Good afternoon, good morning, and welcome to the second quarter presentation for DOF Group. I'm here with Hilde Drønen, our CFO, and I'm Mons S. Aas, the CEO. So, a few comments on the first page here, showing one red boat and one blue boat, and of course, that's obviously because we have announced in the quarter a transaction with the Maersk Supply Service for acquisition of Maersk Supply Service A/S. We have a few slides on that later on, and we'll come back to that. First slide here on DOF at a glance just shows what we are. So we are, have operate now fifty-seven boats around the globe. Some of them was thirty-three owned, five on charter, and the rest on management.
We operate from all continents, main hubs, Australia, West Africa, U.S., Norway, U.K., and so on. And then we have around. I think we had 4,300 employees by end of the quarter. We will come back to the numbers, but we see, of course, the revenue and the EBITDA have continued to grow also the last half year. And what we do, we own vessels, as said, and then we own one of the large fleet of subsea equipment ROVs globally. And we have a very specialized workforce of engineers, ROV pilots, surveyors, project managers, and so on. And what we deliver to the clients are subsea projects and mooring projects, mainly around the globe, yeah.
So we have an organization that we see here produces margins on top of the vessel revenues. So we like to call ourselves an integrated, you know, offshore services globally and so that's what we do. And of course that's partly also why we like the Maersk acquisition so much, because you know we don't only get a fleet of very good boats into the company, but we also then will be able to put additional services on it. So we claim that a fleet like that are more worth in the DOF system than in a traditional shipowner system. On quarter four we have had.
Hilde will, of course, come back more to the numbers, but short is that we delivered $122 million EBITDA in the quarter with a revenue of $361. We had a good performance in APAC and in the Atlantic region, but lower than in Brazil, and we, due to dockings, had some maintenance, and then we had Skandi Amazonas mobilizing for a new contract. So she was out a fair last portion of the quarter without income. Fleet utilization 89%, and perhaps what we are most happy with in the quarter is the order intake.
We had a bit more than $1 billion in new orders coming in in quarter two, and after balance date, we have had $400 million so far. It's been record high in the quarter and after the quarter. And partly, of course, due to the high backlog, we will come back to that, how that total backlog distributes year by year going forward, but a very high backlog for second half this year, and looking at our own revised forecast, we lift our guidance to $500-$520 from $490-$520. So we, of course, expect improved earnings in second half.
And of course, some explanation is Búzios also, of course, been off-hire for the whole first half, back in full operation now first August, and of course, she will contribute in second half. Amazonas, then as I mentioned, off-hire for the last portion of second quarter, but then on contract, on a new two-year contract, so she will be fully on hire in second half. And then we also have highest project activity in several regions now in second half compared to first half. And some small one-offs, for instance, $2 million down in cost on the Maersk acquisition booked in first half.
And as we said, you know, we signed an agreement to acquire Maersk on July 2. 22 boats, subsea and anchor handling vessels, and then closing expected in quarter four. And also see, you know, very important key number coming down, so we see net debt against EBITDA, you know, last twelve months at 2.7. So that is moving in the right direction. I'll leave that like that, and Hilde will come back to more details on the numbers, yeah. And then on the backlog, we saw, you know, a bit more than $1 billion order intake in second quarter. $400 million after balance sheet date. And so we, by end of the quarter, we had $2.6 billion in backlog.
We're adding, of course, the $400. You're around 300, but of course, we build on a bit as well. So, but it's record high. And if you look then at backlog for second half 2024, of course, the $600 shown here is before, of course, the $400 is distributed. So we think we are $650-$660 backlog right now for second half, and of course, the revenue for first half was 692 or something. So of course, it's very close to 95% of the revenue. In fact, first half, we have a backlog, yeah, for second half.
So very low uncertainty on that, and you know, looking at the entire fleet, it's perhaps some weeks on three, four boats that could potentially be exposed in December. It's very high backlog, and that's why we of course lift the guidance. If you look at 2025, of course, we see here slightly below $1 billion. If you distribute the 400 and the portion or in 2025, we are above $1 billion, and of course, with the revenue guidance here between $1.4 billion and $1.5 billion, at least we are 70%-75%. You know, all our backlog compared to revenue we have in 2024.
So it's starting to shape up for 2025 as well. Also, of course, we see now, you know, that the backlog now with some of the contract we just did, you know, they have full period ending in 2029. So of course, we also now have started to build backlog 2027, 2028, and into 2029. So it's so as I will say, you know, I think it's a record high backlog, and of course, then on rates margins, that is either, you know, equal to the last peak we saw on the market or higher. Yeah. So it's very good levels in the backlog now. Then next page here is of course showing what contracts we have done.
And of course, I cannot spend time on all of them, but you mention a few, and of course, you know, if we mention this called a Skandi Iceman, which is a three-year IRM contract with Equinor and North Sea, three-year firm, plus three optional years. Of course, it is number one, it is a very strategic, important contract for us in the North Sea. Number two, of course, it shows that we are able to grow on third-party boats and of course, the good rates, good margins, and so of course, that will help lifting the not only revenue, but also the EBITDA for 2025 onwards compared to this year.
And perhaps also mentioning, you know, I'm happy with all of them, but perhaps also mentioning Skandi Vitoria, Skandi Niteroi, where perhaps we see the highest uptake in rates. Example is, Skandi Niteroi today have a day rate of around, all in, you know, gross, day rate, around $150,000-$160,000, right? The new day rate is close to $250,000. So it's an enormous uptake in day rate, and the same applies for Skandi Vitoria. So, so, and of course, perhaps the last one to mention is, of course, the, the recently announced Skandi Açu, where we actually see no backlog, until June, July 2029. Yeah.
In general, you could say that all vessels' new contracts are on higher levels, and some of them much higher levels than the present contract they work on. Yeah. What this tells us is that we think we will continue to increase you know the EBITDA going into 2025 and 2026 compared to 2024. And then some slides on Maersk Supply, and first slide here is why do we think this makes sense? Of course it is you know we are in what you can call a very strong global market for both subsea tonnage and anchor handling tonnage.
And of course, with that as the background, of course, we see, you know, immediate fleet expansion, with a modern and very high-end fleet, of course, it makes a lot of sense. You get immediate earnings and of course also then on costs, compared to people, you know, looking at new builds, you know, much lower cost and much earlier earnings. Yeah. We have very good geographical fit. I have a slide on that later on. So of course, there is synergies to look and of course you get the scale and you get a presence in all the regions you operate in, making you even more relevant than we are today.
As I said, very attractive priced assets, and then, you know, very strong potential for earnings, not only on the vessel, but as mentioned also for DOF gradually to add projects earning on the Maersk fleet. A.P. Møller Holding, the owner of Maersk Supply Service, will come in as a long-term owner in DOF, and we look very much forward to that. They have the same ambitions as us, and we think they will be a good long-term owner for in the DOF Group.
Hilde will talk a bit more about the financing of Maersk, but of course, the short is that it's very robust, it's low leverage, and we also think it will increase, you know, the dividend and capacity in in DOF going forward. So I'll leave it like that slide. On the next one is just a summary of what Maersk Supply Service is. When we buy it, it's 22 vessels. It's operating globally. It's a very long history. It's an average age of the fleet of 18.5 years, and it's 1,200 very skilled employees. And then on the left, right-hand side here, you see the mix of cable layer vessel, construction support vessels, and anchor handling vessels. So it's a very nice fleet.
Of course, these boats, the two on the picture, the Maersk Installer, which we buying here and three sisters, and the Maersk Minder here, and which we are buying here and four sisters, you know, they are the youngest. They are five, six years old. It's the youngest CSV and the youngest anchor handler in the global market, yeah. So, what we got? We got, the combined company will be the largest player in the market. And, so it's the largest owner of construction vessels, subsea vessels, and it's the largest owner of what we call high-end anchor handling vessels, yeah.
It's a very interesting market position and of course making us even more relevant for all of our clients around the globe. And of course, we have had a bit of feedback from clients around the globe after we announced it, and that is very positive, and they also look forward to see this combined entity working with them going forward. Then this is showing where we are, how it will look globally. So we get, let's say, good scale in each region.
We should be able to look at the cost, but also, of course, also then on being more relevant, also on the sell side, it gives a lot of opportunities, yeah. So the places where we grow most is in North America and it's in the North Sea. So it's a good scale and very relevant globally with the new fleet and the new setup, yeah. The next slide is showing you know the coverage on the Maersk fleet, and of course, as mentioned, of course, we, DOF, are almost sold out in 2024, have 70%-75% coverage for 2025 and so on.
So of course, we were interested to have a fleet with not too high backlog for that reason, but also of course for the reason that we want to gradually, you know, add services on that fleet. And this shows that the backlog in 2025 and into 2026 is not very high in Maersk Supply. And of course, that is how we want it to be, and as I said, we see a lot of opportunities globally and the market is very strong. So we expect we think this is a good fit for us and a very good timing in the market, yeah. So this is just on pricing, yeah.
I don't go into detail, but we you know broker values on the fleet we are buying is around $1.3 billion, and adjusting down for cash and so on. And what we are paying, it's you know we are paying on close around 71%. If you look at the footnote here, around 71% of that, if you look at the how the balance sheet in Maersk Supply will look when we close the transaction. We think it's it is a very attractive deal on what you call steel values. If you look on the next slide here you know on the earning potential.
You know, this is, I cannot guarantee you this, but it's from, let's say, playing with numbers where we have taken eleven on the Maersk boats, and we have said if we are able to do the same on those boats as we did on some of our own boats, this will be the result. So we are saying that if the five largest anchor handlers, newest anchor handlers in Maersk, the M class, are able to win contracts similar to what we did with Equinor and Iceman and Petrobras and Skandi Amazonas, then they will make money as according to the bar here.
Then if we, on the I class and the Forza, are able to do the same as we have done on Skandi Seven, Skandi Skansen, and what we are doing on Maersk and Stord, that what we have on time charter to us, then we think market-to-market for those 11 boats, you know, are between 240 and 2-
60
... $60 million. Yeah, which gives the 4x to 3.6x on those 11 boats alone. Yeah, and of course, that is perhaps the slide that really shows why we think this is an attractive deal, also on multiples for Dovre. And of course, then you can add 11 other boats on top, and so we think it's a very attractive deal when we come into to, you know, when we are when we do new contracts and get these boats into our platform. So then I leave it to Hilde. Please, Hilde, about numbers, so financial highlights. Hilde, please.
Thank you. Main highlights for this quarter is a very high order intake. Result, more or less, the EBITDA, more or less on consensus, a decent number. Strong cash flow, but there are some special items, especially on the financial cost and on the EBIT line. So, this quarter, we achieved an EBITDA of $122 million versus $121 million, same period last year, and year to date is $236 million versus $225 million. The operating profit, EBIT, is $111 million versus $128 million. And as you can see, there has been some reversal of impairment, previous impairment, also this quarter.
And that is actually four vessels where we have been awarded new contracts at significant higher rates than the existing contracts. So that has been the basis for reversal of previous impairments. Two of the vessels are owned by the DOFCON JV, and two of the vessels are owned by Norskan. If you look at the net interest costs, they are more or less in line on the previous period and also year to date. However, we have -$62 million, which is net unrealized currency, and that is a non-cash amount. It's related to Norskan, who is reporting their numbers in Brazilian reais, and the Brazilian reais has weakened significantly towards the US dollar.
So that's the reason why this is put into the P&L. It has only impact on the P&L and not on the balance sheet. Taxes, 13 versus 21. A large portion of this is actually payable, and it's a withholding tax. So that gives a net profit of six versus hundred and three. And of course, again, the financial unrealized impact on the financial has impacted the numbers highly this quarter. If you look to the right, there you see the EBITDA per segment. And as you can see, DOF Subsea is continuing performing well. DOF Rederi, a stable operation, but a disappointing performance in Norskan. That is mainly due to vessels being off-hire, mobilizing for contracts, and also planned and preventative maintenance. We will come back to that.
Looking at the balance sheet, no significant event on the non-current assets. Tangible assets, which mainly include vessels. Stable developments since year-end. A contract cost, that is actually mobilization costs to new contract, which is amortized during the contract period. And is partly impacting the EBITDA quarter by quarter. So, the cash-generating EBITDA for this quarter was actually 127 if we didn't amortize the contract costs. Deferred taxes, no big events this quarter, neither on the non-current assets. Looking at the receivables, a growth from year-end and also from previous year, and a significant growth the last 12 months, which reflects increased activity in the group.
So that gives total assets of $2.9 billion versus $3 billion or approximately $3 billion for the full, by end of this quarter. Equity is developing positive, which is, of course, good. Non-current assets mainly include secured debt, but also leases to... Because we are leasing three vessels from external owners, and they are booked as financial leases. That also reflect the current portion of debt of 168, which is the twelve months payment on the long-term debt. Other current liabilities, nothing much to comment on. And of course, looking at the columns on the right side, we see a positive development on net interest-bearing debt and on the equity.
Of course, the net interest-bearing debt to EBITDA has reduced from 3.3 times to 2.7 the last twelve months. If you look at the cash flow, as I said, the cash flow is decent. It's $119 versus $75 last year, and $228 versus $142 for the full year. Stable interest payments and also taxes paid. As I said, that's mainly withholding tax, but also some corporate tax. Sale of tangible assets is one PSV that was sold in April and delivered to new owners. CapEx is mainly maintenance CapEx, class dockings, and planned maintenance. Other changes in investing activities, that's actually.
Part of that is, which is close to $7 million, is that we have acquired the minority shareholders in DOF Installer. Which is quite important for DOF Subsea in particular, because that gives us more flexibility on the cash and cash planning and also debt, but also related to debt payments. Net payment to borrowings is 63, and on lease, it's 10. So that gives in total reduction on cash payment on debt of 74. So, the same is showing at an aggregated level on the right side. If you look at the interest-bearing debt, where the gross debt is $1.729 billion by end of last quarter, and 106 of that was actually leases on three.
It's mainly three financial leases, meaning hiring vessels from external owners. The secured debt is 1.6. And here you see that, as already mentioned, 74 of that debt is repaid, and four million is currency impact. And the debt by end of the first half is 1.6. And as I said, this unrealized currency impact coming from the Brazilian entities is not impacting the balance sheet. Only four of the unrealized currency is impacting the balance. The operational performance, DOF Subsea, again, showing good performance and close to 100% utilization in Asia Pacific, and also very high activity in the Atlantic region and stable in the US region. Where we had lower utilization than the previous quarter is actually in Brazil.
And of course, the Brazil activity on the DOF Subsea side is mainly impacted by the PIDF project, and that had lower activity, partly due to a 15-year class docking of one of the vessels working on that, but also other planned maintenance. But as you see, all in all, DOF Subsea is developing positive, and the last 12-month EBITDA on DOF Subsea is $265 million. Looking at DOFCON, and for obvious reasons, the EBITDA development, the last 12 months, is lower than in 2023, and that is due to the Skandi Búzios being off-hire the full quarter. But the good thing now is that the vessel is on hire, so and that is from first of August.
And of course, the contract awards on two vessels for this company, but that is applicable from 2025 and onwards. In Norskan, as I mentioned earlier, the operation has been impacted by not only the utilization, but also the costs due to maintenance on several vessels, but also the fact that Skandi Amazonas has been off-hire 45 days to mobilize for a new contract with Petrobras. That contract has now started, and the vessel is fully operating on the new contract. And of course, Skandi Amazonas is really affecting the numbers for Norskan. Very good performance in first quarter from that vessel and also last quarter, last year.
There you see that the last twelve months in Norskan is more or less stable. DOF Rederi, stable operation, nothing much to report there, but there's one less vessels due to delivery of the Skandi Gamma. Looking at the debt, I will not go into all the details regarding the main terms on the debt and, as informed before, that the existing debt in the DOF Group is split in four silos. That is after the restructuring in March last year. This is why we are reporting in four silos.
As you can see on the key numbers, especially on DOF Subsea, they are developing positive and the net interest bearing debt, the last twelve months is, which is now two times, so very positive development. Of course, DOFCON has been impacted by the Búzios incident. However, going forward, the operation here are expecting to be stable, and also at increased earnings due to the new contract awards on the three PLSVs recently published. On the Norskan, which is where we have the weakest balance, and the net interest bearing debt to EBITDA is 7.2, so it's still above seven. However, this is the company where we have the longest term on the debt, in addition to DOFCON.
Around $420 million of the outstanding debt is with BNDES, where the first maturity is in 2030, at stable and good terms. So where we need to refinancing in Norskan is around slightly below $80 million. In DOF Rederi, you see the net interest bearing debt is now 1.3, and we don't see any refinancing issue on this company at all. But just a few words on the refinancing for the group. We are now working and preparing for the refinancing to establish a good and flexible capital structure for the company. And we are also starting looking to see what should be the right capital structure for paying dividend going forward.
We are not at all concerned about the refinancing for the group because we see that all the silos are developing in a positive way. So this is our main work this second half is to plan and work on a refinancing of the group. And I think we are well positioning for that. Looking at Maersk, which is fully funded on the cash portion, which is expected to be in the range of $550-$560. It's depending on certain on when the closing will be. After the private placement that was completed in July and the facility with the four lenders of $500 million, that is the financing is in place.
As you can see, it's not a high leverage we are planning for this company. If you take the full value, the broker estimate, the fair market value of the fleet, we are talking about a loan-to-value of 38%. But based on that, we are actually acquiring a company without debt and generating cash. We expect to see around between 20%-30% loan-to-value at closing. The closing is expected to happen in fourth quarter, but it's depending on the competition filing. So that was it on the financing.
Yeah, this slide, you know, we have updated the guidance for 2024. So, on revenue, we have narrowed the window, and also it now shows $1.4-$1.5 billion. EBITDA, we have narrowed the guidance, so taking it from $490-$520 million to $500-$520 million. And of course, based on what we said, a very strong backlog for second half. Depreciation, also narrowing those, so now it's $170-$180 million. Net operating income, as before. Interest cost, as before, and tax payable, we have lowered it $40-$50 million instead of $50-$60 million. Which we pay less tax than we guided previously.
On CapEx, it's up from $100-$110, which used to be $90-$100. And the only reason for that is, of course, is the new contract with Equinor IRM in the North Sea. So of course, it will give nice earnings, but we have to invest in some new subsea equipment or ROVs for to put on the boat we are chartering in. So that's the main change on the guiding. So positive here, of course, is that we are increasing the EBITDA guidance a bit. On outlook, so it's now $500-$520 for 2024, and so meaning that second half, you know, it's between $265 and $285, and midpoint $275.
And of course, it's if you analyze that, you have five fifty. I'm not saying you can analyze that, but of course, it's an interesting number to note that midpoint here, second half gives you five fifty in run rate for a year. Yeah. And you know, we just had a first glance look at the July numbers, and yeah, you could say they didn't disappoint us, and we you know, we see there is a good potential in the fleet based on the July numbers we have seen. Yeah. So.
Then, as I said, you know, we have Skandi Búzios back on. It has been off, I know, for a long time, and back on 1st August. Of course, that will help on the earnings going forward. Skandi Amazonas was out part of second quarter, fully on our own, and will also help. Then, you know, we have higher productivity in a few regions, which also we expect to deliver better numbers. Yeah. And on the bottom here, it's a picture of four boats, and of course, these are boats that, you know, it's the first one on the left-hand side represents Skandi Vitoria, Skandi Niteroi. Of course, they will not start a new contract before in second half 2025.
You know, the Skandi Acergy, they will go on a new contract in March-April 2025. And then you have the IRM contract, you know, commencing in the spring of 2025, and then you have Skandi Seven here that was recently renewed, that will start in November. So what we are trying to say with those pictures is that we think the growth in EBITDA, you know, will continue also after second half of 2024. Yeah. So we look forward to starting the budget process for 2025, and we look forward to commencing these new contracts. Then we have one slide here.
We have just sent out an invitation to Capital Markets Day on tenth September in Pareto's offices in Oslo, and of course, that's the day before the day our conference starts, so we think that's a good timing for it. You are all welcome to attend that, starting 11:30 A.M., and then refreshment from 11:00 A.M. Of course, we have invited some of the people we have around the globe, so they will give you a deeper insight into a couple of regions, what they are doing and how they see the market. We will also spend more time on the Maersk Supply transactions.
We will give what we call a financial update, which means that we will, let's say, start to share some thoughts on the refinancing and timing for the refinancing, and of course, then also, perhaps, look a bit on if we do a refinancing, you know, how the dividend potential looks like in the group. So that will be a very important session, and I leave it like that. You are all welcome, tenth September. Hope you show up and look forward to share me more insight into DOF and the markets on that day. Thank you. That was the end of the presentation, and hopefully you have some questions we will try to answer as best as we can.
And I think we forgot to mention that, but I guess you can use the questions should be sent on, what you call it.
Yeah, through the webcast functionality. So we have a few questions already, and if you would like to ask a question, please feel free to use that functionality in the webcast, to submit your question. The first one is, "Do you expect to be in a position to pay dividends in 2025, and if so, in which quarter of 2025?
No, as we just said, you know, we will talk more about that on tenth September, and of course, we can't say yes or no to that today, but we are saying that there is a potential if we decide to do the refinancing in... Of course, the refinancing has to be done by January 2026, so meaning you have to do it latest in second half 2025. But of course, there also is an alternative to do that, you know, in during the fall, now and into first half 2025.
Of course, then we might be in a position to pay dividend if in the spring of 2025, because of course, the main restriction of paying dividend is because the financing we have on part of the fleet now. You know, there is a covenant saying we cannot pay dividends.
... And regarding the upcoming refinancing, what is your view on appetite from banks?
Hilde, you might answer that, please.
Yeah. As I said, when I presented the debt status, we are not concerned about the refinancing at all. And one reason behind that is because that we see an increase appetite from banks. That includes the existing banks, but it also includes new banks. So, and I expect that it's better earnings and it's better markets that will increase the possibility to for new banks to coming in.
Perhaps also adding, of course, the part of the group that ought to refinance, of course, the long-term debt in Brazil will not be touched. So, of course, what is to refinance is mainly DOF Subsea and DOF Rederi, and of course, when Hilde showed you the key numbers for that, of course, you see the gearing level, the debt level in those two silos are very low. Yeah, so DOF Rederi was down at 1.3 or something-
Yes, yes
... on net debt to EBITDA, and DOF Subsea is around two, and of course, will continue to fall. Yeah. So that I just wanted to add that, yeah.
So what's important on the refinancing is to ensure flexibility for the group, flexibility for the operation and also going forward to be able to pay dividend. But as your previous question, when that is going to happen, we can't say that today.
We have a few questions on the unrealized currency effect for this quarter. Perhaps you could take a moment to explain where that comes from again, and how that impacts the balance and cash flow of the company?
Yeah. Number one, it does not impact the cash flow, nor does it impact the balance. It only impacts the P&L, and 58 of the 62 million USD is coming from our Brazilian activity, and it is because in Brazil, we are using functional currency in Brazilian reais. We are not allowed to use the US dollar, yet we hope that we can do going forward, but today it's not possible because there are such costs and also revenue in Brazilian reais. That's the main reason. The Brazilian reais has weakening significantly towards the US dollar, and that is why this is coming as a P&L effect. But again, no cash impact, no balance impact, only on the P&L.
So what happened is, under the net profit, we have other comprehensive income, I think that is the name, where this is actually reversed again, so the equity is not impacted, the debt is not impacted.
Thank you. And will you consider any vessel sales in non-core segments, especially in light of the MSS transaction, once that is complete?
I think we have said that before, of course, you know, of course, we have. You have seen we have sold a PSV now and then, and of course, we will always continue to sell non-core vessels, but of course, also more core assets if the price is good enough. Yeah, so that's part of the business. So we... But of course, so I think right now, of course, if you look at the second hand values, I still they have, you know, they should move further. You know, the underlying earnings are not, as I see it, fully reflected. But we... Yeah, a long answer, so the answer is, of course, yes, to the question. Yeah.
Yeah, and if we look towards 2025 and 2026, how much of your available vessel days, excluding MSS, is currently open?
As we said, of course, it's you saw the backlog for 2025. We are talking after the, you know, the four hundred after balance date, you know, we were talking between $1 billion and $1.1 billion in backlog for 2025. And of course, that you could say that revenue in 2024 around $1.4 billion, perhaps, of course, it's 70%-75%. And of course, that is also reflected on the vessels that you might have 25%-30% of the capacity available. And of course, then you have some options, you have some variations towards the backlog report, of course, is just, let's say, the basic scope.
There are some available spots, but of course, it's also a very high activity on the tendering side. Of course, it's normally from now until Christmas, we see, of course, the highest activity on, let's say, in the project market, you know, on securing backlog for 2025. Of course, then in 2026, we said we had perhaps between 650 and 700, so of course, getting close to 50% of the capacity sold, yeah.
We've seen DOF and other companies fix vessels on long-term contracts, which start up one to two years into the future. Is this common of, for the industry or more a reflection of the current market?
You know, it's a difficult question to answer, because what you in general see, of course, is that clients around the globe, you know, when companies like Equinor or Shell or those guys move from fixing one-year contracts to three, four-year, five-year contracts, then it's a sign that the market is turning, yeah. And of course, it's the same on the owner side. Of course, you are very reluctant to go long on low rates. So, I think what you see now is a reflection that both the charterers and, you know, the charterers now start to think that this will last long, and that's why they are trying to secure capacity, you know, long capacity. So, I think that's the answer, yeah.
Whether you fix them forward, of course, it depends a bit on the vessel type. Of course, you see more fixing forward on subsea tonnages than you typically see for a PSV, yeah. Of course, a lot of the subsea projects, of course, there is, you know, a lot of engineering and project planning before you go offshore, yeah.
Yeah. And on the PSV that you mentioned, can you update on the contract backlog in this segment and your near-term exposure in light of the softness in the North Sea now?
Yeah, I'm happy to do that. Of course, for us we have two boats that one in October is up for renewal, and then we expect because the option is below market, so we expect that to be taken, and then we have one boat coming off in October, and where we are, let's say, in a tight dialogue on a new contract for her, so of course it's so today of course we might have that last boat, if we are not able to land that contract, we might have her exposed, but likely we will be hopefully soon sold out this year, and then also meaning that we are almost sold out for 2025, yeah.
So we don't see this weakness, especially in the U.K. spot market, as you know, influencing us at all. The boat we are talking about up for renewal in October is actually in Asia Pacific, yeah. So, yeah.
Are you able to share anything on planned dividends in the DOFCON subsidiary, joint venture with Technip?
You know, I can share my thoughts, yeah. So my thoughts is that, Búzios is now back on IR. Vitoria and Niteroi are two new contracts, three contracts on Vitoria and Niteroi starting in second half 2025, meaning you are into close to end 2028 on those, and then as you until 2029. So of course, it's the steadiness of the cash flow, and that don't want you will be strong for the foreseeable future, yeah. Then we are meeting our friends in Technip, you know, two weeks from now, and where we discuss it.
Perhaps then, I will not comment on any numbers before we have had that discussion, but of course our overview of course is that there is room for good dividends from that, yeah. But we will. It might be that on the Capital Markets Day, after that we have met Technip before that, we can put some more flavor into it.
All right. That concludes the Q&A segment. So thank you, Mons and Hilde, and thank you everyone for your questions and for listening.
Thank you very much, and have a nice evening.
Thank you.