Financial Data and Key Metrics Changes - Overall first quarter revenue was $303.1 million, up 2.1% year-over-year but down 11.7% sequentially [23] - Adjusted EBITDA for Q1 2025 was $62.5 million with margins of 20.6%, down 100 basis points year-over-year [24] - Free cash flow for Q1 2025 was negative $9.6 million with CapEx at $30 million [26] - Net debt to adjusted EBITDA was 0.93, remaining below the one times target for three consecutive quarters [27] Business Line Data and Key Metrics Changes - Year-over-year growth was observed in Abu Dhabi, Algeria, Kuwait, Iraq, and Libya, partially offset by a slow start in Saudi Arabia [23] - The sequential decrease in Saudi was mainly due to slowdowns in main projects during Ramadan [24] Market Data and Key Metrics Changes - Most markets in the Middle East, apart from Saudi Arabia, were flat to up in Q1 2025 compared to Q1 2024 [22] - The geopolitical and economic environment has led to lower oil prices and rig counts in certain countries [22] Company Strategy and Development Direction - The company is adapting its long-term strategy to fit current market conditions, focusing on right-sizing fixed costs and reallocating resources [13] - The company anticipates growth in 2025 and 2026 due to a larger set of incremental contract opportunities and recent contract wins [13][14] - Investment in technology and innovation is a key focus, particularly in Kuwait and North Africa [15][16] Management's Comments on Operating Environment and Future Outlook - The management highlighted a resetting of the oil cycle, with expectations of a softening market in Saudi Arabia but growth opportunities in unconventional gas [6][7] - The company remains optimistic about its positioning in the MENA region, expecting to outperform the market due to favorable project exposure [32] Other Important Information - The company is undergoing a tender process to convert outstanding warrants into equity [29] - The outlook for the MENA region remains favorable, with upstream spending expected to be durable [31] Q&A Session Summary Question: How does Saudi's upstream spending interplay with OPEC's actions? - Management indicated that Saudi's unconventional activities will continue to grow, while conventional activities may see a drop [40][41] Question: What are the expectations for margins recovery? - Management stated that margins are expected to improve but may not reach 25% until 2026 [48][49] Question: What are the pricing trends in the Middle East? - Management noted that pricing is expected to soften due to increased capacity and competition [56] Question: What growth opportunities exist in Kuwait? - Management highlighted that Kuwait is tendering for multiple contracts across various segments, which supports growth expectations [58][59] Question: What is the status of contracts in North Africa? - Management mentioned that many contracts in North Africa are expected to be awarded in the second half of the year, with potential for significant growth [66][70]

Financial Data and Key Metrics Changes - Overall first quarter revenue was $303.1 million, up 2.1% year over year but down 11.7% sequentially [21] - Adjusted EBITDA for Q1 2025 was $62.5 million with margins of 20.6%, down 100 basis points year over year [22] - Earnings per share adjusted for charges and credits was 14 cents for Q1 2025, with charges impacting adjusted EBITDA being the lowest for many periods [23] - Cash flow from operations during Q1 2025 was $20.5 million, with free cash flow being negative $9.6 million due to increased Days Sales Outstanding (DSO) [24] - Gross debt as of March 31 was $366 million, with net debt at $288 million, maintaining a net debt to adjusted EBITDA ratio of 0.93 [25] Business Line Data and Key Metrics Changes - Year-over-year growth was observed in Abu Dhabi, Algeria, Kuwait, Iraq, and Libya, partially offset by a slow start in Saudi Arabia [21] - The sequential decrease in Saudi Arabia was mainly due to slowdowns in main projects during Ramadan [22] - The company expects to grow in Oman and UAE due to strong contract bases and new contract wins [12][21] Market Data and Key Metrics Changes - The overall market in the Middle East is expected to remain stable to slightly up, with Saudi Arabia experiencing a decline [82] - Kuwait is projected to be the biggest growth market due to added rigs and capacity [84] - North Africa is expected to see stable growth, with opportunities for significant market share increase [70] Company Strategy and Development Direction - The company is adapting its long-term strategy to right-size its fixed cost structure and reallocate resources to areas of growth [11] - The focus remains on countercyclical investing, with plans to capitalize on downturn opportunities [19][75] - The company aims to be a top player in every segment within the countries it operates, leveraging its existing relationships and market footprint [76] Management's Comments on Operating Environment and Future Outlook - The management highlighted the geopolitical and economic uncertainties impacting oil demand and supply, with expectations of a market reset [5][7] - Despite the challenges, the company remains optimistic about growth opportunities in the MENA region, particularly in gas development [31] - The outlook for 2025 remains unchanged, with expectations of revenue growth driven by recent contract wins and technology deployments [26] Other Important Information - The company is undergoing a tender process to convert outstanding warrants into equity to improve its capital structure [28] - The company has reshaped its back office and implemented new processes and controls over the past two years [28] Q&A Session Summary Question: How does Saudi upstream spending interplay with OPEC's actions? - Management indicated that Saudi Arabia's unconventional projects will continue to grow, while conventional activity is expected to decline [39][40] Question: What are the expectations for margins recovery? - Management stated that margins are expected to improve but will not return to 25% by year-end, aiming for recovery in 2026 [47][48] Question: What are the pricing trends in the Middle East? - Management noted that pricing is expected to soften due to increased competition and the nature of long-term contracts [55] Question: What growth opportunities exist in Kuwait? - Management highlighted that Kuwait is tendering for various contracts, and the company is well-positioned to capture significant market share [59] Question: What is the status of contracts in North Africa? - Management expects many contracts to be awarded in the second half of the year, with potential for significant growth in Libya and Egypt [67][70] Question: How does the company view joint ventures in the region? - Management expressed confidence in their market position and plans to invest during downturns rather than pursue joint ventures [75]