Morning, everyone. Welcome to OceanPact video conference. We will be discussing second quarter results. Participants are connected only as listeners. Questions and answers session will start later on, and you will be given instructions to participate. This is being recorded, and it will be made available at the investor relations website of this company. The slides that will be used in this presentation will also be made available at the website of the company and also of CVM, www.gov.br/cvm. I would like to clarify that statements made at this meeting are forecasts based on the present expectations of the leadership.
These expectations are subject to change in view of macroeconomic conditions, market risks, et c. Today, we have Flavio Andrade, Director President, the CEO of the company, Haroldo Solberg, Director Vice President, and Eduardo de Toledo, Financial and Investor Relations Director. To begin our session, Flavio, Haroldo, and Eduardo will make comments about the company's performance through this quarter, and then they will be available for questions and answers.
Good morning, everyone. Thank you for your interest in attending our conference. We are very excited to share the good results of our 2Q. We would like to highlight the improvement of the debt profile. The bonds issued show that together with the improvement of results, we have extended the debt profile, and we are very well prepared to keep benefiting from the present moment of our market. It is also very positive that we have issued our sustainability report according to GRI standards. We have concluded the purchase of the Norwegian shipyard. We are very excited because the price was very good compared to vessel prices that have already gone up significantly. Our second slide.
I apologize because I cannot see the slides from where I am. So I would like to emphasize the 62% growth rate in net revenues compared to 2Q last year, EBITDA of BRL 100 million, and we are confirming this level for the third consecutive quarter, including the sales of partial judicial suits. The EBITDA got to BRL 187 million. We also had occupancy rate going up by 87%. Now I would like to call Haroldo to share details of the operations and of our vessels.
Good morning, everyone, and thank you, Flavio. I am going to mention some of the highlights of this quarter in both vessels and services. Starting with vessels, as you can see in this map, this is occupancy rate for 2023. We see 87% for 2Q, and AHTSs and PSVs and OSRVs were the highlight. Also positive to mention UP Coral vessel. We did have some occasional downtimes, RSV, Bandolims, Martin Vaz, as you can see in pink in our chart. In 2Q, we saw Parcel Manuel Luis and Macaé, and so the occupancy rate estimated for 2023 remains at 85%.
Now, let us go deep on this 87% occupancy rate we had at 2Q. We see that operational downtime was influenced by maintenance in RVPs that I mentioned in the previous slide. To the right, we see that the end of the quarter had a 7% increase in the number of days of occupancy compared to the previous quarter. And finally, the average debt was BRL 153 a day, meaning 39% higher than the same period last year, meaning that the market scenery also allowed for renewing the contracts with higher daily rates. Now, results in vessels.
We got to revenues of 330.6%, and part of that number, as you can see on the left, comes from a partnership with Reach Water by the use of one of their vessels because of the lower risk. We have reached BRL 80.9 million in EBITDA for the quarter. We see that part of that was because of the increase in the occupancy rate. We see this 24.5% a little down compared to previous quarter. It has to do also with the Shearwater project.
Now, services. 2Q, we see that net revenues totaled BRL 68.8 million, and EBITDA reached 19.4% with 28% margin. EBITDA was 20% lower than previous quarter, especially because of OceanPact Geoscience portfolio that is less profitable. Compared to the same period last year, we see that it was a significant increase of 33% because of oil spill operations that have a higher margin. The backlog. We got to the end of the quarter with a backlog of BRL 255 million. To the right, you see the timeline of the vessels and in view of the contract with Petrobras, and we also show the end of contracts. We do hope that we will be able to increase daily rates as we renew those contracts. Now, Eduardo de Toledo, you have the floor.
Thank you, Haroldo. Good morning, everyone. It's a pleasure to be with you again. Haroldo mentioned those two segments, and a consolidation shows growth in revenues compared to the same quarter last year of 62%, and compared to the first quarter this year, 19% growth. These numbers are somewhat affected by the Reach Shearwater contract because that gives us low margin, but very low risk. So for comparison purposes, we are excluding that contract.
Even not excluding that, we see a 41% year-over-year increase and 4% quarter-over-quarter. Now, on the right in EBITDA. As Flavio said in the beginning, for the third consecutive quarter, we have had over BRL 100 million, consolidating this standard of operations. Even if we exclude the claims, we got to 29.3% in the quarter, which is well in line with the previous quarter. OpEx. Year-over-year, we see that this 44% is lower than that of revenues and very well-aligned when we also exclude the Shearwater effect. In terms of administrative expenses, we see that it's very well-aligned with the last two quarters. We see a small fluctuation.
CapEx, a little higher than the previous quarter, and that is due to a higher maintenance CapEx, especially because of that, because of those maintenance downtimes that Haroldo showed you when he showed you the map of vessels. Financial position. We closed the quarter with BRL 136.7 million of cash position. We see that it's a very significant difference, and it has to do with selling those claims, those lawsuits.
We signed the contract in June, but we received those resources in July, hence this variation in our cash position. Flavio mentioned the bonds, and that was very well-received by the market, very strong demand, and that allowed for us to improve the debt profile and to pay for the Rochedos that was purchased. Anyhow, next quarter will clearly show the improvement in the debt profile and also of the cash position.
Both indicators will have improvement next quarter because of what I just mentioned. Bank debt and leverage, even without selling the claims, it would have been positive. It is very positive, and now we see that when we start quarters at a different level, it naturally improves the leveraging of the company when you start a quarter coming from this ramp-up of the previous ones. I will give the floor back to Flavio so that we can continue with our presentation.
Thank you, Eduardo and Haroldo. As I was saying in the beginning, we are very happy to have issued our first annual sustainability report in GRI standards and ratified by Bureau Veritas. We worked hard in doing our homework, and we did it in a very realistic, serious approach, not including unnecessary or inaccurate information. It was a very well-done job, and we all learnt a lot and we were all very happy with the results. Also, greenhouse gas effect report. We got the gold seal according to GHG Protocol.
This is part of this report, and we are very happy that we keep on integrating the whole company, and I invite and encourage you all to read this report. Social environmental initiatives. We are continuing doing what we do, and we have some reinforcements for this quarter. Together with Karoon oil company, we started a project to study the meteorological and ocean events in the Santos Basin. We see that these extreme climate events, we know they were expected to get worse, and we see that happening now. We had cyclones, we had Catarina hurricane. It is important that we monitor and we prepare for such events.
Anyone who works in the sea, like us and offshore oil companies, and also the wind companies, if everything works well. It is important that we use global standards, that we use artificial intelligence, neural networks. We keep supporting Guanabara Verde that replanted the mangroves in the region. Also, Mar Adentro Institute with very serious initiatives. Mar Adentro actually has become a benchmark in Rio de Janeiro.
They were mentioned in over 60 spontaneous media reports, with all kinds of information, the number of whales that has increased, penguins. Of course, sometimes also mentioning plastic residues on our beaches and what is it that we can do about it. So we are very proud to be part of that. We keep working with our support to Espaço Zoo. Marulho also. This is a startup company that does fishing nets with recycling materials.
By doing so, they generate jobs for the fishing communities in the area. We will have a moment for questions and answers, but I find it important to emphasize that our occupancy rate was very good. All vessels are under contract. There was no commercial hiatus despite some downtime, and the whole fleet is operational. New contract. We started UP Coral vessel contract, the one that we mentioned.
Daily rate went from on average $25,000 to $45,000, and we expect to be able to do the same in all the contract renewals. Petrobras has started several requests for proposal of public tenders, and we know that they have need in all the categories. So we see our forecast is of an increase in demand, but not only from Petrobras, for other companies, including those that render services, for example, for Petrobras. I would like to thank you all for your attention, and I am here at your service for questions and answers.
Let us start questions and answers. To ask a question, use the Q&A button. You can find the icon in the bottom part of your screen. If you want to ask your question out loud, just write, "I would like to ask a question," and we will open your microphone. You can also send your question in writing, just typing your question in this field, Q&A. The first question comes from Gustavo Sadka from Bradesco BBI, and he will ask it himself.
Good morning, everyone. My first question is about Reach contract. Could you give us more details, and how it affected EBITDA? I think it would be important to mention any cost impact and as a result in EBITDA. My second question is about the occupancy rates that has really improved. What is the trend for the second half of the year? Thank you.
Thank you, Gustavo. I will give a brief answer, and Eduardo will give you more details. This contract means it is one of our partners, the Norwegian company that operates our ROVs, and they won a contract to support Shearwater, which has a contract with Petrobras. For this purpose, they have to bring their foreign vessel here, but foreign vessels cannot operate alone in Brazil. They need to partner with a Brazilian company.
They came to us for us to do that, and also with labor, because depending on how long that vessel stays here, they have to have a certain share of Brazilian local labor. So we support them with their local operations, and Shearwater pays us for that freight. We paid Reach. It is a back-to-back contract. There is no risk, and we have a margin for that service. That is the work involved. Eduardo can give you more numbers.
Hello, Gustavo. That is all correct. The EBITDA margin is of about 5%-7%, depending on some variables. This is why that distorts numbers a little. That is why we removed that from comparison, because that is a low margin, but there is no contract risk. There is no capital allocation required. Reach actually allocates money in advance, whatever we are going to need to operate the vessel here in Brazil. So there is no need for capital. Very low risk. There is a low margin, but anyhow, it does contribute to our EBITDA. That is why we decided to accept that. Of course, we have our intentions in the long term with business with them. But in the end, it is positive.
Now, Gustavo, you asked about the occupancy rate for the second half of the year. That map of vessels shows that we expect that to be very well in line with the first half of the year. It is a very positive momentum. All the vessels are occupied. Third quarter, it looks like the second quarter, not much difference. As for the fourth, we estimate something to be a little lower, but it is highly dependent on those bids that Flavio mentioned because Petrobras sends out a Bidding, request for bidding. In the meantime, they asked to extend our contract waiting for that bidding. This contract can have a positive development based on negotiations that are still ongoing.
Thank you. Just to finish this, in the third quarter, it is expected to have a higher occupancy rate because of Coral?
Well, in this quarter, Coral had a lower contribution. These maintenance downtimes, they happened in vessels where we have our own ROVs. Because of those two factors, we do expect to have higher occupancy rates.
Thank you.
Next question, Henrique Cunha from JP Morgan. He sent it in writing. Two questions. Could you please update us in the situation of OP versus PBR? If you have any details, including numbers. Also, the Shearwater partnership, is it expected to go on for very long?
Thank you, Henrique, for your question. Starting with the second question. This partnership with Shearwater is for one contract specifically that has a fixed term. Reach is our main partner, and Reach is serving Shearwater. We do not have anything that is still certain, but our prospect businesses are with Reach. Well, the OP versus Petrobras, that lawsuit, there are two that are very close to each other, one about Turquesa, one Coral, and they are about on the same stage.
Petrobras has appealed. Appeal was denied, and now they are lodging an appeal to the higher courts in Brasília. Now they argue that there are subject matters that should be under the ruling of the higher courts, not the state courts. In terms of precedents, they have split decisions in both ways. We do not know exactly where this is headed, but this is where we are at. As for values, these two and the other three that are in an earlier phase, still in the trial court, those five claims together, today, it is somewhere between BRL 500 million-BRL 700 million .
It depends on the adjustment rate that you decide to use or the exchange rate that you use to convert the monies that were owed back then. Some of the diversions also have to do with that, have to do with the indexes that were chosen. This partial selling of legal claims, we have already done that. We would not be owed the total amount of these numbers if in the end we have a positive ruling.
Another question we received in writing, the person did not identify themselves. This decrease in daily rate, even though small in view of the previous quarter, is that because of the exchange rate?
Well, I believe the number one reason is because we have those maintenance downtimes of vessels where we have our own ROVs. So, that is where we have higher rates in these vessels. That is why we saw this slight decrease on the average daily rate.
Two questions now, also sent in writing. Ricardo Franklin, he asks, well, I apologize. OceanPact Logistics, it was not mentioned. Could you please comment on the initiatives that are ongoing and what the future plans of the company are in this field? second question from Ricardo Franklin, still regarding OceanPact Logistics. What were the results of this segment in this quarter?
Thank you, Ricardo, for your question. The Açu base that is under OceanPact Logistic has rolling bridge for high tonnage, and it is a very busy part of the port, and we have several ongoing processes, but none that we can share for now. We are very optimistic. We find that to be an excellent area, proximity with the port. The project of supporting oil companies is the number one focus, and then the decommissioning also requires important areas, and this area we have is very good.
And we still have a real option if offshore wind platforms, if they are successful, we will be very well-positioned. I do not know if Eduardo would like to add anything, but still, this is a very small segment. Today, it is basically services that we have and not any relevant contract, substantial contract.
No, I do not have anything to add. That is all correct. This is very promising business, but still with very small contribution in our results.
Mateus Varela asks a question. To me, the reason for this higher pressure on company's cash flow was not very clear. Could you please explain?
Well, what happened was we sold the claim in June. The EBITDA is improved, and we see that in June because that is when the contract was signed, but monies were received early July, meaning that when you close the P&L of June, it is as if we have BRL 100 million in receivables. That is because of how close it was to the end of the quarter because it shows very high receivables, but it was due very soon after that. In the whole year, it would not mean much, but because of that timing, it had impact.
If you want to ask questions, I remind you to just click on Q&A in the bottom of your screen. You can type your questions or you can request to have your microphone open. Another question in writing, Victor Hugo Moreda. What can we expect in total CapEx for the second half of 2023 and for the year of 2024? An increase or the same levels of the previous two quarters?
Thank you for your question. In the third quarter, we will have the purchasing of those two companies mentioned by Flavio , Rochedo de São Pedro and São Paulo. This purchase, total expenditure will be BRL 90 million. In the third quarter, we will see an increase in CapEx, but excluding that extra CapEx for the acquisition of those vessels, then we expect it to be even lower than the average of the first half of the year.
What I would say is that the pace we expect is expected to cover our maintenance CapEx and also a normal occupancy rate. Of course, it will depend on bidding. We participate in our willingness to make any higher investment because of some bidding, for example. But I would say that the first half of the year is a good proxy of this ratio of expenses.
We do not have any further questions. Any further questions? Oh, yes, we just received one more. Ricardo Franklin. OceanPact started as offshore response services and solutions. Then it advanced to PSVs, AHTSs, and other vessels. Now, more high-tech vessels like RSVs. What is the next step? Any plans to advance to MPSV?
Thank you for your question, Ricardo. Excellent question. The next step is to profit from the investments we made since the bonds, the IPO, and those two series of bonds issuing. We purchased assets at very good prices. We were lucky to be with low debt levels in the market when the vessel prices were really low. We invested in ROVs so that we are not fully dependent on partners when operating RSVs, because this is like starting a business from scratch. We have six ROVs that are ours, over 130 people in that segment, and we were able to do that in two years.
Meaning that we did a lot of internal homework to make this work so well-adjusted. Your question is very good. MPSV, as it is similar to RSV, it has high-capacity cranes. It has resources of ROVs. It could be very useful in the decommissioning phase. We will be close to those vessels. We might be working with partners, we might be doing that with ROVs, or at some point, we might invest in one of those vessels if we, at some point, find it appropriate, maybe with another issuing so that we can advance in this direction.
This is something we do consider, these multipurpose vessels for installation and also deinstallations. This is a very nice asset that together with our base at Porto do Açu can really mean something very positive to our future. Always with this mindset of reducing leverage, that's where our eyes are, and this is how we've been working. Some may have been a little too hasty on taking on huge debt, but we believe that this segment is cyclical, so we should be very selective when it comes to our investments.
On the other hand, we are a reference for several international partners that see us as a reference for partnerships here. We have done that before. We have done that with Geoscience. We had one with Gardline until it was sold internationally, and we acquired their Brazilian operation. When we see the need, the demand in the market, and our ability to do something well done, focusing on protecting the environment, we will always mean game. Thank you for your question.
Talita Calais asks, "What are the expectations for net margins for consolidated 2023 and 2024?"
Thank you for the question. For 2023, our expectation is very well in line with a first and 2Qs, the EBITDA margins we've had, and excluding the Reach Shearwater factor. I find those levels to be reasonable for the next quarters. Maybe a little better in the third quarter. Now, 2024, I believe it's still a little too early to say. As Haroldo said, that's lots of renewals that are to happen. We are expecting several new contracts, and in view of all the evolution of the market recently, the expectation is that daily rates will be higher than they are today. That's what we expect for 2024, but I don't have a clear vision yet. Anyhow, it is an upward trend.
Victor still asks to complement and to clarify, BRL 90 million is the total price of acquisition of both Rochedos?
Correct. Total for both, the price we paid in the end, because they were under freight for a while, and then in the end, we purchased them, and that was in July, and we paid $9 million for each. It's $18 million, which are approximately BRL 90 million , as I said.
Okay, to close our Q&A session, I would like to give the floor to Flavio once again.
Well, if you give me just a second, Flavio, before I give you the floor. For this next quarter, I would like to say that our expectation is on the vessels side, it is in line with what we've had. Occupancy rates are in line. Our results might be a little better than 2Q, but still similar. Services, we expect 3 Q to be a little better than 2Q. There's the environment contract, the one about sediment. For 3Q and 4Qs , we expect that to be better. Third Q, even better than 2Q. That's what I wanted to say. Thank you.
Thank you, Eduardo. Thank you all very much. Thank you for your questions. I forgot to mention that we had the OceanPact Day this year, and this was a very positive opportunity to gather our executives and our investors, including our executives who are in charge of services, something that's not that visible and sometimes not as easy to model and show to shareholders. We also had a broker of Arctic Securities, Norwegian company, who gave us an outlook of the market, meaning very little building of ships, of vessels, higher demand.
Some vessels just died or were sent to scrap. Those vessels that were not in operation for too long, then it's too expensive to put them back in operations. Supply is reduced, demand went up, and with the competition of renewables, also in U.S. East Coast and the North Sea. We see that market trend is favorable to us and in a reasonably long cycle. Our main homework is to navigate well in this period. As I said, being mindful of extreme climate events and investing in technology for measurement. Thank you all very much. Thank you for your support, Eduardo and Haroldo Solberg, all the team. We are very excited. Thank you.
We come to the end of our conference for the 2Q 2023. Thank you all for your participation. Have a good day.