Financial Data and Key Metrics Changes - Revenue for the second quarter of 2025 was $341.4 million, a 2% increase from $333.4 million in the first quarter [35] - Gross margin was 50.1%, marking the third consecutive quarter above 50% [9][36] - Free cash flow generated was $98 million, the second highest since the offshore recovery began [9][44] Business Line Data and Key Metrics Changes - Average day rates increased to $23,166, a 4% rise compared to the first quarter [36] - Day rates in the Europe and Mediterranean regions improved by 14%, while the Americas saw a nearly 3% increase [41] - Africa experienced a 5% decrease in day rates quarter over quarter [41] Market Data and Key Metrics Changes - The Americas region reported a 28% increase in revenue compared to the first quarter, while Europe and Mediterranean regions saw a 27% increase [41] - The Africa region's revenue decreased by 22% compared to Q1 [41] - The overall gross margin in the Americas increased by 14 percentage points, while Europe and Mediterranean increased by 10 percentage points [41] Company Strategy and Development Direction - The company announced a $500 million share repurchase program, representing over 20% of its market capitalization [10][22] - The focus remains on pursuing M&A opportunities while balancing share repurchases [12][22] - The company is optimistic about the offshore vessel market, expecting a rebound in drilling activity in 2026 [13][15] Management's Comments on Operating Environment and Future Outlook - Management noted that the near-term outlook appears softer than previously expected, but remains confident in long-term fundamentals [14][17] - The company anticipates a sequential decline in Q3 revenue by about 4% but expects utilization to improve in the latter half of the year [25][26] - Management expressed confidence in achieving full-year financial guidance despite near-term uncertainties [48] Other Important Information - The company successfully refinanced $650 million in unsecured bonds, enhancing financial flexibility [10][19] - The new debt structure allows for unlimited shareholder returns as long as leverage metrics are met [20][21] - The company is monitoring a significant accounts receivable balance from a primary customer in Mexico, which represents approximately 14% of total trade AR [44] Q&A Session Summary Question: Update on M&A opportunities - Management noted that discussions have become more constructive, with a growing awareness of market volatility, making transactions more feasible [51][66] Question: Outlook for drilling demand in 2026 - Management expressed optimism about increased drilling contracts and a positive outlook for the second half of 2026, with expectations for production, subsea construction, and drilling to all be active simultaneously [56][59] Question: Changes in second half expectations - Management acknowledged that second half expectations have come down slightly compared to previous guidance, particularly regarding utilization improvements [74] Question: Utilization improvement range for Q3 - Management indicated a few percentage points of utilization improvement is expected from Q2 to Q3 [80][82] Question: Factors driving lower rate outlook for Q3 - Management attributed the expected lower rates to softening in the North Sea and West Africa, along with the absence of favorable foreign exchange rates [87]