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]