Core Insights - Shanghai Henlius Biotech, Inc. has entered into a licensing agreement with Dr. Reddy's Laboratories for the commercialization of its daratumumab biosimilar HLX15 in 43 countries, including 42 European regions and the U.S. [1][2] - The agreement allows Henlius to receive up to $131.6 million, which includes a $33 million upfront payment and potential milestone payments, along with royalties on annual net sales [2][3] - HLX15 is a fully human anti-CD38 monoclonal antibody developed by Henlius, aimed at treating multiple myeloma, and has shown comparable safety and efficacy to reference products in clinical studies [4][9] Company Overview - Henlius is a global biopharmaceutical company focused on providing high-quality, affordable biologic medicines, particularly in oncology, autoimmune diseases, and ophthalmic diseases [8] - The company has launched six products in China and has four approved for marketing in overseas markets, with a robust pipeline of over 50 molecules [9] - Dr. Reddy's Laboratories is a global pharmaceutical company with a strong focus on oncology and a commitment to providing affordable medicines, operating in over 75 countries [6][7] Strategic Collaboration - The partnership with Dr. Reddy's is expected to enhance the global market competitiveness of both companies in oncology treatment, aiming to improve patient access to advanced biologics [3][4] - Henlius' advanced manufacturing capabilities and Dr. Reddy's extensive commercialization experience are seen as complementary strengths that will facilitate the effective delivery of HLX15 to the U.S. and European markets [3][4] - The collaboration signifies a pivotal moment for Henlius in expanding its global partner network and enhancing its product reach [3][8]

Group 1 - The focus has shifted from primarily tech stocks to a broader coverage of the offshore drilling, supply industry, and shipping industry, including tankers, containers, and dry bulk [1] - There is an emerging interest in the fuel cell industry, which is still in its nascent stage [1] - The experience includes navigating significant market events such as the dotcom bubble, the aftermath of the World Trade Center attacks, and the subprime crisis [1] Group 2 - The individual has a background in auditing with PricewaterhouseCoopers before transitioning to day trading nearly 20 years ago [1] - The trading strategy involves both long and short bets, primarily on an intraday basis and occasionally over the short to medium term [1] - The location of operations is in Germany, indicating a European market perspective [1]

Financial Data and Key Metrics Changes - Revenues for Q3 2024 were $342 million, with a gross profit of $66 million and net income of $29.5 million, resulting in adjusted EBITDA of $88 million and positive operating cash flow of $56 million, leading to strong free cash flow of $53 million [6][8][13] - Year-to-date revenues reached $1 billion with a gross profit of $161 million and net income of $36 million, while adjusted EBITDA was $232 million, and positive free cash flow was $98 million [8][12] Business Line Data and Key Metrics Changes - The Well Interventions segment showed strong utilization in the North Sea, Gulf of Mexico, Brazil, and Australia, achieving a solid overall uptime efficiency of 99% for the quarter [9][10] - The Robotics segment performed well, operating 6 vessels with high utilization, particularly in renewables-related projects [11][12] - The Shallow Water Abandonment business faced challenges due to hurricanes, leading to lower-than-expected utilization [12][24] Market Data and Key Metrics Changes - The company operates globally with minimal disruption, with operations in Europe, Asia Pacific, Brazil, Africa, the Gulf of Mexico, and the U.S. East Coast [9] - The Gulf of Mexico remains a strong market for Helix, with contracts secured for the Q5000 and Q4000 [19][40] Company Strategy and Development Direction - The company is focusing on long-term contracts with Petrobras and Shell, which provide a strong backlog and improved market rates for 2025 [8][19] - The Robotics segment is expected to benefit from growth in the offshore wind market, while the Shallow Water Abandonment segment is anticipated to rebound in 2025 [24][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position, highlighting strong EBITDA performance despite challenges in the Shallow Water Abandonment segment [24][26] - The company anticipates a $60 million to $100 million increase in EBITDA for well interventions in 2025, driven by new contracts and improved rates [26][57] Other Important Information - The company has a strong liquidity position with cash and cash equivalents of $324 million and total liquidity of $399 million [7][14] - Funded debt stands at $324 million with no significant maturities until 2029, and the company is targeting $20 million to $30 million in share repurchases for 2024 [18][19] Q&A Session Summary Question: Visibility on well intervention improvement for next year - Management indicated that budgeting shows improvement over the current year, with increased bidding activity [30][31] Question: Free cash flow expectations for next year - Management is bullish on free cash flow generation, expecting it to be in the $200 million range, with plans for capital allocation focused on growth and share repurchases [32][34] Question: Impact of hurricanes on revenue - Management confirmed that the $10 million revenue loss in Q3 due to hurricanes will not be recouped in Q4 [35] Question: EBITDA impact from shut-ins - Management expects minimal impact from the Droshky shut-in, while the Thunder Hawk shut-in is estimated to result in a couple of million dollars loss for the quarter [36] Question: ROV market pricing expectations - Management anticipates a tightening market with ROV rates expected to increase by at least 10% next year [66]

Backlog and Demand - As of September 30, 2024, the company's consolidated backlog totaled approximately $1.6 billion, with $261 million expected to be performed over the remainder of 2024[107]. - Approximately 86% of the total backlog is represented by contracts with Shell, ExxonMobil, Trident Energy, Petrobras, and Talos[107]. - The company expects continued strong performance driven by increasing demand for decommissioning services internationally and growth in the offshore renewables trenching market[108]. - The demand for shallow water decommissioning services in the Gulf of Mexico is expected to remain soft in the near term but should grow over the mid- to long-term[108]. - The demand for P&A services is expected to grow over the mid- to long-term due to regulatory pressures and a shift towards renewable energy[105]. Financial Performance - Net income for the three months ended September 30, 2024, was $29,514 thousand, compared to $15,560 thousand for the same period in 2023, representing an increase of 90%[113]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $231,506 thousand, up from $202,771 thousand in the same period of 2023, reflecting a growth of 14.2%[113]. - Free Cash Flow for the nine months ended September 30, 2024, was $97,734 thousand, significantly higher than $41,920 thousand for the same period in 2023, indicating an increase of 132.8%[114]. - Consolidated net revenues for the nine-month period ended September 30, 2024, increased by 5% to $1,003.4 million from $954.6 million in the same period in 2023[130]. - Gross profit for the nine-month period ended September 30, 2024, increased by $9.6 million to $160.7 million compared to $151.1 million in the same period in 2023[136]. Revenue Breakdown - Net revenues for the three months ended September 30, 2024, decreased by 13% to $342,419 thousand from $395,670 thousand in the same period in 2023[117]. - Well Intervention revenues decreased by 19% to $182,667 thousand for the three months ended September 30, 2024, compared to $225,367 thousand in the same period in 2023[116]. - Robotics revenues increased by 12% to $84,526 thousand for the three months ended September 30, 2024, up from $75,646 thousand in the same period in 2023[119]. - Shallow Water Abandonment revenues decreased by 18% to $71,595 thousand for the three months ended September 30, 2024, compared to $87,272 thousand in the same period in 2023[120]. - Production Facilities revenues decreased by 15% to $20,695 thousand for the three months ended September 30, 2024, down from $24,469 thousand in the same period in 2023[121]. Expenses and Cash Flow - Selling, general and administrative expenses decreased to $21.1 million for Q3 2024 from $27.8 million in Q3 2023, primarily due to lower employee compensation costs[126]. - Net interest expense increased to $5.7 million for Q3 2024 compared to $4.2 million in Q3 2023, reflecting higher debt levels and rates[126]. - Operating cash flows for the nine-month period ended September 30, 2024, were $108.1 million, significantly up from $57.7 million in the same period of 2023, driven by higher operating income and lower working capital outflows[149]. - Cash flows used in investing activities decreased to $(10.3) million for the nine-month period ended September 30, 2024, compared to $(15.8) million in the same period of 2023, indicating reduced capital expenditures[148]. - Net cash outflows from financing activities for the nine-month period ended September 30, 2024, were $(105.6) million, primarily due to the retirement of the 2026 Notes and earn-out payments[150]. Debt and Liquidity - Long-term debt, excluding current maturities, was $305.5 million as of September 30, 2024, down from $313.4 million on December 31, 2023[141]. - Liquidity at September 30, 2024, was $398.8 million, down from $431.5 million at December 31, 2023, primarily due to higher letter of credit usage related to the Nigeria project[144]. - The company expects sufficient cash on hand and internally generated cash flows to fund operations and capital spending for at least the next 12 months[145]. Tax and Other Financial Metrics - Income tax provision increased to $22.5 million for the nine-month period ended September 30, 2024, compared to $9.6 million in the same period in 2023, with effective tax rates of 38.8% and 35.5% respectively[139]. - Net other expense decreased to $2.6 million for the nine-month period ended September 30, 2024, down from $10.6 million in the same period in 2023[138]. - The company recorded foreign currency translation gains of $35.3 million for the nine-month period ended September 30, 2024, impacting accumulated other comprehensive loss[160]. Operational Capacity - The company operates a well intervention fleet that includes seven purpose-built vessels and 12 subsea intervention systems, along with 39 work-class ROVs and six trenchers[100]. - The change in fair value of contingent consideration reflects an improvement in Helix Alliance's results during the third quarter 2023, with the final earn-out paid on April 3, 2024[125]. - The company anticipates lower availability under the Amended ABL Facility due to fewer eligible receivables while the Q4000 performs work in Nigeria[145].

分组1 - Helix Energy reported quarterly earnings of $0.19 per share, missing the Zacks Consensus Estimate of $0.21 per share, representing an earnings surprise of -9.52% [1] - The company posted revenues of $342.42 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 3.47%, compared to year-ago revenues of $395.67 million [1] - Over the last four quarters, Helix Energy has surpassed consensus EPS estimates only once and has topped consensus revenue estimates two times [1] 分组2 - Helix Energy shares have declined approximately 5.5% since the beginning of the year, contrasting with the S&P 500's gain of 22.7% [2] - The company's earnings outlook is mixed, with the current consensus EPS estimate for the coming quarter at $0.04 on revenues of $303.11 million, and $0.29 on revenues of $1.32 billion for the current fiscal year [4] - The Zacks Industry Rank for Oil and Gas - Field Services is currently in the bottom 41% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [5]

Financial Performance - Helix reported net income of $29.5 million, or $0.19 per diluted share, for Q3 2024, a decrease from $32.3 million, or $0.21 per diluted share, in Q2 2024[2]. - Adjusted EBITDA for Q3 2024 was $87.6 million, down from $96.9 million in Q2 2024[2]. - For the nine months ended September 30, 2024, net income was $35.5 million, or $0.23 per diluted share, compared to $17.5 million, or $0.11 per diluted share, for the same period in 2023[3]. - Net revenues for the three months ended September 30, 2024, were $342,419 thousand, a decrease of 13.4% compared to $395,670 thousand for the same period in 2023[25]. - Gross profit for the three months ended September 30, 2024, was $65,665 thousand, down 18.4% from $80,545 thousand in the prior year[25]. - Net income for the three months ended September 30, 2024, was $29,514 thousand, representing an increase of 89.6% compared to $15,560 thousand for the same period in 2023[25]. - Adjusted EBITDA for the three months ended September 30, 2024, was $87,621 thousand, compared to $96,385 thousand in the same period last year, reflecting a decrease of 9.1%[27]. - Free cash flow for the three months ended September 30, 2024, was $52,645 thousand, an increase from $23,366 thousand in the prior year[27]. - The company reported a basic earnings per share of $0.19 for the three months ended September 30, 2024, compared to $0.10 for the same period in 2023, an increase of 90%[25]. Revenue Breakdown - Well Intervention revenues decreased by $42.0 million, or 19%, in Q3 2024 due to increased transit and mobilization days[6]. - Robotics revenues increased by $3.3 million, or 4%, in Q3 2024, attributed to higher vessel, trenching, and ROV activities[8]. - Shallow Water Abandonment revenues increased by $20.8 million, or 41%, in Q3 2024, driven by increased vessel and heavy lift activity[10]. - Shallow Water Abandonment revenues decreased by $15.7 million, or 18%, in Q3 2024 compared to Q3 2023, primarily due to lower vessel and system utilization[11]. - Production Facilities revenues decreased by $4.7 million, or 19%, in Q3 2024 compared to the prior quarter, attributed to lower oil and gas production and prices[12]. Cash Flow and Liquidity - Cash flows from operating activities for Q3 2024 were $55.7 million, compared to $31.6 million in Q2 2024[3]. - Free cash flow for Q3 2024 was $52.6 million, an increase from $23.4 million in Q2 2024[3]. - Operating cash flows were $55.7 million in Q3 2024, a significant increase from $(12.2) million in the prior quarter and $31.6 million in Q3 2023[18]. - Free Cash Flow was $52.6 million in Q3 2024, compared to $(16.2) million in the prior quarter and $23.4 million in Q3 2023, driven by higher operating cash flows[19]. - Cash and cash equivalents totaled $324.1 million as of September 30, 2024, with total liquidity of $398.8 million[19]. - Cash and cash equivalents as of September 30, 2024, were $324,120 thousand, a slight decrease from $332,191 thousand at the end of 2023[26]. Debt and Liabilities - Consolidated long-term debt was $314.7 million on September 30, 2024, resulting in negative Net Debt of $9.4 million[19]. - Long-term debt, including current maturities, was $314,673 thousand as of September 30, 2024, compared to $227,257 thousand in the prior year, indicating an increase of 38.5%[27]. - Current liabilities decreased to $303,219 thousand as of September 30, 2024, down from $448,618 thousand at the end of 2023, a reduction of 32.4%[26]. Operational Metrics - Overall Well Intervention vessel utilization was 97% in Q3 2024, up from 94% in Q2 2024[6]. - Vessel utilization (excluding heavy lift) was 76% in Q3 2024, down from 89% in Q3 2023, while P&A and Coiled Tubing systems utilization declined to 607 days, or 25%[11]. - The company entered into three well intervention contracts, increasing its backlog by over $800 million[4]. Expenses - Selling, general and administrative expenses were $21.1 million, or 6.2% of revenue, in Q3 2024, down from $22.3 million, or 6.1% of revenue, in the prior quarter[14]. - Regulatory certifications for vessels and systems were $8.9 million in Q3 2024, down from $10.7 million in the prior quarter and $17.9 million in Q3 2023[18]. - Other expense, net was $0.0 million in Q3 2024, compared to $0.4 million in the prior quarter, primarily due to a charge related to incentive credits[15]. Assets - Total assets as of September 30, 2024, were $2,661,149 thousand, an increase of 4.1% from $2,556,036 thousand at the end of 2023[26].

Company Overview - Helix Energy (HLX) shares increased by 5.5% to $10.80, following a period of 10.7% loss over the past four weeks, indicating a significant recovery in stock performance [1] - The company specializes in oilfield services, particularly in Well Intervention, which extends the life of existing wells and optimizes production [2] Market Demand and Performance - There is a rising demand for Helix Energy's services in offshore markets, including the U.S. Gulf of Mexico, U.S. East Coast, and Brazil, contributing to the company's growth [2] - Despite favorable commodity pricing, there is a slowdown in drilling activities as upstream players focus on stockholder returns rather than increasing output [2] Earnings Expectations - Helix Energy is projected to report quarterly earnings of $0.21 per share, reflecting a year-over-year increase of 10.5%, while revenues are expected to be $343.74 million, down 13.1% from the previous year [3] - The consensus EPS estimate has been revised 16.7% higher in the last 30 days, indicating a positive trend that may lead to price appreciation [4] Industry Context - Helix Energy operates within the Zacks Oil and Gas - Field Services industry, which includes other companies like Subsea 7 SA (SUBCY), that has also experienced stock fluctuations [4] - Subsea 7's EPS estimate remains unchanged at $0.29, representing a significant year-over-year increase of 163.6% [5]

Petrobras (PBR) , a leading energy company in Brazil, and Helix Energy Solutions Group, Inc. (HLX) , a Houston-based provider of oil and gas equipment and services, signed new three-year charter and service contracts for the Siem Helix 1 and Siem Helix 2 vessels. These advanced, riser-based well-intervention vessels will operate in offshore Brazil, with the contracts valued at approximately $786 million. This move continues the companies' longstanding partnership, ensuring that the energy needs in the Santo ...

Financial Performance - Net revenues for the Well Intervention segment were $224.7 million and $441.1 million for the three- and six-month periods ended June 30, 2024, respectively, compared to $154.2 million and $296.7 million for the same periods in 2023[156] - Income from operations for the Robotics segment was $28.4 million and $33.9 million for the three- and six-month periods ended June 30, 2024, respectively, compared to $17.5 million and $22.6 million for the same periods in 2023[156] - The company's total net revenues were $364.8 million and $661.0 million for the three- and six-month periods ended June 30, 2024, respectively, compared to $308.8 million and $558.9 million for the same periods in 2023[156] - Income before income taxes was $47.0 million and $19.0 million for the three- and six-month periods ended June 30, 2024, respectively, compared to $10.4 million and $3.2 million for the same periods in 2023[156] - Consolidated net revenues for Q2 2024 increased by 18% compared to Q2 2023, driven by higher revenues in Well Intervention, Robotics, and Production Facilities segments[181] - Consolidated net revenues increased by 18% to $661.0 million for the six-month period ended June 30, 2024, compared to $558.9 million in the same period in 2023[192] - Well Intervention segment revenues grew by 49% to $441.1 million, driven by higher activity levels[192][194] - Robotics segment revenues increased by 10% to $131.6 million, reflecting steady growth in demand[192] - Well Intervention segment gross profit surged by 2,073% to $56.8 million, primarily due to higher revenues and increased activity[194] - Shallow Water Abandonment segment reported a gross loss of $8.1 million, compared to a gross profit of $28.5 million in the prior year[195] - Free Cash Flow improved to $45.1 million in 2024, up from $18.6 million in 2023, driven by stronger operating cash flows[208] - Well Intervention segment revenues increased by 46% to $224.7 million in Q2 2024 compared to $154.2 million in Q2 2023[209] - Robotics segment revenues grew by 16% to $81.2 million in Q2 2024 from $70.1 million in Q2 2023, driven by higher chartered vessel days and ROV activities[211] - Production Facilities revenues increased by 10% to $25.4 million in Q2 2024 compared to $23.1 million in Q2 2023, reflecting higher oil and gas production[212] - Gross profit for Well Intervention surged by 382% to $33.6 million in Q2 2024 from $7.0 million in Q2 2023[209] - Robotics gross profit increased by 58% to $30.9 million in Q2 2024 from $19.5 million in Q2 2023[209] - Shallow Water Abandonment gross profit declined by 92% to $1.7 million in Q2 2024 from $21.0 million in Q2 2023[215] Segment Performance - Shallow Water Abandonment revenues decreased by 33% in Q2 2024 compared to Q2 2023, with vessel utilization dropping to 58% from 78%[182] - Robotics gross profit increased by $11.4 million in Q2 2024 compared to Q2 2023, driven by higher revenues and profit margin projects[186] - Production Facilities gross profit increased by $1.2 million in Q2 2024 compared to Q2 2023, primarily due to higher segment revenues[187] - Shallow Water Abandonment segment revenues decreased by 38% to $77.7 million due to lower activity levels and softer Gulf of Mexico shelf market conditions[192][193] - Vessel utilization for Shallow Water Abandonment declined to 49% in 2024 from 68% in 2023, reflecting reduced market activity[193] - Shallow Water Abandonment revenues decreased by 33% to $50.8 million in Q2 2024 from $76.3 million in Q2 2023[209] - Chartered vessel days for Robotics increased to 528 days in Q2 2024 from 435 days in Q2 2023[211] - ROV and trencher utilization rose to 76% in Q2 2024 from 58% in Q2 2023[211] Expenses and Costs - Deferred contract costs totaled $24.1 million as of June 30, 2024, compared to $36.6 million as of December 31, 2023, with amortization of $11.0 million and $31.3 million for the three- and six-month periods ended June 30, 2024, respectively[146] - Share-based compensation related to PSUs was $1.5 million and $2.8 million for the three- and six-month periods ended June 30, 2024, respectively, compared to $1.2 million and $2.4 million for the same periods in 2023[151] - Contributions to defined contribution plans totaled $1.4 million and $2.8 million for the three- and six-month periods ended June 30, 2024, respectively, compared to $1.0 million and $2.1 million for the same periods in 2023[154] - Selling, general, and administrative expenses decreased to $22.3 million in Q2 2024 from $24.0 million in Q2 2023, mainly due to lower employee compensation costs[188] - Net other expense was $0.4 million in Q2 2024, compared to $5.7 million in Q2 2023, which included an $11.7 million foreign currency loss related to the devaluation of the Nigerian naira[189] - Net interest expense increased to $5.9 million in Q2 2024 from $4.2 million in Q2 2023, primarily due to interest on 2029 Notes[217] - Foreign currency translation losses of $6.4 million recorded for the six-month period ended June 30, 2024[242] Backlog and Contracts - Consolidated backlog as of June 30, 2024 totaled approximately $873 million, with $443 million expected to be performed in the remainder of 2024[173] - Contracts with Shell, ExxonMobil, Subsea 7, Trident Energy, Petrobras, and the HP I agreement represented 73% of the total backlog as of June 30, 2024[173] - The company's Robotics segment has vessel charters with expiration dates ranging from 2025 to 2030, including the Grand Canyon II (December 2030) and the Grand Canyon III (May 2028)[159] Long-Term Incentives and Share Issuance - The company's 2005 Long-Term Incentive Plan was amended to authorize 7.0 million additional shares for issuance, with approximately 9.5 million shares available as of June 30, 2024[150] Asset Retirement Obligations - Asset retirement obligations (AROs) increased to $64.2 million as of June 30, 2024, from $61.4 million at the beginning of the year, with accretion expense of $2.8 million for the six-month period[159] Market and Growth Outlook - The company expects strong performance in 2024, driven by international demand for decommissioning services and growth in offshore renewables trenching markets[203] - Mid- to long-term growth is anticipated in shallow water decommissioning services in the Gulf of Mexico, despite near-term softness[203] Adjusted EBITDA and Net Debt - Adjusted EBITDA for Q2 2024 was $96.9 million, up from $71.3 million in Q2 2023[176] - Net debt as of June 30, 2024 was $43.6 million, compared to $29.5 million as of December 31, 2023[178] Market Risks - Exposure to market price risks related to oil and natural gas in offshore production facilities[243]

Financial Performance and Key Metrics - The company generated revenues of $661 million, gross profits of $95 million, and net income of $6 million for the second quarter of 2024, with adjusted EBITDA of $144 million [7][66] - Year-to-date net income increased by $21 million, despite pre-tax losses related to the redemption of convertible notes [7] - Adjusted EBITDA for the quarter was $97 million, with negative operating cash flow of $12 million, resulting in negative free cash flow of $16 million [16][71] Business Segment Performance - The Well Intervention segment achieved strong utilization across the Gulf of Mexico, North Sea, Europe, Brazil, and Australia, with overall uptime efficiency of 98.9% [8][66] - Robotics had an exceptional quarter, operating six vessels with strong utilization, particularly in renewable energy projects [18][66] - The shallow-water abandonment business faced challenges due to a late start to the season and unexpected weather conditions, impacting utilization [68][91] Market Data and Key Metrics - In Brazil, a 40% increase in rates year-over-year is expected going into 2025, with utilization projected to extend into 2028 [12] - The Gulf of Mexico market remains strong, supporting improving rates and expected high utilization for the Q4000 and Q5000 vessels [20][66] - The company anticipates a rebound in demand for shallow water decommissioning in 2025, despite a soft market in 2024 [24][101] Company Strategy and Industry Competition - The company is focused on securing long-term contracts at market rates for its well intervention assets, with expectations of significant EBITDA growth in 2025 [33][103] - The robotics segment is benefiting from a tight market, with strong demand in both oil and gas and renewables [100][104] - The company plans to continue share repurchases and explore bolt-on acquisitions to enhance value creation for shareholders [80] Management Commentary on Operating Environment and Future Outlook - Management expressed optimism about the second half of 2024, expecting it to be on par or slightly stronger than the first half [73] - The company is adjusting its guidance for free cash flow to $90 million to $125 million, reflecting anticipated working capital inflows [71] - Management noted that the shallow water abandonment market is difficult to forecast but believes in a solid long-term foundation due to ongoing customer needs [43][101] Other Important Information - Funded debt stands at $328 million, with cash and cash equivalents of $275 million, resulting in a liquidity position of $370 million [19][95] - The company is targeting $20 million to $30 million in share repurchases for 2024, with $10 million completed year-to-date [19] Q&A Session Summary Question: Can you discuss the typical seasonal cycle for robotics? - Management indicated that ROVs are on longer-term contracts, with trenching being more affected by seasonality, but they expect a strong winter season [30][31] Question: How is the shallow water abandonment business being managed? - Management acknowledged the current soft market but is maintaining capacity to respond to a potential rebound in 2025, incurring additional costs in the process [34][35] Question: What is the outlook for well intervention contracts? - Management is in negotiations for longer-term contracts at higher rates, with expectations to announce details before the end of the year [33][110]