Earnings Call: Q4 2018

Feb 6, 2019

So welcome to the Q4 presentation here at Fornebuporten And welcome to those of you who have selected to join us here. And as I can see, most people are joining us on the web, so a special welcome to you too. Now 2018 was a really good year for Aker BP. I think on every single parameter that we could think of, we had strong growth throughout 2018. And I'll spend a little bit of this time to try to dig into some of these details and put the case why this growth is continuing also in 20 19 and the years beyond. Now first of all, we had record high production in 2018. But what makes me even prouder is that we had a really high regularity despite a lot of modification activities ongoing on pretty much all our installations. 2nd, we've seen industry leading drilling performance that I'll come back to. We've seen all the field developments basically on track. Digitalization is gaining momentum. I'll share a couple of new examples with you here today. We see an expanding of the alliance model and we see this alliance model gaining traction and producing real tangible improvements on our cost base. And we're continuing to apply new technology to our business. We'll share a couple of those examples today too. And then finally, the organic growth story is very strong. Even this even in 2018, when we did not deliver a new PDO, we had reserve replacement above 100% and we increased our continued resource base with 23%, both from M and A, but also from organic growth opportunities. And 2018 was a good exploration year. And as you probably already noted, 2019 has not started too bad either. So Q4 20 18 basically compounds the growth story of the entire year of 2018. Production stood at 155 1,700 barrels of oil equivalents. We had a realized oil price of dollars and a gas price of about $0.30 per standard cubic meter. That left us with an EBITDA of $667,000,000 adjusted for an under lift that is impacted by the oil price change in the Q4. We completed the acquisitions of King Lear and the portfolio we acquired from Total. And we finally got the Hess tax loss refunded and thereby reduced our net debt in the quarter. And then I cannot talk about 2018 with also mentioning a recent event after the quarter. We have just announced the discovery at Froskulor. And to me, this is a step on the road of a pretty long strategy of future field developments at the Alvheim area that started back in 2014. This is the result of a tangible strategy with data acquisition and continued field developments throughout the area where seismic activity, field development activity and the subsea alliance has compounded to a great story. The preliminary results as they were reported is that we have discovered an oil and gas discovery. We are initially within the pre drill range and there's a chance that this discovery straddles the UK border. Currently, we are doing coring and data acquisition activities and we are going to drill 1 or 2 horizontal sidetracks to reduce the uncertainty range prior to commencing field development studies. Next well in this area will be the Fosk test producer. And as you may recall from the Capital Market Day, we are also going to drill the Froskular Northeast as an extension from the Frosk test well. And then after that, we'll drill the Tadpole Rumpetol exploration well and following that we'll make an assessment of the entire area. Then moving back to production in the quarter. As you can see, we recovered production from Q3 2014. And as you can also see, the regularity is pretty high across our asset base. There are of course 2 assets that stand out. The first one is Ula. This is mainly due to well activity, but also to the fact that we are carrying out a lot of modification activities to prolong the lifetime at Ula, which impacts production across the Ula license. On Valhall, the main culprit is stimulation activity, which means fracking, which means that we have to shut down neighboring wells to avoid the frac breaking through to the wells. This has been pretty high in 2018 due to the high number of wells drilled in the field over that year. And talking about drilling, we continue to lead the market in terms of drilling performance. So this year in 2018, we have delivered just above 200 meters a day on average across our production drilling performance and are hence leading the field on the Norwegian continental shelves in terms of drilling performance. This is the reason I'm talking about productivity every single time I'm talking about improvement is that the underlying productivity needs to continue to trend upwards. And the difference is even more clear when you look at the exploration wells drilled in 2018, where we acquired a significant gap to number 2 on the Norwegian continental shelf. We have for a long time now talked about the Subsea Alliance and the effects of the Subsea Alliance. And I thought I'd share with you today the effects that we're starting to see on the Vale of West Bank. First of all, the project is on track. It will be loaded out and installed in the summer of 2018. And we've now run our 1st benchmark of the alliance effects across the portfolio, but also compared the Valhall Westbank project to the benchmark in terms of project on the Norwegian continental shelf. And of course, I'm happy to see facility cost reduced by 24% from the benchmark. But even more importantly, it's probably that we've been able to increase productivity by reducing the number of engineering hours with 14% and reducing the duration of the project with almost 30%. This means high value creation for AKBPP and our partners. And we continue to drive down cost throughout our portfolio. Another example of waste reduction is the activity we carry out to lower CO2 emissions in our operations. We recently announced the 2017 numbers, which stands at 7.2 kilograms per BOE. And 2018 showed a further reduction from those 7.2 down to 7.0 kilograms per BOE in CO2 emissions. The 2 main driver for this was increased energy efficiency activities, but also that we for the first time ever electrified a jackup operating at Valhall using the power from shore cable from Walhalla out to the Walhalla PH and then further out to the Maske Invincible. And as another little bit of a technology demonstration, but also something that actually creates real value, on the Waalal West Flank, the first ever electric propulsion lifeboat will be installed. This the driver is actually very simple. On a normally not manned installation, you want to avoid as much preventive maintenance and condition based maintenance as you possibly can. By using an electric engine and batteries, we could remotely control both the battery, the state of the engine and we can remotely run tests and analytics across it without putting people on the even on this field. Even on this field. Digitalization is also gaining momentum and we've talked a lot about the digital work and how we connect to the different data and the data sources in our universe through the Cognite data platform and up to tablets and users in the field. Today, I thought I'd share with you another perspective on digitalization where we use machine learning to increase production in our assets. So I talked about the main culprit on the production efficiency in Valhall is the breakthrough of chalk into the wells. We've long searched for a solution on how to discover this chalk influx without it actually happening. And now we've actually seen and demonstrated that by the use of artificial intelligence across that data set of data that already gathered by sensors in the field, we're able to predict when this putting them into the Cognite data platform and then putting in this case artificial intelligence or machine learning on top of that to create tangible information that are actionable in the field. A second example is very complex changes in flow requirements and processing requirements across the different installations. And in this case illustrated by an Altheim case, when we test the multiphase flow meters, we have to change the parameters in the process. And doing so, we introduce multiple variables to the process control. And it's hard to understand what will be the optimum at any given point in time as you run through the sequence of wells to be tested. We've gathered these data. We've compressed it into a simulated set. We've put machine learning on top and now we're able to predict exactly the flow through and the maximum production for each and every multiphase flow meters test. If this is only implemented at Aave, it will save us around NOK40 1,000,000 a year on this project alone. So as you can see, the digitalization agenda in Aker BP is gaining momentum and we're focusing on tangible business cases that we can run out across the field to gain both experience, but most importantly, increased productivity and lower cost. And then finally, implemented 7 alliances spanning from drilling and well all the way up to maintenance on our installations. From a pretty slow start back in 2016, when we had 2 projects ongoing in execution, we now have 10 projects ongoing in the Subsea Alliance alone. We have more than NOK10 1,000,000,000 in the Subsea and modification alliance within the scope and we plan to execute about 1,200,000 hours of work in the modification alliance. I'll put it to you that without the use of these alliances, we would not have seen the productivity and the increase in efficiency with the increase in scope that we've seen so far. So to me, this is a proof that this alliance model and the reorganization of the balance sheet is actually working. We have 2 more alliances to go. So the first one is the intervention alliance, which is currently being processed. And then we're discussing what to do with logistics and how to shape that value chain as well. But already now we've pretty much completed a project of reorganizing the value chain into alliances in Aker BP's operation and we continue to take out benefit of this work that has been going on since 2016. And this is all well and good. But ultimately, oil and gas is about finding, realizing and producing oil. And this is probably what makes me the most proud in 2018 is that we've been able to replace every single barrel we produced in 2018. We went into the year with 914,000,000 barrels in reserves and we exited the year with 917,000,000 barrels having produced 56,000,000 barrels and put back 59,000,000 barrels. And we have also increased our resource base by a significant amount and it's currently standing at 946,000,000 barrels. Out of these, 174,000,000 barrels are acquisitions. There is 44,000,000 matured to reserves, which you can find on the left hand side of the slide. And then of course, there are some discoveries and upgrade revisions basically coming from the GECO appraisal well drilled last year, which is a perfect segue over to the exploration year in 2018. So 2018 was a quite good year in terms of exploration. We have generated value in the range of $120,000,000 to $280,000,000 on that exploration budget dependent a bit on the parameter set as you can see. The 2 key parameters is the Fosk discovery. This is of course the start of the story that is now continuing with Frog Leg and then continuing with Frog Leg Northeast and then Tedpole ultimately. But it's also an effect of a larger than expected appraisal well on GECO. And then ultimately, we have increased our number of licenses on the Norwegian continental shelf and are now the 2nd biggest license holder with 150 9 licenses, 21 out of which was acquired in the last licensing round. As you can see, they are pretty much spread around the Norwegian continental shelf. But recently, we've been focusing on near field exploration close to our operated hubs. And this is a strategy that will continue also in 2019. 2019 in terms of exploration have started, I would say, yes, quite well. But there are lots of good wells to come. So the first one is going to be the Frog Lake Northeast, which we expect to see as an extension of 1 of the branches of the Frog test producer. Then the tadpole next, hot deep well, the request is ongoing. We're just above the reservoir right now. So I expect that to penetrate the reservoir within a week or so. And Jokulsen is also ongoing. So 2019 is going to be a really exciting exploration year for Aker BP. Now oil and gas is mostly about numbers and oil volumes and improvement project, but it's also about great people. And it gives me great pleasure to welcome 2 new members to the Alker BP management team. Lene Lande, who is now responsible for Strategy and Business Development and David Turner, which you'll meet shortly, is now the Chief Financial Officer in Aker BP. And then I think it's time for your debut, Alexander. Not Alexander, David. I've said this so many times now. It's going to take me a long time to actually get that right. But David, the floor is yours. Thank you, Karl. So good morning, everyone. I have the pleasure of summarizing the financials for 2018 for Aker BP. And with this, I will also take you through some of the key figures for the quarter. 2018 was, as Karl said, a record year for Aker BP. We increased revenues with 46% and the key driver for this was an increase in production of around 12% up to 155,700 barrels per day. At the same time, realized hydrocarbon prices increased in the period by 29% to approximately $65 per barrel. EBITDA for 2018 ended at $2,750,000,000 This is up 54% from 2017. And net profit increased with 73 percent to SEK476,000,000. Now deep diving into the last quarter of the year. So the operational performance in the quarter was very good with production ending the year at 163,400 barrels per day on average throughout December. There were 2 specific non cash accounting effects impacting the P and L this quarter. 1 was the reevaluation of the balance due to falling oil prices and the second was the strengthening of the U. S. Dollar versus NOK impacting the effective tax rates. And I will come back to those two points a bit more in detail later on. But now into the numbers. So we recorded a revenue of $886,000,000 on a production of 155,700 barrels per day, same as the average throughout the year. The decrease in revenues compared to Q3 is driven by mainly lower prices as we realized an average oil price of $64.3 per barrel in the quarter. Income during the year sorry, during the quarter were also negatively impacted by a large net underlift balance reevaluation. And in layman terms, these are the volumes that we have produced but not less yet sold. And we value this inventory at the estimated sales price on the balance sheet date and booked the related adjustment against revenue. At the end of Q3, we had a net underlift balance of 1,600,000 barrels, which increased to about 2,000,000 barrels at the end of Q4. This balance was valued at around $80 per barrel at the end of Q3 compared to around $50 per barrel at the end of Q4. The negative impact on income due to this revaluation of the underlift was therefore around $48,000,000 but this was a non cash effect. Moving to costs. Production expenses was around $187,000,000 an increase of $21,000,000 from the previous quarter. If we look across our 5 hubs, absolute Upteijs was relatively stable for Alvheim, Ivarossen, Skyref and Ula Tamberg. The increase in production costs is mainly a result of increased planned maintenance at Vallal Hard. On average, production cost per BOE was $13 during the quarter. And for 2018, we ended at 12.1 dollars per barrel, which is in line with our previous guidance. Other OpEx amounted to $8,000,000 for the quarter, roughly $0.60 per barrel. Talking about exploration. Exploration costs this quarter was 72,000,000 dollars The main components of exploration costs was field evaluation of $28,000,000 mainly related to Nuaka and seismic cost of $21,000,000 In addition, we also expensed $4,000,000 of dry well costs related to the Cassidy well. In addition, we also have the usual area fees and other exploration expenses that makes up the balance. EBITDA was SEK 619,000,000 dollars for the quarter. Depreciation, dollars 196,000,000 or $13.7 per BOE, roughly in line with last quarter and $0.50 above the average of 2018. We recorded impairment charges of $20,000,000 mainly related to the Kymakog due to revised production and CapEx profiles. We have net financial expenses of US44 $1,000,000 during the quarter. And the overall currency result is close to 0 as the currency gain from the strengthening of U. S. Dollars versus NOK during the quarter has been offset by the currency loss on the NOK denominated tax refund related to HSNORGE, which was settled in November. The currency impact from this tax refund has previously been presented as other comprehensive income, but has now been reclassified to profit and loss in Q4 as Hess Norge was liquidated during the quarter. Note that we recorded realized gains on derivatives of SEK 72,000,000 mainly related to the currency hedging of the same tax refund. Other financial items such as interest income, net interest expense and accretion were stable compared to the last quarter. A more detailed breakdown of the various financial items is shown on Note 6. So profit before tax was 3 €59,000,000 and taxes amounted to €305,000,000 This represents an effective tax rate of 85% in the quarter. As we clearly illustrated in the Capital Markets Day a couple of weeks back, our P and L tax is impacted by the changes in the U. S. Dollar to NOK exchange rate. A key reason is that we have the dollar as a functional currency, while our undepreciated tax balances are denominated in NOK. This means that a strengthening of the U. S. Dollar versus NOK increases the effective tax rate. Yes. The petroleum tax rate in Norway remains at 78%. And normally, our effective tax rate will be a bit lower due to the CapEx uplift. But from quarter to quarter, this may vary due to accounting effects due to currency movements. So of the NOK 305 1,000,000 in taxes, NOK 133 1,000,000 was the current tax arising in the quarter, SEK 151,000,000 was changed in deferred tax and SEK 20,000,000 was related to adjustments for prior periods. So when analyzing the effect of the currency changes on the effective tax rate, we observed that approximately SEK 50,000,000 is driven directly by the change in currency. And these are also mainly non cash effects as the same as the reevaluation of the underlift mentioned previously. Net profit then ended at $54,000,000 for the quarter or $0.50 per share. For 2018 in total, earnings per share ended at $1.32 So let's look at the balance sheet. On the asset side, there were 3 main movements in Q4. Other intangible assets increased to SEK 2,400,000,000 and that reflects the acquisitions of licenses from Total and the King Lear acquisition from Equinor, which was completed during the quarter. PP and E decreased in Q4. And normally, one would expect an increase as our investments exceed both depreciation and impairments. In Q4, the net CapEx amounted to $380,000,000 excluding capitalized interests, while depreciation and impairment amounted to 197,000,000 dollars However, PP and E also includes the estimated future abandonment cost, which was reduced by SEK492,000,000 in the quarter. Hence, the net effect on PP and E was a reduction of around SEK 300,000,000 to SEK 5 point 7,000,000,000. The tax receivable have been reduced to practically 0. And that's, as previously mentioned, due to the tax loss from Hessnorge being paid out in November. This contributed to a reduction in total assets to US10.8 billion dollars at year end. When turning to the other side of the balance sheet, we note the following. Equity was reduced by $93,000,000 The $54,000,000 in net income was partly offset by a negative effect of $34,000,000 in other comprehensive income and we paid out $112,500,000 in dividends in the quarter. Other provision for liabilities decreased by $442,000,000 mainly due to reduced estimates for future abandonment costs, which is mirroring the mentioned reduction in the PP and E on the asset side. The book value of our interest bearing debt consists of bonds and bank debt. This was reduced from SEK3 1,000,000,000 to SEK2 1,000,000,000 during Q4. The SEK1.5 billion bridge facility obtained in relations to the acquisition of HSNOLGE, which we paid in November when the tax losses were refunded. We increased our drawing on the RBL of SEK550 1,000,000 during the quarter, mainly to finance the acquisitions from Total and Equinor. Looking at tax payable, our accrual was NOK552,000,000 at the end of Q4. This consists of NOK317,000,000 dollars in remaining taxes payable for 2018, which will be paid during the first half of twenty nineteen. The remaining 2.32 million represents accruals for various uncertain tax cases. So while we're looking at the balance sheet, it's worth noting that the accounting standard IFRS 16 leases is effective from the 1st January 2019 and is therefore not reflected in the accounts for 2018. The main impact of the standard is that lease contracts should be recognized in the balance sheet as lease assets and lease obligation. The overall key message related to this for Aker BP is that the implementation of this standard will have limited impact in 2019 as it will only increase our total assets with around 4% or SEK 400,000,000. We also expect minor impact on the income statement as most material leases are typically rigs and are mainly used for CapEx activity. Moving to cash flow. So I think the cash flow for Q4 summarizes most of the items discussed so far, but I'll briefly walk you through them. So the tax refund was used to repay the bridge loan. The acquisitions were fully financed by drawing on the RBM and cash flow from operations was 717,000,000 before the tax payments of $304,000,000 Then cash flow to investments, excluding the acquisitions, was $447,000,000 dollars of which the main contributors were Vallar Hod with 208,000,000, Johan Sverdrup with 91,000,000 and then Alvheim with 42 Dividends again amounted to NOK 112,500,000 and then resulting in a total dividend for 2018 of NOK 450,000,000. Then at the end of the quarter, our cash balance was SEK 45,000,000. The book value of net interest bearing debt was SEK 2,000,000,000. We had SEK 3,000,000,000 of committed undrawn capacity on our SEK 4,000,000,000 bank facility. And our leverage ratio defined as net debt over EBITDAX was lowered again and now is around SEK 100 and 0.65 Okay. So I also would like to give some comments related to tax and tax payments. Under the Norwegian fiscal regime, taxes are paid in 6 installments. For each fiscal year, the installment starts in August the same year and ends in June the following year. Hence, the 3 first installments are based on an estimate of the taxable income for the full year. And after year end, the last three installments can be adjusted to reflect the actual taxable income. So looking at the chart, Q1 and Q3 each have 1 installment, while Q2 and Q4 each have 2 installments. And for 2018, we initially overestimated the taxes. Hence, we have reduced the remaining installments accordingly. So the two bars in Magenta on the slide add up to the equivalent of $317,000,000 that is included in the tax payable in the balance sheet. And then also as an extra service to you who want to understand the cash flow implications further out in time, we have provided an outlook for the cash tax payments for 2019 under various oil price scenarios. So we recognize that tax is very important, but also a bit complex. So and we typically receive quite a lot of questions related to tax. So we are therefore planning to publish a tax information pack during the next couple of days on our investor pages on the web. Okay. Finally, for sake of good order and in good tradition, I will also revisit our guidance summary. Key message here is that the only thing that has changed since the Capital Markets Day is that we now have the accurate 2018 figures. Again, 2018 production ended within our guidance range. And for 2019, we expect to stay within the same bracket. And the next step chain in production for Aker BP will be when Johan Sverdrup starts up, which is expected in November. Total cash spend on CapEx in 2018 ended at 1,200,000,000 dollars slightly below the last guidance. For 2019, we're planning to spend $1,600,000,000 of which the main drivers are Varhall Johan Sverdrup. Exploration spend came in at $359,000,000 for the year and this was quite in line with our original estimate at the Capital Markets Day last year. And then we increased the estimate during the year as we contracted the rig to drill more wells in the Frosk area. However, this rig was delayed, which took us back to square 1. For 2019, we plan to spend around SEK 500,000,000 and this is driven of course by the very exciting exploration program that Karl just presented. And as you know, there are several wells already ongoing. Abandonment spend for 2018 ended at NOK 243,000,000 in line with our latest guidance, but significantly lower than what we said at the Capital Markets Day last year. The main reason for this, of course, was that the Valhall P and A program were executed much more efficiently than originally planned. Production cost per barrel, 12.1, again, in line with our guidance of around 12%. And then for 2019, we expect a slight increase to 12.5%, percent, which is mainly reflecting planned high maintenance activity on Valhall and Ula. And of course, last but not least, we're very pleased to offer attractive dividends. And for 2019, we plan to pay NOK750 1,000,000 equivalent to around $2.1 per share. Okay. Thank you. That concludes my part of the presentation. I'll hand back to Karl Johan. Thank you, David. Got that right. That's good. So finally, the priorities ahead. The strategy for Aker BP will remain the same also in next quarter and the quarters to come. We will keep focusing on the 3 main strategic pillars to execute, to improve and to grow. We'll keep focus on safe and efficient operations throughout our 5 operated hubs and we'll keep driving excellent project execution as I think I've shown you an example of here today. You can trust that Aker BP will continue to lead the digital transformation of the E and P industry as we're completely convinced that this will be the main value driver in the years to come. We've talked about alliances. We continue now to expand this across the next two value chains that are in process, but probably even more importantly to deepen and improve the improvement programs going on within the alliances themselves. There's an extreme amount of activity and enthusiasm inside this alliance, which really makes me certain that this is the way to go. And then finally, as new technology comes to the market and as we've discussed in the Capital Market Day, we will be aggressive in applying that technology to reduce cost, increase quality and increase productivity. In terms of exploration, we have demonstrated a high capacity to realize value and we'll continue to do so in 2019, while we're also maturing new infield resources to reserves throughout the year. And then finally, we in the Capital Markets Day, we were fortunate enough or happy to put out a new dividend guidance. And I'll reiterate that because that is the to me that's the most important thing we as a management team can do and that's to increase value to our shareholders. So So as David said, this year we plan for $850,000,000 increasing $100,000,000 each year up to 2023. So with that, I think we'll conclude the quarterly presentation and then open for questions. I think we'll do it as normally. So David, if you join me here and we'll open here at Vorderby Boten and then go to the web. So there are no questions here at Vonneby Boten. Are there any questions on the web channel? Actually, there seems to be no questions on the web at the moment. There has been a technical hiccup during the presentation. So parts of the presentation did not broadcast as expected. So that's probably the reason. Okay. So we I guess we should invite those who have questions to post them directly to us after the presentation. Sure. That's great. So if any of you have questions, you could either post it or you can send it directly to investor relations at Aker BP. Actually, I've got a question now. Fantastic. From Alwyn Thomas of Exane BNP Paribas. He asks, is there a way that higher resources in the Alvheimfrost area could help the commercialization of the north of Alvheim fields, particularly in the event Krafla Asha is developed using Equinor's concept? Okay. So first of all, the Frosk area is in the south about 20 odd kilometers away from the Alvheim area, while the Nork area is of course in the north of Alvheim, some 30 odd kilometers north. So you could, of course, imagine that there was some kind of shift in terms of resources that allowed Alvheim FPSO to expand its grid south and thereby releasing reserves to the north. Currently, I must say that our main hypothesis is that these resources will be developed up to Alfheim. And that means that the New York area will remain untouched from the expansion activity in the South. And the second question from Alvin is, how much does the Froskelhor discovery derisk the Rumpetrol and other prospects in that area? Yes. I won't go into too much detail as the acquisition is ongoing. But there are indications that the FOSC system and the FOSC law system is not identical in terms of oil quality, but also in terms of oil water contact. That means that there are at least 2 hydrocarbon systems in the area. So with that kind of assessment in the background, I'll be quite cautious to go into talking about derisking of Umpitol until we've actually made the final technical data acquisition and drill the sidetracks to gather more data to get a better understanding of the system. But at least it makes us more enthusiastic of the whole area, that's for sure. Final question from Alwyn is, how quickly could you produce Froskluor volumes and what would be required to develop this area if Rumpetroll comes in as well? Well, if the Fozk Trust producer is the benchmark, it will take us roughly a year from discovery to putting the 1st producer in the ground. Remember, Alvheim is a very standardized area when it comes to subsea production system. So we're basically using the same toolkit for every single well. And we've got a lot of this toolkit already in stock. So we're not hampered by long lead items or other discussions. So I think the key discussion as it comes to timing is basically the total volume and development solution in the area. So this basically boils down to 3 different concepts. 1, it's a relatively simple tieback using a manifold of BRLA type of installation of all time potentially tying it directly back to Alfheim and using the current infrastructure. 2nd is to do some sort of partial processing if the volume is a bit higher, but also if there are more gas as gas is a main constraint on Alvheim currently. And then finally, of course, if there are significant volumes and we end up in the upside case, there is a discussion around a standalone or redeployment of an existing FPSO, some sort of extra new processing capacity in the area. So those are the 3 main considerations and we'll revisit that discussion when we have drilled the capital. Good. And now we have a question also from Johan Charrington in Societe Generale. On taxation, we are looking forward to the publication of the tax focused leaflet, which I've promised him. So I'm sorry for that. How much of upcoming tax payments are hedged in dollar terms is the first question? Yes. I don't expect be able to answer that specifically, but I think mostly they are. So more or less everything. Then the second question on taxes. It appears that accrual for uncertain tax positions rose slightly in the quarter. Can you please provide further color on such items? Could you repeat that question again? Accruals for uncertain tax items increased slightly in the quarter. And he asked for some color on that. Accruals for uncertain tax items. Yes. So of course, we have several uncertain tax cases and discussions ongoing with the tax authorities. And there are some pluses and minuses on those tax cases. So without going into too much detail on that, I think that's the clear answer. Then one question on liquids pricing. Would you be able to disclose the premium or discount to Brent price that you assume across your production hubs throughout 2018? So far we have not disclosed these premiums. This is basically a commercial position that we take in the market and that they vary from cargo to cargo depending on the market situation when we push this cargo into the market. So it's both complicated to predict, but it also is an indication of our marketing position and of course this is a competitive market. So at this point in time, we're not going to disclose that kind of information. Okay. I guess that concludes the questions that we got from our web audience. Great. Thank you. And have a great day everybody and safe travels for those of you who are traveling. Thank you so much.