Expro Group Holdings NV (XPRO) 2025 Q1 法說會逐字稿

Hello everybody and welcome to the Expro Q1 2025 earnings presentation. My name is Elliot and I'll be your coordinator today. [operator instruction].

大家好，歡迎參加 Expro 2025 年第一季財報。我叫艾略特，今天我將擔任您的協調員。[操作員指令]。

I'd like to hand over to Chad Stephenson director of investor relations. Please go ahead.

我想把麥克風交給投資人關係總監查德‧史蒂芬森 (Chad Stephenson)。請繼續。

Welcome to Expo's first quarter 2025 conference call. I'm joined today by Expo's CEO Mike Jardon and Expo CFO Quinn Fanning. First, Mike and Quinn will have some prepared remarks. Then we will open up for questions. We have an accompanying presentation on our first quarter results that is posted on the expo website expo.com under the investors section. In addition, supplemental financial information. The first quarter result is downloadable on the expo website. Likewise under the investor section. I like to remind everybody that to some of today's comments may refer to or contain forward-looking statements. Such remarks are subject to risks and uncertainties that could cause actual results to differ materially.

歡迎參加世博會 2025 年第一季電話會議。今天與我一起參加的是 Expo 執行長 Mike Jardon 和 Expo 財務長 Quinn Fanning。首先，麥克和奎因將發表一些準備好的演講。然後我們將開始提問。我們附有第一季業績介紹，發佈在博覽會網站 expo.com 的投資者部分。此外，還有補充財務資訊。第一季的結果可以在博覽會網站上下載。投資者部分也是如此。我想提醒大家，今天的一些評論可能涉及或包含前瞻性陳述。此類言論受風險和不確定性的影響，可能導致實際結果大不相同。

From those results expressed or implied by such statements. Such statements speak only as of today's date, and the company assumes no responsibility to update forward-looking statements as of any future date. The company has included in its SEC filings cautionary language identifying important factors that could cause actual results to be materially different from those set forth in any forward-looking statements. A more complete discussion of these risks is included in the company's SEC filings, which may be accessed on the SE's website SEC.gov or our website again at expro.com. Please note that any non-gap financial measures discussed during this call are defined and reconciled to the most directly comparable GAAP financial measure in our first quarter 2025 earnings release, which can also be found on our website. With that, I'd like to turn the call over to Mike.

從這些陳述所表達或暗示的結果。此類聲明僅代表截至今日的觀點，本公司不承擔在未來任何日期更新前瞻性聲明的責任。該公司在其提交給美國證券交易委員會的文件中加入了警告性語言，指出了可能導致實際結果與任何前瞻性陳述中所述的結果有重大差異的重要因素。有關這些風險的更完整討論包含在公司的 SEC 文件中，可透過 SE 網站 SEC.gov 或我們的網站 expro.com 存取。請注意，本次電話會議中討論的任何非差距財務指標均已定義並與我們 2025 年第一季度收益報告中最直接可比的 GAAP 財務指標相協調，該收益報告也可在我們的網站上找到。說完這些，我想把電話轉給麥克。

Good morning. Good afternoon, everyone. I'd like to start off by reviewing the first quarter of 2025 financial results as summarized in today's earnings press release. I will then discuss what I would characterize as a dynamic operating environment which, despite our expectation that upstream investment will likely moderate in the near term, we believe supports a positive multi-year outlook for energy services companies like Expo that have a material exposure to the international and offshore markets. Quinn will supplement my commentary on the first quarter and outlook and share some additional financial information.

早安.大家下午好。首先，我想回顧一下今天的收益新聞稿中總結的 2025 年第一季財務表現。然後，我將討論我所描述的動態營運環境，儘管我們預計上游投資在短期內可能會放緩，但我們相信，對於像 Expo 這樣在國際和海上市場有重大影響力的能源服務公司來說，這將支持其在未來幾年保持積極的前景。奎因將補充我對第一季和展望的評論，並分享一些額外的財務資訊。

For a recap of consolidated results and quarterly results by region, I'll direct you to slides two through nine of the presentation we've posted to our website expro.com. On slide two, Expro Q1 2025 revenue was $391 million with an adjusted EBITDA of $76 million or 20% revenue. This marks our highest first quarter performance in a just EBITDA and margin since merging with Franks in October 2021, continuing a multi-year trend of margin improvement. Our performance demonstrates the robustness of our business model, the benefits of having a comprehensive portfolio of services and solutions, and a global presence, but modest exposure to markets such as US land, Mexico, and offshore Saudi that are expected to contract in 2025.

為了回顧合併結果和按地區劃分的季度結果，我將引導您參閱我們在網站 expro.com 上發布的簡報的第二至第九張投影片。在第二張投影片上，Expro 2025 年第一季的營收為 3.91 億美元，調整後的 EBITDA 為 7,600 萬美元，佔營收的 20%。這是我們自 2021 年 10 月與 Franks 合併以來第一季 EBITDA 和利潤率的最高業績，延續了多年來利潤率上升的趨勢。我們的業績證明了我們商業模式的穩健性、擁有全面的服務和解決方案組合的優勢以及全球影響力，但對美國陸地、墨西哥和沙特近海等預計在 2025 年將萎縮的市場敞口較小。

Organic investment and a successful M&A strategy continue to enable margin expansion, improve relevancy to our customers, and better position the company for 2025 and beyond. In some, we believe Expo is well prepared to handle expected market volatility and create long-term value for stakeholders. In terms of commercial activity, we secured $272 million in new contract awards in the first quarter. Safety, service delivery, and cost-effective technology enabled services and solutions have all contributed to these successes, which have included contracts across the life cycle of the well. More specifically, we had contract awards in the US covering well construction services valued at approximately $50 million. In Brazil for drilling and completions, workover and abandonment services valued at more than $30 million and in Indonesia for electric line and slick line services valued at approximately $15 million. Our backlog at approximately $2.2 billion at the end of the first quarter remains both healthy and in line with expectations given the typical seasonal patterns of contract awards.

有機投資和成功的併購策略持續促進利潤率的擴大，提高與客戶的相關性，並為公司在 2025 年及以後的發展做好更好的準備。在某些方面，我們相信世博會已做好充分準備來應對預期的市場波動並為利害關係人創造長期價值。在商業活動方面，我們在第一季獲得了價值 2.72 億美元的新合約。安全、服務交付以及具有成本效益的技術支援的服務和解決方案都為這些成功做出了貢獻，其中包括涵蓋油井整個生命週期的合約。更具體地說，我們在美國獲得了價值約 5000 萬美元的油井建設服務合約。在巴西提供鑽井和完井、修井和廢棄服務，價值超過 3,000 萬美元，在印尼提供電力線路和鋼絲繩服務，價值約 1,500 萬美元。鑑於合約授予的典型季節性模式，我們第一季末的積壓訂單量約為 22 億美元，這仍然保持健康且符合預期。

Turning to the macro-outlook, following the conclusion of the first quarter, tariff announcements and the pull forward of production increases by OPEC plus introduced significant near-term uncertainty and volatility across the global oil markets. Fears of a tariff-induced global trade war have lowered macroeconomic visibility and GDP growth expectations. Consequently, there is no clear near-term path for global liquid demand which before Liberation Day had been rising. Despite changing trade policies, a modestly oversupplied oil market, and evolving economic conditions, the long-term outlook for the international onshore and offshore markets to which ex is most levered remains very positive. Regarding long term demand, natural gas will be a critical clean fuel to meet global energy needs with tailwind stemming from AI data center, and digital infrastructure-related demand and from energy security considerations, particularly in Europe. This is why LNG is in the midst of a major expansion phase.

展望宏觀前景，第一季結束後，關稅公告和石油輸出國組織提前增產為全球石油市場帶來了巨大的短期不確定性和波動性。對關稅引發全球貿易戰的擔憂降低了宏觀經濟的可視性和GDP成長預期。因此，全球液體需求在解放日之前一直處於上升趨勢，但短期內沒有明確的趨勢。儘管貿易政策不斷變化、石油市場供應略有過剩、經濟狀況不斷變化，但對外匯槓桿率最高的國際陸上和海上市場而言，長期前景仍然非常樂觀。從長期需求來看，天然氣將成為滿足全球能源需求的關鍵清潔燃料，而人工智慧資料中心、數位基礎設施相關需求以及能源安全考量（尤其是在歐洲）將為其帶來順風。這就是液化天然氣正處於大規模擴張階段的原因。

Similarly, liquids demand is expected to remain above $100 million barrels per day throughout at least 2030, and more than half of that daily demand will be met with barrels from fields that have not yet been developed. Regarding long term supply, as Verton highlighted in its recent Super spike newsletter, US shale oil, which has been the overarching engine of oil supply growth over the past decade, is showing signs of maturation, with a growing list of companies contemplating plans for what comes after US oil shale. We believe operators will increasingly focus on offshore activities. This shift is due to the accessibility of deep-water barrels, which also offer cost and carbon advantages. After a decade of restrained upstream investment, we remain bullish on the business over the longer term. However, the energy services industry is also navigating global economic uncertainty and supply, demand imbalances, the collective effect of which has been weaker and more volatile commodity prices. Until prices stabilize, customers will likely remain cautious with discretionary spending and new project sanctioning.

同樣，預計至少在 2030 年，液體石油需求將保持在每天 1 億桶以上，而超過一半的每日需求將由尚未開發的油田生產的石油來滿足。關於長期供應，正如 Verton 在其最近的 Super spike 時事通訊中所強調的那樣，美國頁岩油是過去十年石油供應增長的主要引擎，目前正顯示出成熟的跡象，越來越多的公司正在考慮美國油頁岩之後的計劃。我們相信營運商將越來越關注海上活動。這種轉變是由於深水桶的可用性，其還具有成本和碳優勢。經過十年的上游投資限制後，我們仍然對該業務的長期發展感到樂觀。然而，能源服務業也面臨全球經濟不確定性和供需失衡的影響，其綜合效應是大宗商品價格疲軟且波動加劇。在價格穩定之前，消費者可能會對可自由支配的支出和新項目批准保持謹慎。

In our view, current macro conditions are influenced more by global trade issues and geopolitics than the energy industry fundamentals, which remain very strong. Meanwhile, volatility has increased across commodities, equities, and other markets, and we expect this to persist until there's better clarity on the matter outlook. While policy choice may ultimately lead to a global recession, a more likely scenario is that sector weakness will reverse once trade policies are clarified and other macro indicators improve, similar to the recovery scene after the 90 days pause on planned tariffs.

我們認為，當前的宏觀狀況更多是受到全球貿易問題和地緣政治的影響，而不是能源產業基本面的影響，而能源產業基本面仍然非常強勁。同時，大宗商品、股票和其他市場的波動性增加，我們預計這種狀況將持續下去，直到市場前景更加明朗。雖然政策選擇最終可能導致全球經濟衰退，但更有可能的情況是，一旦貿易政策明確且其他宏觀指標改善，行業疲軟狀況將會逆轉，類似於計劃關稅暫停 90 天後的復甦局面。

In this context, according to the US Energy Information Administration, global oil consumption is forecast to increase by $0.9 million barrels per day in 2025, with demand reaching an average of $103.6 million barrels per day. A further increase of $1.1 million barrels per day is anticipated in 2026. In short, despite softer near-term growth, demand is expected to remain resilient, supporting a long-term upcycle for the energy sector. A potentially protracted trade war between the US and China, however, would pose a risk to China's long-term oil demand. On the supply side, the EIA projects global liquids production to grow by $1.3 million barrels per day in 2025, reaching $104.1 million barrels per day, led by non-OPEC plus producers, including the United States, Canada, Brazil, and Guyana. Further growth of $1.2 million barrels per day is forecast for 2026. That said, supply risk remains high due to the uncertainty surrounding the sustainability of sanctions on Russia, Iran, and Venezuelan exports. While the EIA currently forecasts average prices of $68 per barrel in 2025 and $61 per barrel in 2026, oil prices are expected to remain volatile in the near term as markets digest new tariff policies, geopolitical tensions, and sanctions. Despite downside risk, commodity prices are expected to remain at levels that will support continued upstream investment, with most international and offshore operators maintaining good profitability above that $60 to $65 per barrel range. This should provide a constructive environment for continued activity across Expo's largest product lines.

在此背景下，根據美國能源資訊署的預測，2025年全球石油消耗量將增加90萬桶/日，需求量平均達到1.036億桶/日。預計到 2026 年，石油日產量將進一步增加 110 萬桶。簡而言之，儘管短期內經濟成長放緩，但預計需求仍將保持彈性，從而支持能源產業的長期上升週期。然而，中美之間可能曠日持久的貿易戰將對中國的長期石油需求構成風險。在供應方面，美國能源資訊署預測，2025年全球液體石油產量將增加130萬桶/日，達到1.041億桶/日，其中以非歐佩克產油國為主，包括美國、加拿大、巴西和圭亞那。預計到 2026 年，石油產量將進一步成長 120 萬桶/日。儘管如此，由於對俄羅斯、伊朗和委內瑞拉出口制裁的可持續性存在不確定性，供應風險仍然很高。儘管美國能源資訊署目前預測 2025 年平均油價為每桶 68 美元，2026 年平均油價為每桶 61 美元，但隨著市場消化新的關稅政策、地緣政治緊張局勢和製裁，短期內油價預計仍將保持波動。儘管存在下行風險，但大宗商品價格預計將維持在支持持續上游投資的水平，大多數國際和海上運營商將在每桶 60 至 65 美元的範圍內保持良好的盈利能力。這應該為 Expo 最大產品線的持續活動提供建設性的環境。

If a more constructive macro backdrop develops over the next several quarters, we continue to believe that 2025 will be a transition year with a return to a healthy level of sanctioning activity in 2026 and beyond to meet long-term demand for oil and gas. Offshore project sanctioning should continue to gain momentum with about two third of greenfield CapEx over the next two years expected to be allocated to offshore developments. Again, these projects benefit from lower emissions intensity and have competitive break evens and are a natural fit for expos core strengths.

如果未來幾季出現更具建設性的宏觀背景，我們仍然相信 2025 年將是一個過渡年，2026 年及以後製裁活動將恢復到健康水平，以滿足對石油和天然氣的長期需求。海上計畫批准將繼續獲得動力，預計未來兩年內約三分之二的綠地資本支出將分配給海上開發。同樣，這些項目受益於較低的排放強度，具有競爭力的盈虧平衡點，並且與博覽會的核心優勢自然契合。

Compared to our Q4 earnings call outlook, this indicates a delay in activity yet maintains a positive multi-year perspective both on the overall op opportunity set and Expro's relative market position. Years of industry-wide capital discipline have prepared operators to continue development activities through a more volatile near-term market scenario, and as such, upstream investment is expected through 2025, with several Geo markets likely proving to be more resilient than the equity markets currently seem to believe. In our NLA region, activity should be stable in Brazil and Guyana as a result of the development plans emanating from the high volume of FIDs in recent years, as well as in Argentina and Colombia because of an abundance of oil and gas resources and pro-growth policies.

與我們的第四季度財報電話會議展望相比，這表明活動有所延遲，但對整體營運機會和 Expro 的相對市場地位都保持了積極的多年前景。多年來，全行業對資本的嚴格管控使營運商能夠在更加動盪的短期市場情況下繼續開展開發活動，因此，預計上游投資將持續到 2025 年，而多個地緣市場可能會比股票市場目前認為的更具彈性。在我們的 NLA 地區，由於近年來大量 FID 產生的發展計劃，巴西和圭亞那的活動應該保持穩定，而由於石油和天然氣資源豐富且實施了有利於增長的政策，阿根廷和哥倫比亞的活動也應該保持穩定。

Similarly, in ESA, the outlook is constructive for Norway and parts of West Africa. In the Middle East and North Africa, we are expecting stability in our two largest markets, which are Saudi and Algeria. In Saudi, our business is more levered to onshore unconventional gas, more so than offshore oil. In Algeria, our business is levered to production optimization more so than new development activity. In Asia Pacific, we were expecting a 2025 slowdown on offshore Australia prior to April second due to the timing of projects, but markets such as Brunei and India should have a post-monsoon season rebound in the second quarter of 2025, and we have new activity commencing in both Indonesia and Vietnam. In addition to the anticipated contractions in US land, Mexico, and offshore Saudi that I mentioned earlier, a prolonged trade war and weaker commodity prices could result in reduced activity in the Gulf of America, which historically responds relatively quickly to changes in commodity prices. It is an important market for expo.

同樣，在歐空局，挪威和西非部分地區的前景也十分樂觀。在中東和北非，我們預計我們最大的兩個市場沙烏地阿拉伯和阿爾及利亞將保持穩定。在沙特，我們的業務更依賴陸上非常規天然氣，而不是海上石油。在阿爾及利亞，我們的業務更依賴生產優化而不是新的開發活動。在亞太地區，由於專案時間表，我們預計在 4 月 2 日之前澳洲離岸風電將出現 2025 年放緩，但汶萊和印度等市場應該會在 2025 年第二季度出現季風季節後反彈，而且我們在印尼和越南都開始了新的活動。除了我之前提到的美國陸地、墨西哥和沙烏地阿拉伯近海預計的萎縮之外，長期的貿易戰和大宗商品價格疲軟可能會導緻美國灣的活動減少，而從歷史上看，美國灣對大宗商品價格變化的反應相對較快。是重要的博覽會市場。

Overall, it is expected that customers' 2025 work programs will be largely unaffected by short-term commodity price movements and market uncertainty. However, non-committed exploration and appraisal wells and the final investment decision approvals may be delayed as customers re-evaluate project economics in light of current conditions. Consequently, the approval of offshore projects in areas such as West Africa may be postponed to 2026 or even early 2027. Expected project approval slide to the right. The 2026 activity outlook may be impacted, but we believe this will also extend the up cycle given the reduced spending levels over the last 10 years.

總體而言，預計客戶的 2025 年工作計畫將基本上不會受到短期商品價格變動和市場不確定性的影響。然而，由於客戶根據當前情況重新評估專案經濟性，未承諾的勘探和評估井以及最終投資決策批准可能會被延遲。因此，西非等地區的海上計畫審批可能會延後到2026年甚至2027年初。預期項目批准向右滑動。2026 年的活動前景可能會受到影響，但考慮到過去 10 年支出水準的下降，我們相信這也將延長上升週期。

If development activity slows, customers will continue to focus on improving efficiency and reducing the carbon intensity of their operations, resulting in increased brownfield activity and sustained capex spending. While Expo is currently more levered to drilling and completions activity, the company's well intervention and integrity, production optimization, and digital solutions businesses should remain resilient. With a more uncertain backdrop, we remain focused on maintaining cost and capital discipline and otherwise controlling what we can control. We will continue to execute our strategy and offer differentiated services and solutions to our customers. We will also size the business based on revenue realities, and we will adjust CapEx spend on the projects that customers sanction and a business that is awarded to expo. In addition, our zero net debt balance sheet also provides a company with strategic and financial flexibility. Operational performance has been strong, and we have a head start on cost optimization with our Drive 25 efficiency campaign that we launched several quarters ago. This should help us protect margins as activity softens and allow us to improve margins if activity stabilizes or improves. Again, on a relative basis, we are less exposed to the markets most likely to contract in 2025, including the lower 48, Mexico, and offshore Saudi.

如果開發活動放緩，客戶將繼續專注於提高效率和降低營運的碳強度，從而導致棕地活動增加和資本支出持續增加。雖然 Expo 目前更依賴鑽井和完井活動，但該公司的井下幹預和完整性、生產優化和數位解決方案業務應該仍能保持彈性。在更不確定的背景下，我們仍然專注於維持成本和資本紀律，並控制我們能夠控制的事情。我們將繼續執行我們的策略，為客戶提供差異化的服務和解決方案。我們還將根據收入實際情況確定業務規模，並調整客戶批准的項目和授予博覽會的業務的資本支出。此外，我們的零淨債務資產負債表也為公司提供了策略和財務靈活性。營運業績一直很強勁，而且我們在幾個季度前啟動的 Drive 25 效率活動在成本優化方面已經佔據了領先地位。這應該有助於我們在活動減弱時保護利潤率，並允許我們在活動穩定或改善時提高利潤率。同樣，相對而言，我們對 2025 年最有可能萎縮的市場（包括美國本土 48 個州、墨西哥和沙烏地阿拉伯近海市場）的曝險較小。

Regarding our ability to offer differentiated services and solutions, we continue to provide cost effective technology to the markets, as evidenced by several of the contract wars that we highlighted in our press release. In the Gulf of America, we've remained a market leader in wall construction by investing in technologies that enable operating efficiencies and cost savings, improve safety outcomes by removing personnel from the red zone, and enhance well integrity through more reliable tubular connections, most recently securing a three-year tubular running services contract over four rigs. The contract for approximately $50 million integrates our most advanced digital technology, including Centrify and ICANN. PRT Offshore, which we acquired in 2023, continues to perform well, highlighting how Expo has opportunistically used M&A to complement organic investments in the business. In the first quarter, the PRT team simultaneously executed operations for seven subsea customers in the Gulf of America. The team is also leveraging Expo's global operating footprint to improve asset utilization and increase revenue. Having secured new awards for surface handling equipment in Asia Pacific and Sub-Saharan Africa. In ESA, we successfully completed the system integration of our open water intervention riser system, the first of its kind to be built by Expo. The equipment was delivered under a six year contract and is currently mobilized for the deployment in the UK sector of the North Sea.

關於我們提供差異化服務和解決方案的能力，我們繼續向市場提供具有成本效益的技術，正如我們在新聞稿中強調的幾場合約戰所證明的那樣。在美國灣，我們透過投資能夠提高營運效率和節約成本的技術，透過從紅區撤出人員來改善安全結果，並透過更可靠的管道連接提高井的完整性，始終保持著牆壁建設市場的領先地位，最近我們獲得了四座鑽機的三年管道運行服務合約。這份價值約 5000 萬美元的合約整合了我們最先進的數位技術，包括 Centrify 和 ICANN。我們在 2023 年收購的 PRT Offshore 持續表現良好，突顯了 Expo 如何抓住機會利用併購來補充業務的有機投資。第一季度，PRT團隊同時為美國灣的七位海底客戶執行作業。該團隊還利用 Expo 的全球營運足跡來提高資產利用率並增加收入。獲得了亞太地區和撒哈拉以南非洲地區地面處理設備的新獎項。在 ESA，我們成功完成了開放水域幹預立管系統的系統集成，這是 Expo 建造的第一個此類系統。該設備是根據一份為期六年的合約交付的，目前正在部署到北海的英國海域。

The current campaign is abandonment, but Expo's open water IRS solution ensures safe and reliable subsea well access and can be used across development, intervention, and abandonment, ultimately unlocking production gains while minimizing operational costs. In the eastern Mediterranean, we continue to see robust momentum and have successfully completed deepwater well construction operations for two major clients for TRS services across two exploration wells. Within the meaner region, our QPulse technology was successfully piloted in the Jaffarr field in Saudi, demonstrating excellent correlation in multi-phase flow data across three phases compared to the traditional test separator. The success allowed the technology to be used for production testing as a stand-alone technology, eliminating the need for a conventional separator. This non-intrusive solution offers rapid, cost-efficient data essential for field production allocation and well performance monitoring. In Asia Pacific, we successfully deployed our Centr fi Consolidated control console for a major international oil company in Indonesia marking its maiden international deployment. We are seeing an increased demand for the market for our centerfield systems reflecting the value and efficiency they bring to our clients' operations. The system exemplifies our commitment to automation and operational excellence.

目前的活動是廢棄，但 Expo 的開放水域 IRS 解決方案可確保安全可靠的海底油井通道，並可用於開發、幹預和廢棄，最終釋放生產收益，同時最大限度地降低營運成本。在地中海東部，我們繼續看到強勁的發展勢頭，並已成功為兩個主要客戶的兩口勘探井完成了深水井建設作業。在較平均的區域內，我們的 QPulse 技術已在沙烏地阿拉伯的 Jaffarr 油田成功試用，與傳統測試分離器相比，該技術在三相多相流資料中表現出了極佳的相關性。這項成功使得該技術可以作為一項獨立技術用於生產測試，從而無需使用傳統的分離器。這種非侵入式解決方案可提供對現場生產分配和油井性能監控至關重要的快速、經濟高效的數據。在亞太地區，我們成功為印尼一家大型國際石油公司部署了 Centr fi Consolidated 控制台，這是該公司首次在國際上部署。我們看到市場對我們的中場系統的需求不斷增加，這反映了它們為客戶的營運帶來的價值和效率。該系統體現了我們對自動化和卓越營運的承諾。

Also in Indonesia, we secured a three-year contract for well and prevention services across 315 wells. Before I hand over to Quinn, I'll comment on the guidance for the second quarter in full year 2025 that was included in our earnings press release. For Q2, assuming no additional tariff-driven uncertainty and that commodity prices were made at or near current levels, we expect a seasonal rebound in Europe and a return to normal operations cadence in Asia Pacific after an extended monsoon season, with low to mid-single digit sequential revenue growth overall and modest quarter over quarter adjust EBITDA margin expansion. Q2 revenue will be down on a year over year basis due to a non-repeat of subsidy projects delivered in the Second quarter of 2024. We currently expect at least mid-single digit revenue growth in the second half of the year compared to the first half of the year, largely supported by the scheduled startup of new projects. For full year 2025 with the same tariff on commodity price caveats, we expect revenue to be generally flat relative to 2024, and that margins will be stable if not up modestly year over year due to activity mix and operating efficiency gains.

此外，我們在印尼簽署了一份為期三年的合同，為 315 口油井提供油井和預防服務。在將時間交給 Quinn 之前，我將對我們的收益新聞稿中包含的 2025 年全年第二季的指引進行評論。對於第二季度，假設沒有額外的關稅驅動的不確定性，並且大宗商品價格處於或接近當前水平，我們預計歐洲將出現季節性反彈，亞太地區在延長的季風季節後將恢復正常運營節奏，整體收入將實現低至中等個位數的連續增長，調整後的 EBITDA 利潤率將環比適度擴張。由於 2024 年第二季交付的補貼項目沒有重複，因此第二季的收入將比去年同期下降。我們目前預計，與上半年相比，下半年的收入至少會實現中等個位數成長，這主要得益於新專案的按計畫啟動。對於 2025 年全年，在商品價格警告關稅相同的情況下，我們預計收入將與 2024 年基本持平，並且由於活動組合和運營效率的提高，利潤率將保持穩定，甚至同比小幅上升。

For now, we remain comfortable that full year revenue will exceed $1.7 billion. We also expect adjusted EBITDA for the full year will meet or exceed 2024 results, but clearly visibility is less precise today given the uncertain macroeconomic and geopolitical backdrop. While there is currently a lot of uncertainty in the market, we have experienced extended down cycles as well as transient troughs and activity in the past. The current market feels more like a transient trough to me, and in retrospect, 2025 will be a better year than many investors currently assume, but only time will tell. Our business is more leverage to long cycle rather than short cycle development, so we should be somewhat insulated from short term movements and commodity prices. Nonetheless, we will quickly adjust our costs and capital expenditures as market conditions warrant. We are also in a good position with the balance sheet that we have, the quality of the customers that we support, and the Geo markets to which we are more exposed. Importantly, we are focusing on profitability and cash generation more than growth. With that, I'll hand the call over to Quinn to further discuss our financial results.

目前，我們仍然有信心全年收入將超過 17 億美元。我們也預計全年調整後的 EBITDA 將達到或超過 2024 年的業績，但鑑於不確定的宏觀經濟和地緣政治背景，今天的可見性顯然不太精確。雖然目前市場存在許多不確定性，但我們過去經歷過長期的下行週期以及短暫的低谷和活動。目前的市場對我來說更像是一個短暫的低谷，回想起來，2025 年將比許多投資者目前認為的要好，但只有時間才能證明。我們的業務更依賴長週期而不是短週期開發，因此我們應該在一定程度上免受短期波動和商品價格的影響。儘管如此，我們將根據市場狀況迅速調整成本和資本支出。我們的資產負債表、我們支持的客戶的品質以及我們更多接觸的地理市場都處於良好地位。重要的是，我們更關注獲利能力和現金創造，而不是成長。說完這些，我將把電話交給 Quinn，進一步討論我們的財務表現。

Thank you, Mike. Good morning to everyone on the call. As Mike noted, we reported revenue of $391 million for the quarter ended March 31st, as compared to the guidance range for Q1 2025, revenue of $370 to $380 million that was provided on our Q4 earnings conference call. As anticipated, revenue was down $46 million or about 11% relative to the fourth quarter of 2024. Reflecting a combination of the winter season in the northern hemisphere and the non-repeat of large subsea projects in the 4th quarter of 2024. Year over year revenue is up $7 million or approximately 2% relative to the first quarter of 2024. As Mike noted, Q1 2025 was the best first quarter performance since we completed the ex-Francs merger. Adjusted EBITDA after the first quarter of 2025 was $76 million as compared to Q1 guidance of $65million to $75 million representing a sequential decrease of approximately $24 million or 24% relative to the fourth quarter of 2024. Compared to Q1 2024, Adjusted EBITDA increased $9 million or 13%. Adjusted EBITDA margin for the first quarter was 20% and it was down about 300 basis points quarter over quarter.

謝謝你，麥克。各位電話裡的各位早安。正如麥克所指出的，我們報告稱，截至 3 月 31 日的季度收入為 3.91 億美元，而我們在第四季度收益電話會議上提供的 2025 年第一季度指導範圍收入為 3.7 億至 3.8 億美元。正如預期的那樣，與 2024 年第四季相比，營收下降了 4,600 萬美元，降幅約為 11%。這是由於北半球冬季氣候和 2024 年第四季大型海底計畫不再重複的綜合影響。與 2024 年第一季相比，年收入增加 700 萬美元，增幅約 2%。正如麥克所說，2025 年第一季是我們完成 ex-Francs 合併以來表現最好的第一季。2025 年第一季後的調整後 EBITDA 為 7,600 萬美元，而第一季的指導值為 6,500 萬美元至 7,500 萬美元，與 2024 年第四季相比環比減少約 2,400 萬美元或 24%。與 2024 年第一季相比，調整後 EBITDA 增加了 900 萬美元，增幅為 13%。第一季調整後的 EBITDA 利潤率為 20%，季減約 300 個基點。

As compared to Q1 2024, Adjusted EBITDA margin and increased about 200 basis points. Turning to regional results for North and Latin America or NLA, fourth quarter revenue was $134 million or down $5 million quarter over quarter, reflecting lower activity and well construction and wealth flow management, while subsidy well access activity was higher in the US and well intervention and integrity was higher in Argentina. NLA segment EBITDA margin improved to 23% from 22% in Q4 2024, reflecting the increased subsea activity and resulting favourable activity mix in the region. Note that revenue generated from the US land in Mexico markets was about 4% and 1% of consolidated 2024 revenue respectively. It continues to be a small part of the global export business.

與 2024 年第一季相比，調整後的 EBITDA 利潤率增加了約 200 個基點。轉向北美和拉丁美洲或 NLA 的區域業績，第四季度收入為 1.34 億美元，環比下降 500 萬美元，反映出活動和油井建設及財富流管理的減少，而美國的補貼油井訪問活動較高，阿根廷的油井幹預和完整性較高。NLA 部門 EBITDA 利潤率從 2024 年第四季的 22% 提高至 23%，這反映了該地區海底活動的增加以及由此產生的有利活動組合。請注意，美國土地在墨西哥市場產生的收入分別約佔 2024 年合併收入的 4% 和 1%。它仍然只是全球出口業務的一小部分。

For Europe and Sub-Saharan Africa, or ESA, first quarter revenue was $112 million a sequential decrease of $30 million or 21%, primarily driven by a non-repeat of Q4 subsea projects in Angola, partially offset by increased production solutions revenue in Congo. Segment margin at 26% was down 11% points sequentially, reflecting a decrease in high margin subsea activity. The Middle East and North Africa are MENA team delivered another excellent quarter. Q1 revenue in MENA was $94 million or up 1% sequentially. Driven by higher well intervention integrity revenue in Qatar, higher production solutions revenue in Algeria, and higher revenue from the acquired Core tracks business, which is largely captured within well construction. Partially offset by lower well construction revenue in Egypt. MENA segment bata margin at 37% was up 1% quarter over quarter and up approximately 220 basis points year over year.

歐洲和撒哈拉以南非洲地區（ESA）第一季營收為 1.12 億美元，季減 3,000 萬美元，降幅為 21%，主要原因是安哥拉第四季海底計畫未能重複，但剛果生產解決方案收入增加部分抵銷了這一影響。該部門利潤率為 26%，比上一季下降 11 個百分點，反映出高利潤海底活動的減少。中東和北非 MENA 團隊交出了另一份優秀的成績單。中東和北非地區第一季營收為 9,400 萬美元，季增 1%。受卡達井幹預完整性收入增加、阿爾及利亞生產解決方案收入增加以及收購的核心軌道業務收入增加的推動，這些收入主要集中在井建設領域。部分被埃及油井建設收入的下降所抵消。中東和北非地區的利潤率為 37%，較上季成長 1%，較去年同期成長約 220 個基點。

Finally, in Asia Pacific, or APAC, first quarter revenue was $51 million a decrease of $12 million relative to the December quarter, primarily reflecting the expected decrease in subsea well access activity offshore Australia and lower well flow management while construction activity in Brunei and Malaysia, partially offset by increased quart activity onshore Australia, which in this case is captured within the well intervention integrity product line. Asia Pacific segment EBITDA margin at 21% was down for the prior quarter, reflecting mix, was up about 340 basis points compared to Q1 2024. Total support costs for Q1 2025 were $85 million compared to $88 million in Q4. Support cost as a percentage of revenue was approximately 22% compared to approximately 20% in Q4 due to sequentially lower revenue. Corporate GNA is a subset of total support costs. It was approximately 3.9% of revenue in Q1 2025.

最後，在亞太地區（APAC），第一季的收入為 5,100 萬美元，與 12 月季度相比減少了 1,200 萬美元，主要反映了澳洲近海海底油井接入活動的預期減少以及汶萊和馬來西亞的井流量管理減少，而建築活動減少，部分被澳洲陸上季度活動的增加所抵消，在這種情況下，這一部分屬於油井的一部分。亞太地區 EBITDA 利潤率為 21%，較上一季下降，反映出多種因素的影響，與 2024 年第一季相比上漲了約 340 個基點。2025 年第一季的總支援成本為 8,500 萬美元，而第四季為 8,800 萬美元。由於收入連續下降，支持成本佔收入的百分比約為 22%，而第四季度約為 20%。企業 GNA 是總支援成本的子集。約佔 2025 年第一季營收的 3.9%。

To provide an update on our Drive 25 initiative, we are well into the implementation phase of our cost optimization program. On our Q4 earnings conference call, we highlighted an initial target of $25 million in run rate support cost savings that would be achieved by the fourth quarter of 2025. This will allow us to establish a new baseline for support costs at around 19% of revenue and provide scope for improved operating leverage and further margin expansion with growth. We've now identified a bit over $30 million of run rate support cost savings and where possible, we are looking to pull forward the realization of such savings. On our Q4 call, we indicated about 50% of the overall target would be reflected in 2025 results, and we are planning to capture not less than 50% of the higher run rate target during the current year.

為了提供有關我們的 Drive 25 計劃的最新信息，我們已進入成本優化計劃的實施階段。在我們的第四季財報電話會議上，我們強調了到 2025 年第四季實現 2,500 萬美元運行率支持成本節約的初步目標。這將使我們能夠在收入的 19% 左右建立新的支援成本基準，並為提高營運槓桿和隨著成長進一步擴大利潤率提供空間。我們現在已經確定了略高於 3000 萬美元的運行率支援成本節省，並且在可能的情況下，我們希望提前實現這些節省。在我們的第四季電話會議上，我們表示，大約 50% 的總體目標將反映在 2025 年的業績中，並且我們計劃在今年實現不低於 50% 的更高運行率目標。

Turning to liquidity, first quarter adjusted cash flow from operations, which excludes cash paid for interest net, cash paid for severance and other expense, and cash paid for merger and integration expense was $53 million a year over year increase of $14 million. During Q1 2025, working capital decreased $2 million quarter over quarter, and cash taxes were approximately $15 million. Additionally, cash conversion or adjusted cash from operations as a percentage of adjusted EBITDA was 69%. Adjusted EBITDA capital expenditures was approximately $43 million and free cash flow or adjusted cash flow from operations less CapEx was approximately $20 million. Non-operating uses of cash included capital expenditures of $33 million and $10 million dollars for the repurchase of 1 million ex shares at an average price per share of $10.08. Acquired shares were approximately 1% of total shares outstanding. Following the Q1 stock repurchases, approximately $66 million was available under our current $100 million program.

談到流動性，第一季調整後的營運現金流（不包括支付的利息淨額現金、支付的遣散費和其他費用現金以及支付的合併和整合費用現金）為 5,300 萬美元，比去年同期增加 1,400 萬美元。2025 年第一季度，營運資本季減 200 萬美元，現金稅約 1,500 萬美元。此外，現金轉換率或調整後經營現金佔調整後 EBITDA 的百分比為 69%。調整後的 EBITDA 資本支出約為 4,300 萬美元，自由現金流量或調整後的營運現金流量減去資本支出約 2,000 萬美元。非經營性現金使用包括 3,300 萬美元的資本支出和 1,000 萬美元用於以每股平均 10.08 美元的價格回購 100 萬股除權股。收購的股份約佔總流通股數的 1%。在第一季股票回購之後，我們目前的 1 億美元計劃下約有 6,600 萬美元可用。

We still intend to use about one third of our annual free cash flow to acquire ex shares. Expo had total available liquidity at the end of Q1 of approximately $315 million with cash and cash equivalents, including restricted cash of approximately $180 million and availability under our revolving credit facility of approximately $135 million.

我們仍打算使用約三分之一的年度自由現金流來收購除名股份。截至第一季末，Expo 的可用流動資金總額約為 3.15 億美元，包括現金和現金等價物，其中包括約 1.8 億美元的受限現金和約 1.35 億美元的循環信貸額度下的可用現金。

Turning to our outlook, page 9 of our accompanying slide summarizes our guidance for Q2 and for full year 2025. As Mike noted, we are currently expecting full year 2025 revenue to be comparable year on year, and that adjusted EBITDA will meet or exceed 2024 results. Within a reasonable 2025 revenue range, free cash flow margin or free cashless percentage of revenue should be in the 7% area or approximately $120 million. As it relates to Q2, we expect our results for the second quarter to reflect a moderate increase in activity across NLA, ESA, and APAC, while MENA is expected to be relatively stable quarter over quarter.

談到我們的展望，隨附幻燈片的第 9 頁總結了我們對第二季和 2025 年全年的指導。正如 Mike 所指出的，我們目前預計 2025 年全年營收將與去年同期持平，調整後的 EBITDA 將達到或超過 2024 年的業績。在合理的 2025 年收入範圍內，自由現金流利潤率或自由無現金收入百分比應在 7% 左右或約 1.2 億美元。與第二季相關，我們預計第二季的業績將反映出 NLA、ESA 和 APAC 地區的活動適度成長，而 MENA 地區則預期將較上季保持相對穩定。

We currently expect Q2 revenue of $400 million to $410 million or up about 4% sequentially based on the midpoint of guidance. Based on Q2 adjusted EBITDA guidance of $80 to $90 million Q2 2025 adjusted EBITDA margin is expected to be up sequentially and year over year by about 100 basis points. We continue to expect a further uptick in H2 based on planned project startups, including in Mexico and on the US side of the Gulf of America, where we expect to pick up in drilling activity following completions heavy first half of the year. This should benefit the TRS cementing technologies businesses within well construction. We also plan to commence work on new contracts that were awarded in Q4 and Q1 in several countries in both NLA and APAC.

我們目前預計第二季營收為 4 億至 4.1 億美元，根據指引中位數，季增約 4%。根據第二季調整後的 EBITDA 指引 8,000 萬至 9,000 萬美元，預計 2025 年第二季調整後的 EBITDA 利潤率將季增，年比也將成長約 100 個基點。根據計劃中的項目啟動情況，我們繼續預計下半年將進一步上漲，其中包括墨西哥和美國灣美國一側的項目，我們預計在上半年完井活動密集之後，這些地區的鑽井活動將會增加。這將有利於 TRS 在油井建設領域的固井技術業務。我們還計劃開始執行第四季度和第一季在北美洲和亞太地區的多個國家授予的新合約。

As discussed, there is an element of market uncertainty created by tariff announcements, additional OPEC plus supply, and a variety of geopolitical issues that will inform customer activity in 2025. However, this will likely not be settled until the second half of the year. We expect the demand for our services to continue with line of sight on projects in Q2, particularly international and offshore markets. As the year progresses and more clarity is provided by the operators, we'll have more visibility on project timing for the second half of the year and the medium-term activity set. We are currently planning to deliver 2025 financial results within our original guidance ranges based on our understanding of customer work plans, but we acknowledge such work plans may continue to evolve throughout the year.

如上所述，關稅公告、OPEC 增產以及供應量增加以及各種地緣政治問題造成了市場不確定性，這些問題將影響 2025 年的客戶活動。不過，這一問題可能要到今年下半年才能解決。我們預計，第二季對我們服務的需求將持續關注項目，特別是國際和離岸市場。隨著時間的推移和運營商提供的更多明確信息，我們將對下半年的項目時間表和中期活動有更清晰的了解。我們目前計劃根據對客戶工作計劃的理解，在最初的指導範圍內實現 2025 年財務業績，但我們承認此類工作計劃可能會在全年持續發展。

As I've highlighted, we are already taking action to optimize costs and streamline processes through our Drive '25 operating efficiency campaign. If operators' plans change, we'll adjust costs and CapEx accordingly to preserve margins and generate cash. With that, I'll turn the call back to Mike for a few closing comments.

正如我所強調的，我們已經採取行動，透過「推動 25 年營運效率」活動來優化成本並簡化流程。如果營運商的計劃發生變化，我們將相應地調整成本和資本支出，以保持利潤率並產生現金。說完這些，我將把電話轉回給麥克，讓他做幾點結束語。

Thank you, Quinn. As we evaluate the business, we believe [X ] is positioned well with leading positions in our core product lines and good exposure to markets that will support the underlying activity for a multi-year growth cycle. Our organic investments allow us to maintain our position at the forefront of the energy services industry as we continue to evolve and expand our portfolio of differentiated solutions while maintaining our high service quality.

謝謝你，奎因。在評估業務時，我們認為 [X] 處於有利地位，在我們的核心產品線中佔據領先地位，並且在市場上具有良好的曝光度，這將支持多年增長週期的基礎活動。我們的有機投資使我們在能源服務產業中保持領先地位，同時我們不斷發展和擴大差異化解決方案組合，同時保持高服務品質。

Our M&A strategy has facilitated accretive growth and allowed us to acquire and integrate high quality businesses with excellent margins and to acquire high quality talent and integrate business builders into the expo global platform. We continue to believe the macro backdrop sets up 2025 to be a transition year for the energy services industry. As such, while we expect Expo's top line revenue to be relatively flat compared to 2024, improved activity mix and operating efficiency gains should translate into margins at or above 2024 levels.

我們的併購策略促進了增值成長，使我們能夠收購和整合具有優厚利潤的高品質企業，並獲得高素質人才，並將業務建立者融入博覽會全球平台。我們仍然相信，宏觀背景將使 2025 年成為能源服務業的轉型年。因此，雖然我們預計 Expo 的營收將與 2024 年相比將相對持平，但活動組合的改善和營運效率的提高應會轉化為 2024 年或以上的利潤率。

The current geopolitical and oil supply disruptions have introduced market uncertainty, and we will navigate the international and optional markets as the year progresses. Beyond 2025, we remain very bullish on the outlook for long cycle development driven by economic growth, security of supply considerations, and policymakers accepting that hydrocarbons and particularly natural gas will remain a key element of the global energy slate for the foreseeable future. Expo's is poised for long-term growth, success, and value creation. With that, we can open up the call for questions.

當前的地緣政治和石油供應中斷帶來了市場不確定性，我們將在今年內探索國際和可選市場。2025年後，我們仍然非常看好長期週期發展的前景，這得益於經濟成長、供應安全考量以及政策制定者接受碳氫化合物特別是天然氣在可預見的未來仍將是全球能源結構的關鍵要素。世博會已準備好實現長期成長、成功和價值創造。這樣，我們就可以開始提問了。

[operator instruction]

[操作員指令]

First question comes from Arun Jayaram with JP Morgan. Your line is open. Please go ahead.

第一個問題來自摩根大通的阿倫·賈亞拉姆 (Arun Jayaram)。您的線路已開通。請繼續。

Yes, good morning, gentlemen. Mike wondered if you could elaborate on what you're seeing kind of in the MENA, geographical segment seems to be a really strong growth here. Thoughts on maybe the sustainability of the margins that you got the 37% margin and maybe talk a little bit about the contribution you're seeing from core tracks.

是的，先生們，早安。麥克想知道您是否可以詳細說明您在中東和北非地區看到的情況，該地區的地理區域似乎出現了非常強勁的增長。您認為 37% 的利潤率是否具有永續性，或者您能否談談核心業務的貢獻。

Sure, no, good morning, and great question. Thanks for joining. I guess it's, one of the, and for myself, having lived and worked in the Middle East earlier in my career, it's it typically is the good thing about the operators there, our customers there, the NOCs, they tend to be, they're more like an aircraft carrier. When they make adjustments and changes, it takes a while for them to start the course correct, so it tends to be more stable for a longer period of time, we have really strong anchor contracts in Saudi and in Algeria in particular. And you know we've had great market penetration with [Korrax] in particular in Saudi. Most of our activity in Saudi is really focused around, land, unconventional gas, and we've actually observed a rig count increase in unconventional gas, last year, and we'll continue to see some this year. So we continue to see some real strength there and it's part of the reason why we continue to invest, both in our own engineering efforts but also some. Things we've done with our recently acquired, full on acquisitions just allows us to continue to provide services and solutions to our customers that, drive efficiency or help them, reduce the number of days drilling or increase the speed of completion, those type of things. So, mean it continues to be a real strong growth engine for us and generally I believe we'll continue to be more stable here over the certainly over the short term and medium term and long term as well.

當然，不，早安，這個問題問得好。感謝您的加入。我想這是其中之一，就我而言，我職業生涯早期曾在中東生活和工作過，這通常是那裡的運營商、我們在那裡的客戶、國家石油公司的優點，他們往往更像一艘航空母艦。當他們做出調整和改變時，需要一段時間才能開始糾正路線，因此它往往會在較長時間內更加穩定，我們在沙烏地阿拉伯和阿爾及利亞擁有非常強大的錨定合約。你知道，我們的 [Korrax] 市場滲透率很高，尤其是在沙烏地阿拉伯。我們在沙烏地阿拉伯的大部分活動實際上都集中在陸地非常規天然氣上，實際上，去年我們已經觀察到非常規天然氣鑽井數量增加，今年我們也將繼續看到這種增長。因此，我們繼續看到那裡的真正實力，這也是我們繼續投資的原因之一，既投資於我們自己的工程工作，也投資於其他一些方面。我們最近的全面收購使我們能夠繼續為客戶提供服務和解決方案，從而提高效率或幫助他們減少鑽井天數或提高完井速度等。所以，這意味著它將繼續成為我們真正強勁的成長引擎，總的來說，我相信我們在短期、中期和長期內將繼續更加穩定。

Great, and just court tracks?

太好了，而且只是法庭曲目？

I mean, Court tracks specifically, we continue to continue to be really pleased at how the integration has went, how we're getting market penetration, both in the Middle East, but also in other jurisdictions. We didn't highlight it here in today's call, but we're having some really good, market activity in Australia in particular for expandable services from Court tracks. Allows us to go into, coal bed methane wells, re-line those wells where they've had, corrosion issues, and put a large number of wells back onto production. So, it's been a great acquisition for us, really strong team. And the challenge for us is to make sure that we, don't try to expand from, 8 or 10 countries that we were that Cora was offering in initially that we don't try to run too quickly and move it into All 60 countries. The broader expo is so we're trying to be very methodical, but I've been extremely pleased with the technology, the team, the customer feedback has been great with Court tracks.

我的意思是，具體來說，法院的追踪，我們對整合的進展以及我們在中東和其他司法管轄區的市場滲透情況感到非常高興。我們在今天的電話會議中沒有強調這一點，但我們在澳洲有一些非常好的市場活動，特別是來自 Court Tracks 的可擴展服務。使我們能夠進入煤層氣井，對有腐蝕問題的井進行重新襯砌，並使大量井恢復生產。所以，這對我們來說是一次偉大的收購，我們擁有一支非常強大的團隊。我們面臨的挑戰是確保我們不要試圖從 Cora 最初提供服務的 8 到 10 個國家/地區進行擴張，不要試圖快速將其擴展到所有 60 個國家。展覽範圍更廣，所以我們試著做到非常有條理，但我對這項技術、團隊感到非常滿意，客戶對 Court tracks 的回饋也非常好。

Great, maybe my follow up, Mike, just thinking about the depressed valuation of the equity, you get a net cash, a balance sheet, your guidance would imply, probably $200 million plus free cash flow this year, so you're trading it over 20% for cash flow you at least on our math. How are you, Quinn, the rest of management thinking about buybacks in in this kind of environment and how do you characterize, buybacks versus some of the appeal of buybacks versus other kind of inorganic opportunities that you see in the marketplace today.

太好了，也許我的後續問題，麥克，只是考慮股權的低迷估值，你得到淨現金，資產負債表，你的指導意味著，今年可能有 2 億美元加上自由現金流，所以你用它交易的現金流超過 20%，至少在我們的計算中是這樣。奎因，您和其他管理階層成員如何看待在這種環境下的回購？您如何描述回購的吸引力以及與您在當今市場上看到的其他類型的無機機會相比，回購的吸引力如何？

Sure, it's a great question. I think just to clarify, what we tried to say in the call was a free cash flow margin of about $120 million this year, circus 7%, so. I'll just pause with that on your comment around the $200 million number, but I think more importantly, it's yes, we are trading as many, and all of our peers are trading at depressed values today. We continue to, we've got some headroom available in our existing share. Repur authorization and you know we look at all the capital across. We look at how it competes whether it's CapEx or it's share repurchases or those type of things we look at that and I think it's a good opportunity for us to continue to lean into that here as we go as we continue in 2025 with this, kind of continued market chopping, so to speak.

當然，這是一個很好的問題。我想澄清一下，我們在電話會議中試圖說的是今年的自由現金流利潤率約為 1.2 億美元，約 7%。關於你關於 2 億美元這個數字的評論，我想暫停一下，但我認為更重要的是，是的，我們的交易量和這個數字一樣多，而我們所有同行今天的交易價格都比較低。我們將繼續這樣做，我們現有的份額中還有一定的可用空間。重新獲得授權，您知道我們會審查所有資本。我們觀察它的競爭情況，無論是資本支出還是股票回購，或者諸如此類的事情，我認為這對我們來說是一個很好的機會，讓我們繼續傾向於這一點，因為我們將在 2025 年繼續這種持續的市場波動。

Maybe just a bit of definitions here, Arun, but you know we do expect something north of $200 million in adjusted cash flow from operations, but net of CapEx it would be the previous numbers that we provided.

阿倫，這裡可能只是一些定義，但你知道我們確實預計調整後的營運現金流將超過 2 億美元，但扣除資本支出後，它將是我們之前提供的數字。

Okay, sounds good. I was just looking at the EBITDA taking out CapEx and a little bit of income tax, but we can follow up offline, but thanks a lot, Quinn.

好的，聽起來不錯。我只是在查看扣除資本支出和少量所得稅後的 EBITDA，但我們可以離線跟進，但非常感謝，Quinn。

Thanks.

謝謝。

We now turn to Ati Modak with Goldman Sachs. Your line is open. Please go ahead.

現在我們來談談高盛的阿蒂·莫達克。您的線路已開通。請繼續。

Hi, good morning team. Mike, you kind of gave us a second half versus first half expectation. That was very helpful. Can you talk to us about what factors you are watching as you think about the full year guide, and the revision there and, anything you can share in terms of the sensitivity that you are thinking of to help us understand the potential outcomes.

嗨，大家早安。麥克，你給了我們下半場與上半場的預期。這非常有幫助。您能否與我們談談，在考慮全年指南和修訂時您正在關注的因素，以及您可以分享的任何有關您正在考慮的敏感性的信息，以幫助我們了解潛在的結果。

No, and again, thanks for joining. I think it's a really relevant question. It's, we have had a really over the course of the last, in particular the last I guess 28 days since the second of April, we've had a tremendous level of engagement. Our customers, globally to go back and kind of look at, projects and activity and kind of how they see things playing out the rest of the year and what we've tried to highlight is our best, the best information we have from our customer agents. And I guess how I would, kind of characterize those today is there's they're cautious, especially for the projects that have already been sanctioned, they're going to continue moving those projects forward. We're not seeing, or having any discussions about project stopping or activity stopping or those kind of things. So, we've kind of gone through, a bottom up effort to look at that activity set for the rest of the year, and I think there's just a little bit of a wait and see kind of mentality from our customers. I think more robustly if you look at, just look at the commentary from the from the sub Cre guys about orders and backlog and all those types of things. Our operators and our customers are not going out and buying expensive trees and putting them on a shelf because they just want to spend dollars unnecessarily. I think they're preparing themselves for activity that's going to happen, in the medium term. So, we continue to see that level of activity and that's what we've tried to give guidance to with you guys is kind of how we're seeing things lay out from a from a global standpoint. We tried to highlight a couple of the markets and a couple of the countries where they seem to have some maybe they're going to have some more softness, Mexico, especially the Pemex activity in Mexico, that's really kind of what we were trying to steer towards.

不，再次感謝您的加入。我認為這是一個非常相關的問題。在過去的一段時間裡，特別是自 4 月 2 日以來的最後 28 天裡，我們確實進行了大量的參與。我們全球的客戶會回顧並了解專案和活動，以及他們如何看待今年剩餘時間的情況，而我們試圖強調的是我們從客戶代理那裡獲得的最佳資訊。我想，今天我會如何描述這些，他們很謹慎，特別是對於已經獲得批准的項目，他們將繼續推進這些項目。我們沒有看到或進行任何有關停止專案或停止活動或諸如此類的事情的討論。因此，我們自下而上地研究了今年剩餘時間的活動安排，我認為我們的客戶還是有點觀望的心態。我認為如果你看一下，就會更加堅定地認為，只要看看來自子 Cre 人員關於訂單和積壓以及所有這些類型的事情的評論。我們的運營商和客戶不會出去購買昂貴的樹木並將它們放在貨架上，因為他們只是想不必要地花錢。我認為他們正在為中期即將發生的活動做準備。因此，我們繼續看到這種程度的活動，這就是我們試圖為你們提供的指導，即我們從全球角度看待事物的方式。我們試圖強調幾個市場和幾個國家，這些市場和國家似乎可能會變得更加疲軟，墨西哥，特別是墨西哥的 Pemex 活動，這正是我們試圖引導的。

Awesome that's very helpful. And then you kind of talked about MENA and you just mentioned Mexico, but do you mind elaborating on the other geography as you see activity expectations, anything that you would want to point out and highlight, and then maybe give us the perspective on how you think about the well management and well construction businesses as you walk through that.

太棒了，非常有幫助。然後您談到了中東和北非地區，您剛才提到了墨西哥，但是您介意詳細說明一下您對其他地區的活動預期嗎，任何您想指出和強調的內容，然後也許請您談談您對油井管理和油井建設業務的看法。

Sure. I guess probably a couple that I would highlight is, I think that Latin America is going to have, it's going to be such a tremendous, platform for strong activity and strong growth. We tried to highlight, obviously Guyana is strong, you know medium term we'll see some surname type activity, those type of things. Brazil continues to be robust with, Petrobras and even some of the rig contracting that Petrobras is having conversations around. We're really positive on Argentina. It's a much more positive and constructive climate in Argentina today than what it has been over the course of the last several years. Inflation is more stable when it comes to the unions and those type things, and you know I certainly believe that that's going to give some stability within the country. So Latin America, I think, will continue to be strong. Middle East, we commented earlier, it's always going to be, more resilient than others, Europe. Is still going to be somewhat suppressed with the UK sector of the North Sea, but I think Norway will have some strong activity and across Asia Pacific we highlighted in the previous call and kind of reiterated today that we continue to believe Australia is just because of the timing of some of their projects and those type of things, we were already anticipating a some This in Australia in 2025 and I don't think that's been affected at all by what's happened since Liberation Day. So, I think there's just some good strong levels of activity that can have some strong service related. We did highlight with Mexico, I think the PME activity for Mexico. You've heard from some talk about, down 50% to 60% year on year. We don't have a massive amount of exposure in Mexico overall, but what we're starting to see here right now is non-emex related activity, just kind of some of the market share we have, we're seeing some strong activity here in the second half of the year. So that gives you a little bit of a walk across, my views on it kind of geographically.

當然。我想強調的幾點是，我認為拉丁美洲將會成為強勁活動和強勁成長的巨大平台。我們試圖強調，圭亞那顯然很強大，你知道從中期來看我們會看到一些姓氏類型的活動，諸如此類的事情。巴西繼續與巴西石油保持強勁關係，甚至與巴西石油正在洽談一些鑽井合約。我們對阿根廷非常樂觀。與過去幾年相比，阿根廷目前的氣氛更加積極、更具建設性。當涉及到工會和諸如此類的事情時，通貨膨脹會更加穩定，而且你知道我當然相信這會給國家帶來一定的穩定。因此我認為拉丁美洲將繼續保持強勁。我們之前評論過，中東總是比其他國家（例如歐洲）更有彈性。北海英國部分仍將受到一定抑制，但我認為挪威將有一些強勁的活動，並且在亞太地區，我們在上次電話會議上強調過，並在今天重申，我們仍然相信澳大利亞只是因為他們的一些項目和諸如此類的事情的時機，我們已經預計2025年澳大利亞會出現一些這種情況，我認為這根本沒有受到解放日以來發生的事情的影響。所以，我認為只有一些良好且強勁的活動水平才能帶來一些強大的服務。我們確實強調了墨西哥，我認為是墨西哥的 PME 活動。您可能聽說過，年減 50% 至 60%。總體而言，我們在墨西哥的業務並不大，但我們現在開始看到的是與 emex 無關的活動，只是我們擁有的部分市場份額，我們在今年下半年看到了一些強勁的活動。這樣您就可以從地理角度稍微了解我對此的看法。

That's super helpful. Thank you.

這非常有幫助。謝謝。

Good to speak. Thank you for the questions.

很好說話。謝謝您的提問。

We now turn to Eddie Kim with Barclays. Your line is open. Please go ahead.

現在我們來談談巴克萊銀行的 Eddie Kim。您的線路已開通。請繼續。

Hey, good morning. Just wanted to stay on the theme of recent customer conversations. You mentioned in your release that you're waiting for more clarity around timing of offshore FIDs and in your remarks you highlighted West Africa as one of the regions you expect projects could get pushed out, so. Just curious if you're if you're actually hearing from your customers and getting early indications that project FIDs are likely to get pushed out or if this is more what you expect will happen just based on recent market volatility, any colour there would be great.

嘿，早安。只是想繼續討論最近與客戶的對話主題。您在新聞稿中提到，您正在等待有關海上 FID 時間的更多明確信息，並且在您的評論中強調西非是您預計項目可能會被推遲的地區之一，所以。我只是好奇，如果您真的聽到了客戶的聲音，並得到早期跡象表明專案 FID 可能會被推遲，或者這是否更符合您根據最近的市場波動所預期的情況，那麼無論哪種情況都會很好。

No, and Eddie, good to speak. I guess what I would, this is not from our customers saying, hey, we're going to slow down FID sanctioning. This is just more our interpretation of the tea leaves, so to speak. Let's keep in mind the 2025 activity that's ongoing today is from already pre-approved, sanctioned FIDs. They've already moved into operational phases. So this is just more kind of a. Of an anticipation of given some of the caution from our customers they may very well, delay a warning FIDs, here for some period of time. It's more of an anticipation than it is for any specific data points, but if I've learned nothing over my 30 plus years in the industry, sometimes I try to rely on what my, what the history has been to try to predict how we think things are going to be in the future. So that's as much of it as anything, Eddie.

不，艾迪，很高興發言。我想，這不是來自我們的客戶說的，嘿，我們要放慢 FID 批准的速度。可以這麼說，這只是我們對茶葉的解讀。讓我們記住，今天正在進行的 2025 年活動是來自已經預先批准和認可的 FID。它們已經進入營運階段。所以這只是一種。考慮到我們客戶的一些謹慎，他們很可能會延遲一段時間發出警告 FID。它更多的是一種預期，而不是對任何特定數據點的預測，但如果我在這個行業 30 多年的經驗中沒有學到任何東西，有時我會嘗試依靠我的歷史來預測我們認為未來的事情會如何發展。所以這就是全部了，艾迪。

Understood. Thanks for that clarification. My follow up is just on the potential tariff impact on your business. I realize it's very early days and the situation seems to change by the day. But if the current tariff regime during this kind of 90 day pause period holds, do you have an estimate or range on what type of EBITDA impact we should expect on your business this year and It sounded like this would already be reflected in your guidance for the full year, but and that if the terrorist situation gets worse, it could represent further downside, but if you could confirm that also that that would be great.

明白了。感謝您的澄清。我的後續問題只是關於關稅對您的業務的潛在影響。我意識到現在還為時過早，情況似乎每天都在改變。但是，如果在這種 90 天的暫停期內維持現行關稅制度，您是否對今年 EBITDA 對您的業務的影響有一個估計或範圍？聽起來這已經反映在您對全年的指導中了，但是，如果恐怖主義局勢惡化，可能會進一步帶來下行壓力，但如果您也可以確認這一點，那就太好了。

Quinn, you want to address that.

奎因，你想解決這個問題。

I can take that. I guess consistent with some of our peers' comments, I think it's fair to say that the evolving landscape makes precise estimates of the impact of US tariffs, both on operations and financial results somewhat challenging, but I guess generally we would be less impacted by tariffs than other companies because we're primarily a services company rather than a manufacturer, I guess also 80% of our revenue is derived from activities outside of the United States. Those are probably two important contact points.

我可以接受。我想，與我們一些同行的評論一致，我認為可以公平地說，不斷變化的情況使得準確估計美國關稅對營運和財務業績的影響有些困難，但我想一般來說，我們受關稅的影響會小於其他公司，因為我們主要是一家服務公司，而不是製造商，我想我們 80% 的收入也來自美國以外的活動。這可能是兩個重要的接觸點。

Nevertheless, Steve Russell, our Chief Technology Officer and his team have recently made an initial assessment of US tariffs highlighting two primary elements of the business that could result in higher costs. Number one, we do import large OD pipe as a production input to our two good products business. Domestic sales for that product line would clearly attract US tariffs. However, pipe that's imported and we add value to is that and ultimately re-export is generally not subject to US tariffs because we work through free trade zones and free trade zone regulations, excuse me, would exempt that activity that we do import a bit of activity or a bit of equipment and upgrade it that is not going to ultimately have free trade on exemptions. We also import a small amount of services equipment that may be subject to tariffs.

儘管如此，我們的技術長史蒂夫·拉塞爾和他的團隊最近對美國關稅進行了初步評估，強調了可能導致成本上升的兩個主要業務因素。首先，我們確實進口大外徑管作為我們兩種優質產品業務的生產投入。該產品線的國內銷售顯然會招緻美國關稅。然而，進口的管道以及我們為其增加的價值最終再出口通常不受美國關稅的約束，因為我們通過自由貿易區和自由貿易區法規開展工作，對不起，這將免除我們進口一些活動或一些設備並對其進行升級的活動，而這些活動最終不會在豁免方面進行自由貿易。我們也進口少量可能需要繳納關稅的服務設備。

So I guess the bottom line is our current view is that the potential impact of US tariffs will likely affect activity more so than higher costs for expo, and at least our preliminary estimate based on the current analysis will probably have something less than a $5 million dollar impact of US tariffs. Some of which could obviously be impacted by supply chain adjustments and some of which could be recovered from customers either through existing contract terms, contract adjustments, or ultimately price increases. So at least based on our current assessment, we don't think it's going to be a material driver to results for 2025.

因此，我猜底線是我們目前的觀點是，美國關稅的潛在影響可能會比世博會成本的增加對活動產生更大的影響，至少根據目前的分析，我們初步估計美國關稅的影響可能低於 500 萬美元。其中一些顯然會受到供應鏈調整的影響，而另一些則可以透過現有合約條款、合約調整或最終提價從客戶那裡收回。因此，至少根據我們目前的評估，我們認為它不會成為 2025 年業績的實質驅動因素。

Okay, got it. Thanks for that very helpful colour. Thank you. I'll turn it back.

好的，明白了。非常感謝這個非常有用的顏色。謝謝。我會把它轉回去。

[operator instruction]

[操作員指令]

Now turn to Blake McLean with Daniel Energy Partners. Your line is open, please go ahead.

現在請 Daniel Energy Partners 的 Blake McLean 發言。您的線路已開通，請繼續。

Hey, good morning. Thank you all for taking my call.

嘿，早安。謝謝大家接聽我的電話。

Absolutely, thanks for joining.

當然，感謝您的加入。

Yes, so look, you guys highlighted automation and safety as driving a number of the recent contract awards, and I'm just wondering, are products like Centrify where you remove people from the rig floor, are they just less impacted by some of this volatility because of the safety component and maybe Just talk about the runway for that product and products like that today versus you know where current market penetration might be.

是的，所以你看，你們強調自動化和安全是推動最近許多合約授予的關鍵，我只是想知道，像 Centrify 這樣的產品，你可以將人員從鑽井平台上移除，它們是否因為安全因素而較少受到這種波動的影響，也許只是談論該產品和類似產品的運作方式，而不是你知道當前的市場滲透率。

No, it's a, it's a really good question, and I guess how I would characterize it is, technologies like Centrify and Iang, it really allows us to do two things. Number one, the personnel you do have on the rig floor, there's less amount of time if they have hands-on pipe or they're in the red zone, so you'd massively reduce the opportunity for there to be an HSC incident. Which is very critical and red zone management is something that's very important to, especially to our big IOC customers. This is something they're very focused on, and so this is the technology that's really helpful for that. But secondarily it allows us to reduce the number of personnel that we actually have to place on the rig floor. So, it from our cost standpoint, it reduces the number of personnel, allows us to cover, more rigs with the same headcount. So, it's really kind of It allows us to kind of, have that kind of multiplicative effect of techno technology, improving safety and also for us to kind of repurpose our personnel. And frankly it's been one of those where we're going to introduce it at an appropriate rate because we have expectations around what kind of revenues and what kind of value we add to those operations.

不，這是一個非常好的問題，我想我會如何描述它，像 Centrify 和 Iang 這樣的技術確實允許我們做兩件事。首先，如果鑽井平台上的人員需要操作管道或處於紅色區域，他們的時間就會減少，因此發生 HSC 事故的可能性就會大大降低。這非常關鍵，紅區管理非常重要，特別是對我們的大 IOC 客戶而言。這是他們非常關注的事情，所以這項技術對此確實很有幫助。但其次，它使我們能夠減少實際需要部署在鑽井平台上的人員數量。因此，從我們的成本角度來看，它減少了人員數量，使我們能夠以相同的員工數量覆蓋更多的鑽孔機。因此，它確實讓我們能夠發揮技術的乘數效應，提高安全性，同時也讓我們能夠重新利用我們的人員。坦白說，我們將以適當的速度引入它，因為我們對這些業務的收入和價值有所預期。

So we're going to introduce those technologies and make sure that we're sharing in the benefit and sharing in the value with our customers as well as. Are because you know we invested heavily in those type technologies, throughout the pandemic and those type of things so that's where we're really trying to get to it and really using, machine learning, automation, those type of things, not only as a differentiator but also as a way for us to make operations. Safer and more repeatable. All of a sudden now you're torquing up to a fixed torque every time you're recording it and you're not relying on somebody on the rig floor who's literally historically was going by sound or going by feel as you're torquing up connections. We've now kind of moved beyond that. So, it's been a tremendous advancement from an operational standpoint.

因此，我們將引入這些技術，並確保與我們的客戶分享利益和價值。因為你知道，在整個疫情期間，我們在這些技術上投入了大量資金，所以我們真正在努力實現這些技術，並真正利用機器學習、自動化等技術，這不僅是一種差異化因素，也是一種運作方式。更安全、更可重複。突然之間，每次記錄時你都會將其扭矩調到一個固定的扭矩，並且你不再依賴於鑽井平台上的某個人，他們過去是根據聲音或感覺來判斷你扭矩連接的。現在我們已經超越了這一點。因此，從營運角度來看，這是一個巨大的進步。

Good, that's helpful. Thank you. I guess my next question, I would ask you guys a little bit about the M&A market. I mean, you guys have been active there and grown through M&A. It's, I think you characterize it as a dynamic operating environment, which I thought was great. Is that volatility bringing people to the table, is it pushing people? Away due to, movements and spreads. So, any colour you could give on the M&A market today and what that looks like for y'all.

很好，很有幫助。謝謝。我想我的下一個問題是問你們一些關於併購市場的問題。我的意思是，你們一直活躍在那裡並透過併購實現成長。我認為您將其描述為一個動態的操作環境，我認為這很棒。這種波動是否會吸引人們參與進來，或推動人們參與？由於運動和傳播而消失。那麼，您能對現今的併購市場做出什麼描述，以及它對大家來說是什麼樣子的嗎？

Yes Blake, that's a hard one to that's a hard one for me to quantify. What I can tell you is we continue to work really hard on things that we believe will fit well under the Expo umbrella that will help us, be more relevant to our customers, help us, generate a creative margin and a creative cash generation, those type of things. We continue to look at them and there's still opportunities out there. And you know it just depends on you have to have some patience with these kinds of things, several of the recent acquisitions that we completed, those were multi-year endeavours. It was two years in the process from the time that we started it until we actually.

是的，布萊克，這對我來說很難量化。我可以告訴你們的是，我們會繼續努力工作，我們相信這些工作非常適合世博會的框架，它們將幫助我們，更貼近我們的客戶，幫助我們，創造創造性的利潤和創造性的現金流，諸如此類的事情。我們繼續關注它們，發現仍然有機會。你知道這取決於你必須對這些事情有一定的耐心，我們最近完成的幾項收購都是多年的努力。從我們開始到真正開始，這個過程花了兩年的時間。

So, we still have opportunities. We still have things we want to go out and do and you know how successful we can be in getting those closed. Only time will tell, but I think we've demonstrated that we're a good platform, we're a good portfolio to bring those things into. And when you start looking at some of the smaller type acquisitions, one of the key elements is, we've had a really good ability to retain the management and the operational teams from the acquisitions we've made. We've got a good platform and I think we have a. Pretty good approach when it comes to integration, those kinds of things. I think it's a good home and a good destination, and we'll continue to work hard on those, and I still believe we'll be able to consummate some other, bolt ones. What that looks like and when we'll get them done is a little bit to be determined, but we're still working hard on those kinds of things.

所以，我們仍然有機會。我們仍然有一些想做的事情，你知道我們在完成這些事情方面能有多成功。只有時間才能證明，但我認為我們已經證明我們是一個很好的平台，我們是一個很好的投資組合，可以將這些東西帶入其中。當你開始關註一些較小規模的收購時，你會發現一個關鍵因素是，我們確實有能力保留所收購公司的管理和營運團隊。我們有一個很好的平台，我認為我們有一個。當談到整合之類的事情時，這是非常好的方法。我認為這是一個好的家和一個好的目的地，我們會繼續努力，我仍然相信我們能夠完成其他一些事情。這些事情看起來怎麼樣以及我們什麼時候能完成它們還有待確定，但我們仍在努力完成這些事情。

I think the only thing I would supplement Blake is the current balance sheet does give us some flexibility. We think we can do bolt on M&A as well as acquire shares so we can you know walk and chew gum at the same time. Scale also probably gives us some broader alternative sets in terms of funding alternatives so we have balance sheet capacity to take on a bit of leverage, but as Mike has said on a number of occasions in the past, M&A is going to be evaluated relative to, where export trades, we investor capital, we think it will have the most impact, but we can do both.

我認為我唯一要補充的是布萊克目前的資產負債表確實給了我們一些彈性。我們認為我們可以進行附加併購以及收購股份，這樣我們就可以一邊走路一邊嚼口香糖。規模也可能為我們提供一些更廣泛的融資選擇，因此我們的資產負債表有能力承擔一些槓桿，但正如邁克過去多次說過的那樣，併購將根據出口貿易、投資者資本進行評估，我們認為它將產生最大的影響，但我們可以兩者兼顧。

Understood, thanks very much for the colour y'all.

明白了，非常感謝你們的顏色。

Great thank you appreciate it.

非常感謝。

Ladies and gentlemen, we have no further questions, so this concludes our Q&A and today's conference call. We'd like to thank you for your participation. You may now disconnect your lines.

女士們、先生們，我們沒有其他問題了，我們的問答環節和今天的電話會議到此結束。我們感謝您的參與。現在您可以斷開線路了。