We acknowledge this convertible debt instrument is potentially diluted to our existing shareholders. But convertible debt instruments such as the one we issued rarely convert before maturity and even then, we have the option to sales in cash like traditional debt. Brent will provide more details on this transaction in his remarks.
Internationally, we remain very busy, in Mexico, we have a nice pipeline project to complete and we have about five projects on our radar screen to bid, about half of which could commence this year.
In Australia, we are excited about the prospects for our newly announced alliance with Fugro in our joint venture the Toisa Paladin. Fugro is an impressive company, in a large, diversified, geotechnical survey and subsea provider with a major presence in Australia.
The Toisa Paladin is a world class asset. She was built in 2007. She is a 100 meter class DSV, diving support vessel with an 18 man saturation diving system. She’s a state-of-the-art ship, capable of working just about anywhere in the world.We already have booked work for the ship in Malaysia and then in Trinidad that will bring it to the end of the year. Under the alliance we intend to split profits equally between the two partners. We believe this alliance with such a high spec asset will help us grow our presence in Australia and certain other areas, and we’re very excited about the prospects going forward for the Paladin. Also we started our first project in West Africa and continue to bid for more work in that region. If you turn to slide five, our backlog stands at about $238 million, which is significantly ahead of last year’s second quarter backlog of $176 million. While the backlog is down sequentially, it’s common for us to build a backlog in the first half of the year so we’re encouraged with backlog level at this point. Read the rest of this transcript for free on seekingalpha.com