Gulf Island Fabrication Inc (GIFI) 2024 Q2 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to Gulf Island's conference call, to discuss second quarter 2024 results. (Operator Instructions) This call is being recorded.

女士們、先生們，下午好，歡迎參加海灣島的電話會議，討論 2024 年第二季的業績。（操作員說明）此通話正在錄音。

At this time, I would like to turn the floor over to Ms. Cindi Cook for opening remarks and introductions. Cindi, please go ahead.

現在我想請 Cindi Cook 女士做開場發言和介紹。辛迪，請繼續。

Thank you and good afternoon. I would like to welcome everyone to our second quarter 2024 teleconference. Our results were released this afternoon, and a copy of the press release is available on our website at Gulf Island.com. A replay of today's call will be available on our website after 7 PM this evening. Please keep in mind that the press release and certain comments on this call include forward-looking statements and actual results may differ materially, we would like to refer everyone to the cautionary language included in our press release and to the risk factors described in our most recent Form 10 K and subsequent SEC filings.

謝謝你，下午好。我謹歡迎大家參加我們的 2024 年第二季電話會議。我們的結果於今天下午發布，新聞稿的副本可在我們的網站 Gulf Island.com 上取得。今天晚上 7 點後，我們的網站將提供今天電話會議的重播。請記住，新聞稿和本次電話會議的某些評論包括前瞻性陳述，實際結果可能存在重大差異，我們希望大家注意我們新聞稿中包含的警告性語言以及我們最重要的報告中描述的風險因素。

Please also note that management may reference EBITDA adjusted EBITDA adjusted revenue, new project awards and backlog on this call, which are financial measures not recognized under U.S. GAAP as required by SEC rules and regulation to the extent used both non-GAAP financial measures are reconciled to their most comparable GAAP financial measures in our press release. Today, we have Mr. Richard Heo, President and CEO, and Mr. Wes Stockton, Executive Vice President and CFO. Mr. Heo?

另請注意，管理層可能會在本次電話會議中參考EBITDA 調整後EBITDA 調整後收入、新項目獎勵和積壓訂單，這些財務指標未根據SEC 規則和法規的要求在美國GAAP 下得到認可，但在使用兩種非GAAP 財務指標進行協調的情況下與我們新聞稿中最具可比性的 GAAP 財務指標相比較。今天，我們有總裁兼執行長 Richard Heo 先生和執行副總裁兼財務長 Wes Stockton 先生。何先生？

Thank you, Cindi, good afternoon, everyone, and welcome to our second quarter results conference call. I'm happy to be here with you this afternoon and hope each of you and your families are continuing to stay healthy and safe.

謝謝辛迪，大家下午好，歡迎參加我們的第二季業績電話會議。我很高興今天下午能和你們在一起，並希望你們每個人和你們的家人繼續保持健康和安全。

During today's call, I'll provide key takeaways from the quarter, a review of segment performance and end market trends and an update on the progress we've made on our strategic initiatives. Wes will then discuss our second quarter results in greater detail and provide some commentary on our outlook for 2024. We'll then open up the call for questions and end with closing remarks.

在今天的電話會議中，我將提供本季度的主要要點、對細分市場業績和終端市場趨勢的回顧以及我們在策略舉措方面取得的進展的最新情況。然後，Wes 將更詳細地討論我們第二季的業績，並對 2024 年的前景提供一些評論。然後我們將開始提問並以結束語結束。

We delivered another period of stable profitable operating results during the second quarter, and we continued to make important progress on our strategic objectives, while our second quarter results were negatively impacted by some short-term project delays in our Services Division, consolidated revenue still increased nearly 5% compared to last year, driven by strong growth in our Fabrication Division.

第二季我們再次實現了穩定的獲利經營業績，我們的策略目標持續取得重要進展，雖然我們的第二季業績受到服務部門一些短期專案延遲的負面影響，但綜合收入仍成長受我們製造部門強勁成長的推動，與去年相比成長了近5%。

Project pushouts in our services segment and incremental investments in support of our growth objectives negatively impacted our second quarter results and are likely to cause us to fall short of our initial full year services EBITDA target. While we are disappointed to fall short of our guidance, we remain up optimistic by the outlook for the services business and golf on an overall, we are executing at a high level while investing in some exciting new growth businesses as our end markets remain strong.

我們服務部門的專案推出以及支持成長目標的增量投資對我們第二季度的業績產生了負面影響，並可能導致我們達不到最初的全年服務 EBITDA 目標。雖然我們對未能達到我們的指導感到失望，但我們對服務業務和高爾夫的整體前景保持樂觀，我們正在高水平執行，同時投資於一些令人興奮的新增長業務，因為我們的終端市場仍然強勁。

These tailwinds, along with our strong financial position give us significant flexibility to continue to pursue our growth objectives.

這些有利因素加上我們強大的財務狀況為我們提供了巨大的靈活性，可以繼續追求我們的成長目標。

Now turning to our segment results. First, looking at our Services Division, the overall spending environment in our key offshore services market remains strong. Our customers are healthy and their operations in the Gulf of Mexico remain extremely profitable. This is driving strong maintenance and capital spending, and we expect this continue into 2025 based on commentary from key customers.

現在轉向我們的部門業績。首先，看看我們的服務部門，我們主要離岸服務市場的整體支出環境仍然強勁。我們的客戶都很健康，他們在墨西哥灣的業務仍然非常有利可圖。這推動了強勁的維護和資本支出，根據主要客戶的評論，我們預計這種情況將持續到 2025 年。

However, the second quarter services results were impacted by project delays and investment spending. Project delays were primarily related to Spark safety project opportunities. These projects were not lost, but the project start dates were delayed due to some customer-specific issues. While we were working hard to make up for the impact of these pushouts, it is difficult to quickly recover from project slippage. Given the nature of our services business, including our ability to ramp up craft headcount.

然而，第二季服務業績受到專案延誤和投資支出的影響。專案延誤主要與 Spark 安全專案機會有關。這些項目並未遺失，但由於一些客戶特定問題，專案開始日期被推遲。雖然我們正在努力彌補這些推出的影響，但很難從專案延誤中快速恢復。考慮到我們服務業務的性質，包括我們增加工藝人員數量的能力。

We also made the decision to make incremental investment spending in support of exciting new growth initiatives and services. During the second quarter, we launched our Cleaning & Environmental Services business line or CES., which expands our services offering, to better support decommissioning activity in the Gulf of Mexico.

我們還決定增加投資支出，以支持令人興奮的新增長計劃和服務。在第二季度，我們推出了清潔與環境服務業務線或 CES，擴大了我們的服務範圍，以更好地支援墨西哥灣的退役活動。

We believe the decommissioning of oil and gas assets in the Gulf of Mexico represents a meaningful potential opportunity for Gulf Island in the coming years. The Government Accountability Office recently disclosed that 2,700 wells and 500 platforms are past due for dismantling and decommissioning in the Gulf of Mexico.

我們相信，墨西哥灣石油和天然氣資產的退役對海灣島來說是未來幾年有意義的潛在機會。政府問責辦公室最近披露，墨西哥灣有 2,700 口井和 500 個平台逾期拆除和退役。

In addition, a recent study by nature, energy estimated there are roughly 14,000 nonproducing wells that will also need to be dismantled and decommissioned in the future bylaw oil and gas companies must seek decommission these wells and the same study estimated a total cost of roughly $30 billion for the well decommissioning.

此外，《自然》能源雜誌最近的一項研究估計，大約有14,000 口非生產井也需要在未來拆除和退役，根據法律，石油和天然氣公司必須尋求退役這些井，同一項研究估計總成本約為30 美元億用於油井退役。

While we have already participated in past decommissioning activities. We are seeing activity in the Gulf of Mexico pick up. And as a result, CES. will add value to our overall decommissioning services as customers are inevitably looking for a single point of accountability. Accordingly, we made the strategic decision to ramp up our spending plans in order to launch our CES. business. We have already witnessed keen interest from our clients and should see project activity in the second half of the year with a more significant ramp up during 2025.

雖然我們已經參與了過去的退役活動。我們看到墨西哥灣的活動增加。結果，CES。將為我們的整體退役服務增加價值，因為客戶不可避免地會尋求單點問責。因此，我們做出了策略決策，增加支出計劃，以便推出 CES。商業。我們已經見證了客戶的濃厚興趣，預計下半年的專案活動將在 2025 年出現更顯著的成長。

The previously mentioned project delays combined with the incremental investment spending, both of which will continue into the second half of the year are expected to cause us to fall short of our prior full year Services Division EBITDA guidance. As a result, we are lowering our initial $14 million full year Services Division EBITDA guidance to a range of $11 to $13 million, despite revising our Services Division guidance. We remain optimistic for our Services Division, especially as we continue to invest in new growth businesses.

前面提到的項目延遲加上投資支出的增量，預計將持續到今年下半年，這將導致我們未能達到服務部門之前的全年 EBITDA 指導。因此，儘管我們修改了服務部門的指導，但我們仍將最初的 1,400 萬美元全年服務部門 EBITDA 指導下調至 1,100 至 1,300 萬美元。我們對服務部門保持樂觀，特別是在我們繼續投資新成長業務的情況下。

Now moving on to fabrication. Our revenue increased 27% from last year, driven by the strong momentum in our small fabrication business. Demand trends in the small scale fabrication markets remain active, including opportunities in the subsea market and pull through fabrication from our services customers. Our contract for the fabrication of structural components for NASA was once again a key contributor to our strong performance.

現在繼續製造。在小型製造業務強勁勢頭的推動下，我們的收入比去年增長了 27%。小規模製造市場的需求趨勢仍然活躍，包括海底市場的機會以及我們服務客戶的製造需求。我們為 NASA 製造結構部件的合約再次成為我們強勁業績的關鍵因素。

This contract highlights the opportunity to expand our end market focus outside our traditional oil and gas markets. We are seeing that these end markets placed a premium on quality and schedule certainty, areas where Gulf Island is more than capable of delivering as a result of our performance, we have been given additional scopes of work that will extend our NASA contract through 2024.

該合約凸顯了我們將終端市場重點擴展到傳統石油和天然氣市場之外的機會。我們看到這些終端市場非常重視品質和進度確定性，而海灣島在這些領域的表現完全有能力提供服務，因此我們獲得了額外的工作範圍，將我們的 NASA 合約延長至 2024 年。

We have caught the attention of NASA and our contractors and believe we are in an attractive position to pursue new end markets and realize additional opportunities. On the large fabrication market, unfortunately, there has not been much of a change. Earlier this year, the Biden administration pause approvals for pending and future LNG projects.

我們引起了美國宇航局和我們承包商的注意，並相信我們在尋求新的終端市場和實現更多機會方面處於有利地位。不幸的是，在大型製造市場上並沒有太大的變化。今年早些時候，拜登政府暫停了對決和未來液化天然氣項目的批准。

However, we did get some positive news recently as earlier this month, a federal judge in Louisiana put the entered gene department's pause on natural gas export permits on hold. While we continue to pursue several attractive large fabrication projects associated with LNG, the regulatory uncertainty uneven interest rate outlook and upcoming elections continue to extend the decision cycles and time lines for many of the large projects we are pursuing.

然而，我們最近確實得到了一些積極消息，本月早些時候，路易斯安那州的一名聯邦法官暫停了基因部門暫停天然氣出口許可的決定。雖然我們繼續追求與液化天然氣相關的幾個有吸引力的大型製造項目，但利率前景不均勻的監管不確定性和即將到來的選舉繼續延長我們正在追求的許多大型項目的決策週期和時間表。

We're also actively chasing large petrochemical opportunities but these projects are facing budgetary challenges with current inflationary conditions and they are continuing to push to the rate as well. However, we remain bullish on the potential for large fabrication awards, but the ability to predict timing remains challenging.

我們也積極追逐大型石化機會，但這些項目在當前的通貨膨脹條件下面臨預算挑戰，它們也持續提高利率。然而，我們仍然看好獲得大型製造獎的潛力，但預測時間的能力仍然具有挑戰性。

We have grown our small-scale fabrication business, and we are now much less dependent on large awards, based on the strong market trends in our small fab markets as well as our opportunities in new adjacent end market, we remain well positioned for growth and small fabrication. While we wait for the right large project opportunities.

我們已經發展了我們的小型製造業務，現在我們對大型獎項的依賴大大減少，基於我們小型晶圓廠市場的強勁市場趨勢以及我們在新的相鄰終端市場的機會，我們仍然處於增長和小製作。當我們等待合適的大型專案機會時。

As it relates to our Shipyard Division, we have discussed we substantially completed our remaining operational shipyard obligations during the fourth quarter of last year, and the warranty periods for our ferry projects are the final remaining items associated with the wind down of the business. The warranty period for our 70 vehicle ferry project ends during the third quarter of 2024.

由於與我們的造船廠部門相關，我們已經討論過我們在去年第四季度基本完成了剩餘的運營造船廠義務，而我們渡輪項目的保固期是與業務結束相關的最後剩餘項目。我們的 70 輛車渡輪專案的保固期將於 2024 年第三季結束。

In regards to the 40 vehicle ferries, the warranty for one of the ferries ended the past quarter and the other vessels warranty period ends in the first quarter of 2025. And the second quarter, we also submitted our final claim to the North Carolina Department of Transportation, and we'll pursue all legal avenues to recover previously incurred costs associated with the 40 vehicle ferry projects resulting from the customer's design deficiencies on the vessel.

40艘車輛渡輪中，其中一艘渡輪的保固期於上個季度結束，其他船隻的保固期於2025年第一季結束。第二季度，我們也向北卡羅來納州交通部提交了最終索賠，我們將尋求所有法律途徑來收回先前因客戶船舶設計缺陷而產生的 40 個車輛渡輪項目相關的費用。

In closing, we have significantly improved the predictability and stability of our financial results in recent years, and our business project timing and mix will always be a factor in our quarterly operating performance. So while short-term factors negatively impacted our second quarter results and full year outlook, we remain confident in the long-term opportunities for Gulf Island.

最後，近年來我們顯著提高了財務業績的可預測性和穩定性，我們的業務項目時機和組合將始終是我們季度經營業績的一個因素。因此，儘管短期因素對我們第二季業績和全年前景產生了負面影響，但我們對海灣島的長期機會仍然充滿信心。

But the bidding environment for large fabrication projects remains active. Our base of services customers are projecting increased, spent capital spending in 2025, and we're in a favorable position to pursue our growth initiatives based on our strong financial position. This provides us with several avenues for potential value creation and as we continue to execute on our strategic plan, we are confident in our ability to deliver shareholder value in the coming years.

但大型製造項目的招標環境仍然活躍。我們的服務客戶群預計 2025 年的資本支出將會增加，而且基於我們強大的財務狀況，我們處於有利的地位來推行我們的成長計畫。這為我們提供了多種創造潛在價值的途徑，隨著我們繼續執行我們的策略計劃，我們對未來幾年為股東創造價值的能力充滿信心。

I will now turn the call over to Wes to discuss our quarterly results in greater detail.

我現在將把電話轉給韋斯，更詳細地討論我們的季度業績。

Thanks, Richard, and good afternoon, everyone. I will discuss our consolidated results and then provide some additional details regarding our segment results. Putting in context the factors mentioned by Richard and their impact on the quarter. I will then conclude with a discussion of our liquidity and full year financial outlook.

謝謝理查德，大家下午好。我將討論我們的綜合業績，然後提供有關我們分部業績的一些其他詳細資訊。結合理查德提到的因素及其對本季的影響。最後，我將討論我們的流動性和全年財務前景。

Now turning to our quarter results. Consolidated revenue for the second quarter of 2024 was $41.3 million, an increase of 5% from $39.3 million in the prior year period. The increase was driven by strong growth in our small-scale fabrication business, partially offset by project delays that negatively impacted our Services Division.

現在轉向我們的季度業績。2024 年第二季合併營收為 4,130 萬美元，較上年同期的 3,930 萬美元成長 5%。這一成長是由我們的小型製造業務的強勁成長推動的，但部分被專案延誤對我們服務部門的負面影響所抵消。

Consolidated EBITDA was $2.5 million for the second quarter 2024, down from consolidated adjusted EBITDA for the prior year period of $4.1 million. Adjusted results for the prior year period exclude losses of $1.9 million for the Shipyard division. Specifically for the Services Division, revenue for the second quarter 2024 was $22.8 million, a decrease of $1.7 million or 7% compared to the second quarter 2023.

2024 年第二季的綜合 EBITDA 為 250 萬美元，低於上年同期的綜合調整後 EBITDA 410 萬美元。上一年度調整後的表現不包括造船廠部門 190 萬美元的損失。具體到服務部門，2024 年第二季的營收為 2,280 萬美元，比 2023 年第二季減少 170 萬美元，即 7%。

The decrease was due to lower new project awards driven by delayed timing of certain project opportunities. EBITDA for the second quarter 2024 was $2.7 million or 11.7% of revenue, down from $3.8 million or 15.4% of revenue for the prior year period. The decline was primarily due to lower revenue, a less favorable project margin mix and investments associated with the start-up of the division CES business line.

減少的原因是某些專案機會延遲導致新專案獎勵減少。2024 年第二季的 EBITDA 為 270 萬美元，佔營收的 11.7%，低於去年同期的 380 萬美元，佔營收的 15.4%。下降的主要原因是收入下降、專案利潤率組合不佳以及與 CES 業務線啟動相關的投資。

For our Fabrication Division revenue for the second quarter 2024 was $18.7 million, an increase of $4 million or 27% compared to the second quarter of 2023 with the increase due to higher small-scale fabrication activity. EBITDA for the second quarter 2024 was $1.8 million, down from $2.1 million for the prior year period, primarily due to a less favorable project margin mix, partially offset by higher revenue and improved utilization of facilities and resources associated with increased small-scale fabrication activity.

對於我們的製造部門，2024 年第二季的營收為 1,870 萬美元，與 2023 年第二季相比增加了 400 萬美元，即 27%，成長歸因於小規模製造活動的增加。2024 年第二季的EBITDA 為180 萬美元，低於上年同期的210 萬美元，主要是由於專案利潤率組合較差，但部分被收入增加以及與小規模製造活動增加相關的設施和資源利用率提高所抵銷。

And for our Corporate Division, EBITDA was a loss of $2 million for the second quarter 2024 compared to a loss of $1.9 million for the prior year period.

對我們的企業部門來說，2024 年第二季的 EBITDA 虧損 200 萬美元，而去年同期虧損 190 萬美元。

With respect to our liquidity, we ended the second quarter with a cash and investments balance of just over $63 million, up nearly $2 million from the end of the first quarter, highlighting our strong free cash flow conversion on our EBITDA for the quarter, given our NOLs, strong cash balance and anticipated low lower capital needs going forward, we continue to expect a high EBITDA to free cash flow conversion rate.

就我們的流動性而言，第二季結束時，我們的現金和投資餘額略高於6,300 萬美元，比第一季末增加了近200 萬美元，突顯了我們本季EBITDA 的強勁自由現金流轉換，因為我們的 NOL、強勁的現金餘額和預計未來較低的資本需求，我們繼續預期較高的 EBITDA 與自由現金流轉換率。

At June 30th our debt obligation associated with the resolution of our MPSV litigation remains at $20 million with annual payments of approximately $1.7 million beginning on December 31, 2024. Our cash balance and the long duration of our debt puts us in a strong liquidity position and provides us ample flexibility to pursue our growth objectives.

截至 6 月 30 日，我們與 MPSV 訴訟解決相關的債務義務仍為 2,000 萬美元，從 2024 年 12 月 31 日開始每年付款約為 170 萬美元。我們的現金餘額和長期債務使我們處於強大的流動性狀況，並為我們實現成長目標提供了充足的靈活性。

And finally, turning to our earnings outlook and capital requirements for 2024. As Richard discussed, we are lowering our guidance for our Services Division to a range of $11 to $13 million, down from our prior target of $14 million. The reduction is due primarily to delays in the timing of project opportunities for our Spark safety business line and incremental investment spending on growth initiatives.

最後，轉向我們 2024 年的獲利前景和資本要求。正如 Richard 所討論的，我們將服務部門的指導值從先前 1,400 萬美元的目標下調至 1,100 至 1,300 萬美元。減少的主要原因是我們的 Spark 安全業務線專案機會的時間延遲以及成長計劃的投資支出增加。

The balance of our guidance remains unchanged. For our Fabrication Division, we continue to expect 2024 adjusted EBITDA of approximately $8 million, which assumes year-over-year growth in our small-scale fabrication business. The adjusted EBITDA forecast continues to exclude the potential benefit of any large project award and excludes the gain of $2.9 million from our property sale in the first quarter.

我們的指導平衡保持不變。對於我們的製造部門，我們繼續預期 2024 年調整後 EBITDA 約為 800 萬美元，假設我們的小規模製造業務將年成長。調整後的 EBITDA 預測繼續排除任何大型專案授予的潛在收益，也不包括第一季房地產銷售帶來的 290 萬美元收益。

And for our Corporate Division, we continue to expect an EBITDA loss for 2024 of approximately $8 million. With respect to our capital requirements, our capital spending plans for 2024 are consistent with our previous expectations, with full year capital expenditures anticipated to be approximately $5 to $5.5 million, of which approximately $1.5 to $2 million is forecasted for the remainder of the year.

對於我們的企業部門，我們仍然預計 2024 年 EBITDA 損失約為 800 萬美元。就我們的資本需求而言，我們2024年的資本支出計畫與我們先前的預期一致，全年資本支出預計約為5至550萬美元，其中預計今年剩餘時間約為1.5至200萬美元。

This concludes our prepared remarks. Operator, you may now open the line for questions.

我們準備好的演講到此結束。接線員，現在可以撥打電話提問。

Thank you. (Operator Instructions)

謝謝。（操作員說明）

Martin Malloy with Johnson Rice. Please go ahead.

馬丁·馬洛伊和約翰遜·賴斯。請繼續。

Good afternoon. I wanted to ask about the plug and abandonment opportunities here. And I know you all have done work in the past on plug and abandonment. Could you maybe talk about the addressable market on how that increases with the CNS business, and I guess any additional information about what exactly you all are doing out there and if you're partnering with other companies that do downhole or commercial diving provide a one-stop shop solution?

午安.我想問這裡的插頭和廢棄機會。我知道你們過去都在插頭和廢棄方面做過工作。您能否談談可尋址市場如何隨著中樞神經系統業務的增長而增加，我想關於你們到底在做什麼以及您是否與其他從事井下或商業潛水的公司合作的任何其他信息都可以提供一個- 停止商店解決方案？

It's a good question, Martin. It's really that the whole kind of practices that plug and abandonment. But ARC portion is pretty simple and it has been in the past, it's predominantly decommissioning activity, where we get that asset safe and start taking the structure down and our scope in the past has been predominantly on the dismantling of the asset. What the cleaning and environmental services allows us to do is give us now that connectivity and more value add to our service offering where we go in and then make sure that the lines are clean and flushed out before we act on the decommissioning or the takedown of the safe takedown of the asset.

這是個好問題，馬丁。這確實是一種堵塞和放棄的做法。但 ARC 部分非常簡單，過去一直如此，它主要是退役活動，我們確保資產安全並開始拆除結構，我們過去的範圍主要是資產的拆除。清潔和環境服務讓我們能夠做的是，現在為我們提供的服務提供連接性和更多價值，然後在我們採取行動退役或拆除之前，確保管道清潔並沖洗乾淨。

As far as working with partners. Yes, absolutely. We are right now in conversations with key critical partners that do the full slate of scope. And we are just a larger component now because of the CES. opportunity as we look at penetrating more opportunities and the new commission.

就與合作夥伴的合作而言。是的，絕對是。我們現在正在與負責全面工作的關鍵合作夥伴進行對話。由於 CES，我們現在只是一個更大的組成部分。機會，因為我們著眼於滲透更多的機會和新的委員會。

Okay and just in terms of the timing of the ramp up some of the P&A activity and I realize that there's growing regulatory pressure to get started with this stuff on sort of, can you maybe talk a little bit about that, how you see the pace of activity progressing?

好的，就增加一些 P&A 活動的時間而言，我意識到開始進行此類活動的監管壓力越來越大，您能否談談您如何看待這一速度活動進展？

Yes, Martin, this is something that we've seen for the past five years that I've been with the hearing about and seeing some light activity. I think the recent Cox bankruptcy resolution really has facilitated more advancement or speed of the decommissioning activities and so we are seeing an uptick here in the past few months. And so, you know, our belief is that in 2025, we should see material increase in that activity for Gulf Island.

是的，馬丁，這是我們在過去五年中所看到的，我一直聽到並看到一些輕微的活動。我認為最近的考克斯破產解決方案確實促進了退役活動的進一步進展或速度，因此我們在過去幾個月中看到了這種情況的上升。因此，您知道，我們相信，到 2025 年，我們應該會看到海灣島的此類活動大幅增加。

Okay and then just one last question for me. Just on the deepwater fabrication market, it appears that the deepwater completion activity is picking up, not just in the Gulf of Mexico, but other basins around the world. You mentioned a little bit about in your prepared remarks, but could you maybe give us a little more detail about the types of equipment that you're fabricating? And is this just for the Gulf of Mexico, is there an opportunity to fabricate equipment for others in the world?

好的，然後問我最後一個問題。就深水製造市場而言，深水完井活動似乎正在升溫，不僅在墨西哥灣，而且在世界其他盆地也是如此。您在準備好的發言中提到了一些內容，但是您能否向我們提供有關您正在製造的設備類型的更多詳細資訊？這只是針對墨西哥灣嗎？

Yes, as we've talked about in our past, Martin, we do a lot of pull through fabrication where our services customers are doing regular maintenance and some construction activities. And there's always a fabricated steel that is associated with them. So our services or our services group gives a lot of fabrication work to our fab business.

是的，正如我們過去談到的，馬丁，我們做了很多拉動式製造，我們的服務客戶正在進行定期維護和一些施工活動。總有一種鋼材與它們有關。因此，我們的服務或我們的服務團隊為我們的晶圓廠業務提供了大量的製造工作。

But what we have seen is an uptick of Project and Engineering activity, in the Gulf of Mexico and then some key opportunities outside of the Gulf of Mexico where these are going to be larger assets, you know, essentially larger capital projects where there will be construction activity, decent amount of steel fabrication, there might be water treatment or water injection skids, process improvement skids, the various types of metal structures that ultimately improve the production efficiency for the operators.

但我們看到的是墨西哥灣的項目和工程活動增加，然後是墨西哥灣以外的一些關鍵機會，這些機會將是更大的資產，你知道，本質上是更大的資本項目，在那裡將會有建築活動、大量的鋼鐵製造、可能有水處理或註水撬、製程改善撬動、各種類型的金屬結構，最終提高操作員的生產效率。

We're seeing a lot of those opportunities being evaluated in the engineering phase the past year, which you know typically translates to real work that subsequently. And so we anticipate 2025 from a fabrication standpoint to be pretty strong on the offshore side of the business as well. And we talked about obviously, the large key projects we're chasing onshore, like petrochemical and LNG. But I do believe that with reduced capacity and the opportunities that we talked about on both onshore and offshore that we should see some positive activity as it relates to fabrication in 2025.

我們看到許多這樣的機會在過去的一年中在工程階段進行了評估，您知道這些機會通常會轉化為隨後的實際工作。因此，從製造業的角度來看，我們預期 2025 年離岸業務也會相當強勁。我們顯然談到了我們正在尋求的陸上大型關鍵項目，例如石化和液化天然氣。但我確實相信，隨著產能的減少以及我們在陸上和海上談到的機遇，我們應該會在 2025 年看到一些與製造相關的積極活動。

Great. Thank you.

偉大的。謝謝。

I'll turn it back.

我會把它轉回來。

Thanks, Martin.

謝謝，馬丁。

Thank you (Operator Instructions).

謝謝（操作員說明）。

We have a follow-up question from the line of Martin Malloy with Johnson Rice. Please go ahead.

我們有一個來自馬丁·馬洛伊和約翰遜·賴斯的後續問題。請繼續。

I'm back again, I wanted to ask about M&A opportunities in Canada, the pipeline there, funnel of opportunities that you're seeing anything to noteworthy in terms of the trend of opportunities to look at.

我又回來了，我想詢問加拿大的併購機會、那裡的管道、機會漏斗，您在機會趨勢方面看到了任何值得注意的事情。

Yes, Martin, there's a market out there and there's activity going on at this point, the challenges, it's just the disconnect between the buyers and the sellers primarily around valuation and where our interest lies mostly in the services side of the business right now. That's what we've talked about. We'd like to grow and the multiples that businesses like that trade at some they command a what we would call a lower multiple because of the services nature and the people driven basis of the business right.

是的，馬丁，那裡有一個市場，目前正在進行活動，挑戰，這只是買家和賣家之間主要圍繞估值的脫節，而我們目前的興趣主要在於業務的服務方面。這就是我們討論過的。我們希望成長，並且由於服務性質和商業權利的以人為本的基礎，企業喜歡的交易倍數達到了我們所說的較低倍數。

And then you have sellers on the other side, looking at what they perceive as a pretty strong market going forward for their businesses and so bridging that is sometimes challenging. So sometimes makes it difficult to get deals done, but there is a pipeline of things out there, just getting things over the Finish Line is challenging right now.

然後另一邊還有賣家，他們認為他們的業務未來市場相當強勁，因此彌合這一點有時具有挑戰性。因此，有時很難完成交易，但事情有很多，現在只是讓事情越過終點線就很具有挑戰性。

Just to add to that, Martin, as a result of that challenging environment, one of the things that we are doing is this cleaning and environmental services and smart safety are really good examples where we're starting that business on our own right. And it's a good use of our capital, and it allows us to be more selective and growing into the value added or kind of moving up the food chain as you guys have heard me say in terms of this our smart services offering, so we are not only have a funnel or a pipeline of acquisition targets that we are actively chasing. But we are also looking at home grown some of that some of the opportunities just because of the disconnect that West is talking about.

馬丁補充說，由於環境充滿挑戰，我們正在做的事情之一就是清潔和環境服務以及智慧安全，這些都是我們自己開展這項業務的很好的例子。這是對我們資本的一個很好的利用，它使我們能夠更有選擇性地發展增值或在食物鏈上向上移動，正如你們聽到我所說的那樣，我們的智能服務產品，所以我們不僅有我們正在積極追逐的收購目標的管道或管道。但我們也在尋找本土發展的一些機會，只是因為韋斯特所說的脫節。

Okay. Great. Thank you.

好的。偉大的。謝謝。

Thanks, Martin.

謝謝，馬丁。

Thanks, Martin.

謝謝，馬丁。

Thank you. Ladies and gentlemen, that concludes our question and answer session. I would now like to hand the conference over for Richard Heo for closing comments.

謝謝。女士們先生們，我們的問答環節到此結束。現在我想將會議交給 Richard Heo 進行總結評論。

In closing, I want to thank our customers and shareholders for their continued support as well as recognize our employees who continue to demonstrate their commitment to Gulf Island's success for those on the call. Thanks again for your interest in Gulf Island, if we're not able to connect during the quarter, and look forward to speaking with you on our next conference call and updating you on our progress. Be safe and take care.

最後，我要感謝我們的客戶和股東的持續支持，並感謝我們的員工，他們繼續向與會者展示他們對海灣島成功的承諾。再次感謝您對海灣島的關注（如果我們在本季度無法聯繫），我們期待在下一次電話會議上與您交談並向您通報我們的最新進展。注意安全並小心。

Thank you, this concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

謝謝大家，今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。