Earnings Call: H2 2019

Mar 26, 2020

Good morning and good afternoon everyone. Welcome to our results announcement via phone line as well as web today. We'll have a translator online as well. So I will leave sufficient time for the translator to do her job. Well, like we published our annual report and we did a very good job last year in 2019 and we received great support and the concerns from our investors and analysts ever since we got listed. And we have been maintaining very good communication with all the investors and analysts. Because of some special considerations now and in order to respond to the requirements from the supervisors, the Board and the management have decided to have the results announcement done through web and through phone line. We published notice of the meeting beforehand and we collected questions widely before the meeting. The questions will be discussed during the Q and A session. Again, thank you for your attendance and attention. Our CFO, Mr. Junming Gang, will walk you through the presentation of our business performance. After that, we will open the floor for questions and the management will be happy to take questions. First of all, from the online, a different one and then from the web. Now let's welcome Mr. Zhongynggang to report to you on the business performance of COSR in 2019. Mr. Zheng, please. Good morning, ladies and gentlemen. Thank you for attending COSO's Annual Results Price Conference 2019. Please take note of our disclaimer. Today's presentation will be divided into 2 parts. First is 2019 results overview. Let's review the developments of oil and gas industry. As we all know, the oil price continue to fluctuate throughout 2019. Showing a downward trend, the average Brent price was around $64 per barrel, decreasing 10% compared to the 2018. So average WTI price was around 57 dollars per barrel. According to the IH3 report, the total global KPAS for upstream oil and gas exploration and development continue to increase in 2019, increasing approximately 8% compared to the 2018. However, there is no fundamental improvement in the oversupply situation in the oilfield service during this period, KOSO actively sees the marketing opportunity as recovery of domestic and overseas demand for exploration and development and strengthened the strategy of technological and international development. The company's quality operation service received recognition from customers. Equipment operation and maintenance management capability has been greatly improved with constant increase in proportion of revenue of the Technologic segment, while the profitability has been significantly improved. Meanwhile, decent business governance is highly recognized in the capital markets. By 32% year on year to RMB31 1,000,000,000. Net profit increased by RMB2.44 billion year on year to RMB2.53 RMB 2.53 billion. The growth rates of revenue was significantly higher than that of international large drilling and oilfield service companies. In terms of business segment, the workload of 4 segments increased to different extent. Since the sharp decline of oil price and the downturn of the industry in 2016, the COSO has achieved the best year in terms of profitability and operating efficiency. And the revenue contribution of well service increased to 48%. Looking around the global industry, we are also pleased to find our equipment strength ranks in the forefront of the industry and the scale of drilling rigs ranks the 2nd in the world. And the marine support market share is the 3rd largest, and the workload geophysical contract is the 4th largest in the world. Specifically, operating days of the Drilling segment increased by 32% year on year, and the revenue for the period amounted to RMB 10,840,000,000, increased nearly 40% as compared to the 2018. The Wild Service segment continued to increase investment in scientific research and technological innovation. With its competitive advantage emerging and operating results reaching a record high. Revenue for the period amounted to RMB15.06 billion, increased 53% over 2018. Revenue from marine support increased by 13% year on year to RMB 3,000,000,000. The utilization rate of the sales of our fleet was 94%, representing a year on year increase of 4% points. Revenue from Geophysical and Survey segment increased by 31% to RMB2.17 billion as compared to the 2018. The company explores the market and obtained the collection contract in Canada, Namibia, Argentina and Brazil. Let's move on the performance of our core With increased number of tender and bidding activity, utilization rates of drilling rigs also improved gradually. However, oversupply of our production capacity still exists in the medium and the short terms. Day rates are unlikely to see a rise in the near term. As the above graph shows, the utilization rate of the Kosos equipment segment for the average level of 2019 were better than those of international levels. Let's move on to overall domestic market condition. Kosos monitors the demand of inshore core customers, effectively transferred to achievement of independent R and D, reduce the proportion of subcontracting and maintain or increase the market share. At the same time, by practicing the concept of green development, all twelve LNG powered oilfield supply vessels has commenced construction. Through the flexible allocation of resources, KOSO satisfied the increase in domestic demand and the background of the increasing effort in oil and gas E and P. In the overseas market, in 2019, the company made effort to promote the construction of 6 overseas branches with large output contribution and optimize the equipment allocation to improve profitability, KOSO enter into 84 new overseas contracts with a total amount of over $1,000,000,000 achieving new breakthrough in new regions and customers, in particular, Asia Pacific, Middle East and the Far East as important achievements of KOSO's international market expansion in 2019. In 2019, EO2 meets the technical needs of different stage, such as exploration, development and production. KOSO continues to increase its effort in scientific research, constantly breaks through bottlenecks in technological development and accelerates the transformation of scientific and technological achievement. Next, I will introduce 2 representative technology. In 2019, at the drilling edge, our geological oriented technology is the 1st self developed and commercialized drilling edge tour in China. Its performance has reached advanced level in the industry, providing solid technical support for stable production, production increase and the cost reduction development of oil field. Next one, Flat Pro, drilling fluid, which successfully solved technical problem, such as deepwaterlowtemperature, fluidity variation and the gas damage, effectively facilitating deepwater safety and efficient drilling and providing technical support for subsequent market expansion. The company has always adhered the concept of safety first and carry out induced hidden danger investigation and emergency management. The OSHA indicator for the year was 0.11. Excellent quality and safety management performance is an important foundation to ensure internationalization of COSO. Meanwhile, COSO concerns about energy saving and environmental protection issues. We actively made charitable contribution and cohost safety culture events with clients. Here is a capital market honors such a company has received during the past year, the company has won the number of awards, including Outstanding Scientific and Technological Innovation enterprise, one of the best innovative family company and the Board's direct value creation price. In the next part, I would like to share with you the outlook of Coso. First, let's look at the latest development in the oil and gas industry. According to the 3rd party reports, we can see the global supply and demand of crude oil are changing in 2020. Oil price remain on a downward trend. Restart Energy forecast that if oil price stay around $30 per barrel, so global CapEx of E&P Company alone made 4 by USD 100,000,000,000 in 2020. Excessive supply of crude oil and the fluctuation in oil price will bring uncertainty to the industry. Our company will constantly strengthen its modern operation and management and risk resistance. Oil and gas continue to play an important role in China and the consumption structure. In 2020, China will continue to increase exploration and development to assure NG security. Signal Linked Edge is our key customer and its KPAS in 2020 is estimated to range from the RMB85 1,000,000,000 to RMB95 1,000,000,000, representing an increase 6% to 18% as compared to the estimate amount in 2019. In 2020, Xenon Limited will continue to increase its effort in oil and gas exploration and provides the company with potential workloads in the current and future. But as you know and the estimates, so WTI price is around 24 and Brent price is around 30. So low oil price brings a huge pressure on the oil gas company, including Cenon Limited. In the yesterday's conference call and Mr. Cheesache and CNL Limited will cut down the CapEx. And we don't know whether it's take place in the overseas market or within the local market. It took place in the overseas markets, the impact on the coastal will be little. If it took place in the China market, China Offshore, it will bring the big impact on KOSO, but we don't know where it's take place. And until now, we didn't receive any notice about cancellation of project. But it's true, it's some delay, but delay is due to the outbreak of virus. Benefiting from this is expected domestic workload or COSO will increase by different degree in 2020. Based on the above information, Khoso will focus on 5 aspects, including driven by innovation growth, overseas expansion, low carbon development, market oriented operation and boosting prosperity with talent to build 7 capabilities, and we'll also focus on 4 major business segments to realize the strategy or goals of technological and international development with our aim to gradually develop the company into the integrated oilfield service provider with multiple M and G sector coverage and international competitiveness. Next, I will elaborate the development of the company in several aspects. KOSO will break through the technological bottleneck and improve the capacity for applying research results to production through multiple ways. According to the needs of customer, we will continue to create high-tech products and highlight the high-tech value by innovating the model for attracting talents, making good use of existing talent, attracting policy and the focus on the internal talent cultivation. In terms of technological innovation, we will comprehensive accelerate high temperature lodging, small size and high end directional well drilling, deepwaterhightemperature and high pressure drilling and the thick oil development in 2020. In the next few years, KOSO will continue to raise the contribution of the technology sector, constantly accelerates serialization and the industrialization of technology and products and accelerates the commercialization of research finding to enhance the contribution rate of the technology segment. Going forward, let's take a look at domestic market. Our current core market is the offshore market in China and single entities our offshore core customer in China, which is one of our unique advantage. In the current market environment, we will Flexible adjust our business models to provide efficient and high quality service to reinforce KOSO's leading position in China offshore market. First, let's look at the operation of domestic rigs. The slide illustrates the domestic contract status and the situation of 31 jackup rigs and 10 semi sub. It may change in the future because some contracts are still in the progress. We will keep you posted. In order to promote international development more efficiently, the company, based on the customer needs and the market condition in each region, has proposed pertinent measures and gradually given play to the size effect of the overseas market to further enhance the contribution of the technology sector and the expanded size of key markets such as Europe, Africa and the Middle East. If the oil price remain low for a long term for the long time, oil company may reduce capital expenditure and suspend or cancel the operation. The oilfield service industry will face increasing uncertainty. In view of this, COSO will enhance customer communication, learn the workloads and the development plan of customers, seek opportunities for overseas operation. Then looking at the operation status of our rig in the overseas market of 9 jackup and the 4 semi sub, It may also change its future because some contracts are still in progress. In addition, Kosol's adequate cash flow, effective financing channels, lower financing cost and good rating allow it to operate in various modes in a more flexible manner in the general environment of oil price downturn. In 2020, to meet increasing domestic investment in exploration and development, KOSO will keep optimizing asset and increasing input in technology R and D. K PAS in 2020 is estimate at approximately RMB4.8 billion. There has been great change in the recent international macroeconomic situation and the surprise of our commodity and bring new challenge to the company. KOSO will further transfer its cost advantage into its core competitiveness along with technological and international development goals. The company, by virtue of its unique integration advantage, sound financial structure and extensive management and operation team will deliver higher value and return to our shareholders, customers and our worldwide. Thank you for your consistent support. Here comes the end of my presentation. Questions are welcome, please. Thank you. Thank you, Mr. Zheng, for your presentation. Now I would like to open the floor for questions. Since we have investors and analysts from both frontline and web, we would like to invite investors from frontline to put up questions first. After that, we will take questions from the web. For the interest of time, 2 questions maximum per person each time. Please identify yourself before you ask the question as well as the organization that you're from. All the questions and answers will be translated consecutively. Thank you. Now I would like to invite the first question. Just a reminder, there will be translation, so please leave a sufficient time for the translator. Thank you. This is Ms. Di Yang from R&T Health Securities. Two questions. The first question is about price. So can you please share with us what is the day rate and the day revenue of your rigs now? So are they influenced by the oil price because oil price has been dropping recently? If there's a drop, how much is it? The second question is about workload. So looking at your backlog, do you see any defer or any defaults in your backlog? Because oil price has been dropping and it is very low, so do you see any possibilities that your CapEx this year will also reduce accordingly? And if this is reduced, how do you see the upcoming workload in 2020? Thank you. Okay. Thank you, Qiqing. Thank you for your questions. Your first question is about price, whether price has also been dropping. So I just want to remind you to look at the market. Actually, it happened not long ago since the oil price began to drop. And such a drop has not yet passed to our daily business because if you look at our investment, if you look at the response from the market, such a pass drop has not yet fully passed to us or to the market. So far in Q1, if you look at the contracts that are already under execution, we haven't seen any price drop yet. So this is your first question. The second question is about the workload. Our self, the capacity that we own by ourselves are fully utilized right now and getting the near future, we don't see the possibility for such the self owned capacity to cost the pressure to our other business. Globally, whether our contract will be influenced or not and whether there's any termination or any changes regarding our backlog. Domestically, we don't see any change so far on our backlogs. And externally, there is some one particular client. This is a very, you know, a very extreme case actually. This is a client on the overseas market who already expressed the attention of either terminating or suspending the contract. Yet, it is still under discussion and this, as I said, is a very extreme case. And we don't see this phenomenon being happening through all the other external market yet. Your another question is about the oil price being low and still dropping. What do you what will be the changes possibly in the future regarding our workload? Actually, we have not seen any signs that the oil price will go up again in the near future, and we believe that the oil price will be maintained at a low level for a very long time. Definitely, this will represent very big difficulties for all the oil and gas companies and perhaps a lot of them cannot provide. But therefore, we expect that in the market, it will be major changes that will happen very soon. For the oil service industry, definitely, it will take some time, but the influence will be coming. And if you look at our own 4 business sectors, the first sector that will have to break base base impact will be the geophysical and engineering service sector. Our marine service won't be even greater large in the future because of the low price. But regarding our workload, do you see that there will be a major drop in terms of our workload in the company in the future? However, the company, the management is still full of confidence regarding our future growth because of the two reasons. The first one is, in 2014, there was a major oil price drop. However, after that, the company managed to work through all the difficulties in the market and now has already grown ourselves into one of the best performers in the industry. So that is to say we are competitive in the market. The second reason is the China's element. The domestic market is still the most active line in the world in terms of exploration and engineering surveys. I hope I have answered your questions. This is Madam Wang from Merrill Lynch Securities. And two questions. First of all, congratulations on your good performance in Trusty Wang team. And the first question is about your 7 year plan. As soon as that you attended the group meeting not long ago, that is the group level. And do you have any new guidelines regarding the 7 year plan? Or do you still think that the 7 year plan is a major task from the group considering the oil price changes recently? And also the CapEx that may drop seriously this year. Here. And since you have already chartered some vessels from the group, this into the group is going to provide a stock based in the virtual company space for the past month in 2020. So this is the first question. The second question is about the cost. Again, because of the oil price drop, do you see any possibilities that are taking both measures to reduce the cost internally? Because I have noticed that in 2019, the outsourcing cost is 19% as compared to 16% in the previous year. So do you see any possibilities to reduce the outsourcing costs this year? Thank you. Thank you for your good work on our performance in 2019. So two questions from me. I would like to take the first one and Mr. Xiaoxiao Jie, my colleague, is going to take the second question. Regarding your first question about the 5 year plan, because of the oil price has been dropping, whether we are going to adjust the 5 year plan at the fixed level. While my answer is, in my understanding, such a 5 to 7 year plan is a serious commitment from the group to the government and to the country is a strategic commitment. So no matter how the oil price changes, upward or downward, this won't change our commitment to the government or to the country in the long run. The strategy or the 7 year plan will continue. Of course, the oil price has been growing and there's a possibility for the group to find out some of the details in the 7 year plan. For example, some low efficiency activities may be reduced because of the low oil price. But in the long run, this strategy, this commitment will have changed. Let me continue answering your first question. As I said that we're going to reduce the CapEx this year. And do we see any risks involved because of a lot of chartered rigs and vessels? What I want to clarify is that because in the earlier years, we captured the opportunities of oversupplement of major equipment in the market and established contracts with the rig owners and the vessel owners in the risk sharing model. That is to say, if the contract is over, then we don't have to pay any rental for the rigs or for the vessels. So in this case, it won't be any major risk for us. So I just want to add one more thing. For all the rigs that we have charges, about 20 of some, so all the contracts were entered. At the early stage, it is the mid term contract. But at the later stage, most of the contracts that were entered recently are based on back to back model. So in this way, the oil price, no matter how low it is, won't represent any risk for us. Mr. Kang Liu Xie is going to take your second question. Your second question is about the cost whether this has a possibility for us to reduce the outsourcing cost. For a long time, the cost has been our major focus in our day to day day operations. And our goal is to maintain the low cost competitiveness in the market. So that's why we set out the working groups, trying to control all the expenses and expenditures stringently. We conducted the repairs and the maintenance by ourselves. We worked hard to improve the utilization rate of all the equipment. Meanwhile, we also take stringent measures in the procurement in order to further reduce the cost. Meanwhile, we also worked hard on R and D and have already adopted a lot of technologies to further reduce the cost internally. Regarding the outsourcing, actually there are 2 scenarios. Number 1 is about equipment. So we charted equipment from the market depending on different price level because there have been price fluctuations in the market all the time. So we tried equipment from the market, this is the first part of outsourcing. The second part is about the high end technologies. So we believe that through our own R and D activities and the more self owned technologies being developed and adopted, there will be less technologies from external through outsourcing. So this will be the trend in the long run. So according to the price fluctuation in the market, when we decided to charter more or less equipment from the market, Meanwhile, we are also working very hard trying to develop and apply more of our own technologies in the future. Thank you. Let me add one more thing regarding the outsourcing cost. So I just want to remind all the investors and analysts to look at outsourcing this matter from it's just like a 2 sides of a coin. So first of all, the outsourcing is a way for us to create more value and this is where we see potential for us to create more value in the future through outsourcing instead of buying a building of ourselves. Secondly, outsourcing is also a very important measure for us to mitigate risks because of the different cycles in different sectors and also industries. So this is a very important measure we've taken to counterpart the risks because of the cycles in the industry. Thank you. This is Moji Wang from Morgan Stanley. Two questions. The first question, we now expect that the oil service is now almost 50% of total business revenue. I just want to understand what is the competition situation in the domestic market. So if the cost is continuing to go down, do you think that you can find more service providers to do the job, that is the well services? The second question is about the drilling. In 2016, the drilling business was very big. But later, when the market had changes and then there was profit loss and profit actually dropped down sharply. And what is the situation now? Do you think that it will repeat what happened in the past or the fixed cost a fixed income the fixed cost is already very big. So if LHC is in the market, the profit or the revenue will also drop sharply in the future. Thank you. Thank you for your questions. Your first question is about the well service sector. Yes, you're right. As you may have noticed in our announcement we published last night, in the year 2019, our services almost had 50% of our total business of total revenue. And in the oil service sector, it contains the well technologies, well chemicals and well production. So in the first two semiconductors, that is well technologies and the well chemicals, we are very, very confident because so far, at least in the near future, we won't see we haven't seen and we won't see any competitor who has got high technology, meanwhile, very low cost technologies or performance that is very high performance price ratio. So that's why in these 2 semicectors, we are very, very competitive and we are very confident. Regarding the oil production, what we are doing right now is, on the one hand, we enhanced our efforts of corporations with their forward leaders in the industry in R and D. Meanwhile, we're also trying to develop as many as possible by ourselves. So because of this, the oil production sector, it is not yet finalized how the market looks like in China, because there are a lot of food packages, yet it is a sound like sector. So therefore, we will devote ourselves fully to compete in the market and try to establish ourselves well in this market sector. Let me continue with this question. We also noticed that recently a lot of the players that have been operating onshore are now also trying to move to offshore. And through these years of business growth, we have also noticed that the production process, the technologies, the equipment onshore are not that fully suitable for offshore operations constrained via compact space and the capacity if you operate in the rig. So that's why I can tell you that the onshore competitors, they have the production process, the equipment, have the technologies that are suitable for onshore, but not that suitable for offshore. Let me answer your second question. So whether there will be a major uplift down in our technology sector just as what did happen to the drilling sector. So it is exactly because we have already seen the major changes in the market in 2014 that oil price dropped sharply. And we realized that we were very weak in terms of equipment and the technology. So that's why we decided to make major strategic adjustments and restructuring, trying to enhance our own capabilities in terms of equipment and the technologies. We tried very hard to keep improving this sector. During the past few years, our technology sector has been growing very, very fast and now it is almost half of our business. So the advantage of our technology sector is exactly that it is not a heavy asset sector, it is a light asset sector. By relying on the technology, we have been able to win the market and realize the faster growth. And it is because of our strategic adjustments several years ago. Of course, it is also because of its own strength that it has been able to grow very, very well in the past few years. Let me add one more thing. So you are all investors and analysts. You must have already known the oil service industry very well globally. So in the past few years, while the industry was in the very sluggish phase, There were a lot of M and As, a lot of glitches and a lot of technical bankruptcy. That is for the equipment sector, not for the technology sector. So the technology is better at mitigating risk. So as the fund money just like a postal, which is a growing technology and equipment in a very balanced manner in order to mitigate the risks. So this is why we did a very good job last year and this is also where we have got confidence on our long term growth for the whole company. So that's my answer to your question. I hope I have answered your questions. The first question is still about CapEx. We noticed that in your annual report and in your out point, you both mentioned about the CapEx from the senior point of view from the international market point of view. Suppose that the oil price maintains very low, say below $40 per barrel this year or little bit about $40 next year. But how do you see the CapEx for the company? And what will be the CapEx changes regarding your oil service, etcetera? The second question is, what do you think about the impact to your own CapEx or cash flow considering the oil price and mortgage situation now? Thank you. Let me take your first question about the CapEx. So domestically, the CapEx, this is also saying that if you're going to reduce the CapEx, but it is not clear how much it's going to be reduced. So actually, there are 2 parts regarding CapEx, the overseas part and the domestic part. Domestic way, I think that we are going to follow the schedule last year and according to the plan, our workload won't change a lot. And regarding the overseas sector, we'll be able to just follow what is already planned because our workload for the overseas part is not big. So we don't think there's a major change for us as well. Because if you look at our business, in addition to our own business for KOSO, we have other overseas business, which is not part of Synox. It's not our own overseas business. So we will look at the market situation and adjust our own pace accordingly. Thank you. Let me take your second question. First of all, CapEx. Our CapEx for 2020 is RMB 480,000,000 increased in 20 19. There are 3 areas that we increase our CapEx. The first area is R and D on technologies. You may have noticed that from 2016 to 2020, our investments in R and D has been increasing year The second area that we increase our CapEx is on the environmental protection, be it the LNG powered vessels or the disposal handling, we will definitely invest more on this area. The The third area that will be increased our investments is on the chartered rigs or equipment, for example, the renovation. So depending on what are the requirements from a specific project, we will also increase such investments. So far, all the equipment renovations are undergoing properly. Your second part of the question is about the cash flow. So we are holding sufficient cash flow in hand. If you look at your annual report, by the end of last year, we are holding RMB10.3 billion cash flow. So for 2020, this year, we have new plans of bringing back OSS as well as issuing new debts. So these are our plans. So if we follow the plan by the end of this year, we will continue to have sufficient cash in hand and maintain a very healthy and stable financial position. Thank you. Ladies and gentlemen, this is the end of our teleconference. Thank you very much. Thank you all very much for all the analysts and all the investors and their friends. Thank you. Thank you. Just now, we were able to answer some of the questions from our investors and analysts through the phone lines. As I said that we also opened the web for interaction. And after publishing the notice of the meeting, we were able to collect some other questions from our investors as well from the web. Most of the questions we collected through the e mails or through the web are actually covered already in our exchange regarding the 7 year plan. And CapEx questions, for example, CapEx for Simulink and CapEx for COSO, whether there will be any change. So basically, these questions are already answered and we won't repeat these questions. Questions like the net profit, the business revenue growth for the technology sector, why this is such a growth and so forth. These questions were also covered. Yet there's no this question, which is not touched yet. I would like to ask the management to elaborate a little bit more here. The question is about the offshore wind power in 2019. Well, I'll be happy to share with you more information about the offshore wind power project for the company. In 2019, we realized about RMB100 1,000,000 revenue through our shore 1 power project. The reason why the revenue was only $100,000,000 almost $100,000,000 is not big number. It's because that we had limited capacity when we were involved into the offshore wind power generation project. So therefore, in 2020, if you look at our business plan for this year, we will definitely try our best to capture the wind power offshore wind power business, particularly in summertime because that will be the peak of the offshore wind power generation. So this year, we will invest more resources into the capacity building. Meanwhile, we will also be active looking for business partners because we have our own technology and operations advantage for the offshore part. And we will try to work together with the equipment manufacturers and set up a corporation in order to increase our capacity. Actually, this is a very seasonal industry and we understand that the total window for operations is about 6 months that is before and after summer. So internally, we also analyzed our own strengths and the weakness. What we are strong at, the installations as well as the technical analysis. What we are weak at is the equipment production capacity. So that's why we are trying to balance how to grow this new business sector for us. Because if we increase our capacity too big, basically, we have to stop production for half a year. So we are trying to reach a balance at this moment. So that's why we have to realize the growth through the way of working with 2 legs. So on the one hand, we will enhance our own capacity to a limited extent. Meanwhile, we will try to look for the business partner so that we can increase the capacity in the joint method. That's all. Thank you. So thank you all for your questions. I believe that there are still some questions that are not answered yet. However, we have already overrun in our scheduled time and there is a press conference very soon. So I hope that we can find other ways to keep communicating with you and try to answer all your questions accordingly. Thank you. So just a reminder, yesterday, Cenog gave out its results announcement. When they talked about the CapEx, they used the word adjust, not the word cut. So if you want to understand more about the CapEx from Finluc, please pay a visit to their official website. Xiaojing investors and analysts, thank you very much for the exchanges. I will please enter through our presentation and taking the questions. I believe that you have already got a better idea what measures the company has taken and you must have a better understanding of our business and more confident on our business growth. Meanwhile, we are able to understand what are the areas that investors concern more and particularly with such a low oil price situation in the market. So I believe that we will continue with our communications with all of you in the near future. And before we finish, I wish a successful career for all of you and a healthy and good health for all of you and your families. Thank you.