This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.
spk_0: the day and thank you for standing by welcome to the vantage drilling international fourth quarter two thousand and twenty two quarterly earnings conference call at this time all participants are analysts and only mode after the speakers presentation there will be a question and answer session to ask a question during the session you'll need the press star one one on your telephone you will then he an automated message advising your hand is raised to withdraw your question please press star one one again please be advised that today's conference is being recorded i would not like in a conference over here speaker today douglas stewart the company cfl in general counsel
spk_1: thank you good morning everyone and welcome to the them to go in international fourth quarter twenty twenty two earnings conference call on a call today is also he had toma our ceo this morning we released our earnings announcement the quarter and year ended december thirty first twenty twenty the earnings release is available on our website advantage filling dot com please also note that any comments we they today about our expectations of he prevents and projections are forward looking statements present the private securities litigation reformat we have based for looking statements on man has current expectations and assumptions and not on historical facts examples of these statements include but are not going into our expectations regarding future results including expectations regarding our liquidity position feature costs and expenses related to a great read that reactivation one as well as contract preparation costs and expenses forward looking statements in today's call or semi to a number of risks and uncertainties many of which are beyond our control and could cause actual results to differ materially from the projection say in today's topic school we refer you to earnings release an effigy filings available on our website banished is not undertake the updating and have any said statement or is factor that could cause actual results to differ materially from our expectations we have pre recorded are prepared remarks and are participate in the called mlp to manage the question and answer session segment of the call in the that there are issues with sound quality or the similar nature please accept my apologies in advance and thank you for your understanding now let me turn over the call to our ceo history had summer
spk_2: thank you douglas and good money and good afternoon everyone i would like to take the opportunity during this early goal to reflect on the successor year of twenty twenty two we were all happy to see that twenty twenty to thirty five danger to recovery and reflected a clear shifted focus from simply read utilization to you that eating healthy returns through tampa bay rays thank you thank you to was a very successful year for vantage operationally with all our own managed unsupported rigged the phone safely and efficiently to the full satisfaction of our times in line with them food market conditions and thanks to our customer focused and unwavering commitment operation like since our fleet of rigs was fully connected during twenty twenty two and is already contacted for a significant portion of the year twenty twenty three one of the main event for vantage during twenty twenty two what the closing of the same for others of the images of company consisting of a few jackets and covered as well as fighting a three year support services agreement for the three weeks the field significant the delivered our balance sheet and paved the way for our successful refinancing earlier this month also twenty twenty two was the year when we finally have good ability to significantly improved rates as owned and managed shakes is coming off legacy contracts this trend continues in twenty twenty feet and we see this being the year of repricing of the full faith with no rigs left behind on legacy they rates i'm not going to walk you through my prepared remarks by following our feet corporate goals as i normally do these those are fun maintaining our state of health safety environmental and operational performance two putting all our each to work on higher the race and three preserving cash and liquidity and now with focus on t as fluctuation beginning with other good number one and thirty was safety we continue to strive for incident feet operation as underscored by our perfect day every day vision advantage we strongly believe in cultivating that this perfect day every day culture which is achieved through our ongoing efforts to train coach and mentor our troops i'm immensely proud of our fees for the other old safety performance during twenty twenty two despite all the challenges and complexities the face in twenty twenty two despite significantly more exposure with a sixty four percent more men hours worth compared to twenty twenty one we maintain the same high standards and results we did that with the number of rates actively under our management increasing throughout the year from seven to ten and with eight of those tricks going to a mix of company positions the activation mobilization and that that's in new countries have a patient there were a number of significant fifty highlights think anything to which included five of alerted rates not having any records of it incidents and the platinum explorer and the fire five dollar both achieving zero injuries have any type over the course as possible you it is clearly to note that the platinum explorer had no a cheap feel injuries for the third year running a truly remarkable achievement this achievement is a great testament to the level of effectiveness of our in the operation thanks to the for professional is from hard work of out of your crew and look at management in india moving to help our well tested got it done language for the goes to combat the spread of the virus within our workforce of largely protected our employees contractors and partners and have minimise disruption doubt operations in twenty twenty two beyond our focus on our a brief states the and help we continued our vision and focus on protecting the environment where we work we also resolved and twenty twenty two to bring greater focus on our efforts on sustainability while we were already going to great lengths to deliver on the t and kids is he quality health safety and environment twenty twenty two was the first year where we formalized a more comprehensive approach to environment social governance he as she we've published a working group that developed and published an internal report and our easy efforts with right five targets for twenty twenty three based on data gathered in the prior to years we believe the diversity is a critical aspect of our easy efforts as it is a powerful attribute that many organizations strive to achieve advantage the diversity of our workforce is a core part of who we are as evidenced by the forty eight personalities that comprise our workforce within our to the population seventy one percent come from asia africa middle east that in america and eastern europe and thirty percent of our own short days employees are women or mess with theme is also the vest with representation from nineteen different nationality this in diversity will continue to be a fundamental part of our success in the future no operation the door the road sleep revenue efficiency for the fourth quarter was ninety three point six percent with that jacket feed delivering ninety seven point three percent and the people at the feet of cheating ninety two point nine percent in part you to cycling weather conditions in india in october and
spk_3: zynga
spk_2: for the entirety of twenty twenty two revenue fission seat for the feet was ninety seven point three percent with the jack a feet at an impressive ninety nine point nine percent efficiency and the deepwater feet achieving a commendable ninety six point three percent to summarize we are proud of our safety and a bracelet performance and twenty twenty two which has always been the primary reason why flies choose to work with vantage moving now to good number to have been feeling all our eggs working and please report that all of our eggs are working and our good now shifted from a simple focus on utilization the focusing on achieving higher are our to the backlog at the end of twenty twenty two stood at two hundred and seventeen point two million dollars compared to under seventy seven point four million dollars at the end of qc twenty twenty two as use it i'm going to update you on our concept the activities and on our a status in regards to both owned and managed fix beginning with our fellow the race that thought that dealer started operations with better in egypt early in the fourth quarter through a barrel chested arrangements with at this egypt i've mentioned during our previous call vantage is earning a fix bevel charged a fee from had a seizure that's a very good monkey the bite to that cheap drilling contract margin getting the fourth quarter we received a letter of a word from any for direct for ninety days work in morocco for a total contact value of twenty three point eight million dollars in such time definitive concept has now been fun we think that the buzz ruler to mobilize to morocco after completion of the fits within egypt work please note we have also received a letter word from pets rebel for an extension of the existing contract at bit of them for a period of seventy five days before mobilizing to morocco moving to the so hannah the rig continued to work for medical indonesia where it is expected to continue until sometime and qc twenty twenty three we are in the final stages of contacting the rate at the materially higher they rate and for a relatively long term contract in that a continuation with the current contract we have invested significantly in the crew and the vessel synthetic was added our fleet and as a result the so hannah is now a much deserved break in the region
spk_4: shifting now to the people feet the platinum explorer contact with own you see in india will continue until late you for twenty twenty three the rig apart from having a commend the safety record is operating successfully for own you see in some extreme current on their prestigious is
spk_2: cause products
spk_3: we recently had this it's offshore by the chairman the ones you see and his leadership team and have received praise on the a performance and it's contribution to the success of orange scene over the years the plus an explorer have only work for his you see since it was built and has consistently delivered faith and if fish
spk_2: operations to their foods that infection we look forward too many more years working for on his feet and were very proud of what our onshore and offshore teams in india have achieved year after year finally the constant explorer finished his successful campaign with any snipers in december twenty twenty two underwent conflict operation and planned maintenance and mobilized in the media were of the rig acceptance we started the new contact with the that energies at the beginning of march that that energies has exercised the first contractual option bringing defend them of the contract through que one twenty twenty four it is worth noting that the contract operation and mobilization when we're done on budget and on time with development corporation of our long term steam find that that images i will now spend time discussing our operations amazement services business getting the fourth quarter of twenty twenty two and after concluding it's reactivation work and leblanc on time and on budget the out is will be like india and started it's new concept for on jersey this campaign would keep during busy until the end of que three twenty twenty three moving to the capella their it concluded his contract in indonesia in october twenty twenty two and has gone to plan maintenance and recertification work drink you want to twenty three we were awarded a forty five day from concept in east africa for the rape with a total value of thirty seven million dollars and the rig is now mobilizing to come into this contract which is expected to start getting apron upon conclusion of this contract the regular return to indonesia for it's contact with several operators bed with close to a one year off from work in addition to some yet to the exercised options lovely that queries is it left fatherless undergoing future reactivation viewed as can work and is being actively marketed for work worldwide the managed services business line has been highly successful generating significant value for the owners and serving as a song revenue stream for vantage we aim to capitalize on this success by pursuing further managed services of a huge is leveraging our effective and efficient management platform on the market outlook twenty twenty two has proven to be a pivot here we expected it to be for the offshore drilling industry we remain optimistic about the long term prospects for them to see as that a new focus on energy security and reliability continues to drive increase demand for offshore drilling looking ahead to twenty twenty three we expect to see continued recovery in though drilling market especially in the areas of exploration appraisal drilling where we anticipate an increase in demand for deepwater drilling services as new discoveries are made in previously untapped area in terms of regional performance with see on demand for drilling services into various reasons of the word largely in the middle east live in america west africa and asia pacific were new exploration and development activities are strongly on the right i have they rate and longer term contracts are being fixed as customers are trying to secure available rigs or future work and looking to they they race as they raise unexpected the good deed increase driven by a varied by supply and demand balance as i said at the beginning we plan to take the tighter market opportunity to a price the full fleet and twenty twenty feet with nordiques left on legacy they are it it is worth noting however that the recent global banking sector turmoil and the immediate impact it's had in the price of oil is a reminder of the outside forces that goes on price volatility the conclude my prepared remarks i discuss corporate gold number three of preserving cash and liquidity which was a fundamental killer was going through a very for long industry downturn douglas will provide you with more color in his prepared remarks but i would like to highlight some important gas events we close the year with though the cache of ninety three million dollars inclusive of i've got the guys of twenty nine million dollars or an advantage drilling international cache of sixty four million bucks during the fourth quarter we paid down hundred and seventy million dollars about that bringing down standing death down two hundred and eighty million dollars and pivoting the way for the successful refinancing earlier this month with this one's have a two hundred million dollars secured bond with a nine and a half percent coupons or all in used to maturity you have approximately ten point three percent maturing and twenty twenty eight with our for on drakes to of the many tricks and three supported the drink or operational and our capital structure optimized we expect twenty twenty feet to be a turning point for positive free cash flows in the ratio for the company this is the year where our focus for good number three is shifting from simply preserving gosh does sharp focus on generating positive free cash flow
spk_5: would that i would like to during the cold over to douglas to take us through the numbers
spk_1: frankie have it morning and welcome everyone turn this portion of the car i briefly will go through the details of our recent refinancing and on focus on my customary discussion and how the company performed financially for the corner and year under december thirty one twenty twenty as he had mentioned in is prepared remarks during the fourth quarter twenty twenty two we redeemed one hundred and seventy million of are formally outstanding nine and one percent first priority senior secured nets to twenty twenty three by using proceeds from the sale of our did see regs i closed in a second quarter of last year of course early this month to redeem the remaining one hundred and eighty million dollars and the nine and a quarter percent bonds and paid the associated accrued interest using the proceeds from the issuance of the new nine and a half percent perspiration your secure notes between twenty eight in addition to the redemption the proceeds of the new bond were used to cover financing fees and for general corporate purposes we're obviously very pleased with our refinancing especially given the recent volatility in the financial markets moving to the company's financial performance the quarter and under december thirty one twenty twenty two the company and of the year with approximately ninety three point three million cash including nineteen point two million in restrict your cash i'm twenty nine point zero million of cash presented by are managed services customers to address near term obligations associated with the operation in the ranks this compared to two hundred sixty two point three million which included eighteen point seven nine and restricted class and nineteen point seven nine of cash presented by are managed services customers at the end of the third quarter a decrease in our cash is primarily due to a hundred and seventy million partial payment on a nine a quarter firstly net and seventeen point eight million dollar interest payment working capital for the fourth quarter twenty twenty two ended at approximately ninety six point two million compared to two hundred sixty nine point one million in third quarter twenty twenty two a decrease is mainly due to the partial payment of the nine a quarter personally nuts for the fourth quarter twenty twenty two we achieve revenues of approximately seventy six point two million compared to forty nine point eight million for the fourth quarter twenty twenty one the increase is mostly due to higher utilization especially in a deep water silent which partially offset the decrease in a jacket segment to fail the idiocy rex
spk_5: which was completed in the second quarter twenty twenty two
spk_1: in addition to the cubbies own rigs are managed services segment contributed thirty six point four million in revenue in the fourth quarter twenty twenty two which compares with approximately five point nine million in the capital quarter of twenty twenty one total revenue for the year and a twenty twenty two was two hundred and seventy eight point seven million compared to one hundred and fifty eight point four main
spk_5: the increase was mostly due to higher utilization in the deepwater segment partially offset by law revenue in the jakob segment due to the sale the easier it
spk_1: the matter services segment contributed ninety nine point five million in revenue during the year and a twenty twenty two of which a six point one million constitute a reimbursed for revenue
spk_5: total revenues for the fourth quarter of seventy six point two million compared favorably to the seventy one million reported in the third quarter twenty twenty two driven mostly by higher revenue related to players his contract with owned you see in india in december
spk_1: partially offset by low revenue on the deepwater segment due to slightly lower utilization the tungsten a spore as a completed is by the by the have his remarks for the quarter are deepwater fleet achieve ninety two point eight six
spk_5: efficiency and are jacket plead achieve ninety seven point two five percent efficiency
spk_1: operating costs for the fourth quarter of twenty twenty two told sixty five point one million and were unfavorable to the forty three point nine million in the a quarter twenty twenty one primarily due to higher utilization of are owned and managed rigs partially offset by the lower costs associated the jackets to the sale at the eighty theory
spk_5: operating costs for the year and a twenty twenty two totaled two hundred and thirty four point eight million compared to one hundred and fifty point seven million and twenty twenty one the increases mostly due to higher utilization the deepwater segment partially offset by the lower operating costs and a jack of segment do the sale of the c ranks
spk_1: general and administrative expenses for the fourth quarter twenty twenty two total approximately five point three million as compared to five point five million for the comparable current when twenty one
spk_5: interest expense for the fourth quarter twenty twenty two was across my eight point eight million in line with the interest expense for the fourth quarter twenty twenty one the net result was the last sixteen point for name for the quarter or a dollar twenty five per share
spk_1: as of the end of the quarter with approximately two hundred and seventeen point two million of contract drilling backlog which included sixty one point two million related to the polaris where we entered into a contract directly with you though and you see and least the rig to it bearable charter from our managed services client one last item to note is that and twenty twenty two weeks variants several email related cyber security breaches referred to as the twenty twenty two cyber matters that resulted in immaterial amounts been paid to bad actors account amounts which were still temping recover we retain forensic experts and council to assist with our investigation which is ongoing although our investigation to date is not revealed any information that suggests that the twenty twenty two cyber matters will result in a mature lost the company when i was termed the likely to have loss if any arise and for this matter at this time separately in regards to the timing of the file of our ten k r auditors continue to work through there are procedures so that we may follow the end of the month or it is possible that they will not have concluded a procedures by such time
spk_0: i'll now turn the call back over the operator to begin the queue and eight thank you as a reminder to ask a question please press star one one on your telephone and wait for your name to be announced to withdraw your question please press star one one again one moment for questions and as a reminder to ask a question please press star one one on your telephone and i'm showing no questions at this time this concludes today's conference call thank you for participating you may now disconnect the oh
spk_1: yeah a day and thank you for standing by welcome to the vantage drilling international fourth quarter two thousand and twenty two quarterly earnings conference call at this time all participants are analysts and only mode after the speakers presentation there will be a question and answer session to ask a question during the session you'll need the press star one one on your telephone you will then he an automated message advising your hand is raised to withdraw your question please press star one one again please be advised that today's conference is being recorded i would now like him a conference over here speaker today douglas stewart the company cfl in general counsel thank you good morning everyone and welcome to the them international fourth quarter twenty twenty two earnings conference call on a call today is also he had toma our ceo this morning we released our earnings announcement the quarter and year ended december thirty first twenty twenty the earnings release is available on our website advantage filling that car please also note that any common to make today about our expectations of future events and projections are forward looking statements present the private securities with it jason reformat we have based or looking statements on man with current expectations and assumptions and not on historical facts examples of these statements include but are not going into our expectations regarding future results including expectations regarding our liquidity position feature costs and expenses related to a great read that reactivation one as well contract preparation costs and expenses forward looking statements in today's call or semi to a number of risks and uncertainties many of which are beyond our control and could cause actual results to differ materially from the projection say today's topic call
spk_2: we refer you to earnings release an effigy filings available on our website banished is not undertake the updating and then he said statement or is factor that could cause actual results to differ materially from our expectations we have pre recorded are prepared remarks and are participate in the called mlp to manage the question and answer session segment of the call in the that there are issues with sound quality or the similar nature please accept my apologies in advance and thank you for your understanding now let me turn over the call to our ceo mr you had toma thank you douglas and good money and good afternoon everyone i would like to take the opportunity during this early goal to reflect on the successor year of twenty twenty two we were all happy to see that twenty twenty to thirty five danger to recovery and reflected a clear shifted focus from simply rig utilization to you that eating healthy returns through some rays twenty twenty two was a very successful year for vantage operationally with all our own managed unsupported rigged the phone safely and efficiently to the full satisfaction of our times in line with them food market conditions and thanks to a customer focused and unwavering commitment operational like since our fleet of rigs was fully connected during twenty twenty two and is already contacted for a significant portion of the year twenty twenty three one of the main event for vantage during twenty twenty two what the closing of the same for others of the images of company consisting of a few jackets and cutter as well as fighting a three year support services agreement for the three weeks the field significant the delivered our balance sheet and paved the way for our successful refinancing earlier this month also twenty twenty two was the year when we finally have good ability to significantly improved a rates as owned and managed fixed started coming off legacy contracts descent continues in twenty twenty feet and we see this being the year of repricing of the full feet with no rigs left behind on legacy barrett i'm not going to walk you through my prepared remarks by following our speak hope it goes as they normally do these those are one min telling our state of health safety environmental and operational performance two putting all our is to work on higher the race and three preserving cash and liquidity a now with focus on speak as fluctuation beginning with other goal number one and thirty was safety we continue to strive for incident feel operations as underscored by our perfect day every day vision advantage we strongly believe in cultivating that this perfect day everyday culture which is achieved through our ongoing efforts to train coach and mentor or cruz an immensely proud of our fees for the overall safety performance during think it easy to despite all the challenges and complexities the face in twenty twenty two despise significantly more exposure with a sixty four percent more men hours worth compared to twenty twenty one we maintain the same high standards and results we did that with the number of rapes actively under our management increasing throughout the year from seven to ten and with eight of those tricks going into a mix of company positions the activation mobilization and startups in new countries have a patient there were a number of significant safety highlights include to which included five of our ten rates not having any records recorded incidents and the platinum explorer and the for five dollar both achieving view injuries have any type over the course of course a year it is limited to note that the platinum explorer had no a cheap feel injuries for the third year running a truly remarkable achievement this achievement is a great testament to the level of effectiveness of our in the operation thanks to the for professional is from hard work of our also crew and look at management in india moving to help our latest got it done for the goes to combat the state of the virus within our workforce of largely protected our employees contractors and partners and have minimise disruption go operations and twenty twenty two beyond our focus on our a brief safety and health we continue our vision and focus on protecting the environment where we work we also resolved and twenty twenty two to bring greater focus on our efforts on sustainability while we were already going to great lengths to deliver on the t and kids is he quality health safety and environment the t twenty two was the first year where we formalized a more comprehensive approach to environment social governance he as he we've published a working group that developed and published an internal report and our easy efforts with right five targets for twenty twenty three based on data gathered in the prior to years we believe the diversity is a critical aspect of our easy efforts as it is a powerful attribute that many organizations strive to achieve
spk_6: advantage the rescue of our workforce is a core part of who we are as evident by the forty eight personalities that comprise our workforce
spk_3: within our total population seventy one percent come from asia africa middle east that in america and eastern europe and thirty percent of our onshore based employees are women
spk_2: or measure the theme is also versed with representation from nineteen different nationality this strength diversity will continue to be a fundamental part of our success in the future no operationally dover old sleep revenue efficiency for the fourth quarter was ninety three point six percent with that jack lead delivering ninety seven point three percent and the people of faith achieving ninety two point nine percent in part to site on weather conditions in india in october and in december for the entirety of think he pointed to have an efficiency for the fleet was ninety seven point three percent with the jack a fleet at an impressive ninety nine point nine percent efficiency and the deepwater feet achieving a commendable ninety six point three percent to summarize we are proud of our safety and the bracelet performance and twenty twenty two which has always been the primary reason why flies choose to work with vantage moving now to good number to have been gaining all our eggs working athlete report that all of our eggs are working and our goal now shifted from a simple focus on utilization to focusing on achieving higher they are our to the backlog at the end of twenty twenty two stood at two hundred and seventeen point two million dollars compared to under seventy seven point four million dollars at the end of qc twenty twenty two as usual i'm going to update you on our concept activities and on our feet status in regards to both owned and managed fix beginning with our fellow the race that thought that driller started operations with better been in egypt early in the fourth quarter through a bad factor arrangements with at this egypt as mentioned during our previous call vantage is earning a fix bebo charge a fee from had a egypt that's a very good monkeys the fight to the chief drilling contact martin getting the fourth quarter we received a letter of a word from any for direct for ninety days of work in morocco for a total contact value of twenty three point eight million dollars in such time definitive concept has now been fun we think that the basilica mobilize to morocco after completion of the fits in egypt work please note we have also received let them away from pets about for an extension of the existing contract at better terms for a period of seventy five days before mobilizing to morocco moving to the so hannah during the didn't work for medical indonesia where it is expected to continue and did some time and qc twenty twenty three
spk_3: we are in the final stages of contacting the rate at the materially higher they rate and for a relatively long term contract in that a continuation with a cat and contact we have invested significantly in the crew and the synthetic was added our fleet and as a result the so hannah is now a much desire
spk_2: drake in the region shifting now to that he at the feet the platinum explorer contact with owns you see in india will continue until late you for twenty twenty three the rig apart from having at the meant the safety record is over eating successfully for own you see in some extreme current on that prestigious is cause products we recently had visits offshore by the chairman of ones you see and his leadership team and have received praise on their a performance and it's contribution to the success of orange is he over the years the plus an explorer have only one for you see since it was built and has consistently delivered safe and efficient operations to their footsteps infection we look forward too many more years working for on his feet and were very proud of what our onshore and offshore teams in india have achieved year after year finally the consent explorer finished his successful campaign with any cyprus in december twenty twenty two underwent conflict the federation and planned maintenance and mobilized in the media were of the rig acceptance we started the new contact with the that energies and the beginning of march that that energies has exercised the first contractual option bringing defend them of the contract through que one twenty twenty four it is worth noting that the concept of federation and mobilization when we're done on budget and on time with the valuable corporation of our long term skin find that that images i will now spend time discussing our operations amazement services business getting the fourth quarter of twenty twenty two and after concluding it's reactivation work and leblon on time and on budget the whole has mobilized india and started it's new concept for on jersey this campaign would keep them busy until the end of qc twenty twenty three moving to the capella their it concluded his contract in indonesia in october twenty twenty two and has gone to plan maintenance and recertification work during you one twenty twenty three we were awarded a forty five day from contract in east africa for the rake with a total value of thirty seven million dollars and the rig is now mobilizing to commence this contract which is expected to start getting a bit upon conclusion of this contract the regular return to indonesia for it's contact with several operators that with close to a one year off from work in addition to some yet to be exercised options lovely that queries it had left fatherless undergoing future reactivation viewed as can work and is being actively marketed for work worldwide the managed services business line has been highly successful generating significant value for the owners and serving as a strong revenue stream for vantage we aim to capitalize on this success by pursuing further managed services of okay good leveraging our effective and efficient management platform on the market outlook twenty twenty two has proven to be the pivots here we expected it to be for the offshore drilling industry we remain optimistic about the long term prospects for industry as that and you'd focus on energy security and reliability continues to drive increased demand for offshore drilling looking ahead to twenty twenty three weeks take the see continued recovery and offshore drilling market especially in the areas of exploration appraisal drilling where we anticipate an increase in demand for deepwater drilling services as new discoveries are made in previously untapped area in terms of regional performance we see strong demand for drilling services in the various reasons of the word largely in the middle east live in america west africa and asia pacific were new exploration and development activities are strongly on the right i have they rates and longer term contracts are being fixed as customers are trying to secure available rigs or future work and luck in today's they race as they a unexpected the good deed increase driven by a very tight supply and demand balance as i said at the beginning we plan to take the tighter market opportunity to a price the full fleet and thirty twenty feet with nordiques left on legacy they are it it is worth noting however that the recent global banking sector turmoil and immediate impact it's had and the price of oil is a reminder of the outside forces that goes on price volatility the conclude my prepared remarks i will discuss corporate gold number three of preserving cash and liquidity which was a fundamental killer was going through a very for long industry downturn douglas would provide you with more color in is prepared remarks but i would like to highlight some important gas events we close the year with thought cache of ninety three million dollars inclusive of i've got the of twenty nine million dollars or an advantage drilling international cache of sixty four million bucks getting the fourth quarter we paid down hundred and seventy million dollars about that bringing down standing that down two hundred and eighty million dollars and pivoting the way for their successful refinancing earlier this month
spk_1: the issuance of a two hundred million dollars secured bond with a knife and a half percent coupons or all in used to maturity you have approximately ten point three percent maturing and twenty twenty eight with our for on drakes to of the many tricks and three supported drink or operational and our capital structure optimized we expect twenty twenty feet to be a turning point for positive free cash flows in the ratio for the company this is the year where our focus for good number three is shifting from simply preserving gosh does sharp focus on generating positive free cash flow would that i would like to join the call over to douglas to take us through the numbers
spk_5: frankie have it morning and welcome everyone turn this portion of the car i briefly will go through the details of our recent refinancing and then focus on my customary discussion and how the company performed financially for the corner and year and a december thirty one twenty twenty two as he had mentioned in is prepared to my
spk_1: hours during the fourth quarter twenty twenty two we redeemed one hundred and seventy million of are finally outstanding nine and a quarter percent first priority senior secured notes to twenty twenty three by using proceeds from the sale of our you see regs that closed in the second quarter of last year of course early this month to redeem the remaining one hundred and eighty million dollars of the nine and a quarter percent bonds and paid the associated accrued interest using the proceeds from the issuance of the new nine and a half percent first perry senior secure notes do twenty twenty eight in addition to the redemption the proceeds of the new bond were used to cover financing fees and for general corporate purposes we're obviously very pleased with our refinancing especially given the recent volatility in the financial markets moving to the company's financial performance the quarter and ended december thirty one twenty twenty two the company and of the year with approximately ninety three point three million cash including nineteen point two million in restrict your cash and twenty nine point zero million of cash pre funded by are managed services customers to address near term obligations associated with the operation of the rigs this compared to two hundred and sixty two point three million which included eighteen point seven nine and restricted cash and nineteen point seven nine of cash prevented by are managed services customers at the end of the third quarter the decrease in our cash is primarily due to a hundred and seventy million partial payment on a nine a quarter personally notes
spk_5: and seventeen point eight million dollar interest payment
spk_1: working capital for the fourth quarter twenty twenty two ended at approximately ninety six point two million compared to two hundred sixty nine point one million in third quarter twenty twenty a decrease is mainly due to the partial payment of the nine quarter personally nuts
spk_5: for the fourth quarter twenty twenty two we achieve revenues of approximately seventy six point two million compared to forty nine point eight million for the fourth quarter twenty twenty one
spk_1: the increase is mostly due to higher elevation especially in a deep water silent which partially offset the decrease in a jacket segment to to stay on the idiocy rex which was completed in second quarter twenty twenty two
spk_5: in addition to the cubbies own race are managed services to segment contributed thirty six point four million in revenue in the fourth quarter twenty twenty two which compares with a priceless five point nine million in the capital quarter of twenty twenty one
spk_1: total revenue for the year and a twenty twenty two was two hundred and seventy eight point seven million compared to one hundred and fifty eight point four nine the increase is mostly due to higher utilization in the deepwater segment partially offset by law revenue in the jakob stagnant due to the sale the easier it the matter services segment contributed ninety nine point five million in revenue during the year and a twenty twenty two
spk_5: of wish a six point one nine constitute a for revenue
spk_1: total revenues for the fourth quarter of seventy six point two million compared favorably to the seventy one million reported in the third quarter twenty twenty two driven mostly by higher revenue related to players his contract with owned you see in india in december
spk_5: partially offset by low revenue on the deepwater segment due to slightly lower utilization the tungsten explore as a completed it contract with the i cyprus during december
spk_1: lower management fees of the capella finished his contract in indonesia in early october twenty twenty two and lower revenues efficiency a says you the plan is for has highlighted by he have his remarks
spk_5: for the quarter are deepwater fleet achieve ninety two point eight six
spk_1: efficiency and are jack plead achieve ninety seven point two five percent efficiency operating costs for the fourth quarter twenty twenty two told sixty five point one million and were unfavorable to the forty three point nine million in the car a quarter twenty twenty one primarily due to higher utilization of are owned and managed rigs partially offset by the lower costs associated the jackets to the sale at the eighty theory operating costs for the year and a twenty twenty two totaled two hundred and thirty four point eight million compared to one hundred and fifty point seven million and twenty twenty one the increases as they due to higher utilization the deepwater sanguine partially offset by the lower operating costs and a jack of segment do the sale of the see ranks general and administrative expenses for the fourth quarter twenty twenty two total approximately five point three million as compared to five point five million for the comparable current when twenty one interest expense for the fourth quarter twenty twenty two was approximately eight point eight million in line with the interest expense for the fourth quarter twenty twenty one the net result was the last sixteen point for name for the quarter or a dollar twenty five per share as of the end of the quarter with approximately two hundred and seventeen point two million of contract drilling backlog which included sixty one point two million related to the polaris where we entered into a contract directly with you though and you see and least the rig to a barrel charter from our mayor services client one last item to note is that and twenty twenty two weeks variants several email related cyber security breaches referred to as the twenty twenty two cyber matters
spk_0: that resulted in immaterial amounts been paid to bad actors account amounts which were still tempting recover we retain forensic experts in council to assist with our investigation which is ongoing although our investigation to date is not revealed any information that suggest that the twenty twenty two cyber matters will result in a mature lost the company when i was termed the likely to have loss if any arise and for this matter at this time separately in regards to the timing of the filing of our ten k r auditors continue to work through their honor procedures so that we may follow the end of the month or it is possible that they will not have concluded the procedures by such time
Disclaimer