Earnings call transcript: Ventura Offshore Q2 2025 sees stock dip 3.9%

Ventura Offshore Holding Ltd (market cap: $238.47M) reported its financial results for the second quarter of 2025, revealing a net income of $24 million and adjusted revenue of $55.4 million. Despite these figures, the company’s stock fell by 3.9% following the announcement, closing at $25.6. The drop in stock price aligns with the company’s cautious outlook on future revenue and earnings projections. Trading at a P/E ratio of just 1.96x, the stock has caught analysts’ attention.

According to InvestingPro, there are 10+ additional investment insights available for Ventura Offshore, including detailed analysis of the company’s financial health and growth prospects.

Key Takeaways

• Ventura Offshore reported a net income of $24 million for Q2 2025.
• Adjusted revenue reached $55.4 million, with $53.2 million from operating activities.
• Stock price decreased by 3.9% post-earnings call.
• Future earnings per share (EPS) forecasts indicate potential challenges.

Company Performance

Ventura Offshore’s performance in Q2 2025 highlighted a solid net income of $24 million, supported by robust operational revenue. However, the company’s stock reacted negatively, possibly due to conservative future earnings guidance. The company operates in a competitive market, with a strong presence in Brazil and ongoing projects in Southeast Asia.

Financial Highlights

• Revenue: $55.4 million, with $53.2 million from operating activities.
• Net Income: $24 million.
• Cash Position: $46.6 million.
• Gross Interest-Bearing Debt: $173.8 million.

Outlook & Guidance

Ventura Offshore’s future guidance suggests cautious optimism. The EPS forecast for FY2025 is $0.26, with a significant drop to $0.02 in FY2026. Revenue projections also indicate a decline from $242 million in FY2025 to $211 million in FY2026. However, analyst price targets range from $3.13 to $4.01, suggesting potential upside from current levels. The company remains optimistic about securing new contracts in Brazil, with potential rig rates between $350 and $400 daily.

Executive Commentary

Guilherme, a company executive, expressed confidence in the company’s market position, stating, "The industry fundamentals remain strong, and we should see an important increase in floater demand over the next five years." He also highlighted the economic viability of Petrobras assets with oil prices at $45.

Risks and Challenges

• Delays in Final Investment Decisions (FIDs) could impact project timelines.
• Potential fluctuations in oil prices may affect profitability.
• High operating expenses, averaging $109,000 per day, pose a financial challenge.
• The competitive nature of the offshore market requires strategic positioning.

Q&A

During the earnings call, analysts inquired about the company’s investment in Managed Pressure Drilling (MPD) and potential balance sheet optimization. Executives indicated a preference for purchasing MPD equipment rather than renting, highlighting a strategic approach to future contracts.

Overall, Ventura Offshore faces a challenging outlook with cautious financial projections, despite a strong performance in the second quarter. The company’s strategic initiatives in Brazil and Southeast Asia could play a crucial role in its future growth trajectory.

Full transcript - Ventura Offshore Holding Ltd (VTURA) Q2 2025:

Guilherme, Company Spokesperson/Executive, Ventura Offshore: I’d like to thank you all for joining us today. Joining me in the call are Marcelo Issa, Ventura Offshore’s CFO and Olaf Hamri, our Financial Advisor. And we will provide you an overview of our performance between April and June of this year, an overview of the market and at the end open for questions. As in previous calls, you should see on your screen on the upper part a Q and A icon that you have to use to write your questions And I’m going to read them out loud at the end of the presentation and answer the questions. Okay?

So can you move to the next slide please? Yes, so that’s our disclaimer which you are familiar with. All right. So first off, we were very pleased to announce last quarter the commencement of operations of our managed vessel, the Atlantic Zonda on her three firm plus three optional years contract with Petrobras, keeping this rig busy until 2028 and potentially 02/1931. Also happy to see our customer Yenai exercising their first optional well in Indonesia on the contract with the SSV Victoria, also as already announced last quarter.

With this optional well, we estimate the rig to remain operating until end of this year. And if the additional remaining three optional wells are exercised as we expect, We expect the Catarina to remain busy until August 2026. Now moving to the key highlights of this quarter. In Q2, Ventura Offshore has delivered an adjusted EBITDA of $18,200,000 and a net income of $24,000,000 Also, and as you have been hearing in all our previous earnings calls, we have yet again delivered industry leading cost structure operating with an average OpEx of $109,000 per day. Excluding ancillary service for the Catarina, which are fully reimbursed by the customer with a markup margin.

We closed the quarter with a cash position of 46,600,000.0 In our backlog as at the 06/30/2025 was of $657,000,000 which includes the first of the optional wells by Yanai, which has been exercised as I mentioned, as well as the Atlantic Zone management fee. Finally, the company delivered an operational uptime of 90.9% and a financial uptime of 86% for our own rigs, which is below our targeted uptime and which is certainly not representative of our historical performance. These figures were mostly adversely affected by a BOP pool on the SSV Catarina compounded by the fact that most of the work done by the same rig, the Catarina in Q2 was remunerated 90% of the day rate as per contract. Since June, however, and to date with the fleet is back at operating at historical levels with an uptime north of 95%. Before moving on to the next slide, I wanted to provide you with an update on the economic impact of the introduction of the DS Carolina that occurred in Q1 this year.

As we have informed before, we continue to be in productive and positive discussions with our customer Petrobras, but no conclusion was reached so far. We remain confident nonetheless that the economic impact of this introduction should not be material. We expect closure of this discussion sometime in Q4 or early next year. So moving on to the next slide please. You can see our fleet status report and that provides you with a good picture of our contracting situation for all our owned and managed rigs.

The drillship, the Escarena is contracted until now with the new contract due at least 2029 with the possibility of extensions up to potentially 02/1933. The semi submerged to SSV Victoria contract until August, continuing to operate for Petrobras and Buzios field and looking at the ongoing and future contract opportunities with Petrobras. The SSV Katarina, also a semi submersible, continues to operate on its well based contract for Eni in Indonesia and have now one option well exercised by Eni, which takes operations throughout 2025. Assuming the additional three option wells are also exercised, which is our expectation and we remain quite optimistic about this, Catarina operations under this contract will be taken to August 2026. And similar to the Victoria, we’re also actively marketing the Catarina for future opportunities, mostly but not only in Southeast Asia.

Finally, and as already mentioned, our managed rig, the Atlantic Zonda, which has successfully started operations for Petrobras under its three year contract with three additional optional years. So this rig will operate until 2028 with the possibility of going to 02/1931. So again, our rigs under contract till 2026 and beyond assuming the auction wells in the Catarina are exercised. With that, I’ll hand over to Marcelo Isa, Aventura Offshore CFO, who will cover the financial highlights for our 2025. Marcelo?

Marcelo Issa, CFO, Ventura Offshore: Thank you, Guilherme, and thanks to everyone for joining Ventura’s earnings call. In Q2, Ventura generated a total adjusted revenue of $55,400,000 broken down as $53,200,000 related to the operating activities of our three owned drilling rigs and $2,200,000 in managed fees. The income statement reports $91,500,000 in revenues, but it’s important to highlight that this includes $22,600,000 from the amortization of non favorable contracts liabilities, a non cash item and $13,500,000 as reimbursable expenses. Ventura remains committed to keeping OpEx low. Total OpEx for Q2 was $32,600,000 including the ancillary services provided to ENI.

Excluding this service and deferred mobilization costs, the average OpEx amounted to $109,000 per day. The SG and A for the quarter totaled $4,500,000 in line with company expectations. As a result, adjusted EBITDA for the period stands at $18,200,000 The final free cash position in Q2 is $46,600,000 As mentioned during the last earnings call, dollars 16,000,000 from the accounts receivable that should have been paid in Q1 were collected in Q2. And also $9,500,000 held as cash collateral for a performance bond were released at the June. Regarding the $9,500,000 cash collateral, it was replaced by a counter guarantee supported by the revolving credit facility.

At the end of Q2, the RCF utilized was $28,300,000 At the beginning of Q3, these proceeds were used to pay part of the cash drawn from the RCF. Therefore, the cash draw from the RCF was reduced to $9,300,000 The $9,500,000 was presented in other current assets before it was released. There is $16,900,000 in restricted cash held on behalf of the owners of the managed vessel. The bond loan was amortized by $10,000,000 and the gross interest bearing debit in Q2 is $173,800,000 Next slide please. And now looking at the balance sheet, the accounts receivable includes $13,900,000 related to ENI contract, dollars 25,800,000.0 to Petrobras and $15,100,000 for the managed vessel with Petrobras.

CapEx invested in Q2 was $2,200,000 of which $1,400,000 related to long lead items for the new long term contract of Carolina with Petrobras. I will now hand it back to Guileherme for some market highlights. Thank you.

Guilherme, Company Spokesperson/Executive, Ventura Offshore: Thanks, Marcelo. I will now quickly cover the market conditions and then focus a bit more in Brazil. As we know, we are seeing delays in FIDs by oil companies for important projects and push execution to late twenty twenty six and 2027. In total, 2025 had 47 oil and gas offshore projects scheduled to start with some originally planned and postponed to a later date. Geopolitical uncertainties and consequent low price of oil, allied with capital discipline from our companies and issues on supply chain have impacted spending growth.

However, and as we have been saying in our previous calls, it’s our belief that the industry fundamentals remain strong and that we should see an important increase for floater demand over the next five years. In Southeast Asia particularly, demand for floaters is steady with potential to increase in the coming years. The recently announced long term ONGC tender in India, while disappointing to see the requirement for drillships only, do bring an important silver lining that it’s a new opportunity and it will likely take out some competition from that market. Similarly, PTTP is in the process of selecting a rig from Malaysia and so is Yanai, who continues its efforts to develop deepwater blocks in Indonesia, which is their energy hub in Asia. Yanai actually has tenders for the Galiga field, which is one firm plus one optional well, plus an additional long term demand for eight firm wells plus eight optional wells as rumored by the market.

These are also aimed at drillships taking again competition off the market. That leaves a few opportunities in Asia suitable for the SSV Catarina in 2026, and we are in active discussions with customers about possible future work for the rig. That includes Indonesia itself, India, Malaysia and others. But we are not limiting ourselves to look at Southeast Asia alone. Now focusing on Brazil, this country continues to be the main force and driver for the deepwater market as it always is.

And currently we have 25% of the worldwide fleet operating in Brazil. I’ll talk about the ongoing tenders in a little while, but it’s important to highlight some very good and encouraging very recent developments happening here in Brazil that, in my view, solidify the future of offshore deep and ultra deepwater drilling in Brazil. Initially, it is the successful emergency response drill performed by Petrobras in the Equatorial Margin, which is a requirement by the Brazilian environmental authorities, the IBAMA, prior to conceding a drilling license. Just two days ago on Wednesday, this exercise was concluded and involved one drillship, which is the four CODN-two, 12 vessels, three choppers and over 400 people. All accounts are that it was a big success, successful exercise and now the ball is in the Obama, the Environmental Authorities Court to evaluate the results and as we all hope issue the drilling license.

There is no predefined date for that to happen, but expectations that it could be imminent. And as you know, look at the Petrobras five year plan that we’ve discussed in previous calls, the one issued last year, November, there is a dedicated $3,000,000,000 investment plan for the Equatorial margin alone with 15 exploration wells to be drilled. Then linked to this, we have the most recent A and P bidding round. A and P is the oil and gas agency in Brazil responsible for leasing blocks. So in the most recent bidding round now in June, Petrobras and Exxon together as well as Chevron with CNBC invested heavily in acquiring blocks in this very same equatorial margin.

Remembering that Exxon is the main operator in Guyana, where they have this huge offshore development, which provides some interesting perspective on what they expect to find in this area in Brazil with the same similar geology. So Exxon and Petrobras JV acquired 10 blocks in the Equatorial margin, with Petrobras being the operator for five and Exxon for the other five. So very auspicious in my view. And Chevron, which is great to see them investing back in Brazil, acquired nine block in the Equatorial margin with CNPC as partner. And while these blocks in the Equatorial margin may have been taken most of the attention by the media in this recent A and P round, the Pelotas Basin was also an area of interest with Petrobras acquiring two blocks.

As you may recall from previous calls and probably heard in other calls, Pelotas Basin is Petrobras holds lots of hopes for the Pelotas Basin due to geological similarities with Namibia. And they have been Petrobras has been very vocal about this. And finally, Karuna and Shell and Equinor to a lesser extent, were also very active in acquiring blocks blocks in the Santos Basin. So a very interesting prospect for the Brazilian offshore drilling with a lot of focus back on exploration, which as I mentioned earlier, solidified the future of offshore deep and ultra deepwater drilling in Brazil. The third piece of news that is also important to mention, and you’ve probably read about it, is BP announcing their discovery in the Bumarangi field, a very, very promising discovery that also adds to this optimistic view that we have for the future of offshore drilling in Brazil.

With that, I move to the next slide where I can spend a minute or two looking at the active tendering opportunities in Brazil. Thank you. So basically, there are five ongoing opportunities for drilling rigs in Brazil, but not necessarily five units because the Petrobras Buoys opportunity calls for one or more. Okay. So starting from the right, we have both Shell and Equinor looking for ultra deepwater units for the Regatu Do Mato and Bacalhao fields, respectively.

Karoun is also looking at unit for their Nyon and Bauna fields. Nyon being the firm commitment, Bawuna as we understand optional. And finally, we have Petrobras. So start off with the Buzios market inquiry, which started early. This is a four year contract for one or more rigs equipped with MPD, which is a new requirement.

The previous Buzios standards did not have that requirement. And this is to start between January and February 2027. Bids were submitted now in July with several participants utilizing for the first time in a long while, the reverse auction process, as you know. This process is proceeding. We are optimistic, very optimistic about our chances, but it’s an evolving process that we expect to be finalizing early Q4.

So all going well, we expect that by October, this should be finalized, but delays are not unheard of. So it could be that it delays a bit, but current expectation is that we should see the results around October. Next one is metal. This is also a four year contract and similar to Buzios also with Petrobras having the right to early terminate after two point five years, even though I think this is highly unlikely, for one rig equipped with MPD to start between January and March 2027. Bids are due now early October and the process will also follow the reverse auction method utilized for Buzios.

We also expect potentially an additional tendering process for the pool, which is which pool is the rigs not assigned to any specific field in Petrobras. So Petrobras can take them pretty much anywhere. We estimate this one to occur as the matter of process is close to finalization, so probably end of the year or most likely early twenty twenty six. So a few opportunities happen in Brazil, which on top of the recent developments I alluded to earlier regarding the Equatorial margin, the interest in the latest A and P bidding round and the BP recent major finding Bumirangi do help paint a quite positive and optimistic picture for offshore drilling in Brazil, which local players like Ventura Offshore will certainly benefit from. Next slide, please.

Yes, that’s our last slide that closed our presentation for Q2 twenty twenty five. And I couldn’t close it without thanking our teams onshore and offshore for all the work they put day in and day out tackling the challenges they come as was the case for Q2 and overcoming them, always keeping safe operations at the top of their agendas, maintaining our industry leading cost structure and positioning the company very well for the opportunities to recontract our rigs. I also wanted to express my appreciation for our shareholders, partners and customers for their continued trust in Ventura Offshore. And again, thank you all for joining this call and for your interest in Ventura Offshore. With that, I close our presentation and I will open for questions, remembering that you have an icon on your screen where you can write the questions and I will read them.

Okay. So just give you a couple of minutes and I’ll start reading the questions. We we already have a couple. Okay. So starting first question that I have here.

Can you give some color on when you expect the Buzios and Meru tenders to complete? I think you can save I mean, I think I already mentioned this. So Buzios expectations around October with a very small chance of being earlier than that, though I wouldn’t bet on it, and a very small chance of delay. So I think October is your best bet is your best bet here. For metal, so bids are due now in early October.

And if you look at how long Buzios is taking, you have to add at least a couple of months to that. So then we’re talking December, January before a result. But again, the process hasn’t even started. Okay? But if you look at Buzios as your benchmark for the metal process, then we should be talking about probably January before it’s closed.

If you were to get a long term award with Victoria, you talk of potential balance sheet optimization. Can you elaborate on what an optimal balance sheet looks like?

Marcelo Issa, CFO, Ventura Offshore: Well, there is not much that we can say now. What we can say is we are going to have a contract, a four year contract that should begin in January. And and this contract, it’s requires MPD and we need to invest in an MPD for Victoria. That’s what we can say now.

Guilherme, Company Spokesperson/Executive, Ventura Offshore: Yes. I think to add to that, Frederica. So we will be looking at the refinancing, right? Once we have a new contract for the Victoria, I think next step we’ll be looking at refinancing, right? We can look at the refinancing via probably upsizing of our RCF and also by bond.

And ID is, of course, cover the CapEx that we’ll need because there will be a CapEx investment required for the Victoria, as Marcel indicated. I don’t know if that answer your question. If not, please follow-up here on the Q and A session. You mentioned in today’s report that you are looking work for the country in the outside E and I. Is there any chance you will take the rig to Brazil?

The challenge is, of course, the CapEx to bring the rig into Brazil, right? It’s a barrier. It’s a big barrier, entry barrier that we have. Of course, the CapEx to bring the Catarina to Brazil would be significantly lower than any other rig because this rig was built with Petrobras specs in mind, but the Petrobras specs of twelve years ago. So those facts have evolved.

So we would have to spend some money on the rig, but of course it is a possibility. We don’t close the door to bring it bringing her back to Brazil. Okay. The next question. Do you expect Brazil to become a market which requires MPD for all work given that the two recent tenders requesting one?

Should the Victoria win the contract with Petrobras, would you purchase or rent an MPD? What would be the cost of either option? So I don’t think it’s going to be a requirement for every new rig for MPD. It is for Buzios, okay, and for Mero. Mero, the two rigs currently operating Mero already have MPD.

The current the Buzios currently operating in Buzios, half of them have MPD, half do not. But going forward, it will be a requirement for Buzios, but not necessarily for all rigs in Brazil operating for Petrobras. It really depends on the field that the rigs are going to be drilling. So we have if the pool tender, for instance, materializes, which is our expectation, there is a very good chance that there’s not going to be a need for MPD. At least maybe what they can do is, as they have done in the past, is have two batches, one requiring MPD, the other not requiring MPD.

I don’t think we’re at the point that all rigs in Brazil will need MPD. But for Buzios, that’s a fact and for Mero as well. Okay. You asked about renting or purchasing, we will most likely purchase. We think it makes more sense.

And the cost to purchase an MPD, I’ll give you a ballpark number. It’s about 25. I mean, to purchase and install. Okay? Between you have to put all your piping and then you have to to buy the kit and install it.

So $25,000,000 is a good ballpark number. Of course, it’s it’s gonna vary depending on who use your your your provider of of the NPD kit. Next question. Do you expect as we SPS in Victoria and Catarina once their current contracts expire? Yes.

So the way we operate is we try to to make sure that the SPSs are done in between contracts. So you don’t have to stop operations while in the course of a contract. Right? So you don’t have some lost time. So in between contracts, that’s when we do the SPS and that would be the plan.

Next question. Will the Carolina BS to add an MPD? No. The current contract, and that’s they’re going actually going back to the previous question, the Carolina was recently contracted to Sepia Tapu Field, and there was no requirement for MPD. So we have not added an empty to that rig.

And of course, if Petrobras is interested in installing an MPD, we can have a commercial discussion with them, but we are under no obligation of installing an MPD and no intent of doing it for the time being. Next question. What level of repricing daily rates do you anticipate for next year? That’s a difficult question to answer. If you look at the most recent the most recent tenders already awarded by our contracts, more recently awarded by Petrobras, and I’m assuming here you’re asking you’re considering Brazil in your question.

So the numbers varied between three fifty and low four hundreds depending if the rig is single activity or dual activity. I believe that for the next year, we might see that number reducing a bit, but by not much. That would be my my my expectation, but it’s yeah. We have to wait and see the results of Buzios and the results of Merrill that you’re gonna give us a a better indication. Okay.

Next question. If the Victoria is awarded under the Buzios standard, what is the contract preparation and MPD CapEx? So the MPD CapEx, I already mentioned. If you’re talking about contract preparation, I’m not sure if you’re talking about guidance on the CapEx, the whole CapEx. If it is, I think, I mean, I always I think at this moment, I would refer you what some analysts are estimating because, I mean, and I already alluded to us considering refinancing of the balance sheet in connection with a new contract if we get that.

Right? And at that moment, we will be providing more detailed guidance on CapEx. So for the time being, if your question relates to CapEx is not very clear, I would suggest you refer to the analysts because their numbers seem to be in the ballpark number accurate. Next question is the exact same one. Can you talk about CapEx requirements in 2026?

So again, I refer you guys to the analyst numbers. And again, in the hopes that we get a contract for the Victoria, we will go to and as we go to refinancing, we will be providing more detailed guidance. Are you already in dialogue with E and I on the remaining options? We are always in dialogue with E and I since we started operating. As I mentioned, I am quite positive about the option wells being exercised.

However, contractually, NI can exercise those option wells up to sixty days prior to contract end. Okay? So they are under no obligation to exercise them now. They can wait a bit more. But I remain positive that those option wells will be exercised.

Yes, we are I was actually in Indonesia last week. Actually, I arrived this week in discussions with you and I. So we keep our relationship very close and we keep a dialogue open. And I’m optimistic about those wells being exercised, those optional wells being exercised. What is actually going on at the moment with the Buzios tender?

Is the auction still running with price to be lowered by participants? Or has that final okay. Or has that final stage finished and has moved to discussion with Petrobras and the leading parties from the auction. So the tendering is the the the lowering of of prices if you will. The reverse auction is over.

It’s in the second phase now. The the reverse auction is a one day process. Actually, not even a one day. It’s an hour, couple hours process. And after that, move to the second phase.

So it’s now in the second phase. Can you potentially beat the metal tender being active in Buzios? Until you have a contract signed, you can bid whatever you want. And the Petrobras rules are that if you bid a rig in two tenders simultaneously, the preference is given to the one you bid earlier. Okay?

Next question. Is the Buzios auction process transparent or the prices offered by different participants are only useful to the other participants or nothing’s transparent even to participants? So the process is transparent. It’s not public. Okay.

That’s why it’s only limited information I can provide you. But it is transparent in the sense that we participated, right, as you know, and we could see the different prices by the different participants. And we could see as each participant lowered their prices. What we did not know is who was who. Okay?

So they had bidder number one, bidder number two, bidder number three. But you could follow the process live as bidder number two reduced their rate by two k. And as bidder number five, reduce the rate by 50 k. You that you could follow during the process, but you do not know who’s who. Okay.

Next question. Marcela, I think this one is for you. What was the reason of accounts payable increasing from 15.9 in March 25 to 40.1 in June 25 and the reduction other current liabilities in this last quarter.

Marcelo Issa, CFO, Ventura Offshore: Okay. Well, regarding the accounts payable, increase was caused by the increase of the restricted cash $8,000,000 and the accounts receivable related to the managed vessel $15,000,000 This is the corresponding entry that we made in accounts payable. And regarding the other current liabilities, basically, there we have fifth $5,700,000 related deferred mob fee and $7,000,000 related to the liability of the Catarina property split that we removed from December because of the settlement. Hope this clarify. If not, please send me a new question.

Guilherme, Company Spokesperson/Executive, Ventura Offshore: Thanks Marcelo. Okay. Next question regarding the timeline of CapEx to be done, specifically the Carolina CapEx. What is the expectation? Any relevant cash needs already in 2025, or should we expect a higher need only in 2026 transition quarter for the Carolina?

So there are always some CapEx requirements for the long lead items that we have to incur this year, but the vast majority will occur in 2026 as we approach out of service period. Regarding the time, we estimate around sixty days for out of service and contract preparation. So it’s SPS plus contract preparation. Slide. At at next then, And We had we’ll a malfunction on the upper blind share ramp.

And as a consequence, we had to pull the BOP to fix it. That was done. The upper blind share ramp was fixed. But then because under this contract, and it is very common, you hop the BOP from well to well, the BOP had been down for a very long time. Every time you pull your BOP, you have your in between well BOP maintenance and the scope is longer or shorter depending on how long the BOP had been wet or had been down.

So in this case, we had a lot of preventive maintenance that had to occur because we had pulled the BOP. That was the major event. We also had one event on the Victoria where we had to recover the DHA. And yes, these were the two main events that justify the lower financial uptime than what we usually present. Also bear in mind, that the Catarina, because of the operations and nature of the operations that we carried out, we were remunerated 90% for most of the quarter instead of 100%.

Next question is what’s the average cost of an SPS? I already answered that referring to some numbers indicated by analysts and saying that we will have more detailed guidance once we start our refinancing. What’s the max idle time between contracts that you would consider cold or warm stacking your rigs? In other words, should you not win or metal, how should you think about Victoria employment when current the current contract expires in June? In case we don’t win a contract or the Buzios contract, we have the MER opportunity and then we have the pool opportunity.

To answer your question, it’s not about time, but it’s about when is the next tender, Okay. And how aggressive we would be to avoid keeping the rig warm or cold stacked. Okay. I think it’s different from companies that have rigs in various parts of the world where there’s not a flow of tenders happening like we do in Brazil. So the answer to your question is not about time, but it’s about when is the next tender coming.

Okay. And again, we as I mentioned, we remain optimistic that between Buzios, Meru, the pool, we won’t have to have a discussion about cold or warm stacking our rigs. Okay. At what cash position level do you feel comfortable operating? What is your target net leverage?

Marcelo Issa, CFO, Ventura Offshore: Well, we are comfortable with with a liquidity of $15,000,000. This is a good cash position for us.

Guilherme, Company Spokesperson/Executive, Ventura Offshore: Thanks. So last question, Petrobras is striking a more cautious tone in recent references to CapEx. Do you maintain the view that you see a flattish Petrobras rig counts for next years or has a downside risk increased on your view? You’re right. Petrobras is indeed more cautious than every time you hear Petrobras CEO speaking, she has changed the tone to a certain extent, and she she’s saying that she counts on the on the suppliers to to assist Petrobras on that.

However, that being said, bear in mind that the economic resilience for Petrobras is pretty impressive where 98% of Petrobras 98% of Petrobras assets, it’s economic viable with the pair with 45. So I do not see that necessarily impacting the rig count for Petrobras. The rig count that Petrobras has announced in their previous five year plan between 25 to 30, I think there was an execution risk on that. And as we start to see, the Buzios tender, metal, potentially the pool tender, I think the requirement is going to remain at those levels. Mostly if the drilling license for the Equatorial Margin is indeed issued by the environmental authorities.

So it is true that Petrobras has taken a more cautious approach, but I’m not I’m not I do not think this is gonna impact very much the rig count that they need to deliver on on their program and and on their their five year plan. Okay. So that was the last question. I wanted to thank you all once again for attending our earnings call. If you want any follow-up on these questions, feel free to reach out directly to us, and I’ll be happy to answer any follow-up questions.

Thank you, and I wanna wish you all a good day. See you in three months.

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