Question-and-Answer Session
Operator
(Operator instructions) And our first question comes from the line of James West with Barclays Capital. Please go ahead.
James West - Barclays Capital
Hi morning guys.
Bobby Parker
Hello James.
Dave Mannon
Hello James.
James West - Barclays Capital
Bobby or Dave, as your international land rigs roll-off contract and you are success in getting new contracts, could you characterize the magnitude of the day rate declines that you are seeing kind of where leading that rates are versus where they were maybe six months ago, and I know it probably varies by region, but maybe some color there?
Bobby Parker
James, I will start and let Dave add some color. Yes, it does, it certainly, let’s start with the fact it varies by region, certainly some areas are stronger than others, but in a general condition I would say that we are in a ten to possibly extreme 15% drop in some of the rates that we have seen where we have re-contracted the rigs.
Certainly, when we see that as we mentioned in our notes our challenge is to meet that with reduced cost and efficiencies, which we certainly work at. Then on top of that we look for what else can be gain out of these, if we are going to reduce the rate, can we get an extended contract or can we get some benefits for our side when we re-signed out even as it – it is lower rate.
Clearly with the rate run-up we had in the last couple of years, which you are familiar with, you know we have got some very nice international margins. So, if are going to, I guess the nice way of putting it, if we can get buy with a 10%, 15% rate reductions with the market we are operating in.
I won’t say we are happy, but certainly better than some of the other markets around the world. So, if Dave would you add some color?
Dave Mannon
I think Bobby covered it well. You know, we are seeing a fair amount of demand for tenders in the last quarter and if you compare those to the tenders that we had – request that we had this time last year it is up substantially. So, we see increase in demand in the CIS/AME, area also in the Latin American area, and also Asia-Pacific, so all three of our core markets we are starting to see some really robust tender activities.
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