Financial Data and Key Metrics Changes - Revenues in Q3 2025 were $377 million, a significant increase from $302 million in Q2 2025, with gross profit rising to $66 million from $15 million, and net income improving to $22 million from a net loss of $3 million [8][9] - Year-to-date revenues reached $957 million, with gross profits of $109 million and net income of $23 million, alongside adjusted EBITDA of $198 million [8][9] - Cash and cash equivalents increased to $338 million, with total liquidity at $430 million at the end of the quarter [8][17] Business Line Data and Key Metrics Changes - The well intervention segment saw high utilization of the Q4000, which is currently engaged in a multi-well program for Shell [10] - Robotics had a strong quarter, operating seven vessels with high utilization across trenching, ROV support, and site survey work [12] - The shallow water abandonment business experienced increased activity levels, with 100% utilization for the Hedron heavy lift barge [14] Market Data and Key Metrics Changes - Brazil operations reported strong utilization with three vessels operating effectively, while the Gulf of Mexico shelf showed improved results following a later start to the season [9][10] - The UK North Sea market faced challenges due to government tax and regulatory policies, leading to a slowdown in spending [26] - The robotics segment is expected to maintain strong performance in 2026, with robust trenching and site clearance markets anticipated [60] Company Strategy and Development Direction - The company is positioned to benefit from the upcoming production enhancement cycle as the market transitions from drilling to development [25] - Plans to hedge utilization risk for the Q4000 by considering a West Africa campaign in 2026 [27] - The company aims to manage rising supply chain and labor costs while focusing on operational efficiency and cost savings [30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in 2025 but highlighted the potential for earnings growth and strong free cash flow generation [29] - The outlook for 2026 includes expectations of increased activity in shallow water abandonment, albeit at reduced rates due to competitive pressures [41] - The company remains optimistic about the Brazilian market, which is currently buoyant and expected to sustain high utilization levels [70] Other Important Information - The company executed a three-year contract with a minimum 150-day commitment for the Q units in the Gulf of Mexico [9] - The balance sheet remains strong with funded debt at $315 million and negative net debt of $31 million [17] Q&A Session Summary Question: Outlook for Q4000 and potential work deferrals - Management indicated that while there is always a risk of work deferrals, visibility for 2026 is stronger than in 2025, and they are exploring additional campaigns to mitigate risks [34][36] Question: Expectations for shallow water abandonment market - Management expects a pickup in activity in 2026, but at reduced rates due to increased competition and capacity in the market [40][41] Question: Update on subsea robotics for Q4 - The company anticipates a drop in utilization for trenchers in Q4 due to seasonal weather impacts, but overall vessel utilization should remain steady [48][50] Question: Rising supply chain costs and mitigation strategies - Management noted rising costs across labor and materials, emphasizing efforts to consolidate suppliers and achieve margin gains [65][66] Question: Market conditions in Brazil - The Brazilian market is described as buoyant, with strong contracts in place for the CM Helix 1 and 2, and ongoing work for the Q7000 [70]

Financial Data and Key Metrics Changes - Revenues in Q3 2025 were $377 million, up from $302 million in Q2 2025, with a gross profit of $66 million compared to $15 million in Q2 [6][7] - Net income for Q3 2025 was $22 million, a significant improvement from a net loss of $3 million in Q2 2025 [6] - Adjusted EBITDA for Q3 2025 was $104 million, with positive operating cash flow of $24 million and free cash flow of $23 million [6][7] - Year-to-date revenues reached $957 million, with gross profits of $109 million and net income of $23 million [7] Business Line Data and Key Metrics Changes - The well intervention segment saw high utilization of the Q4000 in the Gulf of Mexico, with a multi-well program for Shell [9] - Robotics had a strong quarter, operating seven vessels and achieving high utilization across trenching and site survey work [11] - The shallow water abandonment business experienced increased activity levels, with 790 days of utilization compared to 614 days in Q2 [12] Market Data and Key Metrics Changes - Brazil operations showed strong utilization with three vessels operating effectively [8] - The Gulf of Mexico shelf experienced improved results following a later start to the season [8] - The UK North Sea faced market turmoil, leading to the Seawell remaining warm stacked [10] Company Strategy and Development Direction - The company is positioned in a cyclical oil and gas market, currently in the early development cycle, with expectations of moving into a production enhancement cycle [21][22] - Plans to hedge utilization risk for the Q4000 by considering a West Africa campaign in 2026 [24] - The company aims to manage rising supply chain and labor costs while maintaining focus on operational efficiency [26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in 2025 but highlighted strong Q3 results as a glimpse of earnings potential [16][22] - Seasonal impacts are expected in Q4, particularly in the North Sea and Gulf of Mexico [16] - The outlook for 2026 is cautiously optimistic, with expectations of increased activity in shallow water abandonment and robotics [25][26] Other Important Information - The company reported a strong balance sheet with $338 million in cash and negative net debt of $31 million [15] - Year-to-date share repurchase spend was $30 million, aligning with the target of at least 25% of expected free cash flow [20] Q&A Session Summary Question: Outlook for Q4000 and potential work deferrals - Management indicated that while there is always a risk of deferrals, visibility for 2026 is stronger than in 2025, with plans to hedge risks through potential West Africa campaigns [31][33] Question: Expectations for shallow water abandonment in 2026 - Management expects increased activity in 2026 but at reduced rates due to competitive pressures and added capacity in the market [36][37] Question: Update on subsea robotics for Q4 - The company anticipates a drop in trenchers utilized in Q4 due to seasonal weather, but expects strong utilization in the North Sea [42][43] Question: Rising supply chain costs and mitigation strategies - Management noted rising costs across labor and materials, with plans to consolidate suppliers and manage costs effectively [54] Question: Market conditions in Brazil - Brazil remains a buoyant market with strong contracts in place for the CM Helix 1 and 2, and the Q7000 [58]

Financial Data and Key Metrics Changes - Revenues for Q3 2025 were $377 million, a significant increase from $302 million in Q2 2025, with gross profit rising to $66 million from $15 million and net income improving to $22 million from a net loss of $3 million [7][8] - Year-to-date revenues reached $957 million, with gross profits of $109 million and net income of $23 million, alongside adjusted EBITDA of $198 million [8] - The company reported positive operating cash flow of $24 million and free cash flow of $23 million for the quarter [7] Business Line Data and Key Metrics Changes - The Well Intervention segment saw high utilization of the Q5000 in the Gulf of America, while the Q4000 faced gaps in its schedule due to lower revenue ROV decommissioning projects [10][11] - Robotics had a strong quarter, operating seven vessels with high utilization across trenching, ROV support, and site survey work [13] - The shallow water abandonment business experienced increased activity levels, with 100% utilization for the Hedron heavy lift barge [15] Market Data and Key Metrics Changes - Brazil operations reported strong utilization with three vessels operating effectively, while the North Sea faced challenges with the Seawell remaining warm stacked [9][11] - The Gulf of America market is expected to experience seasonal impacts, particularly affecting operations in Q4 [19][22] Company Strategy and Development Direction - The company is focusing on maintaining a strong balance sheet with negative net debt and significant cash reserves, allowing for potential growth through acquisitions [38] - The strategy includes hedging utilization risks by considering campaigns in West Africa and exploring opportunities in Guyana [32][48] - The company anticipates a gradual recovery in the shallow water abandonment market, with expectations for increased activity in 2026 and beyond [33][54] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the cyclical nature of the oil and gas market, indicating a transition into a strong development cycle with elevated vessel charter rates [28][29] - The company expects challenges in 2026 due to rising supply chain and labor costs, but remains optimistic about maintaining strong performance in the Robotics segment [36][74] - Management highlighted the importance of managing costs and maintaining operational efficiency in a competitive environment [36][77] Other Important Information - The company has a strong liquidity position with $430 million available at quarter-end, and minimal debt obligations until 2029 [18] - Year-to-date share repurchase spend was $30 million, aligning with the company's target of repurchasing at least 25% of expected free cash flow [26] Q&A Session Summary Question: Outlook for Q4000 and potential delays in 2026 - Management indicated that while there is optimism for 2026, there remains a risk of customers deferring work due to budgetary decisions [43][46] Question: Expectations for shallow water abandonment market in 2026 - Management expects increased activity in 2026 but at reduced rates due to competitive pressures and excess supply [50][52] Question: Update on subsea robotics for Q4 - The company anticipates a drop in vessel utilization in Q4 due to seasonal weather impacts, with a reduction in the number of operational trenchers [58][60] Question: Rising supply chain costs and mitigation strategies - Management noted rising costs across labor and materials, emphasizing efforts to consolidate suppliers and achieve margin gains [74][75] Question: Market conditions in Brazil - Brazil remains a buoyant market with strong utilization expected for contracts with Petrobras and Shell [80]

Financial Data and Key Metrics Changes - Revenues for Q1 2025 were $278 million, with a gross profit of $28 million and a net income of $3 million. Adjusted EBITDA was $52 million, and free cash flow was $12 million [6][8][18] - The company reported strong cash and liquidity with cash and cash equivalents of $370 million and total liquidity of $405 million [6][18] Business Line Data and Key Metrics Changes - The Well Intervention segment saw strong utilization in West Africa, the Gulf of America, and Brazil, while North Sea vessels experienced lower utilization due to seasonal factors [11][12] - Robotics had a strong quarter with high operational standards, working on trenching, ROV support, and site survey projects globally [15][16] - The shallow water abandonment business is expected to improve in Q2 and Q3 as seasonal activity levels increase [17] Market Data and Key Metrics Changes - The company faced challenges due to geopolitical factors, including tariff hikes and OPEC production increases, leading to oil prices dropping to the low $60s [7][20] - The UK North Sea market is experiencing a downturn due to regulatory issues, low oil prices, and M&A activity, impacting the company's outlook [20][36] Company Strategy and Development Direction - The company is focusing on cost reduction measures, including stacking several vessels and adjusting capital spending in response to market conditions [8][30] - Long-term demand for services remains strong, with multi-year contracts in place providing resilience against near-term volatility [35][39] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the current dynamic and uncertain market environment but expressed confidence in the company's ability to navigate these challenges [7][9] - The outlook for 2025 has been adjusted, with expected revenues of approximately $1.3 billion, reflecting a decrease due to the stacking of the Seawell and overall negative market conditions [21][37] Other Important Information - The company has a backlog of approximately $1.4 billion and a strong balance sheet with negative net debt [8][18] - The capital expenditure forecast for 2025 is between $65 million and $75 million, primarily for regulatory maintenance and fleet renewal [22][31] Q&A Session Summary Question: Confirmation on revenue change in Well Intervention - The revenue change in Well Intervention is primarily attributed to the North Sea market [42][43] Question: Long-term view on North Sea market - There are large P&A project tenders expected to start in 2026, with ongoing engineering and tendering processes [43] Question: Free cash flow options - The priority is on share repurchase due to market uncertainty, with M&A opportunities being more challenging to close [45] Question: Breakdown of lowered EBITDA guidance - The primary driver for the guidance reduction is the North Sea market, particularly the stacking of the Seawell [50][52] Question: Outlook for North Sea operations - The work has been paused rather than lost, with significant tenders expected in the future [59] Question: Opportunities for North Sea vessels in other regions - Redeployment of vessels like the Seawell would require capital upgrades due to depth limitations [72] Question: Pricing pressure in the US Gulf market - Currently, there is no significant pricing pressure in the US Gulf market, with stable pricing observed [75][76] Question: Impact of UK market on robotics and shallow water abandonment - The negative macro backdrop has slightly impacted robotics and shallow water abandonment, but the North Sea remains the primary concern [81][82]