Thank you, Luis. As-salamu alaykum and good afternoon, everyone.

Welcome to Arabian Drilling's FY 2025 earnings call. Thank you for joining us today, especially amid the current regional events.

We appreciate your time and continued interest in Arabian Drilling. Please be aware that this presentation contains forward-looking statements.

We encourage you to review the accompanying disclaimer in this document for further information. Before we begin, I'm pleased to introduce our presenters for this session.

As you may know, we currently welcomed Engineer Fahad Al-Bani, who joined Arabian Drilling as Chief Executive Officer on February 10th. Fahd brings a wealth of leadership experience in drilling, operational excellence, and transformation, and we are delighted to have him at the helm as we enter this phase of recovery and growth.

Also with us is Farid Mustafayev, our Chief Financial Officer. Now Fahd will walk you through the financial and operational highlights.

After that, Farid will provide a detailed review of our full-year and quarterly financial results. With that, I'm pleased to hand over to Fahd.

Thank you, Bassem. As-salamu alaykum and good afternoon, and thank you for your participation on today's call.

I am honored to be joining Arabian Drilling as a Chief Executive Officer at this important time. I am grateful to the Board of Directors for their confidence and for their support throughout this transitionary phase.

Arabian Drilling is not new to me. I had the pleasure of working closely with the company in the awarding of its 13 unconventional rigs and even before.

Arabian Drilling is the Saudi drilling champion and a key enabler of the national energy vision. I would like to assure everyone that this was a carefully planned transition by the Board of Directors.

A smooth transition is underway and business continuity is granted. Now, let me begin today presentation with a brief overview of our performance for the full year of 2025.

Despite a challenging environment, Arabian Drilling delivered resilient results. Revenue closed at 3.4 billion Saudi riyals, reflecting a modest 5.1% year-on-year decline.

This was mainly driven by reduced offshore and land activity, partially offset by a strong increase in our unconventional operation. The change in activity mix impacted profitability.

EBITDA declined to 1.2 billion and adjusted net income reached 39 million. Operating cash flow softened in line with EBITDA, yet we preserved a healthy 2 times net debt-to-EBITDA ratio, reflecting our strong balance sheet discipline.

While 2025 was a difficult year from a financial perspective, we think that we have reached the bottom of the cycle. We enter 2026 with an improved visibility and positive outlook, supported by expectations of recovery and more stable operating landscape.

Looking at our quarterly performance, revenue declined only 1.3%, fully in line with our guidance. EBITDA margin came in at 32%, reflecting one-off impact related to the return of a chartered rig and associated demobilization costs.

The combination of low rig utilization and these exceptional items resulted in an adjusted net loss of 34 million for the quarter. Cash flow from operations and net debt level remained stable and broadly unchanged.

Our backlog reached in an all-time high of 12.4 billion, representing 20% increase compared to the same period last year. This reflects the strength of our customer relationship and the long-term visibility of our portfolio.

Utilization increased slightly to 75%, driven by the return of a chartered rig. We closed the quarter with 45 active rigs, consistent with the previous quarter: 37 land rigs, six offshore rigs, and two service vessels.

Looking ahead, utilization is set to improve meaningfully. Offshore utilization is expected to reach 100% early in the second quarter and total utilization is projected to rise slightly above 80% by the end of Q1.

This brings me to the final point on this slide and one of the key highlights of today call. Our first international contract in the GCC commenced earlier this week, marking a significant milestone for Arabian Drilling.

In addition, two of the four recalled rigs have already started operations during the first two months of Q1. The third rig starting operations today, and the fourth is scheduled to begin early April.

We are very pleased and proud to see our backlog reach an all-time record of 12.4 billion, representing 20% year-on-year growth. This reflects the strength of our client relationship and the high level of our trust our customers place on us.

With this backlog, our contract duration has increased to 2.6 years and our book-to-bill ratio now stands at 3.6-fold. Utilization rates have improved slightly to 75% with no new suspensions in quarter four, and we do not anticipate any suspensions in Q1 2026.

Utilization is expected to begin recovering in Q1 2026, reaching 81.7% and further increasing to 83% in early Q2 2026, supported by the commencement of our first international contract and confirmed rig reactivations. As a result of these rig resumptions, the total number of inactive rigs is expected to reduce to 10 by early Q2, all of which will be land rigs.

Now, I will move on to the contract renewal completed in 2025 and provide you with an outlook on the 2026 contract renewals. 2025 was an exceptional year for strengthening our commercial foundation.

I am pleased to report that we successfully renewed all the 24 rigs contracts scheduled to expire during 2025. This 100% renewal rate demonstrates the continued demand for our service thanks to our ability to deliver world-class performance and service quality.

Notably, 11 LSTK gas rigs were extended for one year, as announced in August 2025. These rigs are part of the 21 contracts scheduled for renewal and tendering in 2026.

We are proud for securing a total of 3.4 billion in rig extension for six land and one offshore rigs announced in Q4 2025 and earlier this year. These extensions, which added 55 active rig years to our backlog, are implemented on contract expiration, subject to agreement with the client.

We expect that 2026 renewal discussions to follow the same constructive momentum we saw this year. Beyond 2026, the number of contracts expiring steadily decline, giving us more room to focus on optimizing our existing fleet and pursuing selective growth opportunities.

I'll now hand over to Farid, who will walk you through the financial results in a more details.

Thank you, Fahad. As-salamu alaykum and good afternoon to everyone.

Starting with our year-on-year financial performance. For the year, revenue came in at 3.4 billion, representing a 5.1% decline year-on-year.

This performance reflects the impact of rig suspensions, which primarily affected the offshore and conventional land segments, partially offset by a full-year strong activity in our unconventional operations. EBITDA closed at 1.2 billion, down 17.8% versus last year.

This decline was primarily driven by a shift in our activity mix, particularly lower offshore contributions, further hindered by the discounted dayrates on certain contracts. To give more context on the magnitude of the mix change, offshore revenue declined by approximately 480 million and the land rigs suspensions added another 250 million to the reduction.

This reduction were largely offset by unconventional revenue going up by 540 million. Despite this significant shift in mix throughout the year, we maintained a solid EBITDA margin above 36%.

Adjusted net income fell to 39 million, a 90.8% decrease year-on-year. This reflects a combined effect on lower EBITDA and higher depreciation associated with the deployment of unconventional rigs.

On other important financial metrics, CapEx were down 61%, reflecting the absence of significant investments in unconventional rigs done in 2024. Net debt remained unchanged at 2.4 billion, effectively stable and within our comfort range.

I'll provide more detail on this later in the presentation. Operating cash flow slightly below 1.2 billion, declined 17.1%, consistent with the drop in EBITDA.

Let's now turn to our quarter-on-quarter performance. Q4 revenue declined marginally by 1.3% with the full quarter impact from the rigs suspended in Q3, partially offset by stronger rig move activity.

Number of active rigs remained unchanged during the quarter at 45. EBITDA of 263 million or 32% was down 10% quarter-on-quarter, primarily due to one-off demobilization costs related to returned chartered offshore rig and reactivation costs for rigs commencing operations in Q1 2026.

Adjusted net loss was 34 million this quarter, compared to 9 million in the prior quarter. This increase is entirely driven by the one-off nonrecurring items I just outlined.

Importantly, we don't expect any demobilization expenses in Q1. We will, however, incur some reactivation costs as rigs return to service, but in Q1, this will be supported by the additional revenue generated by the recalled rigs.

CapEx increase in Q4 was driven by the reactivation activities for the rigs resuming operation in Q1. Net debt was down on stronger cash thanks to high customer collections in Q4.

Leverage ratio remained stable at 2, and operating cash flow in line with EBITDA performance. Let's now turn to our segment performance across land and offshore operations.

Starting with the chart on the left. For the full year 2025, our revenue mix shifted significantly compared to 2024.

The land segment increased from 59% to 71%, while offshore declined from 41% to 29%. This change in mix, together with a 5% reduction in total revenue, was the primary driver of the EBITDA margin contraction from 42% to 36%.

Quarter-on-quarter, the mix remained broadly stable. Moving to the chart on the right and our adjusted gross profit performance.

Year-on-year, land revenues grew 13.8%, driven by full-year unconventional activity and higher rig moves. Adjusted gross profit declined by 100 basis points to 10.7%.

This was largely due to four additional conventional rig suspensions happened in Q2 and Q3. Quarter-on-quarter movements were relatively limited, though Q3 and Q4 profitability still carried the weight of the idle rigs from both 2024 and 2025.

The reactivation of two land rigs in Q1 2026, alongside other measures underway, is going to help restore land margin momentum. Offshore revenue decreased 32.5% year-over-year, primarily due to lower utilization and, to a lesser extent, discounted dayrates.

Adjusted gross profit declined from 41.5% to 22.7%, reflecting this significant drop in activity. Quarter-on-quarter revenue was broadly unchanged, but profitability was affected by one-off demobilization charges in Q4.

With offshore utilization expected to reach 100% by early Q2, we see a constructive outlook for margin recovery in 2026. Now, let's bridge the movement in net income from Q3 to Q4.

The largest two components impacted was a lower revenue, 11 million, and the demobilization expenses around 20 million related to return of chartered offshore rig. There was minor positive impact from lower taxes due to net loss position and minor increase in depreciation quarter-on-quarter.

Let's now take a closer look at the key movements impacting our cash position this quarter. We closed Q4 and 2025 with cash on hand at robust 595 million.

It was 14 million above the cash balance year-end 2024, despite all the challenges throughout the year. This was achieved thanks to our strong focus on the working capital management.

We are very pleased with the quarterly improvements in working capital. This focus drove meaningful reduction in accounts receivable through solid Q4 collections.

Additionally, the inventory levels were brought down to their lowest point in 2025. Turning to CapEx, we spent 162 million in Q4, with roughly half directed toward reactivation activities for the recalled rigs.

All other movements this quarter were routine quarterly items with nothing specific to highlight. Let me now wrap up the financial section with a look at our debt profile.

Net debt remains stable at 2.4 billion, with the quarter-on-quarter improvements reflecting the higher cash on hand at the end of Q4. Our net debt-to-EBITDA ratio is maintained at 2 times, comfortably within our target range.

We expect it to remain around 2 times in the coming quarters. Importantly, given the current and expected level of activity, we have no plans to assume additional debt.

At the same time, our existing leverage position provides strategic flexibility to pursue selective, high-margin growth opportunities. That concludes the financial update.

I will now hand over back to Fahd.

Thank you, Farid. Let me now turn to our outlook for the first quarter of 2026.

On revenue, we expect a slight improvement compared to quarter four 2025. This is driven by the rigs that have been brought back into operation.

However, because currently these rigs are [unclear] during the quarter rather than contributing for full [unclear] increase [unclear] as we [unclear] Fahd,

to normalize [unclear] On CapEx, our full-year projection of around 750 million, which is broadly in line with 2025. This stability is intentional.

Our focus in 2026 is on optimizing and sustaining our existing fleet and making more efficient use of the assets already in operation. At the same time, CapEx plans support our proactive reactivation efforts, allocating the necessary CapEx to return rigs to operation as they are recalled during the year.

Finally, as we conclude today presentation, I would like to share with a few closing thoughts. 2026 will be a year of recovery for us, supported by the rigs coming back into operation.

The full benefit of this resumption will really start to show from the second quarter onward. We are entering the year confident in our ability to renew the contracts due to expire in 2026.

Securing these renewal will be also an additional driver for improving utilization, especially in the second half of the year. Operational excellence and safety will remain at the center of everything we do.

Maintaining our customer trust is critical and we will continue delivering the performance they expect from us. With all of the above and financial strength of our balance sheet, I am confident we will be positioned well to materialize our long-time expansion plans locally and internationally.

With this, we end our presentation and I will now pass it over to Luis to open the floor for questions and answer.

Good day. Hopefully you can hear me.

A couple of questions from my side, probably starting with the current situation and whether you experience any disruption already for any of the rigs, if you can comment on that. Second question will be around your disclosure yesterday.

You mentioned that one of the land rigs which were initially recalled was then withdrawn. Can you comment more on that and whether you expect more recalls over the course of the year?

Finally, you mentioned reactivation cost in first quarter. Can you give us a bit of color on how much should we account for?

Thank you.

Hello.

Go ahead. Sorry.

Can you hear?

Did you hear my first part? Thank you, Anna, for the question.

Can you hear me now?

Let me start with the second question on the recalled rigs. Indeed, we had originally five five rigs recalled: three land and two offshore.

Eventually one of the land rigs was canceled, now the other four rigs are planned to restart. Three of them started, as communicated already, and one offshore rigs will start early in Q2.

The land rig which was called back eventually, at the moment, we have plans for that rig, we have number of tenders, we're planning to reactivate that rig, and, in our plans, it will start sometime in H2. On the third question, you ask about reactivation CapEx.

We spend around 70 million in Q4 for reactivation, and we've already spent about 50 million in Q1.

Okay. For your first question regarding the risk, the risk in our rigs, like any other land or offshore, are the same as any other area.

Until now, alhamdulillah, everything is running fine. We don't have any interruption for our operation.

Thank you very much. Just a quick follow-up regarding this land rig which was withdrawn.

What was the reason for that? Was it just the demand from the client, or that there was any issues?

No, this is a demand from our client and this is something normal. It happens from time to time.

Thank you.

Hello. Good afternoon.

Thanks for taking my question. Hope you're well and safe.

First question, if I may, you've pointed that 2026 should be a better year than 2025 with more visibility. How should we think about the margin inflection that you mentioned on the initial speech?

Is that a relevant inflection that you see throughout this year? Then, one for you, Fahad.

Welcome and good luck. Just curious, what's your main priority as you assume your new position as the CEO?

Thank you.

Thank you, Ricardo, for asking. I will start with the second part.

My main priority really is to increase the income and revenue for our company while delivering the best performance for our client and safety. Okay?

All these things really we are concentrating on it, and we want, inshallah, to first of all, as 2026, we are forecasting a good year and a year of recovery. We started receiving recalls for the rigs, as we mentioned in our presentation: two offshore and two onshore now already started and another rig is going to start in the first month of second quarter.

All these positive indication, inshallah, for 2026. This is what we are focusing in three things as we speak.

To increase the utilization of our rigs. Second, to expand in our international market.

We are looking to expand in international market. Third one, actually, is to concentrate and focusing and lower our spending.

These three factors is our main focus for the 2026.

I think with this, Fahd already answered the first question on how we expect our margins to recover in 2026. Basically, Ricardo, it will come from those points.

Obviously, from utilization. Our offshore utilization will reach 100% early April, and that will drive substantially margins improvement, particularly in offshore segment.

All the actions we took already in structural costs, SG&A in 2025, we had about 30 million savings in 2025, but the full-year savings we will realize in 2026. We estimate that at the level of 60 million.

Obviously, the other areas where we're focusing and prioritizing now is a process improvements and efficiency in managing our operating costs. This covers many aspects.

It's like efficiency in rig moves, in looking at the cost of ownership versus outsourcing, and many other aspects. These areas where we'll see improvements in margins in 2026.

Thank you. If I may, a follow-up.

When you talk about the international operations, is that something that you're looking only organically or is M&A as a potential option?

We are looking at all options. Any option or opportunity, we look at it in Arabian Drilling as opportunity and what is the income and the benefit for Arabian Drilling.

Regardless, is it local or international, we don't have any restriction to go and work internationally anywhere.

Okay. Thank you very much.

Thank you.

Thank you very much. I have a couple of questions.

One is in terms of the outlook for 2026. You obviously have provided the revenue guidance for the first quarter.

Again, looking for full year 2026, if I look at the consensus currently, it is at 3.7 billion of revenue and 1.47 billion of EBITDA. Given we have good amount of visibility in terms of contracts that has already been awarded, etc., how comfortable are you with these numbers currently?

Second question is on the onshore side, we have 10 rigs which is not working at the moment. There are various opportunities you mentioned both domestically as well as internationally.

End of 2026, how should we think about that, assuming all the rigs which are coming up for renewals this year would get renewed, then end of year, how many rigs would effectively be working? Thank you.

Hi, Abhishek. Thanks for the question.

For the first question on 2026 outlook, as you outlined, yeah, we gave only Q1 guidance, and that is done intentionally, and since early 2025, we moved to quarterly guidance. It's all due to these uncertainties in the long-term outlook, right?

That's why we prefer to comment only on our quarterly outlook. Q1, you can see that it will be in the same range activity as Q4 2025.

Going forward, with addition of offshore and land rigs, probably you can estimate or model the increase for the full year. At this point of time, we will not give you a particular number.

Maybe after couple of quarters, when we see more visibility, more transparency, then we can switch to a annual guidance, yeah. For

the second part, for the 10 rigs 10 land rigs, still we we submit in many tenders now and we are working on them, and we are very optimistic because, yani, the market start recalling many rigs and land and offshore, we are very optimistic majority of those rigs, it will be back to operation in 2026.

Okay. That's very good to hear.

Just maybe, one follow-up on the answer to the first question. In terms of margins, if we look at it on the offshore side, what is the aim in terms of getting to the margins, given where the dayrates have kind of come off from the highs?

Most of it is already in the backlog. What's the target for margins recovery on the offshore side of things, given we have a lot of visibility there?

I understand on onshore, there are moving parts. You still have rigs working, etc., and you don't know exactly when you are going to deploy some of the other rigs which is under bid, etc.

On the offshore, what should be the margin we should aim at by end of this year if we can provide some color there?

Yeah. What I can tell on offshore margins, it will recover, especially from Q2.

It will be 100% utilized. Last time we had 100% utilization in offshore, it was H1 2024.

Basically, you can take that as a benchmark for modeling for H2 2026. The only one point to keep in mind that we provided some discounts and margins will not go back to the level in offshore as it was pre-suspension, yeah.

Based on these two aspects, you can model some margins for 2026, Abhishek.

All right. In terms of the average dayrate for the offshore fleet, where we stand now?

Average dayrate for offshore is in the high 80s.

All right. Thank you very much.

Hi, thanks for taking the call. A couple of quick questions.

Could you just tell us how the tendering environment is at the minute? I think SBL commented on a V-shaped recovery in the Saudi rig market.

Just wondered, what tenders are currently out? What tenders are you seeing and how much demand is there?

That's obviously notwithstanding the current situation, just in terms of where we were before the recent attacks. That's the first question.

Then how should we think about dividends going forward? Thanks.

Here we have many tenders, some of them local and some of them international, we are contributing to both, not just only tenders in Saudi Arabia. We are submitting tenders even outside Saudi Arabia in the GCC.

Tenders in general, we are receiving many tenders, which is something positive for 2026.

Your question on dividends basically, yeah, so as it was announced yesterday, based on the recommendation of the Board of Directors to General Assembly, for 2025, there will be no dividends paid, and Board will relook at this at the upcoming quarters if the overall market conditions would improve. Main reason for that is preserving cash for our local and international expansion plans.

Thanks.

I think. We

Yes, thank you so much. Looking at the outlook for revenue, I understand the point that it's difficult to forecast, but taking into account the current contractual status of the assets, assuming nothing surprising happens over the year, how should we think about the rig move and mobilization revenue?

What's the outlook there? Can I just can you ask us to remind us actually whether the rig move revenue, is it only Does it only cover your own assets or, it also provides services to other rigs as well?

Whether there is a any granularity you could share with us in terms of outlook for revenue for those two lines? That's my first question.

Secondly, on CapEx guidance, could you give us some, some details of what that CapEx would include this year? Thank you.

Hi, Eldar. Thanks for the question.

On rig moves and mobilization, I think we need to distinguish these two things, yeah. One is mobilization is applied only when we mobilize a new rig into the country, yeah.

This is kind of exceptional events whenever that happens based on the project contracts. Rig moves happening on a monthly basis, yeah, and they apply only to land rigs.

Basically, during that rig moves, there is a lump sum paid to us by customers, and that is our revenue. Basically, how quick, how more efficient we move rigs from one pad to another pad, that helps us with the profitability on particular rig moves, yeah.

In many cases, the rig moves are ordinary things during a month. We get about 20 rig moves, let's say, in average for our 37 active land rigs.

Some of them are short distance, and some of them medium distance, let's say, and rarely, once or twice a year, we have a long-distance rig move, which happened in Q4, and that positively impacted our revenue, offsetting the decline in revenue from suspensions, basically. That on rig moves.

I'm not sure if this answers your question, Eldar,

or you want- Yeah. Thank you.

Just to understand better, given that there have been quite a lot of reactivations, I think 10, 15 onshore rigs have been reactivated, do you expect more activity in 2026 on that front?

Yes, in 2026, we are expecting more. As I mentioned before, we are contributing to many tenders now, we are expecting more rigs to be recalled and more rigs in the future and in the near future in 2026.

Can I ask you also to remind us, there was a very strong revenue booked in 1Q 2025 for rig moves revenue. What was that exactly?

Why it was so strong?

That's exactly what I mentioned earlier. Rarely, once or twice a year, we have a long-distance rig move.

That was particularly, probably, the longest in the last couple of years move. It happened in Q1 2025, and then we had another long rig move in Q4 2025, which was not to the same extent, but it was also qualified as a long rig move, yeah.

That's clear. Sorry, I missed it.

Thank you so much. On CapEx, please.

CapEx question for 2025?

What it includes, that number, basically, what kind of investments?

2026 outlook or for 2025? Which-

Yeah, 2026, please.

As communicated in outlook, is 750 million. About 150 million of that relates to rigs reactivation and the remaining is just normal annual sustaining CapEx.

That's clear. Thank you so much.

is my voice clear?

Yes, please go ahead. Yes, I'm Faras Al-Dahami from Sabeen Investment Company.

Congratulations on the new renewals. May I ask that, mashallah, the management expects offshore utilization to reach 100% by Q2.

Shall we expect in terms of expansion any additional rigs to be added to the fleet in the short or medium term?

Thank you, Fares, for the question. Yes, as what we mentioned before, our offshore fleet will be 100% utilized, but our focus now actually is to utilize our 10 rigs, that land rigs.

We need to return them to increase the operational efficiency and also the utilization of the rigs. This is what is our focus.

If there is any opportunity, we are open for any opportunity and participation in tenders. The good news really, tenders participation is growing in the first quarter of 2026.

However, we have a good actually financial income and we have, as what Farid mentioned before, we have more than half a billion actually cash. We can spend it in expansion and this is part of our strategy to expand actually locally and internationally.

That's why also we did not distribute dividends, because part of our strategy is to expand and grow actually. Since 2021 until now, we are growing in our assets, if you look at it.

We are growing very good percentage actually. We spend it in growing an asset, which is part of our strategy to grow.

Great. Thank you for your answers.

Thank you, Fares.

Thank you. I have a quick follow-up around the idled rigs.

I think you impaired three. What is the plan for those, if you can comment?

Thank you.

As what we mentioned before, Anna, the plan for the 10 rigs, we are submitting many tenders now actually local and outside. Actually, we have 10 rigs: five suspended, this might be recalled from, yani, within current fleet locally, and we have five rigs without contract.

Those actually five rigs without contract, we are looking and we are working hard to have a contract for them. For the suspended rigs, still we are thinking that it might be recalled and go back to business in the near future.

Just to follow up

on

Anna's

question, for those three rigs which were impaired, yes, for exactly the same plan as mentioned by Fahd. We still plan to deploy them in different markets, yeah.

Understood. Thank you.

Sorry. Apologies.

Can I just ask you to clarify, I think I've seen last year that at least two of your offshore rigs which were suspended, they received long-term extensions seemingly by 10 years each. Is my understanding correct that the rig which is going to be deployed in the UAE is still formerly contracted by suspended rig in Saudi Arabia and whether that rig has received that 10-year extension?

Thank you.

Yes, the rig which is going to work in GCC, it is considered as suspended rigs in Aramco, and we have permission from our client to that rig participate in GCC tender, yeah.

Thank you.

In this particular case, all these three rigs were idle, out of contract for some time, and this was the trigger. When such triggers occur, we must apply updated assumptions regarding dayrates, utilization, reactivation CapEx, long-term deployment prospects to determine whether the book value is still recoverable.

We updated our models, including two approaches: one is value in use and the second is resale value. Both models showed that the recoverable amount was below the rig's net book value, so that resulted in impairment requirement of 114 million.

What was the second question, sorry?

Demobilization costs goes directly to P&L, right, it's expenses. Reactivation, majority of reactivation costs, it's a CapEx, but there are certain costs that is going to P&L right away.

Let's say when we hire employees, their first couple of months they go through trainings, doing certification. They're not part of the project's expenses, so that's why those costs they impact P&L directly.

Thank you again. Just coming back to the land rig question and in relation to the impairment, I recall that some of the offshore rigs, the dayrate for them have been revised.

Has the same happened to the land rigs, by the way, and whether the lower dayrate outlook for land rigs has also contributed to the results of the impairment test? Thank you.

Eldar, we do impairment test for all our rigs, right? Particularly those which are suspended and terminated, like no contract.

Only these three idle land rigs resulted in that the carrying value is higher than recoverable. All other rigs showed that there is no impairment required.

Understood. Is it also correct to think that the land rigs, some of them are generating lower revenue on a dayrate basis versus three years ago?

That's not the only factor, yeah, there are many, many different factors which you take into impairment consideration. Revenue dayrate is just one of them, right?

I cannot see the connection, to be honest, right? The dayrates on land rigs, we didn't have major discounts, by the way.

The discount that happened during 2025, that applied to a selected on the contracts in offshore. There are some dayrate discounts related to land rigs starting from 2026, but they're not substantial to have any material impact on any of our assumptions.

I see. This was my question, exactly.

Thank you. Thank you so much.

Other than these two, offshore rigs, when they're stacked, they don't have any cash costs, yeah, except obviously non-cash, which is the major one, is the depreciation. On land rigs otherwise, just to clarify further, you can cold stack them and in that case, it's really just the stack yard will be the main cost in those cases.

Yes, thank you very much, Luis, and thank you, everyone, for joining us today. Stay safe and have a great day.

Thank you, Luis.