Financial Data and Key Metrics Changes - Total operating revenues for Q4 2025 were $259.4 million, a decrease of $17.7 million or 6.4% from Q3 2025, primarily due to a $16 million decrease in day rate revenue [8] - Adjusted EBITDA for Q4 2025 was $105.4 million, bringing full year adjusted EBITDA to $470.1 million, which was at the top end of the guidance range [4][9] - The company recorded a net loss of $1 million for Q4 2025, while full year net income was $45 million, with a 7% decrease in adjusted EBITDA compared to 2024 [9][18] Business Line Data and Key Metrics Changes - Technical utilization for Q4 2025 was 98.8% and economic utilization was 97.8%, indicating strong operational performance [3] - The company secured new commitments for 7 rigs since the last quarterly report, with a focus on filling idle space in the 2026 schedule [13][16] Market Data and Key Metrics Changes - The jackup market utilization remains steady at approximately 90%, with expectations for market conditions to firm as tenders are awarded [6] - In the Middle East, multi-year tenders are in progress for an estimated 13 rigs, and Pemex announced a 34% year-on-year increase in upstream CapEx [5][6] Company Strategy and Development Direction - The company is focused on expanding its fleet and has acquired 5 premium rigs from Noble, which are expected to enhance operational flexibility and scale [6][19] - The strategy includes a mix of short and long-term contracts to optimize fleet utilization while being mindful of market conditions [49] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of market fundamentals and expects improvements in the second half of 2026, with a clear recovery in day rates anticipated in 2027 [19] - The company is actively pursuing contracting opportunities and expects to secure commitments that will bring contract coverage above 70% [16][19] Other Important Information - Cash and cash equivalents as of December 31, 2025, were $379.7 million, with total liquidity of $613.7 million [11] - The company plans to return to the Oslo Stock Exchange with a full uplisting expected in the first half of 2026 [12] Q&A Session Summary Question: Outlook for idle rigs Sif and Freya - Management is confident about securing contracts for Sif in the coming months, while Freya may take longer, potentially by late 2026 or early 2027 [22][23] Question: Achievability of EBITDA consensus of $440 million - Management indicated that while it is early for formal guidance, the outlook for 2026 suggests a pathway to achieve activity levels modestly higher than 2025 [24][26] Question: Market conditions in the Middle East - Management noted that tenders from Aramco and KOC are in progress, with awards expected around mid-year, which could tighten the market [31][32] Question: Potential for further acquisitions - Management stated that while they are open to M&A opportunities, they are selective and focused on complementary assets rather than individual rigs [39] Question: Rate development trajectory - Management anticipates that higher activity levels will start impacting bidding levels in Q3 2026, following the conclusion of current tenders [45][46] Question: Contracting strategy - Management aims for a mix of short and long-term contracts, with flexibility based on market conditions and specific tender requirements [49][50]

Financial Data and Key Metrics Changes - Total operating revenue decreased by $46.5 million quarter over quarter, resulting in adjusted EBITDA of $96.1 million for the period [5][10] - The net loss for the first quarter was $16.9 million, a decrease of $43.2 million compared to the net income in the fourth quarter [12] - Free cash position at the end of Q1 was $170 million, with total available liquidity of $320 million [12][13] Business Line Data and Key Metrics Changes - Average active rigs decreased to 16 out of a 24 rig fleet during the quarter, but operational performance remained strong with technical utilization at 99.2% and economic utilization at 97.9% [5][10] - Day rate revenues decreased by $22.6 million, primarily due to a decrease in the number of operating days for certain rigs, partially offset by an increase in operating days for others [10][11] - Bareboat charter revenue decreased by $17.9 million due to the temporary suspension of certain rigs [11] Market Data and Key Metrics Changes - The operating rig count increased to 22 in May, laying the foundation for stronger financial performance in upcoming quarters [6][18] - The 2025 fleet coverage now stands at 79% at an average day rate of $147,000, with expectations to rise to 80% to 85% in the coming months [19][25] - Jackup utilization remains steady at 92%, with modern rig market utilization just under 90% [20][21] Company Strategy and Development Direction - The company is focusing on increasing activity in 2026, with commercial efforts now increasingly directed towards that year [8][9] - The Board decided to suspend the dividend to reinforce the balance sheet and enhance long-term value creation [9][27] - The company aims to maximize the 2025 backlog while building coverage for 2026, indicating a resilient business model despite short-term uncertainties [24][27] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is uncertainty in the market, the long-term fundamentals for the jackup market remain strong [24] - The company is actively monitoring macroeconomic developments and customer sentiments regarding drilling programs [37][38] - There is optimism regarding contract extension opportunities in Mexico, with expectations for Pemex to return to regular payment schedules [33][55] Other Important Information - The company received several industry awards for outstanding safety performance during the quarter [5][6] - Recent fixtures indicate that Aramco may be preparing to secure additional long-term jackup capacity [22][23] Q&A Session Summary Question: Resumption of operations for suspended rigs in Mexico - Management indicated that the resumption is due to a combination of Pemex's realization of the need for increased activity and the quality of the company's rigs [31][32] Question: Uncertain market conditions and dividend suspension - Management explained that the decision to suspend dividends is a precautionary measure due to macroeconomic uncertainties and customer caution [35][38] Question: Visibility on contract extensions and rig options - Management expressed optimism about contract extension opportunities in Mexico, with discussions ongoing with Pemex [33][34] Question: Liquidity situation and potential use of RCF - Management stated that the liquidity position is solid, with no immediate plans to draw on the RCF unless payment delays occur [55][56] Question: Backlog and termination clauses - Management confirmed that most contracts include termination for convenience clauses with payout levels that protect the backlog [80][82] Question: CapEx guidance - Management indicated expected maintenance CapEx of around $50 million for 2025, equating to approximately $2 million per rig [84]