Financial Data and Key Metrics Changes - Total operating revenues for Q3 2025 were $363 million, a sequential decrease of $14 million [21] - Contract drilling revenues declined by $8 million to $280 million due to fewer operating days for West Vela and Savannah, Louisiana [21] - Adjusted EBITDA was $86 million, a sequential decrease of $20 million from the prior quarter [22] - Total cash increased by $9 million to $428 million, including $26 million of restricted cash [22] Business Line Data and Key Metrics Changes - The management contract revenues decreased by $2 million to $63 million, influenced by a prior quarter catch-up for inflationary increases [21] - Reimbursable revenues decreased by $5 million to $11 million, offset by a corresponding decrease in reimbursable expenses [21] - The West Vela and Savannah, Louisiana secured new contracts, adding a combined firm term of 195 days [7][16] Market Data and Key Metrics Changes - The company added over $300 million to its backlog, bringing the total contracted backlog to approximately $2.5 billion [14] - The U.S. Gulf market showed resilience with new contracts secured, while there are expectations of potential weakness in West Africa and Brazil [27][29] - The International Energy Agency reported that nearly 90% of upstream investment since 2019 has gone towards offsetting production declines rather than adding new capacity [17] Company Strategy and Development Direction - The company aims to build backlog coverage through 2026 and minimize exposure to contract gaps [24] - A collaborative approach with customers and operational excellence are key strategies to maintain competitive edge [5] - The company is strategically positioned to capture value from the renewed focus on offshore resources amid a decade of underinvestment [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a market recovery, with signs of increased contracting momentum and global tendering activity [17] - The company highlighted the need for renewed investment in offshore drilling to meet future energy demand [12] - Management noted that the offshore industry is at an inflection point, with a shift in capital allocation towards offshore drilling [20] Other Important Information - The company has maintained a robust balance sheet with total liquidity of approximately $600 million [22] - The West Gemini is expected to commence a well-based contract in the next few months after completing its special periodic survey [6] Q&A Session Summary Question: What are the leading-edge day rates in the Golden Triangle? - Management indicated that day rates in the U.S. Gulf are resilient, while there may be some weakness in West Africa and Brazil [27][29] Question: What is the medium to long-term outlook for Asia? - Management highlighted optimism in India, Malaysia, and Indonesia, with various operators showing interest [31] Question: What are the current thoughts on potential downtime for the Capella and Carina rigs? - Management expressed confidence in minimizing exposure to downtime, with ongoing efforts to secure contracts [37][39] Question: How are conversations with Petrobras regarding cost reductions progressing? - Management noted early discussions with Petrobras, focusing on mutual benefits and potential blend and extend contracts [51][52] Question: How is economic utilization trending? - Management acknowledged a slip in economic utilization but emphasized that most rigs performed well, with a technical uptime of 97.6% excluding one incident [53][54]

Market Trends - Mainland Chinese traders purchased a record $46 billion worth of Hong Kong-listed stocks [1] - Cash-rich investors are turning their attention offshore [1]