Good morning, welcome to Aker Solutions presentation of the Q1 results for 2019. My name is Tove Røskaft, I'm Head of Communications and Investor Relations at Aker Solutions. With me here today is our Chief Executive Officer, Luis Araujo, and our Chief Financial Officer, Svein Stoknes. They will go through the main developments of the quarter. We will also have time for some questions and one-on-one interviews with the press after their presentations. Please note that there are no fire drills scheduled today, so in case of an alarm, I'd like to point out to your nearest emergency exits, which are through the glass door behind you and to your left. Luis, I will now hand over to you.
Thank you, Tove. Good morning, and thank you for joining us here today. I'm happy to say that the Q1 of 2019 was yet another period of strong execution, stable underlying margins, and solid order intake. Let me start with the main developments of the quarter. During this quarter, we completed the delivery of the topside processing platform for Johan Sverdrup field. The topside was transported to the field and installed in one single lift offshore. We delivered the Kaombo Subsea equipment on time, and this enabled Total to start production on the Kaombo South at the end of the quarter. The second FPSO on the field will add 150,000 barrels of oil per day. We are very proud to have been part of this large project in Angola.
Our umbilicals plant in Moss set a new standard for the industry on the Zohr project offshore Egypt by completing the delivery of 280 kilometers of steel tubes umbilicals, all delivered in record-breaking 15 months. In March, we were named Best Supplier for Subsea Equipment by Petrobras, the biggest user of Subsea equipment in the world. This came as a result of our strong performance in the Brazilian pre-salt play. It is an award we are extremely proud of. We are constantly making moves to optimize our portfolio of products and services. In the Q1, we made a strategic investment in Airborne Oil & Gas, a innovative maker of fully bonded thermoplastic composite pipe, also called TCP. The lightweight, high-strength, and corrosion-resistant composite pipes provide cost and operational benefits for Subsea production and oil field service application, especially in deepwater.
We look forward to work with Airborne to introduce their TCP technology in our Subsea portfolio and also to develop new products using this type of materials. After the quarter end, we also announced plans for another technology-driven joint venture with FSubsea. This is called FASTSubsea, and this venture aims at developing Subsea boosting pumps that can improve recovery rates for existing and marginal fields without needing heavy equipment on the platform topside. We delivered another period of solid financial performance. In fact, it was the fifth quarter with both revenue and earnings growth. This thanks to our relentless focus on timely delivery and efficiency improvements despite the challenging pricing environment seen in recent years. Now for the main numbers. These are the Q1 figures according to the new IFRS standard.
Revenue of NOK 7.3 billion, EBITDA of NOK 634 million, and EBITDA margin of 8.7%. Excluding special items, the margin was 8.8% and EPS was NOK 0.57. We won 5.5 billion kroner in new orders, maintaining the backlog at a healthy NOK 33 billion. Afterwards, Svein will go through the numbers in more details. The market remained active. Our main win was the large Jansz-lo FEED contract, which I will come back to later. The order intake came from small awards, frame agreement call-offs, and growth on existing contracts. In Brazil, for our key client, Petrobras, we, through our local brownfield company, CSE.
In February, we won a contract from Wintershall to build a complete digital replica of the Nova Subsea production system. This includes a study to enable live data streaming from the Subsea equipment. We will help drive forward real time Subsea condition monitoring, production optimization, and predictive maintenance for the field. Finally, after many years, the market for carbon capture technology is seeing high activity. We secured another win on Northern Lights. This expanded scope will see Aker Solutions work in the CO₂ Subsea injection part of the project. After the quarter ended, we also secure a contract with Twence in the Netherlands to deliver a carbon capture plant at a waste to energy facility. This is the first commercial plant we will deliver with our modular solution named Just Catch.
The carbon capture market is active, and we are currently working on 20 prospects in Europe similar to this one. The market for early studies also remain active, and we secure 31 front-end studies in the quarter. To us, this is a good indication that the operators remain positive about sanctioning future projects, supported by current market conditions. Now to our star. The highlight of the quarter was the Subsea Gas Compression FEED award. The contract is with Chevron and with Exxon and Shell as partners for the Ichthys Field offshore Australia. We see this as an international breakthrough for our Subsea compression technology. As you know, this technology has already provided great results for Equinor at Åsgard since 2015 when it was installed. The FEED is the first service order under the master contract to develop the entire field.
The contract is for front-end engineering and design of a Subsea compression station, as well as an unmanned power and control floating platform. Compared with Åsgard, we are more than doubling the production capacity of the system. The water depth is three times deeper at more than 1,000 meters water depth. Together with our alliance partners, MAN Energy Solutions and ABB, we have reduced the size and cost as well. Our Subsea compression technology is an all-electric system, that's suitable for most large Subsea gas fields globally. Just to remind you, the Subsea gas compression increase recovery, reduce OpEx, reduce environmental footprint, and improve safety for the operator since you take people out of harm's way. All very important points to our client, to our clients and to the industry at this point in time.
Australia will be the first country outside Norway to use Subsea gas compression technology. Australia is well-suited for gas compression due to its many gas fields, but there's also interest in other regions. To give you an example, we have recently done gas compression studies for five clients in five different parts of the world. Aker Solutions is today launching a new identity to our software house, and we call it iX3. The name iX3 represents three words starting with I that outline its core offering. Integrated, because iX3 will offer digital solutions that allow customers to make better and data-driven decisions across the whole life of an asset. The second word, innovative, because iX3 will enable customers to make multiple solutions for concept selections and reduce the time to first oil.
Third word, insight, because data is only of value when it provides insight into assets and operations. ix3 brings together our work on digital twins, engineering automation, intelligent products, and asset performance and integrity. Ultimately, this leads to reduced costs, increased efficiency, and improved predictability. We are progressing well with our digital offering. I mentioned earlier today the Nova project for Wintershall. We are also working with BP to monitor live data from a field west of Shetlands. We have a strong digital alliance with Aker BP, and there is more in the pipeline. By going to the market with a strong brand and a clear offering, I believe we can create better results for our clients and new revenue streams for Aker Solutions.
After four years of cost-cutting and significant underinvestment in oil and gas, replacement ratios are at record lows. Thankfully, oil companies have the portfolio to address the expected decline. They also have record high free cash flows, and we see parked projects resurfacing and new projects emerging. Against this backdrop, offshore spending is forecast to increase by up to 5% in 2019, and accelerate to 5%-15% in 2020, according to industry estimates. As you can see in the top graph, the number of final investment decisions by oil companies continues to rise, and we know CapEx will follow. If we focus on the Subsea market, we can see a growing number of Subsea tier awards, as seen in the second graph.
However, I would like to point out that there is still overcapacity in some segments in our industry, and so we expect markets to remain competitive in certain segments. We still see prices improving long term. Now to the summary and outlook. Tender activity remains high in our main markets, and we are currently bidding for contracts totaling about NOK 55 billion. Our tender portfolio show a good balance between regions and segments, and we anticipate some key projects to be awarded this year. We continue to see increased interest in our carbon capture and storage technology. Our front-end capabilities also generate new opportunities. All in all, I believe that Aker Solutions is well-positioned to capture opportunities in both new and existing markets.
In summary, we closed the Q1 with a healthy order backlog, high tender activity, and continue a strong execution on projects and services. These elements are supporting both top line growth and stable margins. Thank you for listening, and Svein will go through the main numbers in more details. Svein?
Thank you, Luis, good morning. I will now take you through the key financial highlights of the Q1, our divisional performance, and run through our financial guidance before we move on to Q&A. As always, all numbers mentioned are in the Norwegian kroner. Please note that as of January 1st, 2019, we have adopted the new IFRS 16 accounting standard related to leasing. To state the obvious, this is purely a change in accounting method of leases, and it has no cash impact. Comparative figures have not been restated, and we have included additional information related to this change of accounting principle in the appendix. As usual, let's start with the income statement.
Overall operating revenue for the Q1 was NOK 7.3 billion, up 32% year-on-year, reflecting continued high activity on several ongoing field design projects, as well as increased activity and progress in Subsea on the back of work won over the last 18 months. As a result, our projects reporting segment was up 40% year-on-year. Our services segment was up 12% year-on-year, reflecting our strategy to grow our services business. This was primarily driven by the production asset services sub-segment. Our reported Q1 EBITDA was NOK 634 million. This included net NOK 3 million of special items, while the new IFRS 16 leasing standard lifted our reported EBITDA by NOK 140 million. For your reference, we have set out a table in the appendix that further specifies the special items and the effects of IFRS 16 leasing.
Excluding special items, EBITDA was NOK 636 million, an increase from NOK 384 million a year earlier. This was equal to an underlying margin of 8.8%, compared to 7.1% in the same period last year. Excluding the effects of IFRS 16, we continue to deliver stable underlying margins, and this should be viewed as a solid achievement, as we are currently progressing on our newly awarded work, one in a very competitive market, an evidence of continued strong execution and good momentum on efficiency improvement programs. Compared to the same period last year, we also have a higher share of lower margin field design and production asset services activity in our revenue and margin mix. Q1 depreciation was up year-on-year at NOK 309 million.
Excluding the effects of IFRS 16, the depreciation was NOK 192 million, in line with our previous guidance. We now expect underlying depreciation, including the effects of IFRS 16, to be around NOK 1.25 billion per year. Our reported Q1 EBIT operating profit increased year-on-year to NOK 325 million from NOK 226 million. Excluding special items, EBIT was NOK 329 million, and the margin was 4.5%, up from 3.7% the previous year. Net financial items were -NOK 96 million in the quarter, excluding a minor unrealized hedging loss of NOK 3 million. We continue to see our net financial items around this level per quarter going forward, excluding the effect of currency and non-qualifying hedges. Our tax charge was equivalent to a rate of 34% in the quarter.
Going forward, we continue to expect average P&L tax rates to be in the low to mid-30% range. We ended the quarter with net income of NOK 149 million, or earnings per share of NOK 0.54. Excluding special items, the earnings per share were NOK 0.57, up from NOK 0.31 last year. Moving to our balance sheet and cash flow performance. Our net current operating assets, or working capital, continued to normalize and ended the Q1 at NOK 248 million. Excluding the effects of IFRS 16, it ended at minus NOK 62 million. As previously guided, working capital is likely to fluctuate with large project work, and we now expect the level to continue to trend toward about 4% of group revenue over the next 12 months.
Excluding IFRS 16, we had net interest-bearing debt of NOK 940 million at the end of the Q1, up from NOK 347 million at Q4, reflecting the working capital outflow. Our net debt to EBITDA ended the quarter at a solid 0.5 times, and our financial position remained strong, with a total liquidity buffer at a healthy NOK 6.9 billion. This includes our revolving credit facility with leverage covenant at 3.5 times net debt to EBITDA. As a reminder, our RCF and latest bond covenants are both based on frozen GAAP, i.e., pre IFRS 16. Our solid financial position continues to give us flexibility and good financial headroom going forward. Our cash flow from operations in the Q1 was negative NOK 303 million, primarily reflecting the working capital outflow.
Our investing cash flows totaled a net negative NOK 159 million in the quarter, mainly reflecting our acquisition of a minority stake in the company Airborne and the remaining 30% of the Brazilian entity, CSE. We now expect overall CapEx and R&D at around 3% of 2019 annual revenue with flexibility. Cash flow from financing was negative NOK 156 million in the quarter, or negative NOK 22 million excluding the effect of leases paid under IFRS 16, reflecting a minor change in our external borrowings. Now on to Projects, where Q1 revenue was up 40% year-on-year, driven mainly by high activity level in the field design sub-segment compared to the same period last year. This resulted in an underlying Projects EBITDA margin of 8% in the quarter versus 7.6% last year.
The EBIT margin, excluding special items, was 4.7%, same as last year. As mentioned earlier, the margins for Q1 2019 onwards include the effects of IFRS 16. We had yet another quarter of solid operational performance in our Projects portfolio. As we are increasingly ramping up execution on newly awarded work, won in a very competitive market, it's important that we continue to realize significant benefits from improvement programs in our Projects portfolio. Order intake in Projects was NOK 3.5 billion in the quarter, down from a very solid NOK 6.5 billion in the year-earlier period, with book-to-bill at 0.6 times. The backlog in Projects ended the quarter at a healthy NOK 22.5 billion. Now for some further details for Subsea and field design within the Projects reporting segment.
Revenue from Subsea projects was up by 25% from the same period last year as activity increased on recently awarded work globally. Revenue from field design projects increased 54% year-on-year, mainly driven by continued strong activity on several ongoing modification and hookup jobs versus same period last year. In the Q1, field design accounted for 59% of Projects' revenues, up from 54% in the same period last year. Q1 order intake in Projects ended at 0.6 times, with NOK 2.1 billion in field design and NOK 1.4 billion in Subsea. Despite the competitive market, tendering activity is very healthy. We are currently tendering for about NOK 45 billion of work overall in Projects, with the majority in Subsea.
Our services revenue increased 12% year-on-year, mainly driven by international growth in our Production Asset Services sub-segment, which accounted for 58% of services revenues, up from 51% in the same period last year. Underlying EBITDA was NOK 187 million, with a margin of 14.4%, an increase from 11.7% in the same quarter last year. EBIT was NOK 120 million with a margin of 9.3%, up from 8% a year ago. The higher margins were due to good performance and increased activity level versus last year, as well as the mentioned effects of IFRS 16. Q1 order intake and services was strong at NOK 2 billion, resulted in the Q1 book-to-bill of 1.5 times, mainly related to international awards. Despite the competitive market, tendering activity is healthy, we are currently tendering for around NOK 10 billion of service work globally.
As a reminder, in addition, a part of services order intake is short cycled or book-and-turn in nature. Now over to the order intake and backlog performance for the group as a whole. Overall, Q1 order intake ended at NOK 5.5 billion, with a very healthy level of unannounced awards in several key regions globally, in particular, brownfield services and growth on existing contracts. The order intake was equivalent to book-to-bill of 0.8 times in the quarter. Our backlog totaled NOK 33 billion at the end of the Q1, which is equivalent to around 1.3 times our 2018 revenue. This gives us good visibility moving forward. During the Q1 of 2019, we continued to increase our international order intake. Our backlog is now considerably more geographically balanced despite phasing out some major projects in Africa.
Order intake continues to be somewhat uneven, caused by large contracts. As mentioned earlier, tendering activity is still good, with some key projects likely to be sanctioned over the next 6-12 months. We are currently engaged in tenders with an estimated sales value of about NOK 55 billion. As already highlighted, our backlog does not include part of our services business or potential growth or options on existing contracts. Finally, over to our guidance. We continue to see activity increasing, and at this point, we see our overall 2019 revenue up close to 10% year-on-year, with growth in both projects and in services. This reflects our solid order intake over the last 18 months, as well as the expected high activity in field design during the first half of this year.
We now see our 2019 overall underlying EBITDA margin up year-on-year. To remain around the year-to-date level, excluding the effects of the implementation of IFRS 16. As previously stated, to defend our underlying margins during 2019, a continued relentless focus on quality execution, supply chain, and operational efficiency improvements are needed, as we are continuing to phase in new work, one in a very competitive market. We also continue to leverage our differentiating front end capabilities to capture opportunities and engage with our customers at an early stage. As activity levels picks up further, it will be important to harvest scale effects from our very fit and streamlined organization and asset base. As part of our continuous improvement efforts, we are looking for ways to optimize our footprint, including our use of facilities, bases, yards, and offices.
Currently, we are in the process of subleasing some of our excess office capacity. As part of this program that will generate additional cash inflow for Aker Solutions, there could potentially be a need for an impairment of our right of use assets related to IFRS 16 in the Q2. The additional impairment charge could potentially be around NOK 150 million-NOK 250 million with no cash impact. To sum up, we have a healthy backlog and a solid financial position, which continues to give us increased flexibility and financial headroom to position Aker Solutions to fully take advantage of the recovery. We ended the Q1 by continuing to deliver strong project execution with good underlying financial performance, and by continuing to build a geographically more balanced order backlog. Thank you.
That was the end of our presentation here today, and we will now move on to questions.
We also have some online audience with us today. To warm up the audience in the room, I'll start with some questions from the online audience. The first one is from Lars Nicolai Rimmereid at the Pareto Securities He has two questions. EBITDA, a margin for projects was at 8% in the quarter versus 6%-7% in the prior quarters. Is this due to IFRS 16 or is this due to better execution?
The margin of 8% within projects is of course impacted by the implementation of IFRS 16. If you exclude the effects of IFRS 16, the underlying margin was 6.5% versus 7.1% in the same period last year.
Of course, maintaining margins at 6.5%, despite phasing in a lot of new work during the quarter is a very strong achievement.
Okay. Second question from Lars is, decreasing backlog and a book-to-bill under 1 times, should we worry about lack of projects in the future?
Go ahead, Luis.
Yeah, I can take that. Well, basically we are increasing the revenue, so that compensates for the small erosion backlog, but was a pretty strong order intake. As I explained during the presentation, we are tendering 55 billion NOK. You probably notice higher than we've been tendering the last few quarters. The opportunities are there. I also mentioned the front end being extremely busy, reminding that last year we had the record in number of studies. This year we start strong again the Q1, so clients are bringing more projects. I think I'm not that concerned about the number of projects under the current environment as usual.
Okay, thank you. We have two questions from Sahar Islam. The first question, the tendering pipeline of 55 billion NOK. Can you give us an idea of the key Geographics within this and the margins you expect to realize on the projects you are bidding on?
Well, the first part, is probably easier to take, which is I think is spread. We have projects in South America. We have projects in Africa. We have projects in the Pacific. It's as I said during the presentation, it's very well distributed. We have, as I said, Africa, Brazil, all the main areas, including also the Gulf coming back, I would say finally. In terms of margins, very hard to predict. We don't comment on that usually, it's too early to say. I mentioned that I expect the long-term prices to improve. It has to be. It's always a reflex of activity and utilization. Looking to our industry, some areas have quite still quite a lot of capacity available.
It's not across all the chain, which should be a concern for all of us, since there are some areas becoming more occupied now. Also some capacity was removed from the market in some segments. Overall, I think it will continue to be very competitive as always been. We expect prices to improve going forward.
Okay. A second question from Sahar was, how should we think about the shape of working capital through 2019 as we move towards the 4% of revenues normalization you have guided to?
As we have repeatedly been guiding on, we are on an upwards trend or normalization of our working capital level. You might find the movement in Q1 in isolation a little bit more sudden than I might have led you to believe. Keep remember that we ended 2018 on a very strong note. We are phasing out several projects that have historically been benefiting from a very strong cash flow profile. We're phasing in a lot of new work, which has a considerably more balanced cash flow profile. We will continue gradually moving towards this level of now 4% of revenue over the next 12 months. When I say 4%, please remember we're talking about net current operating assets.
There's no change in the underlying guidance of our working capital level. The increase is only due to the impact of IFRS 16 on our net current operating assets. That's the only difference. There's details outlined in the appendix of the presentation if you want more details on the breakdown.
Thank you, Svein. We have a question from Mick Pickup. When I look at the backlog profile, there has been little change to 2020 coverage in Q1, which stands significantly down on 2019 coverage a year ago and historical levels. Given high tendering levels, are there any reasons why this year the coverage ratio at this stage can be lower than historical levels?
The visibility looking one year ahead is not that different from what it was one year ago. I think, looking into 2019, one year ago, we had about NOK 11 billion secured. This time of the year, we have about NOK 8 billion. Remember, we have about NOK 55 billion of tenders ongoing at the moment, of which we believe several of these will be sanctioned and awarded over the next 6-12 months. We have very strong reason to believe that our visibility looking into 2020 will improve in the next few quarters.
Okay.
Yeah. I think it just complement that, sometimes this, what I call seasonality, some projects are still maturing. Assuming that we win our share, so it should improve visibility going forward.
Remember also that, you know, last year, Q4 2017 and Q1 2018 was unusually strong order intake-wise, so.
Good point.
Okay. Okay. Now I'm sure the audience is warmed up in the room. Maybe we can take a few questions from the room. Don't be shy.
Nice one here.
Fredrik Lunde, Carnegie. Just to rephrase Mick Pickup's question on 2020. Do you expect the same kind of, broadly speaking, the same revenue profile next year? Will that be a gap year? Because you have these big engineering contracts on Jansz-Io and also I guess in Ghana, which could ramp up quite quickly. Do you see those contributing in 2020 in a meaningful way?
I hope so. If you think about Jansz, for example, it's something that we are extremely happy with and proud, being two years of pre-FEEDs and then now the section of FEEDs. It also highlighted that what we signed was not the FEED contract, it was actually a framework agreement for the whole field. We expect that to materialize into larger contracts, as long as the FEED is successful. We have 200 people working in this field right now in this building here. We do believe that we are 12 months FEED, 12 - 18. Hopefully the project will be moving to sanctioning, and they need more capacity in to feed the global facility in Australia. Yeah. On that one, yes.
All the projects we are working right now that hopefully gonna be sanctioned. We always depend on sanctioning. We are very well positioned for those projects, but we're still depending on the client gets the right approvals to proceed. As you know, under the current market conditions, we expect it to happen because as I mentioned during our presentation, strong cash flow, strong prices and demand. Especially for gas, as we discussed, that should be good drivers to get this moving forward.
Without being specific on next year, you would expect revenue growth, assuming those projects in particular come in?
Still early days, but our plans is based on the fact that 2020 is gonna be up from 2019 again. You remember now we delivered 12% growth last year. We indicated we're gonna grow by another 10% this year. It's slightly more, you know, phased than what we previously had reason to believe that 2020 was gonna be a little bit more of a spike year. As we look at 2020 right now, we think it's gonna be up from 2019 again.
Actually, it's a good point to highlight that, it's a unique case. I don't see anybody growing in the market, like we are so.
Thank you.
Okay.
Haakon Amundsen from ABG. Just a question on your CapEx. Can you give some color on? It looks like you're increasing a little bit on your investment level, your revenues up and the 3% versus 2%. Is there any specific things we should know about?
I mean, if you look at the investments or the non-CapEx or R&D-related investments, we've done, you know, a minority stake in Airborne. As we mentioned, we bought the remaining 30% of CSE, the Brazilian entity we bought 70% stake in a couple of years ago now. We're looking into further investments in the wind, floating wind area. We also want to take advantage of other, you know, similar type of opportunities moving forward. On the CapEx side, the spend level is gonna be, you know, roughly the same as you've seen in the recent past.
We are investing into some services-related areas where we see that some of our clients would like to lease equipment from us rather than to buy. There will be some investments related to that type of activity, but nothing sort of significant in terms of uptick.
We are also concluding our new service facility in Angola, which is, we have the first step, a bank chamber in Africa, which is something that we agreed with some Angola strength opposition in that market going forward. That's, I think, is another important item.
Okay, thanks.
Okay. Since Haakon had a question, James Evans from BNP Paribas Exane had a similar question to Haakon. I think the add-on on that question from James is is this R&D level a new normalized level?
The guidance we now have in our slide is related to 2019. We're saying that it has some flexibility in it. I think, you know, being a technology company and operating in technology space, you know, our R&D spend in the recent past has been somewhat on the low side. The, you know, 2%-3% is what you should expect, you know, moving forward. 2019, 3%.
Okay. Thank you. Another question from James was to Luis. Luis, you referenced overcapacity in some segments. Where do you see the most challenge pricing within your business currently?
Okay. What I mentioned is overall. Of course, we are not luckily on drilling rigs or vessels, supply vessels. Now and those are overcapacity. On my portfolio, I would say probably Subsea capacity, even though it has been largely reduced, especially by our competitors. Also, we took shifts and so on. That's an area that is still capacity, which good and bad. The bad, of course, is the pricing, and the good is that we can ramp up if the market recovers faster than we think.
Okay. Any more questions in the audience? Yeah.
Yeah. Magnus Olsvik, Kepler Cheuvreux, Swedbank. First, a follow-up, I guess, from James' question? What type of segments do you see as most occupied? Just also following up on your comment earlier.
Okay. I think that what we need to worry and pay attention to the industry today is not only our own capacity, but our sub-supplier capacity. As you can imagine, during the downturn, people close facilities and they stop investing. Now with some sub-suppliers, we're trying to convince them to invest. Of course, we have to prove to them that it'll be a sustainable business. In terms of being busy, I think people, and I'm very glad that in Aker Solutions, we maintain a lot of people through the downturn. Even moving now to Jans, you know, during the downturn, we actually invested a large amount of money into develop the new, we call the new Åsgard.
If you look back to my presentation two years ago, I was presenting already the work done by us and MAN and ABB for the new system, 'cause we believe in the future. By doing that, we preserve more capacity than actually we needed. Now it's great because we have these people, capable people. I think the industry will lack people in my view. That's, we are very occupied now engineering and brownfield. It's also important to highlight these certain locations are busier than others. We do have capacity in some locations, such as, I guess I would say U.K., London and also Asia-Pacific. Of course Norway is too many busy in the brownfield.
We also have to look forward and even though this market has its fluctuation like any other market. I would say probably people is where we have to focus.
A second one. Obviously you had a very good unannounced order intake in Q1. Is that something you see continuing for the rest of the year as well? Was one or Q1 a one-off in that regards?
Yeah, I have to say that I hope so. What happens that we have a lot of frame agreements, and sometimes when we announce, you know, some FEED contracts, I keep repeating this because sometimes it's hard for people to understand that more and more clients are moving straight from FEED into execution. Sometimes I announce a smaller FEED, and some of the brownfield can be 50 million NOK, and then suddenly you have as a 500 million NOK order. We don't announce what we have announced already, because you said we got a FEED with an option for, for APC. Plus, there's also growth on contracts, it's very hard to predict sometimes. I hope that happens. If you look back, we always have some growth and always some call-offs in service contracts.
More on the high side.
Yeah, I think it's, I would say that probably this quarter was on the high side. On some areas. Yeah. We have repeated that before.
Thank you.
Okay. Any more questions in the? Yeah.
Jonas Strøm, credit analyst Swedbank, Kepler Cheuvreux. You have a bond maturity this fall, and I was thinking, could you say something about your considerations about refinancing that?
As you correctly state, we have a bond maturing in October, and we're looking into, you know, the right timing of, you know, whether to go to market with a new bond. Of course, we have the flexibility with an undrawn revolving credit facility, $5 billion worth, where we could use the opportunity to find the exact right timing to go to the debt market and raise another bond. Whether it would be a NOK bond or other alternatives, we haven't decided yet, but we keep all options open.
Thank you.
Thank you. Any more questions in this room? The online audience seems to have gotten an answer to all their questions. This is your chance. Okay.
Excellent.
I think we say thank you.
Thank you.
We have some time with.
Thank you.
one-on-one with the press.