Lasse Petterson: I think we have seen the bad headlines, both from Orsted, from BP, from Equinor. And the others are proceeding forward. So, particularly for the PPAs that had the inflation adjustments in them, they are continuing as planned.
Jon Tanwanteng: Got it. Okay. Scott, a question for you just on the utilization. You mentioned the hydraulics wouldn’t be — Q2, I think. So, what’s your expected utilization for Q4 and Q1 just on the number of vessels you expect to have out there?
Scott Kornblau: Yes. And we mentioned Q2 because that’s when the LNG works, and that’s going to keep a number of the hydraulics busy for a period of time. We still have utilization and work for those in Q4 and the first half of Q1 right now continue to bid more. So, Q4 utilization just on the Hydraulics will be more than double what we saw in Q3. So again, they are starting to get busy. As I mentioned, Q1 is starting to shape up. Then Q2 and beyond, we have a number of those that will be tied up on the two LNG projects.
Jon Tanwanteng: Understood. Thank you. And then just quickly, is there an update on the competitive environment and how people are bidding now that there’s more projects and work out there?
Lasse Petterson: Well, the competitive environment — the dredging industry in the United States is very competitive, and there is a number of new vessels that have been added to the fleet over the last couple of years, both in the Hopper segment and in the cutter segment. So, we have seen some aggressive bidding on projects, and you can see that from the US — engineers records that there is quite some competitive bidding on some of the projects that has been awarded recently. But the market is also very good. Strong capital projects announcements from the Corps. So, I’m optimistic about the market, but just with our current backlog and also with the number of projects that are now coming to bid as we estimate over the next six months.
Jon Tanwanteng: Okay, great. Thank you.
Operator: Thank you. Our next question will come from William Hong of Reorg Research. Your line is open.
William Hong: Hi good morning. Thanks for taking my question. Perhaps to Scott, you can tackle this one. When do you guys expect to receive notice of approval for your Title XI application? Is the company currently seeking any additional sources of financing to fund your CapEx initiatives?
Scott Kornblau: Yes. So, as I mentioned in the prepared remarks, we did hit a key milestone a few weeks ago, which was the next step we’ve been waiting on. Now that MARAD has done their due diligence, they’re statutory acquired to get a third-party review. That is what’s ongoing right now. And that process is still ongoing. My guess, and again, each one of these projects are different and not to have a specific time line. If I had to guess, I think this is kind of a late Q1, early Q2, just kind of based on the cadence and the pace that this is going. And then the second part of your question, yes, I’m not going to get into all the nitty-gritty of what we’re looking at. But yes, we’re having conversations in parallel with MARAD with many others to get through this new build program.
We still — we’ll take delivery of the Galveston later this year, but we still have not only the Acadia, but another hopper, the Amelia Island. So, we still have a lot of CapEx to go. So ,we’re going to continue to look at initiatives. I mentioned that we did bring in about $30 million in the last week or so on a sale leaseback, and I’ll continue a lot of the conversations that I’m having in parallel with MARAD.
William Hong: All right. Thanks for the color. Very helpful.
Lasse Petterson: Thanks for the call.
Operator: Thank you. Our next question will come from Jacob Christensen of Axebrook Capital. Your line is open.
Jacob Christensen: Hey guys. Thank you very much. Could we talk about the CapEx investment cycle and sort of how much CapEx you expect for the rest of the year and give us a way to think about what to expect for 2024?
