Ladies and gentlemen, thank you for standing by, and welcome to today's OCINV Third Quarter 2018 Results Conference Call. At this time, all participants are in listen only mode. There will be a presentation followed by a question and answer session. You will need to press star and the one on your telephone. I must advise you this conference is being recorded today, November 16 2018.
I would now like to hand the conference over to your speaker today, director of investor relations, Hans Blade. Please go ahead.
Good afternoon, and good morning to our audience in the U. S. Thank you for joining us on the OCI MB 3rd quarter 2018 results conference call. You can find all the details of our results in our press release and financial statements, which you posted on our website this morning. With me today are Nasser Sowir, our Chief Executive Officer and Hassan Badrawi, our Group Chief Financial Officer.
On this call, we will review OCI's key operational events and financial highlights for the third quarter of 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 thereby I'd like to refer you to our disclaimers about forward looking statements. Let me introduce our group Chief Financial Officer, Hassan Badri.
Thank you, Hans, and thank you all for joining us And I will start with a brief summary of the results we published this morning. And then and over the floor to our Chief Executive Officer, not so serious. Briefly, we reported a 16% increase in self produced volumes which reached $2,300,000 during the quarter. This includes our 50% share and volumes from Netgasoline. We achieved this increase despite a number of, opportunistic, maintenance work in, in EFCO and in some maintenance work in Europe.
Our real life selling prices enjoyed positive, positive momentum and improved across the board compared to Q3 2017. Because of the higher volumes and higher selling prices, 3rd quarter revenue increased by 33% to the reported $774,000,000. Our adjusted EBITDA increased by 35 percent to $230,000,000, which again also includes our 50% share in Magazines Our methanol commercial team has been effective in managing the distribution of our 50% share net gasoline production as the plant successfully ramped up ahead of schedule. On our primary measure of operational growth, we generated free cash flow of $69,000,000 before growth CapEx during the quarter. This takes a total free cash flow year to date to $360,000,000 compared to a much lower number than the same period last year, around $70,000,000.
Which was a CapEx heavy year. I would like to highlight a few items, on our free cash flow. Firstly, There was some consideration of CapEx in the quarter. We had around $57,000,000 of maintenance CapEx recorded during the quarter. We also had some growth CapEx, which for the continued refurbishment of BMCN second line, and the installation of our new DEA Tank at IFCO.
So the CapEx was around $95,000,000 during the course. We have not planned any turnarounds during the fourth quarter and we expect total CapEx to be in line with our guidance for the full year of around $300,000,000. Secondly, we paid most of our annual taxes that were due, a total of $32,000,000 during the third quarter as well. We expect some additional cash tax payments by year end of $2,000,000 to $4,000,000, which will take the total for the year to a maximum of $37,000,000. Finally, we also had first time working capital introduced reflecting or, 2 new distribution operations, our OCI Method And Marketing distribution arm, and our N7, which is the JV with, our joint venture partner, Acuta gasification company.
Also capturing the ramp up in our methanol distribution of Natgasoline. Our net debt turning off our balance sheet now, our net debt moved up around $80,000,000 to $4,400,000,000 as of September 2018. But this was driven by $120,000,000 of expenditure, to buy out minority partners in OCIP in July. However, we continue the trend of a suite of significant improvement in our leverage ratios our training net debt to adjusted EBITDA stood at 5 point 5 times at the end of September, down from 7 times, at the end of 2017. And on track to reach, we are guiding for a range of 4 to 4.4 times by year end.
We have continued our drive to optimize our balance sheets and cost of debt. Earlier this week, we closed another successful placement of $900,000,000 at Natgasoline, including a $565,000,000 term loan B facility and $336,000,000 of bonds in the U. S. Texas net markets. The proceeds of the news for the refinancing existing debt, of $252,000,000 of taxes and bonds.
Also, availing cash to shareholders. The new debt is also around 250 bps lower weighted average cost of debt and the financing is replaced. And with this initiative, we have completed our targets, refinancing plan for 2018. Overall, we remain committed to our financial policy with a focus on deleveraging and achieving an investment grade profile as soon as possible. Which we believe can be accelerated given the appropriate market conditions and as we continue to benefit from the full ramp up of our growth initiatives.
I would like now to hand over to Doctor. Saviras, our Chief Executive Officer for further commentary, on the results.
Thank you, Hassan. Let me first give an update on recent developments followed by the outlook for the fourth quarter 2019. I'm pleased how our business is developing this year, especially in the past few months. We were disciplined and stuck to our commercial strategy of limiting forward sales during the low months in the beginning of the summer. As a result, we have entered the 4th quarter with an excellent inventory position and forward book.
We can capitalize on the higher pricing environment that may serialized in September October and expect these revenues to filter through in the 4th quarter results. This strategy has helped us has helped us both in the US and in euro. For example, US Midwest UN prices are up almost 50% since the beginning of July. And CN prices in Europe are up almost 30% from that. Going forward, we'll continue to limit forward sales to a maximum of 6 to weeks.
We also expect a step up in volumes this quarter and would like to highlight both our methanol and fertilizer operations in the U. S. Our methanol business received a major boost from the introduction of Natgasoline, which started up at the end of June, and has achieved much better production rates than anticipated so far. In the recent weeks, performance of the plant has been even better. Running effectively and efficiently at a 104% utilization.
Since the start of Natgasoline, it has produced to date, over 500,000 tons of methanol. Efco is also looking very positive. In July, we took a shutdown opportunistically to optimize production, which means it's possible to postpone a turnaround that was initially planned for October. To 2019. Since the work was done, the plant has been running consistently at rates above nameplate.
The plant stepped up production even more in October when we received the permit to increase allowable ammonia production from a 110 percent to 118 percent of maintaining capacity. As a result, our operation team has done a great job in bringing the rates of the ammonia plant to almost 115 percent in the past 4 weeks and the urea plant to 117%. Our DS business in IFCO keeps growing at rates in the double digits from quarter to quarter, benefiting from a market that is growing in excess of 3% per year in North America. We have facilitated further from growth and improved the reliability of supply with some small investments in logistics, adding new railcars and a newly constructed storage tank during this quarter. We are, planning on doubling, our current run rate of DEF during the course of 2019 And so volumes for DEF for 2019 will be effectively double dose of 2018.
Now turning to the outlook. First, for our end markets, we expect that we can maximize the benefits of unexpected continued recovery in our end markets. Firstly, our night nitrogen markets are benefiting from tight supply despite some suggestions this week following the India tender that this was a different case. Not much spare capacity is currently available and very few new capacities are coming into the market over the next 3, 4 years. These additions are further offset by expected plant closures and very low exports from China.
Secondly, inventory levels across the system are very low and well below the levels at the same time a year ago, in particular in major importing countries such as India and Brazil and even in Europe. And the demand outlook is favorable with an expected additional boost next year from an increase in corn acreage, of potentially 4 million acres or in the United States, that should provide an added boost that is not factored in. On on before I go to methanol, the Iran issue will, currently, does not reflect in our in our outlook. The balances for both nitrogen fertilized as well as for Methanol does not reflect any change in, Iran production or exports as a result of the recently imposed sanctions by the US. With at least 4,000,000 tons each, for each product, 4,000,000 tons of, urea and approximately 4,000,000 tons of methanol Iran is one of the largest exporters for both these products globally.
Today, selling prices reflect full export capabilities out of Iran, So until Iran, until now Iran has not reduced exports for either product, but this may change in the coming month. And after the 6 months, waiver on oil, is reviewed. On methanol, in general, there are very few capacity additions coming in the next few years and fundamentals remain robust even if there is some short term volatility as a result of the fast drop, in oil prices. And then I look at the short term outlook for our business. We expect to end the year on a strong note and expect higher EBITDA and free cash flow in the fourth quarter compared to both the third quarter of 2018 and the fourth quarter of 2017.
Our commercial strategy is paying off our sales volumes are going up. We will enjoy a 1st full quarter of Natgasoline, and we have no major turnaround scheduled for the remainder of the year. Our cost position is also favorable, with a low blended average natural gas costs. We have a mix of long term contracts with fixed gas prices in Egypt and Algeria, attractive pricing and spot prices in Europe and United States For our spot prices in US plants, we have hedged primarily by our callers for more than 50% of our natgas requirements, to offset the risk of potential increases in natural gas prices over the period between now and 22, 22, a 2 2021. The collars have a bandwidth of, $2.45 per MMBtu as a floor.
On average and $3.50 on the, on the high side. In addition to those commitments, we selectively do forward fixed price purchase within that bandwidth. For example, we have, hedged approximately 70% of our natural gas requirements over the next 12 months in the US. Specifically, we're pleased that if co has over 70% of its requirements hedged by a fixed price purchases at a price of around $2.40 per MMBtu. As a result of our favorable outlook, we are on track to reach, leverage metric, between 44.4 net debt to adjusted EBITDA by year end and expect to approach about two and a half times net debt to EBITDA towards the end of 2019.
That point, we will start the process of returning cash to shareholders in a combination of dividends and share buybacks. With that, we'll open the line for questions.
Ladies and gentlemen, we will now begin the question and answer session. Please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press the hash key So, your first question comes from the line of Roger Spitz Please ask your question.
Thank you, and good afternoon. I had a few questions on the Natgasoline, accounting. First, am I correct that Natgasoline Equity pickup is included on your balance sheet under the line item income from Equity Accounting Investes Net of Tax.
Hey. Hi, Ken. You wanna answer that?
Yeah. All in on a, on an accounting basis, Natgasoline will be accounted for using, equity accounting. That's correct. But in our adjusted results, we're going to be reflecting our 50% share in the on the adjusted EBITDA going forward.
I understand that I must come to that, but this quarter, you have equity income of minus of negative 3, that presumably includes the not gasoline equity income pickup. Is that correct?
That is correct.
Okay. And then in your segment, you have Natgasoline, equity income pickup is included in is it included in IPSCO in the segmentation?
No, no, it's not including NetSol, but we can get a few, we can definitely send you, if you can send us those questions, definitely on the accounting side, we can walk you through all the additional new accounting that the new businesses coming
into this.
Let me ask you one more broad question about it, you're including in your EBITDA, the 17.7 of natgasoline EBITDA benefit, which is which is fine. But you're not including, which is your share of the EBITDA of Natgasoline, but you're not including your share of Natgasoline's debt. Is that correct? So you're getting the EBITDA benefit, but you're not showing your share of the debt?
In our leverage, yes, in our leverage calculation that we're talking about here, we're not reflecting our share of debt. Mind you that our LV debt on the Holdco has about had about $600,000,000 of financing that is attributable to our investment in Natgasoline.
On the on the same token, this is offset by the, including the full share of the debt of other subsidiaries that have significant minorities. For example, our, close to $700,000,000 of sulfur debt includes, the, the portion of the debt that is attributable to our partner in Sonatuck. So if you add, adjust for that portion of the minority of surfer as well as that portion of the minority, on Ebix it becomes almost a wash.
Got it. Thank you very much for your help. Appreciate it.
Thank you. Your next question comes from the line of Christian Faitz. Please ask your question.
Yes. Good afternoon, gentlemen. Two questions for me. First of all, can you talk a bit about current demand trends, particularly in in Europe, my understanding is that the winter seeded crops have massive drought related problems, which also would suggest that fertilizer's application will be minimal in in Q3 for? Can you confirm that from what you hear, from your salesforce?
And then second question, just quickly, when in 2019, do you plan to conduct the turnaround in fiscal? To excuse me to announce what? The the escrow turnaround went about 2019. Okay. So on the first question, I can tell you that, we do not see that in the demand, in Europe, on the CN side, we are practically sold out, in line with our strategy for the 6 to 8 weeks, forward.
So we are sold out till year end. At current pricing of, reflecting, higher than €235 netback on CN. However, there were disruptions in sending the product out as a result of the lower river which affected, to some extent, our September volumes and September sales, out of the year end, out of Europe But those have started to pick up in the recent days and this and volumes are going out. There is still a lot of demand. We see a lot of demand for, January February, in Europe at current prices and, our reports from, our distribution channels that, warehouses on both CAN and urea in Europe are significantly lower inventories than last year.
So, that is, how we see things on the European supply. The turnaround, in Escrow, we will obviously try to, time it with, the lowest part of the season, around around summer. Okay. Great. Thanks, Thank you.
Thank you.
Your next question comes from the line
Yes. Good afternoon, Frank Claass and Degroof Petercam. 2 questions. 1 on Sohlford. Can you update us on whether there's any insurance payment in Q3 and whether you expect any in the future and maybe also some comments on size of the insurance payments?
And then secondly, on Netgasoline, now that you've finished the refinancing, is there, some up streaming expected in the short term? And when do you expect, dividend payments? Or how does the up streaming in the future will look like?
Python will jump on both questions, even though I know the answers.
Yes. Regarding your first question on SORFET, as you recall, we did record earlier in the year a $20,000,000 down payment on the insurance claim for the shutdown that we experienced in 2017. We progressed the claim during the year We believe we are now in the final stages of finalizing discussions with the insurance companies. The most likely The remainder of the cash that will be received in the for the balance of the claim will occur is expected to occur during the first quarter of 2019, and the we have not yet disclose the amount, but we believe we're going to be within the guidance that we issued earlier, to the market. Which, subject is out because we received, if you factor out the gas, the force majeure on the gas, which we were successfully in securing, then the balance of the claim should be somewhere in the neighborhood between $45,000,000 $65,000,000.
On the up streaming, for Natgasoline, we did successful conclusion of the financing at Natgasoline last week. We will be, we believe we're going to be unlocking cash in various forms, whether it's repayment of the existing shareholder loans or other, working capital that the company provided in during the startup phase that will unlock anywhere between $100,000,000 to $200,000,000 over the next several months.
Okay. That's, that's clear answer. Okay.
Thank you very much.
Question comes from the line
three questions, if I may. Firstly, Mr. Zuwers, I'm hoping that you might be able to share what you think, I know you you haven't include any shortfall from Iran, in your in your balance assumptions. But is there a, you know, you give us some sense of of of how much of Iranian exports might be at risk, you know, what would be, you know, going into 2019? Secondly, you you obviously expressed confidence, about the performance in the 4th quarter.
Think the the full year guide full year estimates on Bloomberg, 1.09000000000 of EBITDA. Does that confidence could you come do you think that consensus is is in the right ballpark? If you could give help us quantify, that confidence you have on the fourth quarter, that'd be very helpful all. And thirdly, were there any ramp costs, in Natgasoline's EBITDA in the, in the third quarter numbers, I for the pricing environment, is that the is that the kind of right run run rate for that gasoline or were there hampering factors on that $18,000,000 of EBITDA? Thank you.
So, first, I'll and I'll start with the question I won't answer. So which is the guidance on the fourth quarter. We we didn't, we're not gonna give numeric numerically guys in 6 weeks before the quarter ends. But what we can say is that, we entered the 4th quarter with, a very, with very strong visibility on our sales volumes We have very little tons to sell till year end to achieve what we think will be a good quarter. So, and, on the Natgasoline issue, you have to remember that we in Metanol, 80 5 percent of our production including BioMCN is contracted with long term clients.
So, a lot of these contracts are 1 month trailing. So even our current drop in 1 month, does not, reflect till the the following months because it's, most of these contracts are 1 month after the formula price is established or the benchmark price is established. So again, the pricing environment has come down a bit in the last few weeks as a result of erratic drop in oil. We think that it's that this is overdone. There is very robust, demand we always hear the same story from the buyers about MTO, in China and Asia about MTO for ability and all that, yet MTO plants continue to run at a reasonable utilization and additional MTO plants are earmarked for commissioning.
So, that side of the of the demand on methanol. We have good visibility also on methanol for Q4.
Not that I'll just add that, just in addition to what the description amounts I've just gave on the market, that on the Natgasoline level, it is true that during the quarter, as we reported, our facilities, the asset utilization rate was around 70%. So that captured the the plant going through a tramp of phase, but as noted indicated by by the end of the quarter, we were already above the intake capacity. So the run rate will be much higher. The pricing also improved upper Q4 versus Q3. And generally, so definitely this quarter does not yet reflect the run rate potential for Nagaseline.
The last question I will answer, which is on Iran, what, what we feel right now is that Iran continues to export. They're putting tons on the market for December, pricing. There is also an element of, exports to the neighbors through trucks, not a lot, But, what we see now is that, capacities have not come down, but if this is gonna become, we we don't wanna speculate, but there's, becoming a bit more difficult for, shipping for, finance and transactions. One clear sign on the India tender yesterday. They wanted to tighten the screws so that really exported products from Iran that go to China cannot be re exported and rebranded as different country of origin.
So, they specifically did cash against documents, payments are no NC so that, A lot of people, are, starting to understand some of the loopholes that exist in the system But for the the current pricing environment reflects Iran producing and exporting 4,000,000 tons of you, approximately, and an equal amount of tons on methanol.
Okay. That that's very helpful color. Thank you both. Thank you.
Your next question comes from the line of Nathan Good afternoon,
guys.
So my first question, I didn't quite catch it. What was your leverage target for year end 2019?
Around that two and a half times net debt to EBITDA.
Okay. And then just on the, the commentary around pursuing an investment grade rating. Have you spoken with the rating agencies? And, what was their their commentary on what needs to happen in order for you to, migrate to investment grade?
So the first issue that, obviously, we are accomplished was that the plant, the end of the cap, the big CapEx cycle, the plant starting operation, and they see the cash from the operating plans, which, they will see you will see from both EFCO and Netgasoline and and all that. So that milestone, I think, is behind us. And then they would wanna see the free cash flow conversion going into debt reduction And the, so we benefit from 2, things, gross debt and net debt reduction as a result of the free cash flow. As well as the rising EBITDA that improves our metrics as a result of, higher volumes and, the current pricing environment. So, we are being, we are constructive, but you have to remember that, we, the rating agencies just rated us less than 6 months ago.
So, this is not an overnight event to get back to the investment grade. But we are, in constant touch and, it's committed to a highly disciplined, financial points.
Okay. Great. And just last one is on the overall debt reduction, how are you thinking about that? Is there any particular slugs of debt that you have identified in terms of paying first?
We have, we we have a quite a lot of flexibility. We have a revolver that is not, fully utilized, but it has still has room that the first, free cash flow, which will be in the fourth quarter when you will you will see it reflected in our revolver at year end coming down because that's the easiest, tool we have and gives us that flexibility. And this was designed from the beginning that a portion of the refinance debt that we did before the summer was in, in in the form of bonds. And a portion was in a banking facility and revolvers. So the revolvers take the first, priority because it's for each of the fusion at no cost.
We also have the benefit of further interest rate step downs as we pass certain thresholds in our overall covenant leverage calculation. So, based on that, as we get closer to the 2.5, this has also a material reduction in our cost of debt on these facilities.
And interest expense in general?
Thank you very much. That's very helpful.
Thank you. Your next question comes from the line of Anthony Coleman. Please ask your question.
Hi. This is Emeris Coleman from Kempenco standing in for Henk Fairman in his absence. Thank you for taking my questions. I have a couple on leverage structures. So firstly, you guide for a 2 time to provide times net debt via in 2019.
What kind of explicit assumptions behind this figure? We estimate 2.5 times net debt video, with an EBITDA of 1,300,000,000, in the next year. This is a number which bear in mind that the current market circumstances, remain stable.
We we use our forecast on pricing because pricing is not up to us on, the, consultants view of 2019 pricing, but, consultants have not, are are below current prices. Whereas whereas what we see, is, or what we forecast is that, quite a rebound past December in pricing, even beyond current prices. So the on the pricing environment, we rely on the consultant with a view on that. So we don't take our own view on pricing. So, the target reflects what the consult the average of the consultants reflect on pricing.
And in that scenario, absent that then they become, they are proven to be right or wrong that will have an impact. On that. But that's our base case on on pricing assumption.
Okay. And, just to follow-up on that, so you mentioned that share buyback and dividends coming from this 2 times net debt, 2.5 times net debt, EDA. Should we assume that this is what management regards to the more leverage in a base case scenario?
I think 2 to 2 a half times, and 2 times through the cycles, is a fair assumption. And and that also includes our assumption of, all the volumes that are gonna, come out from the, newly constructed You're going to see also we announced, very smart, minimal CapEx, and this is going to be, a trend going forward. So for example, we're adding 130,000 tons before next summer of methanol production in our Bowman facility with a total CapEx of $10,000,000.
Your next question comes from the line of Joe Myers. Please ask your question.
Hi. Thanks very much for taking my question. I was just gonna ask about well, there's an impact on the ethanol business from, sort of proposed tariff discussion. I'm not sure whether it's actually been applied yet between US and China and the retaliatory tariffs. It doesn't look like from the the prices it's impacted, and you've never mentioned it explicitly, but wanted to just check up on that.
So the product that's, is very fungible, where it goes people constantly can redirect a trinidadian volumes or, Middle Eastern volumes to a country that, to China and replace those customers with American products that goes into the, their end markets Europe has almost a 7,000,000 from deficit. So there is a lot of arbitrage that, will not make that, have any impact. It's a global market. I'm just having a tip for that, tariff between US and China does not change the and in materials.
Great. Thanks for clearing up.
Thank you. Your next question comes from the line of Andrew Curtin. Please ask your question. Hi
guys. I have two questions. The first one is in relation to benchmark pricing versus realized pricing.
So throughout
Q3, it looked like pricing on a benchmark basis came up sort of across the board, but it doesn't feel like this really flowed through into your realized pricing. So if you can provide maybe a little bit more clarity of any lagging impacts or anything else, which is sort of leading to that disparity. And the second question is around the in the Nintendo, which, had quite a large amount of supply. And clearly, the equity markets panned it a little bit across a number of stocks. So like to have a little bit more clarity on how you, I guess, look at the 3,000,000 tons of supply versus the tight market you're seeing?
And if it could mean anything leading forward to Q4 and Q1 next year in terms of oversupply in the market?
I think, 1st of all, you have to take the 3,000,000, ton number with a grain of salt. Because a lot of these offers were based on getting the supply from the same producers. So there is a lot, a lot of the occasionally. We know from our side that we will probably end up selling around a 100,000 tons, out of, Arabia, in Egypt. And, however, almost 3 or £400,000 of traders quoted between £100,000.
So there's a lot of duplication in that In addition to that, the window allowed for shipment was, completely different than their typical standard. They extended it by an extra 2, 3 weeks. So pro rata, you're going into attend the early, before mid December, but you're still allowing shipments till the 7th January. This has never been the case before. So obviously, you get even production into January, which is not yet, committed or marketed a lot of producers.
So you will get volumes for a lot of people that haven't sold the 1st week of January, and that also added to a combination of multiple accounting of the same volumes and the longer duration. Your other question was benchmark. Benchmark can realize. I mean, when you look at the trajectory of pricing, throughout Q3. July, you came off from practically no demand.
Big, discounts on the, for the summertime program, in US, but then the market started to pick up late in August September. So, there is a timing effect, October prices are significantly higher than even those in September. And through Q4, you're gonna see higher, realized prices. A lot of also variance between, pricing, X Factory and pricing that is delivered to customers. So that also is sometimes changes the, the final number.
But, all in all, starting from October, December, price variances I've been quite, predictable and small.
Okay. Thank you.
Thank you. Your next question comes from the line of Faiza Ahmed. Please ask your question. Sir, your next question comes from the line of Faiza Smith. Please ask your question.
Yes, hi.
This is take a look at me from Editha. So, this is a Mankajanian, and, and thank you for taking my questions. So first question on my end. First, what's the net expansion with our shutdown next year? And and if so, for Javier, and then on EFCO, you've mentioned that the permit will allow you to achieve higher operating rates.
Approximately, I think they can make versus 18% to 20% next year. Is this only for the ammonia line or is it for other lines as well? Finally, on your debt hedges other than escrow, what kind of hedges do you have in place for, if you have the demand as well? Thank you.
So, first of all, the moment, project will not require a shutdown and should happen by, summer this year. So it's an addition that, I mean, we we we don't wanna give up what we're doing, but, we're introducing, a boost of products to, upgrade the quantity that we can refine there. So this became a no brainer for us. I mean, the the project has less than a year of payback. The question on the permitting, we, there are 2 positions with the permits.
1 is the upstream and 1 is the downstream. We are getting, amendments to the permit to allow us to go up to 120% on urea and 1, of nameplate and 120% of ammonia, on nameplate. We are already, achieving on Sundays, 118 percent, of urea. So the payments are covered also the upstream and the downstream. Did I answer all your questions?
Do you have another question?
Yeah. I I had
a third question on the hedges without natural damages, but what you have in mind as well.
Yeah. So, again, so we have this 50% overall, color, but we have opportunities to keep both, for example, for a moment, I think we're we're we we we acquired the guy through, up to 81% till February, March, So within the within the color, we do some, selected forward buying.
Okay. Thank you. Thank
you. There's no further question at this time. Please continue.
Thank you very much, for your time and for joining us and looking forward to our next for the year end results. Have a nice day.
Thank you, everyone. That does conclude our conference for today. Thank you for participating. You may all disconnect.