Good morning, everyone. Thank you for joining us at Seachem's third quarter update call. My name is Amelia, I take care of investor relations and corporate communications for Seachem. I joined the company in August, and I look forward to working closely with all of you. On our panel today, we have with us mister Chris Ong, our CEO, and doctor Steven Lu, our CFO.
We'd like to start the call with opening remarks from Chris and Steven. Chris, over to you, please.
Thanks, Amelia. Good morning, and thank you for joining us today. Before we move into q and a, I'd like to offer some quick comments on our 03/2025 business and operational performance, key developments, and management views on outlook and priorities. Now first, we continue the strong momentum from first half twenty twenty five into 03/2025 backed by robust project execution. We are also enhancing operational efficiency and unlocking value through divestment of non core assets.
Steven will later elaborate on these efforts a little bit clearer. Project execution remains strong. During the quarter, we cleared the required classification and regulatory certifications and successfully delivered WTIB charities in early September. We have also delivered HVAC offshore substation, Changhua, two B And 4. Three FPSO for Petrobras are undergoing integration at Pass Boulevard Yard, while works on the fifth and sixth FPSO for Guyana are advancing at Pendong and Paimea Yard respectively.
Based on what you all visited us the very last time, I think we welcome all of you to visit us again. Toss Boulevard Yard is now filled with activities. Now replenishing order book remains a priority backed by robust pipeline and industry tailwinds. We are a diversified business today across oil and gas and renewables as well as establishing early leadership in new energies, which would be critical to position us well amidst global energy transition. Well, while we cannot control the timing of FIDs, the pipeline and the market outlook remain robust, and we believe we are well positioned to capture our share of these opportunities.
Now for oil and gas, we are actively pursuing new build and EPC opportunities in Americas and beyond, including the second FPU new build for BP following the recent FID for BP's Tiber deepwater project. Several FPSO tenders in Brazil and Guyana while also seeing demand for oil and gas production assets globally. In the renewable space, energy security is still a prevailing team in Europe, and we see growth opportunities in Asia, driving series build opportunities for both HVDC and HVAC platforms. Repair and upgrades continue to enjoy strong repeat businesses, providing earning resilience. We will leverage our track record on developing complex solutions to pursue higher value work.
The most important, execution discipline and risk management continues to be the core pillar for us as we strive to complete most legacy pre merger contracts by, quote, financial year 2026. There are three more projects remaining on track for 04/2025, first q twenty twenty six delivery, including our final project at Amfelsia, the dredger for mansome construction. Regarding WTIV Sturgeon, arbitration proceedings are underway. We have rejected the buyer's notice of termination and reserve our rights for wrongful termination. We will defend vigorously while striving to secure the best possible outcome that will safeguard shareholders' interest.
This is a premerger contract and is the last contract in our order book on 2080 payment term. Post merger, we have been very disciplined to ensure contracts are on progressive milestone payment with risk adjusted margins of about mid teens, ensuring that the projects are cash flow neutral or positive is also a key priority. We are committed to transparency by providing accurate guidance and timely updates to market. Upfront financial impact of the developing situation is uncertain at this juncture and will depend heavily on the final outcome. But we will provide guidance when visibility improves.
Our strategic priorities remain consistent and aligned with shareholder interests, uphold customer trust by prioritizing safety and delivering projects with reliability and excellence, convert pipelines opportunities into firm orders, expand margins through series build projects, discipline execution, continue cost optimization and divestments, progress towards our 2028 steady state financial targets, and drive long term total shareholder returns. I will now hand over to Steven before we move into q and a. Steven?
Thank you, Chris. Good morning, everyone. Just a few additional comments before we move to the q and a. Firstly, our current net order book stands at 16,600,000,000.0, which remains healthy at above 1.5 times our trailing twelve months revenue excluding R and D, thus providing near term revenue visibility. Secondly, we have been accelerating our ongoing asset portfolio optimization efforts in the 2025.
As a reminder, asset portfolio optimization is the third lever in our value creation framework alongside order growth and resilience and margin expansion. The divestment of long haul ass assets and surplus yards is a key part of the strategy. These actions help to reduce operating costs, improve asset utilization, and enhance margins. We have recently announced the divestment of our US yard and platform supply vessels in Brazil. While we expect to book gains on these divestments, more importantly, these divestments would generate sustainable annual operating cost savings of at least 30,000,000 upon completion.
We have identified other noncore assets, include surplus yards, PP and E investments for potential divestments. While we are clear on what we intend to divest, we'll take a considered approach to ensure that we maximize value from each, and we'll provide further updates as and when material transactions occur. Lastly, to supplement Chris' earlier point on execution discipline and risk management, financial prudence and discipline is also of paramount importance. We are confident in the execution and cash flow generation of our purse post merger contracts. At the same time, we have also been transparent about the challenges associated with the legacy pre merger contracts.
While some of these, as Chris mentioned, may result in upfront financial impact, we are actively managing our risk to minimize net effect and to protect shareholder value.
To close, Seachrome is in
a significantly stronger position today with combined expertise and track record. We are now harnessing the scale and synergies more effectively across our global presence, underpinned by the one seat trim delivery model. Our world class customers continue to place their trust in us, and we are uniquely positioned to capitalize on opportunities in the global offshore and marine and energy sectors. Our fundamentals remain strong, and we are committed to drive long term shareholder returns to growth, discipline, and strategic execution. With that, let's move to the q and a session.
Thanks, Stephen. We now open the floor to questions. If you have a question, please raise your virtual hand to join the queue. When it's your turn to speak, we'll call your name and you'll be able to converse directly with management. We'll take the first question from the Q and A box from Brian, who is asking about getting some color on how the interest cost has moved for the quarter and the outlook for the rest of the year.
Thank you, Ryan. This is Steven here. As you know, we don't provide guidance on specific numbers in q three. However, our cost of debt has decreased in the last quarter due to lower baseline risk risk free rates, and our improving credit profile has enabled us to secure low margins on our borrowings. We have been also expanding our network of lenders to secure competitive rates.
Hopefully, that answers your question.
Thanks, Steven. Our first question in the queue first hand in the queue, Louis.
Hi. Good morning, and thanks for hosting the call. I had three questions initially. The first one is regarding the Maersk case. Is it impacting the FID timings you're seeing or your negotiations at this moment, or is it just business as usual?
And related to that, is the primary client of Empire Wind Equinor proposed any solution for the newly completed vessel since they have their own timetable to meet. So your vessel is right there and ready. And the third question is, just to clarify on what Stephen had mentioned, the $30,000,000 in potential savings, that's only for the two yards that you have already disclosed that are up for sale, or that includes, you know, future yards? Thank you.
Hi, Luis. I'll I'll take the the first question. I I think the the most WTIV case is a business as usual. It does not impact, and it's not considered inside our 30,000,000,000 targeted future projects because this 30,000,000,000 is the pipeline, what we are chasing. And your second question, I we we can't disclose right now because we are focused focused on executing the project.
How and when will there be a potential settlement? I think our primary contract party is most offshore wind. So that that's a primal primary channel that we are actually talking.
Right? Thanks, Chris. Just a clarification on the first question. Actually, it was more towards is is there any, like, new negotiations for the 30,000,000,000 project? Is the is the termination becoming an issue, or it's essentially accepted by your counterparties that the issue was with Maersk?
I I wouldn't I wouldn't say the counterparty would think that it is Maersk or us. I think it's a stand alone project, and I will call it difference difference in view. But I it's not impacting us
Okay.
Our future projects.
Thank you.
Lewis, on your third question, the 30,000,000 I mentioned relates specifically to the annual cost savings for NFL's guide as well as the PSVs that we recently addressed, and it doesn't include anything in the future.
Okay. Great. Thanks a lot.
Thanks, Louis. Next in the queue, we've got Silky.
Hi. Thanks for the call. Just wanted to get a little bit more clarity on the merge cancellation. Maybe you can just walk us through does the customer actually sign up progressively when you achieve certain milestone, and what is the basis of the contract cancellation? I'll move on to my second one after this.
Suki, you want me to answer, or you're gonna ask?
I think I think you answered I think it's easier. So yeah.
I I I reckon you have a lot, but let me answer the first one first. I I think that this that there are ex there were exchanges in our announcement. First, of course, what we are if you think is that it's a wrongful termination because our view is that we do have regular project meetings that state, you know, that there are exchanges as usual in any of the project that we have. But anything more, I think that the situation right now is rather sensitive, but what the main thing that Citroen is very focused to make sure that we refute it, and at the same time, not to forget that we have a deadline to deliver this. So we are heading towards the January 30 for the contract.
Okay. You mentioned that you are working towards the best outcome. What is the best outcome at this
The best outcome at this present moment is for us to complete the projects and be ready to deliver on the June 30. I mean, while while there are there are while while there are different exchanges, I think the most important thing is for us to complete the asset so that, you know, there there is a completed asset for the field.
Sorry. Yeah. Because they have because not really understanding the how the cancellation procedure will work. So they have already canceled, and you still complete. You mean you were actually told the vessel to the site?
How does that work?
My my delivery obligation is ex yard. Alright? So when we say that we refuel and this that and say that this is a wrongful termination, I still have to basically honor the contract and complete the contract.
Okay. So the vessel could still be sitting in your yard, but you just complete it, but do they not need to actually sign up to say that you complete?
Well, we still continue to invite our clients for any of the inspections. We still have class in the yard that will take a look at all the tests that we are doing. So I think at the end of the day, there are deliverables to state that the vessel is actually completed. So we are following the protocol.
Okay. Just to check that in the event that they this prolongs and then you can't really complete it, that is I mean, just as with usual cancellation risk in such work, you can take ownership and sell. Right?
Let's not speculate, Shuky. When you mentioned that if we cannot complete, we will complete on the January 30.
Okay. Then what is the impact of your working capital if they don't pay up the 80%?
I mean, this is a twenty eighty contract. In the first place, 80% working capital is being financed by the yard. Then, of course, come January 30, we will assess the impact accordingly because there's still the the situation is still very fluid. And from now till then, I said, besides focusing on the delivery of the vessel, of course, there there will be different scenarios that we're working towards.
Okay. Sorry. Just one more relating to this kind of question. This this issue is are you in talks with them? Sorry.
Actually, two more. You are you in talks with them, or you're just focusing on delivering? Or are you in talks with Equinor?
As mentioned, MERS Offshore Wind is our primary contract party, and it's not surprising that we are in conversation whether it's due to the project or whether it's due to the case. But please understand because the situation is rather fluid right now. I think besides preserving our legal rights, the main focus is to complete the project, which then would be gainful for a conversation because whether the asset can go or cannot go to operate really depends on whether it's completed or not. So that doesn't change.
Okay. Last on this, do you have any other contracts in the order book that has twenty eighty payment terms?
This is the last of the legacy project that has a twenty eighty payment term.
Thank you. Can I just ask my last two question, then I will jump in again? Just to confirm, the order win during the quarter is less than 300,000,000?
It it has in terms of other win, it has been rather quiet, of course. But, again, I just want to remind, I can't control the FID pace of my customers. So I I'm just trying to confirm the number right now for the last quarter. So the last quarter, I believe, just from a quarter angle, there is a 94,000,000 FLNG
upgrade.
Thank you. And also the Manson is still in the yacht. Any major challenge that you are actually facing right now? Like, why is it still in the yeah. And yeah.
Maybe you can just I just wanted to check if whether there will be sudden provision that you need to do in second half relating to that.
Oh, as mentioned, I believe I shared before the the final stage of testing. Believe that we achieved all engines online, and the the team is targeting to complete of 04/2025, if not first q twenty twenty six.
Any risk of cancellation?
At this moment, no.
Not that know. Thank you.
Okay. Thanks, Suki. Next in the queue, we have Sumedh.
Hi. Hi. Can you hear me?
Yes.
Hi. Just couple of questions, I guess. Firstly, on the, WTIV, cancellation again. Just, considering the situation is fluid, you do have, you know, at least two or three scenarios in mind potentially. Could you please walk us through, potential scenarios and, financial impact, that that you can share just from a generic standpoint?
That's also helpful. And my second question is just on the Tiber FID. We understand the FID was taken a month back or so. How long would it take for the order to reflect in the order book? Thank you.
Hi. Thanks. I think that the MERS, as I mentioned, is quite early and fluid to actually talk about the potential outcome. As mentioned, thirtieth of Jan, complete the vessel, be ready to deploy, filling which then, of course, there's always the arbitration route that the two parties will have to take. But at this moment, that's roundabout what we are working towards.
Now your second question on Tiber. Yes, Tiber. BP has FID the the the development. I think we are one of the contracts. I guess they would be in the market to take a look at.
Just to remind, we signed a MOU earlier this year, so there's a certain timeline that we are working towards. So we still need to conclude paperwork. We don't have we don't have a fixed date right now, but I said good good observation. It's great that the the development has been FID. The the the as soon as we sign the contract, that then that will reflect in our order book.
Understand. Just quick one. The MOU means that Ethereum will get the contract. It's just a matter of timing. Is that fair to say, or are there still some other parties?
This this is
the same question, right, that you asked. But in any case, the MOU was for to take a look at repeat of the cascaded that we are already building. I guess, of course, to harness on the efficiency of having a second repeat build as a franchise. I won't say that it will confirm that Citroen will be the only party to win this, but all I can say is that we are in discussion with BP at the present moment.
Okay. Clear. Thank you.
Thanks, Suneet. We have a question in the Q and A box from Ada. Has two questions. First question on the margins trend this quarter and second question on customer sentiment that we're seeing on the ground this quarter. Maybe, Steven, you can take the first question and then Chris on the second.
Thank you. Thanks for that. As you know, we don't provide guidance on margins, but you can if you look back at our first half twenty five, our gross profit margins, it's more than double versus the first half twenty four, reflecting our strong core performance. Of course, we continue to focus on margin expansion through a higher share of higher margin projects, greater operating leverage as we grow the top line, and, of course, as I mentioned in the opening address around continuing to optimize our cost structure, enhancing productivity, and to further improve our utilization. Then, of course, as we have discussed previously, there is also a margin upside from projects where contingencies are released as milestones are hit.
I will I will take the second question that Ada has asked. I I think sentiment wise, largely positive. We of course, there are definitely some challenges in the market that's not only faced by SeaTram. We have, of course, have the trade tariffs. We have certain supply chain challenges, but I think at this present moment, we we have a healthy pipeline across all the segments, whether it is oil and gas, offshore wind, or even new energy retrofits.
But the key thing that I want to remind is that the long term structure demand for energy infrastructure remains strong. We all know that right now, besides growing population or or rather structural changes of population growth in more populated cities is now worsened at at the end of day by energy need by data centers, especially with AI adoption. Now and, of course, we all know that geopolitical challenges around the present administration in US, we can see that energy security also becomes a lot more important right now. Countries are taking a look at how they can be self reliant in terms of energy, which is the fundamental driver of any technology advancements and also any of the economic ambition that they need to achieve. So I I we see opportunities in the current environment, and, of course, the main thing is that Citroen will continue to put ourselves in front of the queue with our ability to deliver complex products and also be a solution provider for energy products.
Thanks, Chris. Ada, we hope that answers your questions. Next, we have Louis.
Just one follow-up question from me. If you can remind us the $30,000,000,000 targeted future projects, is there a rough split between which is oil and gas versus offshore wind in terms of percentage or any rough guidance? Thanks.
I I believe that we shared before, I think in the first half, that there's a 90 19,000,000,000 oil and gas and 11,000,000,000 of offshore wind.
Okay. Great. Thanks, Greg.
Thanks, Louis. Sunky, I think you have more questions for us.
Hi. Thank you. Just wanted to just follow-up on the 11,000,000,000 offshore wind in the 30,000,000,000 future projects. Is is that mainly in Europe and Asia?
Yes. Most I I think that the mature market in Europe and, of course, in Asia, mainly Taiwan, they're still seeing strong demand for offshore wind products.
Okay. Thanks. Just on the OSS two projects in US, I know that it is only less than a percent of your order book. Any risk of cancellation?
Oh, your sub you're you're referring to a substation in The US. Yep. Yep. Oh, basically, all the basically, all the what do you call it? The substations are are actually on-site in The US.
So they're going through installation stage. We do not foresee there's any, yeah, there's there's any risk of cancellation.
Why I'm asking is because it's just that the changes in US overall sentiment, whether the owner would need to, you know, look at impairing the cost or whatever that would even though you are there, there is a risk of cancellation.
Yeah. But a point to note is that the the two OSS that we are building, this despite the present US administration, it's very clear in the market that these two are being approved. So the customers in the so called even in the results have said have said that these two projects are are going on. Right? So one is the Empire Wind, one is the Refugee Wind.
Yep. Okay. Thank you. And I also just wanted to just check. You gave some details on what you have actually delivered or or rather executed this quarter just because we don't really know how much is the, you know, revenue you don't really disclose.
And I appreciate Stevens talking about your efforts of trying to still improve margin. But just on the overall revenue recognition side, are we seeing any, like, weaker trend whether that in in in the second half or just stable in case there's anything that, you know, you are in engineering stage or cannot recognize. Just want to get a feel of the overall revenue in second half. Like, the trend are stable or any risk that you are looking at?
Yeah. I think
As curve, whatever.
Yeah. For revenue angle, the cost is dependent on the POC of the projects that we have. It is stable because right now, we're focused on execution of the projects itself. So I don't think that you will see I don't know what's the extent that you are seeing on any hiccups, but, yeah, to us, it's stable because Okay. We are talking the POC as required.
That's what
we're using. Okay. And, also, just on I know you don't comment on competitors, but just wanted to check that you did consider to take over the Petrofac contract. And what happened if you did consider, why did you not get it?
I I remember you asked this a few times, but I'm gonna repeat what I said. At the end of the day, for the tenant the the tenant projects itself, the way it was set up is at this three consortiums. Right? Largely driven by both execution centers and also HD provider. So for this petrol effect, I cannot comment because purely it is between Tenet and Petrofac Hitachi.
So the strategy that they are basically going on, I can't comment on that. All I said was that if they need our involvement, we will be there. But saying that, we are also pursuing our own consortium prospects in in this big angle.
Okay. Thank you,
Ms. Yuki, next in nine, we have Chihui.
Right. Thanks for the presentation. I just want to ask delve a little bit more into your contracting outlook and probably get some color, right? You talked about your $30,000,000,000 of target opportunities, your offshore wind opportunity and how energy security is kind of driving all these demands and needs. But specifically on the offshore wind, we have seen an increasing number of zero bids for the wind tender, the Dutch one being the latest, right?
Are you not concerned? Or how should we think about it like beyond this the next twelve months? Is offshore wind an opportunity that a space that you continue to see opportunity and contracts that you can secure to fill your order book? And if there's so much demand for all these energy security, then why aren't we seeing a faster pace of, you know, contract wins and, you know, inquiries on your end? Thanks.
So maybe I will reply that first. I think that, structurally, when we take a look at energy transition, I think the view of the energy transition trend, we are we are still bullish about it. Key thing is that when we look at prospect, the key thing is that we are looking at HDDC prospect, especially in the Europe. Those are with TSOs, and TSOs is largely linked to how the government and how the TSOs are preparing to basically bring bring electrons into the grid. So that itself and the tender basically around developers are slightly different.
If you take a look in September 2025, Tenet actually announced a landmark €9,500,000,000 investment. So from that angle, it is still a very bullish and bright forward trajectory of how they want to develop offshore wind both in Holland and in Germany. And besides besides those tenders that are mainly for for the developer angle, We also know that Boeing five tender for two gigawatt HVDC's in the market for the German sector. So from that angle, you can see that there's still a healthy pipeline that's moving, and we believe that for the Holland HVDC site, there should be allocation in '26 2026, if not 2027. So from that angle, I I reckon that the EU plans mainly for energy security and an alternative to Russian gas is clearly moving moving in in tandem with both energy security and energy transition.
Thanks. So short, you believe that the governments will continue to push this directive forward. But what if, have you thought about what if they start to take cue from all these lack of tenders and then we decide that maybe they don't want to do as much, therefore your TAM kind of shrinks? And then if that happens, what will will SeaTram then pursue, you know, to fill its order book? Because this offshore wind is what's really filling your order book.
There's nothing else really in the oil and gas space.
Well, if you take a look at our split in terms of not only order book and also in the pipeline that we've just shared, actually, oil and gas is something that is still very buoyant. I think it's still going very strong. There are projects that are out there in the market and upcoming. So that one, I I think we'll continue to chase. We share that there's $1,919,000,000,000 of pipeline that we're chasing right now.
Well, just very specific on offshore wind that I I think that fundamentally, if you take a look in the last few years, it it is a re I I think it's it's more on the structure and also repricing. I think in the Europe and also Asia, the the sentiment around offshore wind probably doesn't do justice because of The US present administration. So we we I've too firmly believe that based on that, the split of energy mix is still going to create healthy growth in all areas.
Understood. Thank you for your insight. Thanks,
We have a question in the question box from Philip. He's asking about the five or six completed Brazil drillships and whether or not we have any intention to scrape or monetize them in something.
Philip, actually, the those drillships were at different levels of completion. But for the we actually scrapped the the holes that we can last year already.
Thanks, Steven. Another question in the question box from Ada. Vocitram look to be prudent and take provisions for the WTIV surgeon and the capital intensity dispute in FY '25 or '26?
Maybe I'll take this, Chris. On the WTME, as Chris mentioned, it is still a current apparently still a fluid situation, and so we'll make our assessment once we have a little bit more certainty around that. On the capital indemnity dispute, you may have noted in the first half, we've actually last year, we reversed the provisions that we're making this. And so based on the legal opinion that we received, we're not going to make any more provisions on this one.
Okay.
Thanks, Steven. I think that was the last question that we have. We don't have any more hands in the queue. So if there are no further questions oh, sorry. Silky has another question.
So sorry. So sorry. Can you hear me? Yes. We can.
Just on the MERS side, I know that you're focusing on delivering, and Steven, you did mention that you will assess and we'll see whether you you see any certainty of provision. So given that the completion is on January 30, if there was any provision that is required, it would be taken in for 2025 or, yeah, Just maybe help us on that.
Duqui will update you, as I mentioned, update you once we are all set.
Thank you. Duqui, we have a question from Philip. Hi, Philip. Philip, are you there?
Yes. Can you hear me? Yeah. Okay. Yeah.
So just now, I was asking about the five or six drillships that was half completed during the Samkop marine era that you you mentioned that one of them has been scrapped. But what about the rest? I wanna just know, like, what the intention is it, like, also planning to scrape the rest, or we could try to maybe still try to monetize them in some ways? Yep. That's my question.
Thanks, Philip. Sorry. Maybe I wasn't clear. Or the holes that can be scrapped, we've already scrapped last year.
Okay. Thank you.
Yeah. Because the the the project the six projects were very different levels of completion. Right?
So What about those that are very near nearer to, like, more advanced stage of of construction? Are they also going to be scrapped, or is there opportunity to monetize them?
I I think we keep we are keeping our options open. The two I I believe the two that are more competed one, they're still around. So, basically, largely, we are also waiting for settlement of of of the charter that was still in place. So I I think that that that one, we will have to just wait a while and see how how it comes. But, you know, we we we are open to options as we always are.
Whether to scrap it or whether to redeploy it, it will have to come after the second.
Alright. Thank you.
Thanks, Vivian. Seems like we have more questions coming in. Next question, we we will take a Pimas call.
Hi. Thanks thanks for the presentation. Just follow-up on can can you hear me? Hello? Okay.
Thanks for the presentation. Just to follow-up on contract wins. So on FPSO, I think you mentioned about Brazil side. We are still seeing still active tendering. I mean, we saw some we saw a cancellation on the p 86 tender a few months I mean, August.
Can you give us a bit more colors on the activity level in terms of tendering, what are the key projects that we could expect from Petrobras, this one? I think secondly, also, just try to understand because we we already have a series of IPSO building for for Petrobras. If, you know, in event, they they will like to diversify the concentration reset at the at one ship, yeah, what alternative they have at this juncture?
Oh, if I get your question right, Pei Huang, you mentioned about the prospects in Brazil. Yep. I think they're in yeah. In the market, they are they are quite a number of ongoing tender upcoming, and also there are also tender that has concluded, but discussions are still in progress just like the CYAD one and two. I believe that it was announced that SPM is has has the lowest a bit, so discussion are ongoing.
Well, for us in this type of BOT tender, we are basically the EPC party. So we are not funding it, but we are working with our regular customers to take a look at how we can add value. Alright?
And Mhmm.
You wanna ask our involvement, it can range from a full EPC to local content involvement. So there there's that is quite varied. But when it comes to activities, going forward, we have shared I think PetroCast on their on their development plan, they are quite clear. If I still remember correctly, there's no no less than seven until 2030. Please please check that out.
I I I think that's what they said. But if you take a look, I believe it's in the market that Alacora and Brussels 12 will be upcoming. Those are BOT format. So we will foresee that the ongoing tenders are are mainly BOT in nature. I believe Avocora is p 88, and Bruzio's Chop is p 91.
Okay.
So you mentioned about competitive landscape of this from of course, BOTs are all the operators' lab. Mhmm. So there's a usual name out there. I can't comment on their strategy, which tender they go for. We work with all of them because we're in a business of building.
But, you know, based on recent CYP tender, we can see that I I think in the news, it's stated. I also reading from the news. I think Hanwha is also looking at building and us, and, of course, Chinese are also involved.
Okay. K. Thanks. That's all from me. Thank you.
Thank you. Thanks, Peyva. Next question from Silky.
Hi. Sorry. Can we can I just check? Because earlier on, you mentioned that the 2028 target is still on track despite what is happening, I guess, you know, in US side in just in general. In in in in there, I remember we said that our revenue will reach 10 to 12 by twenty twenty eight billion.
How does the change in the overall, you know, sentiment and what's happening to the customer's FID impact would have any impact in your order win assumption? Because in order to achieve 10 to 12,000,000,000 by 2028, we probably have to achieve that working very hard to clinch $67,000,000,000 by next year to to to deliver.
You you you can trust us that we are working very, very hard always. But just to give all of you a little bit on the sentiment, there's a few mentioned about ongoing customer sentiment and all this. I think the key thing is to really take a look. I think it's all of you are quite well versed on all the tenders that are ongoing right across the spectrum of energy. If you take a look at oil, there there are Brazil prospects.
There are African prospects for production asset. In the Gulf Of America, the FPU formula seems to be in favor. We are still executing one for Shell and one for BP, and I believe that it's also mentioned that Tiber is on the way. So, technically, we still see a strong robust requirement on the oil sector. Now for gas, there are a few ways that we are playing.
Right? The FSRU conversion and also on top of that FLNG prospects. Those are still worthy chase list, and that's why it is all in our pipeline. Now for offshore wind, like, what I mentioned just now, probably the sentiment is is slightly driven by the US administration, the market in The US, which is decent in the first place. And, of course, some field tender in Europe, like UK and Holland.
But as as mentioned, what we have in place today is quite a diversified angle of approach. One of the best one that is reaping good return for us is a a franchise built on HVAC and HVDC. And we do believe that there are tenders right now ongoing that we are hopeful. But, of course, in any tender, it it all boils down to economics and also our ability to deliver. So I think that right across the value chain of energy transition, there's still a lot of projects going on.
Now for 2028 targets, our view is that we are making steady progress. We are not changing our our ability to meet that by 2028. So based on the order book that we have, based on our operation efficiency that we've been working on largely for the last few years. Plus, one of the very important factor is on our cost and our bandwidth. Diver divesting the non core plays a very important role also, not only on management bandwidth, but also on our running cost at the end of the day.
So I I think all these factors are all have always been in play, and we've communicated that. And I think firing on all cylinders, we will be able to meet our 2028 target as what we have mentioned.
Thank you.
Thanks, Vicky. We have a question in the question box from Adrian asking about the the Guyana opportunities that we referred to earlier. One is the rough timeline and potential order book that could look like within the 19,000,000,000 of oil and gas opportunities.
Yeah. For for for Guyana, we have basically integrated all of the FPSOs. We have two of the FPSO that we are working on right now in Hyder, one for MoDEC and one for SPM. Those are integration projects, and we we the the projects are working along fine. And, basically, those projects have gone in series, and the certainty or execution is well demonstrated.
So I I I can say that we are the preferred integration company for Exxon and the contractors. What proportion of the auto it depends. That one will really depend on what formula or how you guys start the projects and what part of the project that we'll be involved in, and that's not certain at the present moment. Because I believe that Exxon has not came up with the next one yet. Alright.
So based on the 19,000,000,000, the the prospect, it is is largely still fluid at this present moment.
Okay. Thanks, Chris. That was the last question in the question box, and I don't see any more virtual hands. I'm gonna give you three more seconds. Otherwise, we're actually quite close to time, and we can end the call now.
Okay. So oh, sorry. Chui has a question. Maybe you take the last question, Chui. Chui?
Hi. Yes. Thanks again for the opportunity. I just want to go back to Suki's discussion about your 2028 targets, right? Given that you have an estimated run rate of 10,000,000,000 to $12,000,000,000 revenue.
And I think right now, you're going to do about $10,000,000,000 revenue. You have a $16,600,000,000 order book. You're going to deplete it by the end of next year unless you have some serious big contract wins. So assuming that you secure your JPY 30,000,000,000 next year, right? I mean, you secure a portion of JPY 30,000,000,000 opportunity next year and that fills your order book again.
It is to note that these big orders have come in like once every two years or so just based on the pattern we've been seeing. So given the changes in the environment, are you still confident that you can still secure this sort of like 8,000,000,000, 10,000,000,000 contract wins per annum to sustain your targeted run rate going beyond 2026? Because it's looking a little bit challenging from our standpoint here.
Yeah. So we of course, we don't forecast give forecast on what's the auto win. That's important. But like what we mentioned, why we are sharing the pipeline exactly the question that was asked on us to see whether there are even prospects of being able to secure. So if we take a look, at the end of the day, again, the FID movement is largely dependent on few of development and whether the customer FID them.
But if you take a look at the prospects itself, even with a fraction of it, it will keep continue to build up the 16,000,000,000 that we have. Now the question would be, well, we have been burning off the order book for a while right now. But as mentioned, there are few immediate prospects that are already near or already FID, so we'll continue to add on that order book. Now for this business itself is largely order book driven, and it is it is not practical for us to really forecast what is the sentiment and how much are we going to secure in the next one, two years. But suffice to say that a 16,000,000,000 order book itself is comfortable for us to execute in the next few years because it will continue to add on that whether it is the 8 or 10,000,000,000 we are talking about, whether it's 4 to 5,000,000,000, it will continue to add on it.
And not to mention the order book itself also don't include r and u business by itself. So there are a lot of factors that are going on. But as mentioned, once the pipeline is as such in the market, we will do our best to basically add on to the order book to make sure that there's a better visibility as we move along.
Got it. Thank you.
Okay. Thank you, Chewy. I'll just give you a little bit more time to see if you have more questions. Otherwise, we'll end the call here. Okay.
I think we'll we'll end the call here for today. If you have any more follow-up questions, please feel free to reach out to us at the email listed on the screen. Thank you for joining us this morning. Until the next quarter, take care, and we wish you a very lovely day ahead. Thank you.
Bye.