Earnings Call: Q1 2021

Apr 28, 2021

Good morning, and welcome to Aker BP's First Quarter 2021 Presentation. My name is Hjert Il Bakken, and I'm heading Investor Relations in Aker BP. Speakers today are CEO, Karl Hajjveik and CFO, David Tunde. And when they have delivered their prepared remarks, we will have a Q and A session. If you have further questions or queries about the Q1 report or about Aker BP in general, the IR team is always at your service. I assume that you're all familiar with our standard disclaimer. So now let's get started. Kalle, I leave the floor to you. Thank you, David. That was a promotion. Thank you, Kjetil, and a very good morning to all of you who are following us on web or on the phone. Q1 of 2021 was a quarter that, in my mind, once again demonstrate the core quality, at least some of the core qualities of this company. We maintained a high production level from the previous quarters, and we delivered this with high safety, Low cost and a low CO2 footprint. Our field development project progressed according to schedule despite some workforce challenges due to COVID restrictions. And we have now successfully completed The plug in campaign at Valhall in an excellent way, both faster and cheaper than originally expected. We are working hard to mature our portfolio of upcoming field developments within the deadline set by the temporary tax system. In the coming few months, we will take a final investment decision for Frosk and Cubra Ist Gekko in the Alvheim area and others will follow. We are also on track for the Concept Select for Norka project in Q3. Strong operational performance also translates into strong financial performance. And helped by oil recovery or price recovery In the quarter, we delivered a new record cash flow this quarter. And when it comes to things that are within our On the production side, we ended up with a production of 222,000 barrels of oil, which is basically unchanged since Q4. Behind this number, there are, of course, some pluses and minuses. We saw increased volumes from several fields, while other fields have not delivered this quarter. At Johan Sverdrup, we saw a positive effect of the capacity increase announced in December. At Ivarossen, the start up of 2 new wells contributed positively. And at Skav, production also increased, driven by Afol, even though we had 1 week of unplanned downtime due to technical issues with the fire water lifting system during the quarter. At Alvheim, on the other hand, production was lower in Q1. This was partly due to natural decline but also impacted by a shut in well at Fosk pending well intervention. The Skav shutdown was the main reason for the drop in overall production efficiency in the quarter, but we maintain our goal for the entire 2021. In Q2, we expected lower production due to planned maintenance shutdowns and our full year production guidance of 210,000 to 220,000 barrels of oil equivalents Remain unchanged. I don't normally want to steal the thunder from David, but let me also briefly comment on the financial performance. Because in Q1, we delivered the strongest cash flow ever for a quarter in Aker BP history. This was, of course, helped by high volume and increased oil and gas prices, but it's also supported by strong and continued cost control. Production costs ended up at $8.6 per barrel produced, in line with our guidance range. The capital spend was only around USD 400,000,000 which might look low compared to our full year guidance of SEK 2,200,000,000 to SEK 2,300,000,000. And the simple reason is that the phasing of the different activities throughout the year, and thus, our guidance remains unchanged for 2021. Also on the HSE side, we continued our strong performance in Q1. Our safety record has improved significantly over the last year, particularly related to total recordable injury frequency, and it compares very favorably to the rest of the industry. We had 2 recordable injuries in the quarter. And while none of them is classified as series, We are still some way to go until we are at our goal of 0 incidents. When it comes to CO2 emissions, and represents an important quality parameter of our asset portfolio. And we are working hard to further improve this, Both through Power from Shore Solutions, through continuous improvement of energy efficiency, through collaboration with partners like Aker Offshore to develop new and cleaner energy supply to our assets. With our current plans, we expect our gross Emissions to be reduced by 50% in the early 2030s. And by 2,050, we expect to be close to 0. Now let's move on to our development projects because we have a lot of activity underway. The 3 largest projects in the execution phase are listed on this page. At Arfjord Phase 1, We started production in Q4, and we're now working on Phase 2. This was originally planned to start production in 2023, but we were able to accelerate this by approximately 2 years with some bottlenecking and hard effort from the Alliances. The first well in Phase 2 scope was even started before the Phase 1 last year. And now in the Q1, we have drilled the Mainly 2 wells, and we are on track to start production in Q4 this year. For Johan Sradru Phase 2, The message from the operator, Equinor, is very simple. We are on schedule and on cost in accordance with plan. The picture on this page show the main support frame for the 2nd processing platform at Johan Sverdrup just before sail away from Thailand to Norway, where it will be integrated with 2 other modules and prepared for offshore installation. The hard project is also progressing as planned with construction of a wellhead platform ongoing at Kvaerner Verdal. We have seen some challenges related to the available manning due to COVID restrictions. But through good collaboration with our alliance partners, We've been able to mitigate these effects, and the overall schedule is still intact. As I said initially, We are also working hard to mature our portfolio of upcoming field developments. The list on this page is the same as we showed on our Capital Markets update in February, but with one new column to show the status of each project. I am not in this presentation going to talk you through all these projects, but the common denominator It's that we aim to sanction all these projects by the end of 2022 and hence make sure they qualify for the temporary tax system. In total, these projects represent more than 500,000,000 barrels with an average estimated breakeven oil price of Around $27 per barrel. The 2 projects that are closest to FID are both in the Alsheim area. And back in 2018, we drilled 2 successful exploration wells in the Alvheim area, the Fosk and the Gekko well. These two discoveries are now the basis for 2 upcoming field development decisions in this area, which are expected to add about 40 In barrels of net reserves to Aker BP. Meanwhile, we also continue to drill infill wells in this area. The BoAAtik South well started production in March, and we're planning 2 more wells this year. The 3rd Alvheim related project on our list is Tral and Trine. Here, we are currently doing subsea and tie in studies. We have also done a couple of business development deals in the quarter in this area. One of them was with Lundin, who is our partner at Alvheim, Wollun and Bola. Lundin come in as a partner on Talendrina, While Aker BP increases its stake on the Foscolore discovery and the Lederhorn prospect. This will ease the tie between the Alfheim license and the Trial and Trainer licenses. The other deal involved a 50% share in a license on the U. K. Side of the border as a partner to Eni. The new license is bordering our existing acreage on the Norwegian continental including the Rumpetrol discovery, and the purpose is continued exploration. If we move a little bit north of the Alvheim area, we, of course, come to Nuaka. On Nuaka, we are continuing which are planned in Q3. By then, we will also have drilled an appraisal well to test the producibility of the Lia Tonne discovery. We have established a very strong and highly capable team for the Nuwa Fola project, and we are working closely and very integrated with our alliance partners, such as Aker Solutions, Subsea 7, Odfjell Drilling, MASK Drilling and Halliburton as well as our licensed partners, Lotus, to mature a technically robust concept that will maximize in collaboration with Equinor, who is our operating partner or is operating the Kaffler project. One of the key focus area is to ensure that all the interfaces between the 2 processing hubs are well defined and with robust technical solutions. Once in production, it is our goal that the PDQ platform will operate with a high degree of digitalization and Automation to deliver low OpEx and high regularity. We are also working closely with Aker Solutions, Cognite and Kjetil Bakken. Cognite and AIS to digitize the project execution phase. The purpose is to drive improved quality and reduced Waste and reduced waste and cost in the project. A more digital project execution We'll also contribute to populate data in the Noah and Frola digital twin. This will enable new ways of working And robust but reduced OpEx when the field start production in 2027. Based on all the progress we've made and where we are right now, I remain confident that we will be able to that we have covered extensively in the previous presentations. At Valhall, We have recently completed the last planned campaign of plugging old wells. In total, 30 wells have been plugged here since 2014, of which 18 have been done after the merger with BP in 2016. Compared to the plan we put in place in 2016, we have completed these programs 6 years earlier and around NOK 5,000,000,000 or NOK 35,000,000,000 45 percent lower than originally planned. I'm also proud to say that we have done this with near 0 CO2 emissions as we've been running the rig with clean power from shore Via the Valhall Field Center. This achievement has also been enabled by pioneering new technology, including the use of bismuth plugs, which help us solve the challenge of potential methane leaks from the old wells and, of course, result in lower CO2 emissions compared with conventional cementing technology. We share this success with our alliance partners, Maersk and Halliburton, who've been working together with Aker BP as one team to deliver these remarkable results, and I want to take the opportunity to thank Mersk and Halliburton for their contribution. On the exploration side, the Basque well was completed in Q1 and was classified as dry. Right now, we have 2 ongoing exploration wells, both operated by Equinor. The Kjetil Bakken, which is one of the upcoming projects in our list. Even if this is a relatively small prospect, It could have meaningful positive effect on the Regantiana development. The Shenzhou well is a larger prospect located in the Barents Sea. And when Shenzhou is completed, the rig will move east to Stagnes Tinden, where we will drill our final well in the Barents Sea for now. As you can see from this list, we currently have 5 more wells coming up throughout the year, and we will, of course, keep you updated as we progress. This concludes the operational update. And now David, even though I stole some of your thunder, will go through the financial for this quarter. Thank you, Karlen, and good morning, everyone. Aker BP's net production in the first quarter was 200 and 22,000 barrels of oil equivalents. Due to a small over lift, the sold volumes ended at 223,000 for 20,100,000 barrels in total for the quarter, up roughly 2% from Q4. The realized crude price ended at $61.1 per barrel, in line with the average Brent dated in the period. Adjusting for NGL, Aker BP's average liquids price was $60.1 per barrel, up 36% from Q4. If we include gas, the realized average hydrocarbon price was up approximately 34%, and consequently, we report a record high total income of SEK1.133 1,000,000,000 in the 1st quarter, up 36% from Q4. Production costs related to oil and gas Sold in the quarter amounted to SEK176,000,000. The increase from Q4 is mainly driven by adjustment for overunderlift The last two quarters. The cost of produced volumes has been quite stable over the period, with the small uptick mainly driven by an increase in well maintenance activity at Varuhall in Q1 compared to Q4. Production cost per produced unit amounted to $8.6 per barrel of oil equivalents, in line with the full year guidance of $8.5 to $9 per barrel. If we take a look at the other main items in the P and L, Subtracting production costs and other operating expenses of SEK 8,000,000 from total income, we get an EBITDAX of SEK 949,000,000. Exploration expenses amounted to SEK 71,000,000, where SEK41,000,000 was field evaluation costs, mainly related to NOACA studies as the project is maturing as planned toward concept selection later this year. In addition, we had $12,000,000 in dry well costs, mainly related to the Lundin operated Busk well. This gives an EBITDA of SEK 878,000,000, up 41% from the last quarter. Depreciation was $258,000,000 or $12.9 per barrel. The decrease in depreciation rate from Q4 4 is mainly driven by year end reserve updates and decreased estimates for future abandonment costs on some fields. In the Q1, we also recorded an impairment amounting to net SEK 30,000,000 driven by Ula Tambar and partly offset by a reversal of previous impairments on Ivarossen. The main reasons for the impairment charge are the effect of updated Phasing of production and cost profiles on Ula, offset by the increase in short term prices. Net financial expenses were €90,000,000 and included €19,000,000 in costs related to early redemption of the company's $500,000,000 senior notes maturing in 2025. Apart from that, the other reason for the increase in net while a gain of SEK 42,000,000 in Q4 as the Norwegian kronor strengthened late last year. Summing up the items so far gives a profit before tax of NOK 501,000,000, up 113% from the 4th quarter. Tax expenses amounted to SEK 374,000,000, which means an effective tax rate for the quarter of approximately 75%. Net profit in the Q1 ended at 127,000,000 or 0.35 dollars per share. With higher prices, stable production, Low cash tax and spending in line with our plan, both operating cash flow and free cash flow was very strong in the quarter. Cash flows from operations amounted to $900,000,000 Investments, including payments on leased debt, amounted to $343,000,000 across the various spend categories with CapEx being over 60%. Free cash flow before financing was thus 5 €58,000,000 an increase of 141% compared to Q4. As already mentioned, during the quarter, we redeemed the bond and including the core premium, this redemption amounted to SEK515,000,000 and was paid from cash. Interest paid was SEK 63,000,000 and purchase of treasury shares was SEK 13,000,000. Dividend paid was $112,500,000 and we then ended the quarter with a cash balance of 3.92 In addition to the small change in cash on the balance sheet, There are a few things to note on the left hand side of the balance sheet. Property, plant and equipment increased by SEK126,000,000. We had additions of 306 where investments at Valhall and Alvheim was roughly 60%, while Scarf and Johan Sverdrup made up roughly 25%. Depreciation amounted to SEK 233,000,000 and we had a net impairment reversal of SEK 53,000,000. Furthermore, other intangible assets decreased by SEK 165,000,000. Other intangible was impaired with $83,000,000 while we reclassified exploration assets of $74,000,000 to PP and E related to the Frosk test producer. On the right hand side, tax payables has increased to SEK 289,000,000 UP to €452,000,000 and bonds and bank debt has decreased with almost €500,000,000 down to €3,500,000,000 In Q1, we have taken several steps to further optimize the capital structure, improving our financial flexibility for the years ahead. In February, Moody's upgraded Aker BP's company Credit rating to investment grade. As a result, all 3 main rating agencies now have an investment grade credit rating with stable outlook on the company. Following this, the focus this quarter has been on extending our maturity profile, adjusting liquidity position and reducing financing costs. Firstly, We have redeemed 1 of our last 2 outstanding callable bonds, removing maturities from the CapEx heavy period of Nuaka in 2025. This bond was issued in 2018 with a coupon of almost 5.9%, significantly above what we expect to achieve if we We are to issue a new bond today. Secondly, the maturity of our working capital facility has been extended from 2022 to 2024 with the option to further extend to 2026. Given the diversification of funding sources and successful issues of long dated bonds in 2020 And the strong free cash flow generation expected in 'twenty one and 'twenty two, we have scaled down the working capital facility from SEK 2,000,000,000 To 1,400,000,000 as planned when the facility was established in 2019 and to reduce commitment costs. Lastly, we have utilized the remaining extension option on the $2,000,000,000 liquidity facility to extend the maturity from 2025 to 2026. Both of these bank facilities are currently 100% undrawn and are established to provide financial flexibility, supporting both our organic investment program and enables us to react quickly to any potential inorganic opportunity. The refinancing done in Q1 FEILO FACKER BPE, and the good relationship we have with a very supportive bank group. The result of the strong cash flow generation and the refinancing activities are that at the end of the first quarter, Net debt has been reduced from Q4 with roughly $350,000,000 down to 3,100,000,000 Leverage has been reduced down to 1.2x EBITDAX, which is back to pre COVID levels. And our available liquidity remains industry leading, ending the quarter at 3,800,000,000. Furthermore, apart from the $750,000,000 of senior notes maturing in 2024, which is callable in June this year. Aker BP now have only $1,000,000,000 of debt maturing before 2,030. Combined, this provides the company with superior financial flexibility, supporting both our investment program in high return barrels, as well as allow us to capture value accretive inorganic opportunities that may arise. Before closing off with a summary of our key guiding parameters, let me say a few words on forecasted cash tax payments the next 5 quarters. In Q2 this year, we expect a small refund, which is the remaining installments for the fiscal year 2020. For the fiscal year 2021, we expect to be cash tax breakeven at roughly $50 Brent for the remaining of the year. And at current oil prices we expect to pay roughly $150,000,000 to $200,000,000 on average per quarter in the second half of twenty twenty one and the first half of twenty twenty two. Now to round off my presentation, Let me walk you through the key guiding parameters for 2021. In short, we keep all our and slightly above the guiding range, but as we now move into a maintenance season, we expect a bit lower production in Q2 before picking up again towards the end of the summer. Capital spend was roughly 400,000,000 and as our project activity is progressing as planned, we expect capital spending to pick up in the coming months. Production cost of $8.6 per barrel in Q1 was as expected. On a per barrel basis, we expect cost to Increase in the Q2 as production slightly decreases. We then expect cost per barrel to trend downwards again during Q3 and Q4. Lastly, our proposed dividends of $450,000,000 for 2021 remains unchanged and the Board of Directors has resolved to pay a quarterly dividend of SEK112,500,000 in May. I will now leave the word back to Karl for some concluding remarks before we move on to Q and A. Thank you, David. Solid delivery and solid results, as usual. So before we open up for questions, let me round off this presentation with reiterating our key priorities as they stand at the end of Q1, as I usually do. So let's start. Operational excellence is, of course, the fundament for everything we do. And this means running our assets with the highest safety standards and the highest possible efficiency. And this is always the number one priority for Aker BP. With a high activity level on the field development side, it's also extremely important to make sure that we're doing the right things right. Flawless project execution means delivering our projects on time and on budget, which is essential to ensure we generate the desired returns on our investments. I have not mentioned our new operating model in today's presentation, but the implementation of this model is a key priority in order to further improve operational efficiency and drive down cost in our operations. The other main improvement theme is the digital project execution model, which I touched upon in connection with the Norge project. This will be the full first full scale implementation ever on a fully digitally integrated project execution, and we aim to launch this in connection with the DG2 decision on Nwaka later this year. Continuing on Roarka, it is, of course, a key component of our growth story. And the key priority right now Our is to land the development concept that is both technically, economically and environmentally robust and that can be ready for FID within the deadline of the temporary tax system. And as communicated previously, I am confident that we will be able to do this. Alongside Norka, we are running full speed ahead with a dozen or so Other projects that will also contribute to continued growth and value creation for Aker BP and its stakeholders. This concludes our pre prepared remarks, and we're now open for questions. Our first question today comes from Teodor Nilsen from SB1 Markets. Please go ahead. Good morning, and thanks for taking my questions. And thank you for the update. I have three quick questions. First of all, on Sverdrup, good to see that a good performance there. What should we expect of production from Sverdrup going forward? Is it fair to assume around 60,000 barrels Today, flattish until Q4 2022 or should we expect some maintenance work this summer? Second question is on Ulljar Pannbader, what's the value after impairment? And my last question is on exploration. And what's the commercial threshold for the Stellanese? Well, I'm also saying surely well in the balance sheet compared To the previous estimate that you presented on the slides. Yes. Thanks, Thierry. So regarding The Johan Sardeb, we haven't normally disclosed the forward predictions On the individual fields, but there will, of course, be some discussions and possible interruption related to the installation of the new process platform. So But I don't think you're too far off with your estimations. Then with regards to remaining asset value On the Ola Theodor, I will refer you to the notes. So the book value recoverable amount is roughly SEK 600,000,000 and I think it's worth noting that that does not then include the asset and retirement obligations and tax deferred taxes. And then your question For commercial threshold, that will, of course, depend on phase and restaurant quality in addition to volumes. But I think it would be fair to say that if this ends up as a stand alone field development, Volumes significantly lower than around 150,000,000 barrels is probably difficult to do on a stand alone feed development Depending on reservoir qualities in the reservoir, that would probably be equal both for Jiangsu and for Stangleston. Okay. Thank you. That's clear. Thank you. We move on to our next questioner, Jon Charrington from Societe Generale. Please go ahead. Good morning, everyone, and thank you for the update this morning. I would just like to go back on a few details, if you don't mind. First on the phasing of CapEx throughout the year, is that possible to provide just an update On the level of mining offshore, when it comes to personnel that is currently involved offshore, that will be great. A second point will be on production. You say that in the Q2, we should expect lower output From the company overall, are you able to provide just a bit more granularity what sort of asset is impacted And by lower production levels. And then the last question will be more about business development. You have signaled this agreement with ENI in the UK and RC. Are you able just to provide a few more I comment on potential work ongoing in the second half of the year in the UK and RC. Thank you. Okay. Do you still can start with fast pacing on CapEx, David? Yes. So I think the comment there is that we expect CapEx to pick up, as mentioned, throughout the Here, and increase gradually with drilling both on Valhall and also the HOD project towards the end Here. And with regards to manning, specifically offshore, I don't know Karl if you have any sort of commentary on that. So the facing The majority of the personnel offshore is OpEx personnel or related to Drill Ex. I think on the operation side, it's around SEK 380,000,000 in total, which is pretty normal for this kind of situation. And then we are currently operating 2, 3 rigs, which would probably amount to about 100 Per rig, so you probably end up in rate 7.50 ish. But that's not really the reason Why we have a different phasing in the CapEx profile. Then when it comes to production in Q2, as we already indicated Also at the Capital Markets Day, there will be variations throughout the year. And as mentioned, as we move into Maintenance season now production in the second quarter will be slightly lower towards the lower end, I guess, of the guiding range Before picking up again, as mentioned, towards the end of the summer, I don't go into any more specific details on that. And then regarding the entry into U. K. As a partner alongside Eni, I don't intend to comment on possible future activities, both in that neither in Licensed nor in other possible activities, but I can provide you with a little bit of insight as to how this came about. So as you may be aware, we have spent quite a lot of time mapping the subsurface in the Greater Alfheim area with particular focus on injectides and particularly the Nektiles in the Heimdal formation. And that has led us to be aware of an opportunity, which we have now captured both on the Norwegian side and on the U. K. Side. I don't think I think you can draw the conclusion that we are continuing to work with potential in this area, But I'm not going to comment on specifics to this regard. It is great. Thank you for your insights. Thank you. We now move on to Anders Holte from Kepler for our next question. Please go ahead. Can you hear me? Yes, we can now. Please go ahead. Okay. Very good. Thank you for taking my questions. I actually just have 2 small ones as the main ones have been covered already. Just If you could color, is there anything more you could share with us on the progress of Slovakia? More specifically on the timelines and how comfortable you and Aker By making the clearly all important deadline to hand in the plan for development towards end of next year. And then also Looking at your Slide number 9 here. I know you just not going to comment on future business development ideas or endeavors there. But Clearly, when you look at the Erind Petrol and the Froskelor discoveries, they both spill over to the U. K. Site. Is it not Is it a far fetched thought that you will expand your presence on the U. On the UK consultants, just given your exposure on the Norwegian side of those specific discoveries. Thank you. So when it comes to Norka, And maybe I should have been more direct in my comments in the presentation. So first of all, I personally spent quite a Lot of time now diving into the concept, the cost estimates, the time line, etcetera, following Easter. And I must say I'm really impressed by the team who has been working on this in the Alliance in an Alliance setting. In a very short period of time, they have been able to mature the major technical solutions to a level that at least I haven't seen at this stage in a project before. So on that basis, I'm extremely confident that we will be able to deliver the Norka project according to the time lines we have previously announced. And just to reiterate what those are, we plan do plan for DG, a formal DG2 in Q3. And right now and probably even before summer, the main technical elements will be locked in place, which means that there will only be costing long lead items and that kind of work remaining. And since this It's an alliance project and we don't have to work on competitive feed and tender processes following DG2. The technical teams will immediately after making the concept selection technical concept selection progress with maturity into the detailed engineering phase. So we are actually also saving a So we are actually also saving about 6 months compared to a normal project execution, which increases robustness in this time line. So in total Anders, this is not on the top of my worry list for the moment. When it comes to the U. K, yes, of course, there are reasons for us expanding into the U. K. And it's mostly, as As I commented on Johan's question related to the inject that expanding across the border. And then as you if you put that as a kind of a basis for answering your question, It's of course clear that this system does not expand infinitely on the U. K. Continental shelf. So this is a standalone To continue tracking a system that we have been successfully exploiting on the Norwegian continental shelf and do not Constitute a strategic change or a bigger strategic effort on the U. K. Side. Thank you. Thank you. We go to our next question from Al Stanton from RBC. Please go ahead. Yes. Good morning, guys. I get that ACOPP is a sort of technology led company. We're very focused on efficiency. And at 4 kilos, your emissions Very good and leading. But it strikes me that net zero doesn't get much attention. I'm just wondering why color it's not Perhaps more prominent on your worry list, 2,050 seems to be some way off given, Particularly in the last month, everyone has been fighting to bring the date as far forward as possible, and yet it doesn't feature And that could be Pete schedule that prominently. Thanks, Al. Yes, The first part of your question is very correct. We I don't know if we are technically led, but we are at least driven by performance and trying our best to lead in terms of performance in every major segment. When it comes to net 0, I think the way we think about it in Aker BP is that we will do our best and do everything we can to reduce the emissions that we are directly impacting on the climate, right? Which means that we have power from shore from Eversen, which will reduce emissions. We are continually working with smaller, I would say, it's more continuous energy efficiency improvement activities. This year will probably be Around 10000 to 15000 tons, again, from the same base in terms of reduction. And then we try to focus on the things we can, in fact, impact. And then by minimizing our footprint, by maximizing our performance, We're paying back to both society and stakeholders, which can, of course, Decide to invest on negative CO2 measures, which they are probably better at position on executing And we are. So you won't really find Aker BP working very hard to develop off Set mechanism to further reduce the scope if it doesn't directly impact how we operate our units. So we do believe that Our shareholders are better positioned to allocate that kind of funds than we are as a company. Okay. That's very clear. Thank you. Thank you. Kjetil Bakken. We now move on to James Hosey from Barclays for our next question. Please go ahead. Hi, good morning. Just a couple of questions from me. Just your comment On the debt profiles, are you actually planning to refinance the 2024 notes when they become callable in a few months? And then on your comments about being able Respond quickly to acquisition opportunities. Is it still challenging to find compelling deals in the Norwegian asset market? That's something you've mentioned previously. And then just I mean, what's the likelihood that the next material transaction sees Aker BP export its successful business model to new geography, And I'm not just referring to the U. K. On that. Thank you. Maybe I'll start with the refinancing, Karl, and then you do the M and Questions? Yes. Yes. So I think what I can say on this is that this is the 2024 bond is something that we are, of course, evaluating currently and of course, we can't go into specifics on that, but it's, of course, natural to evaluate given that it's the last of callable bonds that we have and also when we look at the economics of that. But that will be the decision will be taken in due time. And then moving on to M and A and starting with the Norwegian Continental Shelf. I think the key issue we have and we have to ask ourselves and are continually Asking ourselves and the management team is what will create the most value for Aker BP shareholders. There are a number of Transaction opportunities on the Norwegian continental shelf that are either coming to the market or ongoing at the moment. But the key issue for us is to understand how that is value accretive to the story we have. And I think there are basically two lines of thought here, right? The first one is to acquire production, which seems to be quite expensive, and It's very hard to find that, that's value accretive to our shareholders. And the other one is to acquire more CapEx. And We are going to invest quite a lot into the organic hopper, and We don't normally see a need to further deepen that hopper. That being said, There might be opportunities, combined opportunities that we We'll find attractive, but we'll come back to that as we progress these discussions. When it comes to the, let's say, exporting the Aker BP model, it's a question I get quite regularly, I would say both from domain expertise in other basins, National Oil Companies, etcetera, etcetera. And my answer to has always been that Our main focus for this period is to deliver on the project execution scope, deliver on a cost reduction We have a planned and the emissions reduction. So right now, there are no plans to export, as you Stated it, James, to other regions for the moment. I think we have plenty on our plate. Thanks very much. Thank you. At this time, we have no further questions in the queue, gentlemen. I guess then we can cash in those last 10 minutes that we had allocated and wish you all You have a fantastic day wherever you are. Hope you all stay safe and that I know that many of you have already got your vaccines, and that's good, and we look forward to meet you all in person in the not too distant future. So with that, we thank you all. And please, if you have any follow-up questions, you know where to find us. Thank you.