Financial Data and Key Metrics Changes - The overall second quarter revenue was $327.4 million, which was up 8% sequentially and up 0.71% year over year, outpacing the sector [22] - Adjusted EBITDA for Q2 2025 was $70.6 million with margins of 21.6%, up 95 basis points sequentially [22] - Earnings per share adjusted for charges and credits was 21¢ for Q2 2025, up 50% from Q1 2025 [23] - Free cash flow for Q2 2025 was $68.7 million, with cash flow from operations of $98.5 million [25] Business Line Data and Key Metrics Changes - Growth in Saudi Arabia was mainly driven by unconventional activity, along with growth in Egypt and Iraq [22] - Year-over-year growth was observed in Abu Dhabi, Algeria, Iraq, Egypt, and Jordan, partially offset by lower revenue in Saudi Arabia [22] - The company has secured solid new contracts in both Algeria and Libya, spanning three to five years [17] Market Data and Key Metrics Changes - The oil price is expected to remain challenged for the next twelve months, with a 35% decline in US activity this year [8] - The rig count in Kuwait is at an all-time high, making it the second largest country in the Middle East in terms of rig count [14] - North Africa is positioned to provide much-needed gas into the pipeline to meet increasing domestic power demand [18] Company Strategy and Development Direction - The company aims to achieve $2 billion in revenue, leveraging recent contract awards and a robust backlog [5] - A countercyclical investment strategy is being employed to navigate the softening upstream environment [6] - The focus is on building a solid pipeline and securing a robust backlog while maintaining profitable growth and free cash flow generation [19] Management's Comments on Operating Environment and Future Outlook - The management sees MENA as a bright spot despite sustained uncertainty in the global macro environment [7] - The outlook for overall energy demand remains robust, with significant growth expected in oil demand per capita in developing countries [9] - The company expects Q3 2025 revenues and EBITDA to be consistent with Q2 2025 results [26] Other Important Information - The company has successfully remediated its final material weakness in internal controls over financial reporting [28] - The company is currently refinancing its debt facility and anticipates completion within the next three months [29] - The company plans to use excess cash flow exclusively to pay down debt for the remainder of 2025 [30] Q&A Session Summary Question: Can you break apart the guidance for Q3? - The revenue for Q3 is expected to be consistent with Q2, with Q4 anticipated to be higher due to recent tender wins [40][41] Question: What is the outlook for MENA in 2026? - An uptick in MENA is expected in 2026, with countries planning to increase activity [44][49] Question: Any updates on the Jafora contract announcements? - The company is awaiting results from Aramco's evaluation phase for tenders [50] Question: Any consideration for buybacks or returning cash to shareholders? - The company will evaluate excess cash options after completing refinancing and assessing tender results [51] Question: Can you provide insights on the Kuwait contract? - The Kuwait production contracts are expected to be significant, with ongoing tenders [58] Question: What is the status of free cash flow and accounts receivables? - Accounts receivables have increased due to higher revenue, but working capital management has improved [106]