National Energy Services Reunited Corp (NESR) 2025 Q1 法說會逐字稿

Greetings, and welcome to the NESR reports first-quarter 2025 financial results conference call and webcast. (Operator Instructions) As a reminder, this conference is being recorded.

大家好，歡迎參加 NESR 報告 2025 年第一季財務業績電話會議和網路廣播。（操作員指示）提醒一下，本次會議正在錄音。

Is now my pleasure to turn the call over to your host, Blake Gendron, Vice President, Investor Relations. Please go ahead, Blake.

現在我很高興將電話轉給主持人、投資者關係副總裁 Blake Gendron。請繼續，布萊克。

Thanks, Kevin. Hello and welcome to NESR's first-quarter 2025 earnings call. With me today are Sherif Foda, Chairman and Chief Executive Officer of NESR; and Mr. Stefan Angeli, Chief Financial Officer.

謝謝，凱文。您好，歡迎參加 NESR 2025 年第一季財報電話會議。今天與我一起出席的還有 NESR 董事長兼執行長 Sherif Foda 和財務長 Stefan Angeli 先生。

On today's call, we will comment on our first-quarter results and overall performance. After our prepared remarks, we will open up the call to questions.

在今天的電話會議上，我們將對第一季的業績和整體表現進行評論。在我們準備好發言之後，我們將開始提問。

Before I 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 the results to differ from those projected in these statements. I, therefore, refer you to our latest earnings release filed earlier today and other SEC filings.

在我開始之前，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，可能導致結果與這些聲明中預測的結果不同。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。

Our comments today also include non-GAAP financial measures. Additional details on reconciliations to the most directly comparable GAAP financial measures can be found in our press release, which is on our website.

我們今天的評論還包括非公認會計準則財務指標。有關與最直接可比較的 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.

最後，如果您有任何其他問題，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找到。

Now I'll hand the call over to Sherif.

現在我將把電話交給 Sherif。

Thanks, Blake. Ladies and gentlemen, good morning, and thank you for participating in this conference call. First, I would like to thank the entire NESR team for delivering the services to our de-risked customers and executing flawlessly despite all the macroenvironment and the full-month impact of Ramadan during the first quarter.

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。首先，我要感謝整個 NESR 團隊，儘管在第一季面臨宏觀環境和齋月整月的影響，他們仍然為我們的低風險客戶提供服務，並且完美地執行。

Nevertheless, the geopolitical and global economic winds have shifted immensely since the start of the year. As we have seen many times in our industry, this cycle is resetting and we, at NESR, are preparing to size the many opportunities that could emerge in the coming 12 to 18 months of market transition. As we say, never miss the opportunity of a downturn.

然而，自今年年初以來，地緣政治和全球經濟風向發生了巨大變化。正如我們在行業中多次看到的那樣，這個週期正在重新調整，我們 NESR 正在準備評估未來 12 到 18 個月的市場轉型中可能出現的眾多機會。正如我們所說，永遠不要錯過經濟低迷的機會。

With that in mind, let me start with the macro and the big picture for our sector. When it comes to this oil cycle reset, we have all been here before. In fact, this is my fourth time to navigate such an environment. From what I can see, the combination of pessimism around oil demand and unwind of spare oil supply is much like the setup for 2015-2016 cycle reset.

考慮到這一點，讓我先從宏觀和我們行業的大局開始。說到這個石油循環重置，我們以前都遇到過這種情況。事實上，這是我第四次在這樣的環境中航行。就我所見，石油需求的悲觀情緒和石油供應過剩的解除很像 2015-2016 年周期重置的設定。

On the oil demand side, global geopolitical tension and trade uncertainty continued to weigh on economic growth that was already from fragile coming into the year. On the oil supplies side, non-OPEC and particularly, US production remained resilient in the face of rig and frac activity declines, at least for the short term.

在石油需求方面，全球地緣政治緊張局勢和貿易不確定性繼續對今年本已脆弱的經濟成長造成壓力。在石油供應方面，非歐佩克國家，尤其是美國的石油產量在鑽井和壓裂活動減少的情況下仍然保持彈性，至少在短期內如此。

Given continued activity reduction in the US, we expect to see an impact to non-OPEC production coming 12 months despite pockets of growth in places like Guyana and Brazil. As they have announced OPEC has decided to gradually bring back previously curtailed barrels. This dynamic remains the wildcard in framing the downside case for oil prices. And I suspect the commodity market would remain on edge for the time being.

鑑於美國持續減少的生產活動，我們預計未來 12 個月非 OPEC 國家的產量將受到影響，儘管圭亞那和巴西等地的產量將有所增長。正如他們所宣布的，歐佩克已決定逐步恢復先前削減的石油產量。這種動態仍然是決定油價下行前景的不確定因素。我預計大宗商品市場目前仍將處於緊張狀態。

Now, what does that mean for activity in the MENA region? For the GCC, it is not the same answer everywhere. Saudi remains the key player with maximum sustainable capacity and, therefore, can reduce drilling activity with negligible impact to oil production. Those that are new to the industry may not fully appreciate this dynamic. It unique to the kingdom. In other words, they can cut rigs and still raise production by even several million barrels if they choose to do so.

那麼，這對中東和北非地區的活動意味著什麼？對於海灣合作委員會來說，各地的答案並不相同。沙烏地阿拉伯仍然是擁有最大可持續產能的關鍵參與者，因此可以減少鑽井活動，對石油產量的影響可忽略不計。那些剛進入該行業的人可能無法完全理解這種動態。這是王國獨有的。換句話說，如果他們願意的話，他們可以削減鑽井數量，同時仍將產量提高數百萬桶。

Today, we believe that without the strong growth of unconventional activity, the Saudi market would otherwise be down in '25. On the other hand, Kuwait is pushing ahead on growth despite lower oil price, characteristic of the long-term strategic vision.

今天，我們認為，如果沒有非常規活動的強勁成長，沙烏地阿拉伯市場在 2025 年就會下滑。另一方面，科威特在油價低迷的情況下仍堅持推動經濟成長，反映了其長期戰略眼光。

They put a 2040 plan in place, and they are executing it. So we will see added rigs and services and the coming quarters and years. Furthermore, they have launched innovative commercial models for risk sharing and growth in this area will be additive to the expected standard service market.

他們制定了 2040 年計劃，並且正在執行。因此，我們將在未來幾個季度和幾年看到鑽機和服務的增加。此外，他們還推出了風險分擔的創新商業模式，該領域的成長將為預期的標準服務市場增添動力。

UAE and North Africa will grow as well. And as of today, we have seen negligible activity impact from lower prices. The rest of the countries have been and are expected to remain stable.

阿聯酋和北非也將成長。截至今天，我們發現價格下跌對活動的影響微乎其微。其餘國家一直保持穩定，預計也將保持穩定。

While a materially lower oil scenario would likely impact all of these countries, it is important to remember two key themes. One, the MENA region represent the lowest breakeven cost for oil globally; two, upstream remains a highly strategic sector, if not the main all of the countries in which we operate.

儘管石油價格大幅下降可能會影響所有這些國家，但重要的是要記住兩個關鍵主題。一是中東和北非地區是全球石油損益平衡成本最低的地區；二是上游仍然是高度策略性的產業，即使不是我們開展業務的所有國家中的主要產業。

As seen in previous cycles, we are moving rightsize the fixed cost structure and are using our agility to high grade (technical difficulty) and in '26. Why? First, we are still relatively small and have a larger set of incremental contract opportunities from which to choose from. Second and perhaps more concretely, we have recently won multiple key contracts and are now in the planning phase ahead of anticipated mobilization.

正如在前幾個週期中所看到的，我們正在調整固定成本結構，並利用我們的敏捷性來提高等級（技術難度），並在 26 年實現這一目標。為什麼？首先，我們的規模仍然相對較小，並且有大量的增量合約機會可供選擇。第二，也許更具體地說，我們最近贏得了多個重要合同，目前正處於預期動員前的規劃階段。

Let me elaborate more specifically. In Oman, we have a strong base of contract and recently announced a number of incremental contract in areas such as drilling and slickline, span five years. While Oman remains a stable market and is already one of our top three countries in terms of size, we expect to grow. Opportunities to deploy our ROYA directional drilling platform will drive the next leg of growth and our drilling and evaluation performance and leadership position.

讓我更具體闡述。在阿曼，我們擁有強大的合同基礎，最近宣布了鑽井和鋼絲繩等領域的一系列增量合同，為期五年。阿曼仍然是一個穩定的市場，並且已經是我們規模最大的三個國家之一，我們預計將繼續成長。部署我們的 ROYA 定向鑽井平台的機會將推動下一階段的成長以及我們的鑽井和評估績效和領導地位。

Similarly, in UAE, a stable market with capacity approaching target, we have won new contracts on top of the anchor contract previously secured. Therefore, we have clear visibility for the coming couple of years.

同樣，在阿聯酋這個市場穩定，產能接近目標，我們在之前獲得的基礎合約的基礎上又贏得了新的合約。因此，我們對未來幾年有清晰的認識。

Moving to Kuwait, a resilient bright spot of growth globally. We have recently won multiple awards and are in the process of tendering for several billion dollars in multi-year contract across several segments. Given our size and momentum, we should outgrow in an already robust growth market, and depending on the outcome of these tenders, could see Kuwait launch into the second-biggest country within our footprint.

轉向科威特，這是全球成長的一個有韌性的亮點。我們最近贏得了多個獎項，並且正在競標多個領域數十億美元的多年期合約。鑑於我們的規模和發展勢頭，我們應該能夠在已經強勁增長的市場中繼續成長，並且根據這些招標的結果，科威特可能會成為我們業務範圍內第二大國家。

Therefore, we are investing strongly in the country, including in our recently announced Ahmadi Innovation Valley, which aims to measure our success with technological launch of NORI in Saudi Arabia. We plan to bring a number of our technology investment and pilot cutting-edge solution with our visionary customer as they move quickly to tackle challenges in their next phase of capacity growth.

因此，我們正在大力投資該國，包括我們最近宣布的艾哈邁迪創新谷，旨在透過在沙烏地阿拉伯推出 NORI 技術來衡量我們的成功。我們計劃為有遠見的客戶帶來一系列技術投資和試點尖端解決方案，幫助他們迅速應對下一階段產能成長的挑戰。

We're excited about North Africa despite the potential price sensitivity to oil. With a base of anchor contracts in hand and well-calibrated investment, we are tendering on several hundred million dollars of contracts and, thus, have the potential to outgrow the market there. Geopolitical tension and security could delay the pace of award decision and additional rig deployment, but we remain optimistic.

儘管北非對石油價格可能較為敏感，但我們仍對北非市場充滿期待。憑藉手頭上一批主力合約和精心策劃的投資，我們正在競標價值數億美元的合同，因此有潛力超越那裡的市場。地緣政治緊張和安全問題可能會延遲授予決定和額外鑽井平台部署的步伐，但我們仍然保持樂觀。

Coming back to the fulcrum of the story and our largest country footprint, Saudi Arabia. Despite the softening outlook, I'm confident that we will weather the storm because one, we remain relatively small compared to competition on our favorably exposed to secular gas growth. Two, we have numerous projects and initiatives that elevate our profile as a nimble technology provider.

回到故事的支點和我們最大的國家足跡—沙烏地阿拉伯。儘管前景疲軟，但我相信我們能夠渡過難關，因為首先，與競爭對手相比，我們的規模仍然相對較小，而且我們受益於長期天然氣增長。其次，我們有許多項目和計劃可以提升我們作為靈活技術提供者的形象。

Our open technology platform has proven incredibly fruitful in the kingdom. And with the collaborative support of our customer, we are driving in-country innovation generation of Saudi professionals in key areas such as water, minerals, directional drilling, methane detection, and geothermal.

我們的開放科技平台已在沙烏地阿拉伯取得了豐碩成果。在客戶的協作支援下，我們正在推動沙烏地阿拉伯國內水、礦產、定向鑽井、甲烷探測和地熱等關鍵領域的專業創新。

With that lead into technology, let me conclude by providing an update on our key growth frontier, ROYA and NEDA. Our RoyaSteer Rotary Steerable has undergone extensive field and facility testing, and we are moving new tools to Oman to endeavor the next phase of the commercialization journey.

在介紹技術領域後，最後讓我介紹我們的關鍵成長前沿 ROYA 和 NEDA 的最新情況。我們的 RoyaSteer 旋轉操縱裝置經過廣泛的現場和設施測試，我們正在將新工具轉移到阿曼，以努力實現商業化進程的下一階段。

As we communicated before, the entire ROYA rollout and particularly, the rotary steerable, is designed to be conservative, deliberate, and with utmost focused on reliability and continuous improvement. We are commercializing with the long term in mind and testing footage drilled is the key metric. Extensive testing, calculated deployment, and well-timed commercialization will help us maximize the success of the platform in collaboration with our key customers.

正如我們之前所傳達的，整個 ROYA 的推出，特別是旋轉導向裝置，在設計上是保守的、深思熟慮的，並且最大限度地註重可靠性和持續改進。我們進行商業化時著眼於長遠，而測試鑽孔長度是關鍵指標。廣泛的測試、精心的部署和適時的商業化將幫助我們與主要客戶合作，以最大限度地實現平台的成功。

Shifting to NEDA, in recent months, we've mobilized crucial pilot project in multiple areas of mineral recovery. With several exciting opportunities in rare, these pilots are important in boosting the overall economics of produced water treatment. Beyond the need for division to recycle its own water and eliminate freshwater use, we have active client engagement with our key customer and the success of the ongoing pilot will be contagious to others.

轉向國家經濟開發署，近幾個月來，我們在礦產回收的多個領域啟動了重要的試點計畫。這些試點計畫為數不多的令人興奮的機會，對於提高採出水處理的整體經濟效益具有重要意義。除了部門需要回收自己的水並消除淡水的使用之外，我們還與主要客戶進行了積極的客戶互動，正在進行的試點計畫的成功將對其他客戶具有感染力。

Overall, while we would prefer an expanding market for all, I'm excited about our differentiated story. We cannot control the commodity cycle but can drive relative performance within any market framework.

總的來說，雖然我們希望所有人都能擁有一個不斷擴大的市場，但我對我們差異化的故事感到興奮。我們無法控製商品週期，但可以推動任何市場框架內的相對錶現。

We started NESR principally as a pure play service provider in the best geography for upstream activity. I am confident that this differentiation will come to the forefront in the coming 12 to 18 months. Additionally, our counter cyclical investing as we successfully executed back during the COVID pandemic will set the company up for continued growth and success over all time horizon.

我們創立 NESR 主要是作為純粹的服務供應商，位於最適合上游活動的地理位置。我相信，這種差異化將在未來 12 到 18 個月內成為主流。此外，我們在新冠疫情期間成功實施的逆週期投資將為公司在整個時間範圍內的持續成長和成功奠定基礎。

We are as excited about the story as ever, both in terms of balance sheet and contract positioning to outperform. With this, I will pass the call to Stefan to discuss the financial in detail.

我們對這個故事一如既往地感到興奮，無論是在資產負債表還是合約定位方面，我們都將表現出色。說完，我將把電話轉給史蒂芬，詳細討論財務問題。

Thank you very much, 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. (technical difficulty) for the first quarter of '25 and color for Q2 '25 and the full year of 25.

非常感謝，警長。早安，我們的美國觀眾，下午好，晚上好，我們的中東、北非、亞洲和歐洲的觀眾。 （技術難度）為 25 年第一季度，顏色為 25 年第二季和 25 年全年。

A lot has happened in the last three months since we last talked. Ongoing macro volatility worldwide, the new administration in the US, uncertainty in the tariffs, fire inflation, lower subsidies to developing countries, the ongoing war in the Ukraine, and the overall geopolitical uncertainty in the Middle East that all led to lower oil prices and lower rig count in certain countries. All this has impacted the Q1 '25 results for the oilfield services sector (technical difficulty) difficult.

自從我們上次談話以來，過去三個月發生了很多事情。全球宏觀經濟持續動盪、美國新政府上台、關稅不確定性、通貨膨脹、對發展中國家補貼減少、烏克蘭持續戰爭以及中東整體地緣政治不確定性，均導致某些國家的油價下跌和鑽井數量減少。所有這些都對油田服務業 25 年第一季的業績產生了影響（技術難度）。

Despite all this, as Sherif highlighted in his market summary, most of the markets in the Middle East, apart from Saudi, were flat to up in Q1 '25 versus Q1 '24. And we continue to see this stability for the rest of '25 as it stands now.

儘管如此，正如謝里夫在其市場總結中所強調的那樣，除沙烏地阿拉伯外，2025 年第一季中東大部分市場與 2024 年第一季相比均持平或上漲。就目前情況而言，我們將繼續看到 2025 年剩餘時間的穩定性。

First, let's turn to Q1 '25. Our overall first-quarter revenue was $303.1 million, which was up 2.1% year over year, outpacing the broader market but was down 11.7% sequentially. Year over year, there was Abu Dhabi Algeria, Kuwait, Iraq, Libya, partially offset by a slow start for the year in Saudi. The sequential decrease in Saudi was mainly on slowdowns in our main project due to Ramadan.

首先，讓我們來看看25年第一季。我們第一季的總營收為 3.031 億美元，年增 2.1%，超過大盤成長，但季減 11.7%。與去年同期相比，阿布達比、阿爾及利亞、科威特、伊拉克、利比亞的表現有所提升，但沙烏地阿拉伯今年的開局緩慢在一定程度上抵消了這一影響。沙烏地阿拉伯的環比下降主要是因為齋月導致我們的主要專案進度放緩。

Now turning to adjusted EBITDA, $62.5 million with margins of 20.6%, down 100 basis points on a year-over-year quarter basis. This is mainly due to the slowdown in specific project activity in Saudi in March due to Ramadan. Interest expense for Q1 '25 was $8.3 million. In Q1 '25, tax was $3.3 million, which implies an effective tax rate of 24%.

現在轉向調整後的 EBITDA，為 6,250 萬美元，利潤率為 20.6%，比去年同期下降 100 個基點。這主要是由於3月份沙特特定項目活動因齋月而放緩。25 年第一季的利息支出為 830 萬美元。25 年第一季度，稅收為 330 萬美元，這意味著有效稅率為 24%。

Turning to earnings per share, EPS adjusted for charges and credits was $0.14 for the first quarter of '25. The charges and credits of $2.6 million impact in adjusted EBITDA and adjusted EPS was the lowest for many periods. They were made up primarily of two items in Q1 '25 as follows: customer remediation and material weakness controls, which should moderate dramatically from now and an impairment of the small investment.

談到每股收益，25 年第一季經費用和貸項調整後的每股收益為 0.14 美元。調整後 EBITDA 和調整後 EPS 的費用和貸項影響為 260 萬美元，是多個期間以來的最低水準。它們主要由 25 年第一季的兩項內容組成：客戶補救和重大弱點控制（從現在起應該會大幅緩和）以及小額投資的減損。

Now turning to our cash flow and liquidity, our cash flow from operations during the first quarter of '25 was $20.5 million. The headwinds to cash flow generation was mainly driven by a sharp increase in our [DSO] in Q1 '25 as Ramadan closed most of our client's offices for the last week in March.

現在談談我們的現金流和流動性，25 年第一季我們的營運現金流為 2,050 萬美元。現金流產生面臨的阻力主要是由於齋戒月導致我們大多數客戶的辦公室在 3 月最後一周關閉，導致 2025 年第一季的 [DSO] 急劇增加。

Free cash flow for Q1 '25 was negative $9.6 million with CapEx of $30 million as we continue to front-end-load growth in technology deployments. As of March 31, our gross debt was $366 million and our net debt was $288 million. Our net debt to adjusted EBITDA was 0.93 remains below the 1 times target for the third consecutive quarter. On a trailing 12 months basis, our return on capital employed or ROCE safety was 11.3% concurrent with our robust growth investment strategy.

由於我們繼續在技術部署方面進行前端負載成長，2025 年第一季的自由現金流為負 960 萬美元，資本支出為 3,000 萬美元。截至 3 月 31 日，我們的總債務為 3.66 億美元，淨債務為 2.88 億美元。我們的淨債務與調整後 EBITDA 比率為 0.93，連續第三個季度低於 1 倍的目標。在過去 12 個月中，我們的資本使用回報率或 ROCE 安全性為 11.3%，這與我們的強勁成長投資策略一致。

We expect Q2 '25 revenues to grow sequentially versus Q1 '25 but moderate on a year-over-year basis as key project timing is now expected to be more back-half-year weighted. The Q2 '25 growth will be approximately half the growth rate of Q2 '24 versus Q1 '24.

我們預計 2025 年第二季的營收將較 2025 年第一季環比成長，但同比成長速度將放緩，因為目前預計關鍵項目的時間安排將更多地集中在上半年。2025 年第二季的成長率將約為 2024 年第二季相對於 2024 年第一季成長率的一半。

Despite the overall headwinds in rig releases in Saudi Arabia, for our full year '25, we expect revenue growth due to our recent contract wins and successful technology deployed that Sherif previously highlighted. Margins for Q2 '25 should slightly improve on Q1 '25 with a modestly higher revenues and the impact of our cost reduction program initiated in April. We do not expect to be materially -- impacted materially by the US-China tariffs stories.

儘管沙烏地阿拉伯的鑽井平台發布總體面臨阻力，但正如 Sherif 先前強調的那樣，由於我們最近贏得的合約和成功部署的技術，我們預計 2025 年全年收入將實現成長。由於收入略有增加以及我們 4 月啟動的成本削減計劃的影響，2025 年第二季的利潤率應比 2025 年第一季略有提高。我們預計不會受到中美關稅事件的實質影響。

Full-year '25 interest should be around $30 million, and full-year '25 [ETR] should be in the mid-20s as previously outlined. CapEx for the full year '25 will be in the vicinity of $125 million, as previously outlined, and may go slightly up dependent on the results of some large tenders, which obviously will impact revenues in the future years.

25 年全年利息應在 3000 萬美元左右，25 年全年 [ETR] 應在 20 年代中期，正如之前概述的那樣。如同先前所述，25 年全年的資本支出將在 1.25 億美元左右，並且可能會根據一些大型招標的結果而略有上升，這顯然會影響未來幾年的收入。

Now on to housekeeping topics, we spent the better part of the last two-plus years reshaping our back office and the company overall with new updated processes, procedures, and controls as well as implementing the latest software upgrades to our ERP system. As you know, in '24, we remediated three or four historical material weaknesses, and we're still confident that the last one will be remediated in '25 as most of the work has already been done and testing is all that is required.

現在討論內部管理話題，我們花了兩年多的時間重塑我們的後台辦公室和整個公司，採用新的更新流程、程序和控制，並對我們的 ERP 系統實施最新的軟體升級。如您所知，在 24 年，我們修復了三到四個歷史重大缺陷，我們仍然相信最後一個缺陷將在 25 年得到修復，因為大部分工作已經完成，只需要進行測試。

Two comments on capital allocation, the company is going through a tender process to convert its outstanding warrants into equity on a 1 share to 10 warrant basis. The company anticipates that this will be completed over the coming months as it goes through its regulatory processes. The warrant conversion is the clear up the capital structure and remove the overhang of originating from the spec.

關於資本配置的兩點評論，該公司正在進行招標程序，以 1 股兌 10 份認股權證的比例將其未償認股權證轉換為股權。該公司預計，隨著監管流程的推進，這項進程將在未來幾個月內完成。認股權證轉換是為了釐清資本結構，消除源自投機的負擔。

For the short-term future, due to market volatility, the company will continue to use this excess cash flow to continue to pay down debt. However, the strength of our balance sheet gives us flexibility on our growth plans. And should market conditions change drastically from our current outlook, we certainly could evaluate other capital allocation alternatives, including returns.

就短期而言，由於市場波動，公司將繼續利用這筆超額現金流繼續償還債務。然而，我們強勁的資產負債表為我們的成長計畫提供了靈活性。如果市場狀況與我們目前的前景相比發生巨大變化，我們當然可以評估其他資本配置方案，包括回報。

We'll update on this topic as the year progresses as we continue to receive in discuss all investor feedback. The outlook for most of the Middle East and North Africa region remains favorable as we've just outlined. Upstream spending remains durable, 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.

隨著我們繼續收到並討論所有投資者的回饋，我們將隨著時間的推移更新此主題。正如我們剛才概述的那樣，中東和北非大部分地區的前景仍然樂觀。上游支出依然持久，NESR 繼續專注於其既定目標，即實現盈利收入成長、執行效率、技術擴展、債務削減和營運資本效率，以推動未來財務績效。

On behalf of management, I'd like to thank our entire workforce for their outstanding efforts in delivering these results, together with our directors, shareholders, and bank consortium for their continued support of future. The future for NESR continues to look good.

我謹代表管理階層感謝我們全體員工為實現這些成果所做的傑出努力，並感謝我們的董事、股東和銀行財團對未來的持續支持。NESR 的未來前景仍然光明。

Now I turn the call back to Sherif.

現在我把電話轉回給 Sherif。

Thanks, Stefan. Let me conclude by reiterating the key takeaways from the quarter and our outlook. First, while the market came into the year with extremely low expectation for the sector and while the commodity backdrop remains uncertain, we believe that MENA upstream activity will remain a relative bright spot for growth. The gas development theme is central to this year.

謝謝，史蒂芬。最後，我想重申本季的主要收穫和我們的展望。首先，儘管市場對今年該行業的預期極低，而且大宗商品背景仍不確定，但我們相信，中東和北非地區的上游活動仍將是成長的相對亮點。天然氣開發是今年的主題。

Although competitive, contracts in our business bring multi-year visibility to the company, and overall profitability remains healthy as the sector remains disciplined. With first quarter slowest impacted by fewer operating days and the full month of Ramadan in March, followed by a slower sequential activity build through the year. Overall, our '25 growth outlook for NESR relative to the market remains unchanged.

儘管競爭激烈，但我們業務中的合約為公司帶來了多年的可見性，並且由於該行業保持紀律，整體盈利能力仍然保持健康。第一季受營運天數減少和三月整個齋戒月的影響最為緩慢，隨後全年活動成長速度也隨之放緩。總體而言，我們對 NESR 相對於市場的 25 年成長前景保持不變。

Second, with the solid MENA backdrop, NESR is extremely well positioned to outperform due to one, favorable project exposure particularly related to the broadband gas development; two, our strategic positioning in areas such as Kuwait, which are expect added to lead the growth on a percentage basis; third, our frontier technology growth leg remains on track with pilot success in ROYA now duplicated in other country and our unique NEDA positioning and investment in produced water mirroring the announcement and commitment recently made by our largest customer and cross-industry partner. Whereas ROYA is expected to be a more linear driver of growth from here, NEDA and our water business represents massive potential that is being defined in real time, but nevertheless remains a long-term strategy with expected catalysts this year.

其次，憑藉堅實的中東和北非背景，NESR 具備極佳的市場定位，能夠跑贏大盤，原因如下：一是項目曝光度良好，尤其與寬頻天然氣開發相關；二是我們在科威特等地區的戰略定位，預計這些地區將引領增長百分比；三是我們的前沿技術增長之路依然順利，我們在 ROYA 的試點成功，現在已在其他國家複製成功，現在已成功，現在的獨特定位和對採出水的投資與我們最大的客戶和跨行業合作夥伴最近宣布和做出的承諾相呼應。儘管 ROYA 預計將成為未來更線性的成長驅動力，但 NEDA 和我們的水務業務代表著巨大的潛力，雖然這一潛力正在即時定義，但仍是一項長期策略，預計今年將出現催化劑。

I'd like to close by thanking all our employees, their families, for a strong resilience and start of the year and wish them happy Eid that is just around the corner and thank our partners, shareholder, and valued customer for their continued support and belief in NESR.

最後，我要感謝我們所有的員工和他們的家人，感謝他們堅強的韌性和新的一年的開始，並祝他們即將到來的開齋節快樂，並感謝我們的合作夥伴、股東和尊貴的客戶對 NESR 的持續支持和信任。

And with that, I'd like to pass over the call to the operator for your questions. Kevin?

說完這些，我想把電話轉給接線員，以便回答您的​​問題。凱文？

Thank you. We will now be conducting a question-and-answer session. (Operator Instructions)

謝謝。我們現在將進行問答環節。（操作員指示）

David Anderson, Barclays.

巴克萊銀行的大衛安德森。

Thank you. Good morning, Sherif. So as you said during your remarks, there has always been a disconnect between upstream spending in Saudi and volumes OPEC and Azure subtracts to the market. But I'm just wondering if this shows a little bit different this time.

謝謝。早安，警長。因此，正如您在演講中所說的那樣，沙烏地阿拉伯的上游支出與 OPEC 和 Azure 對市場的減量之間一直存在脫節。但我只是想知道這次是否有一些不同。

We've seen Saudi cutting oil rigs for most of last year while keeping supply out of the market. And now this year, we are starting to see barrels coming back. And I'm wondering how you think the sort of -- the interplay with upstream spending now with the company going forward here.

我們看到沙烏地阿拉伯在去年大部分時間都在削減石油鑽井數量，同時抑制市場供應。今年，我們開始看到石油產量回升。我想知道您如何看待上游支出與公司未來發展的相互作用。

It sounds like you're expecting the market to softened up a little bit more here. I'm just wondering, are we getting to a close-to-the-study rig floor, and could we see Saudi activity in second half of the year pick up if you add in unconventionals and should you continue to see growth in mid-'26? Just a little help on terms of what we're seeing on the ground here in Saudi. Thank you.

聽起來您預期市場會進一步走軟。我只是想知道，我們是否正在接近研究鑽井平台，如果增加非常規資源，我們是否會看到沙烏地阿拉伯在下半年的活動回升，並且是否應該在 26 年中期繼續看到成長？就我們在沙烏地阿拉伯當地看到的情況而言，這只是一點幫助。謝謝。

Thanks, David. So if you split Saudi into two category, which is unconventional on its own and the rest of the country, which is basically oil and gas offshore and onshore, this will continue to draw. So you're going to have a softened -- I don't think they're going to pick up anything in the second half of this year.

謝謝，大衛。因此，如果將沙烏地阿拉伯分為兩類，一類是本身非常規油氣資源，另一類是基本上是海上和陸上石油和天然氣的其他國家，那麼這種吸引力將繼續保持。所以你會看到——我認為他們在今年下半年不會取得任何進展。

I would see, obviously, depending on how much oil they put and how much production the world needs, then you might see rigs being picked up in '26. On the unconventional front, it's going as planned, no difference whatsoever. They are increasing rigs. The added more rigs. They are going to frac crews, and that plan is intact. It's not touched.

我認為，顯然，這取決於他們開採了多少石油以及世界需要多少產量，然後你可能會看到鑽井平台在 26 年被回收。在非常規方面，一切都按計劃進行，沒有任何區別。他們正在增加鑽孔機。增加了更多的鑽孔機。他們將派出壓裂隊，並且該計劃完好無損。沒有被碰過。

So you are going to have a drop -- more drop of oil rigs, more drop of even conventional gas rigs and then pick-up in unconventional. So overall, Saudi, yes, will -- is softer than what we expected a quarter ago because obviously, again, they have that ability to put back production without adding anything. They still have a couple of million barrel of spare capacity, right?

因此，你將會看到石油鑽井數量進一步下降，甚至常規天然氣鑽井數量也進一步下降，然後非常規鑽井數量將會回升。因此，總體而言，沙烏地阿拉伯的產量比我們一個季度前預期的要弱，因為顯然，他們有能力在不增加任何產量的情況下恢復產量。他們仍然有幾百萬桶的閒置產能，對嗎？

(technical difficulty) channels enough to offset the declines at least in your business for the second half of the year? I know everybody has got a different mix. I'm just curious about own mix and how -- I know there's a bunch of contract awards are waiting on Jafurah. How does that sort of factor in to the mix of your business in Saudi? So would you -- is that part of the reason why you're expecting to outperform in the market?

（技術難度）通路足以抵銷至少下半年業務的下滑嗎？我知道每個人都有不同的組合。我只是對自己的組合以及如何——我知道有很多合約獎勵在等待 Jafurah。這些因素對您在沙烏地阿拉伯的業務組成有何影響？那麼，這是您期望在市場上表現優異的原因之一嗎？

Yeah. Obviously, we are more exposed to gas and more exposed to [Regulus], and that's not being affected so far. The unconventional, as you rightly said, is going to be a huge catalyst. So depending on the award, yes, definitely people -- some people will really outperform and some will not.

是的。顯然，我們更多地接觸氣體，更多地接觸[軒轅十四]，但到目前為止還沒有受到影響。正如您所說，非常規事物將成為一個巨大的催化劑。所以，根據獎項的不同，是的，肯定有人——有些人的表現會非常出色，而有些人則不會。

So if a company is not in the gas at all or is not in unconventional, they will definitely see almost 20% drop year on year, right? So we believe that we will be in a solid position overall, and then it will be seen, obviously, with the tender result. But we still believe that Saudi will grow year on year.

所以，如果一家公司根本不從事天然氣業務，或者不從事非常規業務，那麼他們的收入肯定會比去年同期下降近 20%，對嗎？因此，我們相信，我們總體上將處於穩固的地位，然後顯然可以透過招標結果來判斷。但我們仍然相信沙烏地阿拉伯將逐年成長。

Those tender results, when should we be expecting to see those? Should those be (multiple speakers) soon?

我們什麼時候可以看到這些招標結果？這些應該很快就會是（多個發言者）嗎？

Next quarter.

下個季度。

So if I could add one more in here for Stefan. Stefan, I know the margins came down a bit more first quarter. I recognize it's a seasonal component here, but you also talked about rightsizing the cost structure and reallocating equipments.

因此我可以在這裡為 Stefan 再添加一個。史蒂芬，我知道第一季的利潤率有所下降。我知道這是一個季節性因素，但您也談到了調整成本結構和重新分配設備。

I'm just curious how much is that weighing on kind of margins today? And can you get back to 25% margins by year end? And just kind of curious, looking at last year's margin progression versus this year, can you get back to the same margins or is that going to take a little bit more time based on the cost structure?

我只是好奇這對今天的利潤率有多少影響？到年底，您的利潤率能恢復到 25% 嗎？只是有點好奇，看看去年與今年的利潤率成長，你能恢復到相同的利潤率嗎？或根據成本結構，這是否需要更多時間？

Thank you.

謝謝。

Hey, David. Yes, it will take more time, right? We will not get back to an exit rate of 25%, right? I would say that for the full year, we will probably be maybe 100 to 200 basis points less than what we ended last year with.

嘿，大衛。是的，這需要更多時間，對嗎？我們不會回到25%的退出率，對嗎？我想說，就全年而言，我們的利潤可能會比去年年底低 100 到 200 個基點。

Going to the cost reduction, right, the amount that we're looking at probably should add 100 to 150 basis points to our results from Q1.

就成本削減而言，我們所考慮的金額可能會為我們第一季的業績增加 100 到 150 個基點。

Okay. So if you can kind of recover that in '26 states, is that what you mean by that?

好的。那麼，如果你們可以在 26 個州恢復這一點，這就是你們的意思嗎？

That's our goal is to recover -- is we get back to 25% in '26.

我們的目標是恢復——到 26 年恢復到 25%。

Arun Jayaram, JPMorgan Chase.

摩根大通的阿倫‧賈亞拉姆 (Arun Jayaram)。

Good morning. Sherif, you characterize what you're seeing is a resetting of the cycle with the market in transition. I was wondering if you could comment on how you're seeing pricing trends broadly within the Middle East and maybe how the reduction on the conventional activity in Saudi is impacting these overall trends in pricing.

早安.謝里夫，您認為您所看到的是市場轉型過程中週期的重新調整。我想知道您是否可以評論您如何看待中東地區的整體價格趨勢，以及沙烏地阿拉伯常規活動的減少如何影響整體價格趨勢。

Thanks, Arun. So, look, as we have seen before, large tenders with the long cycle or long duration tends to get, I would say, less disciplined. Let's put it this way, right? And so if you get a big contract that is going to be defining for some countries, yes, you will see some pricing drop.

謝謝，阿倫。所以，正如我們之前所看到的，我認為，週期長或持續時間長的大型招標往往會變得缺乏紀律。這麼說吧，對吧？因此，如果你獲得了一份對某些國家具有決定意義的大合同，是的，你會看到價格有所下降。

Definitely, the expectation as we go along the cycle, similar to '15 and '16, the tenders that are coming are going to get softer, right? So the pricing people will -- because you'll have some capacity, people will start to get nervous, so then you're going to get some pricing a loss, right?

毫無疑問，隨著週期的推進，我們預計與 2015 年和 2016 年類似，即將到來的招標將會變得更加溫和，對嗎？因此定價人員會——因為你有一定的產能，人們會開始緊張，所以你會得到一些定價損失，對嗎？

I keep saying that before the Middle East never had a pricing gain, anyway. It was a slightly a bit gain because all these contracts are characterized by long term. And you are not big chunk of the cost of the production per barrel, right?

我一直說，中東之前從來沒有出現過價格上漲。這是一個略微的收益，因為所有這些合約都是長期的。而且你不是每桶生產成本的很大一部分，對嗎？

So if they don't tend to -- so I would say this pricing will get overall softer than '24.

因此，如果他們不傾向於這樣做——那麼我想說，這個定價總體上會比 24 年更軟。

Got it. Okay. And maybe you can elaborate on your growth opportunities within [28]. Sounds like you're tendering for a lot of upcoming work, but gives us a sense of what specifically you see in that market. I assume that's what's supporting your expectations of -- your view of revenue growth in '25 and '26?

知道了。好的。也許你可以詳細說明一下你的成長機會[28]。聽起來您正在投標很多即將到來的工作，但讓我們了解一下您在該市場中具體看到了什麼。我認為這就是您對 25 年和 26 年收入成長的預期的支持因素？

Yeah. Obviously, again, size matters. So our size is, again, relatively much smaller than the big three. So Kuwait is basically tendering everything, tendering the entire ecosystem of contracts because definitely they are going to be almost -- the rig count in Kuwait will be the same like Saudi, right? So they have to add capacity. They have to have new players. They have to make sure that they have another five years of contract signed.

是的。顯然，尺寸再次重要。因此，我們的規模相對而言比三大巨頭小得多。因此，科威特基本上招標了所有東西，招標了整個合約生態系統，因為它們肯定會幾乎——科威特的鑽井數量將與沙烏地阿拉伯相同，對嗎？所以他們必須增加產能。他們必須引進新球員。他們必須確保簽署另外五年的合約。

So we already tendered several of those. And we announced a couple, and a couple are coming on the way as well. And then we are tending everything. So that's meaning cementing and coiled tubing, fracturing, directional drilling, through-tubing, testing, everything. Every single business in Kuwait has been tendered. And all these tenders will be done by the end of the year.

我們已經投標了其中的幾個。我們已宣布了一些計劃，還有一些計劃即將推出。然後我們照顧一切。這意味著固井、連續油管、壓裂、定向鑽井、過油管、測試等等一切。科威特的每一項業務都已進行招標。所有這些招標都將於今年年底完成。

So if you look back at our size, NESR, we didn't even exist five years ago. So now we have a very strong position. And I think that's why I keep saying, I think by next year, this will be our second-largest country. And obviously, if we win much more, then we can even accelerate that growth. And the other countries are tendering as well, right. So we have the separate tenders going around, and definitely the biggest one is (technical difficulty)

因此，如果回顧一下我們的規模，NESR，我們五年前甚至還不存在。所以現在我們擁有非常強勢的地位。我想這就是為什麼我一直說，我認為到明年，我們將成為第二大國家。顯然，如果我們贏得更多，那麼我們甚至可以加速這種成長。其他國家也在投標，對吧。因此，我們有單獨的招標，其中最大的一個肯定是（技術難度）

Greg Lewis, BTIG.

格雷格·劉易斯（Greg Lewis），BTIG。

Hey. Thank you and good morning, everybody, and thanks for taking my question. Sherif, I was hoping -- you kind of made some comments around several million dollars of contracts in North Africa. Just kind of curious how we should be thinking about potential timing of some of those contracts coming to fruition and maybe what's kind of like a decent -- what would you kind of characterize as a success in bidding on those. Realizing they will be somewhat competitive, i.e., do we think we can win a third of those? Just trying to understand a little bit better what happening?

嘿。謝謝大家，早安，謝謝你們回答我的問題。謝里夫，我希望——您對北非數百萬美元的合約發表了一些評論。只是有點好奇我們應該如何考慮其中一些合約實現的潛在時機，也許什麼樣的合約才算體面——你會如何描述競標這些合約的成功。意識到他們會有一定的競爭力，也就是我們認為我們能贏得其中的三分之一嗎？只是想更了解發生了什麼事？

So most clients, actually, use always the downturn opportunity to tender, right? Because obviously smart, right? They know that everybody is hungry. Everybody wants to get a piece of the contract.

所以實際上大多數客戶總是利用經濟低迷的機會進行投標，對嗎？因為顯然很聰明，對吧？他們知道每個人都餓了。每個人都想從合約中分得一杯羹。

So North Africa is no different. The only thing, obviously, is there is a time when the contracts expire and then the tender. So if you look at but more specifically like for example, Algeria is very, very fixed with timing. They have like a tender board, [boasem], et cetera. And all these things are happening as we speak.

北非也不例外。顯然，唯一的問題是，合約有到期日，然後進行招標。因此，如果你更具體地看一下，例如，阿爾及利亞的時間安排非常非常固定。他們有類似投標板、[boasem] 等等的東西。所有這些事情都在我們說話的時候發生。

So to answer your question, the second half, all this conference will be awarded. So you're talking about in the next quarter, we will know exactly out position. You will know you've got more, how much you got less. And then the stuff that you are not part of it now, which is again, that's why I keep trying to explain, your small size matters. If you are 10% of the market, and you win 25% contract, that means you are going to grow definitely, because you're going to drive to the 25% market share overall, right?

所以回答你的問題，下半場，整個會議都會有獎勵。所以您說的是下個季度，我們會確切地知道我們的狀況。你會知道你擁有的更多，你擁有的更少。然後你現在不再是其中的一部分，這也是我一直試圖解釋的原因，你的小尺寸很重要。如果你佔據了 10% 的市場份額，並且贏得了 25% 的合同，那就意味著你肯定會成長，因為你將推動整體市場份額達到 25%，對嗎？

And that's our aim is some of these countries that you get to the sizeable position. So I would say, second half, you will see a lot of these awards happening. And if I move to Libya, which is a country where security always obviously is the biggest hurdle, but the capacity of the service is very small or very limited, right? And the country always since the beginning of the year, especially, they aim to increase their production capacity to go to 1.6 million barrels.

我們的目標是讓其中一些國家取得相當大的地位。所以我想說，下半年，你會看到很多這樣的獎項。如果我搬到利比亞，這個國家的安全顯然一直是最大的障礙，但服務能力卻非常小或非常有限，對嗎？自今年年初以來，該國一直致力於將產能提高到 160 萬桶。

So they went from 800,000 to 1.2 million to 1.4 million. Now they are aiming at 1.6 and the target is 2 million barrel in three years. To be able to do that, they need to add rigs. They need to add capacity. They need to add frac crews. They need to add coil tubing. They need to add cementing, services, downhole tools. So all this needs a lot of services.

因此，他們的人數從 80 萬增加到了 120 萬，再增加到了 140 萬。現在他們的目標是160萬桶，三年內達到200萬桶。為了做到這一點，他們需要增加鑽孔機。他們需要增加產能。他們需要增加壓裂人員。他們需要添加盤管。他們需要增加水泥、服務和井下工具。所以這一切都需要大量的服務。

So it's actually not -- the tender is not the biggest hurdle; it's actually the capability of people to get equipment into Libya and be able to operate there within the security framework which is, obviously -- we are aiming to do that. And we already have a couple of segments in the country today working that never existed before.

所以實際上，招標並不是最大的障礙；最大的障礙實際上是人員是否有能力將設備運進利比亞，並能在安全框架內在那裡開展行動，顯然，我們的目標就是做到這一點。目前，我們在國內已經開展了幾個以前從未有過的業務。

So Libya, for us, is not going to be an incremental; it's going to be doubling, right? So we should double and triple the size of the company because we are very, very small there, right? But the country is going to invest heavily.

所以，對我們來說，利比亞問題不會是漸進式的，而是會加倍，對嗎？所以我們應該將公司規模擴大一倍甚至三倍，因為我們的規模非常小，對嗎？但國家將投入巨資。

Egypt is more of a stable -- very, very stable. I don't think we're going to have a very big up or down, but we are stable. Our market share position is quite strong now, and we aim, again, to win our fair share of contracts. So if I look at North Africa overall, definitely, I would say we can double our market share as a percentage by next year.

埃及比較穩定——非常非常穩定。我認為我們不會有很大的上漲或下跌，但我們是穩定的。我們的市場份額現在相當強大，我們再次致力於贏得公平的合約份額。因此，如果我從整體上看北非，我肯定會說，到明年我們的市場份額可以翻倍。

Thank you. Next question today is coming from (technical difficulty)

謝謝。今天的下一個問題來自（技術難度）

Hey, good morning. I just wanted to maybe expand on your comment around never miss an opportunity for a downturn and what that could mean for your portfolio. Recently, we've seen JVs form with large, diversified players as they optimize their portfolio.

嘿，早安。我只是想進一步闡述您的評論，不要錯過經濟衰退的機會，以及這對您的投資組合意味著什麼。最近，我們看到大型多元化企業在優化投資組合的同時，也成立了合資企業。

So you've seen Baker and Cactus yesterday, the Surface Pressure Control, [summer day], ADNOC drilling the Middle East land rigs in Oman and Kuwait. Just maybe first wanted to get your take on these types of deals that we're seeing, what it means for the Middle East region? And also could this be a potential NESR pursues as you think about scaling your overall business in the region?

所以你昨天看到了 Baker 和 Cactus，表面壓力控制，[夏日]，ADNOC 在阿曼和科威特的中東陸地鑽井平台上進行鑽探。首先我想了解您對我們所看到的這類交易的看法，這對中東地區意味著什麼？當您考慮擴大該地區的整體業務時，這是否也是 NESR 追求的潛力？

Yeah. Obviously, I cannot tell you exactly what we are going to do, but we have plans. But I would say when you have this downturn, I think first of all, ourself, we counter invest. So we actually -- we are heavily into the cycle because we know that our Middle East will be strong, but the sentiment will be negative. But we're going to invest heavily.

是的。顯然，我無法確切地告訴你我們要做什麼，但我們有計劃。但我想說，當遇到這種經濟衰退時，我認為首先，我們自己要進行反向投資。因此，我們實際上——我們深深地陷入了這個週期，因為我們知道中東將會強大，但情緒將是消極的。但我們將投入大量資金。

And then adding CapEx, adding equipment, we know some contracts that we have, we can gain significant market share where people have no access to that market. So I would say some of the move that you see lately is people buying access to the Middle East and sometimes not in a very pricey weight. We don't need to do that. We have the best position in the Middle East in terms of relationship and market footprint.

然後增加資本支出，增加設備，我們知道我們擁有的一些合同，我們可以在人們無法進入的市場中獲得顯著的市場份額。所以我想說，最近你看到的一些舉動是人們購買進入中東的通道，有時價格並不太高。我們不需要這麼做。我們在關係和市場足跡方面在中東擁有最佳地位。

So now for us is really to make sure that we know which clients are investing, which clients are growing, which we know very, very, very well. And we have the core base of contracts and the infrastructure to add service. So for example, if we have like we say, one of the countries like for example, in Kuwait, where basically we know that we are tendering a lot of contracts, we need to have like is very solid infrastructure, this country is going to grow 5%, 6%, can I grow 25%, right? Can I get all these contracts and invest and be a very serious player in multiple segments?

所以現在我們真正要確保的是我們知道哪些客戶在投資，哪些客戶正在成長，我們對此非常非常了解。我們擁有合約的核心基礎和添加服務的基礎設施。舉個例子，如果我們像我們說的那樣，比如科威特這樣的國家，我們知道我們正在招標很多合同，我們需要有非常堅實的基礎設施，這個國家將增長 5%、6%，我能增長 25% 嗎？我能否獲得所有這些合約並進行投資並成為多個領域的真正參與者？

And that's our plan because we have the infrastructure now. We have a very good relationship with the client. And that's basically -- when I say when everybody else is shrinking and everybody else is cutting, everybody else is firing people, we are going to invest and grow. So then we're going to be a counter cycle to the Middle East.

這就是我們的計劃，因為我們現在有了基礎設施。我們與客戶的關係非常好。基本上就是——當我說當其他人都在縮減規模、削減開支、裁員時，我們卻要投資並發展。因此，我們將進入與中東相反的循環。

So I see that this is an opportunity for us in the next 12 to 18 months to be significant market share player. And as we always said, we want to be a clear top three to be in every segment in the countries where we operate, which is similar today. We have [34] segments where we are almost number one in the Middle East as a market positioning, and that's our aim in this cycle.

因此，我認為這對我們在未來 12 到 18 個月內成為重要市場份額參與者來說是一個機會。正如我們一直所說的那樣，我們希望在我們開展業務的國家的每個領域都名列前三，今天的情況也是如此。我們在 [34] 個細分市場中幾乎佔據中東第一的市場地位，這也是我們本輪週期的目標。

Saurabh Pant, Bank of America.

美國銀行的 Saurabh Pant。

Hey. Good morning, Sherif and Stefan. Good, Sherif, it's a little contrasting how you talk about a downturn, resetting of the cycle yet NESR is growing and, obviously, a large part of it as market share investment in frontier technology. But just to help us compare and contrast to refer the scale of your outperformance, maybe talk a little bit to the underlying market. What's going on?

嘿。早上好，Sherif 和 Stefan。很好，Sherif，這與你談論的經濟衰退、週期重置有點對比，但 NESR 正在成長，而且顯然其中很大一部分是作為前沿技術的市場份額投資。但只是為了幫助我們進行比較和對比，以了解您的優異表現的規模，也許可以稍微談談基礎市場。這是怎麼回事？

Maybe you want to talk Middle East more broadly, Saudi specifically, however, you want to address that. But maybe just compare and contrast the overall market versus NESR just to help us understand the scale of your outperformance.

也許您想更廣泛地談論中東問題，特別是沙烏地阿拉伯問題，但您想解決這個問題。但也許只需將整體市場與 NESR 進行比較和對比，就能幫助我們了解您的優異表現的規模。

Yeah, sure. As I explained in my prepared remarks, the GCC, overall, will be stable to slightly up, except Saudi that is going to be down. That's in a nutshell, the story. North Africa and Iraq will be stable to up.

是的，當然。正如我在準備好的演講中所解釋的那樣，海灣合作委員會總體上將保持穩定或略有上升，只有沙烏地阿拉伯除外，沙烏地阿拉伯將下降。簡而言之，這就是故事。北非和伊拉克將穩定至上升。

So overall, markets in the Middle East will be up, but it's not going to be up, as we said before, or as expected before the oil price drop and the whole tariff and geopolitical. We said, it's going to be 6% to 8%, and we're going to double that, I think different to all the others.

因此，總體而言，中東市場將會上漲，但不會像我們之前所說的那樣上漲，也不會像油價下跌、整個關稅和地緣政治之前預期的那樣上漲。我們說過，這個數字將是 6% 到 8%，而我們要將其翻一番，我認為這與所有其他公司都不同。

And I think if I talk more specific and please -- then Kuwait is definitely going to be the biggest growth year over year because of the added rigs and added capacity because they want to go to the 4 million by 2040. The other guys are almost at the reach of the capacity. So then they aren't just going to add some activity. And some others will be totally flat, stable without.

我認為，如果我說得更具體一些，那麼科威特肯定會成為同比增長最快的國家，因為增加了鑽機數量和產能，他們希望在 2040 年達到 400 萬。其他人也幾乎達到了容量極限。所以他們不只是要增加一些活動。而其他一些則會完全平坦，沒有它就穩定。

The only one that is really dropping rigs in Saudi because they can, right? They have the capacity. They can produce another 2 million barrel without doing anything, right, so -- except the unconventional project that is going to grow. And that's really the characteristic over all the countries.

唯一一個真正在沙烏地阿拉伯放棄鑽井平台的國家是因為他們有能力這樣做，對吧？他們有能力。他們無需做任何事情就可以再生產 200 萬桶，對吧，所以——除了將要增長的非常規項目。這確實是所有國家的特徵。

I think the one that is kind of some of a wildcard will be the security-related country. So Libya is a very, again, very aggressive growth target. Depending on security, depending on the geopolitics, this plan might get pushed back as if nothing is going to -- the security would be fine. We know how to operate, obviously, in a tight situation different than others, which is -- give us the advantage of knowing the place inside out.

我認為，有點不確定的因素是與安全相關的國家。因此，利比亞是一個非常、非常積極的成長目標。根據安全情況和地緣政治因素，該計劃可能會被推遲，好像什麼事都不會發生——安全問題不會有任何問題。顯然，我們知道在緊急情況下如何採取不同於其他人的行動，這讓我們擁有對情況瞭如指掌的優勢。

And that's -- if you have more specific, obviously, I can dwell on it, but I think I don't want just to repeat the prepared remarks. But I tell you the unconventional Kuwait will be the strongest growth year over year. And if the market in the Middle East, overall, you can say is 2%, 3%, maybe -- flat to 2%, 3% up. And that's why we are confident we can still easily obviously double that rate and make much more depending obviously on the contract awards that we wouldn't know in the coming quarter between Kuwait and Saudi and North Africa.

那就是——如果你有更具體的問題，顯然我可以詳細討論，但我認為我不想只是重複準備好的發言。但我告訴你，非傳統的科威特將實現逐年最強勁的成長。如果是中東市場，整體而言，你可以說成長 2%、3%，或許持平或成長 2%、3%。這就是為什麼我們有信心，我們仍然可以輕鬆地將這一比率翻一番，並賺取更多利潤，這顯然取決於我們在下一季不知道的科威特和沙特及北非之間的合約授予情況。

Okay. Perfect. Sherif, I think I got it. Rates are flat to up a little bit, and you should be growing at double that right? That's the expectation. So that's how you are outperforming.

好的。完美的。警長，我想我明白了。利率持平或略有上升，而你的成長率應該翻倍，對嗎？這就是我們的期望。這就是你的出色表現。

Perfect. And then just a quick follow-up, Sherif, on obviously, Saudi is seeing pressure, but Kuwait, on the other hand, is probably the best market UAE is growing. How easy it, Sherif, for you or for the industry in general to move capacity equipment, in this case, Saudi going down rigs or other service capacity from, let's say, Saudi -- I'm using that as an example -- to Kuwait? So how easy or not is it to move capacity from one country to the other within the Middle East?

完美的。然後快速跟進一下，謝里夫，顯然，沙烏地阿拉伯正面臨壓力，但另一方面，科威特可能是阿聯酋正在成長的最佳市場。謝里夫，對於您或整個產業來說，轉移產能設備有多容易？在這個例子中，沙烏地阿拉伯將鑽井平台或其他服務能力從沙烏地阿拉伯——我以此為例——轉移到科威特？那麼在中東地區，將產能從一個國家轉移到另一個國家有多容易呢？

Very easy. So within the Middle East, it is very easy. Obviously, again, I keep saying that for the people that know the Middle East, it is very easy. For the people that do not know the Middle East, it is very complicated, which I like it.

非常簡單。因此在中東地區，這非常容易。顯然，我再次強調，對於了解中東的人來說，這很容易。對於不了解中東的人來說，它非常複雜，我喜歡這一點。

We want -- for someone in the US that does not know the Middle East, it is an impossible task. It's almost like a very, very hard. For us, it's a matter of couple of weeks, as simple as that.

我們希望──對於不了解中東的美國人來說，這是一項不可能的任務。這幾乎是非常非常困難的。對我們來說，這只是幾週的事情，就這麼簡單。

So now the key for us, as we said, is you have to have a base of contracts. You have to have all the legal entity, the infrastructure, the approval, et cetera. So I think newcomer to the Middle East, it is impossible now, put it this way. It's the current players in there, and the people that know the place inside out.

因此，正如我們所說，現在對我們來說關鍵是你必須擁有一份合約基礎。你必須擁有所有法律實體、基礎設施、批准等等。所以我認為新來者到中東，現在是不可能的，可以這麼說。他們是那裡的現有球員，以及對這個地方瞭如指掌的人。

And that's why to our strategy of being open platform for innovation. We have a lot of partners. So today, for the some of the work that, for example, we are doing in Kuwait with Innovation Valley and some of the pilot project, we are talking to dozens of clients and partners in the US. We know that they have very good stuff that would work in that field.

這就是我們的開放創新平台策略的原因。我們有很多合作夥伴。因此今天，對於我們在科威特與創新谷開展的一些工作和一些試點項目，我們正在與美國的數十位客戶和合作夥伴進行洽談。我們知道他們擁有可以在該領域發揮作用的非常好的東西。

And obviously, here, as I call it, the marriage is a very simple one because I have the infrastructure. I have the contract. I have the facility. They have a unique technology, let's say, in Canada or the US or Europe. I bring that over there; they don't need to spend any money because I have everything. And I secured the contract and then we ship.

顯然，正如我所說，這裡的婚姻非常簡單，因為我有基礎設施。我有合約。我有這個設施。他們擁有獨特的技術，例如在加拿大、美國或歐洲。我把它帶到那裡；他們不需要花任何錢，因為我擁有一切。我簽訂了合約然後我們發貨。

So this is a very good model for me, because I don't need to invest in the technology and a very good model for them because they cannot even operate there. It's almost impossible. So more of these, and that's why we are quite, I would say, confident and happy to enter this market with a fast pace.

所以這對我來說是一個非常好的模式，因為我不需要投資技術，對他們來說也是一個非常好的模式，因為他們甚至無法在那裡運作。這幾乎是不可能的。所以還有更多這樣的產品，這就是為什麼我們非常有信心並且樂意快速進入這個市場。

And we can mobilize equipment from US with the downturn happening. I think the US is going to get much worse. So there will be a lot of equipment available to mobilize. And obviously, if you have a partner, you can mobilize it easily.

當經濟不景氣時，我們可以從美國調動設備。我認為美國的情況會變得更糟。因此將會有大量的設備可供調動。顯然，如果你有一個合作夥伴，你可以輕鬆地調動它。

So that's really our whole aim. And then again, I say, don't miss the opportunity of the downturn, because that's the opportunity. I get all this equipment; I can mobilize it and deliver without spending CapEx or technology. And then I just need to secure the contracts, which we are working on.

這確實是我們的全部目標。我再說一遍，不要錯過經濟衰退的機會，因為那就是機會。我得到了所有這些設備；我可以調動它們並交付，而無需花費資本支出或技術。然後我只需要確保我們正在進行的合約。

Jeff Robertson, Water Tower Research.

傑夫·羅伯遜，水塔研究公司。

Thank you. Good morning. Sherif, with respect to ROYA, can you talk a little bit about our progress towards further commercialization? And really, where do you see the greatest opportunity for contract awards for that platform over the next probably incremental to the ones you've already announced?

謝謝。早安.Sherif，關於 ROYA，您能談談我們在進一步商業化方面的進展嗎？實際上，您認為該平台在未來的合約授予中最大的機會在哪裡（可能比您已經宣布的合約有所增加）？

So our ROYA platform is -- let's put it this way, we have three distinguished technology: MWD, LWD, and RFS. So I think we're going to commercialize first, our MWD, which is -- it's basically enabler to be able to do the other services. But as well, then we stop renting or taking some of our partner stuff. And then you have the LWD, the logging while drilling, which commercialize after an RFS, where what we call the deliberate extensive testing.

所以我們的 ROYA 平台是——這麼說吧，我們有三種獨特的技術：MWD、LWD 和 RFS。因此，我認為我們將首先實現 MWD 商業化，這基本上可以推動其他服務的發展。但同時，我們也停止出租或拿走一些合作夥伴的東西。然後你就有了 LWD，即隨鑽測井，它在 RFS 之後實現商業化，我們稱之為有意廣泛的測試。

So today, we have contracts in three countries: Saudi, Oman, and Kuwait. Honestly, we are not planning to have more contract in the short term because what we want is we want to do the deliberate testing of all these extensive, commercialize them, and run these three contracts professionally. These are plenty of services for us before we go and scout for others.

所以今天，我們在三個國家簽訂了合約：沙烏地阿拉伯、阿曼和科威特。老實說，我們短期內不打算簽訂更多合同，因為我們想要的是對所有這些廣泛的項目進行深思熟慮的測試，將其商業化，並專業地運行這三個合同。在我們去尋找其他服務之前，這些已經為我們提供了足夠的服務。

So today we get some invitation from other. Obviously, we're going to tender, but we want to deploy first into those three countries to make sure that the tool are commercial, are reliable, are credible. And then we have a track record.

所以今天我們收到了其他人的邀請。顯然，我們將進行招標，但我們希望首先部署到這三個國家，以確保該工具具有商業性、可靠性和可信度。然後我們就有了記錄。

Just to give you numbers, again, for people to understand, this is a couple of billion dollars of a market. So for us to take in our 5% or 10% of that is quite significant for us, right? And that's why it's a homegrown technology, which is the only thing really, we are investing in. And that's why as a technology or R&D beside the NEDA story, and we need to make sure that this is properly commercialized.

再次給出一些數字，讓人們明白，這是一個價值數十億美元的市場。所以對我們來說，吸收其中的 5% 或 10% 已經相當重要了，對嗎？這就是為什麼它是一項自主研發的技術，也是我們唯一投資的東西。這就是為什麼作為 NEDA 故事之外的技術或研發，我們需要確保它得到適當的商業化。

Today, we are in what I call the extensive testing phase, which is basically we run the tools. We run a lot of it. So like we did in Saudi, we did in Oman, we get back the tools. We do something called destructive that we break them basically to know what is the footage, what's the reliability, and then we put them back.

今天，我們正處於我所說的廣泛測試階段，基本上就是運行工具。我們運行了很多。就像我們在沙烏地阿拉伯、阿曼所做的那樣，我們拿回了工具。我們進行了一些稱為破壞性的工作，我們將它們破壞，以便了解哪些是鏡頭，哪些是可靠的，然後我們將它們放回原位。

Maybe we do some little design changes like change a thread or make something stronger, send back the tool, do the same thing, come back. And then that's where we call -- it's a -- I don't call it commercial. Some other people call it commercial. We do not like to call this commercial. We like to call it commercial when I call it is a trouble free, or it is no -- does not cause any non-productive time. And it just that become matter of an industry normal efficiency, 99%, 98%.

也許我們會做一些小的設計改變，例如改變線程或使某些東西更堅固，然後送回工具，做同樣的事情，再回來。這就是我們所說的——它是——我不稱之為商業。另一些人稱之為商業。我們不喜歡稱之為商業廣告。當我說它是無故障的，或者說它不會造成任何非生產時間時，我們喜歡稱它為商業性的。這只是產業正常效率的問題，99%、98%。

So we hope to reach that by the end of the year while we are deploying and running all these tools on these contracts.

因此，我們希望在今年年底之前實現這一目標，同時在這些合約上部署和運行所有這些工具。

Thank you. And with respect to NEDA, can you talk about where you are in the pilots that you mentioned, the critical mineral pilots? And is demand for those types of services being driven by the push in the region for unconventional development and the need for produced water handling?

謝謝。關於國家能源發展局 (NEDA)，您能否談談您提到的關鍵礦產試點計畫的進展？而對這類服務的需求是否受到該地區非常規開發的推動以及對採出水處理的需求所驅動？

I would say -- okay, I will answer your second question first. No, it is not. It is actually to say the NEDA is kind of like the creation of a market. It's not a market that exists. It is we are creating a market.

我想說——好的，我先回答你的第二個問題。不，不是。這實際上意味著 NEDA 有點像市場的創造。這不是一個存在的市場。我們正在創造一個市場。

The need exists dramatically since years, but it's just uneconomical, right? So today, the world produce so much [water] and most of the client dump that water. The US -- that's exactly what you do. In the US, you just put it and dispose of it, right?

多年來，這種需求一直存在，但這不經濟，對嗎？因此，今天，世界生產瞭如此多的水，而大多數客戶卻把這些水傾倒掉。美國——這正是你們所做的。在美國，你只需把它放進去然後處理掉，對嗎？

But today, if I can save the planet and make that water fresh water or water, then we can do a lot of that. And the Middle East, when I keep saying it's a scarcity of water and scarcity of mineral, why can't we find an economical way to do so? We're just now two years, we are testing. We have a very successful pilot.

但今天，如果我可以拯救地球，讓水變成淡水或淡水，那我們就可以做很多事。至於中東，我一直說那裡缺水、缺礦，為什麼我們不能找到經濟的方法來解決這個問題？我們已經進行了兩年測試。我們有一個非常成功的試點。

Now we are going through the pilot of mineral recovery, which is happening as we speak. So that pilot is already in the country. And put it on a site, other clients' site, and test a continuously for that. Then it becomes scale.

目前我們正在進行礦產回收試點，這項工作正在進行中。所以那位飛行員已經在該國了。並將其放在其他客戶的網站上，並不斷進行測試。然後它就形成規模了。

Then we obviously determine the parameters of the -- how much minerals you get out of that produced water. What could you do with it? Can you get rare earth? Can you sell some of those unique minerals? And if you do that, then the economics becomes massive. And that's why I'm super excited about that, because it's going to change the whole ecosystem.

然後我們顯然確定了從採出水中可以提取多少礦物質的參數。你能用它做什麼？能得到稀土嗎？你能出售一些獨特的礦物嗎？如果你這樣做，那麼經濟效益就會變得巨大。這就是我對此感到非常興奮的原因，因為它將改變整個生態系統。

You're not only making water, but you are making minerals. You're selling those minerals. You are making rare earth. You sell those. You offset your entire cost, then the water becomes free.

你不僅製造水，而且還製造礦物質。你在出售那些礦物。你們正在製造稀土。你賣那些。只要您抵消全部費用，水就免費了。

So imagine you get free water, free produced water, that you can (technical difficulty) and use it for everything. For obviously for unconventional, as you mentioned, for other products, even for agriculture, for a lot of other reason. Then it becomes a real, real story that is pure carbon circular economy, responsibility. And economics world because you make money.

所以想像一下你得到了免費的水，免費的生產水，你可以（技術難度）將它用於一切。顯然，正如您所說，對於其他產品，甚至農業，都是非常規的，還有許多其他原因。然後它就變成了一個真實的故事，即純碳循環經濟和責任。而經濟世界則因為你賺錢。

And definitely, the driver, as you have seen the joint venture between Saudi Aramco and Ma'aden, which is the largest companies in the world to make a joint venture to produce rare earth minerals. So if we can make that, then obviously, we are on the same wavelength and in sync with our customer, which obviously makes everything much easier.

毫無疑問，如您所見，沙特阿美和 Ma'aden 的合資企業是世界上最大的稀土礦物生產合資企業。所以如果我們能做到這一點，那麼顯然，我們就與客戶步調一致、步調一致了，這顯然會讓一切變得容易得多。

Just to follow up, are you seeing interest or at least other of your customers watching this project? And is there a significant difference in water chemistry between the countries that would make potential rare earth recovery more attractive in one country versus another?

只是想跟進一下，您是否看到對這個項目感興趣，或者至少其他客戶正在關注這個項目？各國的水化學性質是否有顯著差異，使得某個國家的潛在稀土回收比另一個國家更具吸引力？

Everybody is watching, right? So obviously, everybody is watching, and that's why I used the word contagious. So if this -- the success of that pilot and work is clear, everybody is going to jump in it. We will not even have capacity to service this. But there -- which is good problem to have. Now the key is to make it economically.

大家都在看，對吧？顯然，每個人都在關注，這就是我使用「傳染性」這個詞的原因。因此，如果這項試點和工作的成功是顯而易見的，那麼每個人都會參與其中。我們甚至沒有能力提供這樣的服務。但這是一個好問題。現在的關鍵是要經濟地實現這一目標。

Now for the water, your other question, no, it's very different. It's very different from the minerals. The water is -- produced water is bad everywhere. It has 200,000; 300,000 parts per million. But some, it's purely salt. So then sodium is like very low price. That's what you really look for.

現在關於水，您的另一個問題，不，這是非常不同的。它與礦物質非常不同。水是－到處生產的水都是壞的。它有 200,000；300,000 百萬分之一。但有些則純粹是鹽。所以鈉的價格非常低。這才是你真正在尋找的。

If you do the same thing, you do in the Permian, that's exactly what people look for. Can you have some lithium? Can you have some earth minerals that can sell and make money to offset the cost? And then it becomes economical, or you make a lot of money. Obviously, when the lithium was $10,000, everybody was happy. It dropped a bit, but it's still economic to do to make it.

如果你做同樣的事情，那麼你在二疊紀所做的就是人們所尋找的。你能吃點鋰嗎？您是否可以擁有一些可以出售並賺錢來抵消成本的地球礦物？然後它就變得經濟了，或者你賺了很多錢。顯然，當鋰的價格達到 10,000 美元時，每個人都很高興。雖然下降了一點，但這樣做仍然是經濟的。

Thank you. We reached the end of our question-and-answer session. I'd like to turn the floor back over to Sherif for any further closing comments.

謝謝。我們的問答環節已經結束。我想將發言權交還給 Sherif，請他發表進一步的結論。

Thank you very much. We are -- again, we are excited about the cycle. We are excited to be a differentiated story among others. And looking forward for the coming quarter and years. Thank you very much.

非常感謝。我們——再次，我們對這個週期感到興奮。我們很高興能夠成為一個與眾不同的故事。並期待未來一個季度和幾年。非常感謝。

Thank you. That does conclude today's teleconference and webcast. You may disconnect your lines at this time and have a wonderful day. We thank you for your participation today.

謝謝。今天的電話會議和網路直播到此結束。此時您可以斷開線路並享受美好的一天。我們感謝您今天的參與。