Good afternoon, ladies and gentlemen, and thank you for standing by. And welcome to today's OCI Endry 2018 Results Conference Call. At this time, all participants are in a listen only mode. There will be a presentation followed by a Q and a session. At which time, if you wish to ask a question, you will need I must advise you that this conference is being recorded to Tuesday, 26th February 2019.
I would now like to hand the conference over to your speaker today Hans Zayed. Please go ahead, sir. Thank
you. Good afternoon and good morning to our audience in the U. S. Thank you for joining us on the OCINV 2018 results conference call. With me today are Ignacio Sohirs, our Chief Executive Officer and Hassan Badrawi, Group Chief Financial Officer.
On this call, you will review OCI's key operational events and financial highlights for the fourth quarter full year 2018. Followed by a discussion of OCI's outlook. As usual, at the end of the call, we will host a question and answer session. As a reminder, statements made on today's call contain forward looking information. These statements are based on certain assumptions and involve certain risks and uncertainties, and therefore, I would like to refer you to our disclaimers about forward looking statements.
And let me introduce our Group Chief Financial Officer, Hassan Mojave.
Thank you, Johan. Thank you all for joining us today. I'd like to start today's call with, highlighting our excellent safety performance that was achieved by all our facilities during 2018. And which will be detailed as usual in our 2018 annual report. 5 plants achieved 0 lost time injuries and the group's lost time injury rate improved by 1 third compared to 2017.
Despite having several significant turnarounds, during 2018. This is the 3rd consecutive year in which we witnessed an improvement and continue to achieve one of the best safety records in the industry and something we're very Now turning to our financial results for the 4th quarter. We're pleased to report a 20% increase in self produced volumes to 2,500,000 tons during the quarter compared to the same quarter in 2017. And the results We've achieved a record 9,400,000 tons for the full year 2018, which is a continuation of our ramp up something that we will continue to see into 2019 2020 with the expected full year impact of Natgasoline the startup of, biopsy and second line and the, expansion that is currently ongoing and mostly IPs, Beaumont production facilities. Despite some volatility towards the end of the quarter, we've we were able to capture selling prices that were on average higher compared to both the previous quarter and compared to the fourth quarter of 2017.
Because of the higher volumes and the higher average prices, our 4th quarter revenues increased by 47% to $942,000,000. We reported an adjusted EBITDA of $269,000,000 during the quarter, during the 4th quarter, which is 102% higher than the fourth quarter of 2017 17% higher than the previous quarter in 2018. This improvement was a result of the higher revenue as well as higher margins, which we have achieved due to high utilization rates. For example, at IFCO, our facilities overall in North Africa. During the quarter, our Iowa fertilizer company was one of the main drivers of our growth.
Towards the end of 2018, the operating team in Iowa did an excellent job in increasing IPS production levels record 115% of labeling capacity. We could achieve this as a planned benefit from optimization work that we carried out during the third quarter and and as a result of the first part of a permanent increase of our for our production levels. Our methanol business performed well despite a short plant shutdown at OCI Beaumont in December. The methanol segment was also affected by some repairs at our legacy implants, which had run above nameplates during October most of November. This was caused by some utility supply issues that have now been fully resolved.
Still a positive quarter for Natgasoline exceeding its Q3 debut performance and faring well for its full year of production in 2019. Turning to a key measure of performance during the quarter. We generated free cash flow of $305,000,000 before growth CapEx which takes a total for 2018 to $620,000,000 and this is only this is compared to only $115,000,000 in 2017. Our positive free cash flow performance during the quarter was driven by a combination of higher operational performance and buoyed by a sharp focus on working capital optimization. We also received the 1st dividend and repayment of shareholder loans from NAKA to the tune of $58,000,000 during the quarter.
Capital expenditures were $66,000,000 in the 4th quarter with only $21,000,000 attributable to the incidents. Bringing the total for the year to $293,000,000, which is in line with our guidance and indications during our last quarter, November. Finally, our quarterly cash was partially offset by interest of $105,000,000, which is higher than the quarterly average. As we mentioned earlier before, as interest is mostly paid out in the 2nd or 4th quarters
of the
year. Because of our strong free cash flow performance, We saw a clear improvement in our leverage profile during the quarter. Net debt decreased by $295,000,000 and we continue the trends of a meaningful improvement in leverage ratios. Our trading net debt to adjusted EBITDA was at 4.4 times at the end of December, recalling that we had reported 5.5 times end of September. And have got come down from seven times at the December in December 2017.
As I look ahead, The company remains highly committed to deleveraging for 2019. In addition to our expectations of the higher operational results, we will continue our disciplined focus on working capital management and expect some positive contributions to the, to our prospective cash flow some, we expect some $50,000,000 $70,000,000 step down in our interest dollars in 2019 compared to the reported $341,000,000 in 20.18, partially also benefiting from a 50 bps step down which we get to every half turn in net debt to EBITDA metrics on part of our bank facilities. And this was achieved based on our December covenants. We also expect CapEx to decrease from $293,000,000 in 20.18 to a range of $200,000,000 to $220,000,000 20 19. Out of this amount, around 150 to 160 is attributable to the incidents and the rest is the residual growth projects that we have, including, the extremely attractive 15% metro and capacity expansion of ACI performance.
At this point, I'd like to hand over to our Chief Executive Officer, Doctor. Stavides for further commentary.
Thank you, Hassan. I will first give an update on recent developments followed by the outlook for 2019. I'm pleased that we ended 2018 on a strong note We generated strong free cash flow, reduced our net debt by almost $300,000,000 during the quarter and made excellent progress on our deleveraging. We are now clearly starting to see the real benefits of our investments and will also benefit from our disciplined commercial approach. We were able to capture healthy selling prices as we stuck to our commercial strategy.
Our industry has been plagued by the practice of selling large quantities, forward or product during growth seasons, which we see as value destructive. This results and produces making significant commitments that restrict them from fully participating when prices rise. It also allows traders to purchase product at seasonally low prices and then become a competitor to producers when the season kicks in. This is why we have invested heavily in on-site and off-site storage capabilities and obtained significant working capital flexibility to weather market fluctuations and help realize better value for our production facilities. In Europe, we are close to our customers, and we have facilities in North Africa that can efficiently export product to key demand regions.
In the U. S, we have significant freight and logistical advantages, and we expect this to be especially beneficial at times when there are bottlenecks for product to be transported into the Midwest. Our team has established excellent transport capabilities by truck, crane, and Varsha for our products which coupled with our very flexible plan, allow for just in time production and delivery to respond to customer needs. For example, we will have, 1100, leased railcars in season this year from about 4 2017. We have global storage capabilities of almost 2,000,000 tons and have invested in a network of strategically or owned warehouses in both Europe and the U.
S. For example, in Western Europe, we are strategically located off-site Yurea storage, allowing us to position our product close to the customer for entities and usage in Netherlands, Belgium, France and Spain. In the U. S. Alone, we have almost 500,000 tons of storage via on-site and off-site storage that give us meaningful flexibility.
Our significant on-site ammonia storage allows us to comfortably, keep tons that are not placed in default for our customers and achieve a step up for our spring pricing. On UAN, we have over 150,000 tons of by storage and places across the, the corner, shared between 10 facilities. Of course, the N7 joint venture bolsters our storage and adds additional local marketing capabilities for urea in the Dakota and Minnesota, the biggest consumption reason for the product in the U. S, providing synergies not only with our U. S.
Production facilities, but also for our value creating opportunities with our global production base. N7 is a successful example of value creating consolidation without any dilution to OCI shareholders. I firmly believe that we can maximize netback prices and outperform as a result of our logistics coupled with our discipline safe touch. As I look ahead, first, at nitrogen products, In the short term, we expect some shifts to fertilize the sales from the first into the second quarter as seasonal demands start taking up at the end of March or in April. Our sales approach will result in some inventory buildup during the low season which we replaced in our key locations near our customers.
We are particularly bullish on the outlook for the U. S. For the second quarter of 2019. Here, we expect a catch up in spring from a poor Ford application season, and the USDA is expecting a significant increase of 3,000,000 additional acres of corals. Both five are very supportive for a strong 2nd quarter in the U.
S. If I look at our industrial nitrogen products, we expect to continue to capture healthy margin for our melamine business. This is a significant contributor to our Dutch operations. We also expanded strong growth in our DEF business This market is growing at rates of more than 15% per year, and we have invested in our logistics to capture This growth. Because of these investments on our N7 joint venture, we have already signed contracts that represent more than double our 2018 stage volumes.
If I now look at the methanol market, the supply and demand fundamentals continue to favorable with very few new capacities coming into the market. We saw some price weakness at the end of the fourth quarter, but in the past, A few weeks, prices have rebounded, markets in Asia picked up with an increase in MTO operating rates to about 90% after Chinese New Year. Looking ahead, firmer oil prices and the expected addition of 2 new MTO facilities in China in the next 2 months will be supported for methanol prices and demand. The 2 UNTO facilities will create combined demand of 3,000,000 to 4,000,000 tons of methanol, the equivalent of 2 times the capacity of Natgasoline. Gas prices are lower than the highs reached in the last quarter.
In Europe, it expect to see the full benefit from the second quarter onwards when our European winter exposure hedges will have expired. In U. S, we benefit from hedges at $242,000,000 MMBtu at EFCO for most of our gas needs in Q1, and we have secured prices below $2.30 for Q2. Moreover, we believe both fertilizers and metal prices have recently been negatively impacted by US sanctions on Iran, which has resulted in Iranian product being sold at significant discounts into the market. Finally, looking at OSI's outlook for 2019, specifically, we expect our low cost operations in U.
S. To be a key source of growth in 2019 with tailwinds from fundamentals of our end markets. We are excited that EFCO reached record production levels in the fourth quarter For 2019, we're looking forward to the full effect of 2 increases in allowable operating rates and from the DEF expansion. We also expect the full income from impacts from Natgasoline, the doubling of capacity at BioMCM and the 13% capacity increase of OCI Voma, which is earmarked for start up this summer. As we continue to ramp up our volumes into 2019 2020.
We expect additional step up in free cash flow, which bodes well positively for our future value creation. We will now open, the line for questions.
Thank you, ladies and gentlemen. We will now begin the question and answer session. Please standby the Q And A queue. This will only take a few moments. To ask a question.
And the first question comes from the line of Christian Faitz from Kepler. Please ask your question.
Yes. Good afternoon. Myself, Hassan and Hans. Three questions, if I may. First of all, can you talk a bit about current demand trends?
I mean, where you talk about, obviously, your shift from Q1 and Q2 in the U. S. I would believe this is weather related. Looking at the forecast, we will have deep freeze into, permafrost into into, mid Marshall. So in the Midwest, can you confirm that?
But how is demand picking up, for example, in Europe? There we have much more moderate weather conditions. Second, Can you give us an update on the planned turnaround in I believe you are planning this for the summer in the off season? And and seem to be a big fan of the DFS business, sorry, rightly. So, with one of your key competitors wanting to get out of the business.
Would that be an interesting activity for you to acquire?
So I'll I'll start by talking about the demand change we see, it's not untypical for farmers to wanting to see a bottom to pricing. So, hence, no demand creates, a vicious circle of buyers waiting to see where the bottom is And that is a shift that is, occurring in a, on a normal pattern. However, having said that, we still see a strong demand. We monitor the warehouses. And the volume sold.
There is a lot of volumes yet to be purchased in Europe. And, as shift towards mid March, in the Midwest also will not create any issue. We don't look at our business on a quarter per quarter basis. So, the wrong thing for us to do is to put more product at a time when, the demand has not kicked in at low prices because that usually goes into traders' warehouses. And we value our, disciplined approach I can tell you, one very important matrix that, if you look 3, 4 years ago, the top from the top 3 traders in urea.
2 of those top 3 have stopped trading in urea, in Europe. Primarily because we took on warehouses and became the, directly supplying from North Africa into those warehouses. And that big opportunity to buy in the low season and store became less attractive and more volatile and some of them even incurred losses. So, regardless of the time shift, we are looking at, a strong H1, but not necessarily to be reflected in Q1 sales. Our working capital will probably increase towards the end of Q1, because we will have significant products in our own storage.
But we see that prices, bottoming where they are now and starting to rise in the coming weeks as, barring a further delay, in the spring planting. But it's obviously almost mechanical. On the issue of the, of DEF, DF is the mandatory by law now since 3 years in America, meaning that every new truck that is sold in America will consume about 4% to 5% of diesel consumption as DEF. And every time an old truck is replaced with a new truck, you will see DEF demand growing, not just in trucking and transportation, we are seeing the application of DEF into marine engines. We're seeing that the application into a farm equipment and construction and mining equipment.
So this is, an area that we think through sales of DF and transforming some of our production from urea to DEF achieves 2 things. First DF is our highest margin product. So for only that reason, it's a no brainer for us to max out DEF. DEF is also protected from imports in America because you have to transport 50% water to bring the air from Europe. And in addition to that, it helps from urea tons that the market doesn't need disappear into trucks and tightened the market, which we think at the period, of oversupplied is the right thing to do.
So we're strongly committed to a DEF and, and that has been, Our approach in the last 6 months, we invested heavily in building new storage facilities, more railcars, and reached long term agreements with the most important truck stops and the biggest buyers of DEF in the U. S. To where we are comfortably projecting to double our DEF sales in 2019 from 'eighteen.
K. And any comments on potential M and A on in in the
No, we don't comment in generally about competitors or M and A.
Thank you, ladies and gentlemen. And the next question comes from the line of Frank Claassen from Degroof Peter Scrum. Please ask your question.
Yes. Good afternoon, Frank Claassen, Degroof Petercam. Two questions, please. First of all, on Natgasoline, you saw the first, streaming of cash in Q4, fifty eight million dollars. What can we expect going forward on that?
Will there be a more regular dividend stream coming or and maybe even more repayments of to to share the loans. And then secondly, BioMCN, saw that it slipped into negative EBITDA. What is the main reason? Is it is it a gas price or the lower methanol prices, maybe operational issues? And what can we expect going forward for BioMCN?
Thank you. So on Natgasoline, this was
a good quarter and we expect, continuous significant cash flow generation. Natgasoline is a plant that is located in the lower gas price available all over the world today. And, operationally, we're very happy with the startup in Natgasoline, it has done extremely well and exceeded nameplate capacity. It was unfortunate that one of our off-site utility supplier had a force majeure since then they have been very proactive and it restarted the oxygen unit. And has taken additional measures to prevent this from happening again.
So on Natgas, that's upstream. I don't want to give a specific number because it's obviously related to the methanol price. But I can say that, it has very strong free cash flow generation capabilities. On BioNTM, we always knew that, BioMCN specifically, in Europe cannot sustain production at $10 gas for a long period of time. We witnessed exceptionally high gas prices in Q4.
And that was really the final reason. We had commitments. So, we actually operated the plant while, almost cash flow neutral, but to fulfill those commitments, we have seen since then gas prices dropped by more than 35%, in the last few months. And at current pricing and current methanol pricing, Bioenergy operates profitably. And we're looking forward to the second train, coming on stream in Q2.
Delay was partially due to also winter and some technical issues. But, let's put it this way. We were not in a hurry to pay over time to make up when gas prices are at 10. Dollars per MMBtu. But now that we are, we think it's a good time to start by the second train in, in the second quarter.
Okay. Thanks. Coming back maybe on Natgasoline, so the dividend, will that be an annual event or will you be optimistically looking to upstream cash from that gasoline? Or how does that process work exactly?
Streaming is done on a quarterly basis. You might have seen that in Q3 we, we completed refinancing, for Natgasoline, which should reduce our interest costs. So, in line with our covenants, the upstreaming will happen on a quarterly basis.
Okay. That's clear. Thank you very much.
And the next question comes from the line of Tim Riggersworth from Citi. Please ask your question.
Afternoon, everybody. It's Tom Wrigglesworth. So a couple of follow ons, but if I may. Firstly, on, just on the on the difference between say and Chinese methanol prices. A bit of a gap seems to have opened up, in, you know, between the two locations.
Can you just confirm that you sell all of your, US methanol on the US benchmark. And secondly, you know, can you help me understand why there is this gap and, you know, whether you see the Chinese prices pressuring the US or the US dragging the Chinese prices higher, that that would be very helpful. And, and secondly, just regards to this, the shift in demand from from 1Q to 2Q, obviously, you you've noted that you've built a significant amount of storage as to. So at the end of 1Q, do you think you're gonna be fully utilized all of your storage? Is that is that what you're saying?
You're gonna withhold, those tons of the market until the demand really comes through in 2Q. Is is is that that the communication I should understand from from what you're saying about storage capacity? Thank you.
I'll start by the number 1, 2, and 3 reason. For the shift in gap with China, would be the sanctions on Iran. Most of the Iran sanctions, Iran products top coming into, less so into Europe and is mostly going east. And that has created, the situation that has happened recently, in Asia. Having said that, MTO plan utilization rates going up to 90% and the effect of 2 additional new MTO lines coming on in the next coming 2 to 3 months will tighten the pricing in Asia.
Plus, we had the Chinese New Year, which was a 2, 3 week lull period. So, we would see that, difference tightened to U. S. Pricing. We obviously try to we have various swap agreements, some of them with Methanex, some of them with others to, to, as much as possible, keep some of the most of the volumes, in North America.
But, some of the volumes do end up in Europe, where we market them to our own, channels. Your, the other question was on the, on the storage. On the storage, we will, demand start with might start earlier in Europe, so we can't speculate. We have the storage. We moved product from North Africa, to those dedicated warehouses.
And we were on to market demands, but we can't we do have storage capacity and wherever we have access even to additional bonded warehouses in certain strategic ports in France, to increase our capacity. And as I said earlier, 2 of the top 3 trade houses that used to imports from the Middle East have stopped doing so and are totally out of the urea distribution, business in Europe.
Okay. Just as just as a follow-up, I mean, it's obviously, you know, that there has been weather effects in the US, and obviously you have combustible storage capacity, but, you know, is there is it do you think you can we look at the market as a whole, you know, if demand comes through too late, will will there be lost tons in the market, or do you or do you think actually, the infrastructure is available in place to, to to get all the necessary tons. I'm just wondering, you know, or
we can see a
you know, could we see a scarcity issue, going in through the US because if demand comes too late through in the season, then actually the market as a whole won't be able to to get those tons to their end customers?
Where we are located in the Midwest we could practically sell our entire production of UAN within two hundred miles radius from the plant. So you can, and we have ten locations with UN storage around the plan in strategic locations. So people can can come and pick it up on a Monday and use it on a Tuesday. So it's not, and where it really hurt is on imports coming into New Orleans. That will be weather dependent and barge availability will become popular.
In the coming few weeks. And, yes, there could be some shortages on the import side, but not the domestic producers have infrastructure in place to, to cover
Thank you. And the next question comes from Harvay Kumar Malay from Eaton Vance. Please ask your question.
Matt. Quick one, and this is in relation to your, leverage target. During the Q3 earnings call, you had, very specifically guided to a leverage target of 2 a half times net debt to EBITDA for December 2019. The Q4 statement is a little more nuanced where you're talking of 2 times leverage target through a cycle. So do you,
is there any change in leverage target, or how should we read this? No, the 2 times leverage started is through mid cycle pricing. So, through the entire, cycle. And, so it's not times related to the tool. So across multiple years, not time related.
Obviously, those, so they're not inconsistent with each other. We haven't, we are far from reaching mid cycle pricing. So, as of today. So, obviously, you get the 2 effects on deleveraging, which is a higher EBITDA and stronger cash flow that reduces that. And you go into a virtuous cycle as soon as we approach mid cycle pricing.
We are close to mid cycle pricing on metal road, but not on, fertilizer.
Alright. So if I want to schedule correctly, you still hope to reach something like 2 and a half for 2019 on an adjusted EBITDA basis?
We obviously are subject to market conditions and product pricing. Our base case remains that prices now, are below what we think would be the average for 2019, significantly below what we think the average for 2019. Yeah. But we might be proven wrong for some weather condition or something like that for lack of pent up demand. The pent up demand is there.
The amount supplied mechanically is insufficient to sustain the planting in the U. S. Of an additional 3,000,000 acres. So, we, we expect prices to recover, as soon as demand, we get closer to
the demand time. Understood. That's very clear. Thank you very much.
Thank you. And the next question comes from the line of Ruben Nolan from Kempenet please ask your question Ruben. Your line is open. Please ask your question.
Hi. Good afternoon. This is Ruben calling from Bank of America. My colleague, Henk Fairman Kunnot. I have some remaining question from my side.
You gave a lot of statements about capacity increase in 2019 over 2018, which you gave us a range of very thin film growth year on year in 2019 is going to be so could you give us an an indication about that, please?
Sorry. I didn't hear you. You're talking about volume growth. Yes. Would you
give us a range, on this volume growth year on year in 2019? There's s group of total.
Ma'am, you will have to improve, you will have to factor in Four quarters of Natgasoline and additional two quarters of BioMCN too. These are the basics and improved, utilization in IPSCO. So, that will come up to a sizable volume increase, but I, I can pin down, an exact number.
Thank you. And the next question comes from the line of Paul Moran from Nolan Trust. Please ask your question.
Oh, good afternoon. Thanks for taking the question. I just wanted to clarify something on working capital in the initial statements was there a mention of an expectation for the full year 'nineteen of the another working capital cash inflow? Is that correct?
With rising volumes, you typically would require to adjust your working capital because you just have more receivables. So if we were hypothetically, I don't want to say a number. Expect in 20% increase in volume, 15% to 20% increase in volumes. That should numerically there would be some increase in working capital. But I don't want to comment again on the volume.
But working capital discipline is something that we monitor regularly. And we'll continue to do so.
It's not a number then. I guess what I was expecting given how strong 2018 was that you would have a, a cash outflow in in 'nineteen. Is that a still a fair assumption, or do you think that that you could have a cash inflow in 'nineteen? I'm just looking for whether we should have some unwind on the on the good 'eighteen number or not?
No, not unwind or totally it'll be about the same, level. You're talking about working capital or just cash flow upstream?
I'm really talking about the cash flow. So it's
a working capital talk about cash, we expect stronger cash flows in 'nineteen, but the first question was related to the size of the working capital at year end. And I would and that's why I commented that on a higher revenue base, you expect a slightly higher working capital. But from a cash flow, we expect stronger cash flows in 2019 than 2018.
So so just to be crystal clear, on a cash flow basis in 2019, specifically in working capital, there will be a positive cash in rather than an outflow So it's not the same number of as in 'eighteen, there's still a cash inflow.
It's too much, am I new to my details to give you a guidance on the working capital, but our working capital is a factor of level of inventory and the amount of receivables and multiple factors. And we try to do, the best job on that, but we can't give a guidance on whether we're working capital with them from a working capital but we're very comfortable on is that all in all, cash flows on 'nineteen should be stronger than in 'eighteen.
Yeah. Okay. Great. That's clear. Thank you.
Thank you. And the next question comes from the line of Amelia Abelan Kao, Capital. Please ask your question. Yes. Hi.
Can you please help me understand a bit better with your performance on the fertilizers Europe, please, or OCI Nitrogen over the year, please?
A good year despite being impacted by higher gas prices, for, in the fourth quarter, On the MetaMind side, they, they did extremely well and was a major contributor to the results. And, CN prices year over year improved. So, I would say all in all, the, partial drop in EBITDA, on fertilizer Europe is the biggest bulk of it is in a higher gas price. And Q2, we had lower prices, but in general, the trend for, nitrogen, was, was positive. We had also a little bit of an impact from the Rhine River.
That's why we ended with more inventory and the demand was impacted, by that. But we hope to capture that mostly late March and in Q2.
Okay. Thank you. Thank you. We have got one last question, but before I take this question, may I ask And the last question at the moment comes from Geoff Haire from UBS. Please ask your question.
Good afternoon, gentlemen. Just
wanted to ask, is there any impact in Q1 to production levels in the North American assets given the cold weather we're seeing, particularly, in the Midwest?
No, no material impact from the cold weather. In the midwest.
Thank you.
And we have one more question the question comes from from from Goldman Sachs. Please ask your question.
Hi. Thank you. This is Anil Patwari on behalf of President. So two quick questions, please. The first is regarding its goal.
So you have guided for close to 120% of operating rates for this year. Is there a chance that the operating rates might be higher for 2019 and what should be modeled in for 2020? And the second question is regarding the North African operations. Can you please guide us about the expected operating rates for this year versus the last year? Thank you.
No. First of all, what we said is that the plant achieved 120% and we had permitting restrictions that, that, no longer exists. So, we obtained a new permit, from the state of Iowa, that enables us to take the plant to its full potential. So the run rate will be somewhere, lower than the 120% based on normalized maintenance and turnarounds. But we do expect in general, Iowa fertilizer company to have significant, higher production levels in 'nineteen than 'eighteen.
And then probably by the end of 'nineteen, most of the easy wins on debottlenecking would have been achieved and we normalize at those levels. In, in North Africa, we just have, a couple of turnarounds in Algeria, but other than that, most production metrics, are very supportive of stronger volumes coming out of North Africa.
There are no further questions at the moment. Please continue.
Thank you, gentlemen, and looking forward to our next call.
Thank you, ladies and gentlemen. That does conclude our conference for today. Thank you for participating. You may all disconnect.