Good morning, ladies and gentlemen. Welcome to OceanPact's second quarter 2025 earnings conference call. All participants will be in a listen-only mode during the presentation. Later, we will hold a question and answer session, and further instruction will be provided. This conference is being recorded, and the replay will be available at the company's website, ri.oceanpact.com. The slide deck is also available at the company's investor relations website, as well as the CVM website, www.gov.br/cvm. Before proceeding, we would like to mention that the forward-looking statements that may be made during this conference call relating to the company's business prospects and forecasts are predictions based on the management's current expectations. These expectations are highly dependent on macroeconomic conditions, market risks, and other factors.
With us today are Mr. Flavio Andrade, our CEO, Haroldo Solberg, VP and Chief Vessel Officer, Adriano Ranieri, Head of the Service Segment, and Eduardo de Toledo, CFO and IRO. The executives will first make their comments on OceanPact's performance in the second quarter, and later, they will be available to answer any questions that may be asked. I would like now to turn the floor over to Mr. Andrade. Mr. Andrade, please, you may begin, sir.
Thank you, [Doris]. Good morning. Thank you everyone for joining us for another conference call to discuss our earnings. We will be focusing on the second quarter 2025 now. As I mentioned in the press release, we have got some good news that actually took place after we closed the second quarter, but that we had been looking forward to. RSVs, those stations. There was a bid that was opened September last year.
Finally, that bid was concluded, and we have signed one of the contracts. We are signing the other three contracts, so there are four new RSVs in new contracts in this bid. There is over a 50% increase, and AHTS was also qualified in the AHTS station, and the contract will be signed soon. We also had the environment monitoring contract. That is also something we had been waiting for a while, too. That is a substantial contract, over BRL 700 million for OceanPact Geociências.
The decommissioning contract for an international IOC. That is also a contract that we were awarded, and in our next earnings conference call, that is going to be quite easy to be seen in our backlog. We also issued our seventh debenture lot that we are going to be using to pay the fourth, and it was issued at the rate of CDI-based interest rate plus 2%.
That is thanks to a substantial demand that we had. Demand was very high for our debêntures. All right. Let us look at the highlights. We had 84% utilization rate this quarter, and the guidance for the full year is 82%. The daily rate rose to BRL 177,000. That is a 22% increase year-on-year. Our net revenue was BRL 507 million in the quarter. That is a 34% increase year-on-year. Our EBITDA was BRL 139 million. That is a 22% rise year-on-year. I would now like to ask Haroldo to talk about the highlights in the vessel segment.
Thank you, Flavio. Good morning, everyone. Let us take a look at the main operating highlights in the vessel segment in the second quarter of 2025. Let us start with our utilization rate.
So it was 84% for the second quarter, and in this period, we had, as the chart shows, we had Parcel dos Meros and Ilha de São Sebastião being docked. We had Parcel das Timbebas, Parcel do Badejo, Ilha de São Sebastião, Ilha de Tinharé, and Rochedo de São Paulo in maintenance. And Ilha do Mosqueiro was mobilized to Petrobras. Our estimate is that our utilization rate will be 82% for 2025. It's a bit higher than the previous guidance, and this is due to the utilization rate with the new RSV contracts with Petrobras. Let's delve into our utilization rate. Again, it was 84% in the second quarter. We can see to the left that days without contract had a 0% impact. Mobilization had a 4% impact, and docking, 3%. Operating downtime was 9%. We had, as we saw in the previous graph, some maintenance services provided.
To the right, we can see the days utilized and average net daily rate. We went from BRL 1,585 to BRL 1,763. It's a 22% rise. That is the daily rate. So it's a 22% increase, and that is mainly due to events that took place in 2024, new contracts with PSVs and OSRVs. And the increase in the day rates in Parcel dos Meros and Parcel dos Badejos with RSVs. Now, let's look at the results in the vessel segment. To the left, we see that the net revenue was BRL 114 million in the second quarter. That's a 36% in the like-for-like basis, removing or excluding the partnership with Reach Subsea. That was 36% increase year-on-year. And to the right, we see our EBITDA climbed 59% year-on-year. It's now 82%. And the margin climbed from 22% to 26%.
That is also thanks to the daily rate increase and the increase in the utilization rates, as we already explained. I'll turn the floor to Adriano, he's the head of the services department.
Thank you, Haroldo. Good morning, everyone. Let's take a look at the service segment and our results in the second quarter 2025. We had an increase in revenue year-on-year in every business unit. In Subsea and Geociências , our revenue was BRL 127 million. That's a 26% rise, driven mainly thanks to the high demand in Geociências services. Oil spill response had a BRL 37 million revenue. It's a 24% rise year-on-year. And that is thanks to a short-term contract to plan and implement an emergency response base on a coast. And consulting, pardon me, and other units, had a BRL 33 million in revenue.
It's a 91% rise that is driven by the increased demand in the consulting department and decommissioning of the Congro Buoy . Segment revenue was BRL 197 million, and our EBITDA was BRL 57 million and a 29% margin. Last year, we established a great portfolio with good Subsea possibilities. Now I give the floor to Toledo.
Thank you, Adriano, and good morning, everyone. It's a pleasure to be here with you speaking about our second quarter 2025 results. Let's start with our consolidated net revenue. We had BRL 508 million in the quarter. That's a 34% rise year-on-year. As for our consolidated EBITDA, we had BRL 139 million. That's a 22% rise like for like. And that is in line with our expectations for the quarter. As for costs, like for like, we had a 40% increase. That's a substantial rise. A substantial part of that is due to Parcel dos Meros.
We have been talking about it. We spoke about it in the last earnings call. Parcel dos Meros has now a charter with a less than a year contract, so the accounting has to change according to the IFRS 16. The chartering is accounted for as a cost, and that wasn't like that before, and that's why we see this difference. Our consolidated G&A was BRL 58 million in the quarter. There are two important factors I'd like to mention here. One is the long-term compensation plan, the long-term incentive plan that is adjusted every quarter as per the stock and share prices. The stock and share had an improved price in July. That had an impact on ILP. We have been working to grow our business with new businesses as well. A lot, as we have said, has been using these R&D programs.
That doesn't really have much of a margin. R&D pays for our costs. We understand it helps in the development of these new areas, but that impacts the indicator. Again, it leads to better options in the future. As for CapEx, basically on the same level as last year. We had an increase in the growth and modernization shares. Let's look at our financial figures. We ended the quarter at BRL 209 million in our cash position. The proceeds from the debêntures issue is only going to be accounted for the end of July, so it can't be seen here yet. Bank debt and leverage is at BRL 1.2 billion. Our net debt EBITDA is at the same level as well. I'll now give the floor back to Flavio so that he can continue the presentation.
Thank you, Eduardo. I already talked about the backlog in my initial remarks. We have a BRL 3 billion backlog. The backlog was consumed naturally this quarter with a few adds, and these are going to be seen in the next quarter with the RSV and AHTS and environmental monitoring and decommissioning contracts that I mentioned at the start. In sustainability and innovation, well, we published our sustainability report for 2024. It is a highly detailed report. It really gives a lot of information on everything we've been doing. We also published an executive report. It's a 25-page report. A summary. So I really recommend you take a read. These reports look really good and this summarized executive report is really easy to read. In innovation, we have a new project with Karoon using the resources from research, development, and innovation. As Flavio just mentioned, or Toledo just mentioned.
This is a project in the Santos Bay using numerical modeling, AI, and oceanographic data. Every one of our vessels is basically one sensor with specific devices that we have in the Karoon fields to support this project. Market updates. I think I've covered basically everything here. So we have signed the contract with Parcel das Paredes, Parcel do Bandolim, Parcel dos Reis, and Parcel das Timbebas. They are getting their final signatures in Petrobras. The increase in the rates for these vessels was over 50%. 82% in vessels, and some of it in services with a smaller increase. That amounts to this over 50% increase in AHTS Rochedo de São Paulo. We had an over 70% increase. This will, of course, translate into much better margins. I talked about environmental monitoring already, and what is ongoing is bids to charter PSVs.
There is a bid for the oil spill recovery vessel, the OSRV, and one bid for decommissioning of mooring lines that is planned for October. The market continues to operate normally with the regular demands that we have been expecting, and that's it, and we're available to take your questions. Thank you very much.
We'll now start the Q&A session. To ask a question, please click the Q&A button at the bottom of the screen. Should you wish to ask a question using your microphone, just say that you have a question, and when your name is called out, you'll be able to unmute your microphone. You can send your questions in writing as well, clicking the Q&A button and typing your question in it. Our first question is going to come in audio from Vicente Falanga, Bradesco BBI.
Good morning, everyone. I've got two questions. Congratulations on the liability management, first of all. Can you talk a little bit about the debêntures issue, the costs, and if there is more work in liability management to be done in the coming months? What can we expect when it comes to the company's EBITDA in the second half of the year? There's a lot in yellow in the graph you show, so the mobilization. What can we expect for the third and fourth quarter results? Thank you.
Morning, Vicente. Thank you for your questions. First, the debêntures. We had more expensive debêntures up to the fourth batch, the fourth lot. The spread was CDI + 5% or 5.75% even. These have come to an end. Now with the seventh issuer, we bought back the fourth. That was the last one on this level.
As of the fifth debênture lot, we are below 3%. The fifth was CDI base rate + 2.75%, and then the sixth to CDI + 2.5%, and now CDI + 2%. There is a decrease in the rate, but it's not as marked as from 5% to this level. This reduces the management time. We may have another lot issued. It could be bilateral as well. As we have this preparation with vessels and many of the contracts that we have had success in have to do with the preparation, so we may have lower volumes. It could be a small lot or it could be a bilateral one. This is the possibilities we're considering to fund this cycle, this very positive one that we're going through. As for your second question, the second half of the year.
The third quarter should have very strong results. That is mainly due to the high utilization rates. There are three important elements leveraging this result. Ilha do Mosqueiro and its new contract. We had a substantial increase in the day rate. This is the first quarter that we're going to have it in operation. It started last quarter, but only for two weeks, only 15 days, and now we're going to have it for the full quarter. This is an important factor to this increase in EBITDA levels. The second element stems from Parcel das Paredes and Parcel dos Meros. These two vessels, they have been performing really well in the contracts in this quarter. These are shorter-term contracts when it comes to Petrobras contracts, comparing to Paredes, for example. But as they're shorter contracts, they have better income, better profit.
Having said that, our third quarter should be the best in our history, the best ever. It should even surpass the second quarter 2023, the one that we had the legal cases that had to do with the UP acquirement as well. Without an extraordinary factor, a non-recurring factor like that one, we should surpass that EBITDA level. That's the third quarter. The fourth quarter, we normally have the utilization rate going down in the fourth quarter. It goes down because of this positive reason. Flavio mentioned the new contracts as well. We have Ilha do Mosqueiro still, Meros. These are good spot contracts. The fourth quarter should be better than the first and second quarters, even though we have lower utilization rates. This is what we expect for the year. We're very optimistic about our second half of the year.
That was crystal clear. Thank you very much, Eduardo.
If you'd like to ask a question, just click the Q&A icon at the bottom of the screen. You may choose to send your question in writing or request that you unmute your microphone. We have another question from Eric Melo from Itaú BBA. You may unmute your microphone, sir.
Morning, everyone. Good morning. Thank you for taking my questions. I've got two questions as well. The first one has to do with Ilha do Mosqueiro as well. This is one of the contracts that started a month earlier than expected. Looking at the second half of this year and the start of the next year, there's a lot of mobilization going on. I'd like to hear from you how you're preparing for these new contracts. Could we have additional contracts to these?
The visibility in the first half of the year. Can you talk a little bit about the utilization rates for the next year as well, for the first half of 2026?
Thank you, Eric. The mobilizations that we have this year in the last quarter, these four RSVs, these are vessels that were already working for Petrobras, and some of them still are working for Petrobras. They have had substantial upgrades made to be fitting for Petrobras. They all operate at 3,000 meters. They can all operate 3,000 meters deep. There are more modern sensors from Kongsberg, for example, different spaces that you may need for one thing or another.
These are changes that cost time and CapEx, but they don't lead to the same challenges that we faced when we had to go for a vessel that was in lay-up in a different country that had never worked for Petrobras and then had to be upgraded. We don't expect any delays in mobilization for that reason. As for the mobilization rates for the future, I don't know if Haroldo or Eduardo would like to take that question.
Well, the works, that's right. These are simpler works, winches, smaller changes. These past months, we've been planning these works carefully, looking at the scope, the maintenance that needs to be done, and they're going to be going into operation in 2026.
Just piggybacking on the utilization rate matter. In the first half or in the first quarter next year, it should be between the third and fourth quarters this year. A value between the two. Most of these works are going to be taking place this year. Some of the works is going to be taking place next year, but we expect to have a level between the third and fourth quarter of this year. Next year, we'll have these new contracts with the new daily rates. We expect to have a strong quarter, and the new daily rates should recur for the coming years. It's looking positive for next year. The first quarter is ramping up with the effects from these works, but smaller than the fourth quarter this year as well.
Well, thank you very much. That's great.
We have a question in writing from [Tiago Souza]. Good morning, everyone. What is the commercial strategy for AHTS Rochedo de São Pedro? Thank you.
Thank you, [Tiago]. We expect or we understand that the AHTS that we had now, the request that we had now is not exactly ours because our vessels are still under contracts. We brought forward Rochedo de São Paulo into a new contract. Rochedo de São Pedro is probably going to have their contract extended with Petrobras, hopefully with an improvement in our rates. That hasn't been negotiated yet, but that is our expectation. Petrobras needs this vessel, and we would very much like to renew the contract with them. We have discussed that with them already, but we do not have any concrete results to present yet.
Again, should you wish to ask any questions, please feel free to click the Q&A icon at the bottom of the screen. You may send your question in writing or request that your microphone be unmuted. We're just waiting for further questions.
We have a question in writing from [Edward Finley Richardson]. We're going to read it in Portuguese. Hello, and congratulations on a great quarter. I would like to ask for some general market color. We have seen that Petrobras delayed several tenders. The one that caught my attention was the big 16 vessel PSV tender delayed from May until August. Now that tender has been reduced from 16 to 12 PSVs. Is there a reason for these repeated delays? Is it becoming hard for Petrobras to find enough available high-quality tonnage? Or are there any other factors that may be affecting the decision to push back these tender deadlines? Any other comments on the evolution of the Brazilian PSV and AHTS markets would be very much appreciated.
Okay. Thank you, Edward, for your questions. You always ask interesting questions, Edward. Thank you. In this case, this behavior from Petrobras is quite normal. It is a state-owned company, right? It's a government company, but it's also a listed company. There are many internal rules in Petrobras, and there are many systems regarding procurement and new contracts, vendors. It's normal for Petrobras to put off requests and make changes, and they often have more than one tender at the same time, even for PSVs. This is not unusual, and there's no specific reason for it. Petrobras needs the vessels. I believe Petrobras has been able to get the vessels they need. Of course, the supply has been tighter in the market of late, but Petrobras has found the vessels they need. Petrobras has many tenders for PSVs.
We see that after the crisis, the PSV prices got back to the market levels faster than RSVs. RSVs are only getting to normal market prices now. The Subsea RSV vessels have one tender a year or one every 1.5 years, and PSVs have three tenders a year, maybe four. Oil recovery vessels as well. They move faster whenever you need rates to be adjusted. It's faster than RSV Subsea vessels. We don't understand there be any specific reasons for this delay. It's quite normal. Any other comments on the evolution of the Brazilian PSV HTS markets? We had already made a comment about that. The FPSOs for Petrobras is putting pressure on Petrobras. They need vessels to go along with their growth that is already hired in areas that call for advance in planning.
They're planning the FPSOs with more time in advance than the vessels. That's why there's so many processes taking place at the same time. We don't see anything unusual about it. Again, thank you very much for your questions.
We have another question in writing. It's an anonymous attendee. The question is around an update for UP Coral.
For the UP Coral process, Petrobras appealed in the Supreme Federal Court, the same way that was for Turquoise. The same group is going to be making the decision there, the same team of judges, and we don't have a date for the decision yet. The speaker of this group had a monocratic decision rejecting the appeal from Petrobras. Petrobras appealed, requesting that a group of judges take the decision instead of a monocratic decision. We're still waiting for the date when that's going to take place, though.
Another question in writing from JP Morgan, from Rodolfo Angeli. Good morning, everyone. I'd like to talk about the company's future strategy. The company's thesis is quite simple right now. The growth is coming in with new pricing of the fleet with higher daily rates. In the past, OceanPact also grew in that it acquired companies and vessels. What are we to expect in the future? Do you expect new mergers and acquisitions in the future? Does that make sense, or are the assets too expensive at this point?
Thank you, Rodolfo, for your question. Thinking about vessels, yes, the price of the assets has really gone up as a result of the increasing daily rates as well. Our strategy that we've been executing at this point is that one. We've been surfing the repricing of the fleet we bought in the past when prices were far lower.
We need to do that efficiently. We need to seize the opportunities as we have seized using our own ROVs in every subsea vessel, RSVs. We acquired two new ones last year. We're going to add ROVs to our own RSVs this year as well, and that has been yielding good results. We also have services. The services account for 40% of our EBITDA, and there are interesting opportunities there. We mentioned the environmental monitoring contract, for example. That's a good opportunity, the decommissioning contract and all of the range of services we provide. That coupled with innovation, of course. As Eduardo said, we have research development and innovation projects where we do not have any immediate profit, but we develop important technologies such as the autonomous vessels, the ROVs that can be operated remotely from land.
Instead of having 40 people on a vessel in the middle of the sea, we can have fewer people there, and the ROV operators will be able to carry out the same works with the new low latency internet. As for your merger and acquisition question, that will always make sense if there is a good price, if there is a good opportunity to acquire a vessel or a company where we can have a positive negotiation that will complement our fleet and our ambitions efficiently. That we in the market understand to be a good deal. We are always keeping an eye open. We have not spotted any good opportunities in that sense for now, but of course we will keep a weather eye. Keeping a weather eye out on that. That is it. Thank you.
We have a question from [Frederico Raduan].
Good morning. Congratulations on your results and on the new contracts. I have got two questions. The first has to do with the company's CapEx. What are your expectations for CapEx till the end of 2026? What are the possibilities to allocate capital in the future? My second question has to do with the company mix in the future when it comes to the share between services and vessels.
All right. Let me start with the CapEx question. We have two years, 2025 and 2026, as important years to renew contracts for our high-spec vessels, RSVs, HGSs. As Flavio mentioned, we are adding ROVs to our vessels. In the past, we had third party ROVs. We expect these years to have higher CapEx levels in 2025 and 2026. Then we should go back to normal levels in 2027.
As for the mix, vessels should get a bigger share, especially due to the repricing of the contracts. Higher daily rates will make sure that the share of vessels increases. That should be temporary, because services has a bigger increase from a structural perspective. It calls for less CapEx. We can grow more organically without further investments. At first, we will see the vessels share growing.
We have a question from Rodrigo Fonseca from Galapagos Capital.
Good morning, everyone. Can you talk a little bit about the commercial strategy for Tinharé Loreto that has a mobilization planned in the third quarter?
Loreto should continue with the same operating profile, PSV and oil recovery. Normally working with independent or international companies or, what we have been calling junior oils. We cannot give you a lot of details in the commercial strategy there, because there are competitors listening to us here.
Just for general understanding and for modeling, the operating profile that we have had in the past should continue in the future.
There are no further questions right now. If you would like to ask a question, just click the Q&A icon at the bottom of the screen, and you may send your question in writing or request that your microphone be unmuted. Please bear with us for a couple of moments to see if further questions will be sent to us. No further questions were sent to us, so I will give the floor back to Eduardo for his final remarks.
Thank you, [Doris]. Basically, we'd just like to stress some of the points that we already made. We are always open whenever we speak to the market so that we can keep you updated on what's going on. Again, we expect the third quarter to be very positive. Considering everything that we already mentioned during the call. The fourth quarter should be better than the first and the second quarter, but of course, it should be lower than the third quarter because we start the mobilization of the vessels.
The first quarter next year, we expect results to grow because there is less time spent in mobilization. Most of it takes place in the fourth quarter. We'll also have the new daily rates that will be in force as of the start of the operations of the vessels. That's basically what I had to say. I'd like to give the floor to Flavio for his final remarks.
Well, thank you, everyone. I have not got any further remarks to make. I think what Eduardo said already makes perfect sense. We will continue to work hard. We will continue to deliver on what we promised to deliver. This question around the mix between vessels and services. Again, vessels will grow because of the highly daily rates, but services will also continue to grow. We see that the decommissioning contract is an example of that, and there are further opportunities that are keeping an eye on that will keep a fierce competition between the two business units. Thank you very much for joining, and we will talk to you in the next call.
This is the end of the second quarter 2025 OceanPact earnings call. Thank you very much for joining, and have a good day. Thank you.