Good morning, welcome to the presentation of Aker Solutions' third quarter results 2020. My name is Fredrik Berge, and I'm the head of investor relations. With me here today is Aker Solutions Chief Executive Officer, Kjetel Digre, and Aker Solutions Chief Financial Officer, Idar Eikrem. After the presentation, we will open for Q&A. With that, I hand it over to our CEO, Kjetel Digre.
Thank you, Fredrik. Good morning, and thank you for joining us on this call today. This is my first quarter reporting as the CEO of Aker Solutions, and it will also be the last quarter we report under the current structure before the merger with Kværner, which will be completed next month. For this presentation, I will focus on Aker Solutions results for the third quarter. Let me start with some operational highlights in the quarter. HSSE has top priority at Aker Solutions and for me, and in the third quarter, I'm pleased to say we recorded a positive trend and strong results. In fact, all our key performance indicators are in the best position they have been for several years. This has been achieved by implementing the IOGP life-saving rules and developing our leadership and culture to deliver a safe work environment and good operational quality.
This year, it has happened in a very difficult time while we, in parallel, manage the COVID-19 pandemic. In terms of project execution, big milestones were on one side, the successful installation of the topside module for the Troll phase III project for Equinor, and on the other, deliveries of subsea equipment to CNOOC's Lingshui development in the South China Sea. Finally, on operations, our NOK 1 billion cost-saving program, which was introduced in April this year, has now been implemented across the company. We have streamlined the company and the organization, and our utilization rate is now better aligned to the activity levels we are currently experiencing. On July 17th, we announced a series of strategic and transformational changes. First and foremost, the proposed merger with Kværner, but also the spin-offs of our carbon capture and wind development businesses.
Following a busy summer, we have now completed the spin-offs, and we are ready to complete the merger in a couple of weeks. I will come back with some more details on that process later. These transactions are designed to create a stronger and more focused supplier company that has the right setup, financial profile, and competence to serve customers in the oil and gas and renewable industries. The same drivers support the decision to sell ix3, our software development business, to Aker ASA. This company was set up based on our extensive knowledge and usage of software applications relevant to the execution of complex projects. We will continue working closely with ix3 as the company evolves, while we will no longer be required to fund the development of new software applications. We will not stop or pause with our digitalization efforts.
On the contrary, we will continue to work with the people and solutions in ix3 as a part of Aize , a company which is being set up by Aker ASA to improve efficiency, drive down costs, and change the way we work and collaborate together on major projects. Another highlight this quarter was the strong order intake. This was driven by the temporary tax incentives introduced by the Norwegian government this summer. We are already well underway with the Hod project, which was one of the earliest to be announced after the measures were introduced. In the third quarter, we secured several new contracts in both subsea and brownfield services. In subsea, we have now secured 35 subsea tree orders this year based on our standardized tree. This shows that we have a competitive product and that our efforts to standardize are paying off.
We also had two brownfield service contracts extended during the quarter. To me, this is the best customer feedback we can get when the client, based on ongoing performance and collaboration, wants more of our services. Let's go to the key numbers for the quarter. Overall operating revenue for the third quarter was NOK 4.7 billion, excluding special items, down 34% from the same period last year. Our third quarter EBITDA was NOK 938 million. Excluding special items, EBITDA was NOK 243 million, down from NOK 570 million a year earlier. This was equal to an underlying margin of 5.2%. Order intake continued to evolve favorably and was strong at NOK 7.1 billion in the quarter. The order backlog increased to NOK 29.2 billion at the end of the third quarter. Afterwards, Idar will take you through the numbers in more detail.
As I said, we delivered another quarter of strong order intake. The order backlog is back to its highest level since the second quarter last year. The temporary tax incentives on the NCS led to several new projects being sanctioned. Let me give you a few highlights. Our first subsea win with ConocoPhillips was a very exciting award. In the new Tommeliten Alpha project, we will combine our topside and subsea system integration capability. Integrating subsea and topside modifications is one way in which we stand out from the competition. We will deliver 10 subsea trees and associated equipment, and we have started on the modification work on Ekofisk to prepare for the successful integration of the Tommeliten Alpha discovery. Next, the SPS award from Equinor on Breidablikk shows that we have a strong portfolio of subsea projects. In the third quarter, we announced additional call-offs for this project.
The contract now covers the delivery of 4 subsea templates and up to 23 subsea trees and associated components. It includes our standard lightweight vertical subsea trees, as well as our Vectus subsea control system. Low carbon solutions like the electrification of oil and gas facilities play an important part of our future workload. We are already working on the FEEDs for the electrification of Equinor's Troll B and C platforms. During the third quarter, we signed an engineering procurement, construction, and installation contract for the integration of a high voltage electrical boiler package as part of the electrification of Lundin Energy's Edvard Grieg platform in Norway. The electrical boilers will replace the heat generation provided by the gas turbines on the platform today, making Edvard Grieg a fully electrified platform.
During the third quarter, we also secured a five-year contract extension from ExxonMobil Canada for the provisional engineering, procurement, and construction services for the Hebron platform offshore Newfoundland. We also booked a three-year contract extension to a framework agreement for work at North Sea Fields operated by ConocoPhillips. The front-end business is still active, pointing to more work to come in the future. We secured 23 new front-end contracts ranging from feasibility studies to full FEEDs. By that, we have 112 front-end orders year to date, one more than the record level of 2019. These provide a solid base for potential future order intake. Current ongoing FEEDs include Jansz for Chevron in Australia, the Troll West electrification, and the Heidrun B upgrade, both for Equinor.
We also had three projects being converted from FEEDs to projects this quarter, two for ConocoPhillips on Tommeliten, and the Hebron project for ExxonMobil. Now let me give you an update on where we stand in the process to merge the two companies, Aker Solutions and Kværner. On July 17th, the merger plan was announced, since then we have passed several key milestones on the way to completing the merger. We have identified the new management team and are in the process of completing the rollout of the whole organization. A new board of directors has also been elected. This will be effective from day one of the merger. Combining the two companies will create a stronger supplier company, we are working to release synergies and further efficiencies, both from digitalization efforts and a new optimized organization globally.
As one company, we will be better positioned to serve the oil and gas industry, and we have also set targets for the share of low carbon and renewables projects to grow significantly in the new Aker Solutions. The first day for the new Aker Solutions will be November 11th according to our current plans. This date will be the first day of trading as one single company. At the same time as announcing the merger between Aker Solutions and Kværner, we also started the process publicly to spin off the developer roles of Aker Carbon Capture and Aker Offshore Wind to shareholders. This process has created significant value for shareholders. Both companies started trading as separate units on August 26th. The combined market value of all three companies today has increased more than 300% versus the market value on July 16th, the day before the news broke.
We look forward to continue to work closely with both companies on both offshore wind and carbon capture projects, such as the Norcem CCS plant in Norway. Now let me turn to the outlook. Following the complete standstill we experienced when the pandemic broke out, activity has picked up. We are currently tendering for about NOK 42 billion worth of new orders. This is split fairly evenly between Norway, Brazil, Asia Pacific, but we are also working on attractive prospects in Africa and North America. I will not go through every project we are bidding for, but one project you have heard about is the NOAKA development in Norway. We are currently performing a concept study on the NOA and Fulla field to optimize the full NOAKA development. In addition, we are preparing a digital execution of the project that will transform the way we deliver complex projects together.
As always, the timing of these awards remain uncertain. However, the map shows how much market sentiment has changed since the first half of the year. To summarize, we concluded another quarter with strong order intake. Our increased backlog improves visibility for 2021 and beyond, and we have implemented the cost-saving initiatives we announced in the spring. As we are prepared to merge Aker Solutions and Kværner, we are working to release synergies and further efficiencies. We are also getting close to completing some projects that were won in a very competitive market a few years back. This will support our financial performance in the future. Sanctioning activity on the NCS is expected to continue in the near to medium term, as the temporary tax relief measure give operators additional incentives to sanction projects before the end of 2022.
At the same time, our discussions with clients on international projects are progressing again after everything was put on hold this spring. They are now starting to bring back robust projects to the market. This is the last time we report as Aker Solutions the way it looks today. We plan to come back to the market to give you an update on the outlook and direction for the combined company before Christmas. With that, I will let Idar take you through the numbers in more detail.
Thank you, Kjetel, and good morning. I will now take you through the key financial highlights of the third quarter, our segment performance, and provide some financial guidance. As always, all numbers mentioned are in Norwegian kroner. Let me start with the income statement. Overall operating revenue for the third quarter was NOK 5.5 billion. The revenue was positively impacted by NOK 804 million gain on the dividend transaction of Aker Carbon Capture and Aker Offshore Wind. Excluding these effects, the revenue was NOK 4.7 billion, down 34% year-on-year. The revenue decline was primarily driven by the Field Design sub-segment, as previously guided, following the record activity last year and continued progress towards finalization of several ongoing projects, some with COVID-19 impacts. Our reported third quarter EBITDA was NOK 938 million. Excluding special items, EBITDA was NOK 243 million, down from NOK 570 million a year earlier.
This was equal to an underlying margin of 5.2%, compared to 8% in the same period last year, reflecting the lower activity level and impact of the coronavirus, partly offset by our fixed cost reduction program. We have included restructuring cost of NOK 114 million in the quarter related to additional rightsizing of the organization following the lower activity level. Depreciation and amortization was NOK 301 million, in line with our previous guidance. Our reported third quarter EBIT or operating profit increased year-over-year to NOK 637 million from NOK 245 million. Excluding special items, EBIT was minus NOK 39 million, and the margin was minus 0.8% versus 3.7% in the previous year. This reflect our project portfolio with lower activity level as well as a few projects won in a very competitive market not yielding satisfactory margins. The negative impact in third quarter from these project is approximately NOK 150 million.
These projects are now in the finalization phase. Net financial items were negative NOK 116 million in the quarter, and our profit and loss tax charge was equal to a tax rate of 62%. The tax rate in the third quarter was negatively impacted by a non-cash impairment of tax assets in Brazil and Angola of NOK 177 million. We ended the quarter with a net income of NOK 199 million, and the earnings per share was NOK 0.75. Now moving to our balance sheet and cash flow performance. Our working capital or net current operating asset ended the third quarter at NOK 429 million, driven by our strong focus on cash collection in addition to other measures to improve working capital performance. Following the normalization of our working capital during last year, we continue to expect working capital to trend around NOK 1 billion going forward.
Our cash flow from operations in the third quarter was NOK 496 million, reflecting our working capital improvements. Cash flow from investing activities was positive NOK 109 million, reflecting the sale of ix3 and a reduced CapEx spending. As previously communicated, CapEx and R&D will be significantly reduced by about 40% this year compared to 2019. Excluding IFRS 16, we had a net interest-bearing debt of NOK 1.9 billion at the end of third quarter, down from NOK 2.4 billion at the end of second quarter. Our net interest bearing debt to EBITDA ended at two times, and as a reminder, the leverage covenant on both bonds and the revolving credit facility are at 3.5 times pre-IFRS 16.
Our total liquidity buffer at the end of the quarter was at a healthy NOK 5.9 billion, including our revolving credit facility. In the current environment, our main financial priority remains on cash flow performance and protecting the company's balance sheet. Now on to Projects, where third quarter revenue was down 37% year-on-year, driven by Field Design following the record activity last year, as well as continued progress towards finalization of several ongoing project. This resulted in an underlying Project EBITDA of NOK 190 million, with a margin of 5.3% for the quarter, down from 8.1% last year. EBIT, excluding special items, ended at NOK 3 million, reflecting our current project portfolio with significant lower activity level and, as mentioned earlier, a few project not yielding satisfactory margins. Third quarter order intake in Project was strong at NOK 5.4 billion, with a book-to-bill at 1.5 times, increasing our backlog coverage moving forward.
Now some further details for Subsea and Field Design within the Projects segment. Revenue from Subsea project decreased year-over-year to NOK 1.6 billion, revenue from Field Design normalized to NOK 2 billion. Third quarter order intake was strong with NOK 2 billion in Subsea and NOK 3.4 billion in Field Design. The backlog in Projects increased to NOK 17.8 billion, further improving our visibility. In Services, activity decreased year-over-year in Production Asset Services, primarily related to adverse impact of the COVID-19. Activity in the Subsea Lifecycle Services remain more resilient. Underlying EBITDA in Services was NOK 131 million, with a margin of 11.8%, up from 11.2% in the same quarter last year. This result in a EBIT of NOK 69 million, with a margin of 6.2% versus 7.2% a year ago. Third quarter order intake in Services was strong at NOK 1.7 billion, with a book-to-bill of 1.5 times.
The backlog ended at NOK 11.5 billion. Now over to the order intake and backlog performance for the group overall. We had another quarter of strong order intake at NOK 7.1 billion, equal to a book-to-bill of 1.5 times when excluding the revenue from dividend transactions. Our backlog increased to NOK 29.2 billion, further increasing our visibility. Our second and third quarter order intake was significantly better than expected earlier this year, driven by the recovery of the oil market and the government incentive measures. The outlook for order intake has improved, and we now see encouraging signs for project sanctioning moving into 2021 and 2022. Finally, over to our guidance. As you know, during the first half of this year, the activity in our industry was significantly impacted by the COVID-19 and steep decline in oil prices. However, the outlook has improved with government measures and recovery in commodity prices.
For the year overall, we continue to expect revenue at around NOK 21 billion-NOK 22 billion, excluding the revenue from dividend transaction. As we move forward, our increased backlog, combined with a healthy FEEDs and tendering activity, should turn into a number of interesting opportunities where Aker Solutions is well-positioned. This, combined with our leading capabilities within energy transition and low-carbon solution, make us more optimistic about the outlook moving forward. We will also continue to leverage on our front-end capabilities to capture opportunities and engage with our customers at an early stage. As activity level picks up further, it will be important to harvest the scale effect from our improvement programs and cost and asset base. To sum up, the third quarter was a transformative quarter for Aker Solutions, unlocking significant shareholder value through the spin-offs.
Importantly, we announced the merger with Kværner to create a leading execution company and increasing our energy transition ambitions. We deliver another quarter of strong order intake, and we are on track with our cost and CapEx reduction measures, and our merger process is on track. This should provide a good foundation moving forward for the merged Aker Solutions, and we will get back to more detailed information regarding the merged company during the fourth quarter. With that, I would like to thank for you listening and hand it back to Fredrik.
Thank you, Idar. We are now ready to open the call for questions. Please try to limit to one question and one follow-up per person. Operator, you may now open the line for questions.
Thank you. If you'd like to ask a question at this time, please press star one on your telephone keypad. The first question comes from Michael Alford in Citi.
Hi. Good morning. Thanks for taking my questions. I've got a couple. I'll start with the first one. Just on your outlook guidance, you don't seem to be referring much to the view on margins, given the weaker margins in 3Q. I'm wondering whether you could give an update of where you expect margins to trend into 4Q and into 2021. Are you going to still see the headwinds around these poorer performing projects? Was my first question. Thank you.
Yeah. We have not given specific guidance on the fourth quarter. Personally, I think guidance on each quarter is probably a bit both difficult to do and we need to look it on a more longer term. As mentioned in my presentation, the underlying margin for the third quarter was 5.2%. We have included a negative impact from those project I mentioned of around NOK 150. If you adjust for that, you will get slightly above 8% in our EBITDA margin for the quarter. With that, I don't have any better sort of guidance of margins for the fourth quarter than using more than average margin year to date.
Okay. Thank you. Just an unrelated follow-up. I'm just wondering whether you could again outline where you see the share of low-carbon projects in the new combined Aker Solutions going forward. What it is today, and then where you expect it to be over the medium term. That'll be helpful. Thank you.
First of all, I can see that the new combined company has complementary both competences and capacities that are relevant for this, and also ongoing opportunities. To us, the way that we are engaging in low-carbon opportunities is quite broad. We are already into the area of electrification of existing brownfield installations, particularly offshore Norway. Then we have, as previously mentioned, been key to both shaping and then now also spinning off the Aker Carbon Capture and Aker Offshore Wind, which have opportunities that we will be part of when executing. We also see that in our dialogue now with all our key customers, this is becoming a clearer and clearer topic, really sort of covering more and more of the agenda we have together.
In my mind, it seems like this is really going to get traction in not only Norway, where we are ongoing with electrification projects, but also towards carbon capture, starting with the example around Norcem, which is due to be decided by Parliament, kicking off on the first quarter next year, also abroad.
Okay. Thanks. On Norcem, what would be your share of the scope? I think Aker Carbon Capture have given an award number, but I guess a lot of that would be for Aker Solutions to prosecute on. Could you give me a sense as to how big that could be, please?
Yeah. First of all, I'll just say that Aker Carbon Capture was an integrated part of Aker Solutions, and the way we are collaborating now through both formal agreements and the way we are handling the different opportunities are still in very close collaboration. We will be part of both that opportunity and the other opportunities that Aker Carbon Capture is looking at. Just now, we are looking at the Norcem project, and we are setting up the right way of both covering the roles and then collaborating to make sure that that project becomes a true success. What we will definitely do is to be key in both engineering and design, and also how we control the total plans and the cluster of suppliers towards that Norcem initiative.
The weeks to come and towards final sanctioning of the project and contract award, we will then detail out the exact roles and then obviously the share that Aker Solutions have in that project.
Okay. Thank you very much.
Next question is from Sahar Islam in Goldman Sachs. Please go ahead.
Morning. Thank you for taking my questions. It sounds like the project margins, particularly in 2021 underlying should be better. Could you just confirm what level you see those going to? If they are better, is it because pricing is better or because you get some of the benefits of cost savings? My second question was on working capital. You had a very good performance in Q3, and you're well below the working cap levels you're guiding to. Should we expect a normalization in Q4 in working capital, or do you expect to end the year with a better working capital performance than you're expecting in the medium term?
Yeah. Kjetel here first. Idar covered the issue of margins a bit earlier, and he can revert to that as well. Just also when we talk about the project that we are due to complete, I just want to also describe how we are now closely working that together with our clients, and really being in a countdown mode to make sure that they are as successful as they can be now at the very end. Also, looking forward, one key focus area is obviously that we will bring learnings from our history and also make sure that we mobilize the right competence, and we will also capitalize on the improvement initiatives we have going to make sure that all of this, including cost cuts, are supporting when ramping up on the newly awarded work.
On the pricing side of things, our view is that it's fairly stable, so it's really up to us now to improve further and make sure that we are delivering projects precisely and in a stable manner. Idar?
Yeah, just confirming what Kjetel said. The project mentioning is a drag on our margins, and we will finalize those projects and finish them strong over the next 6-8 months. Thereafter, as Kjetel mentioned, we will ramp up with the newly awarded project. Our target and mandate is, of course, to have sound margins on every project that we embark on. When you can complete those projects and continue working on new projects with sound margins, you should see improvement in margins going forward. That, combined with the cost cut program, and as previously mentioned, the NOK 1 billion cost cut program is fully implemented, and we see clearly the effect coming through our earnings this quarter and continuing to the fourth quarter, as well as our ambition to reduce the CapEx and improve overall cash flow for the group.
To the working capital question, we had a strong quarter this quarter with NOK 429 million in operating or working capital. We expect fluctuation going forward, and the previous guidance has been fluctuation around NOK 1 billion.
Just to follow up on that, do you expect to get back towards the NOK 1 billion at 4Q, or is that normalization over the next year?
I don't want to be very specific, we will, of course, have a high focus on cash collection and working capital improvements. We clearly delivered on that in the third quarter. This can fluctuate quite a lot from one day to another, and if, depending on the cutoff dates and the various quarters, you could expect to see quite large fluctuation from one day to another during a quarterly close. Let's say we have seen an example that can vary with NOK 300 million or NOK 400 million around a quarterly close from one day to another. The best guidance I have.
Understood. Thank you very much.
I can give to you is the fluctuation around NOK 1 billion. We will come back with more information later on, as Kjetel mentioned, when it comes to the merged entity and our working capital situation for the merged entity going forward.
Thank you.
Next question is from Frederik Lunde, Carnegie.
Yes, good morning. At the time of the merger announcement, there was a clear plan for NOK 1 billion in annual cash flow for the joint company longer term. Do you have any view on how that will shape up in 2021, 2022, as it's not included in the financial guidance in your slides?
Thank you, Fredrik. What we announced on the 17th of July is still valid, and we are continuing working on our merger and strategy plans, and we'll come back to you on more precise guidance. Our clear target is to grow the top line for the company going forward. We will cut the cost, and most of the targets that we set at the NOK 1.5 billion is already implemented, as well as the CapEx reduction. Our target to generate NOK 1 billion on average over the next years to come is still valid. Of course, it's an average number, and you will probably have somewhat lower in the first phase and then growing from there.
Great. Thank you.
As a reminder, to ask a question, please press star one. Our next question is from Haakon Amundsen in ABG.
Yeah, good morning, guys. Just a question on the impact of the tax breaks given in Norway. I guess oil companies will be eager to progress quite quickly with awarding new projects. I was just wondering if this has an impact on your competitive position and potentially the margins you can achieve on these awards relative to the order intake you've had in the last couple of years in Norway.
Well, again, back to where we are now as being onboarded in Aker Solutions, we have had a lot of dialogue with all our key clients. As I said, agendas and discussions is obviously about renewables and transformation together as I already mentioned. Particularly for the ones operating in Norway, we see also a clear increase in opportunities. We are in dialogue on what they are and how to actually solve them. We see that the combined company with the complementary competence and capacities and really a broader offering is highly relevant for most of the positive effects coming from the tax incentives this year.
Just to add to that, when it comes to our competitive position, both companies, Kværner and Aker Solutions have been working on improving their competitive position, that being a project in Norway or outside Norway, and that will continue. We believe that we have a significant improvement in our competitive positions, and with the interesting opportunities that is coming up. As you know, and we see it from studies and stuff that we are doing now, that there will be interesting opportunities over the next couple of years and expect sanctioning on that one. As you probably know, in Norway, you need to submit the plan for development within end of 2022, and we therefore expect to see a pickup of, let's say, new sanction project during 2021 and into 2022.
As you all know, it will take some time before you see immediately uptake in the top line, but very interesting opportunities ahead of us.
All right. Thank you. Just an unrelated follow-up. I'm sorry if I missed it in the introduction, could you give some numbers on your software divestment in terms of how much it had impact on cash, or will have, and how it was valued? Can you give some disclosure on that, please?
Yeah. The sales value on the ix3 entity was at NOK 222 million. NOK 172 is paid in the third quarter, and the remaining NOK 50 will be paid based on certain milestones going forward. That is the transaction, and as Kjetel mentioned, our digitalization efforts will continue with full force. We are not the company that is going to be the development company of those, and therefore we will save, let's say, the CapEx that requires, as well as the operating expenses that we historically have had by developing that company. All in all, we said that if you look at the operating expense savings, we estimate that to be on an annual basis around NOK 50 million, taking into account also the license fees that we are going to pay for using those applications.
In addition to that, of course, the CapEx savings comes on top of that one.
All right. Thank you.
Our next question is from Renaud Saulle in Anaconda. Please go ahead.
Yes, good morning. Thank you for taking the question. My first question is about the renewable profile that Aker Solutions has post the spin-off of Aker Offshore Wind and Aker Carbon Capture. In other words, I understand that you are now an asset-light engineer, but what % of your sales will still be done on renewable project going forward? What is your assumption of the split of sales within two to three years? On carbon capture, we've seen yesterday a big announcement by BP, Eni, National Grid, Shell and Total to do a joint venture called Northern Endurance Partnership, which will undergo major carbon capture projects. I would like to know if your company's Aker Carbon Capture or Aker Solutions as a backup engineer will be part of these projects.
Well, first of all just sort of reiterate on something that we have communicated earlier on, it's really linked to ambitions for the company going forward. As we said earlier on, both engineering-wise and our yards and others are involved in projects as we speak. We see the opportunities coming. Our ambitions going forward is actually to look at 1/3 of our revenue coming from what we call sustainable energy solutions and projects in 2025, up to 2/3 in 2030. To me, it's really sort of inspiring to see how the two companies, when being formed into one, has this complementary competence and capacities, a broad offering also towards the renewable area.
Just to remind ourselves, we are already in the Kværner setting part of the Hywind Tampen floating windmill project in Norway. We are there with the right competencies and also projects ongoing, and we will work closely with Aker Carbon Capture and Aker Offshore Wind on their initiatives and also towards other customers.
Yeah, I just want to add to that one, Kjetel, that I have already picked up that some believe that our ambition is not as high as before on the renewable side after the spin-off, but it's actually more the opposite. I think that create a even stronger platform for realizing our ambitious target on renewables going forward. That I think is an important message from us.
To the last part of the question, I think we should just refrain from commenting on any at all. We are there on the technology side in general. I don't think it's relevant to comment on that specific project.
Other than we are following, of course, closely all those project that might be relevant in our targeted area. That's important.
Sorry, just to follow up. Whom do you see as your direct competition in carbon capture project business on the engineering side?
I think carbon capture is a technology area in itself. I think that is more to know the technology owner side than us as a general competent broad offering supplier towards those type of industry projects. I think it's a differentiation here between technology ownership and us being a lot sort of clearer and, in one way, cleaner supplier to both Aker Carbon Capture and others having initiatives in that area. It's really a strength for us, that part of it, and the spinoff of Aker Carbon Capture.
My question was more do you see people like Technip or other engineering in front of you when you bid for a carbon capture project or?
Well, again, just I think, the technology side of it, they provide sort of distinct offerings. We will then collaborate with different owners of technology in different projects, Aker Carbon Capture and others, and then sometimes we will compete in those projects with Technip and others. Yes.
Thank you.
There's no other questions at this time.
Thank you. We will end the call. Thank you all for listening.
This will conclude today's conference call. Thank you for your participation. Ladies and gentlemen, you may now disconnect.