Warm welcome to everyone, and thank you for joining Borouge's second quarter earnings call. My name is Samar Khan, and I'm the Vice President of Investor Relations at Borouge. I have with me today the Borouge management team: Chief Executive Officer, Hazeem Sultan Al Suwaidi; Chief Marketing Officer, Rainer Hoefling; Chief Operating Officer, Hasan Karam; and Chief Financial Officer, Jan-Martin Nufer. We'll begin with a short presentation by the management team in respective performance for the second quarter, as well as our outlook for the rest of the year. We'll then open the call to your questions. I'll now hand over to Hazeem to present highlights from the quarter. Over to you, Hazeem.
Thank you, Samar, and thank you all for joining us today. I'm pleased to announce that Borouge has delivered yet another outstanding set of results. During the second quarter, we achieved the highest ever quarterly production volumes, strong sales volumes, and healthy pricing premia, while maintaining cost discipline and continuing to drive efficiencies throughout the business. Borouge reported a net profit of $308 million in Q2, representing an increase of 33% on a year-on-year basis. On a half-year basis, net profit increased by a significant 35% year-on-year to $581 billion. On the next slide, I want to cover Borouge's excellent track record since its IPO. I would like to strongly emphasize two main messages. First, that Borouge has delivered resilient results and outperformed its peers and market expectations in a very challenging polyolefins market.
Borouge's abilities to maintain industry-leading profitability margins stems from its robust business model and management's proactivity in navigating dynamic markets and driving efficiencies. As a result, the company benefits from high cash generation and a strong balance sheet, which enables the distribution of a substantial dividend, contributing to the highest total shareholder return among our industry peers since the IPO. The second key message is that Borouge is well positioned, both strategically and financially, to pursue accelerated growth. As you are aware, we are pursuing several growth initiatives, and I will cover this topic in the later part of the presentation. With that, I would now like to hand over to Rainer to provide a commercial update.
Thank you, Hazeem, and good afternoon, everyone. In quarter two, 2024, blended average selling price across polyethylene and polypropylene were relatively flat versus the previous quarter, and down 2% year-on-year. In quarter two, benchmark prices for both polyethylene and polypropylene improved slightly by 2% and 4%, respectively. While on a year-on-year basis, benchmark prices for polyethylene remained flat, and for polypropylene increased by 4%. During the quarter, Borouge was able to achieve premia above benchmark prices for both polyethylene and polypropylene, in line with management's over the cycle premia guidance of $200 per ton for polyethylene, and $140 per ton for polypropylene. On a half-yearly basis, premia for both polyethylene and polypropylene remained above management guidance at $209 per ton, and $149 per ton, respectively.
Polyolefin prices remained stable during quarter 2, 2024, due to upbeat crude oil prices, generally low operating rates at marginal producer, and various logistic-related constraints. In quarter 3, we expect polyolefin prices to remain within a narrow band, supported by ongoing global logistic bottlenecks and elevated feedstock costs. That said, Borouge remains well positioned versus industry peers and confirms to deliver product premia above benchmarks over the cycle, based on its strategic focus on differentiated and durable products, geographic optimization, and its agility to manage current and upcoming market challenges. I will now discuss sales volumes for the period before I ask Dr. Hasan to take us through some operational highlights from the second quarter. Quarter 2, 2024, sales volumes remained healthy at 1,311 kilotons, up 16% versus the previous quarter, and 9% on a year-on-year basis.
Sales volumes for polyethylene were up by 9%, and for polypropylene were up by 25%, respectively, on a quarter-on-quarter basis. Our sales volumes for energy and infrastructure solution represent 41% of our overall sales volumes in quarter two. This is part of Borouge's strategy to focus on durable and high value-add products, and where we can realize higher pricing premia. Borouge remains committed in its focus on innovation and strives to generate at least 20% of annual sales volumes from new products. The 2024 product pipeline includes new products offering differentiated solutions to our customers. The Asia Pacific market continues to be the largest destination for sales in quarter two, with 66% of total sales volume, followed by the Middle East and Africa with 29%. Other regions represent 6%.
Finally, I would like to add to what Hasan was earlier saying in relation to delivering on the equity story. In particular, Borouge's commercial excellence has been demonstrated very consistently in the financial performance of the company. In a challenging environment, moving sales volumes between markets with better margins, while keeping costs in check and innovation at a high pace, is a unique feature of Borouge's business model. This is the result of company-wide collaboration, driven by the tremendous efforts and commitment of our talented people. With that, I will hand over to Dr. Hasan.
Thank you, Rainer, and good afternoon, everyone. I would like to begin with a few words on our continued leadership and safety performance, which is one of the foundation of our successful and sustainable business. Year to date, Borouge has recorded a TRI rate of 0.08. Our safety metrics continue to hold a leading position in our industry, and I want to congratulate our team for their outstanding safety performance. On operational KPIs, I am happy to share that in Q2, we achieved the highest ever quarterly production volume of 1,355 kilotons from utilization rate of PE and PP, of 114% and 103% respectively. At the same time, we are able to maintain an industry-leading asset reliability of 97%. The olefin conversion unit operated at high capacity utilization rate during the quarter.
As a part of our leading operation excellence program, we are constantly striving to optimize resources, improve efficiency, and create incremental value by challenging capital expenditure plan, including shut downs. The Borouge 3 shut down, which was previously planned for Q4 2024, with an estimated 320 kilotons production volume impact, will now take place in Q2 2025. This is driven by the opportunity to optimize the feedstock supply and create on top of the shift effect from 2024 into 2025, an incremental value of $20 million-$40 million in EBITDA above our plan. This is a great demonstration of value creation in our operation business, in addition to the ongoing cost and capital deployment optimization.
Our planned operational maintenance shutdowns are a key part of Borouge's regular asset management, which keeps the company world-class asset base well-maintained and supports our high utilization rate, industry-leading asset availability, and efficient and safe operation. I will now hand over to Jan-Martin Nufer to discuss our financials.
Thank you, Hasan, and good afternoon, everyone. We're excited to report a very strong net profit of $308 million for the second quarter, representing a 33% increase from the previous year and a 13% increase on a quarter-on-quarter basis. Q2 revenue was recorded at $1.5 billion, a 6% increase on a year-on-year basis, and a 15% increase from the previous quarter. Strong top line was supported by healthy sales volumes, enabled by our outstanding operations performance and stable average selling prices during the quarter. As highlighted before, Borouge delivered another exceptional EBITDA margin in the quarter of 41%. This reflects our ongoing operational efficiencies. On a half-year basis, revenue remains flat at $2.8 billion.
Focused cost discipline helped in delivering a strong adjusted EBITDA of $1.2 billion, and a net profit of $581 million, which is up 21% and 35% respectively, versus the same period last year. On to the next slide. We will now look at costs, an area where we continued to make progress after the very successful completion of our ambitious value enhancement program in 2023, that delivered $607 million through revenue optimization and strategic cost management. In Q2, our overall cost base, excluding depreciation and amortization, remained flat as compared to the same period last year, and increased 21% from the previous quarter due to increased production and sales volumes during the quarter.
Total cost of goods sold, excluding depreciation and amortization, decreased by 1% on a year-on-year basis and increased 24% versus the previous quarter due to higher production, following a successfully completed feedstock-related maintenance in Q1. Our overall selling and distribution expenses in Q2 remained flat on a year-on-year basis, despite a 9% increase in sales volumes during the same period. General and administrative expenses in Q2 increased by 10% from $49 million to $54 million on a year-on-year basis, due to one-off items. In the first half year, total cost base, excluding depreciation and amortization, declined 11% despite higher production and sales volume.... Borouge's first quarter position in the PE and PP cost curves, when combined with its ability to command premia against benchmarks, supports a very strong margin profile that ultimately enables exceptional shareholder returns. On to CapEx and cash flow.
Adjusted operating free cash flow in Q2 was recorded at $581 million, representing a substantial increase of 17% on a year-on-year basis. Cash conversion was strong at 95%. Net debt to EBITDA ratio stood at 1.2 times as of the 30th of June 2024, with the additional prepayment of $100 million under the commercial facility end of June, the successful management of the financing cost could be continued. Borouge maintains successfully premiums above benchmark prices over the cycle in a challenging environment, which contributes to strong operating free cash flows and a very significant through the cycle dividend-paying capacity. The company will make an interim dividend payment of $650 million in September 2024, in line with management's commitment to pay $1.3 billion dividends for the fiscal year 2024.
I will hand over to Hazeem to summarize and conclude.
Thank you, Jan-Martin Nufer. On slide 11, I would like to spend a moment on our growth agenda. As you are aware, we have announced several strategic investment projects at various stages of progress. I would like to explain how these projects fit together to form a comprehensive approach to creating value for Borouge shareholders. Aligned with our existing business model, our growth projects focus on the production of differentiated and specialty polyolefins at scale. This is being executed through substantial organic capacity expansion, as well as a geographic diversification of our production footprint, creating proximity to our core markets. Last week, Borouge signed a project collaboration agreement, which aims to establish a complex in China to produce 1.6 million tons of a specialty polyolefins per annum.
The project, which is currently at the feasibility stage and on track, will further expand production capacity and enhance our access to the fastest growing market in the Asia Pacific region. Our flagship project, Borouge 4, is progressing well and scheduled to be completed by Q4 2025. Once complete, it will increase our polyolefins production capacity by 28% or 1.4 million tons per annum. Borouge 4 is being built with next generation Borstar technology and will further offer differentiated products. Lastly, we continue to assess options for capacity optimizations within our existing assets. In this regard, we announced the EU2 cracker revamp, which will contribute over 230 kilotons of a new capacity after full ramp up by 2028. We are in advanced stages of assessing revamps across other assets and will provide those updates in due course.
I'm confident that these investments, coupled with polyolefins market recovery, will position Borouge for significant value accretive growth and exceptional shareholder returns. Allow me to summarize the second quarter and our outlook for the remainder of the year. We expect sustainable macro environment in Borouge core markets in the second half of the year, with expectations of Chinese demand increased following stimulus efforts. We intend to maintain high utilization rates to maximize our production volumes while keeping our asset base efficient and well-maintained. The Borouge turnaround has been moved from Q4 2024 to Q2 2025. Polyolefins prices are expected to remain stable and within a narrow band for the rest of the year due to logistics bottlenecks and low operating rates in our addressable markets. The company will continue to maintain a strategic focus on high value-added products.
Borouge is well positioned from an overall cost basis for the rest of 2024, and we continue to monitor the various geopolitical situations and to proactively manage and mitigate any risks and impact to our business. We expect to pay our 2024 interim dividend of $650 million in September. Finally, we wanted to invite you to our first Capital Markets Day in Abu Dhabi on the 30th of October. Further details will be shared by the investor relations team. Now, with that, we are pleased to take your questions.
Thank you. We will now start today's Q&A session. To register a question, please press star followed by one on your telephone keypad. If you wish to withdraw your question, it's star followed by two.... We will now take our first question from Ricardo Rezende from Morgan Stanley. Your line is now open, please go ahead.
Hi, good afternoon, and thanks for taking my question. I guess the first question is to Hasan. We've seen another quarter where utilization rates have been very strong and above 100%. So just wanted to check whether those rates are sustainable, and we should continue to assume that rates will be above 100%, or there might be even a chance that you announce that your capacities is actually higher than what we assume in the current, the current moment? And then, two follow-up questions that I have on the new project. The first one, in the Chinese cracker, would you be able to give us some color on the breakdown between the final products on polyethylene and polypropylene? And the final question on the issue with them, feasibility studies. Thank you.
Okay, I can answer the first part. From the utilization point of view, we as a group, as an operation, we have a very clear reliability program strategy, where we are sustaining the high utilization. I am confident also in 2024, with this great sort of reliability and availability of the plant, we will continue with the high utilization. At the same time, we did some sort of detailed due diligence for our partners through Citigroup, and we found that the cracker with the downstream units will sustain for the high utilization this year in Borouge.
I can take the questions on, was it on, breakdown on, the announcement we made in, in China? So, I would like to just give a brief on, on, on this project. As we have been continuously communicated, our growth strategy in Borouge will always be, value accretive to the business. Besides Borouge 4, getting closer and closer, the Borouge 4 mega project, 70% complete now, and it's due on Q4 2025. We have been, as we have communicated, we have been evaluating very carefully options and accessing key markets in our international growth that has been mandated by our board.
Therefore, we have been assessing different options and given our long track record, our successful long track record in China, in particular, with the great technology that we have together from Borealis, our Borstar technology. We will make sure the product mix that will be produced in this project gives us the highest premium. I understand the dynamics and the challenges around China, but we see China as a great opportunity for us. China, for us, has been great in terms also of market size. It's a key market, and we see there are still a lot of great opportunities for future growth. China represents 40% in total of polyolefins globally in demand, and therefore, we as Borouge, we are well positioned in key specific applications to grow further with our partners in China.
Therefore, the announcements of 1.6 million has been evaluated very carefully. We are at advanced stage for our feasibility study, and we will be communicating more details of this project in due time. Thank you.
We will now take our next question from Faisal AlAzmeh from Goldman Sachs. Your line is now open, please go ahead.
Yes, hi, and thank you for the opportunity to ask questions. Maybe just to follow up on the project in China. I guess maybe obviously we've seen some significant capacity additions in the market over there, and a slowdown generally in demand and consumption as the country tackles different issues, related to the economy. I guess maybe the question that I have is, at this stage, do you still see-
I don't-
Direction maybe-
Could you speak up a little bit?
China would be... Hello, can you hear me?
Yeah, go ahead. If you can just speak up, just-
Please do.
Yeah. So I was just saying-
Raise your voice.
I was just saying that... Yeah, I was just saying that, effectively, do you still see China as a good place to place more capital in the long term, versus what you could have potentially here, or maybe, for example, in other closer than places markets like the US? That's my first question, and then my second question relates to the delay in the outage or the shutdown that you were planning in Q4. You've mentioned $20 million-$50 million of EBITDA addition. So maybe you can talk a bit about that, because that wasn't very clear to me in terms of what that $20 million-$50 million EBITDA meant. Thank you.
I just maybe give comment on China, then you can maybe then also elaborate further also on Borouge 3 as well. As I said, for us in Borouge, we have been very actively developing our capabilities in terms of together with the markets in China. China represents 40% of the global demand for polyolefins. We have been also, I would say, realizing premium in our products in China with a clearly also differentiated products that we continue sell in China. Therefore, this projects, as I said, we will be communicating more details. However, we understand the challenges and certain, I would say, let me put it that way, polymer types and so on.
However, in Borouge, we'll make sure that, as we are going through a feasibility study, this project really make a clear value, and that's part of our operating model in Borouge, ensuring that we bring a clear, tangible value accretive to our shareholders. So we will be providing more details. We have, besides, I would say, all around all the challenges, issues that we hear on macro co-macro level and so on in China, we see the polyolefin business, and particularly with our technology, the broadest technology we have, in a very specific, I would say, specific applications, we see clear value for long-term for our shareholders, and we will be providing more details in time.
If I may comment quickly on your question with respect to the clarification of the impact of the Borouge 3 turnaround move. So in essence, we have been looking at the optimal timing for the turnaround to happen. We will have two effects. The one effect is the pure move effect of the 320 KT, which would have been in 2024 into 2025. In addition, supporting the decision to optimize, we found that we can optimize the feedstock supply, and by this generate an EBITDA, an additional EBITDA above our plan, in the range of $20 million-$40 million. This together has then taken, you know, the basis for our decision to optimize and move the turnaround into 2025.
Perfect. Thank you.
Just also to elaborate on Borouge 3. On Borouge 3, I think, Mr. Hasan, you want to add something? It has been for us, you know, part of our accelerate for growth journey, also in Borouge, maximizing, unlocking value across all value chain. And we have assessed the situation for Borouge 3 postponements, and we believe we are unlocking value within this decisions, ensuring the, of course, the safety and reliability of our operations, and ensuring we continue full utilization for this year, and therefore also not bringing, just unlocking value for this year, but also for next year, giving the alignments on feedstock and so on. Mr. Hasan, maybe you want to elaborate?
Yes, Sultan, as you mentioned, right, that we as an operation, we unlock the value by looking to the high utilization this year in 2024, and that represent in, deciding after the very detailed due diligence and the assessment for postponement of the turnaround to Q2 2025, and that's reflected in, creating a value of $20 million-$40 million extra in term of the EBITDA. That give us the, the clear mindsets, you know, that will not keep any stone unturned, looking to the, to the all the aspects in order to create more value to our shareholders and investors.
We're expecting to have a history record of production this year, towards the year end, Inshallah.
We will now take our next question from Prateek Patni, from HSBC. Your line is now open. Please go ahead.
Yeah, thanks for taking my question. I have two. The first is that we are seeing freight rates increasing in the industry, but it hasn't impacted you for now. Selling and distribution expenses are flat year-on-year. So how you guys are managing it, and whether we should expect an increase in these expenses with a delay for you? That's the first question. The second question is on the P4, in terms of CapEx costs. Is it still tracking your initial estimate of $6.5 billion? Could you give some color?
When you say that the plant will start by the end of 2025, or complete by the end of 2025, do you mean mechanical completion or commercial operations will begin by the end of 2025? Could you give any details around that? Thank you.
So maybe just to reflect also on your first questions on logistics, we have a clearly, also a focused working team around ensuring that we have a clear, strong, cost controlling on our logistical variable costs. That has been clearly established a few years ago, with a clear focus that we need to make sure that our costs are also very much controlled, and you can see that, and that reflecting in our EBITDA margins by Q2, 41%. And that's cost discipline across all the elements that clearly been evident in Borouge, and one of the area that we have been focusing on, our logistical cost. And with all the, let's say, different also geopolitical situations and challenges we're going through with the logistics, the team has truly managed it very, very well.
So we'll maintain. Of course, I mean, we have seen also different challenges when it comes to also ensuring that our sea shipping shipments on time and deliveries and therefore, also I want Rainer to give comments on this, but it's truly, truly it's under control by the team.
Yeah, perhaps a very short comment. But so far, it is under, under control. Of course, we are a bit impacted more towards the west when we talk shipments to Latin America, Europe, Turkey. But so we are reshifting volumes a bit more to the east, Asia North and Asia South region, to get the, the volume flow also under control. So with this, we are targeting quite good sales volumes also towards the second half of the year. But the, the second quarter was already a testament that we can move the volume. So, so far, so, so good.
And maybe, wrapping up from my side and then leading into your question reflective of the Borouge 4 status. Costs indeed are well under control, which is a testimony also to our ability to have the largest part of the outstanding effects from the value enhancement program in the previous year to be transpired into 2024, so we're working hard on that. On the question in respect to Borouge 4, with a now completion status of roughly 70% achieved, we have good feasibility on the project, both in terms of a cost, but also on a timeline basis. So indeed, as you mentioned, we have given some indications around the CapEx bracket, and we're within that CapEx bracket that we have been communicating before.
So from that perspective, I can confirm that, this is, so far well on track. And from the completion time, we're expecting to meet the, completion tests end of 2025, beginning into 2026, which is also in line with what we have been communicating, earlier. That will also stipulate then the next considerations around the, Borouge 4 recontribution into Borouge PLC.
So Borouge 4 is really on... well on track, more than 70%. We, as we communicated always, that, this is our main mega project. It has also the latest, technology that the third technology of Borealis is, clearly will give us, an opportunity to produce specialty products, for, for Borouge 4. And that is a very key for us in bringing also more value and premium, in our product mix, and so forth. Mechanical completion has different packages, XLPE, polyolefins, cracker, and HE and so on. This is, a mega project, and inshallah, will be completed, start up mechanical, in Q4 2025.
As a reminder, if you would like to ask a question, please press star followed by one on your telephone keypad and star followed by two to withdraw. Our next question comes from Shabab Ashfaq from Al Ramz Capital. Your line is now open, please go ahead.
Hi. Hi, congratulations on a good result. I have a couple of questions. First, like, we have noticed that there is a slight improvement in the benchmark price in quarter two, but premium is down for both the polyethylene and polypropylene, and which leads to overall unchanged selling price for Borouge. So why are the premium coming down for both the products, and what premium do you expect in the second half of the year?
If I understood your question right, you're saying, what is the premium, coming down a bit in quarter two versus quarter one?
Yeah.
I mean, the main reason for this is, in quarter one, right, we had a turnaround, and there was also quite some less volume to be sold. So we were very selective on our volume, where to place and in which segments we place it. And with this, we could bring the polyolefin prices, the Borouge prices, more up than the market, which ended in quite significant premium. Specifically, you have seen this on polypropylene, right? Because major volume was in the polypropylene. If you look now quarter-over-quarter, I think polypropylene, we sold 25% more, so we went also then into our normal other markets, and then the premium came down a little bit.
But it's still in the range of the cyclic guidance in a down cycle, which is a very good achievement. If you're looking forward on the premium, I mean, we reiterate our premium guidance over the cycle. It's a cyclical business, but it could come down a little bit now in quarter three. The reason is due to the logistic constraints, what I said, a bit more to the west, we need to go a little bit more to the east. Selling a bit more in Asia North and Asia South. Prices are a little bit lower versus the benchmark prices, but the margins are really good. So we will deliver still a substantial margins.
Quarter four will go up again, so over the year, I think we will be around the benchmark price guideline what we have. And overall price levels, we see a bit in a very narrow band, right? There are three elements into this. The one is, we see feedstock or oil prices fluctuating around $80, coming up a little bit, a bit below $80. Naphtha will remain on a reasonable level, which triggers then difficulties for marginal producers. What we see is that the production rate, specifically on Naphtha-based producers, but also PDH based producers also in China, came down significantly.
While it was in 2001, still around 95%, it's now more to 75%, and, we think, that will, that will remain. We will see in Japan, they have problems, Korea, they have problems. Operating rates will be, will be low, and little bit these, logistics, constraints, but we see, high freight costs from the east to the west. Good is from the west, from our side to the east, the, the freight costs remain on a relatively, low, low level. So this will keep the, the prices in a, in a relatively narrow band towards the end of the year.
And, I have another, like, question on, like, Borouge has a contract with ADNOC for the exclusive provision of the feedstock, and the existing agreement is due for repricing in 2027. Could you provide some information on this? And do we expect a revision in feedstock prices to be more in line with now the market price? And does the merger with Borealis have any impact on this agreement?
Okay, thanks for the question. Let me elaborate on that. If we understand correctly, it's about, you know, the feedstock price reset mechanism, which was communicated during the IPO phase. So indeed, we have the following mechanism to recap, which is at the end of 2027, the feedstock price mechanism will reset for Borouge PLC. Borouge 4 obviously will be on the new feedstock price from the start. With that mechanism, we have essentially the same structure. It's just on a new basis. This will keep, and that was also the main point that was communicated, that will still keep us comfortably in the first cost quartile in respect to the feedstock cost.
In addition, we will have then at that time also pretty much the full impact from Borouge 4. And as Hazeem has been pointing out, that will allow us then here also to deploy the new product slate based on the Borstar third generation technology.
Perhaps very briefly also on the premium side, that I would like also to highlight that based on the differentiation, but also on the innovation capability what we have, right? We think that we can clearly reiterate the premium guidance on what we have. So we launched last year eight products. This year we launched seven products. We'll have the highest innovation value, which measures additional margins ever in history of Borouge. Just to give you perhaps a few examples, but also on the circular side here with recycling mix, we launched a project like pellets, which are produced in the UAE at Union Pipe, and we are using that then on Borouge side, which is 100% recycling.
We launched a new metallocene grade, which will ensure us that we can mix recycling material with it and then keeping properties high. We launched a new PP infrastructure grade for hot and cold water, which is used in the Cleveland Clinic Abu Dhabi, for example, or Indoor Stadium in Singapore. In XLPE, we launched a new submarine grade. We launched a new healthcare grade this year. So there's a number of things going on, which will also keep our premium on a decent level.
We now have a follow-up question from Prateek, from HSBC. Your line is now open. Please go ahead.
Yeah, thanks. I just have two. The first, just wanted to confirm whether you said that the new default plant will get the feedstock at higher prices from the start of operation. So from 2026, it will be paying higher feedstock prices. Is that right?
Yes, that's correct. That was communicated from the beginning. So Borouge 4-
Okay.
The Borouge 4 plan is, is based on already the new feedstock price.
Okay. And, just for modeling, could you also help us with, at what operating rates did OCU operate in quarter two?
Which one?
Operating rates for OCU was the question.
Okay.
Yeah, I think the OCU with a great reliability, we are at maximum capacity of OCU. Also, we are balanced sometimes with the... our intake from others or only our, sister company. But from reliability point of view, OCU is reliable, and we are maximizing to the higher capacity.
Excellent.
We have no further questions in the queue at this time, so that concludes the Q&A session on today's call. I'll now hand back over to the management team for closing remarks.
I just want to mention that, our Borouge Capital Markets Day is now set for 30th of October. We, as a management, invite you in person to meet you, and we'll be looking forward to see you inshallah in Abu Dhabi, and engage more, more, more in person. And we'll be happy also to update you more when we see each other, inshallah, in market, in Borouge Capital Markets Day. Thank you.