National Energy Services Reunited Corp. Q4 FY2024 Earnings Call

Greetings, and welcome to NESR Fourth Quarter 2024 Financial Results call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Blake Gendron, Vice President of Investor Relations. Thank you. You may begin.

Thanks, Melissa. Hello and welcome to NESR's fourth quarter 2024 earnings call. With me today are Sherif Foda, Chairman and Chief Executive Officer of NESR; and Stefan Angeli, Chief Financial Officer. On today's call, we will comment on our fourth year results and overall performance. After our prepared remarks, we will open the call to questions. Before we begin, I'd like to remind our participants that some of the statements we'll be making today are forward-looking. These matters involve risks and uncertainties that could cause our results to differ materially from those projected in these statements. I therefore refer you to our latest earnings release filed earlier today and other SEC filings. Our comments today may also include non-GAAP financial measures. Additional details on reconciliations to the most directly comparable GAAP financial measures can be found in the press release, which is on our website. Finally, feel free to contact us after the call with any additional questions you may have. Our Investor Relations contact information is available on our website. Now I'll hand the call over to Sherif.

Thanks, Blake. Ladies and gentlemen, good morning, and thank you for participating in this conference call. I'm extremely proud of another stellar year that the team delivered in 2024. In the fourth quarter, we once again reached new heights for revenue, EBITDA, and EPS. With robust cash flow generation, we've entered 2025 in a position of notable balance sheet strength, and we've never been better positioned to size the many opportunities that remain in front of us. First, let me reflect briefly on what we were able to achieve over the past year. 2024 was an exceptional year for the company, marked by many key milestones, especially our NASDAQ relisting this past October. This was a fantastic event where we had our management team traveling to New York and celebrating with our investors at the NASDAQ Center at Times Square. Thank you to all our investors and analysts who attended the event. Operationally, 2024 was a continuation of our unique growth story as we secured new contracts, enhanced our core business, and pushed into new technology frontiers with our ROYA directional drilling platform and NEDA decarbonization portfolio. We expanded and deepened our anchor country footprint on many fronts with multiple growth drivers within each country contributing to our near doubling of the overall market growth in 2024. Today, our large core countries include Saudi, Oman, Kuwait, UAE, Iraq, Algeria and Egypt. We achieved record revenue and growth in each this year. We are positive about the prospects and opportunities in all of them for 2025 and remain optimistic about adding more countries to that league in the near future. A best example is Libya, with its recent development. We continue to address all profitable growth opportunities in all the countries where we operate and we are nimble and agile to act quickly when needed. I will go into more detail in the outlook, but let me first summarize some highlights of 2024 at the country level. In Saudi Arabia, which was our fastest growing country by both percentage and absolute dollar terms, NESR gained market share, outperformed in several product lines, and started some key investments for the future of our infrastructure. In Oman, where we have the highest market share as a percentage, we maintained solid execution, gained several service quality and HSE leadership awards, and began to introduce our ROYA directional drilling platform in recently awarded contracts. We see a lot of runway in this country; despite a stable outlook, we can still outpace the competition by adding new services and gaining share. In Kuwait, I'm very proud of our achievement today. You recall we entered this market from nothing six years ago. Today it's our third biggest country with the highest growth potential percentage-wise, with obvious rig growth tailwinds. In UAE, Algeria, and Iraq, we maintained steady performance and delivery on our contracts and closed the year near all-time highs across both oil and gas basins. The rest of our countries remain solid and saw good margin improvement through the year. Across our entire MENA footprint, we exited the year almost uniformly at record best revenue, strong margin, and cash flow generation. In addition to the natural seasonality of the region, our fourth quarter result is a testament to both continuous improvement across the organization and the deployment of new innovation that helps us unlock greater efficiency and revenue quality. Stefan will discuss this in great detail. Moving to the outlook, I want to comment on both the market outlook for the region and for our company. Overall, we see sustained and broad activity growth in most of our core countries, combined with secular gas development projects that are moving ahead regardless of global commodity prices, and also frontier opportunities in decarbonization and water. While growth in the region is expected to moderate in 2025 compared to recent years, the rig count in our four largest countries, which comprise over 75% of NESR revenue, are at or near historical all-time highs. The total rig count of the MENA region today is far higher than it has been at any time in history, higher for the first time than the rig count in North America, and this is happening at a time when the oilfield service industry is most disciplined with respect to CapEx and capacity expansion. With this in mind, let me take a moment to illustrate our outlook in some of our key countries, starting with our largest country and one that remains the most heavily debated by the market. In Saudi, the pragmatic decision about a year ago to rationalize all capacity from prior plants was well documented in the industry and activity on the old site has largely stabilized. In gas, the ambitious publicly expressed target of reaching 50% gas power generation and 50% renewable by 2030 continues to fuel what was always understood to be a fantastic growth story for domestic gas consumption in the Kingdom. NESR remains heavily focused on unconventional gas development in close collaboration with our customer, and the fruits of this partnership span many aspects of the value chain, including efficient completion delivery, innovation around consumables, and circular water technologies. In February, NESR announced the groundbreaking of a new operational facility in King Salman Energy Park, known as SPARK, which deepens NESR's commitment to continuous improvement in the Kingdom, specifically around its operation in unconventional gas, building the latest frac operation reliability and failure prediction center in the middle of the Jafurah field. The UAE is also asserting strong leadership on unconventional gas development and continues with its program to ensure oil capacity of 5 million barrels per day. There may be additions to their gas program by international partners in the future, and we are currently engaged at multiple levels in addition to our core business in the country. Stepping back, the MENA natural gas theme extends beyond the leadership of Saudi and UAE. We believe the region is in the early stage of a broader gas expansion journey, with different countries approaching this at varying degrees of urgency and speed. The global artificial intelligence arms race is materializing, for which vast increases in power supply will be needed, and gas will fill much of this incremental demand. The MENA region can play a central role in the advent of AI, data centers, and high-performance computing, underpinned by high-quality natural gas and the cheapest renewable resource globally. We believe that this natural gas theme adds to the stability and visibility of continued activity growth in MENA for the foreseeable future. Kuwait is arguably the brightest spot in the region when it comes to rapid growth. The recent success of the country in adding rigs is a testament to the vision and commitment of its leadership. The desire to reach 4 million barrels per day capacity and the latest discovery of offshore deposits translate to growth projection for several years to come. This month, we signed an MOU with the leadership of KOC to form the first Ahmadi Innovation Valley, AIV, that will feature a few selected service companies to address specific operator challenges in joint research and technology excellence. Elsewhere, Oman and Iraq remain largely stable in terms of activity, and for NESR will be areas of focus for new technology deployment, including ROYA, where we have newly awarded directional drilling contracts in Oman. North Africa is another notable bright spot, especially Libya, which is exhibiting a step change in activity and innovation. Over recent weeks and months, we've spent a lot of time in the country meeting with customers and industry leaders as the country has resumed activity. Libya has already added more than 40 rigs on plan to advance oil production from 1.4 million barrels currently to 1.6 million barrels over the medium term with aspiration of 2 million barrels per day in the future. Our thesis of maintaining a calibrated presence in Libya since the start of the company is playing out, and NESR stands ready to drive growth in the country across a diverse portfolio. Moving to the technology highlights in the fourth quarter, beginning with a key pilot milestone for our ROYA directional drilling platform. As previously announced, we successfully executed a flagship single-run wellbore delivery in Kuwait with our RoyaSteer Rotary Steerable and RoyaSteer measure-while-drilling tool, hitting all of our internal performance benchmarks. Combined with earlier success with our RoyaSeek logging-while-drilling tool, we are confident in the commercialization path of ROYA this year. Our plan is to continue deliberate, extensive testing in different formations and drilling environments while executing on our contracts in three countries. Turning to NEDA, we are encouraged by the innovation and prospect before us and believe that 2025 will be a pivotal year for NEDA expansion and growth. In the fourth quarter, we successfully delivered over 2,000 metric tons of CO2 for the CCS reservoir injection pilot in Indonesia. The country remains active across traditional oil and gas, geothermal, and carbon capture and sequestration, and we are excited for the future there. We also continue to develop our holistic circular mineral and water process in the GCC, for which we have access to potentially valuable brine and are among the few companies generating positive results in the field, not just the lab. The water solution we've adapted from outside the oil and gas industry represents the portfolio approach we are taking to produced water. Our fourth quarter investment in Salttech formalized our strategy around zero liquid discharge to reuse as much industry water as possible. This produced water evolution doesn't stop just at liquid. Increasingly, the industry is discussing potential mineral extraction from produced water, and the recently announced transition mineral joint venture between our largest customer and the largest metals and mining company in the MENA region is evidence of this potential. Given our piloting work in mineral extraction over the past several years, NESR is strategically positioned to contribute to cross-sector collaboration, and we anticipate updating the market throughout the year on our work in this area. Just as we take an open technology platform approach to our core service business, we see our NEDA portfolio and access to brine in the field as a platform to plug in additional mineral recovery solutions, including direct lithium extraction. I'm thrilled with the potential and opportunities in front of us in 2025 and beyond, following another remarkable year in 2024. Expectations may be low for our industry, but we see NESR as extremely well positioned within this macro framework and believe the MENA market could surprise to the upside. More exciting announcements to come, but for now, I'll conclude and hand over the call to Stefan to discuss our financials in great detail.

Thank you, Sherif. Good morning to our audience in the US and good afternoon, good evening to our audience in the Middle East, North Africa, Asia and Europe. I'm very pleased to give an update on our strong financial performance for the fourth quarter of 2024 and for the full year 2024. In summary, despite ongoing macro volatility worldwide and geopolitical uncertainty in the Middle East, NESR achieved stellar results for the fourth quarter and the full year of 2024. First, let's cover revenue. Our overall fourth quarter revenue was a record $343.7 million, which was up 2.2% sequentially and up 11.8% year-over-year, outpacing the broader market. Revenue for the full year 2024 was $1.3 billion exactly, up 13.6% year-over-year, with exceptionally strong activity in the Gulf countries. Now turning to adjusted EBITDA. Adjusted EBITDA for the fourth quarter of 2024 was also a record $87.2 million with near-record margins of 25.4%, up 157 basis points sequentially. Full year adjusted EBITDA was $310.1 million, up 18.2% year-over-year, with full year margins up 93 basis points to 23.8%. Interest expense for Q4 2024 was $9.9 million and full year interest was $39.9 million. Full year 2024 effective tax rate was 20.1%, which included a tax release of $3.8 million. Normalizing for this adjustment implies a full year 2024 ETR of around 24.1%. Turning to EPS, earnings per share adjusted for charges and credits was $0.30 for the fourth quarter of 2024 and $1.04 for the full year 2024, which was up 96% year-over-year. The charges and credits impacting adjusted EBITDA and adjusted EPS were primarily two items in Q4 2024: cost of remediation of controlled material weaknesses, which should moderate dramatically after the conclusion of the 2024 audit this month, and an impairment of a small investment. Now turning to our cash flow and liquidity, which I'm very proud to discuss as a point of significant emphasis over the past several years. Our cash flow from operations during the fourth quarter of 2024 was very strong as we generated $46.3 million. For the full year 2024 period, we generated $229.3 million. We had significant customer collections in Q4 2024 which drove our DSO at year end to a company best. Free cash flow for the full year 2024 was $124 million, a conversion rate on adjusted EBITDA of 40.1%, underpinned by strong working capital execution in 2024 on top of strong execution in 2023, despite significant top-line growth in both years. The free cash flow was principally used to pay down bank debt. As a result of strong operating results and good cash flow conversion, our net debt-to-adjusted EBITDA remains below our goal of one times for a second consecutive quarter. We ended the year at a ratio of 0.89 times. For comparison, we were at 2.8 times at the end of 2022 and 1.5 times at the end of 2023. Our gross debt at year end 2024 was $383 million which represents a reduction of $153 million over the last two years and our net debt was $275 million. Working capital levels remained relatively flat throughout the year despite significant top-line growth. Working capital efficiency has greatly improved due to process and system enhancements resulting in a DSO decrease of 22 days over the last 24 months and a decline in inventory levels of 12% over the same period. CapEx for the full year 2024 was $105 million, slightly below budget due to delivery timing on certain pieces of equipment, which will now come in H1 2025. All of the above contributed to a significant improvement in the financial return profile of the company during 2024. On a trailing 12-month basis, our return on capital employed, or ROCE, reached 11.6% in Q4 2024, a company best and concurrent with our robust growth investment strategy. Now on to housekeeping topics. We've spent the better part of the last two plus years reshaping our back office and the company overall with new and updated processes, procedures and controls, as well as implementing the latest software upgrades to our ERP system. We are confident that we have demonstrated significant progress on remediation of our internal control material weaknesses during 2024 and we’ll give a detailed update in our 2024 20-F when it’s filed at the end of March. In summary, operational execution across our key countries remained strong in the fourth quarter of 2024, while our updated processes and procedures and controls have transformed the back office and contributed greatly to our working capital efficiency. These drivers combine to generate record results for the full year 2024 with strong revenue growth, strong adjusted EBITDA, and healthy cash flow conversion, the latter of which has been used to pay down debt and strengthen the balance sheet. Looking ahead on capital allocation, there are several discrete growth opportunities not currently included in our budget that could require an investment decision around mid-year. It is also worth noting that our expanding base of activity and push to larger tender opportunities requires additional liquidity in the form of bid bonds and performance guarantees, which we view as a favorable competitive barrier in the MENA region. However, the strength of our balance sheet gives us flexibility on our growth plans and should market conditions change drastically from our current outlook, we could evaluate other capital allocation alternatives, including returns. We'll update further on this topic as the year progresses. The outlook for the Middle East and North Africa region remains favorable, upstream spending remains durable, and NESR continues to focus on delivering profitable revenue growth, execution efficiency, technology expansion, debt reduction, and working capital efficiency to drive future financial performance. On behalf of management, I'd like to thank our entire workforce for their outstanding efforts in delivering these results, together with our directors, shareholders, and banking consortium for their continued support. The future for NESR continues to look good. Now I turn the call back to Sherif.

Thanks, Stefan. Let me conclude by reiterating the key takeaways from the fourth quarter and outlook. First, while the market came into the year with extremely low expectations for the sector and while the commodity backdrop remains uncertain, we believe that MENA upstream activity will remain a relative bright spot for growth. The gas development theme is central to this view. Although competitive contracts in our business bring multi-year visibility to the company and overall profitability remains healthy as the sector remains disciplined. We expect 2025 to follow the same seasonal pattern as 2024, with the first quarter slowest impacted by fewer operating days and the full month of Ramadan in March, followed by a sequential activity build through the year. Overall, our 2025 growth outlook for NESR relative to the market remains unchanged. Second, within the solid MENA backdrop, NESR is extremely well-positioned to outperform due to: one, favorable project exposure particularly related to the broad-based gas development theme; two, our strategic positioning in areas such as Kuwait and Libya, which are expected to lead growth on a percentage basis. Third, our frontier technology growth leg remains on track, with pilot success in ROYA now duplicated in several countries, and our unique NEDA positioning and investment in produced water mirroring the announcement and commitment recently made by our largest customer and cross-industry partners. Whereas ROYA is expected to be a more linear driver of growth from here, NEDA and our water business represent massive potential that is being defined in real time but remains a long-term strategy with expected catalysts this year. I would like to close by thanking all of our employees and their families for an extremely strong close of 2024, and thank our partners and customers for their continued support and belief in NESR. With that, I pass over the call to the operator for your questions. Melissa?

Thank you. Our first question comes from the line of David Anderson with Barclays. Please proceed with your question.

Okay, great. Thank you. Good morning, Sherif, how are you? I wanted to ask you about your outlook in a couple of different ways. Maybe first, can we just start, you see the region spending patterns over the region, how you see that playing out during the year? The peers, maybe with one exception and most of the GCC continue to ramp up, almost sort of sites and the oil price, meanwhile OPEC bring back barrels to the market, would there be a further reduction in Saudi if oil prices languished? So how are you thinking about missing pieces during the year and overall, would you expect overall spending growth in the Middle East like mid-single digit? Is that kind of where you are heading?

Yeah, to answer your questions: the Middle East will see moderate growth in 2025 compared to 2024, likely single-digit growth, though it depends by country. In Saudi, there will be a drop in conventional activity and an increase in unconventional. Kuwait will have no difference in growth and will see double-digit growth year-over-year. Oman and Iraq are largely stable. UAE will grow again in unconventional, and ADNOC's announced program for 144 wells and $1.7 billion spend is going ahead. In North Africa, Libya shows massive growth, though timing depends on how budgets are released and funding is transferred from the central bank to operator companies. Libya has already added rig activity and the rig count has increased substantially. Overall for the region, I would say low single digits, and we expect NESR to outpace that and double the market growth as we've been doing; we expect to do the same in 2025.

So that was my next part of my question, focusing on NESR and your position, particularly in Saudi. I was wondering if you could talk about how the mix has changed. If we think about what's come out of the last 12 months in the Kingdom, we've seen a reduction offshore and in some conventional spending, but Jafurah is a different story. Can you talk about how that changed your mix, what's going on there, how Jafurah is progressing, your exposure, and how you're thinking about that over the next couple of years?

If you look at offshore, it was well documented the reduction from prior capacity; jack-up counts declined from all-time highs and have stabilized. On land rigs, they released some rigs as well and those counts are now stable. So from the oil side, there is stability. On gas, there was no decline, and the unconventional program is increasing substantially as they move from roughly 8,000 stages toward a goal of almost 25,000 stages a year. That growth will continue and the plan is on track. Our exposure is strong: we've been involved from the beginning of Jafurah and continue to participate. There is huge potential; tenders will be issued as usual by Aramco, including direction drilling and completion work. Multi-award structures are likely, and timing may be in the second half of the year or end of the first half. We are positive about our positioning. Regarding OPEC and production flexibility, their statements indicate they have the agility to add oil when needed, not to flood the market. These countries need oil prices generally above $60 and they are unlikely to let prices fall substantially below that; they want the ability to replace any lost production, which helps prevent oil prices from spiking to $100–$120. Saudi in particular holds that flexible capacity and can add rigs quickly if necessary. That capability offers a level of stability and optionality for activity, which could be positive for service providers if activated, but we are not assuming a market flood — rather, readiness to replace outages. Overall, the Saudi position supports activity optionality without implying a deliberate price crash.

Very helpful, Sherif. Thank you. If I could just squeeze one more in here: could you talk about your capital allocation program from a bigger-picture view? It sounded like there's potentially still some M&A. Are you more likely to spend capital internally on building out technologies or product lines, or are you thinking about footprint expansion? How are you thinking about NESR over the next few years strategically?

As Stefan explained, we will continue to spend CapEx for both maintenance and growth as the company expands. We are focused on enhancing our ROYA drilling platform and our NEDA decarbonization portfolio. We are less focused on large geographic M&A since we are present in most core countries and are solid in our footprint. We will look to acquire or partner with technology companies when it makes strategic sense, for example around mineral recovery and direct lithium extraction if projects become economical. On ROYA, we will continue extensive testing and add key features, which may require venture-style investments or partnerships. By mid-year we will reassess our cash flow and growth opportunities; if conditions are appropriate, we will consider capital returns such as buybacks or dividends, subject to Board approval. We'll provide more detail in the second half of the year.

Thank you very much for taking all my questions, Sherif.

Thank you, sir.

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

Yeah, good morning, gentlemen. I wanted to see if you could elaborate a little bit on the margin performance in the fourth quarter and thoughts on potential margin progression in 2025, understanding there are typically seasonal factors in Q1 which is cited. But I wanted to see if you could address your confidence that these types of margins could be sustainable and thoughts for 2025? Also, could you elaborate on commercially what's going on for NESR in Kuwait? You highlighted being selected among a small number of operators. Could you highlight some of the work you're doing for KOC and perhaps elaborate on their offshore discovery and plans to develop that?

We had very good margin performance in Q4 driven by strong service quality and operational execution. When you have very good execution, margins improve. For 2025, we expect margins to track 2024 and be similar, acknowledging seasonal Q1 effects. We expect high single-digit growth in 2025 and anticipate more competition, so margins should generally track 2024 levels.

That's helpful. And Sherif, could you elaborate on the commercial situation in Kuwait and the work with KOC, and the offshore discovery developments?

Kuwait is a very bright spot. We started later there and have grown to become the third-largest country for NESR with very strong activity and drilling rig counts. Kuwait's vision is to reach 4 million barrels per day capacity from roughly 2.5–2.6 million today. The recent offshore discovery is significant: they drilled two successful exploration wells with excellent results—one estimated around 3 billion barrels of resource and another around 1 billion. They are on well number three of a planned six-well program, and delineation will determine the development plan, which could involve platforms, jack-ups, and substantial tendering. For NESR, Kuwait is an anchor country where we aim to provide 10 to 12 product lines and heavily tender in 2025. We have already secured several contracts and are pursuing more. We signed an MOU with KOC to be one of five selected companies in the Ahmadi Innovation Valley, where we'll build an innovation center, host technology partners, and perform joint research with the operator. This positions us deeply within the customer's ecosystem and is expected to support long-term growth in that country.

Great, thanks, Sherif.

Thank you. Our next question comes from the line of Jeff Robertson with Water Tower Research. Please proceed with your question.

Thank you, good morning. Sherif, as the emphasis on unconventional resources grows, will that have any material impact on the product mix and margins for NESR? Secondly, on the ROYA platform, what's the pathway to continue testing and ultimately use that technology in new contracts?

Unconventional work is already part of our mix and will continue to grow. As activity grows and efficiency improves, our aim is to offset cost increases through efficiency and technology so margins can be maintained. Saudi's Jafurah field is state of the art with high-intensity operations, and efficiencies continue to improve, for example by increasing stages per day. We're bringing U.S. partners and advanced technologies to help improve efficiency and cost curves. On water and produced water recycling, mineral extraction can create additional revenue streams which would support margins and sustainability. Regarding ROYA, our platform—RSS, MWD, LWD—has proven successful. We are performing deliberate, extensive testing in different environments. After each job, we perform rigorous inspections and destructive testing to ensure the tools are rugged and reliable. As we validate performance across jobs and formations, the tool is being commercialized and we are charging for jobs where performance matches market standards. By H2 this year we expect to determine commercial reliability broadly; while teething issues may occur, the tool should be reliable enough to be considered a commercial standard.

Thank you. Our next question comes from the line of Arvind Sengar with Geosphere Capital. Please proceed with your question.

Thank you. Good morning, Sherif. Question on the valuation gap between where NESR is valued and similarly positioned companies in the Middle East and North Africa that are listed in the Middle East. It's a valuation gap that you can drive a truck through. Any thoughts on how you might close that gap?

Good question. Our growth story is unique and perhaps underappreciated. Companies listed in the Middle East such as ADNOC Drilling and others are valued differently given local market dynamics. There's limited fungibility between exchanges, so options include ADRs or cross-listings, but each has trade-offs. We regularly monitor possibilities and keep dialogue open with exchanges and stakeholders. We want the market to better appreciate our performance, and we will continue evaluating listing and other strategic options if they make sense.

Understood. One last question: the warrants—are those expiring this summer?

We extended the warrants until June 2026. This extension will appear in the 20-F filing.

Thank you. Our next question comes from John Ajay with Occam Crest Management. Please proceed with your question.

Yes, hi. I'd like to see if you can quantify a base case for overall weighted average market growth for 2025 and a base case for NESR growth. More importantly, I'd like to understand your level of visibility and confidence in delivering that level of base case NESR growth, and what are some of the key assumptions that could swing it one way or the other, such as oil prices or geopolitical developments? Regarding oil prices, my understanding is that 80% of your business is not oil-price sensitive. I'd like to understand what adverse oil price scenario might cause overall market growth or your growth to be lower and how much sensitivity exists. Finally, you talked about exciting growth opportunities and deploying capital in organic opportunities—how significant could these be on top of the base case?

That's a lot of great questions. For the MENA region, 2025 growth versus 2024 will vary by analyst assumptions, but broadly the region is expected to be in the low single digits. For NESR, we expect to outpace the market and target approximately 8% to 10% growth given our smaller size, contract visibility, and ability to add new services. Our confidence comes from contract backlog, tender activity, and country-specific growth drivers. If oil prices fell significantly, countries could curtail projects and activity could flatten or decline, which would impact everyone. However, many of the gas development programs are less oil-price sensitive because they are aimed at domestic consumption and strategic objectives around power, cooling, and data centers. My view is oil prices will remain in the $60–$70 range, which underpins current budgets. If prices fell below $50 and stayed there, governments could revise budgets and reduce activity, which would negatively impact growth and margins. On sensitivity, a meaningful sustained oil-price shock would reduce growth and could compress margins. Regarding upside opportunities—NEDA, ROYA, mineral recovery, direct lithium extraction, and new tenders—these could layer on significant revenue if commercialized and scaled. We expect to have more clarity mid-year on the size and timing of these opportunities. At that point, we'll reassess capital allocation and may consider returns if cash generation and opportunities permit.

Great. Well, thanks for the update. Really appreciate it.

Thank you, sir.

Thank you. That concludes our question-and-answer session. I'll turn the floor back to Mr. Foda for any final remarks.

Thank you very much. We really appreciate your time and your belief. Again, I'd like to thank you all for your support and belief in the journey. Thank you very much—very excited for 2025.

Thank you. This concludes today’s conference call. You may now disconnect your lines at this time. Thank you for your participation.