National Energy Services Reunited Corp (NESR) 2024 Q3 法說會逐字稿

Greetings and welcome to NESR's third quarter 2024 financial results conference call. At this time, all participants are on a listen-only mode, a question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Blake Gendron, Vice President of Investor Relations. Thank you. You may begin.

問候並歡迎參加 NESR 2024 年第三季財務業績電話會議。此時，所有參與者都處於聆聽模式，正式演講結束後將進行問答環節。（操作員指示）提醒一下，本次會議正在錄音。現在我很高興介紹您的主持人，投資者關係副總裁布萊克·根德隆 (Blake Gendron)。謝謝。你可以開始了。

Thank you, Donna. Good day and welcome to NESR's third quarter, 2024 earnings call. With me today are Sherif Foda, Chairman and Chief Executive Officer of NESR and Stefan Angeli, Chief Financial Officer. On today's call, we will comment on our third-quarter results and overall performance. After our prepared remarks, we will open up the call to questions.

謝謝你，唐娜。大家好，歡迎參加 NESR 2024 年第三季財報電話會議。今天與我一起的有 NESR 董事長兼執行長 Sherif Foda 和財務長 Stefan Angeli。在今天的電話會議上，我們將對第三季的業績和整體表現發表評論。在我們發表準備好的發言後，我們將開始提問。

Before we begin, I'd like to remind our participants that some of the statements we'll be making today are forward-looking. These matters involve risks and uncertainties that could cause our results to differ materially from those projected in these statements. I therefore refer you to our latest earnings release filed earlier today and other SEC filings. Our comments today may also include non-GAAP financial measures. Additional details on reconciliation to the most directly comparable GAAP financial measures can be found in our press release which is on our website.

在我們開始之前，我想提醒我們的與會者，我們今天發表的一些聲明是前瞻性的。這些事項涉及風險和不確定性，可能導致我們的結果與這些聲明中預測的結果有重大差異。因此，我請您參閱我們今天早些時候提交的最新收益報告和其他向美國證券交易委員會提交的文件。我們今天的評論可能還涉及非公認會計準則財務指標。關於與最直接可比較的 GAAP 財務指標進行調節的更多詳細信息，請參閱我們網站上的新聞稿。

Finally, feel free to contact us after the call with any additional questions you may have. Our Investor Relations contact information is available on our website. Now I'll hand the call over to Sherif.

最後，如果您有其他問題，請在通話結束後隨時與我們聯繫。我們的投資者關係聯絡資訊可在我們的網站上查閱。現在我將把電話交給警長。

Thanks, Blake. Ladies and gentlemen, good morning and thank you for participating in this conference call. Our third quarter was once again strong following solid first half of 2024 even on top of our robust growth last year. We continue to reach new all-time highs for revenue, EBITDA, EPS, and cash flow. And our balance sheet is increasingly fortified and poised for both accretive growth and prudent shareholder returns.

謝謝，布萊克。女士們、先生們，早安，感謝你們參加這次電話會議。繼去年強勁成長後，我們 2024 年上半年業績表現穩健，第三季再次表現強勁。我們的營收、EBITDA、EPS和現金流繼續創下歷史新高。我們的資產負債表日益增強，預計將實現增值成長並為股東帶來審慎的回報。

Despite the prevailing market uncertainty, I am pleased to report that overall activity in the MENA market remains stable and I'm extremely encouraged by the prospect in net core business outperformance, new technology rollout particularly in direction drilling, solid hydraulic fracturing execution, and frontier market opportunities in water and decarbonization segment.

儘管市場普遍存在不確定性，但我很高興地報告，中東和北非市場的整體活動仍然穩定，我對淨核心業務的優異表現、新技術的推出（特別是定向鑽井、固體水力壓裂實施）以及水和脫碳領域的前沿市場機會的前景感到非常鼓舞。

Combined with our recent re-listing on Nasdaq, our outlook remains extremely bright both in the fourth quarter and in the coming years. Before passing to Stefan to discuss our solid third-quarter results and balance sheet positioning, I want to first offer some thoughts on the macro outlook.

結合我們最近在納斯達克重新上市，我們在第四季度和未來幾年的前景仍然十分光明。在與史蒂芬討論我們穩健的第三季業績和資產負債表定位之前，我想先就宏觀前景提出一些看法。

Our recent technological milestone that we expect will fuel continuousness of performance and our overall positioning in an otherwise cautious sector landscape. I'm extremely proud of the entire net organization as we continue to push the envelope on growth, margin delivery, and cash generation which afford us the opportunity to reinvest in really exciting growth areas of our business.

我們預計，我們最近實現的技術里程碑將推動業績的持續發展以及我們在謹慎的行業格局中的整體定位。我為整個網路組織感到非常自豪，因為我們繼續在成長、利潤交付和現金創造方面突破界限，這為我們提供了在業務真正令人興奮的成長領域進行再投資的機會。

If there are two key message from my prepared remarks, they are, one, the demeanor macro outlook remains healthy, underpinned by growth in key countries alongside Saudi leadership in pragmatically managing energy market balances with strong focus on gas and unconventional development.

如果說我的準備好的發言稿中有兩條關鍵訊息，那就是：第一，宏觀前景依然健康，這得益於主要國家的經濟成長以及沙烏地阿拉伯領導層務實地管理能源市場平衡，並將重點放在天然氣和非常規開發上。

Two, we expect NESR to continue to outperform the broader sector with exciting development in the core, [oil-drilling] technologies, and in frontier area such as produce water and minerals. These areas are driving NESR's solid performance now and are expected to sustain performance over both the nature and also in the years to come.

其次，我們預計 NESR 將繼續跑贏大盤，其在核心（石油鑽探）技術以及生產水和礦產等前沿領域將取得令人興奮的發展。這些領域目前正在推動 NESR 的穩健表現，並且預計在當前和未來幾年內持續保持良好的表現。

Turning first to the macro, the overall commodity outlook has certainly impacted sentiment in the upstream energy sector and especially for energy services. While the global upstream growth outlook today is more cautious than it was even six months ago, we believe that MENA activity will remain stable, particularly with recent activity growth in countries like Kuwait which is expected to lead overall MENA growth for the next couple of years on a percentage basis.

首先從宏觀角度來看，整體大宗商品前景肯定影響了上游能源產業、特別是能源服務的情緒。儘管當今全球上游成長前景比六個月前更加謹慎，但我們相信中東和北非地區的活動將保持穩定，特別是最近科威特等國家的活動成長，預計未來幾年將以百分比形式引領中東和北非地區的整體成長。

Encouragingly, North Africa is again growing steadily and there is plenty of appetite to accelerate further in places like Libya and Algeria. For NESR, we have scalable presence, we can easily add significant resources from equipment and human capital to cater for rapid growth, should the geopolitical landscape improves and opportunities materialize financially.

令人鼓舞的是，北非再次穩定成長，利比亞和阿爾及利亞等地也有極大的成長潛力。對於 NESR 而言，我們擁有可擴展的業務，如果地緣政治格局改善並且出現財務機遇，我們可以輕鬆地添加大量設備和人力資本資源以滿足快速增長的需求。

Overall, stable activity across the MENA region hardly match the softened capital market narrative. We have very good visibility for the coming activities and where it will take place specifically because of the long-term nature of the contract and the strategic importance of the energy sector in the region. Case in point is the Saudi Unconventional Gas project, which will remain a secular growth story, given the ambition to grow domestic gas capacity substantially by 2030.

整體而言，中東和北非地區的穩定活動與資本市場疲軟的狀況幾乎不符。我們對即將開展的活動以及活動地點有很好的了解，特別是因為合約的長期性質以及能源部門在該地區的戰略重要性。沙烏地阿拉伯非常規天然氣計畫就是一個很好的例子，鑑於沙烏地阿拉伯計劃在 2030 年前大幅增加國內天然氣產能，該計畫仍將是一個長期成長的案例。

Turning now to the portfolio, first and foremost, our core business continue to outperform even in a subdued growth environment. Given our relative size compared to our more global PS, our opportunities in the core center around our ability to leverage leading share in our anchor countries to pull through smaller segment in which there is room to grow, sharing other countries.

現在談到投資組合，首先，即使在低迷的成長環境下，我們的核心業務仍繼續表現出色。考慮到我們相對於全球性 PS 的相對規模，我們的核心機會集中在利用我們在主導國家的領先份額來拉動有成長空間的較小細分市場的能力，並與其他國家共享。

Example of this dynamic include the regional spread of drilling and manufacture expertise from our team in Oman, the industrial service from Egypt, and the duplication of our Saudi [flag] success in other potential unconventional resources. With solid growth in the core driving success. It is our Roya direction drilling platform that we expect could carry the up performance forward over the next several years.

這種動態的例子包括我們在阿曼的團隊在鑽井和製造專業知識的區域擴展、來自埃及的工業服務、以及我們在其他潛在非常規資源中複製沙烏地阿拉伯的成功。以核心的穩健成長推動成功。我們預計，我們的 Roya 方向鑽井平台將在未來幾年內繼續提升其效能。

The tier 1 direction drilling market is more than $2 billion per year across rotary steerable, LWD, and MWD. It's a high-quality revenue given the consolidation and sophistication of the technologies.

旋轉導引鑽井、LWD 和 MWD 領域的一級定向鑽井市場規模每年超過 20 億美元。考慮到技術的整合和複雜化，這是一項高品質的收入。

Recently, we announced the first successful run of our rotary steer wheel and MWD in Kuwait in which the technology was able to complete the target interval in a single run. This milestone marks the culmination of nearly six years of joint investment, research, development, and field testing with more than 70,000 ft drilled, but more importantly, signals commercial viability of our technology.

最近，我們宣佈在科威特首次成功運行旋轉導輪和 MWD，該技術能夠在一次運行中完成目標間隔。這一里程碑標誌著我們經過近六年的聯合投資、研究、開發和現場測試，鑽探深度超過 70,000 英尺，取得了成果，但更重要的是，它標誌著我們的技術具有商業可行性。

We already have in hand, the multi-year contracts with provision to deploy our new tier 1 direction drilling platform in Kuwait, Saudi Arabia, and Oman. And the upside within this contract is significant. The next goals for Roya include repeatable success, reliability enhancement, personnel training, and growing our fleet of tools to expand our share as we continue to gain confidence in performance across the different reservoirs and formations.

我們已獲得多年期合同，規定在科威特、沙烏地阿拉伯和阿曼部署我們的新的一級定向鑽井平台。這份合約的上行空間十分巨大。Roya 的下一個目標包括可重複的成功、可靠性的提高、人員培訓以及擴大我們的工具組合以擴大我們的份額，因為我們對不同油藏和地層的性能繼續充滿信心。

Another unique work we are doing at NESR involves a completely new market opportunity that is being defined in real time through our collaboration with our largest customer. Our net environmental, and decarbonization application or NEDA is a basket of technology aimed at establishing multiple circular economy within the MENA energy value chain.

我們在 NESR 正在進行的另一項獨特工作涉及一個全新的市場機會，該機會正在透過我們與最大客戶的合作即時定義。我們的淨環境和脫碳應用或 NEDA 是一攬子技術，旨在在中東和北非能源價值鏈中建立多重循環經濟。

Often as we spoke multiple times before we found our NEDA technology outside of the oil and gas industry and adapt them to fit specific client challenges.

正如我們之前多次談到的那樣，我們發現我們的 NEDA 技術在石油和天然氣行業之外，並對其進行調整以適應特定的客戶挑戰。

One such circle economy is the circular water economy. In the third quarter, we announced our investment in Salttech BV, a supplier of technology called Dyvar or dynamic vapor recovery, which is the low heat desalination solution originally from the Dutch Dairy and chemical industry. Over the past couple of years, we've worked with our largest customer to adapt the Dyvar specifically for high salinity produced water and have successfully executed two pilot projects in the country.

循環水經濟就是這樣一種循環經濟。第三季度，我們宣布投資 Salttech BV，這是一家 Dyvar 或動態蒸汽回收技術供應商，該技術最初來自荷蘭乳品和化學工業的低熱海水淡化解決方案。在過去幾年裡，我們與我們最大的客戶合作，使 Dyvar 專門適應高鹽度採出水，並在該國成功實施了兩個試點計畫。

Furthermore, we evaluated the technical efficacy of recovering valuable minerals from the produced water during the desalination process including rare earth metals such as strontium and lithium that are native to this reservoir water.

此外，我們也評估了從海水淡化過程中產生的水中回收有價值礦物質的技術效果，其中包括該水庫水中天然存在的鍶和鋰等稀土金屬。

The Salttech acquisition is a signal of our confidence in the multi circularity model of water and mineral recovery. And while this area remains a very long development and scale up-cycle, we are extremely excited for the medium-to-longer term prospect in our water-starved MENA region.

收購 Salttech 顯示了我們對水和礦物回收的多循環模型的信心。雖然這個領域仍需一個非常漫長的開發和擴大規模週期，但我們對缺水的中東和北非地區的中長期前景感到非常興奮。

Our open technology platform serves as the foundation for successful innovation, but it's the combination of our local know-how, operational agility, and the trust and open-minded of our customer that is driving technological success in the field.

我們的開放技術平台是成功創新的基礎，但正是我們的本地專業知識、營運敏捷性以及客戶的信任和開放態度的結合才推動了該領域的技術成功。

I'm extremely excited to share further updates on our strategic initiative in due time including our Nasdaq Bell Ringing and Tech Expo tomorrow in New York City. But for now, I will conclude and hand the call over to Stefan to discuss our financials in details.

我非常高興能夠在適當的時候分享我們策略舉措的進一步更新，包括明天在紐約舉行的納斯達克鐘聲敲響和科技博覽會。但現在，我將結束通話並將電話交給 Stefan，詳細討論我們的財務狀況。

Thank you, Sherif. Good morning to our audience in the US and good afternoon, good evening to our audience in the Middle East, North Africa, Asia, and Europe. I'm very pleased to go through our third quarter financial results in detail. Despite the volatile macro environment worldwide and the geopolitical headwinds in the Middle East, NESR has achieved exceptional results during the third quarter of 2024 and for the first nine months of the 2024 period. First, let's cover revenue.

謝謝你，警長。美國的觀眾大家早安。我很高興詳細地介紹我們第三季的財務表現。儘管全球宏觀環境動盪且中東地緣政治逆風不斷，但 NESR 在 2024 年第三季和 2024 年前九個月取得了卓越的業績。首先，我們來談談收入。

Our overall third-quarter revenue is a record $336.2 million which is up 3.5% sequentially and 12% year over year. Revenue for the nine-month year-to-date period is $958 million, up 14.3% year over year with exceptionally strong activity in the Gulf countries. We expect year over year growth in the fourth quarter to largely match the year-over-year growth achieved through the first three quarters of 2024. Our view is that growth will continue across the Middle East, North Africa market for the remainder of 2024 and into 2025 as outlined by Sherif.

我們第三季的整體營收達到創紀錄的 3.362 億美元，季增 3.5%，年增 12%。今年迄今九個月的營收為 9.58 億美元，年增 14.3%，其中海灣國家的業務表現尤為強勁。我們預計第四季度的同比增長將與 2024 年前三個季度的同比增長大致相同。我們的觀點是，正如 Sherif 所述，2024 年剩餘時間和 2025 年中東、北非市場將持續成長。

Now turning to adjusted EBITDA, adjusted EBITDA for the third quarter of 2024 is also a record $80 million, with margins of 23.8% substantially flat on a sequential quarter basis. Year-to-date adjusted EBITDA is $222.9 million, up 21.9% year over year with margins up 146 basis points to 23.3% with NESR exit in Q3 2024 with a margin of 23.8%. Interest expense for Q3 2024 is $9.9 million and Q4 2024 should be around $9 million on lower debt. The Q3 2024 effective tax rate is 20.4%. And for the year-to-date period ending September 30. It is 24.3%. We would expect the Q4 2024 ETR to be approximately in line with Q324.

現在談到調整後的 EBITDA，2024 年第三季的調整後 EBITDA 也達到了創紀錄的 8,000 萬美元，利潤率為 23.8%，與上一季基本持平。年初至今的調整後 EBITDA 為 2.229 億美元，年增 21.9%，利潤率上漲 146 個基點至 23.3%，NESR 將於 2024 年第三季退出，利潤率為 23.8%。2024 年第三季的利息支出為 990 萬美元，由於債務較低，2024 年第四季的利息支出應該在 900 萬美元左右。2024 年第三季有效稅率為 20.4%。截至 9 月 30 日的年初至今期間。是24.3%。我們預計 2024 年第四季的 ETR 將與 2024 年第三季大致一致。

Now turning to EPS, earnings per share excluding charges and credits is $0.31 for the third quarter of 2024 and $0.75 for the 2024 year-to-date period which is up 164% year over year. The charges and credits impacted, adjusted EBITDA and adjusted EPS were made up of principally three items as follows. Restructuring cost which was used to reduce our overhead, cost of remediation of controls, material weaknesses which should abate after the 2024 audit and current expected credit losses mainly for a North African country.

現在談到每股收益，扣除費用和貸記的每股收益在 2024 年第三季為 0.31 美元，2024 年年初至今的每股收益為 0.75 美元，年成長 164%。受影響的費用和貸項、調整後 EBITDA 和調整後 EPS 主要由以下三項組成。重組成本用於減少我們的管理費用、控制補救成本、2024 年審計後應會減輕的重大缺陷以及主要針對北非國家的當前預期信貸損失。

Now turning to our liquidity, which this is a story that NESR is very proud to discuss, our cash flow from operations during the third quarter of 2024 is very strong as we generated $70.8 million. For the year-to-date 2024 period, we generated $183.1 million. The exceptionally strong third quarter is due to significant customer collections which drove our DSO to a new company best. Free cash flow for the third quarter is $43.4 million and for the year-to-date 2024 period, it was $103 million. This was principally used to pay down bank debt.

現在談談我們的流動性，這是 NESR 非常自豪地討論的故事，我們 2024 年第三季的營運現金流非常強勁，因為我們產生了 7080 萬美元。截至 2024 年，我們創造了 1.831 億美元的收入。第三季表現異常強勁，得益於大量客戶回款，推動我們的 DSO 創下公司新高。第三季的自由現金流為 4,340 萬美元，截至 2024 年年初的自由現金流為 1.03 億美元。這主要用於償還銀行債務。

As a result of the strong operating results and good cash flow conversion, we achieved a significant milestone at the end of the third quarter of 2024 where our net debt to trailing 12 months adjusted EBITDA fell to $0.96 which is below our stated target of one. For comparison purposes, we were at $2.8 at the end of 2022 and $1.47 at the end of 2023. Our gross debt on September 30, 2024 is $409 million and our net debt is $291 million.

由於強勁的經營業績和良好的現金流轉換，我們在 2024 年第三季末實現了一個重要的里程碑，我們的淨債務與過去 12 個月調整後的 EBITDA 之比降至 0.96 美元，低於我們設定的 1 美元目標。為了進行比較，我們在 2022 年底的價格為 2.8 美元，在 2023 年底的價格為 1.47 美元。我們截至 2024 年 9 月 30 日的總債務為 4.09 億美元，淨債務為 2.91 億美元。

Working capital levels have remained relatively flat during 24, despite revenue growth of 14% year-to-date on top of the 26% in 2023. Working capital expansion has been minimized due to process improvements and system developments that have enhanced our efficiency resulting in the DSO decrease of 15 days over the last 21 months and a decline in the infantry levels of nearly 10% over the same period.

儘管今年迄今的營收成長率為 14%，高於 2023 年的 26%，但 24 年期間營運資本水準仍保持相對穩定。由於流程改善和系統開發提高了我們的效率，營運資本擴張已被最小化，導致過去 21 個月內 DSO 減少了 15 天，同期步兵水準下降了近 10%。

Capital expenditures for the first nine months of 2024 is $80 million. We still expect full year CapEx to be in the vicinity of $120 million driven by the delivery of our first royal directional drilling tools which is supportive of the drilling strategy just outlined by Sherif.

2024 年前九個月的資本支出為 8,000 萬美元。我們仍預計全年資本支出將在 1.2 億美元左右，這得益於我們首批皇家定向鑽井工具的交付，這將支持 Sherif 剛剛概述的鑽井策略。

All of the above has resulted in our return on capital employed percentage on a trailing 12-month basis at September 30, 2024 reaching 11% and this should only improve going forward. Now on to some housekeeping topics. As you have seen, we were re-listed back on Nasdaq four weeks ago on Tuesday, October 22, and we are looking forward as a company to ringing the bell at the Nasdaq closing ceremony tomorrow. We've spent the better part of the last two years -- two plus years, re-shaping our back office and the company overall, with new and updated processes, procedures, and controls, as well as implementing the latest software upgrades to our ERP system.

以上所有因素使得我們截至 2024 年 9 月 30 日的過去 12 個月的資本使用回報率達到 11%，並且這一水平在未來只會不斷提高。現在來討論一些家事。正如您所看到的，我們於四周前的 10 月 22 日星期二在納斯達克重新上市，我們期待明天在納斯達克閉市儀式上敲響公司鐘聲。在過去的兩年多時間裡，我們花了大量的時間和精力重塑我們的後台辦公室和整個公司，包括更新新的流程、程序和控制，以及對我們的 ERP 系統實施最新的軟體升級。

We are very confident that we'll be able to demonstrate the remediation of our internal control weaknesses during the 2024 audit. This conclusion is very positive news for the company after almost three years of restatement investigations, inquiries, and internal control remediation efforts. But very soon we should, should have concluded on all.

我們非常有信心，我們將能夠在 2024 年的審計期間證明我們內部控制缺陷的糾正。這個結論對於公司經過近三年的重述調查、詢問和內部控制補救工作後來說是一個非常積極的消息。但很快我們就應該對所有事情做出結論。

In summary, operational execution across the Middle East North Africa region continued to be strong during the third quarter of 2024 and our updated processes procedures and controls have transformed the back office to accommodate the continued growth that we're targeting. These drivers have combined to generate record results for the year-to-date 2024 period with strong revenue growth, strong adjusted EBITDA, and healthy cash flow conversion. The latter of which has been used to pay down debt and strengthen the balance sheet overall.

總而言之，2024 年第三季度，中東北非地區的營運執行持續保持強勁，我們更新的流程程序和控制已經改變了後台辦公室，以適應我們所針對的持續成長。這些驅動因素共同創造了 2024 年年初至今的創紀錄業績，包括強勁的收入成長、強勁的調整後 EBITDA 和健康的現金流轉換。後者已被用來償還債務並加強整體資產負債表。

The Middle East and North Africa region remains favorable and NESR continues to be focused on its stated goals of delivering profitable revenue growth, execution efficiency, technology expansion, debt reduction, and working capital efficiency to drive future financial performance. On behalf of management, I would like to thank our entire workforce for their outstanding efforts in delivering these results together with our directors, shareholders, and banking consortium for their continued support. The future of NESR continues to look good. Now I turn the call back to Sherif.

中東和北非地區仍然表現良好，NESR 繼續專注於其既定目標，即實現盈利性收入成長、執行效率、技術擴張、債務削減和營運資本效率，以推動未來財務表現。我謹代表管理階層感謝全體員工為實現這些績效所做的傑出努力，並感謝董事、股東和銀行財團的持續支持。NESR 的前景仍然光明。現在我把電話轉回給 Sherif。

Thanks, Stefan. Let me conclude by highlighting our key takeaways from the quarter. First, I would like to leave you with our belief that we will continue to outperform the broader MENA market. Not only is there further runway for core business expansion, but we've also achieved tangible progress in our Roya platform development and expect this to be both a meaningful growth contributor and also returns a creative over the coming years.

謝謝，史蒂芬。最後，我想強調本季的主要收穫。首先，我想讓大家相信，我們的表現將繼續優於更廣泛的中東和北非市場。我們不僅有了進一步的核心業務擴展空間，而且在 Roya 平台開發方面也取得了切實進展，並期望這將成為未來幾年有意義的成長貢獻者並帶來創意回報。

We will continue to have new partners to introduce their technologies from North America to the region with tailored solution for our customer, similar success as we have had with Cactus, Phoenix, Scout, Beyond, and others.

我們將繼續尋找新的合作夥伴，將他們的技術從北美引入該地區，為我們的客戶提供量身定制的解決方案，就像我們與 Cactus、Phoenix、Scout、Beyond 等公司合作所取得的成功一樣。

Our NESR segment and specifically our water and mineral portfolio are where some of the most interesting work in the company is being done. And our strategic investment in Salttech follows several years of successful piloting and mineral recovery success.

我們的 NESR 部門，特別是我們的水和礦產產品組合是公司正在進行的一些最有趣的工作的地方。我們對 Salttech 的策略投資是在數年的成功試點和礦物回收之後進行的。

Now we need to take the water business to the next level and scale the execution. I would like to close by thanking all of our employees, their families and our valued customers and partners for their continued support. I couldn't be more excited about the future for NESR.

現在我們需要將水業務提升到一個新的水平，並擴大執行規模。最後，我要感謝我們所有員工、他們的家人以及我們尊貴的客戶和合作夥伴的持續支持。我對 NESR 的未來感到無比興奮。

Looking forward to seeing many of you tomorrow at the Nasdaq building where we have several key of our executive and manager flew from the region to New York to present our technologies and engage with all of you. And with that, I pass over the call to the operator for your question. Donna?

期待明天在納斯達克大廈見到大家，我們的幾位關鍵高管和經理從該地區飛到紐約來展示我們的技術並與大家交流。說完這些，我就把電話轉給接線生來回答您的問題。唐娜？

Thank you. The floor is now open for questions. (Operator Instructions) David Anderson, Barclays.

謝謝。現在請大家提問。（操作員指示）巴克萊銀行的大衛安德森。

Oh, great, good morning, Sherif. How are you?

哦，太好了，早安，警長。你好嗎？

Good morning, sir. How are you?

早上好，先生。你好嗎？

I'm doing great. Glad to have you back formally here and I look forward to tomorrow's event. So maybe just first question, maybe if you could just kind of give us a little overview of what's going on with (inaudible). It's been sort of a complicated year, offshore going down, onshore coming up, a lot of focus on gas. You feel like they're kind of slowing a bit. Can you just sort of give us the overview of what's happened this year so far in Saudi and how you see that changing in the next 12 months?

我很好。很高興您正式回來，我期待明天的活動。所以也許只是第一個問題，也許你可以簡單介紹一下發生了什麼（聽不清楚）。這是複雜的一年，海上石油開採正在減少，陸上石油開採正在興起，人們的注意力主要集中在天然氣上。你感覺它們好像有點慢了。您能否簡單介紹一下今年迄今為止沙特的情況以及您認為未來 12 個月將如何變化？

Yeah, thanks Dave. So as outlined clearly by Saudi Aramco. And obviously, the leadership there is after they put down the maximum sustainable capacity from 13 to 12 where they had a plan to add 1 million barrel to go to 13 million barrel total capacity by having 800,000 coming from offshore and 200 coming from land and that plan was postponed to only be 12. So they released the plan increase rate. So that's for people that are familiar with Saudi. Saudi used to be 60 jackups approximately which is very high and the plan was to go all the way to 91 they almost reached it.

是的，謝謝戴夫。正如沙特阿美公司明確指出的那樣。顯然，在將最大可持續產能從 1300 萬桶降至 1200 萬桶之後，領導層計劃增加 100 萬桶，使總產能達到 1300 萬桶，其中 80 萬桶來自海上，200 萬桶來自陸地，但該計劃被推遲到只有 1200 萬桶。因此他們公佈了計劃增長率。對於熟悉沙烏地阿拉伯的人來說這是這樣的。沙烏地阿拉伯曾經擁有大約 60 座自升式鑽井平台，這個數字非常高，而他們的計畫是將自升式鑽井平台數量增加到 91 座，他們幾乎已經實現了這個數字。

And then they, after that decision, they start releasing the offshore jackups that were planned for the 800,000 barrel additional capacity, which basically being postponed. So that when the release of rigs started to happen and this took place earlier this year. Then on top of that, obviously, their success on the projects on the unconventional et cetera where there is a lot of associated gas and the plan to move to 50% gas, 50% renewable for the power generation on the Kingdom by 2030. And they show that they have excess oil and basically with the rigs slowdown of China or whatever. So they decided to release more of the land rigs that is responsible for oil and which took place. So that took place over the last three to six months. And that's some of the extra rigs that were released.

在做出這項決定之後，他們開始釋放原計劃用於增加 80 萬桶產能的海上自升式鑽井平台，但這項計畫基本上被推遲了。因此當鑽機開始釋放時，這在今年早些時候就發生了。除此之外，顯然他們在非常規項目等方面也取得了成功，這些項目擁有大量伴生氣，並且計劃到 2030 年，沙特王國的發電量將達到 50% 為天然氣，50% 為可再生能源。這表明他們的石油過剩，這基本上是由於中國鑽井平台數量放緩或其他原因。因此他們決定釋放更多負責石油開採的陸地鑽井平台。這件事發生在過去三到六個月內。這就是已發布的一些額外鑽孔機。

Now, if you look at the total recount in Saudi, again, it reached an all-time high of 300 and that was again poised for the increased capacity and the oil demand when this did not happen. And they do have the capacity of 12, which again, a lot of people are keep saying that are skeptical about it, but it's not true because Saudi can do that and can deliver 12 million and they don't need the additional rigs to drill for oil when nobody needs it, right? And they are very disciplined on the upper class. They need it actually. So and that's why they released the excess rigs.

現在，如果你再次查看沙烏地阿拉伯的總計票結果，它達到了 300 的歷史新高，這再次為產能和石油需求的增加做好了準備，但這種情況並沒有發生。他們確實擁有 1200 萬噸的產能，很多人對此表示懷疑，但事實並非如此，因為沙烏地阿拉伯可以做到這一點，可以提供 1200 萬噸的產能，而且當沒有人需要時，他們不需要額外的鑽井平台來鑽探石油，對嗎？而且他們對上層階級非常守紀律。他們確實需要它。這就是他們釋放多餘鑽孔機的原因。

Now, if I move to your second part, which is the unconventional gas, which is the Jafurah project is extremely successful and they keep adding rig. So that is the only project that is not being touched, it actually increased the rig count. And as some people might know as well, the first delivery of 2025, first got the [AED200 cup], then the 2027, and then the 2030.

現在，如果我轉到第二部分，即非常規天然氣，那麼 Jafurah 計畫就非常成功，他們不斷增加鑽孔機。這是唯一一個未受影響的項目，它實際上增加了鑽機數量。有些人可能也知道，2025 年的首批交付首先獲得了 [200 迪拉姆杯]，然後是 2027 年，然後是 2030 年。

And on that, you have a lot of associated gas, which is basically you get almost 600,000 barrels and you get a lot of NGL. So this definitely will, again, they will have an additional oil there that is available. The last thing that some people might not know is as very good highlighted by his royal highness is the move away from burning crude for power. And that's -- and there is a plan to ensure that this does not take place, which is almost a million barrel in the summer hot month, which again make sure that if this happens, then the domestically, they don't need all this diesel which basically will make it available for export.

除此之外，您還可以獲得大量的伴生氣，基本上可以算作 60 萬桶左右，還可以獲得大量的 NGL。因此，他們肯定會有額外的石油可用。最後一件事，有些人可能不知道，正如皇室所強調的，是不再燃燒原油來發電。而且——有一項計劃確保這種情況不會發生，在夏季炎熱的月份裡，將有近一百萬桶的柴油被消耗，這再次確保如果發生這種情況，那麼國內就不需要所有這些柴油，基本上可以將其用於出口。

So I hope I answered your question then.

所以我希望我回答了你的問題。

So how are things the rigs have come off? We've kind of seen that sort of reset, sort of activity level. Do you expect things to sort of stay at these levels and Jafurah keep ramping up here or like, how does kind of the next 12 months look from sort of a broader activity level? I don't -- you don't need to get specifics and sort of broadly speaking, how does it look now?

那麼鑽井平台的情況怎麼樣呢？我們已經看到了那種重置、那種活動量。您是否預計事態會保持在這些水平，而 Jafurah 會繼續上升，或者從更廣泛的活動水平來看，未來 12 個月的情況會如何？我不知道——你不需要了解具體情況，但從廣義上講，現在情況怎麼樣？

Well, I think what will happen, my personal opinion is basically, it's going to be stable -- outside Jafurah, it's going to be stable to a bit down because obviously some rigs now are being put on what they call extended maintenance, which is obviously as again, you don't need to drill for some of the oil part, you just put it on maintenance and then the Jafurah was going to keep increasing.

嗯，我認為接下來會發生什麼，我個人的看法基本上是，它會保持穩定——在賈夫拉 (Jafurah) 以外，它會穩定到略有下降，因為很明顯現在有些鑽井平台正在進行所謂的延長維護，這顯然是，對於某些石油部分，你不需要進行鑽探，你只需對其進行維護，然後賈夫拉 (Jafurah) 的產量將繼續增加。

So overall activity in Saudi, I would say, 2025 over 2024 will be stable because that drop in oil will be compensated by the increase in gas and in unconventional. Now, for service industry, it all depends where each play, right? So our expectation for NESR, we are going to grow 2025 over 2024. We will continue that growth profile that we had and we believe we are positioned very strongly. The other parts that besides the activity being poised with, we are more poised on the gas and on the project of Japura, obviously, that we have the drilling portfolio.

因此，我認為沙烏地阿拉伯 2025 年的整體活動將比 2024 年保持穩定，因為石油產量的下降將被天然氣和非常規產量的增加所彌補。現在，對於服務業來說，這完全取決於各自的業務範圍，對嗎？因此，我們對 NESR 的預期是，2025 年的成長速度將超過 2024 年。我們將繼續保持原有的成長勢頭，並且我們相信我們的地位非常強大。除了準備的活動之外，我們在天然氣和 Japura 項目上更加準備充分，顯然，我們擁有鑽探組合。

So we did not have that in the past, we did not have direction and dwelling. We did not have rotary steerable or MWD, LWD. And now we have. So that's an additional for us. It's quite unique because I have the contract. So now the issue becomes how much can we deploy in 2025, we did not deploy any in 2024? So how much of that and this will be an additional for us for 2025 over 2024.

所以我們過去沒有這個，沒有方向，沒有住處。我們沒有旋轉導引裝置、MWD 或 LWD。現在我們已經有了。所以這對我們來說是額外的。這很獨特，因為我有合約。所以現在的問題是，我們在 2025 年能部署多少，我們在 2024 年沒有部署任何？那麼，對我們來說，2025 年將比 2024 年增加多少呢？

And so the overall, the shifting is that the mix works in your favor. You obviously have more Jafurah than you had offshore. But just one final question for me just on Jafurah. Can you just kind of give us a quick overview of what you're doing today on Jafurah? I know you've been on the field for, gosh, a long time like you were the ones who just unlocked it.

因此，總體而言，這種變化是對你有利的。顯然，你們擁有的 Jafurah 比離岸的還要多。但我只想問一下關於 Jafurah 的最後一個問題。您能否簡單介紹一下您今天在 Jafurah 所做的事情？天啊，我知道你已經在這個領域奮鬥了很長時間，就像你剛剛解鎖它一樣。

So going forward, where are you today in the field? And are you expecting to see more tenders? And like what are some of the different services that you're expecting to be tendered say over the next six months?

那麼展望未來，您現在在哪裡？您是否期待看到更多招標？那麼您預計未來六個月內會招標哪些不同的服務呢？

Sure. So Jafurah, obviously, again, is an outstanding project for Saudi Arabia. I mean, it's a -- I would say, it's a world class like you have in the US. They beat every record from drilling the wells in 40 days now making in 14 and 12. I just took the entire my entire board to Saudi. And to see it and they -- we actually went to the field and saw the frac while it was working, right? So it is very impressive by all means.

當然。因此，顯然，Jafurah 對沙烏地阿拉伯來說是一個傑出的項目。我的意思是，它是——我想說，它是像美國一樣的世界級的。他們打破了以往 40 天鑽井的記錄，現在分別在 14 天和 12 天內完成。我剛剛帶著我的整個董事會去了沙烏地阿拉伯。為了看到它，他們——我們實際上去了現場，看到了壓裂的進行情況，對嗎？所以無論如何這都令人印象深刻。

So today, Jafurah has you have three unconventionals that is running, right, which is the big picture is Jafurah and you have what they call you have the new rigs coming there. So they added rigs and in that, in the drilling, they have multiple companies involved, right? So you have obviously people in the mud, people in the direction drilling, et cetera. And that project, our involvement is being on the cementing, front drilling, the well cementing, and we as well involved obviously now in direction drilling, which is the contract we just got awarded. So we have -- and in the direction drilling, you have multiple suppliers. You have around five suppliers now in the direction drilling arena between the big guys and two of the smaller guys like we are one of them.

所以今天，Jafurah 有三個非常規鑽井平台正在運行，對吧，這就是 Jafurah 的大局，還有他們所說的新鑽井平台正在那裡運行。所以他們增加了鑽孔機，並且在鑽探過程中有多家公司參與，對嗎？因此顯然有人在泥漿中，有人在定向鑽井，等等。在這個專案上，我們參與了固井、前端鑽井、井固井工作，顯然，我們也參與了定向鑽井，這是我們剛剛獲得的合約。所以我們有—在定向鑽井方面，您有多個供應商。目前，定向鑽井領域約有五家供應商，包括大型供應商和兩家較小的供應商，我們就是其中之一。

And then on the fracking side, it's two players today. Us and one of the big -- one from the big three, and we are today, basically both of us working. And recently there is even a pilot from a third player. Why they're doing that? Because obviously the Jafurah is going to increase dramatically from size. So for people to know this is basically this year, they are planning 8,000, 9,000 stages that we completed and then this is going to go all the way to 25,000 stages per year. Once you go to 25,000 stages, obviously, there are room for more players than the two of us and that will take place.

在水力壓裂方面，今天有兩位參與者。我們和三大公司之一，今天我們基本上都在工作。最近甚至還有第三位玩家的試播節目。他們為什麼這麼做？因為很明顯 Jafurah 的規模將會大幅增加。所以大家應該知道，基本上今年他們計劃完成 8,000 到 9,000 個階段，然後每年將達到 25,000 個階段。一旦進入 25,000 個階段，顯然，除了我們兩個之外，還有更多玩家可以容納，而這就會實現。

So tendering will definitely happen because everything in Saudi Arabia or the Middle East goes to tender. So that bidding process will happen sometime next year and then people will participate. The approach is obviously, the market should be disciplined, as we always say, but you never know. So there will be more award suppliers again to be able to complete those number of stages in the coming years and the project is pulled for the 2BCF by 2030. So definitely all this is going to take place. And the rigs are performing outstanding. The drilling of the wells are really, really almost at the technical limit.

所以招標肯定會發生，因為沙烏地阿拉伯或中東的所有事情都要招標。因此，競標過程將在明年某個時候進行，屆時人們將會參與。方法顯然是，正如我們常說的，市場應該有紀律，但你永遠不知道。因此，未來幾年將會有更多的獎項供應商能夠完成這些階段，並且該專案將在 2030 年之前實現 2BCF。所以這一切肯定會發生。鑽孔機的表現非常出色。這些井的鑽探確實已經幾乎達到了技術極限。

Great. Thank you very much. Appreciate you taking all my questions.

偉大的。非常感謝。感謝您回答我的所有問題。

Thank you, sir.

謝謝您，先生。

Gregory Lewis, BTIG.

格雷戈里·劉易斯（BTIG）。

Yeah, hi. Thank you and good morning, good evening, everybody. Sherif, I was hoping we could kind of like blend together the growth that we're kind of expected to see in MENA versus kind of the cross selling, the roll out of Roya and kind of try to get a sense for, as you think about revenue growth in 2025 versus 2024 any kind of sense for that mix of just outperforming the market and then kind of layering in those cross selling opportunities in the rollout of Roya?

是的，你好。謝謝大家，早安，晚上好。謝里夫，我希望我們可以將我們預計在中東和北非地區看到的增長與交叉銷售、Roya 的推出結合起來，並嘗試了解一下，當您考慮 2025 年與 2024 年的收入增長時，這種組合是否有意義，即跑贏市場，然後在 Roya 的推出中分層疊加那些交叉銷售機會？

Sure. I mean, I would say, the market overall in MENA would be plus a single digit, year over year. So 2025 over 2024 should go, let's say 5%, 6%, and we always say we should double that growth. So whatever the market is growing at, we should be at double that rate.

當然。我的意思是，我想說，中東和北非地區的整體市場比去年同期成長了個位數。因此，2025 年相對於 2024 年的成長應該會達到 5% 或 6%，我們總是說我們應該將這一成長率翻一番。因此，無論市場以何種速度成長，我們的成長速度都應該是該速度的兩倍。

The Roya platform, the direction drilling, decarbonization segment, this is all addition to that. So what we believe is once it's the success of the direction drilling is proven in the sense of commercial viability that it can take 10, 20 rigs perform equal to the rig provider, we should be able to gain share because we have the contracts. And that's I think something we try to articulate that the key in the Middle East is to have a contract. You have to have a long-term contract with the customer to be able to deploy those technologies. And today we have that in our three main countries of operation, Saudi Arabia, Oman, and Kuwait.

Roya平台、定向鑽井、脫碳部分，這些都是除此之外的。因此，我們相信，一旦定向鑽井的成功在商業可行性的意義上得到證明，即它可以用 10 到 20 個鑽機達到與鑽機供應商相同的性能，我們就應該能夠獲得份額，因為我們有合約。我認為，我們試圖表達的是，中東問題的關鍵是簽訂合約。您必須與客戶簽訂長期合約才能部署這些技術。如今，我們的業務主要涵蓋三個國家：沙烏地阿拉伯、阿曼和科威特。

So now what we need is to deliver those technology on the rotary is terrible, that we are taking a very prudent and if you like technical way of looking at it. So we deploy when we know we can be at par with the big guys for the sake, obviously, of the customer because we want to be always credible. We always do maintain that, I can do in this formation, I can do this. My [jobless severity] is higher than what exists in the market.

所以現在我們需要的是在轉子上實現這些技術，這很糟糕，我們採取了非常謹慎的態度，如果你喜歡用技術的方式來看待它。因此，當我們知道我們可以與大公司相提並論時，我們就會進行部署，這顯然是為了客戶的利益，因為我們希望始終保持可信度。我們始終堅信，我能以這種陣型做到，我能做到這一點。我的失業嚴重程度高於市場水準。

So the customers see the benefit of us deploying the tools. With the speed of deploying and the speed of the success will determine how much that growth in revenue will be in addition year on year. But I have no obstacle or no issue on contract or waiting on contract to be awarded for me to be able to deploy. I have already the contract which is a very good thing to have. On the decarbonization, the third element, definitely is the is the appetite of the customer. We talk a lot about the methane pledge, we're talking about the 2030, COP29 is running as we speak.

因此客戶看到了我們部署這些工具的好處。部署的速度和成功的速度將決定收入每年將增長多少。但我在合約方面沒有遇到任何障礙或問題，也沒有等待合約授予以便我能夠部署。我已經簽訂了合同，這是一件非常好的事情。關於脫碳，第三個要素肯定是顧客的興趣。我們討論了很多關於甲烷承諾的事情，我們正在談論 2030 年，COP29 正在進行中。

So definitely it is something that everybody wants to monitor. We just came from ADIPEC in Abu Dhabi. It's still a very big important subject. The sustainability is extremely important. I think we live on a planet. We need to be careful how we manage our water resources in a place like as we -- as I call it star, is actually, I think it's the bottom on in the world from starvation of water per capita. It's all desalination. There is no rain.

所以這絕對是每個人都想監控的事情。我們剛從阿布達比的ADIPEC回來。這仍然是一個非常重要的課題。永續性極為重要。我認為我們生活在一個星球上。我們需要謹慎管理我們的水資源，我們這個地區——我稱之為明星，實際上，我認為這裡是世界上人均缺水量最低的地方。這都是海水淡化。沒有雨。

So for the energy industry to be disposing all this water of the produced well is not right. So we need to find solution that is economical. We think we are there. We think we can take the minerals that comes from that produced water and sell it and make a margin on it which basically pay for the power of doing that service. We think as well, we can get lithium, which can be a very big item on the renewable agenda if we get lithium from that.

因此，對於能源產業來說，將所有產油井的水都處理掉是不對的。所以我們需要找到經濟的解決方案。我們認為我們已經到了。我們認為，我們可以從生產水中獲取礦物質並將其出售，並從中賺取利潤，這筆利潤基本上可以支付提供這種服務的電力費用。我們也認為，我們可以獲得鋰，如果我們從中獲得鋰，這將成為再生能源議程上非常重要的項目。

So there is a lot of exciting things. Now the scale is what matters. And obviously, again, I keep repeating this. The key is the customer works with you to be able to give you that project and being willing to risk and take some test on that front. But again, for the sake of the climate, the world, the sustainability, I think, a rich industry like ours should do that.

所以有很多令人興奮的事情。現在規模才是最重要的。顯然，我再次重複這一點。關鍵在於客戶與您合作，能夠把這個專案交給您，並且願意承擔風險並在這方面接受一些測試。但是，為了氣候、為了世界、為了永續發展，我認為像我們這樣的富裕產業應該要這樣做。

Okay, great. And then, I did have a question, there's obviously the ongoing debate when, if, when Saudi Arabia is going to -- and OPEC Plus is going to kind of start ramping production again. Just as we think about that, if that were to happen at some point in 2025, how if at all, does that impact kind of the activity levels you're thinking about in 2025 and maybe 2026? Is that additive or is that kind of, it's a non-event?

好的，太好了。然後，我確實有一個問題，顯然存在一個持續的爭論，即沙烏地阿拉伯何時以及 OPEC Plus 何時會再次開始增加產量。正如我們所想，如果這在 2025 年的某個時候發生，那麼這會對您所考慮的 2025 年甚至 2026 年的活動水平產生什麼影響？這是附加的還是那種非事件？

No, I mean, look, I mean, it all depends. There is a lot of narrative out there. The Middle East needs the oil price to be at that level or above. So all this notion that they just going to open up the tab and flood the market with oil is not going to happen. So what they need to do is they need to -- they will continue with the pragmatism to ensure that the market is well balanced and the oil price remain healthy for their economic growth. So all the comments I made is based on that and all our forecast is based on that demand and supply.

不，我的意思是，看，我的意思是，這完全取決於情況。有很多這樣的敘述。中東需要油價達到或超過這個水準。所以，那些認為只要打開標籤就能向市場注入石油的想法是不會實現的。因此他們需要做的是——他們將繼續採取務實態度，確保市場平衡，油價保持健康，有助於經濟成長。所以我所發表的所有評論都是基於此，我們所有的預測也是基於需求和供應。

Now, if for whatever reason, the geopolitics, there is another drop of some of the producer and get eliminated from their production and then the Saudis or others have to come up with production. To make up for that for sure, the activity will go much higher. So our comment and our analysis is based on an oil price, the same OPEC plus remain their cut, which and for the foreseeable future, until the demand comes back from China and then the world needs more oil.

現在，如果由於地緣政治等原因，一些生產商的產量再次下降並被淘汰，那麼沙烏地阿拉伯或其他國家就必須增加產量。為了彌補這一點，活動將會更加活躍。因此，我們的評論和分析是基於油價的，即石油輸出國組織（OPEC）將繼續減產，並且在可預見的未來，直到中國需求回升，世界才需要更多的石油。

Now, if you think about the narrative of the US and President Trump and, and most probably Russia can back to the game, et cetera, et cetera. It doesn't really that more activity will happen. But we are taking that notion, that the activity will remain.

現在，如果你想想美國和川普總統的敘述，而且俄羅斯很可能可以重返遊戲，等等，等等。但實際上並不會發生更多活動。但我們堅持認為，這項活動將繼續下去。

It's a small low-single digit 2025 over 2024. And we are outgrowing that market if the oil price get stronger. And as I said, somebody has to replace another. Yeah, activity will go further up. And the oil price and the economy of the Middle East is all depending on oil and gas. So people have to remember that. This is not part of the industry that you have 20 off. This is the main core business of employment, supply chain, everything in the country. So people will protect it.

2025 年比 2024 年少了一個小個位數。如果油價走強，我們的成長就會超越這個市場。正如我所說的，總得有人取代別人。是的，活動會進一步增加。而中東的油價和經濟都依賴石油和天然氣。所以人們必須記住這一點。這不屬於您享有 20% 折扣的行業。這是就業、供應鏈、國家一切事物的主要核心業務。所以人們會保護它。

Super helpful. Thank you very much.

超有幫助。非常感謝。

(Operator Instructions) Derek Poser, Piper Sandler.

（操作員指示）德里克·波瑟、派珀·桑德勒。

Hey Sherif, good morning. And congrats on the re-listing.

嘿，警長，早安。並祝賀其重新上市。

Thank you, sir.

謝謝您，先生。

Just wanted to go back to your comment about your ability to cater to the growth in the MENA region. How should we think about that in regards to your equipment base and what it means for a CapEx investment cycle? What can you service today? Where would activity need to go in order to meaningfully build out new capacity and related? What does it mean for pricing and margins and how can you drive that higher over the next couple of years?

我只是想回到你關於你滿足中東和北非地區成長的能力的評論。就您的設備基礎而言，我們應該如何看待這一點，以及它對資本支出投資週期意味著什麼？今天您可以提供什麼服務？為了有意義地建立新的能力和相關內容，活動需要進行到哪裡？這對定價和利潤意味著什麼？

Hey, Derek, it's Stefan here. So I'll take the first bit of the question, right? As I said, this year, we've spent $80 million in CapEx this year so far and we've got another 40 million, which is mainly Roya tools coming out. For the -- let's just say, the 5% to 10% growth, which we're sort of anticipating next year, right? We think the CapEx will be $120 million. Again, give or take, right? If we were to -- if the revenue from Roya was to grow greater than that, our CapEx obviously would be higher and if we get any native projects, next year, there would be some CapEx on that. But we're looking at flattish CapEx of $120 million again next year on that 5% to 10% growth.

嘿，德里克，我是史蒂芬。那我來回答第一個問題，對嗎？正如我所說，今年迄今為止我們已經花費了 8000 萬美元的資本支出，另外還有 4000 萬美元，主要是用於推出 Roya 工具。就我們預計明年的 5% 到 10% 的成長率來說，對嗎？我們認為資本支出將達到 1.2 億美元。再說了，有得有失，對吧？如果我們——如果 Roya 的收入成長超過這個數字，我們的資本支出顯然會更高，而且如果我們明年獲得任何原生項目，那麼就會有一些資本支出。但我們預計明年資本支出將再次持平於 1.2 億美元，成長 5% 至 10%。

Got it. That's helpful. And maybe a little color on the free cash flow conversion of that incremental CapEx. That's just how should we think about the overall view of the free cash flow generation.

知道了。這很有幫助。也許會對增量資本支出的自由現金流轉換產生一些影響。這就是我們應該如何看待自由現金流產生的整體觀點。

Right now, let's say, about $120 million of CapEx for next year. We're probably looking, the high 30%, 40% free cash flow conversion. We'll probably have some working capital, less efficient. We've done very well over the last two years as I elaborated and I think it will be tough to keep pushing down inventory and pushing down there. So with growth. But we'll do our best. But I would keep it at 40% of free cash flow conversion to EBITDA.

現在，假設明年的資本支出約為 1.2 億美元。我們可能正在尋求高達 30%、40% 的自由現金流轉換率。我們可能會有一些營運資金，效率較低。正如我詳細闡述的那樣，過去兩年我們做得很好，我認為繼續壓低庫存並降低成本將會很困難。成長也是如此。但我們會盡力。但我會將自由現金流轉換為 EBITDA 的比例維持在 40%。

Got it. Great. That's helpful. My follow up question, I wanted to talk about those partnerships with the North America companies that you, that you mentioned Sherif and how we should think about deploying US Shell technology in the MENA region. You pointed out Cactus in Phoenix. How should we think about these evolving over time over the next couple of years? And where MENA is on the technology adoption scale versus where USL is? And what products you're looking to bring overseas, just maybe some more color on that would be helpful.

知道了。偉大的。這很有幫助。我的後續問題是，我想談談您與北美公司的合作關係，您提到的 Sherif，以及我們應該如何考慮在中東和北非地區部署美國殼牌技術。您指出了鳳凰城的仙人掌。我們該如何看待這些在未來幾年內的發展？那麼，中東和北非地區在技術採用規模上與美國南部相比處於什麼位置？以及您希望將哪些產品出口到海外，了解更多這方面的資訊可能會有所幫助。

Sure, I mean, if you look at the unconventional, for example, for Saudi, everything you can imagine in the premium and the best-in-class is being deployed. So and that's when we started that journey back in 2019 with Aramco, that's exactly what we said. We said, guys, we are open platform and we are going to bring the best-in-class, is not like because I have that you have to use that. We are going to see what do we use, what is being used, and how they moved from 5, 6 stages to 18 to 20, 22 pumping for 22 hours. What -- how did they achieve that?

當然，我的意思是，如果你看一下非常規的東西，例如對於沙烏地阿拉伯來說，你可以想像到的所有高端和一流的東西都在部署。所以，當我們在 2019 年與沙烏地阿美公司開始這段旅程時，我們就是這麼說的。我們說，夥計們，我們是開放平台，我們將帶來一流的產品，並不是因為我有這個，你就必須使用它。我們將了解我們使用了什麼、正在使用什麼，以及他們如何從5、6個階段轉移到18、20、22個階段，持續22個小時進行抽水。他們是如何做到的？

How did the customer and the technology in the Shell in the US managed to do that? And that's exactly what we did and obviously under their leadership is, we looked at who has what? And we teamed up with those with those technologies. So Cactus is doing very, very, very good in our well head and factories. We use (inaudible) John and Phoenix on the drilling and their motors. We have Scout on the monobore, and again, what is the best-in-class being used here And we took it there.

美國殼牌的客戶和技術是如何做到這一點的？這正是我們所做的，顯然在他們的領導下，我們研究了誰擁有什麼？我們與擁有這些技術的人合作。因此，Cactus 在我們的井口和工廠中表現非常非常出色。我們使用（聽不清楚）約翰和菲尼克斯進行鑽探及其引擎。我們在單孔鑽孔機上安裝了 Scout，同樣，我們在這裡使用的也是同類產品中最好的，然後我們就把它帶到了那裡。

And obviously, the way it works in charge for, again, for the people to understand you have to have, so the local player, which is us. We bring -- we say we present the technology that is very innovative, that is unique. And why is it better? And obviously, Aramco is extremely a solid customer with a very, very good and very strong technical department they check and they vet this technology. Then we go through what we call a TTR or a trial test.

顯然，它的工作方式是讓人們再次理解你必須擁有的，所以本地參與者，也就是我們。我們帶來了——我們說我們展示了非常創新、獨特的技術。為什麼它更好？顯然，沙特阿美公司是一個非常可靠的客戶，他們擁有非常優秀和強大的技術部門，他們會檢查並審查這項技術。然後我們進行所謂的 TTR 或試驗測試。

And during that trial test, they will check and test the technology and what they call free trials. When they prove that and they see track record, then we bring this under our umbrella and perform with the customer. And we do it, we do it transparently. We brand the company partner. We don't say, oh this is not, no. We say this is Cactus, this is Phoenix, this is Scout, this is the et cetera.

在試用期間，他們會檢查並測試技術，也就是所謂的免費試用。當他們證明這一點並且看到了業績記錄時，我們就會將其納入我們的保護範圍並與客戶一起執行。我們確實這麼做了，並且透明地這麼做。我們為公司合作夥伴打造品牌。我們不會說，哦，這不是，不是。我們說這是仙人掌，這是鳳凰，這是偵察兵，這是等等。

What I see the next level. I think there will be a lot of work that we are going to do on the next level of mailing the plugs. So I think that we are looking into partnership with some snubbing to see should we go faster on finalizing, especially once we go to the 25,000 stage. We are working very close now with beyond which is MPD, managed pressure drilling, both on unconventional and not unconventional. We are looking at as well bringing those package like we do in the US to there.

我所看到的下一個層次。我認為我們在下一步郵寄插頭的工作中還有很多工作要做。因此，我認為我們正在尋求與一些冷落者建立合作關係，看看我們是否應該加快完成速度，特別是一旦我們進入 25,000 階段。目前，我們正在與 MPD（可控壓力鑽井）展開密切合作，既涉及非常規油氣，也涉及非非常規油氣。我們也在考慮將這些方案帶到那裡，就像我們在美國所做的那樣。

There is some technology that we are looking at on ONE Line and we have a couple of partner without mentioning the names. We're looking at second level of what else could we do to reduce the frac operation and the preparation timing. And I think there will be some work as well on the rig up, rig down, and the speed between pads. But just to understand that in that size or that type of operation, that type of professional today is only in Saudi Arabia in the MENA region.

我們正在 ONE Line 上研究一些技術，並且我們有幾個合作夥伴，但我不透露名字。我們正在研究第二層次的問題：我們還能採取哪些措施來減少壓裂作業和準備時間。我認為在鑽機升起、鑽機下降以及墊塊之間的速度方面也會有一些工作要做。但要了解的是，如今只有中東和北非地區的沙烏地阿拉伯才有這種規模、這種類型的營運和這種類型的專業人員。

So it is not like this is what you see. No, it's only but they went through appraisal exploration, they spent a lot of money assessing those wells before they went now to development, which is basically now manufacturing and that's exactly best-in-class like you see in any pad in the US, for the top clients like EOG or Devin, and any of these guys. It's exactly the same.

所以這並不像你所看到的那樣。不，只是他們進行了評估勘探，在進入開發階段之前，他們花了很多錢評估這些油井，現在開發階段基本上就是製造業，這正是您在美國任何平台看到的最佳水平，對於像 EOG 或 Devin 這樣的頂級客戶以及任何這些公司來說都是如此。一模一樣。

Now the other countries in unconventional, it's I would call it in infancy, right? So they are in that trajectory. But as if you are like seven, eight years ago. So they're going to go through that process. And again, the infrastructure supply chain is a challenge in the Middle East. So you have a challenge of the water. There is not water. As I just explained. There is a challenge of the local sand which is proven now to be successful. That's what we do in Saudi. That's why the cost went down dramatically.

現在其他國家都處於非常規階段，我稱之為嬰兒期，對嗎？所以他們處於那條軌跡上。但你彷彿還跟七、八年前一樣。所以他們將經歷這個過程。基礎設施供應鏈對中東來說再次是一項挑戰。所以你面臨的是水的挑戰。沒有水。正如我剛才解釋的那樣。當地的沙子麵臨一個挑戰，現在事實證明它是成功的。這就是我們在沙烏地阿拉伯所做的事情。這就是成本大幅下降的原因。

If people look back 10 years ago, we used to fly and import sand from Australia and the US to Saudi, which is obviously, we have a lot of sand in the Middle East. So now we use all local sand, we actually use even regional sand, sandboxes, et cetera. So long answer. But I'm just trying to give you the picture that, that has happened today already in Saudi. I think the unconventional prospect in the Middle East, you have a couple of other countries.

如果回顧十年前，我們曾經搭飛機從澳洲和美國進口沙子到沙烏地阿拉伯，顯然，中東有很多沙子。所以現在我們全部使用當地的沙子，實際上我們甚至使用區域性的沙子、沙箱等等。答案好長。但我只是想讓你們了解今天在沙烏地阿拉伯已經發生的事情。我認為中東地區的非傳統前景是還有其他幾個國家。

I think Algeria could be a very, very good place for people that understand the, the, you know, the reservoir characterization. It's a very similar to the Vaca Muerta. And that basin is huge and it could be developed at the same scale of you have in Argentina, you have again in Eagle Ford, et cetera and this could be set up, but again, they just have to stop, right? And then obviously supply chain, everything has to be developed accordingly.

我認為，對於了解油藏特徵的人來說，阿爾及利亞是一個非常非常好的地方。它與 Vaca Muerta 非常相似。那個盆地非常巨大，可以像阿根廷、鷹福特等地那樣進行開發，也可以建立這個，但是他們必須停下來，對嗎？然後顯然是供應鏈，一切都必須相應地發展。

No, very helpful comments. Thanks, Sherif. Thanks, Stefan. I'll turn it back.

不，非常有用的評論。謝謝，警長。謝謝，史蒂芬。我會把它轉回去。

Thank you, sir.

謝謝您，先生。

Thank you. At this time, I would like to turn the floor back over to Mr. Foda for closing comments.

謝謝。現在，我想把發言權交還給福達先生，請他發表最後評論。

Thank you very much. We really appreciate all the time that everybody has put. We again would like to thank all our employees, their families, all our shareholders, all our banks, all our partners. We had a very good time now and we are looking forward to see a lot of people tomorrow. We are going to be on the Nasdaq closing bell. We will have our tech exposition two hours before. So people will be able to see the technology.

非常感謝。我們非常感謝大家投入的時間。我們再次感謝我們所有的員工、他們的家人、所有股東、所有銀行、所有合作夥伴。我們現在過得很愉快，並期待明天見到很多人。我們即將聽到納斯達克收盤鈴聲。我們將提前兩小時舉行技術展覽。這樣人們就能夠看到這項技術。

We will display the Roya platform, we display the NEDA, the decarbonization. We have people coming from the Middle East, our managers, and executives to be there as well. So a lot of the investor and partners will be able to talk to them and integrate with them and then see as well the technology and see the mock up. And definitely we'll have some time as well to, as we say to celebrate with the closing bell and the event after that. Thank you very much. Appreciate all the support.

我們將展示 Roya 平台、展示 NEDA 和脫碳。我們有來自中東的人，還有我們的經理和高階主管。因此，許多投資者和合作夥伴將能夠與他們交談、與他們整合，然後了解技術和模型。當然，我們也會有一些時間，就像我們說的，隨著收盤鐘聲和隨後的活動而慶祝。非常感謝。感謝大家的支持。

Ladies and gentlemen, this concludes today's event. You may disconnect your lines or log off the webcast at this time and enjoy the rest of your day.

女士們、先生們，今天的活動到此結束。您可以立即斷開線路或退出網路廣播，享受剩餘的一天。