Hello, and welcome to the Shearwater GeoServices Q1 presentation. My name is George, and I'll be your coordinator for today's event. Please note, this conference is being recorded, and for the duration of the call, your lines will be in a listen-only mode. However, you'll have the opportunity to ask questions towards the end of presentation, and this can be done by pressing star one on your telephone keypad to register your question. If you require assistance at any point, please press star zero and you will be connected to an operator. I'd like to hand the call to your host today, Ms. Irene Waage Basili, CEO be at today's conference. Please go ahead. Good afternoon and welcome to Shearwater's first quarter 2026 presentation. We appreciate that you join us on this Friday afternoon. My name is Irene Waage Basili, and I'm the CEO of Shearwater. Joining me today is our CFO, Andreas Aubert. Here's today's agenda, and I'll start off with the main takeaways of the quarter before going into the operations. Andreas will go through the financial update before I return to the outlook and a brief summary. As always, after the presentation, we will open up for questions in the Q&A sessions, where we take the call-in participants first and then submitted written questions thereafter. Please note the disclaimer. As expected and communicated, marine acquisition activity remained muted in the quarter, mainly due to a slow contract market. Having made the strategic entry into multi-client three years ago, we continued to benefit from our disciplined multi-client buildup with another quarter of strong revenue and profit contribution, totaling segment EBITDA in Q1 of $21 million. While segment revenue variability is expected to continue in 2026, our multi-client model has proven to be a strategic enabler, supporting backlog utilization and a broader revenue base as we build up a profitable cash generative data library. As such, for 2026, we expect the multi-client revenues to exceed the 2025 levels. Group EBITDA for the quarter came in at $36 million, reflecting this multi-client contribution, as well as the project mix in our marine acquisition segment in the quarter. Fleet utilization was 73%, slightly up from Q4 last year, across an active fleet of 8.7 vessels, the latter reflecting the stacking of Oceanic Vega towards the end of the quarter. We are starting to see indications of supportive long-term fundamentals for marine seismic beginning to translate into opportunities led by the Indian Exploration Program launched earlier this May, which is set to support demand and may absorb a substantial share of the global active fleet as these programs commence. This is also supported by signals from several of the super majors already at the beginning of the year before we had the Middle Eastern situation. However, their plans seem to be reaching more into 2027, and that's when they're expecting more activity to come online. Against this backdrop, we are increasingly optimistic on activity levels from clients picking up, although we are cautious in terms of when this will cascade into our market. Early signs indicate a step-up in activity toward the end of the year, while we are then, in the meantime, navigating near-term market conditions. In 2025, we launched a $40 million cost reduction and efficiency program, which is progressing as planned. We have, over time, had constructive dialogues with our key stakeholders to increase financial flexibility and ensure resilience should the soft market environment continue. Earlier in May, we launched a proposal to bondholders on certain amendments to be made in our secured debt facilities, supported by a planned equity contribution from our main shareholder. The proposal, which Andreas will cover in more detail, we believe represents a balanced framework favorable for all stakeholders. Moving to the operational update. Marine seismic acquisition activity reflects a continued muted contract market, with utilization supported by awards secured in late 2025 and in early 2026. We operated an average of around nine active vessels during the quarter, broadly in line with what we had towards the end of last year, with capacity aligned to market conditions. Streamer contract execution continued across multiple regions, supported by backlog conversion and recent contract awards, including ExxonMobil and Eni projects secured during the period. Multi-client activity continued to build momentum and is now established as a key strategic enabler and profitability driver, supporting both earnings and backlog resilience through industry-funded projects. We maintained a disciplined approach to fleet management. The Oceanic Vega was cold stacked to protect utilization and margins while we're optimizing the fleet portfolio as we move forward. This includes the divestment of Shearwater Baret at a premium to book value, which we announced earlier in the month, with additional vessel sales processes ongoing to further strengthen efficiency and financial flexibility. In parallel, our cost reduction program is progressing to plan, with identified initiatives targeting approximately $40 million in savings, reinforcing resilience in a softer market environment. Just to update on the current quarter. In Q2 2026, the Shearwater Tasman will execute the Jackdaw 3D contract in the North Sea, supported by the Shearwater Gallien as a source vessel. In India, we completed large multiple Oil India streamer contracts early in Q2. In Trinidad and Tobago, the high-capacity Amazon Warrior continues the five-month contract for ExxonMobil. The Shearwater Bly is deployed on the 3D contract for Eni in the Timor Sea later this quarter. In Nigeria, the Shearwater Duchess just completed a streamer contract for TotalEnergies, in direct continuation of a program for Chevron in the same country. Exciting things are happening in India, which I referred to earlier, with several tenders launched earlier this May. I'll cover this in more detail in the outlook section later in the presentation. In the multi-client segment, we have positioned us as a fully integrated marine seismic provider. Early Q2, the Shearwater Empress completed the third season data acquisition in the Pelotas Basin with solid industry backing, which we're quite excited about. I then hand over the word to Andreas for a financial update. Thank you, Irene. Revenue was $121 million in Q1, down from the same quarter last year on the back of reduced contract activity and vessel utilization, partly offset by strong multi-client sales. This impacted the quarterly EBITDA, ending at $36 million, leading to an EBITDA margin of 30%. The increased multi-client contribution reflects the continuation of our disciplined segment buildup. EBITDA will fluctuate in line with the varying activity level, vessel utilization, and project mix, while also being increasingly influenced by the timing of revenues generated by our multi-client business. The marine acquisition segment reflected the muted contract market with $27 million in EBITDA. If we compare that to the same period of last year, it is significantly down on the combination of lower activity, contract mix, and pricing. It is an improvement on what we have seen in each of the last three quarters. Multi-client delivered a material EBITDA contribution of $22 million in Q1. While the Multi-client business continues to develop, quarterly segment revenue variability is expected to continue. However, as Irene mentioned, we expect 2026 Multi-client revenues to exceed what we saw in 2025, when it came in at $76 million. The software processing and imaging business continue to deliver positive EBITDA. In other segments, we have SG&A and R&D costs of $13 million, and that is similar to what we had last year. Moving over to the cash flow. To the left, you see the development of our cash position from the end of Q4 to the end of Q1 of this year. As covered on the previous slide, the EBITDA contribution was $36 million in total. We had CapEx in the quarter of $6 million. This compares to $5 million that we invested in Q1 2025. It reflects a continued focus on minimizing non-critical investments to conserve capital in the current market environment. Multi-client investments of $32 million were driven by Pelotas Phase 3, the Nigeria converted contract, and the 2D project off West Africa. We reduced the working capital by $53 million this quarter. This was primarily driven by the sale of trade receivables to Rasmussengruppen. Net cash outflow from financing was $21 million, mainly reflecting interests and installments paid on the bank facilities, which are payable on a quarterly basis, while the bond loan interests are payable on a biannual basis in Q2 and Q4. The cash position was $94 million at the end of Q1, up $29 million from the previous quarter. The credit facility was fully drawn at quarter end, that means that the free liquidity equals the cash holding at the end of the quarter. For free cash flow, this ended at $51 million for the quarter. Free cash flow will also naturally fluctuate in line with different activity levels and working capital changes as vessels and equipment mobilize and execute projects. Turning to our balance sheet, we start off with our leverage ratio in the top left. This is calculated as net debt over EBITDA in the last 12 months in accordance with our definitions disclosed in the APM section of the quarterly report. This came in above the threshold in the bank facility. However, we have a close dialogue with our banks, and we received a waiver for the end of Q1. The leverage ratio calculation is part of the proposed framework to support our long-term financial flexibility, where a two-year freeze of the measurement is proposed. The net interest-bearing debt is calculated as you see on the bottom right, and that stood at $518 million at the end of Q1. We had an equity ratio of 34%, which is more or less the same as it was at the end of last quarter. Looking quickly at our current debt structure on the top right, you will remember that we, in 2025, agreed with our banks to postpone the two scheduled installments for the second half to January 2027. On an annual basis, our debt service is approximately $100 million, and that's separated into $50 million in installments and $50 million in interests. Given the soft near-term outlook, we have proactively proposed amendments to our secured debt structure to ensure that we have sufficient buffer going forward, which comes in addition to the previously announced cost and efficiency measures, which are being implemented according to plan. We have put forward a proposal based on a balanced framework supporting long-term financial resilience and flexibility in case the market remains soft. The proposal includes an equity injection of $40 million, deferred installments of up to $25 million, in addition to the already postponed installments of $25 million being postponed to the maturity of the bank facility. The proposal also includes an increased basket related to vessel disposals. This is the preferred solution, and it is backed by our main owner and the bank syndicate. If it is not approved by all parties, we also have a commitment from both main shareholder and the bank syndicate to make certain amendments to the bank facility without bondholder approval. Both solutions take into consideration our outlook for 2026 and onwards. Now, the proposal is on the table and will be voted on until the 3rd of June. We await the outcome and will then return with more information when it is relevant. That's the end of the financial update, and I hand the word back to you, Irene, for the outlook and concluding remarks. Thank you. Thank you, Andreas. For the second and third quarter of 2026, we expect marine acquisition activity to remain muted, as said before, extending really the trend over the past few years with lower activity in this part of the year. We remain disciplined in tendering in the contract market and fleet management, focusing on utilization quality rather than volume. We continue to scale our multi-client business with continued growth expected in 2026. We maintain strict return requirements in the multi-client space, increasing activity gradually and responsibly through converted contracts and highly selective investments. Following a period of lower order intake, we do not see an immediate inflection point in overall market activity. As Andreas just talked about, we prepare therefore for a soft market through 2026. Our focus remains on resilience and ensuring a robust buffer to navigate the current slow market, supported by the measures making us a leaner and more focused company while maintaining our state-of-the-art capabilities and long-term ambitions for the recovery. Our backlog stood at approximately $260 million at mid-May, including multi-client commitments and the minimum guaranteed vessel months from TotalEnergies, providing visibility in a near-term challenging market. However, we are seeing a material increase in our tender pipeline that supports a potential increase in activity towards year-end and into 2027. This is led by a series of large tenders for 2D and 3D exploration data in India, which, if awarded as planned and kept to the timeline, will tie up a significant number of vessels, perhaps as early as the coming winter season. This, combined with us continuing to consolidate the global streamer supply by divesting vessels for use in other offshore segments, we expect market balance to start to improve. Looking longer term, we see an improving outlook for marine seismic. We see both majors and NOCs are signaling increased exploration through various client dialogues at several levels. This is in part driven by everything we read about in the newspapers these days, but by diversification of energy supply, given the current geopolitical situation. Also investors shifting focus to long-term production measures and cash generation long term. To summarize, we continue to face near-term market softness, but with clear signs of higher activity levels towards year-end. We're very pleased to see the results of our step-by-step buildup of the multi-client business, making it an increasingly important part of our business as a strategic enabler and generating both material revenue and cash flow. We maintain cost discipline and are proactively working with our owners and lenders to strengthen financial flexibility and ensuring that we have strategic optionality in what looks to be a current cycle trough. Long-term fundamentals, though, for marine seismic continue to strengthen, as does the market outlook, and this is very much supported by various client discussions that we have. I should also mention that the outlook for 2027 and the ambition level from several of the supermajors already at the beginning of the year were indicating growth going into next year, pre the Middle East situation that we're currently observing. One can only assume that the current situation in the energy markets will only support a further acceleration of that already increased ambition level. This underpins our confidence in the medium to long-term outlook for seismic and our conviction that Shearwater is positioned on the right side of this cycle. We are ready for the Q&A session, and I hand the word over to the operator. Thank you. Thank you very much, ma'am. Ladies and gentlemen, once again, if you have any questions, please press star one and just make sure that your line is not muted till I signal with your equipment. That is star one for questions. I will just give you a few seconds to signal. Once again, ladies and gentlemen, if you have any audio questions, please press star one at this time. Okay. We do not have any audio questions at this time. Let me call over to you. Oh, sorry about that. We have one that just came in, and that question is from Martin Lapin Larsen calling from Heimdal Forvaltning. I hope my Norwegian is okay. Your line is open. Oh, thank you. Can you elaborate a bit on the commitment secured from Rasmussen and the banks that is non-conditional on bondholder approval that you mentioned? Yeah. As we have said in the summons, or we have put forward a proposal that requires voting from bondholders. We have also been clear that we have an alternative that does not require bondholder acceptance. as of now, we're not going into details about what is in that proposal. we will get back to that if by the 3rd of June, see that the proposal that is currently out does not get the required support. therefore, we shift our focus towards the alternative, and I will announce relevant details of that in due course. Okay. Thank you. Thank you very much, Martin. We do not have any further audio questions. I'd like to hand the call over to the hosts for any questions submitted through web. Thank you. Thank you. We have a couple of written questions coming through the web, and we'll start off with Magnus Jerman from Pareto Securities. With regards to the cost-saving initiatives, where have or will these cost savings take place, operational cost or overhead cost? Second part of the question is, how much do you save in annual cost from the sale of the vessel, including insurance, cold stacking cost, et cetera? Yeah. In terms of cost-saving initiatives, we have done a thorough review on our overall business, looked at the various parts of it, and we have reduced cost, everything from smaller things such as reducing warehouse cost for equipment, office rent, IT cost, et cetera. Of course, the majority part of the cost savings is related to salaries, where we have reduced cost both onshore and offshore. It's both SG&A and operational cost. In terms of the cost saving that we obtain from the sold vessel, we see that the cold stacked vessels cost around $50,000 a month. That includes costs such as insurance, et cetera. Thank you. Further, we have a question from Jona Leusen. We have several questions, so I will do two and two of the questions. The first two questions is: You mentioned that the Vega vessel has been stacked. How many vessels do you have in operations and/or warm stacked right now? The second question is: Is it possible to give a rough number on your expected multi-client investments in 2026? Well, we have said in the report that during Q2 we go down to eight active vessels. When it comes to multi-client investments, we don't provide a number on that. The reason for that is that we don't set a budget and a target for how much we should invest. Our strategy in multi-client is more based on looking at each individual opportunity, where we will work on the projects where we see a good balance between risk and reward. Typically towards the projects where we have a high commitment prior to commencement. With that, it's difficult to know because we have converted contract, et cetera, as well, that will play into that. It is very difficult to, at this point, say what the multi-client investment will be, given the nature of it. The last part of the question, when should we expect to see announcements of contracts for the coming season? As you will see from the tender pipeline, it has improved quite materially. Meaning that there are a number of tenders pending at the moment. Quite a big portion of that comes from various tenders in India, which normally would take some time in the process between when one actually submits and when an award is given. It's hard to quantify really and to be specific on the timing. Probably during the course of the summer, early fall, is what we expect. we also know that when it comes to timing, both when it comes to when tenders come out, when awards are made, and how long the process takes in India, that is a measure that we need to sort of manage expectations in terms of timing. Thank you. The last part of Jon's question is regarding the sold vessel. You have sold one vessel and announced that you expect to sell one more. Is that correct? When will you receive the proceeds, and how much do you expect to receive? Yeah. That's correct. We have sold one vessel. We announced that earlier in the quarter, and that was actually completed yesterday, meaning that we have received the proceeds from that sale. What we also have said in the past is that it's a sale that is above book value of approximately $21 million. We have there used the basket of $25 million that is in the bond agreement. The surplus proceeds, which is quite limited, is inserted into the disposal account. It's also correct that we have announced one more, where we have entered into an agreement, but where there is and remains conditions on the buyer side. We hope that there will be a conclusion on this within the end of the current quarter. Yeah. Thank you. Small clarification on the market outlook from Jørgen Lande in Danske Bank. On the market outlook and increasing tender pipeline, is this for OBN work or conventional 3D seismic or even 2D seismic? Glad to specify that, because as we all know, OBN tenders tend to have very high top lines and not necessarily the equally attractive bottom lines. The bulk part of what this increase represents now is for stream of work, both 2D, actually, quite a bit in India, as well as 3D. There is also some OBN work in there, but it's not the OBN top line that is driving the material increase that we see now. Thank you. A follow-up question from Jona Leusen. Back to my question about multi-client investments. I understand that it is difficult to be accurate on this. However, you said that you expect 2026 multi-client revenues to exceed those of 2025, i.e. minimum $76 million. Is it possible to give some indication on how much you need to invest to match 2025 revenues, or is it mostly late sales? No. As we said, we don't have an exact number for that. We definitely believe that the investment, if the revenue came in at 76, will be lower than that 76, but we haven't given, and won't now give, indication of full year multi-client investment since that doesn't really make sense given our strategy in that segment. Thank you. A follow-up question on the vessel divestment process. Can you provide details on the amount of vessels are in the divestment process you have mentioned during the presentation? Yeah. To reiterate one sold already, one where we have an agreement with certain conditions on the buyer side. We have, as I think I've mentioned in previous Q&As as well, at all times, several various discussions where a lot of them will not come into fruition. We certainly hope that we can move forward with some processes over the coming quarters. We haven't set an exact number on how many vessels will be sold, but in the proposal that is currently for voting, we have proposed that we change the formula for how proceeds are split for up to six vessels sold out of the marine streamer seismic market. what's perhaps worthwhile mentioning, Andreas, is as Andreas says, there's always a number of incomings, and it tends to be often long and uncertain processes when you're in this S&P market of vessels. What we see now is a clear tendency, and it makes sense with the political and security backdrop that the world is facing right now, that there are quite a few incomings from new type of areas such as defense, such as infrastructure surveillance, and the likes of that. Subsurface, of course, infrastructure surveillance and monitoring. Interesting markets for potential divestment opportunities that also leads to indirectly further consolidation of the supply side in our core market, should they materialize. Thank you. That concludes the written questions that we have received so far. A quick check with the operator if there is anybody on the line that would ask any questions. We don't have anybody at this time, but maybe just a quick star one if you wish to ask any questions. We'll just give it another chance. Okay, sir, we don't have any further questions. Okay, that concludes this call. Any closing remarks from Irene? Simply to thank you all for joining us this afternoon and for putting forward interesting questions, and we wish you all a very nice weekend. Thank you.