Vantage Drilling Intentl

Good day and thank you for standing by. Welcome to the Vantage Drilling International third quarter 2025 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you'll need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised today's conference is being recorded. I would like to turn the conference over to your speaker today. Raphael Blattner, please go ahead.

Thank you. Good morning, everyone, and welcome to the Vantage Drilling International Limited Third Quarter 2025 Earnings Conference Call. On the call with me today is Ehab Thoma, our CEO. This morning, we released our earnings announcement for the quarter ended September 30, 2025. The earnings release is available on our website at VantageDrilling.com. Please note that any comments we make today about our expectations of future events and projections are forward-looking statements pursuant to the Private Securities Litigation Reform Act. We have based forward-looking statements on management's current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, our expectations regarding future results, including expectations regarding our liquidity position. future costs and expenses related to upgrades and out-of-service work, as well as contract preparation costs and expenses. Forward-looking statements in today's call are subject to a number of risks and uncertainties, many of which are beyond our control and could cause actual results to differ materially from the projections made today. Vantage does not undertake to update any such statement or risk factor that could cause actual results to differ materially from our expectations. We refer you to our earnings release and financials available on our website. We have prerecorded our prepared remarks and are participating on the call remotely to manage the question and answer session segment of the call. In the event there are issues with sound quality or of a similar nature, please accept our apologies in advance and thank you for your understanding. Now let me turn the call over to our CEO, Mr. Ehab Thoma.

Thank you, Raphael, and welcome, everyone. I am pleased to report a successful third quarter of 2025 driven by safe and efficient operations. As previously reported, we sold the Tynksten Exploder on August 11th, 2025 for $265 million to the joint venture with Total Energies, in which Total Energies owns 75% interest and Vantage owns 25%. The consideration consisted of $198.75 million in cash and $66.25 million in equity. Vantage will continue to operate the Tungsten Explorer under a management agreement for 10 years with an option to extend for an additional five years. Subsequent to the sale, the Tungsten Explorer completed its scheduled maintenance, certification, and upgrade work scope in Las Palmas and has since mobilized back to Congo and successfully commenced operations on November 5th, 2025. As a result of the sale, Vantage redeemed its outstanding senior notes of approximately $65.1 million on September 10th. In April, we announced a conditional letter of award for the Platinum Explorer for an approximately 260-day campaign. including mobilization and demobilization. Unfortunately, in October, Vantage was required to terminate the contract due to changes in the applicable economic sanctions that made performance of the contract unlawful. Prior to the sanctions being imposed, Vantage was both contractually entitled to and received a payment to cover the preparation costs incurred. Accordingly, we do not expect this termination to have a material financial impact on the company. I would now like to take you through our progress in relation to our three corporate goals of, one, maintaining our stellar safety and operational performance, two, the contracting of our entire fleet, and three, achieving excellent stakeholder returns. I will begin with our first corporate goal and our number one differentiator, our stellar safety and operational performance. Our safety performance remained strong in the third quarter with zero recordable and lost time incidents. Environmental performance remained strong this quarter with no reported incidents, with our focus remaining on sustainable and efficient operations. The company's sustainability initiatives continue to progress, including enhanced GHG emissions tracking and ongoing waste reduction efforts, whilst all corporate certifications remain fully compliant. Now, switching to operations, revenue efficiency for the Tungsten Explorer during the third quarter of 2025 was 99.8%, while our managed fleet achieved 99.4%. I will now walk you through our fleet status, which is directly aligned with our second corporate objective. contracting the entire fleet. Starting with our own fleet for Platinum Explorer, our priority remains to focus on opportunities and adding term backlog. The RIG is participating in a number of active tenders and will participate to the highly anticipated ONGC tender for a three-year plus one-year option campaign. Turning to the Tungsten Explorer, the rig has successfully completed its major out-of-service work scope in Las Palmas and commenced drilling operations in the Republic of Congo for Total Energies under the management agreement. The firm duration for this contract is 160 days with additional options for a further 290 days. For the managed jackups, the Topaz Driller continues operations with CPOC in the joint development area between Malaysia and Thailand. There is currently over 11 months remaining of the firm term and a further three three-month options available to be exercised, with the first option strike date in the first quarter of 2026. The Suhana concluded operations with Medcor Energies in Indonesia in the third quarter and subsequently demobilized to Johor Bahru, where the rig is idle and is being actively marketed for a number of opportunities. At quarter end, our total backlog was $206.6 million. The majority relates to our managed fleet, primarily the Tungsten Explorers 10-year management agreement. The remaining balance reflects the Platinum Explorers backlog as of quarter end, which has now been fully earned and recognized upon contract termination. Turning to market dynamics, we continue to see positive long-term fundamentals in both the shallow water and deep water segments. while we still expect some idle periods across all segments extending through 2026. This outlook is supported by the issuance of several deepwater longer-term tenders and jackups being recalled to operation on long-term contracts after periods of suspension in the Middle East. These signs of renewed contracting activity reinforce our view that utilization will continue to improve gradually, underpinning a resilient offshore market in the years ahead. Moving to our third corporate goal of achieving excellent stakeholder returns. In the third quarter of 2025, we ended with a total cash balance of $197.4 million. This includes $2.4 million of restricted cash and $39.7 million of pre-funded cash by managed services clients. The increased liquidity was driven by the sale of the Tungsten Explorer. partially offset by the redemption of senior notes. The monetization of the Tungsten Explorer highlights Vantage's continued success in its managed services business, setting the company asset-light, debt-free, and well-positioned to return capital to shareholders. In closing, we remain focused on maintaining exceptional safety and operational performance and securing profitable long-term drilling contracts to deliver strong returns for our stakeholders. With that, I would like to turn the call back over to Rafael to take us through the numbers.