Ann: FY24 Results Presentation, page-11

A good thing perhaps to remember in these capital intensive & high fixed cost businesses is that utilization plays a very big part by way of leverage to returns....a 10% reduction in utilization has a larger multiplier effect on earnings & ROIC to the downside....perhaps in the order of 20-25%. Conversley that works the other way too to the upside. That, considering the subdued outlook commentary and as you note the telegraphed ratcheting down of shareholder returns to the 75% threshold this year will see a sizeable reduction in capital coming back to shareholders this year & the yield pigs will have a tendency to look elsewhere which is what we're seeing with the sell-side currently. Unless they pick up a new contract of at least 4-5 rigs I think it'll be a real struggle to just maintain 2024's numbers. I didn't see the reduction in utilization coming and it goes much further than the Grosvenor impairment. I think I forgot cyclicals are trading stocks, just didn't see a downturn in demand that's here.