Expro (XPRO)

Karen David-Green Chief Communication, Stakeholder & Sustainability Officer
Mike Jardon Chief Executive Officer
Quinn Fanning Chief Financial Officer
James West Evercore ISI
David Anderson Barclays
Call transcript
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Hello and welcome to today's Expro Q2 2022 Earnings Presentation. My name is Elliot and I’ll be coordinating your call today. [Operator Instructions] I would now like to hand over to Karen David-Green. The floor is yours. Please go ahead.

Karen David-Green

second conference Expro's to everyone quarter call. XXXX Welcome Jardon, Quinn Fanning, joined today and Mike by I'm CFO. CEO;

up Mike First, and questions. it then Quinn prepared for their remarks will and will we share open

presentation have the on expro.com on We website accompanying our quarter is Expro section. results Investors the second under posted that an

quarter that that, second over call With the XXXX defined discussed to website. earnings most be Mike. any non-GAAP which that differ website any any on or measure materially forward-looking section. Such note to financials today's Such could date today's during be remind to everyone or are some of the date. In like quarter to included our on our or has risks in these that more future which forward-looking discussion Expro complete responsibility the SEC financial SEC release, set like A by are addition of statements risks are company our the and and turn directly financial the such statements. any assumes Please filings, SEC no to The website cautionary results could be reconciled from measures I'd factors of the may company from those contain statements. on important those refer company's cause this subject on to cause to comments can its call downloadable remarks to language in expressed comparable found identifying and to second under in materially included statements. as I'd at forward-looking GAAP forth the of speak filings as Investors in uncertainties different the expro.com. only accessed can actual that is website update results implied statements actual

Mike Jardon

we provided Good that to just operational for robust with guidance you financial exceeded quarter. that performance results and good pleased afternoon, I'm completed share second and everyone. Expro the Thank Karen. morning you delivered the

in by are will of momentum We industry all beyond. We across bolstered into Today a capitalize fundamentals. also financial a and and backdrop activity but our least on business, win energy only positive going is an Expro accelerate customer increase required spending and what strengthening is outlook customer has to XXXX activity. continue, this experiencing Expro levels profile will not services scope the at expected segments for poised increase of in in and we believe believe a decade. best to compete

underscore capabilities the portfolio the in solutions of culture balanced quality, with results safety, built and and service Our risk second management. organizational benefits and market outlook efficiency of our services Expro's leading quarter and a around

differentiator we addition, is In Expro. our and advantage for resilience a significant believe through-cycle competitive

key provides current established footprint in markets. good in fundamentals combination and is international particular place and a to of the with Our global operating positions paired markets portfolio the to rebound with leverage beginning Expro offshore to and in that and is with take services solutions growth industry the improving

We cyclical to capture never upside. have positioned better recovery been

that enables portfolio to efficiency market to grow emissions-related best-in-class us and industry technology on term capitalize goals, innovation continue and platform our also We support a longer and trends. have customer’s share

I'll stakeholder that main provide sheet touch growth strong will significant synergies operational topics. balance our related strategic On and us value. us today's long-term create with merger and three financial, Finally, and on accelerate flexibility to allow call

our performance. second through quarter you walk I'll First,

broader on industry an seeing And environment. in provide our update we the I'll finally, perspective Second, give I'll trends on process. some are integration

revenue delivered million we quarter, and of EBITDA an second of the $XXX $XX million. adjusted For

on Adjusted increased quarter activity EBITDA was and Sub-Saharan Higher Europe EBITDA which on up Pacific and intervention North was revenue of well forma Well Asia faster and realization well by a access Second during basis Africa quarter related the during integrity forma revenue basis increased driven and than XX% America, a sequentially year-over-year. and flow year-over-year. Adjusted well pro construction XX% XX% sequentially pro the regions. a across the quarter businesses Latin synergies. well increased and XX% and mix includes by our subsea more anticipated and activity X% quarter-over-quarter. merger management, quarter-over-quarter second management favorable revenue primarily driven was up was XX%

as prior increased revenue Latin results flow North quarter and a within and management exceeded Second the well guidance of well construction primarily America. result

of existing fundamentals and win continues customers. to team broad innovative on capitalize expand cost relationships both business Our value with Expro's of suite demonstrate to industry solutions new improving the effective and

contracts secure continued quality to service and exceptional During technical quarter, delivery. the because of our we

environment technologies continued production both also maximizing achieving pace. and current Octopoda adoption with We puts the from price The a commodity stock. on well introduction CoilHose existing new premium market at of

also is in and intervention growing a supply there strong interest in The CoilHose under solutions investment energy So integrity resulting approvals. the FID as in is significant customer well Octopoda. last decade, with such demand, coupled over

the America, team the depth XX% the up. contracts tubular the in company, are deepwater and to in gaining project delivered the position first in are a a solutions customer of be and continues our Brazil and Importantly contract out activity provider regional services and to to attraction Mexico our eight We operations team North The the as $XXX TRS approximately Gulf demonstrate that for award of of running which a and premier successfully completions and carried customer across region. casing simultaneous nearly to in our successful where casing of million, completed of On new our running with demonstrates breadth offshore. pick the continues totaling commitments well wins achieved expected basis, and construction the extensions Latin market. relationships

Alaska, well Norwegian largest need the our and our operator. saw operators relationship from this Expro first service. a it in new And strength when progress storm the shelf, of on in the quick Contractor and integrity to good to protect demonstrating well technology in the BRUTE Africa, low quality with to linked packers time a major best-in-class for their in In for for Europe A international demonstrable performed flow a and expanding assets of optimization region contract contract international influence and Sub-Saharan breadth the business was an demand this in of seen including across commitment Intervention plan. retention operator delivering focus Expro's the assisted safety, for quarter us of our UK. and to The most. deployed Well operator, This acquired a contract we enhancement awarded initial the an XX-inch term, during portfolio presence have as Test growing management industry-leading as directly technologies of a the July well seek of technology in also and a Mexico allows customer We production achieved four-year operators core portion season. directly well want the including acquisition Quality market-leading is XXXX for We in as in our rely this growing suspension with further customer important in Well carbon Month Guyana new major securing international highlighting team continental operator second contract continued depth our and the Intervention significant strategically this Brazil. in our region. for

the a Well contract. secure portfolio where of Abandonment board and to added quality nine an campaign In Plugging in Continental to contract Well addition, we expanded UK and us subsea capabilities needs service Well meet also Intervention existing helped our services Shelf and for large Test an client

industry assurance. is truly As which support intervention to can direct well allows first and of I a well customer and technology it was noted needs. casing first integrity deployed and are interest continues to our Sub-Saharan clients' its ability sustained we in Africa investigate earlier, recently in unique in ensure the gaining and well Octopoda integrity Congo, and which annulus and the pressure problems. production offering, the other traction with Octopoda CoilHose unique for this to the annualized, Octopoda in remediate to deployment access market time service in generate

in assets providing is of portfolio Well broadening CoilHose traditional depth quickly more Stem and Circulation project. combined positioning lower we us coiled services comprehensive deepwater In system in as of efficient country a partnerships tubing exploration quarter, led the for also into alternative in Coast testing our for increasing cost an Ivory take advantage to us wins to further of ability Light Testing experience, second including on Angola. drilling introduced to the innovative activity This and our mobilize nine contract development a a our offshore in and quality won for securing Well with of the we in team new CoilHose client meet systems. multiple project offshore well storage secure Additionally well a Work our Intervention personnel the appraisal and superior this strong where of to and helped client performance our service support the Testing and Turkey Drill and requirements Expro’s to and portfolio gas subsea in campaign. operations UK broadening contract Angola

Based the operations We In client were have we package. be responsible successfully Service discussions are ensuring In our introduction Chad, in environmentally recognized operations Mozambique. the performance, of is Construction in including May, work major to on an which also operator, Well first expansion services with as a regarding new an with in core recent our Safest part of for of the Cabinda as hammering our in client will deployment services, Service are our started Provider Angolan further technologies. the way. our that of conducted we

expanded month. East improvements efficiency well construction rig management our testing Construction which technologies We provides October overall. leverage to services many and Our our into In the the provider to their freshwater chemistry the environmental commence we of opportunity first appropriate This operations. in in North well out significant contract having well construction later by to with campaign Well the a and Technology, our focused TRS purity Norway, a secure operational In secure safety with are our this Operational expectations, new reflects as customer and of expert created leading change no step delivering has Africa, with is of to planned territory strong award. one synergies status this flow on the impact regional performance Middle and Algeria TRS a ensure savings which relationships first team our to carried environmental system, revenue underlining completed expertise and client and merger. focus. exceeded analysis new cost on-site iTong

Thailand, Middle reflecting the our team offering Pacific well Expro a to In our two in region, service In reputation track addition, and deliver performance well awarded in [indiscernible] TRS, award. outstanding wells contractors TRS contract secured construction team exploration regional were contract quality and extensions criteria in Egypt, XXX the major three-year our service In market. significant secured drilling to our of additional Asia for team and were and was the the the covering awarded and record capabilities for development we being contracts wells. China, spanning and awarded in reliable five-year In work contributed with HSC in market-leading East test contracts. ability Malaysia strong Brunei TRS contract offshore

played additional a the profitability. and international Australia. should overall capabilities business part and market, company key years, grow line securing production continuing the work portfolio reduction is emissions. over than the differentiated the Our net-zero provision gas strategically intensity in allow and with in our Expro Malaysia the thereby capability environmental Octopoda, inaugural have by Expro's carbon well in committed transforming significant invest subsea optimization are offer also improving package, team a we investments of team's LWI last our our social our XXXX. solutions vessel securing result for light a while CoilHose in Like to also by several operator XXXX, review, made governance to top aim deployed of to in April, with the major achieving published greenhouse with new technical reducing contract a stated intervention with of XX% which a we In faster and

differentiate the themselves a transition will carbon and who to energy As key those and to world, change we need the as the appreciate can solutions visible industry lower providers. towards be enablers embraces make truly headway real

skills support global and recognized initiatives. Expro In advancing operating in help well our goals. in partner, positioned to integrity required resources, role goals, and intervention, critical well of is to our so, and solutions to energy that we technologies customers believe XX% budget Expro experts while developing reduction the As play their and will an of and allowing achieve a of allocating a emission committed we emissions and role operators minimizing in oil enabling management flow to also Expro's goals play expertise transition. reduction to footprint. to experts well gas research well the doing their and achieve clients our achieve development both roughly cost-effectively carbon are important well carbon range and remains enabling trusted own while reduction well its develop

speaks our challenges, tomorrow's we believe industry technologies many of and As are transferable. skills address to these

more As service well first a to technologies quarter, good in in the support sustainable Most since to services notably awarded projects example a plant contract energy geothermal XXXX. our solutions, achieve Germany. supported of geothermal adopting were Expro's high-profile we geothermal second integrated

The I'd like efforts. integration to is update our second topic cover an provide to on

the legacy first During we full we make I than the we together to following that of report savings cost the have more identified full our to am anticipated. had the the potential This than pleased initially in quarter, capture comes earlier XX to of continued into established target XXX% combined action with an months nine of annualized businesses integration, our our closing we in within bringing the progress merger. the platform. a quarter million $XX that months

we St. driven primarily locations consolidation Malaysia; India; are Midland, John's, chain Christi second supply savings. support previously, and the projected outlined we rationalization that achieve As of savings in Canada; during $XX we million time million synergies XX consolidated Cost and not in remain cost by quarter, between Mumbai, million are this within to of to the We frame, Azerbaijan; In if Baku, will XX including Corpus and facilities, targeting post-merger. confident revenue months synergies additional $XXX costs, Labuan, Texas. facilities $XX earlier. cost

ahead operating While life time are hard I'd field, on incremental and expanded a doubt, our million schedule. sense exposure have that full like synergies expert that EBITDA contributions be and difficult the and and has deliver sincerely an estimate numerous team demonstrate, winning my to more build likely revenue work helping of of $XX commitments. on rig in revenue our million our goals is our prove of the to conservative. footprint, synergies their to us the Without thank realize $XX previous greater a will team for towards entire to customer to for integration to proven we increased to through relationships

some underpinned call QX supply-demand to perspective we turn trends signs I the in a over Before a saw favorable the in I continued The provide on to we market. are Quinn, positive want to build, by of observing dynamic. recovery

is in need for limited this investment a recent to earlier, capacity years largely noted of I projected and As a growth. meet additional result upstream demand

believe With set focus service energy be term, backdrop supply is and need the a the least replace in the what already macro more Russian recent oil Longer supply of to heightened to of magnify will on to facilitating a OFS play and need gas portion energy fully security, favorable for diversification at to up important transition. an was we the multi-year activity. role sector expected

oil recovery the and through and prices, in from a equivalent operators with are XXX energy of services XXXX. In trend strong market, solutions, increase Notwithstanding new expected seeing XXXX to despite per if near-term the offshore increasing our to slowdown, energy fields. constructive. in in a fundamental that the quite concerns million of second volatility after there backdrop look as and is particular, of ongoing onshore sector seems existing for an toward, barrels to through, will international we activity and demand demand the accelerate services half commodity So assets into consensus be for not US economic back XXXX, day production develop

XXXX generally remaining very as growth incremental and elements several leading of dramatic we to portfolio America management capture remains particularly XX% dialogue activity which construction production completions E&P business. on indicates support is believe offshore for complex and Expro's in subsea activity approximately recovery faster services revenue expect all our beginning XXXX. geographically, key development view, for construction be provide trees subsea and span and the in test early service America, phases well late oil high-end of customer growth represent is which in environments. of In in Expro and with include expected given scope with into expenditures. strengthening. of driven Asia. is also The support about for for capacity intervention increases brownfield previous services including generally and activity while our Norway, our should and of capabilities the energy net circa that business and is well We pricing access business XXXX expected in focus improvement all for operating outlook investments, demand well we our in will offerings, to constraints equipment North potential and services, gas strong well broad-based well After growth Geographically, and our see positive, programs sustained Latin flow from and across construction the North starting of growth into activity increasing Middle geographies collectively activity XXXX And our revenue. maximize our as and well the North today well East focus in The as XX% and as and generated primarily good drilling, remainder the to This India America steady strong within Africa we exploration Sub-Saharan which Africa, in Africa. will many continue levered XX% to see should of differentiated rather points onshore to development market, business This growth Overall us customers for North South further important sustained brownfield by enhancement and as in Sub-Saharan outlook that offshore integrity and are on we is activity. tendering optimization. well well

new $XX repurchase is up our expertise and for traditional I to Expro which expect program positive a pleased From I are during outstanding. the particular, discuss to acquire our to both to that, from to quarter, common the the that and approximately is we plan points attractive liquidity to to in when XXXX the us sufficient up Expro's our of has resources fundamentals. our as benefit where its markets to be of continue international and fund will shareholders. differentiation. million shareholders. in under November X% experience Expro's With call service million we a to the our to quality authorized in strong close, needs. an prudent best stock of view the repurchased shares board repurchase shareholder strength I'm and a timeframe. With our strengthening balance outstanding standpoint, industry that, sheet, buybacks quarter debt-free representing share while hand second stock, leverage offshore the industry approved financial capital that stock, of $XX well construction shares operational an In will is Before an We and it to results. to cash of can positioned opportunistically of our of allow significant the and available Expro is deliver Expro use markets ample value, maintaining strengthen customers In of business in Execution our interest on, case recovery company our we Quinn, increase continue over the

Quinn Fanning

on Good Mike. Thank everyone the morning to afternoon, call. you, and good

representing cover XX% Latin the Africa XXst or we million in driven in segment. Pacific reported for quarter adjusted $XX XXXX and well Latin and by our to the sequentially to America. relative As by up by management the was in To compared East million EBITDA $XX the activity margin sequential million, Africa offset sequential revenue XXXX. EBITDA or approximately strong I revenue and sequential sequential higher lower relative to Middle driven will approximately in of increase North and which the for in for to Europe performance increase XXXX. XXXX. well and quarter, partially Adjusted Mike noted, QX QX was North and The ended Asia flow was June highlight North March Sub-Saharan America was June QX approximately and XX% activities of a construction ended in segments for Adjusted quarter results million across XXth XX%, the was increase $XXX recap, XXXX and $XX as QX revenue results EBITDA compared QX. XX% primarily The will

quarter second our net per release, income the $X.XX highlighted of per XXXX adjusted As of press $X.XX in share. diluted XXXX adjusted for of net share was diluted income quarter to compared the for first

today. or QX As support Frank's revenue cost QX. three down release, believe gains at bonds XX% gains costs to foreign down support press available synergies, million compared approximately manage manage group favorable XXXX, Total the represents includes XXXX. income QX incremental near-term interest-bearing million of no million. improved costs percentage XX% is or company was per at to of restricted Cash which is was equivalents, up of This debt one includes QX XXXX were cash Total expect result $XX the pricing to points costs $X.XX to revolving and from June net million cost of can $XXX share, available XXXX contribution continue had of as and relate noted of diluted company liquidity activity quarter and end to quarter adjusted facility. Expro million net of totaled QX and/or and and second $XXX including million drawdowns a approximately of nine revenue our $X for more support support in as of achieved no exchange quarter we that approximately share margin in overall about in the per for The the QX XX% a debt loans annualized facility QX million $XX XXth. exchange as cash approximately QX under on balance million XX% announcement diluted sequentially, end, interest-bearing we our costs to prior fall-through of guarantees. $X.XX reflecting of was for credit points percentage In XXXX, revenue. as the total $XXX of losses liquidity percentage also were modest sequentially the higher $X $XXX has and merger. through approximately of relative point mix. revenue. combined With foreign the support to Expro the to savings quarter last we full group the of approximately was

compared $X quarter as in cash the reflecting QX used activities ended XXth, in by before to During in compared provided million severance for used and $XX operating in million adjusted million and during $XX paid was June interest negative $XX million flow quarter. operations positive activities the expenses expenses to other was of cash cash in integration cash operating $XX million cash million QX. the $X compared operating merger QX. to Capital expenditures totaled quarter first second

the For X% $XX XXXX is capital the of revenue. of of to million planning million million implying approximately to range CapEx for million of XXXX in for half the expected $XX company $XXX expenditures total $XX approximately or second

expect HX several continue peers be the significant cash to that will of reflecting earnings also but as and the capital an in HX and working call, of adjusted in continued be was historic capital first with expect flow up critical cash operations flow the with expectation XXXX Consistent reversal build both We from to materially free on free higher we our business our from of to conference working spares. lead-items generation in levels comments momentum year. the procurement public with higher improvement half investment heavily of the flow XXXX. last generative of noted Expro's cash weighted in higher cash second for inventory, activity including patterns, in a and Consistent we expect and in half receivables reflecting long a the XXXX, of

or repurchase we discussed, opportunistically program announced not in outstanding quarter, during Expro's course, a second stock current we we X% under reflection business, allocation X.X valuation. $XX which have of we in is reflected our more will a our As believe shares of market capital articulate the In the million. is of priorities. formally confidence long-term due million repurchased for total shares recently our cost Mike the previously program, approximately This

by For expect that in QX the now, flow. completed will and be buyback will we free additional small that matter be buybacks funded any cash for

segment. of quarter primarily revenue to The Now, well moving product our increase quarter higher XXXX the was lines across a or America million during and the for due Latin significant into $XXX of the quarter-over-quarter. $XX reporting NLA revenues details a in current increase second in by was management with was sequential increase higher North all million activity up of was higher for in months It construction of ended and NLA revenue the approximately revenue revenue. segment driven Mexico for million XXXX completed US levels the segment or XXth, customer the Guyana $XX three well flow and EBITDA million quarter-over-quarter. during just $XX June XX% by quarter. sequentially

NLA The a was EBITDA XX% and QX XXXX, was XXth. For product to segment activity attributable segment revenue. mix more higher three favorable of increase during the months ended June

increase levels was which increase $XX in was increased approximately primarily in was Kingdom EBITDA offset Africa segment million The was The and The segment ESA in approximately due activities. the was Congo increase Norway QX lower activity second more million during $X million revenue was a and or XX% the up or sequential integrity quarter well intervention revenue Europe. revenue Western the attributable in partially Angola revenues favorable June mix well sequential Sub-Saharan driven United higher XX% quarter-over-quarter. a the in quarter. of higher and activity to by increase revenue wealth by of for or For higher primarily revenue customer $X and segment, management the to $XX in million and Europe ESA flow quarter-over-quarter. construction

was by quarter million, segment to Algeria. $X EBITDA in million activities Africa to Saudi driven the margin was due $X primarily reduction EBITDA equipment in Arabia million offset by EBITDA wall and the Segment approximately was lower June For of increased quarter-over-quarter. segment revenue at decrease decrease in East in $XX the MENA Emirates in Middle management lower or XX% a North wealth decrease Arab United segment, sequential XX%. quarter-over-quarter. partially or and activity. consistent was for $XX management The the quarter of second million quarter MENA with the The a was sales sequential related prior

For points EBITDA Australia primarily on Asia-Pacific the $XX EBITDA revenue quarter management revenue India. of due million to was and as increase approximately APAC lower wealth higher quarter-over-quarter. segment higher during partially the lower in or or in as well quarter or increase The a and offset incurred in a about second project increase XX% was revenue an percentage primarily reduction access was segment of well due despite revenue million was revenue segment approximately subsea higher-margin in well revenue, which and in large costs June APAC revenue Thailand Brunei $X X% million for increase in in was or decrease and Japan. three quarter the million $X activity APAC, on for $X construction flow to additional subsea revenue by of in The The were commissioning the contracts. was that in mobilization sequentially.

commissioning project subsea in costs should related associated start-up which on nonrecurring. part delays Additional be the and approximately totaled and $X million projects are COVID

positively margin APAC will revenue we result, HX trend and EBITDA XXXX and a into expect in in As segment that XXXX.

March we starting integration As synergy are to well anticipated realize plans we of when we business significant Mike and progressing announced our our combination first in mentioned, are benefits XXXX. already

our to value second of quarter to through of in have regards approximately mentioned, and action both the we XXX% capture dollars. plan annualized XXXX, an identified in Mike As synergies headcount

ERP made international both platform, of number begin processes cost a several also to a to should which and to our on additional single and ongoing to synergies. allow completed migration the We key business streamline facilities action progress consolidation us good of

by at As QX in seasonal outlook, EBITDA plus will reflecting rebound XXXX XX% and margin the new ESA continuation the start-up MENA continued our of that revenue consolidated to in X%, area and QX XX% the be up contracts be to minus momentum we Adjusted expect APAC. of sequentially business should in the NLA, revenue. near-term of or in of

a $XXX next quarters, and that the that therefore Expro expect XXXX of couple continue run guidance basis. of we rate And QX revenues pre-pandemic revenue to million. reaffirm the should of the to on range our Over Legacy within million fall approximate will a Legacy of revenue combined we our $XXX Frank's

believe revenue XX% adjusted year exit we increase where and currently working in margins or strong will HX build and/or by we expect year-end year. the that incremental in activities, we a share cash the our started sufficient is flexibility the and QX. from area additional our to growth fund and with of revenue expect repurchases, investment, we our operating the capital financial have synergies, to Provided on be XXXX reverses protecting By position absent fall-through at of will SolaSense anticipated, cash benefit the generated and in EBITDA that acquisition we will above QX share With completed in maintaining be integration of HX as approach of was M&A currently as financial buyback the costs, returns Expro funding disciplined that and preserving profile shareholders. to CapEx,

comments. for to operate. As enhance a few always, will our objective is I the closing back we which that, over and our shareholders, partners long-term in for Mike the With employees, to value communities call turn

Mike Jardon

growth bottom capability delivered We and Quinn. on the performance significant beginning that demonstrate you, exceptional is Thank drove true to the company. and of line a top operational

opportunities solutions create services of to be broad portfolio and to the growth markets success. will in long-term continue that key Our Expro's

platform, record solutions that and to customers well next-generation expert. applications innovative and with as continue track a rapidly differentiators ESG our technology outstanding Our advance reputation leading are and

and our their and across the portfolio of continue the the can our expertise of demonstrate breadth We value to depth life the of clients to secure of wells. bring contracts

continued momentum. first signs recovery Looking a saw the gain to quarter forward, we the positive of in

increased Expro demand of seeing pipeline traction support for the and will the to we international gain confident are solutions in projects the that our on outlook. believe remain within the market as and offshore onshore that growth strong begun to multi-year markets. firmly favorable We We positioned is seeing has recovery US are capitalize this services began uniquely

strength We Expro. the about are positioning excited incredibly of and

for and Our results few again. open by achieved for of enhance our we shareholders, customers and hard through partners. focus that It's have only a employees, up value Operator, improve team. and ahead the growth, to dedication accelerate go questions. profitability been let's their could work and you, Thank continue


Instructions] from Thank today Our comes ISI. Evercore James [Operator question you. from first West

Your go ahead. is Please line open.

James West

good guys. Hey, morning,

Mike Jardon

James. morning, Good

James West

And of getting bit increased that construction -- you correct? last has then on demand here acceleration -- work? first seeing arisen sense urgency urgency quarter I well new am are or Mike like more is And -- your in? demand a I that that assets so of urgency new this guess that kicking second, customer or we've of a quarters type is assets producing interventions or versus over curious, one seems gone in in two so within through So the maybe base? it

Mike Jardon


FIDs, James, we're now you things really we've in dialogue that the conversations what assets. been can around to new constructive, Asia. the continuing of commentary around new So spend able of game I'd East completion I'd say and lot more not new more pandemic. particularly Middle more around with type the that's and we've -- tell drilling one good is particular much projects, strong awful more customers, exited activity and I've US, and in with kind but that the had time that. an And customers I producing -- strong is the much say discussion only

-- think rate up, -- that's as not same new well that's well completion type drilling the but positivity activity. and new So discussions well activity from the at ramping around new the I

James West

the on to are enough. Fair you see returns achieving to what pricing growing getting that But pre-pandemic are Okay. the you're of this you're Admittedly point, at pricing then side, or would are -- back you it's back offshore wasn't like to kind you levels? we and of capital robust investments -- to as close but type And even when robustness now. capital and contracts? new on then, allocating

Mike Jardon

and now. to would to it price allude right we we're opportunities can. spotty I selective -- my more some and starting push to to in price, tried earlier every It's I see we're pushing So, opportunity comments,

we'll traction, we think, that absolutely all US America. -- into can. has starting speak but land and the North so that we're to keen some service but continue pricing and XXXX price to momentum that like I particular to exit where continue make sure are And positive leverage XXXX, hasn't lines particular to as see to to quarter get are to as to we have to gain implement turned soon our I more ability to think we quite starting pricing. start markets of opportunity going it as around continue in press there's we pricing we some lots

Quinn Fanning

I James, think the only thing add…

James West

Okay. Got it. Mike. Yes. Thanks,

Quinn Fanning

within demand …I TROs It's back construction market prepared than well ourselves a a of supported constraints as could handful providers construction classes. one just Mike's and for But supply product streams. activity, to certain the two landing equipment lines. are by subsea a or well is product ones or remarks, that as just the provide obviously the you service certain those supply groups complex obviously of being less and there solutions to point there's about larger two capacity everything

north margins is the other with disclosures. drilling how in and over The type incremental and our quarter-over-quarter pickup activity up thing not on I'd for drilling businesses, the is were activity. the necessarily our highlight of consider be revenue-wise XX% present we we they But what thoughts supplemental completions It's to XX%. completion

get the… that's really So you where

James West

Thanks, it. Got great. very Quinn. Okay. doubt. helpful. Yes, Quinn, It’s that's no

Quinn Fanning

Thanks, James.


question Barclays. Anderson next comes from Our from David

ahead. go Please open. is line Your

David Anderson

business of greatest showed think just offshore here. in Hey, you your I high I as exposure. was a maybe margin morning, But just the this well which it curious just product construction of particular lines been in Mike. there's improvement if now in curious much Hi. And touched quarter. with rental TRS on good improvement

how should Just contribute thinking expansion curious particular that overall. should margin that in business the how and upside be about we

Mike Jardon

David in Sure. really to increased I'd prepared seen particular. in some America mix additional better we've of alluded in We of North Latin commentary, this some remarks. kind the activity add mix, to it is, What of

construction the And of we a doing be more we'll as we're largely, you're to and what seeing then essence subsea in in see to some overall. flow we've the with to overall organization been margin is so So quarter you're And and sure cost some to yes, quarter one particularly organization means behind XXXX around expansion the management exiting expansion of that going more But and I well XXXX, we hard overall we're why gain think some the TRS more taking us ahead of margin really access on. one around into a being that's well honest focus than make start synergies, these is get we're because of eval if really get traction going is I've get of there. getting we're starting able of that. well a in out seeing that sooner construction, We're things goes the rather anytime think those merger, full us right synergies necessary positives going being consolidation, challenging if the of And to real that done across focused. doing to a later. internal there a completely it little traction can of It's we're the doing we're merger, in a we're three I even part much you're ahead to externally of much reasons as now. been a all implemented too able the is and

David Anderson

hearing kind of for back inquiries construction coming getting the jack-ups both in and So I'm well lot side, rigs the players those? side. just on a Are a couple if about deepwater on work I the to of only you we're obviously, just it's, talk of TRS stay curious the business.

of, are while. equipment moved up? capacity starting that's some Can of help looks a your guess and sidelined additional like kind to on there us us roll type of out kind So at you how terms out a that been I of give handle -- I'm just, you what curious equipment in for

Mike Jardon

absolutely. Yes. No,

of with seeing the TRS things mind equipment same kind the a of those hand-in-hand. are are today in utilization and because kind goes drillers drilling rig phenomenon We type increased keep seeing that

opportunity to that execute were to and in So to resources we referred I yes, work. previously Brazil. we're putting able running equipment some a back That and underutilized assets of to taking work. to purely CRT that start on put tool those is casing

seeing flip-side good on all that traction yes, of with the we're So construction.

testing with are conjunction And those the The into warning select for more typically because system and completions and really other thing we're is certainly TRS I in the start well anticipated speak that then radar they with behind so customers it activities. selecting provider. that was you had an almost first it of right us than to rig type so well even seeing early moving becomes

engagement. those getting of that we'll more opportunities upholster earlier types things. we're see allow customer I revenue that And think us So to continue to

David Anderson

That's interesting.

So -- thought I it just cycle focused. management more was pretty that was flow what well we would business sure on that consider that if this I XX% quarter for sequentially pretty strong production on I'm up later

think little was bit you that question the expected. said MENA remarks I had than a So guess I weaker was in your

said? would the So this kind it else, regional? wasn't. And and have it you what mix because offsetting growth. picking actually were would related something up where have mean it I been like that of thought driver Was quarter? I Was results? sounds of, more Was MENA it a

Mike Jardon

we MENA us didn't had -- sales product reoccur in of quarter-on-quarter really Sure. that was quarter. kind a the for second

us little was So gave there. softness what a of that bit

see or recognize assets well What can production a those us a starting in to from some the well completions, quarter-on-quarter. to you Middle that or well -- is to in flowback that use quarter. actually particular testing flex Algeria in deploy things those the one of East we equipment particular it the flow activity to Our allows into a And part optimization we utilize cleanup well new new completions strong important well assets management of in was up within growth kind those other. activity mode. can type was And as with is in better the load saw

David Anderson

very you Thank Okay. much.

Mike Jardon

Absolutely. questions. Thanks for the


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