Good morning. My name is Lydia and I will be your conference operator today. At this time I would like to welcome everyone to the FAFSA First Half twenty twenty one Results Presentation. After the speakers' presentation there will be a question and answer session. I would now like to turn the call over to Mr.
Rafael Perez, Director of Investor Relations and Strategy. Please sir, go ahead.
Good morning and welcome to the first half twenty twenty one results conference call of BFESSA. I am Rafael Peder, Head of Strategy and Investor Relations of BFESSA. And today, as usual, we have with us Javier Molina, CEO of BFesa and Wolff Lina, CFO of the company. Javier Molina will start with an executive summary of the first half covering the main highlights of the period. Then Wolff will review the first half and second quarter financials in total and the business units as well as cash flow.
Javier will close this presentation providing an update for our growth plans as well as an outlook for 2021. Finally, we will open the lines for the Q and A session. Before getting started, let me remind you that this conference call is being webcasted live. You can find the link to the webcast and the first half twenty twenty one results presentation on our website www.defesa.com. Now let me turn this call over to our CEO.
Javier, please?
Good morning and thank you for attending this conference call. The 2021 has been the best half in the history of Befesa. Not only we have achieved a strong financial result, but we have also made great development in our growth strategy with the acquisition of American Zinc Recycling. In the 2021, we have achieved $94,000,000 of EBITDA, which represents an increase of 70% compared to last year. This confirms that we are back to pre COVID levels.
The main driver for this increase has been a favorable market price environment in the semester with a recovery in the price of zinc and aluminum as well as favorable zinc treatment charge for 2021. In this semester, LME zinc price has been €2,349 up 27% compared to last year. In the case of aluminum alloys, the average price during the semester has been $19.63 euros up 45% compared to the same period of last year. As we explained already in the last call, treatment charge for the total year was settled at $159 compared to $300 in 2020. This difference of $140 per ton has also contributed positively to the earnings growth we have achieved in the first half of this year.
From the volume point of view, the volume of steel dust treated in the semester has been similar to last year considering that during the second quarter of this year some of the steel dust business plan have stopped to carry out annual scheduled maintenance works. In the aluminum business, the strong volume of secondary aluminum has enabled us to achieve very good results in this business during the semester. The market environment in the main industries where we operate have seen a positive level of activity during the first half of the year continuing the recovery trajectory already experienced in the last quarter of last year. As such, the production of steel in Europe in the semester has increased 18% compared to 2020. The automotive industry in Europe has also shown recovery in the first half as well.
Car registration increased by 25% compared to last year, which was dramatically affected by COVID. On the other hand, the production of car is being affected by the crisis of the supply of microchips not only in Europe, but worldwide. This is impacting the demand for secondary aluminum in Europe, which are which we are successfully compensating with an increase in exports to Asian markets. The generation of cash during the 2021 has been very strong and this has enabled us to finish the semester with $197,000,000 of cash on hand and a leverage of 2.2 times. During the second quarter, we have made great development in our growth strategy.
As we announced last June 16, we have signed an acquisition of 100% of American Zinc Recycling, the market leader in steel gas recycling in North America. As a result of this transaction, Batesa will become the global leader in steel gas recycling with a strong presence in the three main markets in the world Europe, America and Asia. The purchase price of Americans in recycling has been $450,000,000 which implies an attractive acquisition multiple of around six times EBITDA pro form a plus near term synergies. The acquisition is very attractive for our shareholders as it will deliver high value creation reflected in a strong earnings per share accretion, higher overall margin and greater geographic diversification. The funding of the transaction has been done through a combination of the issuance of new equity and debt.
The capital increase of 5,900,000 new BFSS shares under the authorized capital was successfully complete at the price of €56 per share. Additionally, we extended our Tenlor B with an add on of €100,000,000 Our growth plans in China continue as planned on schedule and on budget. The construction of the plant in Jiangsu is finished and we are currently in the health commissioning process expecting to start commercial output from August onwards. We also continue the construction work of our second plant in Hainan, which we expect to be finished during the last quarter of this year. Regarding the outlook for this year 2021 after a very good first half, we expect also a strong second part of the year provided that metal price are maintained at the sale level.
I will provide more details on the full year guidance later in the presentation. Now, Wolfgang will explain the financials in more details. Wolfgang, please.
Please turn to Page six, the first half twenty twenty one consolidated financial highlights. As explained by Javier, Befezza delivered in the first half a record EBITDA of €94,100,000 up 70% from the first half twenty twenty as well as 18% or CHF14 million up versus 2019, clearly demonstrating the recovery to and above pre COVID levels. The drivers of the year over year CHF39 million EBITDA improvement are mainly price driven with the following components: up CHF30 million from higher prices zinc LME prices at €2,349 per tonne, up 27% year over year slightly down €2,000,000 due to lower zinc hedging prices, euros 2,200 per tonne in first half twenty twenty one versus €2,234 per tonne in first half twenty twenty. This partially offset the higher zinc LME market prices, up €15,000,000 from the reference zinc treatment charges settled favorably at €159 per tonne versus $300 per tonne in 2020. Finally, 13,000,000 up from the higher aluminum alloy pre metal building prices, which averaged $19.63 euros per tonne, up 45% year over year, as well as better aluminium metal margins year over year.
In summary, Befissa delivered solid pre COVID-nineteen plant utilization levels and benefited from a favorable market price environment in first half twenty twenty one, which enabled us to deliver our all time high first half EBITDA of CHF94 million EBITDA at a strong 24.5% EBITDA margin. Aligned with EBITDA, net profit was up 25,000,000 year over year, more than double to €45,600,000 in the first half, equal to €1.32 earnings per share based on weighted average numbers of shares of 34,500,000.0 in the first half twenty twenty one. We improved our strong cash, net debt and leverage performance even further to record levels, which I will explain later on, on Page nine. Please note, in the appendix of this presentation, you will find various financial and operational data tables with quarterly, annual and multi year views for your reference. Turning to Page seven, the Steeldust Recycling Services results.
Steeldust Recycling Services continued to perform at very strong earnings levels and achieved €69,200,000 EBITDA in the first half, up €24,500,000 or 55% year over year. The corresponding EBITDA margin amounted to 35%. The price lever was positive by million year over year, being the main driver behind positive EBITDA development. Looking at selected operational metrics on the lower part of the page. Volume or electric arc furnace steel dust throughput remained approximately stable at 341,000 tonnes.
Overall plant utilization continued at pre COVID levels of around eighty three percent. Please note that several of the scheduled annual plant maintenance overhauls were conducted in the second quarter. The average zinc LME market prices stood at €2,349 per tonne in the first half, up 27% year over year. Our zinc hedging prices in the first half were slightly down, slightly lower year over year as well as compared to the spot average prices in the 2021. Combined, the resulting zinc blended price came in at €2,254 per tonne, up €190 per tonne or 9% year over year.
Correspondingly, the positive EBITDA effect from the higher zinc LME market prices of gross positive 13,000,000 was slightly offset by a negative $2,000,000 due to the hedges, resulting net in a positive $11,000,000 effect. In addition, zinc preference treatment charges were settled at $159,000,000 per tonne for 2021 versus $300 per tonne in 2020. Treatment charges are valid from first of January and favorably impacted our first half EBITDA by EUR 15,000,000 year over year. Overall, Steel Dust Recycling Services delivered a very strong EUR 69,200,000.0 EBITDA in first half with a high 35% EBITDA margin and solid plant utilization at around 83%, clearly back at pre COVID levels. Going now to Page eight, the results of our Aluminum Salt Flags Recycling Services segment.
Aluminum Salt Flags Recycling Services delivered in first half a record level of EBITDA of EUR24.8 million, up 12,600,000 year over year, doubling earnings year over year. The EBITDA increase was primarily driven by the price lever, with aluminum alloy pre metal bulletin market prices showing a 45% year over year increase as well as better aluminum metal margins, which combined drove a positive CHF13 million EBITDA effect year over year. The volume lever was overall neutral with higher secondary aluminum alloys offsetting slightly lower sulphur volume due to The UK plant closure at year end 2020. Overall, Aluminum Solstlex Recycling Services delivered the strongest first half EBITDA on record at CHF twenty four point eight million, with EBITDA margin for the Solstlex and Stamford Lining hazardous waste recycling core segment back at 30% and overall plant utilization recovered to pre COVID-nineteen levels at around 90% or above. Turning to Page nine, cash flow, net debt and leverage results.
On the EBITDA to cash flow bridge, starting with 94.1% EBITDA on the left hand side and walking to the right. Working capital was seasonally slightly up by CHF 7,000,000 year over year. Interest as expected, around CHF 8,000,000, with the first of the two biannual term loan interest payments made in January. Taxes, 9,000,000 also as expected, resulting in an all time high operating cash flow of EUR 70,200,000.0 for the first half, up EUR 59,000,000 year over year or more than 6x higher versus the €11,200,000 at first half last year. Note that on a last twelve months basis, the operating cash flows amounts to €151,600,000 well above pre COVID levels.
In first half, we spent maintenance CapEx of approximately CHF 13,000,000 plus growth CapEx of approximately CHF €30,000,000 summing to a total of €43,000,000 on CapEx, partially funded through the China local loans for our two plants at Changshu and Hainan. Also, as you know, on the 06/16/2021, Befesa agreed to acquire 100% of American zinc recycling, aided our recycling assets for a purchase price of $450,000,000 and a minority stake in its refining business for $10,000,000 with an option to acquire the remaining business once certain operational and financial performance milestones are fulfilled. This transaction is expected to close in August 2021 and is financed through a capital increase of new ordinary shares from the existing authorized capital, accelerated equity offering and the Term Loan B add on of CHF 100,000,000. The CHF 3 and 30,600,000.0 of net funds raised through the accelerated equity offering got reflected in our Q2 cash flow. The €100,000,000 Term Loan B add on will be reflected once the deal is closed, thus expected to be reflected in our balance sheet at Q3 closing.
Total recorded cash flow in first half twenty twenty one amounted to positive €372,700,000 or positive €42,100,000 when normalized for the mentioned €330,600,000 net funds raised through the accelerated equity offer. The normalized €42,100,000 total cash flow improved cash on hand from €154,600,000 at year end 2020 to €196,600,000 at Q2 twenty twenty one closing, also a new high end record for Befesa. The normalized cash on hand of 197,000,000 together with our entirely undrawn CHF75 million revolving credit line provides Befesa with a very strong liquidity of CHF222 million. This is supporting the enhanced credit ratings by Moody's reaffirmed at current BA to stable and Standard and Poor's who upgraded the Fisher's credit rating to BB plus stable. Net debt reduced to CHF371 million and with the last twelve months rolling CHF166 million EBITDA results in a 2.24x net leverage, reduced from 3.1x at year end twenty twenty.
The AZR acquisition will maintain the Fiserv's leverage ratio at similar levels post acquisition of closing. The current 2.24x leverage below two five will trigger the next interest rate budget. As such, interest rate paid on the Term Loan B will reduce to 1.75% from 2%. Based on the CHF $626,000,000 extended Term Loan B, this 25 basis points reduction will imply approximately CHF 1,600,000.0 annual interest savings. We continue to be compliant with all debt covenants and have no applicable covenants.
The capital structure remains unchanged and long term, all set to July 2026. Summarizing, the backbone of the future is strong and we continue to manage conservatively. Three main levers are: capital structure, long term, all set up to mid-twenty twenty six and at an efficient interest rate, reducing to 1.75%. As well as cash, cash we manage conservatively as well as liquidity. Even at the peak of COVID-nineteen, we held more than CHF100 million cash and now achieved a new record CHF195 million cash on hand, even more than CHF195 million at Q2 closing.
Hedging our strong and long term hedge book reaching out to July 2024, thus for the next three years. I will explain on the next page in more detail. Those three levers: capital structure, cash hedging formed a strong backbone of Perfesar's financial capital structure and served us very well in crisis situations like the COVID-nineteen pandemic. This allowed and allows us to continue to go full speed ahead on our growth expansion in China and in The U. S.
Turning to Page 10 on hedging. In second quarter twenty twenty one, we continued our hedging rigor and extended our zinc hedge book further up to and including July 2024. For this year 2021 as well as for the following years 2022, 2023 and 2024, we are fully hedged at the targeted 23,100 tonnes per quarter or 92,400 tonnes annually, thus overall with three years of hedges on the books. 2021 is hedged at around EUR 2,150 per tonne sold forward price. 2022 at around €2,200 per tonne, 2023 at around €2,300 per tonne and the 2024 at around €2,325 per tonne.
The hedging provides the peso with improved pricing, earnings and cash flow visibility to fund our growth initiatives organically. Our hedging strategy remains unchanged. We hedge one to three years out. We target 60% to 75% of our zinc equivalent volume. The majority or around 80% is in euros, the rest in Korean won.
And we don't provide any collateral, the risk is transferred entirely to our hedging partners. Referring to the first half, the lower left section on Page 10. In first half twenty twenty one, the zinc LME market prices averaged at approximately €2,349 per tonne. Our zinc hedges were locked in at approximately €2,200 per tonne on average compared to the strong slightly below water compared to the strong spot price in first half. Overall, the zinc blended price in first half averaged at EUR 2,254 per tonne, up 9% or 190 per tonne year over year.
Summarizing the financial section before we turn to the growth and outlook, three points. One, Vipissa delivered in first half twenty twenty one the highest first half in the history of the company at CHF94 million EBITDA, up 70% over last year and had a very strong start to the year in terms of operating cash flow, cash and leverage. Secondly, our financial backbone is strong. We extended our hedges out to July 2024. Our capital structure is efficient and long term, resulting in stable and strong liquidity.
Three, based on this strong backbone, we funded our expansion in China even during this challenging pandemic full speed. In China, we are progressing on schedule and budget and entered in The U. S. Market through the acquisition of AZR. Back to Javier, who will provide you the latest on our China expansion, AZR acquisition and the outlook.
Thanks, Walt. I would like to finish the call providing some more details and thoughts on the outlook of this year. 2021 is an exciting year for BECHESSA and truly an important milestone in the development of the company as we are entering in a new market like in The U. S. And at the same time completing the construction and start the operation in our first two plants of steel dust recycling in China.
In North America, after the signing of the acquisition of A5R, we expect the closing of the deal to happen over the coming weeks, mid August. After that, we will start with the integration of the company to Vitesse in order to capture the immediate synergies and take control of the operations. In China, at Jiangsu Province, as explained, we have completed the construction of the plant and we are finishing the hot commissioning of the plant. After that, we will start with trial production for which we have already secured the steel gas volume from customers. We expect to start with commercial output from August onwards.
Our second plant in the province of Hainan is developing as planned on budget and on time and we have scheduled around six months after year two. We expect to complete the construction of the plant in the last quarter of this year. Moving now to the market environment. We have seen over the first half of the year a continued recovery of the steel production in Europe. And we expect the current level of steel production to be maintained throughout this 2021, which will represent a higher production over last year.
Regarding the automotive industry, in Europe, we will see how this develops over the second part of this year, especially with regards to the microchip situation. Let me now explain some details on the outlook for this year. In the first half of the year, we have made significant progress strategically, operationally and financially. Our outlook for the second part of the year remains very positive. And after the closing and consolidation of the HSR acquisition,
we
will update our full year guidance for 2021. We expect strong second part of the year, driving by a strong volume which will be positively impacted by less maintenance shutdown as well and some volume contribution from China. From the metal price environment, we have seen a strong first half of the year with average zinc LME above €2,300 per ton and aluminum alloys just below €2,000 per ton. If this price continue at the same level, we expect to end the year at the higher part of the EBITDA guidance that we provided in the last conference call of between €165,000,000 and €190,000,000 without taking in consideration the acquisition of American Seam Recycling. As I said, once American Seam Recycling acquisition is closed and consolidated, we will provide a revised guidance for the full year within our Q3 results reporting cycle.
Cash flow generation is expected to be very strong for the full year and we expect to end the year with a leverage ratio of around 2.1 times and 2.2 times. Finally, on ESG, I would like to stress once again that we are doing a lot of efforts to make sure that the market understand how the FESI is part of the circular economy and contributes with its business to environmental protection by recycling more than 1,500,000 tons of hazardous residues annually and producing more than 1,300,000 tons of new materials reduction reducing the consumption of natural resources. This has been the backbone of the business since the company started more than three decades ago. Thank you very much.
Thank you, Javier. We will now open the lines for your questions.
The first question comes from Ingo Sechel from Commerzbank.
On your earnings outlook for the second half of the year, I think we're obviously seeing a lot of cost inflation, freight costs, fuel costs, coking coal. I think so far in the first half, you've not been strongly affected. The inflation, others line that you show in the earnings press is pretty low. Can you tell us a bit whether you expect any pockets of cost inflation in the second half of the year? Because obviously, you've not increased your guidance, and I guess it's understandable with the closing of ACR being around the corner.
But just want to understand whether there are actually any reasons where you see a few millions of costs increase, which might explain why the upper end of your guidance is still a few million below where many analysts currently see your EBITDA for the full year.
Okay, Hans and Ingo. Well, the cost inflation has been in fact during all the year and for sure it's been it is affecting our P and L especially in the energy cost as you know very well. But and we have included this consideration, this assumption in the guidance that we are providing. On the other hand, based on that we are enjoying a very good levels of prices both in zinc and aluminum. So based on that is why we feel very positive for the second part of the year.
But we see that the second part of the year should be at least as good as the first half. In terms of volume even slightly better because we have done the big part of the plan of Bilbao in Stildas, we have made the big part of our maintenance shutdown in the first half of the year. So the second part of the year in terms of your volume would be slightly better than the first half. We don't see any price variation in the short term. So we are considering the inflection causing in our assumption.
So based on all of that is why we consider that we should finish in the very high part of the guidance that we provide to the market in the last presentation.
Okay. Thanks. And on China, can you give us a bit more detail on what you expect when you talk about the first commercial output in August? What tonnage of volume of actual commercial output you expect maybe in August on the third quarter, whatever you want to share? And also from how many different clients you expect to receive dust in August or the third quarter?
Okay. Thank you, Ingo, again. As you know, we are doing the health commissioning in those days. That means that we are starting to receive a steel DAC from our customers. We are talking with all the steelmakers in the province.
It's not a huge number. We are talking between 15 to 20 steelmakers and we are in conversations with all of them. And we are starting to receive that from some of them. And we are in a double position. One, start to get still that to do the trial literature and start to talk about long medium and long term contracts.
For sure, we will start our operations in commercial operations in August and we will have a good volume of steel dust to we will get a good volume of steel dust during the first semester. Let's see how about the ramp up of the plant And that's why we cannot confirm the amount that we are going to fill during the first quarter because it will depend mostly on the evolution of the ramp up of the technical ramp up of the plan. But let me finish telling that we feel very positive both in the technical side and in the commercial side.
Okay. And when it comes to China and North America and cash flow, I mean, your cash flow has been very strong this quarter again. Once you start consolidating or ramping up China and North America, do you expect these markets to have a structurally different cash conversion and payment patterns? Or should it be very similar to the, let's say, near zero net working capital in other markets?
It could be totally similar to the situation that we enjoy in our current markets. The rationale of the business is exactly the same. In the case of North America, it's something that we know very well because it's a mature market that it's been running in the same way than the European one. And in the case of China, what we expect is to be in the same exactly in the same situation that we are having in our current market. So we don't expect any change in our working capital situation.
Okay. Thanks and congratulations on the record numbers.
Thank you, Leon.
Thank you. The next question comes from Michael Hoffman from Stifel. Please go ahead.
Thank you very much for taking the questions. I just would like to follow-up a little bit on what I just heard. Just to be clear, you're from a standpoint I get why you're not giving guidance because Asia is going to or American Things is going to close soon, but you are at the upper end without it is what you're saying of original guidance?
Yes, yes, yes. This is what we've guided clearly.
Okay. Could you share with us the approximate assumption for what capacity utilization will be in the second half given the level of maintenance that was done in the first half? Will we be running in the 85%, 90%? Yes. Well,
basically the utilization rate during the first half has been high, I would say very high. In our internal language, can say that we have been running our plan at full utilization. What's happening is that we have had especially during the second quarter most of our maintenance shutdown. In the second part of the year, we expect higher utilization rate because we will have less maintenance shutdown. We expect only the maintenance shutdown of our planned VDAU.
And with that, we will have all the maintenance shutdown done in the first three quarters of the year. So the utilization rate would be very high and close to 90% or around 90% for the second part of the year.
Okay. So that would put you at selling nearly two and forty thousand to 245,000 tons of zinc oxide then this year. Is that a reasonable conclusion?
Yes, I think so. I think so.
Okay. And then, Wolf, what are some of the other revenue lines that are in the steel dust business? What did they do this quarter just so we can tweak that part of the model? Things like stainless and those that other line that you have?
Okay. Sally, we expect the second part of the year should be in the stainless steel business stronger than the first part. We don't expect well, we don't expect a huge contribution in terms of EBITDA, but we expect to do better than the first part of the year. Clearly, you have done the maintenance shutdown as well in the first part of the year. So the evolution
in the
second part of the year would be better than in the first part.
Okay. And then on the aluminum side, given what's happening in auto production in Europe, is the buyer outside of Europe something that can be sustained? Or is this a good short term solution?
Well, we don't know very well. What I can say right now is that we are enjoying the situation today. The European automotive industry is suffering well like the American one because the microchips crisis. But we have been able to sell all the production or the state of our production that we cannot sell in Europe, we are exporting to Asia. I can say that the we have visibility for the third quarter.
I mean, third quarter will be again a very strong quarter for the secondary aluminum business. And we don't have visibility for the last part of the year. But I feel positive for two reasons. One is because the microchip crisis is starting to finish at least is what we hear from some of our customers. And on the other hand, we see that the Asia market is still being very strong.
Okay. Terrific. Thank you very much.
Thank you, Michael.
Thank you. The next question comes from Benjamin Van Sparrow from Berenberg. Please go ahead.
Hi. Good morning, everyone. Just a few follow ups, please. Coming back to China, with commercial operations starting in August, does that mean mean, you expect to already book some revenues from those commercial operations in August? Or how are those initial kind of trial volumes working?
Is that immediately profitable? Or is there some ramp up costs associated with that?
Well, I think Benjamin, thank you for the question. I think we should be prudent regarding the first month in China. In theory, yes, we will start to have some revenues in August. But as I told before, it will depend on the evolution of the ramp up. Until the plan is running properly, we cannot on print that we are not going to have any technical lead
We are we need to think that we are in a trial period, in a ramp up period. And for us now the most important thing is to finish the ramp up totally and properly. This is our goal in this moment. Well, and based on that we don't expect we expect some revenue contribution, but we don't expect a very some relevant earnings contribution because as you said very well, we cannot forecast very well which will be the cost in this period etcetera. So based on that, we expect to have to get some revenue contributions and have some earning contribution, but nothing really very important.
2021 will be our first year of full operation. And then that will the year to expect an important contribution for our earnings.
Understood. Thanks. And just coming back to a previous question as well on the volume expectation for H2, could you repeat that, the figures which you confirmed? I think it was 02/20 to two forty volume in the second half. And was that presumably excluding China?
I don't I didn't understand very well, Benjamin. Can you mean what is the exact question you are asking for?
Yes. Sorry, just coming back to the steel dust volumes in the second half. I think it was a previous question and you confirmed the volume number for the second half. I'm just wondering if that was excluding China or including China?
Well, we are not taking in consideration China. This is basically what they said is that the volumes in the Stilda business in the second half of the year would be higher than the first half without considering China. And this is because the volume of shutdowns we have done in the first part is higher than the one we are going to have in the second half. It's not dramatically higher, but slightly higher. This is without consider China.
China will be on top of that.
Okay. Thanks. That's all. Thanks very much.
Thank you, Benjamin.
Thank you. The next question comes from Olivier Carvey from Kepler Cheuvreux. Please go ahead.
Yes, hi. Thanks for taking my question. Somehow it wasn't working earlier. But yes, I was just wondering on if you could come back to the way you expect the contracts to be signed with your suppliers in China. Yes, just over the next few months, obviously, are pretty getting pretty close now.
We are in the middle of the conversations and we got the final hazardous permit in China, which is the milestone which permits us to sign contracts. And we are in the way to do that. We expect to start to sign first contract immediately. So we and now it's a nice moment in our negotiation with our future customers because well, we need to think extension of the contract short term long term in the commercial conditions is not to enjoy a very good levels of zinc prices very nice for our business, but it's not the best to negotiate first contract in any new European like China. So as you can imagine, we are in the middle of this process trying to manage in the best possible way for us the situation.
But yes, the answer is we are now starting to sign contracts. Probably what we are going to do and would be the best for us is to don't sign long term contracts, because it's not the best moment to sign long term contracts. But we will start to sign we are starting to sign contracts.
Okay. Okay. That's pretty clear. So just to confirm, you did get this sort of final hazardous, let's say, permit in China? Or is
Yes, we work.
All right. And then second question, I just wanted to come back on the timing of the work shipments. Can you just explain like from an operating point of view, how this looks like and why we see this difference quarter over quarter?
It's something that for us is impossible to program, let me say. Because I suppose you are asking this question because in this quarter you have seen that the work sale has been smaller than the previous quarter with a high production of with a high treatment of steel that. The reason is that because there are some vessels in the harbor that are waiting to move. And the reason for that are very different reasons and for us it's quite impossible to program or to organize in a different way. The results are there and we will enjoy the results in the next quarter.
No, that's a fair point. But I just wanted to clarify what can be some of the reasons why you would see Several
different reasons, Oliver. Nothing special and nothing that could be organized in different matter. It depends on different factors. At the end of the year in a few years normally it's not affecting the final view of our P and L.
Okay. All right. Thanks.
Thank you. Ladies and gentlemen, there are no further questions. I will now give back the floor to Mr. Rafael Perez. Thank you.
Thank you all for your questions. You can also contact the Investor Relations team of Refesa for any further clarification. We will now conclude the conference call and the Q and A session. Let me remind you that you can find the webcast and the dial in details to access the recording of this conference call on our website www.vesso.com. Thank you very much to all
of you, and have a good day.