Hello everyone. It's a pleasure to welcome you all to this Doff twenty twenty five Capital Markets Day. We will be running a program here for approximately three hours with an intermission approximately halfway through. We will get an introduction or walkthrough of various aspects of the Dof Group. Starting out first presenter is CEO, Manzorsa.
Thank you, Rolf. So, it's welcome to all, and we are very happy to have this Capital Market Day. And with me, I have EVP of our EPs for North America, for The Atlantic and Brazil And our CFO, of course, Martin. So hopefully, you we can give you a picture of what we are doing globally and also in the markets. And I think they will confirm what we have tried to tell you that we are doing very well globally and that the opportunities and the markets are still very strong, and there is a lot of opportunities in the pipeline.
So Dan, how do you move this? So this is the program, yes? So a quick introduction by me. Dan, I'll we had a strategy review just before summer and so a quick update on our strategy. And then Mario will take you through Brazil.
Then we have the break, and then Marco will take you to North America. And then Martin will give you a finance update. So that's the plan for the day. And then we open for questions after each session, yes. So not after Interruption, but after the strategy, after Brazil, after North America and after the Finance, yes.
So we don't forget the questions, yes. So that was the plan. And I guess the key message we try to live today is that we have a differentiated market position. What we are selling is not the vessel, it's services to the global energy market. So we have a very strong workforce and a very good fleet that sell services globally.
And of course, we are in, let's say, a position between just below the big Tier one players and enjoy, I would say, a market that is now very strong and also with limited number of competitors. So we often see only one or two competitors on bids, and sometimes we do direct negotiations. So we enjoy being in that space. And of course, we also see that some clients are encouraging us to take a step up. So we feel that the doors are more open among our clients globally than ever before.
And of course, the global reach is the next highlight. And of course, that is we cannot underemphasize how important that is to have global reach, to have the organizations globally, local content, local experts. And of course, that is why we claim that Dof, on average, through a cycle, will have higher utilization and higher margins than not being a global player. So we can move the boards to where the market is good and securing higher utilization for the larger subsea assets by trading them globally. And then, of course, we the market is good.
Rates are, you could say, and margins are you can almost call it historic levels, yes. So we will and we have continued to build backlog here. So we are in what we call building backlog mode, where we push hard to secure backlog. And of course, we see that we know with the awards and with the contract being sanctioned, meaning that they are approved, just waiting for signatures, we are above $5,000,000,000 in backlog, yes. So a few sanctioned contracts since we last did the presentation.
Martin will talk more about the strong financial position, but with on the guiding, we expect to be around 1.8 by year end. And then we will also talk a bit more about shareholders' return later on. And of course, it's, I guess, we have communicated that earlier that we expect the dividend to increase going forward compared to what we have paid the last two quarters. So that is what we want you to remember, yes? And this is Dof.
Of course, this line we show every time, so you have to bear with me. But we operate 77% both globally. We as I said, we had 3,700,000,000.0 in backlog by '2. I know with awards after balance statement and also the contracts that has been sanctioned, we have passed $5,000,000,000 So we've had a very strong order intake so far in quarter three. And then with me today, of course, North America, South America and The Atlantic.
And of course, they run the ballpark of our business globally. So leave it for them to talk more about their business. And this is, yes, so what are we? We own, of course, we are a vessel owner and operate a new marine management for the boats, yes. And in addition, of course, we own roughly 77 ROVs and AUVs, which is a tool to do all the subsea work, but also the mooring work we are doing globally.
But then we have spent you will see that on, for instance, on the time line for North America. We established North America in 02/2005. And that was when we bought GEO Group and we bought Century Services. So that's when we started to build the Subsea side. Yes, we have spent twenty years now to build the Subsea project business.
And a lot of investments to get that in place, small acquisitions globally and building gradually up here. And of course, now we are where we want to be. We are harvesting and we, of course, see we see clients really appreciate what we are able to deliver to them here. So there is no investment, no CapEx in that space. And of course, so this is really, let's say, increasing the return on invested money, the workforce we have built through the years, yes.
And of course, this is the last twelve months. We have, of course, guided midpoint 7.55 for the full year. And of course, we expect that to continue to grow into $226,000,000. Martin, I have a slide on showing a bit on that. And of course, we expect that to grow due to the strong backlog.
And of course, most of the backlog has been won in the last couple of years, yes. So it will be so the margins and rates on the in the backlog is higher than it used to be. We will talk a bit more about that as well. And of course, this is a new slide and I of course, I can go on for talking about this board, but I the purpose is to show where we have the high values. And so the highest value in the Dors fleet is on the very big boats here, the big pipe players, seven pipe players, six in Brazil, one trading globally and then the big 400 tonne crane boats here.
That's where the 44% of our values are. Of course, it's a limited number of supply in that market. There is no new builds. And of course, it's very versatile, both. And they keep working in good markets and bad markets, yes.
So it's and of course, it's the key enabler to execute big projects, yes. So and then 21% of the fleet is in the segment we call IRM CSV, which is anything between zero almost on two fifty ton cranes, yes. So and of course, that's where you see newbuilds, but it's also where you see DOF chartering in boats. We have presently five vessels on charter in that space. I guess, I think after we have left today, you will see there is you will get the feeling that we probably need to charter in more boats to execute the work we plan to do.
So we are short, actually short boats in that space. And our own fleet are more or sold out. And if a client or two exercise an option or two, we are probably sold out to at least two twenty seven and longer, yes. So and then the second biggest value we have on the higher tanker and less all with ROVs and quite a few of them in cranes. And also there, of course, we shifted backlog a lot.
This year, we have signed five long term contracts for boats being in the North Sea spot, and we have sold two years. So the export exposure have been reduced. And also now we are down to, I call it, 3.5 boats. We have three plus one all boat in that market, but we also use them, of course, for mooring work. So the backlog now for the anchor handling fleet is very high and where we want it to be.
We we we it's almost that we can't not have more boats on long term contract because we need a few boats to execute the subsea projects. The whole spot fleet owned by Dof will go later this month will go to Congo to execute couple to three months projects. So we're to have four Encarnas done doing that. So that is the fleet. And I think it's important to understand the mix of it.
And as I said, we are the new Belsaris in the space where we are sold out and are short vessels. And then this is done back low, yes. So total ready. So mid and I guess the new on this is, you know we have been waiting for the three RSVs. Mario will talk a bit more about that later, but it actually could be even a RSV number four, so an additional one.
There might be a 15 position on those two Tunda for us. He will talk more about that. And then we have come to agreement with Peter Boss on what we call the PIDF tender, which is a project. It will be the third time we win that, and we have been working on that for more than five years. And we you are talking $400,000,000 roughly in backlog for us, yes.
So that will occupy at least three boats for three years and of course, lot of service attached to it. But I'll leave it for tomorrow to explain more about that. And that's why I know we are close to $4,200,000,000 in on this graph here. But of course, these three RSVs on the PRF is not signed yet. So there is a certain chance that they will never be signed, but we, of course, we believe they will, yes.
And then, of course, shows the backlog going forward. And this year, of course, it's I guess, we are getting close to 90%. And what, let's say, makes me proud or amaze me every week is that the team here, week by week build backlog also short term, yes. So the gaps we had on the few boards we had gaps on are getting smaller and smaller, yes. So which is quite good, yes.
And then, of course, $26,000,000,000 now close to $1,500,000,000 Of course, the guided midpoint on revenue this year is 1,950,000,000.00 yes. So it's a decent portion on 25,000,000,000 revenue. So all in all, very happy with the backlog. And my feeling is that there will be more, yes, there will be more. So I'm optimistic on that we will continue to build that, yeah.
So then the strategy and first me, and then Doug Roijman EVP for the Atlantic Region, yes. So he will introduce himself and but he has done a good job the last few years. So a lot of key contract won and high utilization and very good earnings in that region, yes. But I will leave that to him. So this is what we so we used to the old strategy was sustainable finance.
Of course, it was to expand and grow conventional, meaning you know, IRM, mooring, light construction and light surfing. And then it was growing renewables. And of course, also renewable is floating wind and sometimes cable repair and cable laying also for bottom fixed. So we haven't done any investment. It's just to utilize the Novo, the fleet and the competence we have here.
So that was what we had. I know the new strategy is, I guess, very similar to the old one, but it is financial target between 1.52. And then together with sustainable quarterly dividend. And the Moken will, as I talk more about it. And of course, as long as we have the backlog, we have so we just saw that, you know, we we have perhaps 90% coverage for '25.
We have, I don't know, but let's say 70% coverage for '26. When we have that visibility on future earnings, we will be in the high end of the range here. So we will closer to two than 1.5 as long as we see the backlog is strong and the markets are good here. So that's the whole philosophy around that. And I guess that indicate, and I guess this graph and what we talk about, it shows that there is still room to lift the dividend.
On the commercial side, you know, we continue we want to continue to develop the position, you know, being a global player, but at the same time being local in all the key markets here. So the strength of being global with a global fleet, a big fleet, you know, with global resources, but then very strong offices globally, yeah, with local content, local employees and a very in-depth knowledge on the market here. So that is what we want to do here. And I can't I think this is important most important part of Dof is the global reach and the placing power we have globally. That is kind of unique in this industry.
Then we, of course, we want to be continue to be a global leader in mooring, that is, of course, vessels on long term country, but it also done we actually quite a few project globally where mooring is a big part of it, yes. And that, of course, we need a couple of anchor handlers in Ukraine, and we need three, four big anchor handlers in addition to execute those projects. And that we do that globally from Brazil to APAC to so as we speak, we are as we speak today, we are executing one project in Guyana with Marco here. We will execute one project in Congo, and we are executing one project in for Chevron in APAC as we speak. So it's keeping the and of course, Dan, you don't only make money on the boards, but you make perhaps 20% margin on the total.
So it is a niche where we let's say, are in a new position. I guess we are the only company almost on the globe that can have the full engineering and deliver the full fleet as well. And on IRM, we're to hammer on that. We want to stay the global leader, and we I hope we will be able to continue to deliver new very important long term contracts in that space going forward. So pushing hard for that, very hard for it.
And then in Surf, of course, it's no ambitions at all to compete with Tier one guys. But there is a niche below them where there are smaller projects, 50,000,000, 100,000,000, perhaps $150,000,000 where we, you know, the the the clients. And I I feel, you know, I get the the feeling I get is that some of the awards we have got lately, you know, we wouldn't have won a year or two ago. It's the clients that want us to do these scopes and build us gradually. So that it might be I'm wrong, but that's the feeling I have that some of the global clients, they want us to take this step and execute these projects.
So it's so we will continue to do that. And then on renewable, call it renewable ready, we have all the tools, we have all the know hows, so it's just to wait for when the market comes here. And how do we get there? It's high grinding fleets. So you have seen we have sold a couple of older boats and And we have installed and we will continue to install equipment on some of the larger than Canada.
So we should be to make them more versatile and make them more attractive also doing not only more in project, but also doing IRM projects. And then on the we have talked about on the IRM FSV fleet, of course, we are short, so we need to continue to grow. We need the idea to charter in both, so we have to find situations where we because we will not buy both on know, just to buy both. It has to be very long term contract before we look at that, yes. And then of course, we said derisk the company, backlog, backlog, backlog.
And of course, now we see we are winning backlog into the 2030 and onwards, yes. So we see we are able to take down the risk going forward. And then of course selective divestments, we have done that. We sold PSVs, we have sold small anchor handlers and of course we will continue doing that. And then I guess the one on the bottom here, of course, is the most important here.
That is to when a client on the Service side want you to do a project or do a bid, they don't ask you what boat you are using. They ask for the CVs and the organization you want to use for that project. So that workforce is and will always be the key enabler for us for our success here. So to attract and retain is the most important we are working on every day. So this is a slide you're showing the focus on the team.
So talented, it's showing also the market and operation that has to be tailored for the global market. And of course, you have to be trusted not only on financial, but also on the track record you have at the industry. It takes a very short time to ruin your track record if you So that is and here on the next slide is more about it, yeah. So it's and this is, you know, something that is very important to understand here. So to have a skilled workforce globally, it means the big difference here.
You know, it means utilization, it means delivering on a project, it means, you know, you don't go on a hit. So it is and of course, it's a door opener for winning New York. And to build that global organization, yes, twenty five years ago, we had one office in outside Bergen. So it takes us about twenty five years to build this global organization. And to be able to do contracts in Guyana and in Canada in Brazil, and compare that to when we had one office in Ostovol, of course, didn't see more than 5% all opportunities when we only were a North Sea player.
So with that pays off, high utilization and higher earnings. And then, of course, the offering as well that you can not only offer a boat, but you can go direct to all companies and offer solutions. Of course, that means that the access to to your clients is much higher than when you when you have to go via somebody to get the subsea boat working. And that also I think will give us high utilization and of course it will also give additional earnings because you get the project margins on top here. So you might get 1520% higher earnings than you would have done if you only chartered out the boats.
So these two talented and tailored, that is, I would say, the two most important for our continued success going forward. And of course, Tristan, Martin will talk more about the balance going forward. And so I leave that to him. Then, Dag Roimonde, please. Or shouldn't we questions after Dog Roimonde, yeah? Yeah. Oi, sorry.
Thank you very much, Mons. It's great to be back again. It's great to see all of you here. And it's really good to have the opportunity to talk about and show you how we are delivering on the new strategy in Dof. In the Atlantic Region, we are an integrated service provider.
What we do is that we utilize our vessels and we deliver projects to our customers. The customers we have is the big operators, the likes of Equinor, Shell, Eni, Axon and so forth. And I think that that is also a testimony to the twenty five years of activity, where we have worked ourselves up to earn the trust of these redeemed and established operators. We have in the region around 2,000 employees that is spent across Norway, UK, Denmark as well, also in Africa, in Angola and in Ghana too. And across the region, we utilize 28 vessels.
Most of these vessels are on long term contracts and that is exactly the position where we want to be. If you look at the backlog and the areas we operate in, if we start with the mooring, we typically do two, maybe three mooring projects every year. We have seen some fantastic projects over the last couple of years and truly, truly projects. We don't believe that we would have forgotten even just a couple of years ago. And namely the Balen project for ENI, we have utilized six vessels in total, making sure that their Balen FPSO and also the storage unit were successfully installed.
Later this year, we are installing yet another very important floater for our client in Africa, in Congo on a particularly important LNG project. And this will be to date the biggest construction project we have ever done in the group. This project, of course, entails the complete project management, the engineering, the logistics as well. We have teams in China, in France, all over the globe, making sure the product that we are going to install and the 18 wheels of flexible flow lines and umbilicals and product is safely transported to the area. And later this year, we will deliver in just a little season in the fall, four eighty vessel days on this specific project.
A few of you will probably remember, we talked about IMR and the REM in Spector. First and foremost, in the IMR space, it is all about making sure that clients' assets is operational. This is where you inspect, this is where you repair and maintain the various subsea infrastructure. And of course, over the years and also we would say maybe in this current situation as well, it is extremely important to make sure that the assets are producing the energy that the industry needs. A little over a year ago, we sat down with Equinor and we kind of thought how can we create the next level IMO vessel.
And also you have to bear in mind as well that this vessel we're going to be operating on a three sixty five basis at all times in all types of weather in the North Sea and all the way up to the Barents Sea as well. That means that you will have severe weather storms, you will have ice, you will have extremely challenged conditions. And after a little while, as soon as we kind of defined a bit how we were going to do it, we came up with a solution, which we see on the screen here, which is not a red boat, but still it's also a testimony, because this boat is something that is maybe tailor made for this part of segment, but we still had to do a major modification to get her to the level we needed to deliver on this very important contract. It's maybe a bit hard for you to see, but you see on the screen here a tower. This is a modular handling system.
This tower weights 400 tons and this is situated over the Moontool and this is in effect a high precision equipment. This is owned by DOF. This is something we own. And what that is doing is that it can retrieve and also install the critical subsea production equipment in sea states up to five meter. That means full storm.
This vessel can do that type of work. In order to deliver this vessel, we, of course, had to use had to work with a range of partners, the designer of vessel, Ram, of course, and all the marine competence we have in Dof. This project, when we started to look at it, we had an estimate on between twelve and fifteen weeks. That was too long and we managed to deliver this huge modification in just six weeks. What we also did was that we installed batteries, state of the art batteries to get their emissions further down.
We installed three new ROV systems and these are capable of being launched in 5.5 meter hedges. And of course, this tower and also what you can't see here are skidding system. That means that you can basically skid without being having people moving close to where you have the equipment around the deck. Overall, we had to reinforce the moon pool and the deck with almost 150 tons of steel to deliver this. I'm very pleased to inform you that the vessel is fully operational.
We delivered on the schedule. We delivered on the budget. She is out working for Equinor and we are very, very comfortable that this will be, let's say, Equinor horse for the future when it comes to the IMO type of work. On the organization, a vessel like this demands 150 people. That's a lot of people.
And on the onshore side, amongst those 150 people, there is a core project management and engineering team of 15 people working on this every day. And we bring in the extra competence in various engineering disciplines based on the type of activity that we are going to do. What Equinor does, they send us a lot of work packages every day, many work packages. The engineering and logistics teams, they are planning and preparing the packages and then we organize that in the most efficient way, so we can execute on behalf of Equinor. And also I should say, the offshore team and the competence on the offshore team is very, very critical to make this happen.
There is on this vessel at all times around 70 to 90 people working day in, morning and basically on all around the clock. Going forward, within this IMR segment, we see a lot of activity in the market and we expect to be in position to announce contracts in this area relatively soon. And then over to the Skandi Inventor, you will all recognize this vessel as one of the native ones that came with the purchase from Maersk Supply Service. And the reality were back in March, April, we didn't have any backlog on this vessel. It was empty.
And she had been on a very successful campaign for Total in Africa, but she becoming back that contract went to a natural end. And we sat down and thought, okay, now it's time to dophonize her. We sent her up to Bergen to Augotnes. I know a few of you came on board with us on a vessel management visit earlier in May. The first thing we did was to install our own ROVs and also our serve equipment and make her ready for projects.
And of course, while we were on board, we were in the middle of negotiations with multiple clients on contracts for this vessel. And we are very pleased to announce that we have fully secured utilization for her all through the season into the winter and actually in fact we have utilization on her into 2027. And this was all done on a very, very short timeframe. And actually, I'm very pleased to say that we didn't even have one day on standby. We just went straight to work as soon as we were finished with the ROV and survey mobilization.
And then the question is, what have we done with this vessel? We have utilized her across both renewables and oil and gas. We started off with a cable repair project for one of the biggest operators in the renewable space. They gave us a call and basically the export cable for one of the largest wind farms in Europe had malfunctioned. And that is pretty much like you put out a cord from the socket, it doesn't work, the whole wind farm is down.
So then of course, that is big money every day in, day out, are losing power production. And they asked us, can you guys engineer our solution and how quickly can you repair the export cable for us? The client wanted initially a two vessel solution, but our export team, which is sitting in Bergen and in Aberdeen, they engineered a one vessel solution. And also the fact is that the area where we had to repair this cable was in shallow water with a lot of current and poor visibility and also a lot of traffic too. So going in with two vessels did not seem to be the best solution in our mind.
And within four weeks, we managed to design and also source the equipment needed and do the engineering and prepare for the execution of the campaign. And we managed to repair the cable in less days than what our client expected and they are super, super happy. I went to a meeting with the client two weeks back and they could not be more pleased with the end result of this project. The vessel worked beautifully and also noting is the first project after our major mobilization, we cannot be more happy. After we did the cable repair, we then went on to the oil and gas side and that is on to the Dutch sector, where we had our decommissioning project for our client.
Actually that project turned into two phases, because we run into some issues or the client run into some issues that sometimes you see that on decommissioning that you find stuff you don't knew where there, you maybe need to dig a bit more, you need to maybe remove equipment that is maybe on not on all drawings and that was the exact case on this one. After we did the first phase of that project, we went on to the Polar lead connector replacement. And this is not a big project, but one I'm particularly proud of, because this is on the Polar lead gas pipeline that runs from Osta Hanssen to Nyhavna, so that's four eighty two kilometers and it's actually the deepest pipeline in all of the Norwegian continental shelf. And the client wanted us to replace a connector at almost the deepest section. And this is to my knowledge something that has never been done on this step before.
And we have spent more than one year with some of the best and clever engineers we have to design the tool and fabricate the tool to do this job. As of this moment, we are offshore on this project. We have about one more day to go. The morning report from the project is that everything is going exactly as planned. So we expect to be demobilizing in about a day or so.
And then we will go back to the same very same decommissioning project and do another phase on Hub. In my mind, I think this shows the weight and also the strength of Dof. We have a world class fleet. We have the organization to deliver the full turnkey services on top of that. And to be able to turn something like this, because this is a rather big vessel, it takes a little bit of time to get the Eurofiscopes going.
But to do that, I think that we have proven again that we are able to do that on also on providing a lot of, I would say, decent rates as well on these scopes. And now we would like to show you a little video, not just the text and the slides, but a little video from the mentioned cable repair project. I would like you to take particularly notice to all the equipment on the back deck. This is not and of course, the Skarn Inventor, she has an eighteen fifty square meter back deck, it's a huge deck. And we have filled up the deck with cable repair equipment.
You will see chutes, you will see of course the highways, you will see the tensioners, you will see also the basket for the cable and the whole machine that is needed in order to repair something like this.
Welcome aboard, Scam the Inventor. We are currently in Peterhead mobilizing for a cable repair project. Here on main deck, we have two tensioners and cable wheel drive system. We've recently installed two brand new work class ROVs from Kite's design. We're now in the field.
We've completed recovery of the damaged cable. The team here will cut sections back until they get good cable. We will then prepare the joint.
After five days, that joint is complete, and we overboard that joint, and we pick up the second section of cable. And we now do an omega joint on the vessel. Then we have to overboard this omega, daily this cable and the joint down to depth required by the client.
One of the fact of being offshore is that it's a dynamic environment. Things go wrong, problems arise, but the team on board have been fantastic. Every problem we face, we've managed to overcome so far, and we're sticking to schedule.
I must say, I'm pretty impressed with the time that they managed to mobilize and execute on this one.
Great. Let me open up for the first Q and A session related to the section that we just have presented. We have to use this microphone for the benefit of the webcast. And just a note to those on the webcast as well, you can use the Q and A function in the webcast to submit your questions, and then we will go through those as well. So we can start with one from the webcast actually.
And Monst, that's to you related to the fleet and backlog. Will you consider placing also the remaining anchor handlers on long term contracts and use the spot market to source for projects?
It's I guess, we are built in a way where we have difficulty seeing no to long term contract, yes. So I guess if the opportunity comes on it, it's very well paid, we're probably going to take it here. But because it is not a no brainer, because it is a very important part of the offering we have that we are able to give, let's say, firm pricing for a complete package of boats in '27 or '28. So but you so it depends on, I guess, in the end, it's the money that decides what we do here. But it was interesting to see, of course, we we like, you know, two, one year ago, we we installed a 140 ton crane boat, crane on a boat called Skandihira, a traditional North Sea boat.
And after that, we probably have had 95% utilization and almost three times the earnings as if she was in the spot market. I think she has done one rig move after we did that. And of course, that is something we are looking at for a handful of, not a handful, but a couple of the boats we we we have left in the spot market, you know, to to see if we can install a crane or two on somewhat also to to, of course, to to reduce the risk and also expect a high utilization of Bath and Pail. Yeah. Long answer.
No. It's good.
Yeah.
Anyone in the room? If not, yes, pass the mic down so that we can broadcast as well.
Hi, good afternoon. Kehoe Lange from Kepler Cheuvreux. Two questions, if I may. The first one is is just to understand exactly the positioning that you want in the sales segment being on the Tier two and not competing with the Tier one. On the Tier one side, the competitive landscape is more and more, in a way, reduced with subsea and Saipem that are merging.
So what will make the big difference of DOF versus those guys that will try maybe to maximize their fleet time, etcetera, in terms of having DOF as a Tier two differentiated player compared to those ones? And the second question, you just mentioned that, for example, on your vessel, you have added a number of key equipments, proprietary elements. What's basically the kind of CapEx that is needed for you when you have a vessel that is coming out of a contract to maximize the capability of this vessel and to be able to offer an extra value to the next clients?
Yes. So the first was The Tier two The Tier
two space.
Tier one, of course, you know, Tier one is and of course, there is no clear, let's say, border between them. But of course, the the main for Technip and those of course, the base is big project. It's a multi, you know, billion dollar projects. Yeah. Where you where you need they have 5,000 engineers and they have a lot of, you know, skilled people.
And of course so that that is not what we are after. So when we talk tier two, it is the let's say, it's it's the project as they become bigger and bigger, you feel that appetite they have for for for for that also IRM, but also smaller projects, let's say, million 100,000,000. I think the project that Royman is doing in Congo now, you know, it was a typical Saipem project. Mhmm. And and that was now awarded to us, which is, know, typical where where our CEOs we are heading.
Yeah. So it's a bit bigger than what we have done before. And and but of course, we didn't know our capability. So it's to say the smaller stuff, up to 200,000,000 perhaps, and then then but of course, that is not not clear. But of course, when when of course, you know, if you go if you go and ask, and of course, we know these guys pretty well, you know, if you go and ask some of them, you know, if they have a project of 1 and a half billion, yeah, then you ask them, yeah, you will make $300,000,000 margin on that project, but now you're probably gonna make $450,000,000.
So it goes down, what attention do they have on a project then to win a project that is perhaps a $100,000,000 where you can make 15,000,015 million dollar. So it's so we see we we all feel is that that niche below them, you know, is a wide open space for us now, that they have lost traction because they are getting bigger and bigger and because they have such a busy backlog on big projects.
We see also Monst, we don't of course, they do pipe play, rigid pipe play. That's an area we don't operate in. They do the big APCI. What we do, we can what we have done is to fabricate small spools and jumpers and items like that. But and also we are hearing because we are speaking to the clients on every day and they are telling us, please can you participate and be part of these projects with us because we are not getting the attention that we used to back in the day.
So it's a demand in the market too for players in that segment that is able to take, as Monst is alluding to, contact shops to, let's say, 200,000,000 and install the products in that space.
What was the second part of your question as well?
Investments.
Just needed all
to understand when you have a vessel that is coming off of the contract like the one you mentioned and that you bring
I guess on the Invanto, $78,000,000 dollars, something like that. Yeah. But we're on on the on of course, on the on the server, well, it depends how far you wanna go here. So, of course, if you, you know, if you wanna have a $304,100 ton VLS to play, but of course, it's the the ball game is quite different. Yeah. But yeah. We need a positive question, sir.
It's definitely one. Erik Aspenfosser, SP1 Markets. On the PIDF contract that you mentioned, you may touch upon this later, but there's three vessels now working on that one. Two of those have already secured long term contracts with Petrobras. So my question is how will you meet that vessel demand for this new PIDF contract?
Will you use your own assets? Or will you have to lease in from third party suppliers?
Yes, Mario, of course, we'll talk more about it later. But I guess and I think it's and he will also say more about that because the beauty with this PLF is that it also gives you the opportunity to play a lot the market in Brasilia. So we have a long discussion about what, you know, if this is gonna be a third party bow, so if we're gonna sun on our own more high end boats, not only for but then also to play the, let's say, project market and the spot market in Brazil, which has proven very successful. But I guess it's a luxury problem. Yeah.
So So it is something we are discussing. Likely, it will not be the same boats that executed for three years, yes. So it might be I guess on the old period, yes, we have had seven, eight different boats in the note. But he will talk more about that, but it's a good question, and we haven't decided yet.
All right. We'll do one more question before we move on, and then we'll also do an overall Q and A after, so you can save some questions for that as well. And that is related to the IMR work. You mentioned the AGIM Inspector. With an aging infrastructure, will there be more such contracts, do you think?
What we can say is that the answer to that is yes. It's a very simple answer to that question. Very well. And I can maybe elaborate that it's various types of complexity to the IMR work. What we are doing now with Equinor IMR, I think that is we can describe that as maybe the Premier League of IMR work, because you are doing a lot of the repair and the heavy duty work as well.
So and of course, North Sea is relatively mature, but we see the operators, it's critical for them to keep the assets operating. And that is much more important in many cases than the new developments. Keep what you have working and keep it going. And we've seen throughout the last downturn that some decisions within how they would maintain their assets, that has changed. Because down the road, if you don't do the maintenance, it will be more expensive down the road. So yes.
Very well. Thank you. Mario, please, we will proceed with Brazil.
Good afternoon, you all. I'm Mario, EVP in Brazil. So let's talk a bit about Brazil. So this is important. We just completed twenty five years in Brazil.
We're celebrating this milestone. So I am eleven years in Brazil with Doff, but half a century of presence in Brazil makes a difference principally, you know, for clients and trust what we do and betting what we are going to do in the future. So it's a very important it's a milestone for us. We're very happy with that. This graphic I always use, I think most of you are used with, right?
It just give a clear picture of what we say the offshore support vessels, marine support vessels operating in Brazil. That's the overall number. This is Brazilian built and flagged. The blue line are the red flags, right? So foreign flag vessels that are coming to Brazil, but are put in Brazilian flag on red.
And these are the still the foreign flag vessels. So what you can see easily here, the market continues to demand more vessels, right? Pretty easy to see. You can see that the new builds are flat. In fact, they seems to be reducing, right?
Some of the vessels are getting old. There have been no new builds during the last five, six years. And you can see that foreign flag vessels are coming, having the chance, so they are putting on ramp, right? And also the foreign flag are increasing. So it's just to give a clear picture of how the market is looking at present and the tendency to the future, always becoming better and better in Greece.
So it's a very healthy market for the short, medium and long term in Brazil. The dynamics. So we were talking about surf. Most were just approaching this, right? So the surf market in Brazil, that's big business.
We're talking about mostly very deep water. Petrobras, big surfs, Buzios, Meros, right? Sepia and Atapu. So we are talking about more than a billion dollar surf contracts. So those are the first year contractors.
Those guys are key clients too. So we work for them. A second tier, we work for them in that market over there. Obviously, the fleet of PLSVs that we have, six PLSVs, we have the largest fleet of PLSVs in Brazil. So we work a lot on the long term for Petrobras, but not on the surf contracts, obviously, right?
But installing the flexibles, the umbilicals and part of this sorry, part of this fleet that we have, we also do decommission as part of the long term contracts. But we're always very, you know, very paying attention on what could be a surfeit market that does not demand that capacity. Right? So we're talking about maybe shallow, mid deep water. We're talking about other clients like the Brazilians, Brava, you know, used to be an Alta or, you know, Trident when they go for the mature fields.
So they have a new installation to do so. Capacity to that water, you know, water depth that does not require really you know, big PLSVs or big pipe lay vessels on rigid, that's where we probably have a chance. Now with the fleet of I classes that we have. So that's what we are looking very careful to that. So we are talking about tiebacks or know, surfs that are limited not to compete with the first year.
Will the first year be interested on those? Yes, they will, but not much. If they have too much to do, they probably let it go, right. That's the chance that we want to take on this area. Do we have any so far?
Not yet, but we are looking at it, so very closely, okay? Moorings, with the fleet of HTS that we have, so we are in every mooring project of Petrobras, everyone. Installing the torpedoes, installing the anchor lines and doing the hookups as part of the long term fleet that we have worked for Petrobras. We are on the high end. Right?
So so some of that scope is limited to us and to branch west. And then you have the other guys, you know, doing less scope for that. If you if you guys remember well, Petrobras is, you know, changing the strategy a bit, you know, for the serfs. So they started, you know, with Buzios five, you know, Meru two, Meru three, and then so they were, you know, including into the surfs, you know, the preset moorings and then including into the surfs, the hookup of the moorings. And then they understood that that's not really a good business because those guys are not really too much interested in the marines.
They want to do what is really the facilities. And that's the reason why we were trying to target that scope with the first year contractors. But lately, during the last two years, Petrobras took off those scopes from the surfs. So you don't have preset moorings anymore, part of the surfs. You don't have the hookups.
Maybe the hookup is left. Right? So it came everything back into the Petrobras long term fleet. That's why Petrobras is increasing, you know, the fleet of AE GTSs in Brazil. It's very important for that.
And that's what we believe, right? So we want to fix our AHTSAs high capacity on long term in Brazil. And we are being successful on that. And decommissioning. So this is an area that is increasing and increasing.
We don't have any decommissioning contract as a service contract so far. We start looking at so we did bid around a couple, right? We are bidding one right now to Petrobras. So we are looking into this as a surplus to complete what we have to do if we have availability because we know to do this business, right? So it's going to be a kind of a buffer if we have availability.
But we are in a as Juan says, in a good place to be in Brazil today, so availability is an issue. So we are trying to play as much as we can you know, with the scopes that we have under contract and with the chances that we have for the future. So the commission, yes, can be something that we are going to get and but we are looking to this always with more attention because you guys know very well, I mean, the decommissioning contracts in principle, they're not really interesting contracts. Right? But if you can play that and you can play it well, you can still make money on that.
This is our position. This is basically the Dof fleet. Then we'll have the JV fleet. You have seen this slide before. What really is changing, I mean, this is the Fleet one is our AHDS fleet.
I think we were the first in Brazil seven, eight years ago to start you know, putting ROVs on board of the HDSs. I think that was a big a big question we have inside. Are we going to play that? Because the market was so bad, you know, difficulty to place these vessels were so limited. But putting ROVs on board, you know, would increase their capacity, would increase their chance.
So we start with that. To the extent that you look into this, you know, Rio, Badafogo, Fluminesi, Igua, Suwangara, Parati, Anurca, they all have ROVs. Are under contract today with ROV. And Nipponema and Amazon has had ROVs before, right? Now we're having the luxury to decide if we want the contract with ROV or if we want the contract without ROV.
Depends which one is more attractive and can give better return to us. This vessel here, this can be Iguacu, is one of our largest vessel, right, is now operating with Arovi, as you see. On the next contract that I'm going to tell you, we signed the contract without the Rovi. We won the tender with the Rovi and without the Rovi. And then we sit down for what is better for us.
Right? It's not because we do ROV services that we are going to have an ROV contract because if the if the contract is more interesting, give a better return without ROV, this is the case, we take the ROV off. So we did a lot to put ROVs on the vessel. Now we are having the luxury to decide if we want to keep or we prefer not to include the ROV. These two vessels here, Mercury and Jupiter, they are now transiting to Brazil.
Foreign flying, those two vessels we won the contract last year, have been signed in mid last year to be mobilized. I have to deliver this vessel to Petrobras. Today is the eighth. By contract, I have to deliver this vessel to Petrobras tomorrow, the ninth. So why they have not been delivered yet?
Because there has been a kind of a kind of a changing policy from Antak on the blocking, you know, conditions in Brazil. So lately, one of the main Brazilian contractors, they have six AHTSs practically in layup. So there has been a big movements in order to possibly put those vessels to work. And NTAK, you guys probably know, NTAK is the regulatory agency. So they have kind of adjusted, you know, the rules by allowing partial blocking.
Partial blocking on capacity. What that means? That means that if this vessel, right, two seventy ton bollard pool contracted high spec, the Petrobras, in order to do, you know, torpedoes and mooring systems, can also do, you know, pullbacks. Right? Heading control.
And but that's part of the scope. So this little variation on the rule allow vessels that can only do the heading control to block knee. Right? So we have been during the last three months, you know, after our, you know, friends in Brazil, Max Supply Service have their three AHTS's blocked and they lost one contract. You know, we found ourselves with this problem, but we did work hard during the last couple of months at Antak with Petrobras also.
So this regulation could be reviewed, adjust. And just ten days ago, you know, this blocking, this partial blocking which we consider not regular, right, because it's going to create a mass in the whole market, they were released. So that's the reason that we did not mobilize them to Brazil to be delivered today because the responsibility to give the CAA, which is the authorization to operate as a foreign flag, is with the client. So it's Petrobras responsibility, right, by contract. So they could not obtain the CAA.
So we could not take the vessels to Brazil, be sitting there waiting Petrobras to get a CAA, whether they would get or not or for how long they would get. So we got into a deal where we all work together in order to allow these two vessels to operate, to get the CAA. And that just happened two weeks ago, right. So those vessels had been prepared. You guys know that mobilization for new contracts with Petrobras takes CapEx.
Anything takes CapEx. So these two vessels, we took the chance to do all the CapEx required, you know, upgrades on the vessels. By the time they were dry docked here in Norway, one late last year, the other early this year, so these vessels are ready to go. So to start the contract. So it would be really a big problem for Petrobras, not countering these two vessels, a big problem to us.
But fortunately, it is resolved, right? And they are going to Brazil. So this is increasing our fleet of 23 vessels now to 25 with these two HDSs. Right? This vessel here, Scanning Volvo is operating in Brazil.
It is still called Maersk Involver. Right? Because I think it's the only vessel that is still called Maersk bones or not. Because they had to be imported. Right?
It's still as Maersk by Maersk Brazil. So it's in a contract with Maersk Brazil and Alcatel for Libra. And we had to supply that vessel so they could perform that service contract they had. Obviously we were not able to include Maersk Brazil in the deal, right? But we had to support them to finish their service contract.
So this vessel is operating in Brazil, but we are not considering this vessel in our fleet, because we are not really including that vessel in our fleet operating in Brazil. And we hope perhaps next year, so we finish contract that we may have the chance to keep this vessel in Brazil and be part of our fleet. But we do operate the ROVs. It would make no sense, you know, to have, DAG to send our market, to send ROV people to Brazil and that's our business. So the ROV service this vessel is Gulf Of Brazil, right?
But it's not counted as in our fleet. And this is the Fleet three, which are the subsea vessels, Salvador, Achieve, Carlos and Carlos and and Mr. Explorer are on the PIDF, we're talking about the PIDF. And Commander Shift and Olympia are really our RSVs, right, that operate in Brazil. And this is I'll talk a little bit about this particular contract here and how we did manage to place these vessels on the contract.
Going back here, when we talk about the high backlog, because this year has been really a special year in terms of tenders and contract awards in Brazil. I will honestly say that, yes, I mean, we always have expectations, but what we are managed to have is going beyond our own expectations. So we are very fortunate. We are very lucky with this. So we have 11 long term contracts already awarded, seven AHTSs.
This was out of the bid of late last year, early this year, HTS tender and then an RSV tender. So out of these two tenders, we have already signed 11 long term contracts, which are four year contracts, where we are adding two LE classes on the AHTS contract. So those two LE classes obviously are not this, right? So that fleet goes to 25 and then goes to 27. Those have to be delivered in Brazil by February year.
And here where we are today, I'll get into this more, but you know, were placed second on a new build RSV tender by Petrobras, right? The first was Branch West, we were second. But those eight RSV's and each contract can take maximum four. So Branch West is taking four, we came second, so we are due to take the next four. So that's where we are today negotiating with Petrobras.
Those are twelve years contract, each one, right? And we still need to finalize this negotiation. That's why we're not counting 100%, but the chances are really good that we can close that deal. And this is what I was just talking about. '23 is going to 25 and then it's going to 27 and then it's going to 29 because of the PIDF that you guys were talking about.
So I'll get into this a little bit before because the PIDF vessels, Carlin Joux Home, we now are giving a long term to Petrobras. So we are looking for vessels, right? So in fact, most would be nearly asking you guys, anybody has vessel to offer, we are available to consider, right? Right, most? We are going to get no doubt about it, but so this AUV operation may give us the chance of another contract because we lost that particular lot in the RSV tender.
And now it's showing up as that lot is coming to us, right? And that's very important for us. And obviously, are increasing as this increase of fleet, increase of contracts and potentially new contracts coming. We are increasing our workforce. We are altogether well over 2,000, 2,100 now with certain parts that we have.
This is very important. I think we are first in the group, no doubt about it, in diversification, right? And we continue to further expand in this area. Let me go to the next one. This is the PLSV fleet that you guys know very well, the JV with Technip.
And what really is important here, you guys remember the accident on the Scandi Buzios, June 23, a very critical fire that took the vessel out of operation. We could have lost the vessel, but we didn't. Right? And then one year later that vessel was put back on hard to Petrobras. Right?
And that makes the difference last year in terms of result because from August that vessel was back on hire with Petrobras and that year of the vessel, you know, of time, you know, off, we consider as a suspension to be added to the term of the contract. So we didn't lose any term of contract due to that accident. We had to negotiate that hard with Petrobras. That's not easy, but we did manage to get that. And I think what's really positive last year, just to consider, we did manage to place that is the last PLSV tender.
We did manage to place the Niteroi Victoria and also the Scandia Siou on last year tender. So those rates have increased in the order of 40% to 50% in respect to what we have now. And they yet did not even start the contract. So as of today, Niteroi is supposed to start the new contract, the new three years contract award last year, now in October and Victoria in November. And Skandia you know, the current contract has been extended until mid twenty six.
So only going to start in mid twenty six. And there is something going on, you know, like you see up there that Petrobras is demonstrate interest. This is nothing yet, let's say, conclusive. But it demonstrates an interest to further extend the current contracts to the '26. And start the new contract signed last year only in 2027.
Obviously, there is a big difference of rates between what is new, what is old, like we have today, but Petrobras seems to be available to negotiate. So not to work with those rates, but work with a rate increase that may facilitate. So it's, you know, everything is to gain. I mean, if if we have to start as we have today, we are fine. So we start Lithuania and Victoria and then we start the Scania de Soux.
But if, you know, the result is good that we can start only '27, we go for it. Since the return could be, let's say, attractive to us. Right? This JV is really successful. Not because I'm there as a director of the JV, but I have been in so many JVs with my age, you guys can imagine.
And a JV like this, you know, is the first time that I see, you know, lasting so long. Much more than ten years. Right? And it's due with a big future to go. Right?
So it's a very successful business for Dof in Brazil. We have the largest fleet. We have the largest vessels, Scandesu and Scandes Buzos with six fifty Today, they are on six fifty ton VLS contracts. The next contract are for five fifty tons. Right?
So Petrobras was very clever, not put you know six fifty tons VLS class. And otherwise, we practically would be the only ones who bid. Right? So they have preferred to keep the five fifties, so sub c seven technique itself. And Sapura.
Now Sierra Gems, you know, can compete with us. Let's go to the next one. This is what we do, you know, this slide. Probably you guys say, you're again with the same slide, Mario, but we're just updating this. So just to show that we cover the whole spectrum of subsea operations in Brazil.
We consider our fleet, we don't have the largest fleet in Brazil. We are probably third or fourth. But definitely, we have the high end largest fleet, AGTSs, subsea vessels, PLSVs. And we are recognized even by our competitors, that's what we do, right. Sat diving, this kind of achiever is in Brazil has been doing sat diving for long contract with Petrobras.
But set diving in Brazil, Petrobras kind of is avoiding set dive all the way. So we don't have more set diving chances with Petrobras. We may have with companies like Perrenco or even, you know, that's so these guys are only mature fields. So on the mature fields, we're talking about some compost basins, too, the old fields in Shova, Paragus and everything. So those facilities, you know, even to be decommissioning may require some interventions of sat diving.
In fact, we did, you know, some good campaigns of sat diving for Trident, farming out the vessel from Petrobras. But it's not giving continuity, it's not giving consistency, right? So that's the reason that we decided to place the Scande Chiva now as an MEPSCV or a CV long term with Petrobras. But the plant is still there. We are putting the sat diving plant on a warm layup mode.
So what are you thinking? Maybe to do some type of sat diving in the future? You never know, right? But so far the contract with Petrobras does not include that capacity. And this is so it's a high end fleet.
We have the largest AHTS fleet. And we really expanded a lot on survey as a result of the AOV contract that we have. But we have been providing service to Saipem. We have been providing services to Subsea seven, supporting their serves. And we have also included a full package survey in this contract.
So that's why we have expanded a lot this capability in Brazil to the extent that we are becoming the global data processing center for the group in Brazil. And this is what I was talking about that has even surpassed the expectations that we had. So out of that AHDS tender that was late last year, early this year, that was an auction tender. You guys know what is an auction, right, tender. You have to go into an auction and bet your rates, right?
And we were targeting on the AHTS fleet, Mons, we were targeting six boats. Our five Brazilian we had to put our five Brazilian, Angra, Parati, Urca, Iguazu and Fluminense. Those were a must, right? And then we were targeting another AHDS, which would be an L class. We were first in the tender, you know, on those lots.
Majority of the lots, we were first, but not all. Right? The two, you know, L classes, logger and lifter, you know, they came as a consequence that they need more boats. So out of six targets, we did manage to place seven contracts with two additional early class coming to Brazil. All the vessels that you see here are Brazilian flag.
They are on red, okay? So obviously all the Brazilians, right? Logger we have to red, lifter we have to red, Right? And Petrobras is kind of moving from the three years firm plus two to the four years firm plus one. You guys know that they have that kind of limitation of five years, which is not, you know, a 100%.
They may flexibilize, extend. Right? But now they are betting you have a four years, with one plus zero as an option in the contract. So these vessels, they are going towards the end of the decade when they start the contract, right? With ROV, they are supposed to start in January.
That's why it's all Q1 twenty twenty six, all these vessels, right? And then we have the RSV standard, the same subsequent tender auction. And we had a target there. Our target was to place our three RSVs, are in the next slide, which is Commander, Shiftin and Olympia. And it was a must for us to continue with those three contracts.
And then we were playing the chance to put the Scan Achiever and the Scan Salvador, five. We end up with seven. So why did you put Carla and Jerome? Because we could not pass the opportunity. Right?
So we were not first in the auction. This vessel here, in its lot, it was probably the fifth vessel. So we we are just playing our chances. It's an auction. Right?
But we'll go there and see what happens. And then we found out that Petrobras were needing, you know, nearly five vessels and they end up doing an offer that we could not pass. So this vessel was not supposed to go, but it's going. This vessel has not been offered. So the two lots that, you know, we target for Salvador and Achiva were the high spec lots where you have to put 30 tons in 3,000 meter in one lot or 17 tons in 3,000 meters.
So those are not RSVs, those are light construction vessels, right? So we target those two lots with Achiever and Salvador. But we were offered three opportunities, so we have to bring the Johon, right, into the picture. So we had a chance to put the Achiever in two lots. We have put on one and opened this lot.
On the next one, we brought the show home. And then we put the Salvador in another lot. So we end up with seven contracts. These are already signed. The next ones are sanctioned.
And I'll explain why they have not been signed yet. So I think the question was what is happening that you are losing Johommar Carr, what they are doing now? They are only PDF today with the Studio Explorer. And the new contract that starts next year that we have been sanctioned already, will be signed very soon. Three years for three boats.
These two boats will be delivered on long term. So we have to replace these two boats on the PIDF. That's what Vons is saying that we are considering the internal, you know, scenarios that we have. That's the beauty of the PIDF. I don't like to say beauty of the PIDF.
We always say it's the horror of the PIDF because that's what our competitors need to know that the things goes bad because they're always looking and trying to create the problem for us. Know, it's becoming always more competitive, but we do, you know, we did, you know, win the last tender. But we lost these two vests. We lost. I mean, we have the luxury to put them on long term.
Now we have to replace them on the new PIDF for the next three years. And this we are saying these are the potential prospects including sanction contracts. When we call sanction contracts are those that Petrobras has already confirmed that you are going to be awarded. The Petrobras create the commissions for the tender and then they select the contractors and then they debilitated or they sanctioned the contracts. The next step is to sign the contract, right?
So, those three vessels that I was talking about, I mean, sorry, Commander Shift and Olympia, they have been sanctioned already three months ago or more. So those were the first vessels that we dealt and we closed the deal. We only did not sign those three contracts yet because the start of these contracts are Q4 twenty six, so Petrobras has time, but that was not the main deal. The main deal was a particular lot that today we have the contract, which is the commander. It's missing there one ROV plus one AUV, that's an AUV contract, right?
And that particular lot, it was only one vessel, we lost, you know, the auction. We were second. And another contractor was first. And in the auction, we lost that for $10. You know, maybe it's another for $10.
We could lose for $1, but we lost for 10, that opportunity. However, there has been some compliant issues with that particular first, you know, bidder that we have disputed. So that contract is, I would say, most certainly coming to us very soon. So in that case, this vessel here goes to another lot with the AUV and it opens this lot on this particular lot. So that means that we may have the chance to place an eighth our RSV or 15 boats in addition to the 14.
That is the latest that's sanctioned already. That's the largest ever PIDF contract. It's now nearly six years that we go one after the other. We are missing only to sign the contract, which starts in Q1 twenty twenty six in continuation with the current PIDF 2023, which you guys saw on the previous slide. This has just been signed in August, is an amendment to the current PIDF contract, so we can continue until the end of the year or early next year in order to have in sequence with the new contract.
It's about $50,000,000 amendment to the contract, to the current contract. Coming back here. So, that is we soon we'll have to we will be able to confirm to you this award. But you can see here, you know, the way it's showing, we are missing the vessels. Right?
Those are those were supposed to be Carnegie O' Home. So we are now with several scenarios of our own fleet. The beauty of the PIDF is that Petrobras does not control the vessels. We control the vessels. We can put an AHTS with ROV.
We did put already. Scan Salvador today is on the PIDF because she she left Subsea 7 and she needs to restart by the end of the year. Where do we put her? On the PIDF. We got the extension.
Right? Is she the ideal vessel? No. Because we require, you know, a lower spec. Right?
But shoot performance like hell. Mean, put a big vessel that can perform and performance is everything we need on that kind of contract. That's a lump sum service contract. We need performance. We need to deliver.
So even if the vessel, you know, consumes more fuel because fuel is on our account, she can deliver more performance than a smaller vessel. So basically, you know, the things stay even. And that allow us this flexibility to play with the vessels that we want on the PIDF and we take them off when we want. Because everything we have to deliver to Petrobras is performance and data, right, of inspections. The rest is with us.
So that's why we can put the vessels, we can take vessels off. And how do we play the spot market in Brazil? Because all the vessels are booked. Right? We play the spot markets with the vessels that we put in that project.
So if we put a Salvador class in that project, one of the reasons is that we'll play the spot market for that particular vessel. And I can assure you today, I have signed another contract last week for this consolidator today on the PIDF to do a spot for BW, two months work at a very high rate. So that project allows me to do that. That's why we play, you know, the spot market in Brazil. And, you know, in fact, when you see here, this is spots here, Johom and Salvador, just signed the Salvador.
Johan, most potential, we will also go out to this. Therefore, what do you do in the PIDF? You take all the vessels. Okay. We have to manage this, right?
So we have to be careful because we cannot be late with Petrobras. So it's a question of how you successively and very So it's all about project management really. That's what our competitors probably don't have that track record. You can do a good job on PIDF with Petrobras since you manage, you know, all the tasks, all the activities well. Because Petrobras has a tendency to impose and it's kind of contract they cannot impose.
They need to let us do the job. Right? And they're letting us do the job, we deliver better than what they deliver with the fleet and allow us this flexibility. And this is the new build. We were second after Branch West.
So they would take four and we would take four. Right? Definitely, our rate will be better than Schuest's rate because we came second and our problem is in negotiating, you know, how far can we be out of their rate because Petrobras will stick on us to be close to their rate, obviously. Right? So it's where we are today.
And you know, I think we work so hard for this because this is the future. You saw there in Brazil. Dof has a long history of new builds in Brazil, very long list, track record. And we want to be part of this new phase of new builds in Brazil. You guys know that the first new builds were the PSVs, 12, right?
Schuestbrunn was awarded six, Starnav was awarded the other six, they are already under construction. And then came the OSRV, new build standard, which are the same PSEVs with the oil rack facility on top of it. And Starnav took four, Branch West stayed out surprisingly. And there is a newcomer in Brazil that was first. They're still trying to make that contract happen.
And then came the RSV standard eight, that four could be awarded maximum to each contractor. You know that these standards they are, you know, eighty years lot, ten years lot or twelve years lot. You can be the one, two, three or four, obviously, you know, the best is you go for the maximum and for the maximum term, right? So that's what's happening. That's why we have four potential newbuild contracts for twelve years contract each.
If you There are so many slides about this, but just to emphasize because really, it's an achievement for us. So those are the 15 vessels. Up to here, already signed, the three yet to be signed because of that famous AUV lot, which we will open this slot. So in Petrobras, in the tenders, you guys know very well, you are not required to bid one vessel on only one lot. You can bid the same vessel on two lots.
If you win both, Petrobras decide which one they want to put that vessel. That opens that slot for you. You are still first. So they come and give us the chance, give you the chance to replace that vessel, but not the obligation. So if you have the chance, okay, you have two contracts.
If you don't, you just pass, they go to the next one. Right? That's what has allowed us to put two L Classes because of that. That's why we were targeting six, we end up with seven because we were offered another boat. So we took it.
And this happens here with the Carla and the Show Home. So we have a very good chance to put a 15 vessel here. That would be seven HTS plus eight RSVs. So those are the contracts signed already for the three RSVs that are sanctioned. As of today, the 11 is given a backlog of that magnitude.
If you add the PIDF, it's another 400. If you add the 15 bolt, that will be close to 2,000,000,000 or around US2 billion dollars backlog out of this, right? And not yet considering the new builds. So we think we are going to close new builds that will jump that backlog, you know, quite substantially this year. That's why this year in Brazil, we think we are delivering not only what we were planning, but we are delivering in excess that we were planning.
So it's a good place to be. So the problem that we are having looking for vessels, that's the luxury problem that Moses is saying. So it's a good place to be and we need to deliver. In terms of the finance, there is obviously a big CapEx associated with this, right, is what impacts our EBITA. But the issue is how can we quickly recover this CapEx that we need to put on all this fleet to deliver the fleet.
This is about the aggregate of the group. DAF Brazil is a big contributor to that EBITDA for the group. And what's really important is how the rates are showing up. Only the AAGTS fleet rate have an average increase of 38% on these new contracts. The RSCVs is about the same, you know, the same trend.
The PLSVs you guys just saw, you know, you are even above that. So it's it's looking really good, you know, the expectation for the market in terms of midterm, long term. This is the fleet, principally when we talk of all the vessels, right? They are all fully booked. Probably they go until 02/1930.
And the Scandi Amazonas, today she's finishing the current contract mid-twenty seven. But she also has another two years option like the Ipanema and the Rio, right? So those boats, Amazonas Ipanema, Rio and Botafogo, they were not included in the standard because they are under contract, right? So they probably will be our target for the next phase of tenders Petrobras will come probably next year. Angra Fluminesse Gua Suparatia, Nourca, we just placed them under contract right now.
Lieutenant Lager, the two early classes that will come into the contract Salvator Achieva, Johom and Carla, all through 2029 Olipeshinft, the commander, all through 2029. And the Evolver, which is the vessel that is not in our fleet, she probably will end this contract with Maersco Brasil and Alcatel around here in Q1 sometime. And then she has options. We may have opportunity in Brazil. Obviously, we want to keep that vessel in Brazil as much as we can, but it's a global vessel.
She goes where, you know, is more attractive. This three year explorer is the only one left on the PIDF. That's why we need the vessel two and vessel three to complete the three vessels fleet for the new PIDF end of Q1 next year. And then as we see here, vessel four, which is the additional 15 vessels that we can put on commander's lot. We are really looking for three vessels. Right, mons? Yeah. We are really looking for three.
Yes, sir.
Yes, sir. Right? Yeah. But we'll make it happen. Yeah.
And Mercury and Jupiter, you know, that is a blessing. You know, even in the church I was going to have this vessel released. Right? So we did manage, you know, to get them back. So the ship the vessel owner, our investor.
Right? Is very happy now. Because we manage those vessels. Those two vessels are not ours, right? But they're they're fixed.
So we are not owned and we manage them. And this is the idea of, you know, And I'm trying to check my time. This you you guys know this, but the PIDF as they go, you know, Petrobras is always increase, you know, the level of inspections. You see all those different inspections. Obviously, base case is PIDF one on the bottom, PIDF two, the riser PIDF three, the very shallow to the facility where we most need shallow diving there to complete the scope.
So we do have shallow diving today and we are going to have a shallow diving on this next contract. But you can see the level and the quality of inspections that are in our pricing list. Is always increasing, is always becoming more, you know, high spec. So that's the track record that allows us to beat our competitors. They all know how to do this job.
Our main competitors in Brazil, they know how to do this job, they have vessels. But this is a service contract. You need to be able to perform and deliver and you need to be able to learn and use the learning and move forward. Right? That's the base of it, you know, and be able to manage well and make money out of that.
But you can see PIDF one, two, three, only ROV. The PIDF we have now already included the diver and all this inspection. Where you see blank inspections here, they were not there. They have been increased, right? They have been to the extent that look at the new contract that we signed, okay?
So we have all the old inspection plus the new ones and every new inspection there is a new rate. And that's where we try to really to make money. Right? On the new rates that, you know, is difficult for our competitors to understand how long they will take to make in one of these inspections. We are, with the track record, in a better position to figure that out.
That's where we are competitive. And this inspection here, you see you have one inspection class here that is only diving, right? Know, IDBS, bell mouse inspection. Right? In Portuguese.
Which is the bell mouse on the FPSOs where the risers get in. So they need to inspect that bell mouse, you know, facility, that bell mouse equipment to be sure that it is standing, it is not corroded. Sometimes we even do some repairs and only diving can do that. Right. These are in the new contracts.
And this is a summary, what is the PIDF? We cover three basins, You know, Campos Basin, Santos Basin, and the Spirito Santos Basin. So, if we transit a lot, we don't make money. Right? We need to reduce the transit to minimum.
We don't make money transiting, nor going to port. We make money doing inspections. Right? So that's why this is all a contract managing, you know, excellence capacity, really. You need to be very talented.
The project team that we have created, I think I have one of the best project teams for this in the market, is a 400,000,000 to deliver on lump sum basis unit rates and make money. If you do something wrong, you lose money, but we are not allowed to do anything wrong with this. So this cover all the three areas. It's all very deepwater, right? You can see how this thing has progressed, PIDF one, the number of inspections, the kilometers, the vessel days, the technical reports, the contract values continue increasing.
I was here in 2023 doing exactly this when we have just signed this, Just signed this contract. That could be up to $300,000,000 We are in February already, right? So we'll get close to 300 with this additional amendment. And this is the new one. So far, we have practically in terms of inspections, you can see subsea inspection there.
We are over 7,000 inspections. And this is not only inspect. You need to inspect, you need to clean, you need to show that that particular equipment pipeline whatever, it sounds. Right? That's that's Petrobras obligation towards ANEP to demonstrate, you know, the assurance of their facilities and continue producing.
Right? All this job is done also with the fleet, the long term fleet. The difference is that Petrobras cannot get the same performance on the long term fleet compared to the performance that we deliver here on the service contract. Why? Because there they manage our vessels.
We do what they tell us to do. Here, we do what we decide to do. Right? So we try to be much more cost effective, cost efficient here. And this is the new contract.
$380,000,000 plus ongoing for the next two years. You guys have this. Right? This is business plan of Petrobras. I'm not going to spend much time on this.
You know, what we have new here? You know, the new tier one player, OC's, showing up in Brazil in addition to Cypus and C7 and Techneep FMC. They have already been awarded Buzios 10, right here, right. Didn't start this yet, has two more years to go. And here they have not been awarded yet, but they have the lowest price.
And that's a Tapu two. And then Sepia two is no underbid. So that's why we look very closely to this first years because they are really our clients. And we work for them with our subsidiaries. They need us, right?
This is the decommissioning always. You guys know this. This is the decommissioning plan current from Petrobras. It's a massive scope of work. Obviously, you guys know decommissioning has a tendency to go much slower than planet.
Right? So this always moves to the right. But it is a must. This will never stop. This will always increase and increase.
That's why we look into this as a buffer to complete the scopes that we have. Principally, if we have availability of vessels. Right? This is just what the oil companies look, just a picture of what they are doing. Bacalhao Equinor, so it's not only Petrobras, right?
Raya, we take nor all the surface. You see the surface contractors here, right? And we are giving a look into this Maromba with Bedagu. I just told you guys, signed a contract with Bedagu last week in order to use the Salvador for two months. That's for Gofino.
But we are looking into that, if we could do something here. This is Shell that after so many years Shell looks like is really, you know, going forward. It will go forward with the gut tomato. And you know, this I think FPSO has already been awarded to Moldeck and deserves to Technip, Right? And Trident is something, this will be looking very close to it.
The surf for Trident. This is shallow water. We can do this with eyeglasses. I cannot say much because, you know, this will be competitive. So hopefully, you know, we'll be able to submit a good price if we have the best available and otherwise we pass.
And decommissioning, we bid this. We think, you know, we had the best technical proposal for this with an eyeglass. We devoured that in Brazil. And we were not first, we were second. Right?
Very close. So if this thing does not go forward with the current contractor that should be awarded, but who knows? We'll be sitting and waiting. If they are awarded, if they don't, we go back, right? These are our people.
I need think to tell you guys. I mean, our agent and our team in Brazil, you know, they are first class. You know, to mobilize all these vessels, I mean, how you're going to crew all these vessels? They are Brazilian flank, all Brazilian crew. Marine Brazilian crew, you know, ROV crew, survey crew, one after the other, 14.
Right? So we need a lot of crew. In order to have all this in the market, we have been expanding a lot, all our training programs, a lot. So we are producing these people, most of them in house. To the extent that besides survey and besides ROVs, we are trying to see how can we train people also on the marine crew, right?
Principally, when talking about electricians, right? So we can train them, not necessarily we depend on the Navy. Right? And basically when we say the tuition programs, you know, those are the entities that we support. Most of them, there are three of these entities.
They are supported by Norway. Like Karamba, you know, Bola Profrrenti. You know, this lady here. This young lady here. You know, she's working on the engine room.
You know, she's one of those, you know, poor kids that have been part of this associations that we support. And she's now a very active, you know, officer in board of our vessels. So it's just an example that we do contribute with the social programs. We invest a lot in trainings, in innovation. And that gives you a picture of what we do, right?
Inclusion, obviously, and as I told you before in terms of diversity, women, you know, we are leading the group and we expect to continue. Outlook. This is one of the less because we want this to be what you have in mind, right? So Outlook DAF Brazil, all time record in 02/2005. It will be difficult to beat the record of this year.
Majority the local fleet booked to the end of decade. Workforce growing, training programs expanding, continuous high tender activity Petrobras today with IOC, local ferried first year contractors. And the oil and gas market is still continues very healthy and promising for the mid long term future. And this is the long term future, right? That's why we are going for new builds.
We're talking about here, know, Equatorial margin, just coming, you know, South Of Guyana, where Markus is going to talk about it. That's the high expectation for the next ten, fifteen, twenty years. Current tenders, Petrobras has this decommissioned EPRD. We are looking into this to participate. There is another sales bid.
This is target to replace the Wayfarer of ACOFs, but, you know, it's a bid. Let's see. This is a new build. We have been working for one year on this. This is the Ford's new build, you know, of Petrobras.
Right? The SCVs, OSRVs, RSVs and now AHTS, right? Initially, that spec was practically prohibitive because everybody has classified those age, the asset new builds of Petrobras. They're nice to have, they want it. Everybody called them monsters.
Alright? So we have to build two monsters. We are not going to build two monsters. The five yards cannot build two monsters. And why are going to build them?
And how can we be competitive? One. Second, how can we build in Brazil? Third, how you can put a price that then Petrobras is going to contract? That thing over there initially would cost above $300,000,000 each.
So during the last six months, not only us, but the whole community of potential contractors have been working on for Petrobras to change and inspect the requirement. And they just did it, just a month ago. Now they are really, you know, attractive, let's put it that way. So they are scandal Amazonas like plus. Right?
So now we are interested to look at this new build. This bid is going is due the end of this month. It's going to be postponed to November, perhaps November, so we have time to look into it. This is what I was talking about Trident and Petrobras Sepe too, what's in the market today, obviously, the first years are asking us bit to bit. So we are supporting them, right? And a lot of over tenders that we do not participate. We are not in this business. We are not in that business, only shallow diving, right? We are not in the work to work that's on very short contracts yet, but we don't have more time in our vessels, more people to dedicate to this. I mean, we're not interested. That's about it.
Great. Thank you, Mario. Then we'll do a Q and A here as well before we have a short break. Both of them are in the audience. Assuming that the RSV tender is successful, who will build them?
Ours? Yes. We have consulted all the Fabriards in Brazil. We have received four proposals. And out of these four proposals, we did assess each one very carefully on the economics, on the capability, on the track record, on the current status of those yards, shipyards in Brazil, which is complicated, all right, in order to decide where to go with.
So we have decided to go for the tender with NAVSHIP in Santa Catarina, Naved Ganz. So Naviship is the Schuest Group. And so we say, okay, so Schuest is going to build four for them and four for you. If we close the contract, that's what is the intention. Because it really gives us confidence.
If probably SCHWEST is just a particular comment, if they had probably won the six OSRVs in addition to the six PSEVs, they probably would be in a situation with yard capacity for the RSVs, right? But having not been awarded six OSRVs, obviously it created a good spot, a good slot there, not only for the Air four, but also for our four, right?
Thank you. On the RSV and potentially also the anchor handling newbuilds, could you say a little bit about the economics there? I guess you won't disclose details, but
We're still negotiating.
But if we start off with what you have on the Seadragon vessels that are currently a charterback newbuild, where you have already disclosed EBITDA payback of something like seven to seven point five years, do you consider that as attractive economics? Or do you have
different That's put in this way. I mean, because it's difficult compare things with Brazil and then with Canada and the new build for Canada. But we need to work with what we have in our hands available. BNEDS, for example, where is this money coming from? FMM, right?
Funda Money in Mercanti. We have already access Funda Money in Mercanti prior to bid in order to have the priority to access the money, right? From Funda Money in Mercanti. And then you go to the agent that's really going to do the finance out of the funds from the FMM. And that, in principle, is BNDS, right?
Different from what we have in the past that BNDS would not limit the period that they would finance when we could consider twenty years. Today, BNDS is not financing more than the firm period of the contract. So we are limited to pay BNDS, which is about 70% to 80% of the whole investment in twelve years. And then we have an equity, obviously, that's up to us, How do we pay the equity? But most of the finance, we have to pay in twelve years.
So our economics consider that, I can assure you, right? So you're telling me, are you paying the boat in twelve years? No, you're not paying the boat in twelve years. But I cannot tell you how many years we are paying the boat. But we are paying BNEDS in twelve years.
Great. Thank you. Then there's a question on the L class. Is there a chance that you will run into the same issue as you did with Mercury and Jupiter? Perhaps you can explain the difference between international flag and REB and what's required for the REB tonnage.
Yes. I mean, we have international vessels in Brazil. Today, the Geo Home is on Forti Flag, right? The Scam de Carla is on Forti Flag. So every year, they are on our contract, they are not with Petrobras long term, we take care of their circularization.
We take care every year that you have to renew their authorization to operate. It's the CAA of Antak, every year, right? You have to circularize. And if there are Brazilian flag vessels that are similar or can block them, they have the precedence. We are in that business because we have Brazilian flag vessels, we block a lot, right?
But not only. We have the foreign flag vessels and we need to avoid them to be blocked, right? So there are certain strategies in order to do that, but they have a certain exposure. You know, Stereo Explorer is just a common RSVs. You guys know the Stereo Explorer.
Stereo Explorer has been working in Brazil now for over three years with foreign flag. Every year that we circularize this three explorer, the three explorers are blocked by any RSVP Brazilian flag that is available. So we need to overcome that blocking. Right? But this is something that, you know, let's put it this way.
We have a leverage, you know, potential because we have foreign flags, we have Brazilian flags. Right? And we are blocking us, our competitors. The same way they block us, we block them. So a certain moment, you know, even if they are so much so attractive to them that, you know, they need to go blocking, but otherwise we find a way to resolve that out of attack.
So in order to have that leverage, you need to have the cards. What are the cards? The Brazilian flag. We have the tonnage. Why are we repping lifter, logger, Jiohom and Carla?
Four vessels, you know, are being rabbed because those are Brazilian flag tender. We have still, we still had enough tonnage available so we could rab them. Right? So once they are wrapped, they run no danger at all, right? So they are Brazilian flag on wrap, they operate.
The Jupiter on Mercury, when we did the tender last year, right, obviously, we know the market very well. We know all the vessels that could disturb us, all the vessels that could be available, all the vessels that could have a chance to block them based on the regulatory rules at that time, right? And our decision was, okay, these vessels cannot be blocked, not with this spec of contract, not with this bollock pool, not with this scope of the contract. That's why we decided to go with foreign flag. Also because the vessels are not ours, so rabid vessels that are not ours, you guys understand.
It's not the same thing. Right? So but, you know, the chances that they could be blocked based on the regulatory that was in place and had been in place for years, they would not be blocked. And then there was this change that I was talking to you about it early June that allowed partial blocking capacity or scope in the contract. That's that's a big mess.
So we spend time in Brasilia with Antak and all the directors of Antak and trying to tell them what hell of a mess they have created. Right? With an RSV, I can block a BLSV. With an AGTS, with ROV, I block a subsea vessel. And the opposite.
So it's going to be a bloody mess. Right? So with this partial blocking. Partial blocking has always been there, time wise. So you don't need to block the whole year.
If you have six months, you block only those six months. And the blocking business became the the blocking, you know, procedures became so hot, but so hot in 02/1516 because Petrobras had so many contracts, foreign flags, and they had to reduce their they had to reduce their fleet. Right? And strongly reduce their fleet. They started with the foreign flag.
So everybody became blocking experts. And how much, you know, tonnage, how much you can play with, right, has better leverage you have to deal with the market and assure that your vessels can still operate with foreign flag. Alright? So I I don't know if I responded, so but as you want to be sure that you have no blocking exposure in Brazil? Put a foreign put a Brazilian flag on the vessel or make a Brazilian butte.
When you put a when you put a red flag with a Brazilian flag, you know that becomes a Brazilian vessel. It's a full, a 100% Brazilian crew. With the foreign flag, you still need the crew to keep the flag. Right? That that was one of the arguments I can tell you guys that we played against, you know, with the Antak level.
Because sometimes these people they I'm sorry. They they go on a so so different level. Right? That they say, well, you know, a foreign flag, aged, yes, a crew of 23, 25, 20, all foreigners. Right?
A big vessel, a bigger vessel is kind of a sue foreign flag. You know? Foreigners? Not really. So we hindered fully listen, you know.
Out of the crew, foreign crew, we obviously keep that to a minimum. That's obviously it's a cost implication thing. But you pick an AHTS, a scandjupter, you know, 23 crew crew. It's just an AHTS without ROV. Captain, chief, electrician.
That's it, foreign. All the rest, Brazilians. So dear Antak, dear directors, what you are looking for Brazilian content here? Mean, you know, we basically if you don't allow me this vessel to work, you know, out of each vessel, 23, less three, twenty, 20 Brazilian crew are losing their job. Multiply by two, right?
Two shifts, 40. Okay, just so no. We need this vessel. We need this crew. We need these Brazilians to work even on a funny flight.
Thank you.
Anything else? No?
No, that's it for now. So we do a twelve minute break. We'll be back at thirteen forty five. Grab some coffee, drink.
So hello, everybody. I'm Markus Tocchi. I'm the EVP for North America, one of the four regions of DofSubsea or the fourth region of Dofsubsea because we were established in 2013. So North America at the glance. So we have we've been a growing, you know, a growing region from now twenty years that we are established.
We operate in in The US, Canada, Guyana. We have a project in Suriname, Trinidad and occasionally Mexico. After the acquisition Maersk, we expand our fleet now to 14 boats. We were the first region operating a Jones Act or chartering third party boats, especially to comply with the Jones Act requirement. And we have a new incoming vessels in Canada in 2027, as you all know about it.
So in terms of backlog, our long term backlog is most in Canada with the Maersk vessels and the Scandi Viland. We still have a good backlog in Guyana, but now after we were awarded in twenty twenty three twenty twenty two a three year contract by Exxon. The three years now is coming to an aspiration and the contract now they're going on year by year extension. So we're calling that a year by year backlog in Guyana. While in The U.
S, Trinidad And Mexico, we really play the project market. We're not concerned of a long term backlog. Of course, we would like to have a long term backlog, but The U. S. Market has not been a typical long term contract for IMR boats.
And so we have to play, you know, how the market, you know, rules, the rules of the market. We've been growing our footprint. Pretty much we work for every single client that is currently in the Gulf Of Mexico. So we maintain a frame agreement or MSA, you know, master service agreement. So we can be called with seven, you know, three days notice.
And we've been able to keep the boat, you know, you know, busy. Of course, the Guyana, you know, we we have two FSV, three with the with the Scandinomad, But we're also playing some activity in the mooring, SURF decommissioning, and also we see a market into the light well intervention coming. There was recently a publication about where the market is evolving. It's evolving in small tiebacks and is evolving in light well intervention. Why?
Because, for example, in the Gulf Of Mexico, you know, there are 50 existing deepwater facilities. Like, you know, we talked about SURFA before, the main the tier one contractors are too busy, you know, they have a backlog and now goes into 2029 and they don't have a capability. And the operators are looking at how we can keep the production flowing. You know, they needed to replace you know, they needed to replace productions. Of course, now a capital project is 2 to $7,000,000,000, but they needed to keep the oil flowing.
So there is a lot of effort in figuring out how to bring new wells into the existing facility, even, you know, half a mile wells. Right? That they can give him the 10,000 to 15,000 barrels a day extras. So from an organization standpoint, we've been growing both in engineering and ROV services and delivering project to our client. Again, I've been there from '20 from 02/2009, coming from another larger company.
And even if they know us, you know, they know the DoF has beautiful vessels, very capable vessels, there was this lack of of experience into the project, you know. And it took a while to convince the client that we can deliver integrated project. So DofSubsea in North America was established in 2005 with the acquisition of Century Subsea. Until 2010, we play more pretty much a survey role. And in 2010, we were awarded the first two contracts, one in Canada for ConocoPhillips and one in India for an emergency worker with ride well control at that time.
And from there, we take off, you know, we become the region that it was occasionally winning project using the vessel from the North Sea when the market in the North Sea got tight. In 2013, we physically established the region and we started to hire a long term Jones we started to hire long term Jones Act vessels that really opened market for us to the local IMR and activity. We had a long term contract with Chevron and a long term contract with Freeport McMoran that it took us up to 2016, in which we not just deliver, you know, vessel days, but also fabricate jumpers and do a lot of other activity for them, you know, really supporting their field development. In 2017, we were awarded the ten year contract for the ScandiVille. In 2016, we were awarded the contract and we delivered the boat in July 2017, which was our first long term contract, first FSV long term contract on ten years.
And in twenty twenty two, twenty twenty three, we were awarded a three year contract for Exxon in Guyana to support their subsea infrastructure in the Seabrook block. In the meantime, we've been working in Mexico, we've been working in Trinidad, in Trinidad from 2019 and also in Guyana from 2019. With the acquisition of Maersk in 2024, we increased the scale of the vessel capacity, especially in Canada where, again, you know, there was already existing contract. But we also talked in February 2025 the advantage of, you know, having the scan implementer and the scan in Nomadin in Guyana. So and we will show a little more about what we did with the scan implementer in the Gulf Of Mexico after the termination of the contract in Mexico.
In March 2025, we delivered two boats in in Canada, the Mover and the Mariner, bringing the total vessel to 13. We're still operating third party vessels. We're still operating the Chloe Candy Jones Art boat. And the next year, we will have the K, the Kandy, another Jones Art boat, 150 ton, that we already signed two years ago, and we have that for two years. So so in terms of fleet development and profitability, you know, but you can see how, you know, the fleet in North America is increased here after here, you know, clearly with the you know, starting with Jonesat boat and the ten year contract in 2016 for Cenobus.
And then we had the Scandi constructor, the Avila Phoenix, going for Exxon in Guyana. That was our first honestly, it was our second project for Exxon, but it was the first FSV project that we have on long term contract with them. And like I mentioned, the contract, they added the vessels in Canada with the scan implementer and the other, both already existing in the country in Canada. So in terms of financial development, the revenue grew from 150,000,000 to roughly $280,000,000 So now we are pretty much equivalent to the other regions. Of course, we're talking a DoF subsea.
We're not talking the Dof the entire group, right? We're talking what just from the DofSubsea side we're doing as a fourth region. So that in 2013, It took us pretty much ten years to come to the same levels of the other regions. Like I mentioned, we work for pretty much any every single operator that is into into desire. From a regional market and dynamics, again, I listed all the country where where, you know, we we work.
In and honestly, it's important because when you say North America, people think US. But really, US for us is probably 30% of the revenue generating, you know. The revenue comes from Guyana, Canada, Trinidad, occasionally from Mexico and Suriname. So, we're pretty diversified. So we play in in all the market.
Clearly, that quarter is in Houston. Canada is a big office, pretty much independent even if it reports to Houston. Talking about America, again, we always play into the Jones Act market from 2013 because, again, there is a need, there is a demand for compliance with what is the Jones Act. And and we've been very successful again from 2013 to keep vessels on long term charter from American suppliers and the delivery project with them. Like I mentioned, there is a lot of infrastructure already existing.
And the next phase that we see, there are still always two or three capital projects every year, right? And now BP restarted to develop a project in the Gulf Of Mexico, Shell, and then you have the small independent like a log. But there is a bigger focus in keeping the production growing or or maintaining the existing production, 1,600,000 bill million barrels per day, you know, the Gulf Of Mexico produce. And so there is, you know, interest from the operators to develop a subsidy back. In Canada, you know, the story is waiting for Equinor Bay De Norde project, that it was restarted, stopped, restarted, stopped.
But I can say Dof is probably is the largest vessel operator in Canada at the moment, thanks to the acquisition of the Maersk fleet. Work for every single operator there. We have two one or two or four boats with them, Cenovus, Exxon and Suncor. In Guyana, fantastic story in Guyana, right? Exxon now delivered the fourth field development with a targeting of 900,000 barrels a day, and they're expecting to they have three projects in development, another four projects planning.
When we talk to Exxon, their target is they're already planning a 2032 activity. So we have another seven years of activity even if our contracts now are on year to year renew. We just installed 100 well, and they're targeting 300 wells by 02/1930. The the problem of Guyana is one operator. So you have a single client like it was a Petrobras, you know, a few years ago.
And personally, I do not see new operators coming into the specific market. The good thing is that both Trinidad and Suriname are really growing. One, because need need gas. You know, the LNG terminal in in Trinidad is less than six roughly 60% capacity. So there is a big demand for replacing the gas.
In Trinidad, you see Shell MBP and EOG, the the existing supplier there, you know, the existing operators there, developing a small both the capital project and also tiebacks, subsea tiebacks. We have a boat just transiting right now to Trinidad to support Shell. And then, of course, you know, the New Frontier, how Total Energy call Suriname, the New Frontier, it will be the next bigger project. For them, we deliver in twenty twenty eight roughly 30 wells. We already work for them.
Clearly, the job is with Saipem, but there is opportunity for taking the lesson learned from Guyana and growing into Suriname. Mexico Mexican has been in trouble for the last two or three years. You know, we were, you know, we have a boat in Mexico until at the end of this year working for two contractors at the end of the day for Pemex. Pemex decided that they don't want to pay anymore, you know, they want a six months payment terms. So at the end of the day, we pull out the boat.
But new government, you know, it came into into power, and they physically, you know, they they are selectively open for business. So they're changing a lot of how they want to bring a vessel in, they give more power to the Navy. So as I'm let's say, it's more official, right, and is more probably is more clear. And they really want to bring international business into Mexico. That is the message that we receive.
Woodside is the first deepwater project, also scheduled for 2028. We just awarded a small project for them that it will take a vessel into Mexico before the end of the year, we hope, or potentially in first part of the year. Again, very small, you know, probably at least we establish ourselves with WUSAID. And that there is still any and other independent in independent that they have a lot of production for what they consider any 80,000 barrels a day just from one field. They, for sure, demand requiring services.
We're not established in Mexico or in Suriname or in Trinidad that we just go on a project by project basis. But pretty much, we are not gonna say daily, but almost daily in talk with the the operators into this region. We have also to touch renewable, you know, that even if clearly, you know, the message is that the current administration wanna shut down as much as they can the development of, you know, floating, you know, wind, offshore wind, there is still a lot of work that needed to be done. And and considering the Jones the limitation of the Jones Act tonnage available, you know, because, again, nobody built built the boats from 2013, there is a lot of potential for a service contract in in the East Coast. And then I will say that, again, even if the US administration is against the wind, the local market, the local governor, New York, California, stuff like that, they're still pushing their own agenda as much as they can, which is good.
One of things that I always like to say is that our ambition is to be a solution provider to the operator, both for marine and subsea services. We like it when the client calls us and they says, hey, we have a problem and we need help to resolve whatever is their requirement offshore. So Canada has become an important area for Doff, we mentioned. We have now a large a very large fleet in in East Canada, like I said, operating for all the current operators. We also already worked for Equinor when they were doing drilling.
Just the two new two m classes are being mobilizing on a three year contract in in in Canada, one in May and one in April. And we just extended the the contract for the Scandicator, which has just come out of dry dock. We'll show you a picture of it. We have the new delivery booked in 2027. We'll start a fifteen year contract for the West White Rose Field.
One other thing that we have been successful in Canada is engineering and planning for St. August. So pretty much two years ago, we were able to replace a TechnipFMC on the engineering and management contract for all the RMIRA activities. Now in Canada we have roughly 20 engineers and 75% of them they just work for Synovus. They work for DoF, but they pretty much take care of all the activity the Cenobus has to run run offshore.
In Guyana, you know, like I mentioned, we've been in Guyana now from 2019, first supporting Saipem and then supporting Exxon. We had three permanent boats now, and occasionally, we have the fourth boat, the Skansen. Here is supporting SBM into the installation of the third FPSO and that occasionally come and goes. And the other advantage of Guyana is that, you know, having a contract in Guyana, we have the possibility to do call out of in Trinidad or vice versa, you know, having a if we have a vessel in Trinidad, we have the possibility to support Guyana on a call out project. In Guyana, again, starting from November 2022, right now, we have achieved roughly 5,300,000 man hours with zero LTI.
Like I said, we have three vessels. So far, we already installed 158 subsea hardware, that is trees, jumpers, flying leads. So everything that Axon need to install after the post forced oil, is with Saipem. So Saipem roughly installed 50% of the subsea hardware to deliver forced oil. Doff is installing everything else with the two two fifty ton crane boats that we have there.
We are also being successfully called for some special project, like a flushing, a jumper removal, umbilical replacement, the gas to shore project that today, they are worth roughly $3,000,000 in extra services above what we are doing regularly for for Exxon on the call out. We also now performing all the subsea pipeline or line inspection and photometry for Exxon on the three field, which is an activity that has to be repeated after every two years due to some movement of the pipeline. So when we started the contract, Exxon has two contract strategy: EPCI, SIEM, and time charter. Right? I take a boat and I tell you what to do.
It's not what's happening with us because when I arrived in Trinidad, they realized that they have a lack of engineering capacity and management capacity. And and pretty much now they are assigning us project task, you know, like they do for Equinor in here in Norway, right? So they give us a specific task and we deliver them a full engineering solution. We provide intervention and dock tooling and also specialized survey. So we have expanded our services in Guyana to just providing boats and ROVs.
In terms of the porter, mooring and and look up, you know, is you know, we wanna remind that, again, even if we don't have an assigned anchor handler, you know, to the region, we always been successfully been able to secure good project in in the in North America, bringing the boat from Europe most of the time during the winter. Right? So we take advantage of a slow market in the North Sea and bring the boat across. So, you know, pretty much almost every year, we were able to bring the Skansen adding value to the fleet, you know, because, again, the market in the North Sea, you know, for for anchor handler, you know, it could be a little depressing. But we, you know, we've been able to deliver project in in the in North America.
So this is a a picture of the current Skansen in Trinidad mobilizing for a job in Guyana right now. They just departed two days ago. And this was the project of the El Log Salamanca in 2025 that it was completed in July. So the scanned implementer. You know, like for the scanned inventor, we were tasked at the last second to what we do with these vessels after the Mexican decided that we don't pay the vessel.
So, you know, Monster Pooler, bought out of Mexico. They bought that was in, like I said, in Mexico. We have to do a small stop in in The Bahamas for some maintenance. And we have to, you know, again, figure out how to replace this long term charter that it was in Mexico for another year. Right?
April 2026. So we have to mobilize a plan and mobilize ROV survey pretty much almost on on the day. So we have to fly the ROV to Trinidad, mobilize the ROV to Trinidad. And and again, there is a lot of, you know, stuff that is going on because again there is, you know, with the American administration, there is import and export control. So it was a logistic nightmare.
Okay. Let's start with that. It was a logistic nightmare to mobilize these two ROVs coming from Norway. We have umbilical coming from Trinidad. We have a large coming or other umbilical coming from US.
I think we booked five different flight to move the ROVs into into The Bahamas. And we were able to mobilize these two ROVs and secure immediately a contract with Exxon for the Marshall and Madison decommissioning that it was a, you know, a larger scope of work for what, you know, for what usually we do. So with that included an out tap out tapping, so pretty much drill into the pipeline to be able to flush the line. Flushing the line and after that recovering a subsea jumper and other subsea structure clearly free of oil. Right?
That was the task. That was a sixty days job in which with two ROV that we mobilized in The Bahamas and we tested in transit from The Bahamas to Port Aransas. So five days transit, we tested ROV across the Gulf Of Mexico down to 3,000 meters because that is what ROV are rated. We were able to achieve the job with only two days on not performing on not performing time. Call it downtime.
After that, again, you know, this is a beautiful boat. Right? The ROV are top of the class. We were able to secure two projects with BP. And this project, they really need, especially the subsea manifold, they really need a 400 ton crane.
It was a nice premium rate for the boat because, again, when you, you know, there is a market, right, 100 ton to 150, two fifty and four hundred. Right? So I don't wanna say you can ask what you want. You need always to negotiate, but it's a totally different market when you provide a 400 ton crane or for the crane or for the deck space. And we were able to deliver, you know, to install in two manifold and two subsea jumpers in two separate campaign, roughly thirty days of work with a maximum lift of 260 ton in 2,000 meters.
And then we keep the boat busy with Aeni, and now the work here is working for Talos. There have been another couple of projects between. Well, pretty much, we've been able to keep the boat consistently busy. Right? We didn't have much of downtime.
Of course, between project, you can have a couple of days, right, to change crew or or fixing a few stuff. And again, Monst is happy, so I'm happy. So this is a Q and A. I know this is a picture of the Scandic cutter. So the boat just extended for three years after dry dock.
So this is the second Maersk supply boat now in the red color. The implementer will be we have one boat in dry dock at the moment, right? And we will have it implemented in December no, sorry, later September going also to dry dock already planned. It will be the first of the 400 tonne crane boat with the red color. And we believe that we will keep the boat busy for, you know, we cannot say too much about pending contact, but we keep we believe we will keep busy the boat until the end of the year and then see what we're doing with that. That's it.
All right. One question from the webcast, which is, do you see potential for further growth in Canada? Or is the market sort of at capacity in terms of vessels there?
So I don't think there is a potential growth for vessels in Canada at the moment, but Cenovus like Suncor, Of course, they needed to maintain production. There is I I don't wanna say problem, but, you know, everybody has IMR task to perform. You know, two years ago, we did a very interesting project for for Synovus doing a partial of the marine replacement. And we know now they're talking about doing some umbilical replacement, doing other project that they can which we are doing engineering, right, because we are the, you know, the Synovus engineering firm, if you wanna. So there is that type of potential.
Like I said, the Canada is waiting for Biodenor. Yeah. Good?
Alright. Then we move on to the next section, which is Maarten, please.
Thank you. Yes. Now we're going to see how this operations, commercial achievements and good execution turns into numbers. And I would say for the last even for the long run, it's looking very good, yes, both on revenue, EBITDA, of course, now better than ever, partly due to an increased fleet but also a lot due to the increased capacity capabilities and project activity within the group. So driven further development in earnings without major investments outside of the Maersk acquisition.
And also, of course, there is a restructuring in this lower graph, but it's also good to see continuous deleveraging on both on a gross level, but also on a on a net level, but also on a gross level. And of course, in here, there is a big acquisition of 22 large modern vessels with $500,000,000 in additional debt. Yes. And of course, an important point as well is the ability to have stable margins through cycles, and we think that's going to continue. Just yes, very recently, we did $150,000,000 senior secured bond loan.
Very good process, very well received. Yes, pricing almost where we wanted it to. So very happy with that. The reason why we did it, it's I would say, it's threefold. It is refinancing and near term maturity for January.
It's a small international tranche left in Norskhan after the restructuring. It is, call it, ordinary course of business. These contracts Mario talked about in Brazil require a little bit of mobilization cost and CapEx that this helps resolve. And it is also because we want to be in the bond market. We think it is a value to be present. It helps us reduce the average repayment profile on the debt.
But it's not a big portion of our capital structure today. Of course, we want to keep the opportunity open for it to become a larger portion of that at a later stage. This is the maturity profiles of the debt in Dof. And this is on, call it, including the JV and everything. And this was the only near term balloon in the maturity profile.
So it was total balance was $77,000,000 And the balloon was $70,000,000 out of that for Jan January of next year. So now there are yes, you see the change here. Now it's a flat repayment profile for the next four, five years until the big refinance facility comes due in 02/1930. And of course, there will be a bond loan as well then due in the same year. And this is yes, we've yes, it's the same level of repayment that we have done this year, and the $200,000,000 is a big amount for a company with increasing earnings and EBITDA levels.
So it's reducing the debt quite substantially. But it is it's very comfortable for us to do it. We mentioned or Marco mentioned the Sea Dragon, the vessel, which is, let's call it, a special project because it is a it's kind of a free fleet renewal. You do a fifteen year contract on a vessel that is fully repaid in a much shorter time period than those fifteen years. And what we have worked on and is working on doing is financing this project.
We put it in an SPV in our Canadian operations. We financed that SPV with 100% of the newbuild cost in The U. S. Private placement market. So the only thing we have we have to operate the vessel and we'll get dividends.
That is what our, call it, exposure to this vessel for those fifteen years. So no equity used on this when the vessel is in operation. And no guarantee, no recourse to Dof Group ASA. So now it is with this, it is, in fact, call it, a free to renewal. Yes.
And this of course, you would have liked us to put numbers on this. We're not doing that at this point. But it is an illustration that shows with of course, we mentioned a lot of the contracts. We mentioned the HSTSs in Brazil. We mentioned the RSVs in Brazil.
We mentioned a few of the pipe layer contracts commencing. We have a few CSVs commencing. So it is, of course, an all else equal analysis. But it is it's important to say it's not to scale. So it's not a 30%, 40% increase that you are that the graph is showing.
But we are pretty comfortable saying that 2026 is an uplift from 2025. And the alternating factor for 2026 is whether the spot vessels, the projects and so on are delivering more or less than in 2025. But of course, as you heard from the speakers before me, we are pretty positive to that market. Yes, backlog, Mans looked at the backlog and showed how, call it, bigger portion of next or this year's revenue that is in the backlog. But of course, backlog also turns cash flow, and we wanted to show also a bit of an illustration, of course, but we are showing how much of mandatory debt service and maintenance CapEx that you need to do in each year.
And it is you see, it's rough numbers. Let's call it 200,000,000 amortization, dollars 100,000,000 interest and 100,000,000 maintenance CapEx. And it gives us a level around $400,000,000 that we have to pay each and every year to keep our keep the business going. And the percentage is showing how much margin would you need to have on the backlog to or yes, how big a percentage of the backlog is in that number. And we see for the years to come that it's at a very comfortable level.
So of course, we foresee that there will be good returns also on the equity for Doff holders. Yes. This is again, we're not guiding for 2026 and onwards, but we have pretty clearly stated that we have a dividend policy, and it is linked to the leverage of the group. We have said that we are going to stay between 1.52%, and that increased visibility puts us in the upper end of that range. We've also clearly stated that what we see now is good visibility, and we have said that we are looking to stay or go at the upper end of that range as long as the visibility is at the current level.
So what we are illustrating here is that the relatively rapid deleveraging, and this is using earnings, EBITDA from on the, call it, current levels, on guided levels for 2025, we are reducing leverage pretty quickly, giving opportunity and room to increase dividends. So included in this analysis is the debt amortization according to schedule. It is the maintenance CapEx already referred to, and it is the dividend payment on the current level. So this represents the possibility to increase it, all else equal, of course. And I guess this is partly saying the same.
But of course, we have said that we have an ambition to have a stable and increasing dividend level. And I think, of course, it's up to the Board to decide and to give dividends at each and every quarter. But these are the factors that contribute to doing those taking those decisions. So I would say now we have strong visibility through backlog. We have a clear path to increase the earnings in the near term.
We have resolved the near term maturities on the debt side, and we are at a deleveraging path where we thought we would be and are looking to be below the guided range of 1.5 or in the yes, within the range of 1.5 $2,000,000,000 at the year end this year based on Q2 balance and full year guidance. Mons, you want to do the wrap up?
Yes, you can do it if you want, yes? Yes, no, I've done it before. So see if you are better than me on here.
That is a challenge, yes? No, I think today, Sunset is up pretty well. I think Dof has a different and better position than a lot of our competitors due to the one stop shop integrated services on our own fleet. So we and we have showed that historically that we have managed to have less volatility in earnings due to both the operational model and the access to clients. I think our global reach, of course, it doesn't come for free.
I think we have Brazil, twenty five years U. S, twenty years Australia, twenty years. We have spent a lot of time and money building that organization that today is yielding returns. So I don't think I would yes, it did not come for free. But today, we can utilize that full setup without any incremental investment, giving a very good return on capital because the capital is only the vessels.
So apply more people, skills and knowledge and make more money. We have a large backlog. It is one of the key strengths of Odf, always has been. The backlog is with very, very good clients. We have historically always could rely on the backlog.
And I think it is key to our strategy to keep visibility to avoid short term fluctuations activity through having as much backlog as possible. Yes, I just mentioned ClearPath to increase the earnings to contracts that is yet to commence that is already entered into and and of course, a reducing leverage day by day, installment by installment and quarter by quarter with the earnings levels that we have today. And I also think it is an ambition to us, and it's been clearly communicated ambition to have a sustainable shareholder returns. I think we have gotten off to a good start and that development in that area is to be positive. So that leaves us with questions.
Yes. The final Q and A round. Of course, from the audience as well, but we have a few from the webcast. First one goes to Humans, and that relates to the CSV newbuilds that are coming in from a year ahead and beyond, many without contracts. Are you starting to get offers to rent those at attractive terms? Or do you see any opportunities there?
I don't think we have got any offers at attractive terms. I think, you know, we have had some questions whether we would be interested here. But I I not that what I would say is attractive terms yet. And and of course, it's because it's difficult, of course, to and that's a problem with new build estate is, of course, it's the long lead time. Yeah.
So as as they deliver in '27 and '28, and of course, it's it's difficult to take a decision on charter both in two, three years from now. Yeah. So I think those guys, at least in the subsea segments, we'll have to wait a while before they find a backlog for them, yes.
You. Lukas now at Arctic. You said you were short vessels for next year. How many and what vessel types?
The short vessel, you saw, of course, we are short vessel in some segments, and especially in that, let's say, medium CSV segment. Of course, we can sort, of course, if we so especially the two, three boats in Brazil so far. Of course, we have a few other deals in the pipeline that might increase the need for boats. But so far, we but of course, we it can be sold. But then we have to of course, what we have ability on is, you know, our own fleet is either the very big 400 ton crane boats, which we'll not use on these jobs, or it's on our anchor handlers, yes.
So it might be that we send an anchor handler to serve the PAF because that gives a lot of spot market opportunities. Or it might be that we have to source third party voice for it. So we haven't decided on that.
Okay. And then just thinking about the dividend. A year ago, you announced it on the Capital Markets Day. You flagged it that it was coming in May year, so eight months ahead. Then you might sort of you made it clear that it was $30 not $30 And now you have better visibility, I guess, you have higher backlog.
So how should we think about what are the decision criteria besides the math that you are showing on the slide staying within the leverage range?
Yes. Don't know. I guess Drawerin factor is, of course, is the 1.5% to 2% and the upper end if you have a good backlog here. And so that is what drives it. So of course, it's not Martin or me that decides the dividend.
And of course, it's for so what to say, I guess, is that I would be very surprised if there is not an increase in dividend into quarter three. That we can say, I guess, yes. And
the potential Brazilian new builds that are sort of being negotiated or discussed, have you sort of a ballpark number what kind of a CapEx commitment that would represent?
Yeah. Of course we of course we you heard, Mario, because we we are talking hopefully close to 80% year on year. And I think we said on the two two q two call that that, because this will have no impact on the cash flow in 'twenty five or 'twenty six and 'twenty seven, yes. So because the deliveries starts in late twenty nineteen to thirty. So it's very minor installments to the yards before that.
So it's so it will have no impact on and I guess that's the question if there are impacts on the dividend capacity. So not in 2025, not in 2026 and not in 2027.
Okay. And the new the contracts, the long term contracts that you are sort of signing in Brazil, how protected are you in terms of Petrobras trying to get out or trying to reduce their CapEx budget, etcetera?
Because we I guess all of our contracts in Brazil are with either Brazil flag or red flag. So you there is no risk of blocking. And I guess the best answer is true over twenty five years in Brazil. We have never had any termination or any serious renegotiation on rate levels on bolt on contracts. So I think that is the best answer.
I think it is if they are four contracts, they are four year contracts, yes. So yes, and of course, it's so Peterborough was perhaps the best client we had through the whole downturn.
Thank you.
Kevin Roger from Kepler Cheuvreux. I have two questions, if I may. The first one is the illustrative chart on the EBITDA is useful, and we do see that a lot of the EBITDA improvement is coming from the shipping segment. During the Q2 call, you say that some of the derates were up by 30%. If you had to quantify maybe the kind of average fleet derate increase for '26 versus '25, Can you provide a kind of gross number?
And the second one, do not take it as a bad, but 2025 has been exceptional in terms of order intake, notably with Brazil. You mentioned that it was even better than your expectation, probably more than $2,000,000,000 of orders. How should we think about the '26 commercial pipeline? Is this is there any country that can, in a way, offset a miss in Brazil because probably the activity level here in terms of tendering pipeline will go down, just to try to understand what could be the commercial performance of Dof in 2026 versus 2025?
To the last, course, it's for the vessel, of course, it goes a bit in cycles when you when they come available, yes. So but of course, it's always, Lemar mentioned it might be a discussion on the pipe layers next year. That could be for extension of the three that has new contract or it could be something on the three that doesn't have new contracts. Is so then you really have to sit down and see what both comes available, when and when you expect to. So of course to repeat the 24.05 order intake will be a Tufry, but of course there are.
So as I see it now, and what is that, you know, I'm eager to tell you stuff that I can't tell you because, you know, there are it's not only the one we have shown you where we where we see there are opportunities. No? So so so it's been the last half year and still, you know, you feel almost like you are walking on water because everything you want done a bit more comes your way. And of course, that will stop sooner or later. So it goes in waves and and but I think we have 70 boats and you will see a continuous order intake here, short term and long term.
But of course, to do fourteen, fifteen contracts on two tenders at the same. Of course, that is not often you do. But so but you just have to see when the boat comes available. And of course, then we can do deals on third party boats as well, yes. So it's difficult to say what kind of order intake you will have in '26.
But I'm saying if it is if it goes according to what we expect, there will be more nice announcement for Dof in the remainder of 2025. Do you agree, Dagorno? What was the first you had?
If you can provide a gross number, it's a rough assumption on what would be the implied share rate increase on '26 versus '25 in the background right now.
Yes. No, I guess that is very difficult since there's so many different vessel classes and service elements and all that. But I think the best answer is that you saw, of course, the uplift in second quarter this year compared to second quarter last year, where we had on the legacy fleet, not the Lufthansa fleet, had was it 30% more?
Yes, 35% So
it's and then, of course, you saw the five bank accounts in Brazil was 38% more. Mario commented that PLSVs starting over, that was up quite a bit and so on. So it but we don't have an average figure. It also, of course, depend on the mix of services in the backlog. But, you know, the slide Martin showed, I guess, we didn't have numbers in it, but it was it is substantial.
And I guess, you analyst, of course, you have what is the average analyst estimate for next year then?
Eight, thirty, 40? 30 something, yeah.
Erik Aspinfosser, SP1 Markets. Mario, I have a question for you. Petrobras, at least how they communicate to the market after the oil price have come down a little bit, kind of changed a little bit towards being more focused on cost. You can maybe also link that to the change in how they tender rigs now. I'm wondering if you've seen any change in behavior from Petrobras towards you and the market that you operate in?
Change? Can you further
In terms of they're a lot more focused, at least how they communicate externally to the market. They're a lot more focused on cost, cutting cost, improving efficiencies, trying to save as much as they can to kind of offset the lower oil price to continue to pay out dividends. And I'm just wondering if you've seen any change in behavior because of that and how they kind of potential future tender processes with them or how they collaborate with you?
I think this latest tenders compared to last year you saw, right? And it demonstrates that Petrobras, for their future, they need to guarantee the fleet. Whatever is the PLSV fleet, I mean, the entire fleet contract the long term. So they cannot afford to lose that. This has been going on now for, I would say, a few years. But they continue to be sure that they keep the fleet and they increase the fleet. So a problem that we had or Petrobras had in the previous AHDS tender when we saw those five PLSVs contracted.
One vessel and that was in 2022. One vessel that was not given to Petrobras at that time was this kind of Amazonas, right? And why? Because Amazonas and Iguacu are the same boat basically. And both of them were offered with ROV, right?
And but the Amazonas had not an ROV already installed, so we had to mobilize an ROV. So we were very happy to fix this kind of Iguacu with the ROV already existing, but we needed more money to compensate the ROV on the Amazonas, right? And I think the difference was at that time was a couple of dollars, right? So Petrobras could not pay us a couple of dollars more in order to fix the Amazonas. And then the question was, do we give the Amazonas?
Or we don't give the Amazonas, we play the market. So we decided to play the market. So Petrobras was you know that Petrobras, in every tender, they fixed their budget, right? You never know what their budget is. But when you negotiate it, they are not allowed to go above the budget.
This was a particular case. For $2,000 they could not contract the Amazonas. And they were very, very pissed off for not taking the Amazonas for $2,000 It was a big question to us. I mean, let's give the Amazonas, but really we need to make more money because we were spending more money. So we decided to play the market.
And we did good playing the market. So that means what? They have set their targets budgets too low, right? And so that difference from that timing to last year and this year is that they really increased their budget. So they had a flexibility to really play the market and be able to secure the vessels, all right?
So when you say that they are, whatever, limiting cost or whatever, I think what comes first in their strategy is to be able to secure the vessels. The Scundicarla, the Scundicarla, I think I can tell you that. I mean, we never thought we would give the Scundicarla the long term to Petrobras. Never. But, you know, they offered us a rate that we just could not pass.
I mean, what to do? Mean, the carload was there. When they gave us the rate, we're not believing. So that means what? They really need to have that amount of vessels to guarantee continuity.
How many AHDSs were contracted? We got seven, right? But the number is 15, altogether 15 AHTSs contract, we seven and then CBO five and SOESTAR, I think three or four, right? RSEVs, how many? We are providing eight, right?
Seven, eight. But there are 20 contracted. So they had that's why we did manage to put the Carla. But we never expect if you ask me, I would have a PIDF contract to deliver and try to make money and perform. So we were happy to let the car loan the PIDF.
But from the time those guys come in and offer $20,000 above what is the average, how can you pass, right? So what that means? They really Petrobras' staff, you know very well, right? But and they really must make an effort in order to contract for the lowest rate ever. And they really put threats on you.
You need to be you need I would say, you need to run a certain level of risk if you want to get better rates. Because when you are at that level that you are trying to negotiate the rate, you can really just go just above what they want and think they are going to give you and then they cannot. So it's pretty much a good feeling that you need to have in order to get the better rates. But what I can see, they have been trying to flexibilize the budgets that they have. So they could not avoid to give contracts because their limit budget is too low.
This is the experience from this latest rounds of contract. I don't know if I answered you.
Jorg Leiben, ABG. You're clearly deleveraging quite a lot or you are going to going forward, and that might also require some more debt to be put into the structure. How do you see demand from banks currently? And are you having or do you expect to have discussions with the banks of potentially flattening out the amortization profile of the term loan?
Yes, I think that's a really good question because the flip side is, of course, from reducing deleveraging is either taking up more debt or not repaying the one that you have. And I think we maintain all options open with regards to that, but it's certainly not bad solution to discuss with your current lenders whether you could reduce the amortization profile on the existing debt. But I also feel that we are, yes, in a good market with regards to obtaining new bank debt on vessels. And of course, we have yes, most of the vessel is within the big facility, but there are also a few outside of it.
And you said on the Q2 call that you see the project pipeline for next year shaping up similar to what you saw this year, which I think was a key comment on the Q2 call. Could you add some more color on what regions where you see a lot of requirements or where you or whether are other regions where are more that are more muted?
I guess the guys are here. The only one who is not here is APAC. And so he just won a one year contract for one of the oil classes, showing that he there is need for ongoing. So that port is going to Chevron now for a year on. So I think perhaps the guys can answer themselves why I am positive that we will get good backlog for the projects in 2026. Start with you now, Marco.
There is a lot of tendering ongoing and a lot of interest, like I said, from operators to secure other contractors for different jobs. And this could be a $5,000,000 job or a $50,000,000 job. So there is a lot of tendering activity ongoing that give us confidence. We cannot win everything, but
I want to share Marco's view on it. I think all the years building up to a level is bearing fruit. We see that on tendering, but we also see that on the niche segments. In Construction, we see that there is a different tendency to come to Dof. We see that on the IMR side.
We see that on basically on the decommissioning, which is of course in the North Sea is a very mature market. And we see ten years of a very strong decommissioning market ahead. And of course, Mons alluded to getting ready for renewables, cables is part of that too. And just the two last years, we have executed three cable repair projects and we have been making solid money on that equal to oil and gas as well. So, yeah.
And I will say We have a three I class available that are very attractive vessels into the market because we can cover a lot of task, you know, with the deck and the crane, which we didn't have before '20, you know, November 2024.
And then my last question, you see any opportunities or discussion to potentially do some some more investments in your vessels? Could put a crane on more of the anchor handlers? Could you are you even debating to put VLS on some of the big CSVs?
No, of course, we I guess we didn't mention that earlier in the presentation that on the because we have had we put the crane on the Hero. And of course, Constant Hakkura, so we have had it for forever. So the Hero, of course, has been a great success where we have because I think I already said that high grading can fit, we are looking into perhaps a crane on one or two of the AMP classes as well. Of course, that of course, make them more attractive in the mooring space, of course, we also, I guess, on the Hera, we have used for survey and fire ram and all type of work. So you get much more versatile on a boat.
So that and of course, on VLS, of course, it's yes, because we are asking ourselves the same questions that you are asking us. I guess that's the answer, yes. And looking because we are looking into that. And it could be, you know, but I'm not saying that is a tougher decision than to put the crane on an IKEAN way. So that's but it's a relevant question.
All right. Then we wrap up. So thank you guys for the presentation. Thanks to everyone who participated here and on the webcast and for your questions. So a round of applause for the presenting team.