Earnings Call: Q1 2021

May 25, 2021

Good day, and thank you for standing by. Welcome to the Petronas Gasperhad Q1 FY 2021 Analyst Briefing. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Izzan Hajjar Ishaq. Thank you. Please go ahead. Thank you, Rochelle. Good evening, everyone. Thank you for joining our session today for Petronas Gasper Heart's Analyst Briefing for quarter ended 31st March 2021. I'm Izzan from Investor Relations. I hope it's not too late to wish Lama Hiraya, who everyone managed to celebrate their facility in the best way that we can. With us from PGV, we have Inci Abiodas Osman, Managing Director and CEO Juan Shariza Shariza Malba Youssou, CFO and Antti Abdurazazaib, Head of Business Development and Commercial. For your information, we are all on full virtual mode today, dialing in from our respective homes. Therefore, please excuse any disturbances that may come our way during the session today. Okay. We will start the briefing with highlights, company performance update and to be followed by Q and A. For reference, our financial results is available at both BOSSA Malaysia and CGB website. The presentation material for today's analyst briefing is also available at our website and at the webcast host platform. Without further ado, I'll hand over to J. Addis to start the briefing. J. Addis? Thank you, Ivan. Everybody can hear me, right? Okay. Yes, thank you. Okay. Samu alaykum and good evening, everyone. Again, Slama and Raya, if it's not too late and of course with the situation with COVID, please stay safe everybody. First and foremost, let me start the briefing with the external environment and challenges that We have to navigate during this to run the business during this Q1. So during the period, as you You can see from the slide, the Asian GDP recorded better than expected performance of still negative 33%, minus 0.5% despite the imposition of MCO2.0 during the quarter. The Industrial Production Index, IPI, grew 9.3% in March 2021 as compared to the same month of the previous year. The growth of IPI in March 2021 was mainly driven by Manufacturing and Electricity Index, Which increased 12.7% and 10.3% respectively. Compared to the same period last year, During the MCO last year, the total gas demand was around 1500 or thereabout. But this year, despite the imposition of MCO3.0, the gas demand has still stayed at the Normal level of about 2,000 to 2,100. So the demand is sustaining. In as far as COVID situation, movement continue to be restricted. Later, we'll show how we are responding to this operation wise. Of course, you can see from the slide, compared to last year, the number of cases of COVID At the start of MCO last year, around 100, then the country or the government managed to reduce it to Very low level of about 24. But today, it has gone back to More than 1,000. And of course, this period has gone to almost 5,000. Today, the last I heard about just now has gone about 7,000 to about 7,200. So The challenges is much higher than what we experienced before. But despite the much higher cases COVID, so far our barrier management has been successful with manageable cases for our staff. Very, very minimal cases has been experienced throughout our operation. Okay. If we can go to the next slide. So how did we do in the midst of these Challenges in the Q1 of 2021. Our business was operating as usual despite the challenges that I mentioned from the perspective of health matter and economic condition. Operationally, our plant and facilities sustain high reliability across all our business segments, resulting in the gas processing business achieving the agreed target incentives. Also, earlier this year in January, we successfully launched our 1st remote operation center, what we call ROC, at our Keqe site in Danganui. The ROC is able to monitor our utilities operation in Gaebein, Wontan, remotely from Keqe And this initiative was made possible by leveraging on technology has actually facilitated our transition towards Having a consolidated view of our operation to increase efficiency and effectively. By October this year, in short, We will have full remote operation of debbing from our Curtae facilities. Commercially, PGB is supported by our long term agreement with Petronas and other customers with the certainty of gas processing agreement And the tariff imposed per the contract on the regulated business, I. E. The gas transportation and regasification, About 90% of our earnings should remain steady for the next 2 years. In addition, While we have the steady revenue, we have new income from ancillary services that serve to complement our core businesses. We also played a key role in the 3rd party access as we successfully unloaded Another third party LNG cargo, regasified and delivered it to the designated customer. During the Q1 briefing, I mentioned about growth. So as for growth, we are focusing on exploring new opportunities, Work on the lateral gas pipeline to Pulauinda, which we have announced in February, is progressing as Thank you, Jean Robert. The first name of the pipe should commence sometime in August. We are also working on relocating 2 of our To debottleneck the southern region pipeline to meet the demand for which we have seen Increased tremendously in the southern sector. So again, for the growth, more projects is in the pipeline and we will announce accordingly in due time. If we can move further to the next slide, looking at financials. For the quarter ended 31st March 2021, PGB recorded BGB1.3 billion revenue, Lower than the preceding and the same quarter last year. This was mainly due to lower revenue from Utilities segment, Which depending on the gas price, which was lower, so In such case affecting the sales price to customer. As you all are aware, the fuel gas price was Based on the regulated price in reference to market price. Nevertheless, despite low revenue, the Group gross profit was higher at ringgit712 million on the back of lower operating costs Across all segments. Consequently, the profit after tax was also higher at RMB540 1,000,000 as the higher gross profit was further supported by Favorable foreign exchange movement compared to the same quarter last year. Later, Sharice will be presenting more details on Our financial, yes. If you can go to next slide on operational excellence. So, okay, we are on the slide. The operation at our gas processing plant continued to operate as usual. This is despite the MCO as I've mentioned. The OEE or the overall equipment effectiveness demand within rates For both C1 and C2 products, we achieved 99.9% sales gas liability, which demonstrated our commitment to the customers. The high level of efficiency also resulted in almost in about Ringgit 24,200,000 of performance incentive achieved. The incentive consists of Ability to produce ethane, propane and butane on sustainable basis as well as internal gas consumption. So this achievement also was leveraged on digital initiative that we have undertaken. And one of the thing that we have done was having a technical center where we monitor all critical human parameters And catching whatever the potential issues with the equipment and tackling it before it become an issue and Subsequently, tripping the plant. So those achievement in digital initiative has contributed to this Performance incentive, as I mentioned. If we can move on to the next slide on the gas Transportation and Regasification. So, pipeline network reliability was sustained at 100%. And for the quarter, we delivered an average of CNY1.96 billion cubic feet per day of sales gets to customers. For the Regal Spatient business, both RGT Sengai Uddang and RGT Pengerang sustained each OEE level at 100%. And during the quarter, as I mentioned just now, RGT's Nai Uddang received 1 cargo, while RGT Pomerang received 5 cargoes, making it a total of 6 cargoes received so far for the year. If I can move to the next slide on utilities. During the quarter, there was lower volume of electricity delivered due to lower Speak from our customer compared to the same quarter last year. If everybody can recall, last year Q1, there was no MCO. So this year, we are still stuck with MCO or whatever form of movement restriction that has been happening throughout last 1 year. On the other hand, the offtake of steam has increased In line with the first delivery to our new customer, PolyPlastic Asia in quarter 4 last year. As for Industrial Gases, the higher volume was mainly because of low offtake in quarter 1 2020, mainly due to customer turnaround at that time. Overall, we continue to fulfill the customers' demand With 100% product delivery liability recorded across all products. So ladies and gentlemen, that's all for operational performance. We will next move to financial segment with Charis. Over to you, Charis. Thank you, Tia Adi. Assalamu alaikum and a very good evening, everyone. I do hope everyone is Looking well under the circumstances, Lama Hari Rai as well to those salary ratings. So I'll be taking you through the financials. If you could turn to In Q1 2021, as articulated by Chia Azis, the business continued to run despite the several phases MCO imposed by the government. Against the preceding quarter for Q4 2020, we saw slightly higher revenue at RMB479 1,000,000, while gross profit improved by 8% to RMB242 1,000,000, mainly due to lower operating costs. Against the corresponding quarter, Q1 2020, revenue remained comparable. Segment results improved by 9% also on the back of lower operating costs. Moving on to Guest Transportation segment on Page 15. Under the incentive based regulation, the regulatory period 1 or RP1 tariff for the PCU pipeline network remains unchanged for 2021. Comparing again last year at quarter 4 2020, we saw slightly lower revenue by 2% at CNY288 1,000,000, basically due to lower number of operating days, while gross profit rose by 14% RMB298 1,000,000 mainly due to low operating costs. This compares to the preceding quarter where we saw a higher level of Operations and maintenance activities are under disciplined. Against the corresponding quarter or same period last year, Q1 2020, Revenue was also slightly lower by 2%, similarly due to lower number of operating days, while segment profit was higher by 5%, again due to lower operating costs. This includes lower internal gas consumption or ITC costs. Moving on to the recapitulation on Page 16. Similarly, the RP1 tariffs We remain unchanged for the year for both our gasification terminal. Compared to the preceding quarter, Q4 2020, We saw a decline in revenue by 2% to Ringgit million. Again, this was really due to the lower operating days in terms of calendar days at both RGC facilities, while segment results increased by 20% to RMB197 1,000,000 as we recorded lower operational expenses. Against the corresponding quarter, Q1 twenty seventeen, we saw a Slight improvement in terms of revenue by 1%. This is in line with the introduction of new revenue streams, Mainly the LNG reloading for Bun Kooing at our Sungai Uddang regasification terminal and also the LNG truck loading activities at the Pengerang Regency Commission terminal. Gross profit increased by 19% on the back of lower operating costs, mainly in relation to ITC or internal gas consumption. Last but not least, for utility, The segment was recently affected by the reduction of or lower fuel gas price Following the changes in pricing from regulated price to reference market price, it took effect 1st November 2020. As far as the utilities revenue is concerned, for all of our products, we are allowed to pass through the fuel gas Costs due to the pricing structure with the exception of electricity because electricity price is regulated. So when there is a lower or a reduction in fuel gas price, which was the case in quarter 1, The margins for our electricity volumes benefited from the movement. And hence, we saw a favorable movement in terms of gross profit. So comparing the quarter against preceding quarter, quarter 4, although revenue was lower by percent due to the lower product prices. Segment gross profit remained comparable because we saw lower operating costs In addition to the fuel gas costs, this is to reset the lower revenue impact. Against quarter 1 20 Similar trending, revenue was also lower by 15%, again due to the impact of the fuel gas price on the pricing of our products, although we did register higher sales volume. In comparison, our segment gross profit surged by 127%. As mentioned, this is due to the favorable margin impact of the lower fuel gas on our electricity sales as well as lower depreciation expense. So on the next page, we have the impact at group level. Just to elaborate a bit on what Tejas had already mentioned earlier, again proceeding quarter by quarter 4 2020, Group revenue was RMB1.34 billion, lower by 4% due to the lower revenue from Utilities segment. As mentioned, This was the lower product prices to customers. Gross profit, nevertheless, improved by 12% to BRL 712,000,000 on the back of lower operating costs. This was in relation to fuel gas costs and other costs such as repair and maintenance across the segment, Well, profit after tax was correspondingly higher by 4% at JPY540 1,000,000 because we saw the high gross profit being supplemented by higher share of profit from joint venture companies offset to some extent by unfavorable impact of foreign exchange movements. Against the corresponding quarter Last year, Q1 2020, we saw a slight decline in revenue by 4%, mainly due to lower revenue from Utility segment as explained previously. Gross profit, however, improved by 17% because before all segments recording higher contribution, With lower operating costs relating to fuel gas, ethanol gas consumption as well as depreciation, Our profit for the quarter grew by 55% because the higher gross profit was spreadable set by favorable foreign exchange investments. On the next slide, Page 19, this is the balance sheet that remains robust with over RMB18 1,000,000,000 in total assets as of 31st March 2021. While cash equivalents stand at over RMB2 1,000,000,000. In terms of distribution of group segmental assets, this was similar to previous quarter. On Page 20, dividend. The Board has approved, as you are aware, the 1st instant dividend of RMB0.16 per share, which amounts to rmb216.6 million, which will be payable on 21st June 2021. The interim dividend demonstrates our commitment to ensure a healthy level of return to our shareholders despite the challenges as mentioned by the Agile earlier. So with that, the earning financial question, I will now pass the line over to Agile to on our company's outlook. Thank you, Sharice. Moving on to updates, Page 22 please. So as part of a series of upcoming growth opportunities, our latest project It's expanding our Southern Peninsula gas utilization capacity to meet the increase The increasing gas demand in southern region of conventional Malaysia. We plan to increase the pipeline capacity, Which is currently fully utilized. If you look at the map, the southern sector in red, that's where the pipeline is actually fully utilized. So the demand growth in that sector is quite bullish. So to meet the customer demand there In terms of higher pressure requirement as well as additional volume, We have sanctioned this project and the project is currently ongoing and expected to be completed by July 2022. The project has been approved by Srinjetenaga also and therefore the cost recovery will be part of RP2, Derek. Following the expansion of the debottlenecking exercise, we anticipate that there will On our part, PDB look forward to cater for the Expected bullish demand in the near future. Previously, we also talked about the prospect In Power Industry, happy to say that we are currently in discussion with other parties to frame some of the Potential opportunities that we have identified. We will provide more details once these are set And in place potentially in short while in the next briefing. The next slide, Yuan? Okay. I post that is the presentation. So we can move on to question and answer then. Thank you. Rochelle, if we can start with the question and answer. Any question from the Please standby while we compile the Q and A roster. We have our first question from Alex Goh of M Bank. Please ask your question, Alex. Thank you, everyone, for the opportunity and congratulations on the strong set of results. I have a number of questions. Maybe I just run through 1 at a time. First is regarding your CapEx for this year and next year. And also to find out for your debottlenecking project at the Salton pipeline, How much would that actually cost and how much would that add to your CapEx? And Dave, I think you might as well your pullout in that project as well. Ms. Chavez, can you take the question? Yes, sure. Yes, Thanks for the question, Emma. CapEx for 2021 this year, CapEx is expected to be around between RMB1.2 billion to RMB1.2 billion. Again, this takes into consideration the projects which have announced, which is the 42 kilometer lateral pipeline as well as this debottlenecking project. In terms of 2022, Kissek, we probably will be looking at maybe Slightly lower, but again, this depends on the opportunities that, as I just mentioned that we're looking at. So actually, we will be in a better place to guide 2022, probably middle of this year, Once those opportunities there's some progress on those opportunities, yes. But generally, it will be slightly lower than looking at something slightly lower than 2021 at the moment. In terms of the project costs, specifically for the compressor relocation, Right now, the cost is just under a ringgit 100,000,000 ringgit. Hopefully that answers the question. And I think the spending on That CapEx is recovered 2 years. So the figure that Shares mentioned just now has included the total CapEx For this project or so, yes? Yes, yes. Okay. So basically, the De Bottlenecking project Basically, it means just moving the compressor from one place to another. Is that it? It sounds like you're building a new pipeline altogether, am I right? No, You're right. The way a pipeline system works, either you build a second pipeline or you Put a compressor station. So in this case, we do have compressors that We are not using currently, so it's just moving it to a new place. Then that will add in Capacity, in this case, as what was shown in the presentation, it's about additional 150,000,000 cup more. I see. You've indicated that you will increase your Southern PGEU capacity by 150 millimeters CFD. But does that mean you will cannibalize Capacity from other parts of your PGU. In other words, your total capacity or revenue is still roughly stable. How should I look at this? Not really. As I said, we are limited by how much we can push South today. So there are customer who actually request for those guests. The customers in other sectors, For example, for the gas that goes into Clerm Valley will remain as it is. So if the capacity increase by 150, as I mentioned just now, So mostly will be consumed by the new customer in Southern Sector As incremental consumption. I see. So this will lastly benefit your Gas Transportation segment, in other words, there will be more throughput from 3rd parties, am I right? Yes, Yes. That is the expectation. I see. So suddenly the gas that you're producing yourself is already currently being Taken up by existing customers, am I right? Can you repeat that? Of course, the gas that you're producing from Petronas, The molecules are already designated or allocated to your existing customers. So if you were to increase your capacity by 150 millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters millimeters s CFD, It will have to be new customers and the supply of the gas will be from third parties, am I right? If the customer is secured by our shipper, I mean, PEGT, Then the supply can come either from Curtiss or the LNG terminal. If it is a third party, the 3rd party seller Can bring to one of our regas terminal to supply to Whoever the customer that they have logged in with. So it can be either way, yes? But it's a new molecule. I see. Okay. So currently, this 3rd party customer, is it Petronas or sorry, is it the Nager or is it Some other customer like GasLogic? Hold on. Trying to dissect your question. I think as I mentioned just now, so far there's one Shipper that has brought in through our rigas, Sunai Uda. So, so far there's 1 third party Supplier, but the rest are from our super petronas energy and gas trading. Okay. And if you can let the rest have their chance in asking the question. Okay, great. Thank you. Maybe I'll come back later. Sure, sure. No problem, Alain. Any other questions from the caller or a readout from the webcast? We do have another question from the line of Chi Wai Tan from Maybank. Please ask your question. Hi. Thanks for the call, Selena, Hari, Riya, everyone. A couple of questions from me. Firstly, on the operating costs. I think, yes, it seems to be lower this quarter for most of the segments, Presumably due to lower levels of repair and maintenance, is this the appropriate run rate going forward? Or should we expect Repair maintenance to trend up in the coming quarters. And second question, just to confirm, So the CapEx for both the Southern De Bottlenecking and the Punaal Indah pipeline, so both of those will be have not been incorporated in RP1 yet, right? What are for our Q2? Thanks. Sharice, can you take the question? Yes, sure. For the repairs and maintenance, obviously, the low operating cost Not just on resettlements and maintenance, but it is one of the larger items. As far as moving forward, Again, a lot of it will depend on what happens in terms of the MTO and whatnot. So there may be a little bit of catch up. But having said that, there are other elements in operating costs, overhead costs and so on, which we have optimized. So that is a portion of that lower operating costs, which will be sustained. And that's the target for PGD this year, yes, to kind of sustain throughout the next couple of quarters. Sorry, the next question is on CapEx recovery in RT2. Pauline, can you Ivan, can you sorry, my line is yes, it's really quite busy here. If I'm not mistaken, it was whether the cost has been part of the RP1 tariff, if I understand the question correctly? Yes, correct. You mean the cost of the operating cost, No, I missed the other project. Yes. As mentioned by Chih Aziz, The CapEx recovery will be in the next regulatory period, which is RP2. So not in RP1 yet. Got it. Thanks a lot. I really like Some of these questions are coming in from webcast. From those two things, is the balance sheet Optimization is still ongoing. Can we expect special dividend in 2021? So the exercise is something that we are always looking at In as far special dividend, at this moment, there is no such plan. But nevertheless, If the interest team will make the announcement as necessary. All right. The rest of the questions are similar to the ones earlier. Can we take the question from the caller, Rochelle? Sure. We have another question from the line of Anshul Qinghee from JPMorgan. Please ask your question. Hi. Can you hear me? Yes, yes, can you hear me? Yes, yes, yes. So I have as you highlighted that the lower operating costs were not Completely a result of lower repair and maintenance. Could you just for us tell us that how much of it was related to the 1 offs and how much of it is related to cost optimization that you have performed over the last few quarters? Sharice, can you take the question? Yes, sure. Maybe Let's just take same period last year as sort of like a comparison. In terms of the repairs and maintenance, The contribution is probably about 15%, 20% in terms of the lower operating costs. There are, as mentioned, other items like the internal gas consumption, some of the overhead costs, which we have rationalized, Even manpower related expenses, for example, things like traveling, scenes and so on, Those have all contributed to the lower operating expenses. So just in terms of the next few quarters, do you see These costs come back or are they going to stay steady? Like apart from that 15% to 20% lower repair and maintenance The rest of the costs, are they going to be steady or they're going to come back? Do you see them coming back again? Yes. Again, for the repairs and maintenance, as mentioned, it would really depend on the level of activity. Hopefully, the MTO It doesn't get worse. So there may be a little bit of a pickup, although we don't To suddenly surge up for repairs and maintenance for the rest of the year. As for the other elements, The target is to try and sustain it because quite a number of the savings are really Due to the different ways of working that we've actually been able to save on some of the items. We have another question from the line of Alex Guo of M Bank. Please ask your question. Yes. One of the reasons for your lower FX was due to your lower internal gas consumption. Could you let us know what is the One term of a reduction. And the way I understand the way the RPE works is that there will be a write back later on, right, in RPE2, If you have a lower if your gas consumption was lower? Yes. Yes. Okay. Go ahead, No, no, go ahead, Thiago. No, I what I'm trying to say is we continue to work on optimization. Of course, when we go into RP2, some of those, for example, IDC or not, will be adjusted Based on the experience of RP-1, so what you see now is some of it is lower than what We have seen before was, of course, either through lower utilization of the asset or Some of the optimization activities that we continue to do as we operate the asset. I see. Okay. Perhaps you could help us you could quantify for us How much was the repair and maintenance for the in the Q1 alone? Could you give us an absolute number, say, in RMB 100,000,000 or something? Yes. Well, yes, because there's quite a number of line items in the operation and maintenance that goes into there, Alex. So, yes. Okay. I understand that your difficulty there. Okay. All right. Then, the other thing, could you update us on the progress of the pull up in that project? And And to understand later the recovery for your cost will come from the tariffs you're able to charge in RP2, am I right? Right, right. Yes. I see. Correct. Okay. So the CapEx will be added to the regulated set base value during RP2 and Based on the return of the return that ST determine, that will translate into a tariff. I see. Okay. And one of the things that you mentioned in the previous briefing was that you're looking for Ways to position yourself in under the energy transition move, looking at the integrated projects And potentially even into renewables, could you give us a bit of update what is the status now on your These new opportunities that you're looking at? So as I mentioned, just now as well as during the press conference after AGM, in the northern region of Malaysia as well as For the region, there are few industrial parts that has been proposed. So what we are doing is Rather than petronas, just supplying gas and for the park developer Change it into electricity or not, given that we have experience in doing cogen solution through our utility business, We are looking at offering a cogen integrated cogen with Electricity plus chilled water as an offering to those industrial parks. So It's still, as I mentioned, the framing stage. We are in discussion to understand how much actually the requirement For each part and hopefully with better understanding of the Specific requirement in terms of volume, then we can give a better What could be the demand line? But at this moment, it's still at framing stage, Alex. I see. Okay. And my last question is, how much was the how much is the utilities price Adjustment in the Q1 compared to say the Q4 of 2020? Sharik, I don't have the specific, but we don't give that. We don't actually disclose the actual price, obviously, because we say a contract between 2 parties. But it again, since we have moved to the market reference price, right, So that is actually more reflective of the market movement in terms of the guest price? Just Alex, the utilities comprised of electricity and As well as product like steam, industrial gases or whatnot. So electricity has always been sold based on the Malaysian tariff, electricity tariff, but the utilities has a formula of natural gas Intuit. And the natural gas price in Malaysia is based on the Malaysian reference price, which actually linked back to the oil price. So that's how it works. So you can see Q1 this year, probably the oil price It's lower compared to last quarter. So you can see some benefit there because of that adjustment. I see. Okay. Thank you very much, Charles. Okay. Thank you. I'll read one question from the webcast From Daniel Wong. Can you please clarify how come the performance incentive increased year on year Despite looking at OEE for Michelin and Itay, And the sales case processing reliability has dropped a bit, but can we explain on the performance in 'seventy? Alice, you want to take that question? Yes. The performance based incentive is mainly on eSIM. And actually, it's not so much trending compared to last year because what happened is there is an agreed operating parameter. So if we exceed those targets, yes, which was set for the year, then we receive the incentive. So although there has been if you look at the C2 OEE, It's actually slightly higher than Q4 2020, but just slightly lower than Q1 2020. So it's not so much the trending based on historical. It's actually against the set target that we agree on an annual basis. Thank you, Charles. All right. Is there any one last question? On the phone, we don't have any questions Currently, we don't have any more questions from the line. Please continue. So, maybe for me also to announce Actually today at the Board we have the Board have approved for the appointment of another new Board members Increasing our Board composition to 9. The new Board member That will be Doctor. Victor Rosario, who is a Malaysian actually. So his appointment will be Effective on 1st June 2021, in addition to being a Board member of PGB, He also will be a member of a newly approved Board Risk Committee, Which also has been formed and approved at the Board today. So the new Board Risk Committee will have 4 Board members As a member, all independent Board members to be chatted by Datu Yao of Ken Chien, who is Independent and Non Executive Director with 3 other members, Farina Farikurakhan, That's Abdulrazak Majid as well as the newly appointed Board member, that's Abdul Marc from Resideo. So Thank you. Back to you, Lizeng. Thank you, Candice. Yes, for more information on the announcement, You can check out our recent announcement to Busan Asia just now on the details. I think that's all we the time we have today. For the questions that I did not read out loud, it has it is pretty much similar to those Questions being answered previously, but if you have any more additional clarification required, you can just give me a call or e mail, and I'll reply to you separately. Okay. That's all the time yesterday. Thank you, everyone. See you next quarter. Thank you. Thank you. Thank you, everyone. Thank you. Thank you. Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.