement that’s corruptly five times a day. So, that part seems like a win-win for us. But Lou, do you want to add some color?

因此，我們認為這是我們啟動這項專案的好方法，B&W 的現金需求量較低，而且我們必須抵消長期的融資成本與每天五次腐敗的招標和承購協議相比。所以，這對我們來說似乎是雙贏的。但是Lou，你想添加一些顏色嗎？

Yes, just to amplify a little bit, Alex, it's really a two-phase with one entity financing. One will be the construction phase, where we'll have your basic construction loan for the construction period and then there will be what we call an offtake period to go with the offtake once the construction is completed, where we’ll have what would be to a long-term lease for the remainder of the to amortize out those construction costs that we incur.

是的，亞歷克斯，稍微放大一下，這其實是一個實體融資的兩個階段。一是施工階段，我們將在施工期間獲得您的基本建設貸款，然後是我們所謂的承購期，一旦施工完成，我們將獲得承購期剩餘部分將成為長期租賃，以攤銷我們產生的建築成本。

So as Kenny said, for us, it's a really good cash flow project because we're able to keep cash on our balance sheet, use the construction financing and then use the lease financing when the offtake agreement starts producing revenue.

正如肯尼所說，對我們來說，這是一個非常好的現金流項目，因為我們能夠將現金保留在資產負債表上，使用建造融資，然後在承購協議開始產生收入時使用租賃融資。

That's great. Thank you.

那太棒了。謝謝。

Thank you. There are currently no questions registered. So at this time, I would like to pass the conference over to the management team for any further remarks.

謝謝。目前沒有登記任何問題。所以此時，我想將會議轉交給管理團隊，以便進一步發表意見。

Thank you, Makaia, and thanks, everyone, for joining us. That concludes our conference call. A replay will be available for a limited time on our website later today.

謝謝你，Makaia，也謝謝大家加入我們。我們的電話會議到此結束。今天晚些時候，我們的網站將在有限時間內提供重播。

Once again, thank you all for attending today's call. This will now conclude today's conference call. We appreciate your participation, and we hope you have a wonderful day and you may now disconnect your lines.

再次感謝大家參加今天的電話會議。今天的電話會議到此結束。我們感謝您的參與，希望您度過愉快的一天，現在您可以斷開線路了。