Good morning, and welcome to the Tidewater Reports Results for the 3 months ending September 30, 2021. My name is Brandon, and I'll be your operator for today. [Operator Instructions] Please note, this conference is being recorded. I will now turn the call over to West Gotcher, Vice President of Finance and Investor Relations. You may begin, sir.

Thank you, Brandon. Good morning, everyone, and welcome to Tidewater's earnings conference call for the 3 months ended September 30, 2021. I'm joined on this call this morning by our President and CEO, Quintin Kneen; our Chief Financial Officer, Sam Rubio; our General Counsel and Corporate Secretary, Daniel Hudson; and our Vice President of Sales and Marketing, Piers Middleton. During today's call, we'll make certain statements that are forward-looking and referring to our plans and expectations. There are risks and uncertainties and other factors that may cause the company's actual performance to be materially different from that stated or implied by any comment that we make during today's conference call. Please refer to our most recent Form 10-Q for additional details on these factors. This document is available on our website at tdw.com or through the SEC at sec.gov. Information presented on this call speaks only as of today, November 10, 2021. Therefore, you're advised that any time-sensitive information may no longer be accurate at the time of any replay. Also, during the call, we'll present both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in yesterday's press release. And now with that, I'll turn the call over to Quintin.

Thank you, West. Good morning, everyone, and welcome to the Third Quarter 2021 Tidewater Earnings Conference call. Joining me in presenting our prepared remarks, as usual, are Piers Middleton and Sam Rubio. I will open the call with some general commentary on the quarter. Piers will cover the markets in the various geographies in which we operate and then Sam will wrap up the prepared remarks with an overview of the income statement, OpEx, G&A and the balance sheet. And then, of course, we'll open it up for questions. Our call this quarter comes at an exciting and important time for Tidewater. As noted in recent press releases, we've recently successfully priced a new $175 million senior secured note in the Norwegian bond market and the refinancing transaction is scheduled to close in less than a week. These new notes will mature in November of 2026. The proceeds from the note issue will be used to repay all of the existing indebtedness on our balance sheet, which includes the old notes and the legacy Norwegian ship financing. The refinancing is set up to be cash neutral. So upon closing next week, we expect to continue to have approximately $150 million of cash on hand. In addition to our new notes, we anticipate closing on a new $25 million revolving credit facility and establishing a $30 million at-the-market or ATM equity issuance facility shortly after the closing of the refinancing transaction. We don't anticipate the need to utilize our revolving credit facility or the ATM in the near term, given our significant cash position, but both will be available to provide additional cash as needed. Upon closing the refinancing transaction, the revolving credit facility and the ATM facility, Tidewater's capital structure and liquidity profile will be materially strengthened, and these new…

Thank you, Quintin, and good morning, everyone. Before Sam goes through our numbers in greater detail, I want to talk through some of the themes that emerged during 2021 and that we expect to drive the market going forward into 2022 across all of our regions. The outlook for the sector continues to brighten. And while we still see some COVID-19-related pressures, we are on the whole seeing improved vessel demand across all of our regions, which is helping us to move past the lows of 2020 and resume the progress we saw during the 2018 to 2019 period. Stronger sentiment also appears to be driving an uptick in E&P spending for the year with a full year CapEx of [$81 billion] expected to be sanctioned globally for 2021, which equates to a 3% rise above the 2014 to 2020 average CapEx spend, whilst only a small percentage increase, still a positive sign for the future. This improved sentiment has been reflected by a steady increase in vessel tendering activity throughout 2021 across all regions. And whilst vessel requirements tend to follow the industry norms we're used to. We're also seeing more and more of our customers, both the IOCs and NOCs focusing their tender requirements around sustainability and emissions matrices from their suppliers. We believe that for a company like Tidewater with our strong balance sheet, this creates an opportunity for us to continue investing in the latest technologies to upgrade our fleet to meet our customers' current and future demands on emissions and sustainability. We view this as a particularly advantageous position as many of our competitors are unable to make these investments due to their continuing financial constraints. Our continued investment in our fleet not only puts us in a great position to be a first choice…

Thank you, Piers, and good morning, everyone. I would now like to take you through our financial results and discuss some key points that make up these results. My discussion will focus primarily on the quarter-to-quarter results of the third quarter of 2021 compared to the second quarter of 2021. As noted in our press release filed yesterday, we reported a net loss for the quarter of $26.3 million or $0.64 per share. From an operational perspective, we showed signs of improvement. Our revenue for the third quarter of 2021 was $92.4 million. This is $2.4 million or approximately 3% more than the second quarter of 2021. The increase in revenue was driven by a nice increase in active utilization of 82% compared to 78% in the previous quarter. Our average active vessel count for the quarter increased by 1 to 119 from the second quarter, and we had one extra day of operation in the current quarter. We did see our average day rate decrease slightly from Q2 to $10,228 (sic)[$10,288] per day. Gross margin for Q3 was 29%, which was slightly higher than Q2. Vessel operating costs for the quarter was $65 million, an increase of $1 million from Q2. The increase in overall cost is due to operating one more active vessel, continued ongoing pandemic costs. We had one extra operating day in the quarter, and we also reactivated 3 vessels. In the third quarter of 2021, we recorded a $2.2 million impairment charge. The charge is made up of $1.9 million related to obsolete spare parts resulting from our physical inventory observation and $300,000 net charge related to the addition and transfer of the vessel into and out of our asset held for sale category. In the quarter, we sold 6 vessels and other assets for…

Well, thank you, Sam. And on that note, I'm going to hand it quickly to Brandon, and we will open it up for questions.

[Operator Instructions] So at this point, we have no questions. I would give a few more seconds just in case.

Well, thank you, everyone. We look forward to updating you again in March. If you have any questions in the meantime, please feel free to reach out to us. Goodbye.

Thank you. Ladies and gentlemen, this concludes today's conference. Thank you for joining. You may now disconnect.