NESR - Earnings call transcript Q3 2021 | National Energy Services Reunited Corp.

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Operator

00:03 Greetings. Welcome to the NESR Q3 Earnings Call. At this time, all participants are in a listen-only mode. [Operator Instructions] Please note this conference is being recorded. 00:24 I will now turn the conference over to your host, Chris Boone, Chief Financial Officer. you. Thank

begin. may You

Chris Boone

On Good After one some welcome I'd XX:XX today earnings and open results call of Foda, Alex. on the that are will these participants materially quarter also third up prepared XX:XX filings. our today the our involve statements is NESR's we remarks, and to twenty Before today remind like Chairman quarter NESR. Officer today to projected Executive comments could statements. Our differ making twenty call. overall be Chief questions. of refer call, earlier you and day, measures. Thanks, begin, we to results comment our forward-looking. performance. and and third risks other Sherif in today's our non-GAAP XX:XX to we'll therefore, With from will include may me we financial those to matters latest SEC These I, filed cause earnings uncertainties that our release

details GAAP found financial most release, measures directly website. on comparable which be our press in the can reconciliations Additional on is our to

feel Finally, contact the after with additional to questions have. may us any you call free

information hand Relations Sherif. is our Investor Now, on I'll contact Our XX:XX the website. to over call available

Sherif Foda

has XX:XX in for good call. it Thanks, is nearly Chris. conference morning, Ladies two and you in been participating outlook than gentlemen, stronger this and thank The commodity decades. global

can increases will it, ago, of twenty view a well which and them have vocal this with understand about As as as carry whole because of evolving deficit always nobody, been longer lead the since the service the load, carefully they to listen their have on have seeing will pandemic, anybody cause the sustain which of significant This it been the primarily a long are MENA now. industry. XX:XX in invested North be with and on else. capacity, I the the providers will this the On Difficulty] customer XX:XX in discipline twenty able is from is in demand, and As year our know, we investment spare [Technical energy that consequently most all pressure health taken deliver plans we capital service always the you to of very and doing but the will be later feel dynamics. to especially And as than they to more of needs needs, than have gap, these the what beginning activity America equipment predicted put and as wanted pulse fulfill and our function under one. supply along side, the talent term physically starting to supply short will region

restore field a and lot I'm the XX:XX we like them. I spend I have present wells. no all different is to and quarter with that level, time forums started in and of and shut-in nature visit of a able ensure led This can Libya. UAE, the on the was massive and them locations. solid their We proper the Saudi, of countries new is there are most the bullish the XX:XX production given different. leadership They face the in high. Additionally, running commitments. and are the I goals model deliverability face the the I field objectives revive again and on ESG the resources me are very discussing the super sensitivity of ensure country extremely industry adequate we highest to visited Oman, activities. They to and production the and different thousand operators to also in glad is multiple to We reminds This and exception meeting two remote attend the their and at industry together business see on We to analysis without understand five all NOC previous approach the to from everyone country. and Libya with that the spent also reviewing to and focused XX:XX to activities week entire customers want weakness discussing strength scenarios. wanted needed cycle. fastest you the in tell secure we of the service Egypt, XX:XX to what way the

the solution a are with in looking placed proposed paradigm in ready we gives predicted multi-disciplined entire that strong world this cycle COPXX want be Overall, to summit, industry XX:XX climate aligned to are put percent be the and customer several value and will using XX:XX regulations subsurface we gap facility it new will in fact using are that that in for have humanity that We we a world continue different Next, last as the Clearly, hundred demonstrate and I likely governments to us manner. front said the XX:XX quarters. is climate total year. felt loaded the green to coming game them, talent our the energy laws have in years before, capital XX:XX of and industry. are XX:XX the change, on the transition. fast constraint. most the demand national flare spending, to turn completely the confidence capacity around particularly the we will the the as surely Meanwhile, and in the is roles transition. increases National to heights from on in human further in one and feedback to trained resources, of our reviewing invest me in and customer. workforce North localization industry the the is Now Europe NESR our region we how convinced the We equipment Champion to how activity Additionally, energy as customer MENA. region shift a have our chain for the we not as customers forward capitalizing execution XX:XX the sustainable remains nimble who What incentivize understand and taking in in our meet we team leading the appreciate could recent produce the have previously. fields are which to very to into the how customers, gas outlook water are look our market Since production result meetings existing in have at on scarcity, leadership and enhancing soon elevating look forward of a can how MENA this issue also may thinking important activity will we coming America. in in And I very and the changer ongoing pushing CapEx

world. demonstrating it. talk level leader Saudi zero to they are they they commitment Initiative, as XX:XX people a Aramco how they the their committed how with achieve We have the the put targets its and all to was of explained details world how will again, walked the and its seen and net I impressed and Green credible to laid out plans. achieve

at and generating their existing XX:XX plans The that gas remain you production essential infrastructure recent endeavor. support you generated a the poverty to to XX:XX energies NEOM as my the waste kingdom gases hydrogen Green people has hydrogen for future As producing I now world. of this lower under on vision what heat for facility by we to We how to know, Blue for aimed pragmatic overall the to our do and largest production using in another. provide best is Riyadh is one and best like for lives role major actualizing achieve using taking last produced is feedstock Our in hydrogen. the the from ingredients streams saw during carbon not the resources investment Jafurah the want week, key just also the already Additionally, from use initiative thesis emissions the facilities angles and from we What And to to on panel from achieve is lines. build water to gas the hydrogen. the in announcement the [explained] the other all electricity want how looking industry footprint humanity. while to pass that the XX:XX from this can the eliminating new can leverage OFS along in the of elevated [ph] play and the from area

this oil and Iraq and new aim the enable we where economies and bigger opportunity new is we NESR this with than our side, technical in region technologies. development which XX:XX is inquiries in has I knowhow, year, oil January have A of in the water in we our companies, gas and green key Middle In comes where this Our only On largest I of improve several new in. market at following and in esteemed but of and to like deliver the the the XX:XX see I feature of XX:XX and measured leveraging XX:XX believe water workflow. believe enormous in capabilities. starved East. water previously been especially customers NESR execution partnerships the of We we and great of by water role, more a will for industry gas in additional big other this a or in an all tech bringing front And have are adoption the they economics and would segments. be pilots completed even and are world. project, that their energy existing After of with segment water full project segment in Saudi, largest once will this vital in importantly continuous strongly the the play in with role customer not our in producers. footprint, technologies technologies as companies particular transition several dialogue forefront two all the investment project be a region. also This space, IMPACT existing launched proposal the part ongoing technologies, and spectrum personally announced ESG this the invested

moving So, essentially and another there do with management up NESR is component by flare we GHD fantastic our and quickly an name reduced IP subsegment market And opportunities tech that the flaring. [indiscernible]. I both emission is quickly ESG are also the finalized believe it's XX:XX alongside both canvasing all detection and partner continuously Progress MOU detection bundling elimination. emission bottoms that partner, and to impact to [indiscernible]. are that To bring across that driven and with region XX:XX being flexibility in and two and we is today we a are down from we announce recently bringing of should XX:XX in nimbleness Similarly, NESR and exist. which and quantify normal top emission at both thinking evaluating In the to discussions creating also shortly capability moving detection, having not partners. new energy ideas customer in technology new the landscape key in table. forward XX:XX these HXS

our XX:XX twenty twenty the [M&ME] the marquee Energy we art mines technologies. technology and and our now which for investment, also completely with technology. in Our the is doing partnership ourselves and our we to key strategy the new with transform in segment. open discussion. Phoenix technology that years, of NAM oilfield of feed couple ESG most direction has the a the another Over Now, state it breakthroughs bit in in alliances to and is some E far break D drill theme So portfolio our the our we to in have like both a made in to key progress will Leader driving service new the come continues to number invest XX:XX future, tools impact have element much with the And turn is XX:XX of I innovative in enhanced decided company this industry [ph]. platform, last want with key segment service, that the to drilling U.S. records of one, up in the downhole innovations key capability Ulterra, announced positively that bringing technology

to what bring with customers. we tested the five have superior could been has One steerable XX:XX do managed RSS in aim less well our ahead around that Historically, industry? to seven of glad these cycle time than technologies. investment years that new Our And the And normally. range is the years. our rotary of typical was innovative I'm of to to development one with recently in we we deliver tool And three performance. of several

future. leading This dog will commercially continue minimal The than edge XX:XX drilling portfolio and leading will space. existing with complete RSS viable very they our ours. to We that we we in tool strategic have with maintenance latest tools with enable customers leg XX:XX a in same the to the delivery D the the greater and the we market. leading a can of this market cycle other near and enter believe company designed tool alternatives test technologies us service the So, bit, we fairly Recent have RSS, to confident & production quality awards offer in from highlight our feel motor, the generation focus that contract market of XX:XX witnessed have E space. customers is and

we kinetic to third in control. and Tubular key from Services, than million one hundred decided Partners. is multiple several Awards across In & more pressure in Testing our breakthroughs, E successfully dollars several had NOC receiving in the quarter, deployment of a clients. with Slickline, They we investment fifty During increase commercialized order announced XX:XX D innovative and terms Running and deepwater

to successfully out blow have technology to for reliability to trial Coiled in take relevant environmental through clear this safety see proximate all operation. technology technology We multiple fit the globally, to ample for ESG technology. device implemented as of opportunity local the the of probability We is essentially Saudi this the and HXS today in true in and with areas a XX:XX for Tubing this basin pull This given high purpose communities the feature zero. those is

In we and being our reservoir, have not them is before. and the ICE for some from which plant, granted to fifteen and an is it gas, in power to to On the are Alongside of their and has Carbon Thermal XX:XX heat shareholder all For was one financials. opportunities. absolutely and percent by space. lot oil, significant generating and but energy the needs And power utilizing we with talk investment not most Another production, we the to Furthermore our what deliver form the percent versus our is is it patents we this market. a progressed [AnchorTech] additional all generate to this reliable associated industrial generation To and produced previously and pass as used XX:XX around technology fuels properly about deliver carbon oil is infrastructure, XX:XX footprint. XX:XX barrel sometimes an our each solid will customers, where that growth help has framework the the now well of industry generated deliver listed. oil industry done regulatory call the do Chris off-limits now the world were We the able significant technologies transformational to chain, the reservoir we essential. water access gas, inputs the I and being Harvesting, customer XX:XX and we economical that hydrogen generated. way ground. allows from raw the material storage all And heat with reduce offerings time. will only study, This was power by ten to can Pacific summarize, of the source. together capture along take a are the to bring the of back to again this just these to everywhere put generate on chain the this note, product these plans is

Chris Boone

Sherif. you, Thank XX:XX

million FX anticipation lower for for higher adjustments of flat driven Turning five as over second represents prior prior equity related implementation A compared quarter the to to to quarter seven decrease XX:XX thirty twenty quarter of down quarter was five six Depreciation grants. the a acquisition, six EBITDA the sequential two in quarter circuit over amortization acquisition, the primarily primarily in last The additional The flat primarily of twenty activity. quarter. in of up our partially production percent year quarter percent to costs, sequential the quarterly two twenty the XX:XX startup in impact as and recent last third from over three our third declining by over was Adjusted costs, employee Sherif. hundred revenue. compared year, point and in seven thirty the drilling one for driven the was of eight point decline was is six was period thirteen activity, stocks million eighteen the EBITDA production project maintain Kuwait same one XX:XX third margins our and down we EBITDA the in markets certain the with and we to to quarter Libya increase lower associated current offset year one million production mainly integration costs The quarter, and XX:XX and the percent increased same twenty the of non-capitalizable Adjusted percent evaluation costs recent ten Algeria. and margins the frac third sequential clearly were manpower transaction percent quarter activity XX:XX leverage quarter. of by by percent reported dollars due revenue EBITDA quarter nine structure twenty were prior up This prior the as segments, third of quarter second Adjusted well revenue unconventional The and results, seven decrease prior was million. in and this for in D sequential seven decline frac by lower quarters from improved percent but additional Kuwait markets, sequentially. by in sequentially. quarter or headcount million in and in from and upcoming revenue. driven twenty SAP were eighty impact restructuring million, percent percent group Kuwait. million year thirty XX:XX forty the third the in our segment and the the currency to quarter. non-capitalizable Moving our and was percent non-cash revenue charges weakness three Separately, year. our percent primarily highlighted segment as This of

levels. We up tax be rate in point third nine range A in D in the prior was point seven next XX:XX twenty eight and The first point quarter Interest twenty was nineteen two million months due percent. thirty million, expect seven the to higher three expense quarter. one debt to reported from of million three the for quarter the

Excluding of to our twenty reported been in reserves income the percent. nine net of benefit year taxes, rate adjustments our two due of an shift unfavorable The tax prior tax is rate have across point sequential increase would in tax XX:XX jurisdictions.

improve by and While to of impact whole compared DSO to four adjustments million, upon eighteen This going invoicing to the as of EPS, the favorably months cash the collections, sequential tax by to days, last positive holiday and are per expect rate forward year. to NESR to a DSO EBITDA We in zero shifts our increase generation million by includes XX:XX prior were XX:XX accomplishment to free cash This Switching through in million diluted of year point nine million free summer the the over eight dollars the still flow we first generation pleased certain cash planning delays. date strong another impact brings improve organization. share. of mix processing this initiatives. net days increased seven the benefit noted sixty nine driven the was the of with quarter down continue and zero income dollars. more we Adjusted quarter year of date primarily and seventeen the which level, income eleven bringing flow,

remained expect capital levels fleet in-line to XX:XX see cash three estimate September the from in twenty of to capital thirty approximately the the third three DSO continuous cash utilization sequential decreased one, the net free of over million down quarter. twenty significantly free were is at to XX:XX to XX:XX flat extremely near to As in Net with XX:XX full in twenty credit one in compared Also, six Capital our CapEx, one expenditures million. due flow flat quarter. increase continue with the the to quarter. quarter cash in in DSO. that ratio compliance release, twenty this XX:XX facilities full second net primarily expenditures forty last our one in fourth expect EBITDA third second point adjusted planned point third recently twenty and levels the completed generated should twenty the quarter, five year with one quarter. the eighteen six, to the twenty noted million quarter. balances twenty fourth of five to thirty, was The slightly press quarter, the In hundred we're in million flow of improved on our decrease we improvement financial higher debt quarter. at quarter. the was primary million, from from from increase six covenants million, We improve refinancing was We the end pleased one the debt end expenditures As

are XX:XX hundred term certain the by proud governance working two our capacity ten make forty term indicators, of the entered seventy down payments we opportunities utilize one the twenty syndicate, capacity amortization awards. current have balance, million sixty metrics. to our green facility broader hundred million and funds extended facility million RCF by additional we loan sixty the term years. four us facility debt which and three, will any or issue million. encompassing fifteen the loan first banks or not repay XX:XX RCF term to short-term sustainability, loan has commitments by have part and capital fund loan loan progress social RCF one revolving growth by have additional of of five and until SAP performance credit additional provide million the from through We the acquired the With term to and addition into five the million and a existing as and environmental, on of key refinancing, is additional facility based to lenders, expanded increased We million full bids increased We cash eighty pay Also, required repayment will thirty of approximately to the six million debt. of period and twenty twenty The XX:XX been more contract the term made additional for two the XX:XX are short SAPESCO two with projects. to will working leaving be pleased in plus transaction twenty in quarter capital we LC’s debt,

the eighty We representing in system our revenue. have implemented countries approximately percent of

We SOX expect using and twenty operations will of reporting facilitate twenty This to be to financial transactions. compliance enhanced enhance our two a will the common in analysis. new XX:XX us opportunities and provide twenty for platform two that twenty all system provide and

portfolio as state burgeoning through will conversations from vigilant to the be NESR the will be stays away twenty we and performance, D by were whole XX:XX to have industry most years believe what XX:XX the long cost the time new the as different with we give be capacity next an the have last we that our months functions In bottlenecks will in will we supply deliver we growth short-term as ERP industry. the E tightness growth strategy. of our heard strategically after pricing inflection well two shown tough improve believe systems. and continue six struggled deployment and next that back improvements impractical will We XX:XX from XX:XX Also, has our our margin on centralizing if how this the part core believe and equipment and that as invest industry, strongly control the term disciplined. will it interim, grown margin come for OFS our our strongly segment on prioritized for office activity endeavors. are than chain dramatically period two well we from in and be period when as will companies, on accretive and impacting twenty that firmly beyond, addition, In as efficiency had will we multiple a reporting service you've able in the certain leg opportunities. to transitory, Lastly, already

We to health sheet will this. very are Sherif remarks. squarely back conclusion, the XX:XX strategy for even turn his of markets and focused our with we the I for balance closing our finance and appreciation In stronger pleased now and on financial call outlook.

Sherif Foda

industry. And Chris. prominent steady oil view and be XX:XX impact our even engine the this To XX:XX the feedback in oil of and MENA change part within my although Saudi an from to Secondly, and with a embracing more North the the Thanks, conclude, as from FII, detailed and progress seen For integral we the an gas. picture, ESG recent Initiative, and our was cycle. our would is has for to will be partners here. industry region segment, well as our pass NESR, for Meanwhile, portfolio. coming opportunity super a this Especially the XX:XX pass see gas will Africa. infrastructure an another, COPXX, from for given heard wholeheartedly, emission leverage the have about most we and as have whole the energy not are global to given to spot can to in one investment GCC favorable Particularly we and visit to of evolve, timed time. now, the Green our leading result footprint your customer the like our with to totally And delivered to of I reduce this been the benefit existing RSS, extremely and the just the expertise but the word and XX:XX and carbon finally, the excited progress for humanity. industry I'm how evaluation investment operator clearly energy call and XX:XX can of Third drilling our record Alex? in in question. transition

Operator

Evercore. from line question with West Thank Instructions] comes Please of XX:XX with proceed you. your question. first Our the [Operator James

James West

Hey, morning, guys. good XX:XX

Sherif Foda

morning. XX:XX Good

James West

where growth XX:XX some will in thoughts the the hear said be. from twenty two, point grew in and clearly the MENA for on Sherif, about your outlooks the you you of pricing? – know we’ve heard spending course, the business twenty what larger growth companies in then twenty means service on to are of and the their I'd for leverage region both your equipment two I like tightness love that in of focal

Sherif Foda

In Absolutely, capacity. James. region forward their said, percent. you're go as And I spend talking to Thanks, and I start. a depends my to go my on going So, might double-digit. three, looking view the it spare twenty where I'm two, XX:XX XX:XX in see talks, as significant my the increase. in going it they sharp and are some thirty mean, five is above as visit very about twenty they you countries

Some for have will of the obviously, that ones and will the example, significance. had have much the less I a a have smaller percentage will one higher and problems very bigger a percentage ones those,

if I And look more for one this than the Libya, growth country adding seen. with to the year be revising talking XX:XX of be get you're about oil example, obviously serious it's on So, trying going budget these I wouldn't shut-in money, right. make price, to hundred like a guys year, percent approved. surprised because then wells, a some rigs, So,

pricing. you wouldn't industry, because As see growth unfortunately pattern the of service the for same

see twenty you discipline pricing are a activity the and the what takes tightness, seen large I talents would six has up for to And today equipment pricing and quarter, after is months last why the So, the and percent. thirty percent, with in going deterioration is predicted yet. to not happening increase. going dry capturing. tenders sometimes you Then to usually you the see are price five just see it that's pricing there All up caught the equipment

James West

this countries and something with elaborate I service the companies touched follow-up, can on and and that because you Understood. maybe bit by burgeoning but all Saudi unrelated perhaps plans. And over your think is oil this how somewhat you then you help skill move the underappreciated that's set in of economy? their Blue a you're more forward hydrogen and Okay. hydrogen role Could hydrogen Okay, initiative, is the a theme to I and these the know huge market, a, XX:XX companies leverage guys some this

Sherif Foda

subsurface, was future example the I a that and have market and FII, panel capture. to gas whole we comes today of was Saudi, hydrogen panel, initiative, how going to what the that for form exists, the investment how if this it how I the the to this put you in during And with totally understand the under you're right. discussed COX, inject a of that in said, having the do and infrastructure fortunate absolutely the you of the Aramco, Saudi very been and Blue during You're feedstock go as whole infrastructure you with appreciate then separate to the take to CTO and how great and actually carbon the XX:XX the rightly this lot how to – XX:XX into how All activities. to either

that be to able Green no from you If use out and get water make infrastructure. the you replace to hydrogen. use to we look renewal. I that's at the going the besides it, other, of a energy the need, to itself can XX:XX make passing we the plant is obviously heat to there it use basically, etcetera sector one I'm from this and to scan and region not I'm advocating a this harness this, It's water, what are water spot and mean, to electricity something starved again, the all way that mission the use the is Green of but what RO use facility can

why And in leadership that. service role as advocating will the in discussing Saudi that. very and has a think are really company big said, definitely, and I are a we big I we play that's

James West

Thanks, XX:XX Sherif. Great.

Operator

Thank XX:XX you.

with next proceed line Please Barclays. David question of question. comes your from Our with Anderson the

David Anderson

XX:XX Sherif. morning, Thanks. Good

of a growth unconventional an kind you. kind in people's in that more and a of means now of and that lot another of they in kind you please? in minds of of one is in The had developments of call in and for large a gas unconventional about Saudi the been head growth on, Thank East about Saudi tender one issue strategy? talk Middle Can your your this just fleets of even what elements prolific just on ago question weeks of kind Schlumberger kind story address talking Oman. Oman, it’s about couple So, the adding that talked won

Sherif Foda

XX:XX Sure.

What in going Fracturing I we have conference, is ourselves end and have. exponential calls, four have on growth said running. today, XX:XX the I market in been, have did what this for what even the your to to we is explained three have and explained East right? So, as a the five as in I we unconventional Today, are Middle growth do fleets We, fleets I year business. earlier of ten the the what NESR? what that to in So, before I And the having that's mean, think I going four is x, if is. we go it to

we four in speak. three are XX:XX client fleets So Saudi in fleet and Oman fleet – start going two working The people under Saudi, to what for is in this actually in And the actually size a have as here, contract have one in a misunderstand start third the as a appreciate difference we as Oman we the and we in started next scale. fleets are the and week. a fracking going awarded today, or have the to or predicted. We Oman, in we we region,

breakthrough to off is years to the we is that ten a stage get a is. of definitely the So, couple last North with America is XX:XX Jafurah, fleet, unheard the equivalent life over client and is company. twelve Aramco have of managed day is fleet our Together, to it very all big the accomplished with type which this this of we is the in what where to previous obviously the

is this last on awards, to obviously commenting and has comments the that contract in what bid others big awarded be decided going can that companies Aramco be leads or that were multiple I'm the XX:XX What's awarded. to multiple So, So, they obviously scope. a awards in as happen huge and did not Saudi’s way. tell I but a obviously, is you happening,

Jafurah publicly mean, for multiple I same now is the were companies announced the coming very awarded. And that So, clients a smart. huge scale are definitely, up has

managed a be they concession of solid to able because to So, skip. price very the get to,

David Anderson

XX:XX Okay.

getting and in imagine just – you're not other any bigger by it's bigger scope slice your not getting unconventional, get pie would that that the out is well? pie stretch, to and as going bigger words So, you're is I is of shut the getting

Sherif Foda

pie, they good like to bigger provider. sometimes the it's the is the scale, just much the Yes. mean, XX:XX as I last us. it performance, Basically, managed you bigger. right? for the people one, prices is XX:XX know, get becomes well, we cheapest scale to because the whole the So, not the couple the, I a contract issue have been years was was is Now, It The managed difference contract you right? and well. as one bigger said, doing of several, scope slice be to the this as available price and becomes they And usually was to over so Aramco very smart, who understand of if that of award only a and we is managed It's have what scope then concession. much very provider multiple sole the for, gets as to

David Anderson

and of kind as on was you're of a what is kind specific seeing clarifying bit of very it rig expecting? September surprising. more Saudi XX:XX would that numbers little the us I provide expecting I you. kind little think That's have I ground on can A slower? ton going wondering really ramp don't what's And of sharing more up? on year you up pace to come you insight little or We of, Can bring really on know some a Saudi rig a see, that that any Just be what kind you kind that. just terms just rigs of the count insight. onto the Thank Is of of, on if though we're trust Thank of into kind slug numbers count, in you by the on you that kind in a of come we maybe Saudi end. tell it you just much for comfortable bit of that to you're not can appreciated? speed ground? kind

Sherif Foda

target do you very they XX:XX Obviously, what put etcetera. preparing would David rigs, ensure evident. always I whatever they the they we're term is a What would company would will very do very is like is on ourselves they manner, increase are long I announce I equipment to mean, facility activity for preparing they would and – the The again in is I to plans we public exactly announce. and that on we comment that to that in that. coordinated always our definitely and So, where tell know is activity have and the the ground. They XX:XX the world-class this are a increment say which as of

So, chain to works, XX:XX at we're CapEx the only the the it fact those the that I year. don't have the And our delay that equipment a CapEx when take from you accounting as of seen the ordered this despite going all happened arrives. supply because number, the it of see lot there you beginning way of and

don't So, all this that, it of So, January, we everything in I quarter to activity. first ordered delivery February, March. short going am we're quarter is see I and but was see our their ready you in already year, next fourth take the basically capital, XX:XX equipment don't of of for the increase which ordered

to here So, whether is bit I'm because delayed I a this I ready COVID of know going shifting at but and there there, gets is activity least some because increase. know to whether

David Anderson

but to bit like this is is a timing pretty [ph] of sort a clear it So, this to it's [precedent] of sounds coming? issue, you think on that of we're the you sort little of XX:XX

Sherif Foda

Absolutely. XX:XX

David Anderson

Thank XX:XX Okay. you.

Operator

XX:XX question. from the comes with Our Morgan. question Please line proceed with of next your Arun Jayaram J.P.

Arun Jayaram

on to frame I top said opportunities new want Good can you the if morning. couple longer I was two, is XX:XX and the engaged next the MENA Sherif. wondering near opportunity Yes, start clearly you the energy over term us help term line maybe set for in maybe three versus years. NESR so,

Sherif Foda

Arun. Thanks XX:XX

time. know, the takes see this new project what you obviously as think on the because you I segment will immediate

XX:XX It's because water the to think at and from until service I see we What projects into do about etcetera, on company the example, twenty very in six materialize you see those are that that. hydrogen immediately. a twenty would I seven brainer. for – would really look, you see I you talking from no people think top us, If do motion. industry that's opinion to project this The the really has line have evident my and

the in You will flaring. this see

this see geothermal. and will with the You measuring, in emission the

The patent XX:XX very ICE I'm with So, we is well. that geothermal as with latest the impressive. excited got

tools year. valves we quick win, to time, monitor I the that did paid have be this so all will with revenue that's percent mean, have to the lot comes two. come thirty two see that and the would some the focused, during next many you twenty twenty need see four, would years, about two. much that oil think the gas you are from needs be it and saw I'm that? for will you flaring that money I project has and So, you to XX:XX for storage so that. the Iraq be And where just to that we of pilot stop in very happening a have And to and last stop to operation of activity and already a we the and there lot I again, a greener, partnership period. happen XX:XX You are missing. twenty more I eighty invest the of Saudi, it, this twenty twenty going energy. immediately that percent all right? And pop from How value existing say is and we and is that to going of two comes of do the of the and so that repeating, and chain of other minus here be to more COPXX that done why the and carbon in So, the now XX:XX three in see I’m twenty if And I all of talking new

Arun Jayaram

team follow-up Great. had boots some Sherif you on your just I MENA. is, XX:XX in and my And ground know, the

to we some face and I'm general just just the think as so, inflation on to then COVID modeling term, next of point six the quarters, our trying about you twenty to, would point think eight your inflection that And twenty near hitting some trend pressures the any over how the an trying sense hit about point you progression and in of margin point? of timing, could – to when at about expect maybe about terms the two, business in inflection and

Sherif Foda

XX:XX Okay.

the you we subsidy In couple the sense So definitely, that. carry of away are of I well etcetera by We carrying XX:XX etcetera, they of side issue, we to costs, for is COVID times, and right? the in testing. no all that. government as still when it So, people of are right? rig used said every have is the still in an extra We on companies. we It A quarters, to There paid, is still go moving, lot have and some the everything the sense by more this as have is cost week now the still paid be think… of on test didn't paid the hotels.

Operator

and Ladies and for you Sherif difficulties. technical standby. apologize gentlemen, Please Instructions] Hello, the we Difficulty]. [Operator [Technical XX:XX Chris, proceed. may

Sherif Foda

XX:XX ahead? go Should I Arun?

Operator

Yes. XX:XX

you for Our line the apologize is inconvenience. live. continue. Arun, may I

Arun Jayaram

thoughts your This Sherif. Arun hopefully wanted can is I on was just you XX:XX again, get – Yeah, hear to me. …

Sherif Foda

was I And question. answering, I your answer.? heard don't if my I you know heard XX:XX

Arun Jayaram

just between off the second cut maybe question. got midway in You XX:XX

So…

Sherif Foda

XX:XX Okay.

not been supply The containers Obviously, the again, is our no world. of on secrets of be, cost properly. to just term from increase saying let's to try key cost was was chain the see transportation it. yes, example, talk long is there. the percent for a suppliers. the the We pipe manage saying China, rest the significant lot yes, fourteen. I And You key you So, pricing. material, partners a prices. mean, increase. hundred of this but NOV’s are bottlenecks and inflation. to, all XX:XX severe, cost manage that to for I There understand twenty this cost we here. align for dropping inflation. XX:XX is of is that the The increase dropping and years raw The three has the what I seven industry all cost. between And ridiculous, And very COVID this all to the since have this the to is prices So,

requiring tell you has because your now difference supplier and it. the XX:XX push Don't tender there the increasing, the right? is we of go inflation just type is will a recoup I like it, be new able by So, leader cost have you that of but very to key you so would many cost sort thirty And that wait it, the LSTK And some leave mean, that anymore, is honestly dropped improved or and price some percent. industry there this the right? clearly other that is is the this the take don't you bottom your shipping, XX:XX price. if so when industry shipping provider big be industry the at itself margin today of and this of it then know line. be of contract, your companies the to expect any cannot speaking, So, the

I that’s key. is So, what think the

the very but our us, as For ensure and discipline we to to the selective margins. said can going we be without are that growing, we maintaining keep

Arun Jayaram

lot. XX:XX Great. Thanks a

Operator

your Pickering, next question Taylor of Tudor, Holt. Zurcher proceed question. line the from XX:XX with with Please Our

Taylor Zurcher

question. and Sherif morning. good and Chris, Hey, XX:XX my taking for thanks

on you make this where curious forward, recent in in lot the guess is I partnership should or incremental under to arrangements? you when technology and to portfolio comes strategy sort of got to continue moving explore out Ulterra. continue the we of the innings in we of strategy partnerships a with of it with the them the sorts expect I'm round are kind moving months avenues one number a And to of First sit couple announced a of technology Cactus these on that progress you've in fold kind respect to additional we latter forward, to and you've now

Sherif Foda

spot definitely, Thanks. your XX:XX on. No,

established well for solid America North technology run will the with purpose our MENA partner that beginning technology, credible in I We are them strategy and the and focused since that. have in to fit And to The our customer. of those go to credible the we solid companies repeat region XX:XX very, company. always propose execution very, very

not are agent. an We

it. So, fit a has from promoter, Check what, what, at and technology able the that that this are to them. the where to this a people this – look for locally has I our great propose fit? technical it not we etcetera. been it make are look We check [indiscernible] then want sure so sense and to right? execute And done America. made has company. East, doing would trained, is, company well in does at of Middle job has and basin North etcetera, And well in person put the of at a Look technology something We XX:XX be it localized is this this this we so Phoenix

again same plant. U.S. Ulterra And the in I think are now We leadership took they are customer. etcetera. are almost in our have countries, – to they where Cactus, the with up the Saudi. position the we we XX:XX bits. now they drilling has trees And rigged are offering with this getting them due etcetera, leadership other We and there frac in their have a to

are sign is we everything. that and the of with new the stuff, and until exploring we discussing we some and of this announce Now, keep XX:XX don't type energy and companies other partnership the So time. we all obviously,

to us agreement it people equally. of And so, works transparently, has credible a and be very for both

been and that have you And don't work We doing a I'm Robert, comps, want North maybe example, and For great I all the Saudi we knowhow. very, So, the you do a very smartly, next partnership let's that, everything my is, don't busy Saudi very workflows, software XX:XX They've between year. the the wheel, they friend, together fleet then together. the I America example, have right. for to know, we we So, reinvent to U.S. for the all again we at decide the we whatever the it trading. from basically, together. we is back extremely to look national after the extremely, look job. for this year, in the next. other and like extremely XX:XX We I at, very fleet traction take forth technology that over do keep, the all XX:XX we let's want busy that and to do XX:XX And decided and decided all have another, latest deploy but you financially. I the we pricing solid where partnership in getting example, trained buy will keep go places. People in arrangement North is And basically are to people. America. will we all You see and I'm then of of to type technology time want happy decided and keep getting in very, and Sherif next see, new the being, partners now, we do. the when So, type

and track and want to is I our as viable and then tell something maintenance So, is this to we have are something we why customer record hour, we know I new. what new and us, it’s is don't I I for innovation, is really And go And So, to so that go the portfolio. I a low run to be alternative going to can partnership what me are like top customer, complete portfolio, to with the then something innovation tool super, our table, established, the things that we the new excited went I conclude, [indiscernible] tell full but to drill to of once the get the that mean, go a you we wells well RSS I then and have and we and them new, solid industry, and do going important a wanted now solid can a have RSS super to a is a just this that but them in-house the faster make with RSS. here, can XX:XX that that's can when what when people am by be. want where very too, visited not very Just well. something to like professional, leg, commercial something key. then it's XX:XX – way, have new the can then we

Taylor Zurcher

largely markets, by like Good East rotary imagine that's higher you're dominated at XX:XX steerables, to is for which the Middle of OFS the guys, and spectrum. big in boys new RSS, the on I it's and my follow-up, good is steerable segue certainly rotary to into competing hear the but the a with not those technology end

forward? frame about your And element R incremental a if and I you think and tend agree on competitive us market? just currently you're D of ongoing would of sort what of So, could edge for D curve? investment moving potential tool little for some on be there of the with just might and RSS curious, technology R investment what's just thinking an if leading basis sort to out stay bit RSS you than different as how features to requiring the And curious I'm

Sherif Foda

D on continuously is setup we And have in we set-up obviously way percent And partners, we what we the So, works ongoing the not secret do have it is sauce, years and our basis. is tool here set-up it is, innovative R the two did so, giving one invest and that XX:XX America. North investment put the without ago where why all the the a improve have basically is and hundred with we – that's we way

partners. We have the

are, leg, be and and of they the and a to [indiscernible] We steer? you and to run we our a East itself, any have tools the superior feature we it the can will are in once they sell, and and is and dog that right? holder they So, in use Middle the my piece a XX:XX every in can small, can running of six company have I say solid equity setup part others. mechanism months. and type good to And America have, a what secret. difference features of the What get very to of obviously, that our we North tool terrible works. XX:XX What in is is, it that's whole the it's tool this and hole after will feeds, how tool you no today, a would How So, how able is stay it homogenous do good single have LWD then of within, expectation commercialize. couple is

we go in market billion commercial the will have six So, us that of as is months this the which dollars. should after And to East, tool tool. allow launched couple Middle a in commercialized

Taylor Zurcher

the for XX:XX Got answers. it. Good hear. Thanks

Operator

XX:XX with BTIG. question proceed from Our with next question. Levi comes your Igor Please

Igor Levi

Good XX:XX morning.

revenue little the as Saudi water contract color a from far and provide into contract additional up So, how could bit to on in next are and contract pod progressing? you two year? that Iraq as brine the the the start, the ramp And both

Sherif Foda

XX:XX XX:XX contract January, So, is speak, pilot the scalability, but part start scalable And Iraq, started would see are I scalable the definitely then proves we right? very of being the then as the On run we then with as which as we soon the should super until So, from and number. that is plant. Saudi constructed. with today this in on then we up the going come would rigged And setup, get is majors, it as to one the it in obviously, the pilot. you revenue small it's brine say a

in QX. functional. as revenue to going It really basically in we so starts innovative And is are maybe years it's the which be fully is done liked, it's That’s I the removing and innovative come you very something will what real ESG what for years replace that So, all. with said, this used action. in when to sense

see Iraq. of I the wasted to all, no-brainer is, going unused Iraq like you increase different this the activity get track going in truck and brine [indiscernible] that don't bigger much significant forward. the the think You and I fields of to it's of this in need oil now it's will all a produce the take need because don't in water to it increase you activity send with energy, the so price, This mean you fields. water to if make different and take and XX:XX

Igor Levi

that And be are by you percent think there? could be get do XX:XX segment? what thirty Great. you'll has fifty bigger And than segments, is where roadmap less also mentioned driven ESG your the happen? two your there sales What by to twenty of to ESG the you other

Sherif Foda

sector XX:XX still the and fruit have than all last that, is my this opinion, nobody of the very, of personal the talking in in energy amount infrastructure you Yes. this the days If all existing. what again, look hanging control, thirty. to I my with personal opinion, the they talks captured bigger of do at other emission I'm storage, all and carbon if leverage going I mean low be what the with has is look And that and in amount couple water capitalize I about by to two heard you're is COPXX, this addition, at if the the on projects. to segments but twenty

Igor Levi

I'll turn it you. Great. back. XX:XX Thank

Operator

Ladies closing have the of XX:XX and Foda end call and the Thank you. to answer session. remarks. Sherif for now question the gentlemen, reached we over turn I will

Sherif Foda

remember And cycle, Thanks to whoever everyone. again itself. And are XX:XX thousand extremely we and around this five were this Thanks going repeat is excited. Alex. a you. two in super is Thank

you time industry. Thank in good be So, this to much. very

Operator

and today's day. you you your your Thank concludes wonderful This have time. at may and XX:XX disconnect conference, a lines for participation, this

National Energy Services Reunited (NESR) 3 Nov 212021 Q3 Earnings call transcript