Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: The upward progression of your ROV average revenue per day has been impressive. Has the increase in pricing been driven more by drilling support or vessel-based work? Do you expect a flattish trajectory or surpassing $11,000 a day as we move through the year? A: The pricing improvements are coming from both drilling support and vessel-based work. We expect activity to be flattish, but we anticipate further price realization through 2025, despite flat days. We continue to demonstrate value with 99% uptime, which supports price improvements over time. - Roderick Larson, President, CEO
Q: Your book-to-bill ratio for manufactured products was about 1 times for 2024, a decrease from 1.3 times in 2023. Is there any guidance for orders or book-to-bill for this year? A: We haven't provided specific guidance for book-to-bill, but our sales pipeline remains healthy, indicating our belief in future orders this year. - Roderick Larson, President, CEO; Alan Curtis, CFO
Q: How do you factor potential downtime or white space on rigs into your ROV utilization assumptions for 2025? A: Our plan assumes flattish rig activity. We've grown our market share in Brazil, which provides some protection against white space. The Petrobras contracts have become more favorable, allowing us to gain better pricing and market share. - Roderick Larson, President, CEO
Q: Can you update us on the progress of outsourcing manufacturing for mobile robotics forklifts and discussions on incremental orders? A: The outsourced manufacturing is progressing well, and we are satisfied with the quality. We are monitoring the pipeline and customer schedules, aiming to convert trial-level buyers into larger volume buyers. - Roderick Larson, President, CEO
Q: What are the drivers for margin improvement in the manufacturing products segment? A: Margin improvement is driven by better price backlog, efficient operations, and continuous throughput in factories. Improved margins are expected as long lead materials are received, and daily throughput helps absorb overhead costs. - Roderick Larson, President, CEO; Alan Curtis, CFO
Q: Could you elaborate on the strength in the OPG segment for Q4 and expectations for 2025? A: The OPG segment benefits from light well intervention work, which is cost-effective for customers and offers high margins for us. We see growth opportunities in reworking infrastructure in the Gulf of Mexico and West Africa, which stabilizes the OPG business. - Roderick Larson, President, CEO
Q: Can you discuss the vessel class ROV market supply/demand and multiyear opportunities? A: Utilization in the vessel class where we are mostly deployed has been strong. We see opportunities in multipurpose service vessels and ROV support vessels, with good utilization levels. - Roderick Larson, President, CEO
Q: Have you seen more M&A opportunities in the last six to nine months, and what are you looking for in potential acquisitions? A: We are seeing more M&A opportunities and are looking for disruptive technologies where we can be the best owner. The acquisition of GDi is an example, as it complements our ROV business and offers significant value. - Roderick Larson, President, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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