Operator
Good morning, everyone, and welcome to Geodrill’s First Quarter 2026 Financial Results Conference Call. [Operator Instructions] I would like to remind everyone that this conference call is being recorded today, May 11, 2026.
Before we begin, certain statements made on today’s call by management may be forward-looking in nature and as such, are subject to various risks and uncertainties. Please refer to the company’s press release and MD&A for more details on these risks and uncertainties.
And I would like to turn the call over to Mr. Dave Harper, President and CEO of Geodrill. Please go ahead.
David Harper
President, CEO & Director
Thank you, operator, and good morning, everyone. Welcome to Geodrill’s Q1 2026 conference call.
Joining me on the call today is Greg Borsk, our Chief Financial Officer.
So the first quarter of 2026 reflected continued strength in drilling demand across our core markets alongside near-term margin pressure as we worked through higher operating costs, currency movements and the ongoing ramp-up of our Chilean operations. While margins were compressed in the quarter, the fundamentals of the business remained strong.
Activity levels across West Africa, Egypt and Chile were healthy. Our customer relationships remain deep and long-standing, and our fleet continues to be highly utilized across programs, averaging 76% utilization throughout the quarter, but perhaps more importantly, ended the quarter much stronger than it began. Operationally, we remain strong in West Africa and Egypt, supported by multi-rig contracts, established infrastructure and experienced local teams. The regions continue to provide a solid foundation for the business.
In South
