Welcome to Aker Solutions Presentation of our Results for the First Quarter of 2014. I'm Bunny Nooryani, I'm the Chief Communications Officer at Aker Solutions. Øyvind Eriksen, our Executive Chairman, and Leif Borge, our Chief Financial Officer, are here with me today. They will go through the developments in the quarter and also later, the news of the major changes we are planning to make to Aker Solutions' company structure. Before we start, I'd like to point out as a safety precaution that the nearest emergency exit is out of the doors in this room, up the stairs and through the main entrance. I will let Øyvind take it from here.
Thank you, Bunny Nooryani, and welcome. Today's results will obviously be overshadowed by the announcement about the split of Aker Solutions. We would be remiss if we didn't explain the quarter results 1st. I would describe the 1st quarter 2014 as satisfactory, and a period in which our effort to further improve operations continued to pay off. The key financial numbers for the quarter were revenues rose to NOK 11.2 billion. EBITDA climbed to NOK 1.05 billion. The margin was 9.3%. We had an order intake of NOK 8.7 billion bringing the backlog to NOK 55.6 billion. Subsea benefited from both strong demand and further improvement in execution. The EBITDA margin grew to 11.5%, which is actually yet another record by that business area.
The Umbilicals business saw revenue surge 53% and the margin jumped to 8.2%, both were the best in more than two years for Umbilicals. This is a testament of our focus on turning around operations in the business area in general and the Norwegian part of the business in particular. Engineering profit margin improved to 8.7%, the highest since the end of 2012, even sales slid somewhat. We expect higher utilization of the engineering resources in the 2nd half of 2014 as the Johan Sverdrup project continues to ramp up its activities. Sales in Drilling Technologies rose 6.9% in the quarter from a year earlier. The profit margin was 9.1%, somewhat weaker than the previous year, weighed down by poor execution on some projects.
MMO continued to underperform, mainly due to reduced activity levels in Norway, which caused the margin to narrow to 6.2%. This was partly offset by increased demand in other MMO regions like Brunei, the UK and North America. Process Systems sales rose 23%, bolstered by strong demand in Norway, the Americas and the Asia Pacific. While the profit margin improved to 5%, it's weighed down by low capacity utilization and high tender costs. Finally, the Oilfield Services and Marine Assets business area, OMA, saw a rise in both revenue and margin in the quarter as we had 3 vessels on charter through the period. The performance could have been better though, as we have had more downtime on Skandi Aker in March and April due to technical issues. The order intake remained robust.
We secured NOK 8.7 billion in new orders during the course of the 1st quarter. Subsea was the largest intake at NOK 3.9 billion, followed by Drilling Technologies, which won NOK 1.9 billion in contracts. Umbilicals also secured contracts worth NOK 713 million in total. I'm happy to see that Aker Solutions continue to win contracts of great strategic importance, even though the markets have become tighter. Earlier this month, we announced two important and major Subsea contracts. The 1st was a contract worth NOK 14 billion from Total to provide Subsea production systems to the big Kaombo field in Angola. The 2nd was an order worth almost NOK 2 billion for Petrobras to supply subsea manifolds to the pre-salt fields in Brazil. The order intake in the 2nd quarter 2014 shouldn't be too bad.
As discussed before, oil companies are reducing spending to boost their cash flow and reduce costs. This is actually more an issue for the IOCs as the NOCs continue to invest and develop according to their original plans. We are experiencing a particular slowdown in the MMO market in Norway, actually more than we expected last time we met. Unfortunately, it's more difficult to predict the level of activity in the MMO segment going forward. We have already increased collaboration and resource sharing between MMO and other business areas, such as Subsea and Engineering, and we will continue that effort. So far this year, demand has been healthy for most of the other business areas of Aker Solutions. Our order backlog gives us confidence in the medium-term outlook. Major contract wins bolster the longer-term activity for Aker Solutions, and tender activity remains high.
Last week, we announced an alliance with Baker Hughes. The partnership with Baker will provide critical capabilities that will support our strategy to develop technologies to create subsea factory, which will help our customers to unlock vast values that comes from subsea fields. To round off, we have taken important steps to strengthen Aker Solutions in core markets. As I will explain later today, we plan to take even greater strides to fully realize the potential of this company. First, I'll leave the floor to Leif, who will walk you through the 1st quarter financials in more detail.
Thank you, Øyvind, and good morning to all of you. As Øyvind has already presented the revenues in the 1st quarter, NOK 11.2 billion is up 9% compared to last year. The EBITDA, NOK 1,047 million, gave a margin of 9.3%. This result includes a positive effect of NOK 32 million from hedges not qualifying for hedging accounting. While included in the financial items, we have a similar negative effect of NOK 95 million. Based on this, the net profit ended on NOK 306 billion or NOK 1.12 per share. In addition, we booked the profits from the two divestments of our intervention services and mooring and loading systems, a total profit of NOK 2.9 billion in the quarter.
The working capital level increased to NOK 3.9 billion from the low level at the end of last year. Consequently, the cash flow from operations ended on negative at NOK 800 million. We invested in total NOK 500 million in the quarter, while the net cash effect from the two mentioned divestments was NOK 5.5 billion. This brought the net debt level down to NOK 4.1 billion at the end of the quarter. Our gearing, defined as net debt to EBITDA, went thus down to the target level of 1 time. Total liquidity buffer increased to NOK 9.5 billion at the end of the quarter. Let's have a look at the business areas, starting with subsea, continues to deliver steady growth and gradual margin improvement.
Revenues grew 16% compared to last year, and a margin of 11.5% is roughly 1 percentage points higher than 1 year ago. The announced contracts with Total and Petrobras of, in total, NOK 16 billion were booked in the 2nd quarter and is consequently not included in order intake of NOK 3.9 billion in the quarter in Q1. In Subsea, revenues of NOK 607 million in the quarter, up 54% compared to last year. We now have high capacity utilization at both of the plants. EBITDA margin continued to increase 8.2%. The operations at the two plants are now stable. Drilling Technologies deliver revenues of NOK 2.5 billion, up 7% from last year.
The somewhat disappointing margin of 9.1% is impacted by lower margins on the projects. The backlog has been sold in a more competitive market, but the margins are also impacted by more challenging execution. The order intake of NOK 1.9 billion includes two new drilling packages for Jack-ups. Process Systems had revenues of NOK 535 million, margin improved to 5% in the quarter, but is still impacted by delayed order intake, causing tender costs and capacity costs in certain regions. Engineering had revenues just below NOK 1 billion. The EBITDA margin of 8.7% is slightly better than previous quarter, but is still impacted by capacity costs in London and Houston. This is expected to improve in the 2nd half of the year. MMO had revenues of NOK 2.8 billion. This is almost same level as last year.
We see now a decline in the activity level on Norwegian Continental Shelf, compensated by growth in the international markets, U.K., Brunei, and Canada. This reduces the capacity utilization in Norway, which can explain the somewhat disappointing margin of 6.2%. Revenues dropped from the 4th quarter in oil field service marine assets due to lower revenue utilization on Skandi Aker. A technical problem with the connector system has kept the vessel out of operation most of March, giving the 75% revenue uptime. In addition, we have spent money on repairing the problems, increasing the OpEx in the period. The problem has continued into the 2nd quarter, you should thus expect also a somewhat weak 2nd quarter for this business area. The other vessels had good revenue utilization in the quarter.
In March, the convertible loan in Ezra was repaid, reducing the asset value of the business area. Order intake. Backlog ending on NOK 56 billion at the end of the 1st quarter, will of course increase substantially in the 2nd quarter due to the announced subsea contracts of NOK 16 billion. Bunny , please.
Thank you. We will have a question and answer session at the very end of the press conference, but if you have any questions that are specifically related to the quarterly earnings, we would like to ask you to ask them now. Any questions? Nope. We will go on to the next page. Even? Oh, there was one question. Sorry.
It's Stephan Roesch with Pareto. Related to your 2 numbers, 2 questions, if I may. First of all, on your backlog scheduling overall, you exited 2013 with NOK 33 billion for 2014 execution. Now it's at NOK 23 billion. It seems like none of the awards in Q1 was for 2014 execution.
Mm-hmm.
Is it some scheduling effects? What kind of causes the delay to the profile?
Now it's NOK 23 billion for the remaining three quarters, and we booked NOK 11 billion in the revenues in the 1st quarter. While some of the order intake is for 2014. I mean, we are, we increased the order backlog during last year quite substantially. Based on that, you should expect a top-line growth for the company in 2014 compared to 2013.
The Q1 backlog, for example, between 2014 was down NOK 10 billion. You've recorded NOK 11 billion in sales, which means that, you know, very limited of the orders in the quarter was actually for 2014 execution.
I have to admit that's a little bit strange. I have to check those numbers because obviously some of the order intake now in the 1st quarter was for 2014.
Yeah. A 2nd point on Drilling Tech outlook, weak margins this quarter. What can you say about the next few quarters in Drilling Tech?
I think some of the challenges that we see now on execution, we have to also expect in the coming quarters. Should expect a somewhat weak margin in Drilling Technologies also in the coming quarters.
Thank you.
Were there any other questions? There's one gentleman in front here.
Hi, Turner Holm from RS Platou. One of your largest competitors in Subsea made some comments on the conference call the other day that suggested that the margins for the Kaombo project, which you booked in the 2nd quarter, may actually be even higher than where they are today. Of course, there's a gap there between they, where they are and where you are now. Just wonder if there's anything you can say about the profitability on the Kaombo project and just the phasing of that as well.
I'm amazed about how eager the competitors are to talk about margin in our project. They started long before the contract was awarded Aker Solutions. I, frankly speaking, I don't know where they have their sources, but I know the margin. We expect a healthy margin, not diluting the overall margin development in our solutions from Kaombo, both the greenfield development, but also keep in mind the life cycle opportunity for that big field. This is also, in commercial terms, a healthy and good project for Aker Solutions, and I'm somewhat frustrated by all the speculations and rumors spread by competitors.
Thank you for that. Just along the same lines, as your comments on DrillTech, just curious if you can give kind of a near-term outlook for 2014 on Subsea margins, at an all-time high in the 1st quarter. Clearly good progress. You know, you have a more and more scale, and should be executing on a higher price backlog. Like, what's the kind of 2014 outlook? Do we continue to tick up from here or what do you think?
Well we're not going to start guiding specifically, but what we have said for a long time is that long term, we have a target to improve the margins in Subsea. As a mix of the growth giving better capacity utilization, increasing the service content. That has been shown in the trend of the figures the last quarter. Yes, also going forward, we expect to see a positive trend in the margins. Of course, quarter by quarter, the margin may fluctuate.
You know, this is all about quality and execution. You should really notice the development in recent years in this part of Aker Solutions. We shouldn't take that for granted. Your question is actually a great introduction to the next topic we will discuss. That's partly about how we mobilize all the resources in this great company to safeguard flawless execution of the product portfolio in general and the great portfolio of and order backlog in subsea in particular.
Thank you. Then we have over there next. Yes.
Thank you. Marius Lorentzen from E24. You mentioned the problems you had with the Skandi Aker in the 1st quarter. Could you elaborate a little bit more on what kind of problems, if they've been resolved, and if you could say anything about the costs you've incurred, in the quarter?
I don't think I would like to go into the specifics on the problem other than saying that it's linked to the subsea workover system. We have been working on repairing it. Most likely, the vessel will be in operation quite soon. It's a problem that we know how to fix. Sometimes it takes some time to fix things down in Angola.
Okay. Were there any further questions? Doesn't seem to be anything more. In that case, I will let Øyvind take over from here.
Thank you, Bunny. As you obviously understand, this is a big, big day for our company. We're taking a major step in a transformation process that began 12 years ago with the merger between Kværner and Aker Maritime. This transformation process was further accelerated when I joined the company 5 years ago. Aker Solutions will split, and two great oil services companies will emerge. One company will be an integrated Subsea and Field Design business still named Aker Solutions, and it will consist of today's Umbilicals, Subsea, MMO, and engineering business areas. One will be an oil services investment company named Akastor, with a portfolio of investments in businesses like Drilling Technologies, Process Systems, Surface Products, Aker Oilfield Services, as well as business services, real estate, and financial assets.
The separation is expected to be completed by the end of September, with a separate listing of the two entities on the Oslo Stock Exchange. Aker ASA will remain the largest shareholder of each company as the existing shareholder structure is maintained. The split is inspired by what we have learned in the recent years. We have made good progress in a number of different areas, such as a strengthened position in our home market and a tremendous growth in other offshore regions like Brazil, Africa, and Asia-Pacific. A culture of customer drive built on trust, transparency, and reliability. A step change in R&D as part of a strategy to use technology as a key differentiator. Improved synergies between some, but not all business areas.
A strong team of international industry experts and a regionalized management model, and an annual shareholders return through share price increase and dividends of almost 30% the last 5 years. Our profit margin and return on capital are still lagging behind both peers and our own targets. The main purpose of the split is to halt that trend, to boost our return on capital, and create the most value for our shareholders and also our customers. The new Aker Solutions will have 2 external reporting segments, Subsea and Field Design. These will share the same customers and markets, and will continue to build on the strong position in the markets for Subsea and Field Design, both green and brown field. Operationally, we expect swifter realization of synergies, less organizational complexity, a relentless focus on quality and performance, high returns to our shareholders, lower costs, and high customer satisfaction.
To drive this operational improvement agenda, Luis Araujo has been recruited as CEO, and I will continue as chairman of the board. Akastor will be run as an oil services investment company with a unique portfolio of assets. It will aim to bring a diverse group of businesses with limited synergies to their full potential. Each Akastor business will be developed independently with greater strategic and transactional freedom. We will build on the success of Aker's private equity firm, Converto, and have appointed its managing partner, Frank Reite, as the new CEO of Akastor. Both Kjell Inge Røkke and I will be nominated as a member of the Akastor board, and we both look forward to working closely with Frank and his team as they develop the business.
The separation is a logical step in a streamlining process that began already in 2002 after the merger between the industry giants, Kværner and Aker Maritime. On that journey, we have completed numerous transactions with the aim of establishing more focused and transparent operating entities and divest non-core assets. The ultimate goal has been to transform the industrial conglomerate established 12 years ago into a world-class provider of high-end technologies, project management, and Field Design services. Now we're making the next big move. The split is based on an assessment of similarities and differences. Today, there are significant commercial and operational differences between the new Aker Solutions and the businesses in Akastor. One difference is customers. The businesses in the new Aker Solutions will all have oil companies as their main customer.
While the Akastor units will have more oil service-related clients, including drilling contractors and shipyards. Geographical footprint is another area. The new Aker Solutions has a strong regional centers, such as the Norwegian Continental Shelf, Brazil, and North America. While most Akastor businesses have a more global market focus. There are market drivers. The new Aker Solutions is in relatively stable markets driven by long-term growth in field developments. By contrast, the Akastor units, such as Drilling Technologies and Process Systems, have more cyclical markets. There are also technological differences. The businesses in the new Aker Solutions are linked through the subsea factory, while the Akastor businesses have a large focus on top side and onshore technologies. Capital intensity is yet another area. The Field Design segment in the new Aker Solutions, engineering and MMO are both capital-light businesses.
By contrast, Drilling Technologies and Aker Oilfield Services are fairly capital-intensive. Finally, the investment needs of each company. The new Aker Solutions operates in areas with high barriers to entry and has limited need for new large investments. By contrast, several Aker Solutions businesses are early in their development phase and will need more investment to grow. As you can see, there are fundamental differences between the new Aker Solutions and the Aker Solutions businesses. Our solution is to go from a rather sprawling portfolio of 7 business areas to 2 distinctively different companies that will be geared to pursue the right opportunities for each company to create value and maximize their potential. Let's take a closer look at each of the 2 new companies and start with the new Aker Solutions.
Because so far I've focused on the differences, but when it comes to the new Aker Solutions, it's the similarities that count. The new Aker Solutions is where we have placed the businesses that focus on the global energy industry's fastest-growing markets, Subsea production and Deepwater. As I just mentioned, these businesses are a good fit together because they share the same customers and regional markets. There are clear operational synergies. They are cyclically aligned, operating in the stable markets that are driven by long-term field developments, and they are linked technologically through the development of the Subsea factory, where we are at the forefront of global innovation. The new Aker Solutions will have a narrower scope of business with more operational, commercial, and strategic similarities than is the case today.
This will enable synergies to be achieved faster and at a lower cost, as a single set of customers will allow senior management to focus more on continuous operational improvement. Expertise will be leveraged across the company in important areas such as project management, construction management, sourcing and fabrication. Regional management and strategies will generate market and back-office synergies and further standardization and centralization of support functions will create scale benefits. It's easier, as you know, to share among equals than between strangers. We see a more focused and streamlined Aker Solutions as a smart move, not only for the businesses and our customers, but also for our investors. The company is positioned to capture growth in the Deepwater and Subsea market segments, as evidenced by the recent contract awards both in Angola and in Brazil.
We have a leading position in markets with high barriers to entry, such as the Norwegian continental shelf. Globally, we have made good progress, particularly in the Subsea segment, but also in the MMO and engineering business segments. The new Aker Solutions will have strong cash generation and be a relatively low capital business targeting high returns. Continued improvement will be the main objective for the management team focused on strategic growth and operational excellence with a minimal distraction from M&A activities. The company will focus on achieving stable and predictable returns and dividends in the range of 30%-50% of net profit annually. Lastly, while E&P companies today are somewhat restrained in their capital spending, the money they are spending is in our key markets. As a matter of strategy and risk management, it's also important to consider the business models.
In Subsea, the rule of thumb is that greenfield developments are lump sum as the life cycle services are reimbursable. In Field Design, the vast majority of the projects are reimbursable. If we allocate as a rough estimate our revenues in the 1st quarter, 2014 to these described business models, 44% of revenues were lump sum and 56% reimbursable. I've taken you through what we see as the key rationales for the new Aker Solutions. As we all know, a company is only as good as its employees, and it starts with top management. We have decided to promote Luis Araujo, our regional president in Brazil, to become the CEO of the new Aker Solutions.
Luis has shown excellent leadership skills since he joined the company in November 2011, and has done a great job in expanding our business in Brazil and overseeing the turnaround in our Subsea business there. In fact, by the end of this year, we expect to have tripled revenues in Brazil in 3 years only. Luis has worked in this industry for more than 30 years for companies like ABB Oil and Gas, FMC, and Wellstream. He's a native Portuguese speaker, and that's not a bad language to know in countries like Angola as well as Brazil. I've had a great working relationship with Luis since he joined the company, and I look forward to continue working closely with him when he takes over on July 1st, and I continue as Chairman of the Aker Solutions board.
We have also promoted Svein Oskar Stoknes as CFO. Svein currently has the financial team in our Subsea business, and he has been with Aker Solutions since 2007 in various positions. With a new CEO and CFO appointed, we will spend the next few weeks on fine-tuning the organizational setup in the new Aker Solutions. Let's move on to the 2nd new company, Akastor. As I laid out the rationale behind the move for the new Aker Solutions, it's important to emphasize that we see this split as benefiting the other parts of our company just as much. To quickly recap, Akastor will be an oil services investment company with a portfolio of businesses that will be developed independently of each other to maximize their respective potential.
The main businesses in the Akastor portfolio will be Drilling Technologies, Process Systems, Surface Project, Aker OilField Services, and business solutions. Akastor will also have investments in real estate and financial assets. The overarching reason for separating out these businesses is that they will do better if they are allowed to develop and grow independently. The Akastor businesses have significant operational, technological, and commercial differences that have prevented them from achieving synergies, both between the Akastor businesses as such, but also with the businesses of the new Aker Solutions. As a part of Akastor, they will have greater strategic and transactional freedom to fulfill their potential. While these units will operate under one structure, each business will have a significant independence to forge its own path and to focus marketing on key customers who are largely different from the clients of the new Aker Solutions.
The Akastor businesses won't have to compete for resources or to be force-fitted into processes that are not tailor-made to their respective needs. This is especially true for the drilling area, which represents about 60% of EBITDA of the new company. Its market is more global in nature, and going forward, it will be free to pursue strategic partnerships. Each of the companies under the Akastor umbrella will have their own management and board of directors with the relevant industry expertise. This is a golden opportunity for investors. Through Akastor, investors will be able to secure material exposure to a group of businesses with significant potential that can be difficult to value, as these units are relatively early in their growth cycle.
For instance, our Drilling Technologies business is number two in the market and is protected by high barriers to entry. Yet its installed base is relatively new and only just beginning to reveal its margin potential from life cycle services. Aker Oilfield Services, which operates the three vessels, Skandi Aker Wayfarer, and Skandi Santos, is also well-positioned today. We are seeing growing demand for the specialized services provided by these vessels. Key customers like Petrobras and Total are increasingly recognizing the value of those services. Surface Products is another area with potential. The business is strongly positioned in the Asia-Pacific, and is poised to break through in the Middle East. Process Systems product range is primarily topside and onshore focused.
It has a rare combination of expertise in gas, water, and oil processing that presents growth opportunities through and though with more low-margin EPC risk than what we will have in the business of the new Aker Solutions going forward. Business Solutions was set up more than 10 years ago to provide key support services to in-house clients. Today, it employs more than 1,500 people with specialist skills in areas such as payroll, recruitment, HR, accounting, IT, and more. We see this business as scalable for growth, with Aker Solutions, Kværner, and Jacobs as the initial customers. Akastor will also hold significant financial assets and real estate, accounting for about 20% of Akastor's balance sheets.
The new company offers opportunities for growth in key markets across the world, from West Africa to Saudi Arabia and to Southeast Asia. It represents about 35% of both EBITDA and revenues in today's Aker Solutions. Both Drilling Technologies and Aker Oilfield Services had solid margins and the rising revenues in our latest quarterly figures. All businesses present foundation for both organic and strategic growth going forward. We have managed to assemble a great team to steer the expansion of our newest company. Frank Reite will take on the role as CEO. He has extensive experience in managing both industrial as well as financial businesses, most recently as managing partner of Converto. Frank is also familiar with the Aker group, having worked in various positions within the sphere since 1995. Leif Borge is also an old-timer in our group.
Leif will become CFO of Akastor. Leif's deep knowledge of the portfolio companies will be invaluable in getting Akastor up and running. Speaking of Leif, let me quickly just go through how the new companies looked financially in the past 12 months based on pro forma figures. The new Aker Solutions had a revenue of NOK 29.2 billion, EBITDA of NOK 2.3 billion, an EBITDA margin of 8%, and more than 20,000 employees in 40 locations in 19 countries at the end of March. By comparison, Akastor had revenue of NOK 14.7 billion, EBITDA of NOK 1.5 billion, an EBITDA margin of 10%, and about 7,500 employees in 53 locations in 26 countries. Capital employed was NOK 9 billion for the new Aker Solutions and NOK 12 billion for Akastor as at the end of March.
We intend to separate Aker Solutions into two companies around the end of September. Both will be listed on the Oslo Stock Exchange. The separation will be structured as a demerger and spin-off of the businesses that will form the new Aker Solutions. Those owning one share at the time of the split will get one share in each of the two companies. The transaction is already supported by our largest shareholders, Aker Kværner Holding and Aker ASA. An extraordinary shareholders' meeting will be held in August to vote on the proposed separation. We will of course also publish a prospectus on the new Aker Solutions and hold investor presentations for both companies. As I said at the beginning of this presentation, this is a great day in the history of Aker Solutions. What pleases me most is that we are making these changes from a position of strength.
We are chasing a leading position in the fastest-growing areas of the oil and gas industry: subsea production and deepwater. We combine a portfolio of high-end technologies with unique capabilities in project management and field design. Our drilling business is the runner-up in its business segment, and we have top-of-the-line well intervention and serve vessels. That bodes well for both companies. The more integrated Aker Solutions will benefit from greater synergies to deliver long-term growth and more predictable returns to our shareholders. At the same time, each Akastor unit will benefit from greater strategic and transactional freedom to realize its full potential. I'm confident that the changes announced today will benefit our customers, our employees, and last but not least, our shareholders. I sincerely hope that you share that view. Thank you.
Thank you, Øyvind. Next. We will be very happy to take some questions now on the new organizational setup. The gentleman here in the front. Do we have a microphone? Over there.
Turner Holm, RS Platou. Øyvind, you highlighted the flexibility of the ownership structure of Akastor. I'm just curious what the initial approach to M&A will be from that company, and whether you still expect to complete a sale or some other kind of strategic development for the Aker Oilfield Services business.
It's important to notice the difference between the new Aker Solutions and Akastor. The new Aker Solutions is an integrated oil service provider, and we position Akastor as a new oil service investment company. In an investment company, we combine value creation by operation with value creation by M&A and other kind of transactions. M&A and transactions in general will be a part of the mandate of Akastor from day one. That doesn't mean necessarily that Akastor will start a divestment program, because the expectation from myself is that they will enhance the Akastor's portfolio investments and both buy, sell, merge, and pursue other transactional opportunities.
Nothing from you? Any further questions?
Marius Lorentzen from E24. I was wondering about the Baker Hughes cooperation or agreement that you announced a few weeks ago. Was that agreement part of creating the new Aker Solutions? How does it affect your cooperation with Baker Hughes? Were they informed about your process of splitting up Aker Solutions?
The subsea alliance is between the new Aker Solutions and Baker Hughes. The split doesn't affect at all that alliance. Rather to the contrary, the alliance with Baker Hughes was yet another step in the same direction.
Thank you. Do we have any further questions? I don't see anyone else with their hands up. I would like to say that we plan to have a conference call for investors at 5:00 P.M. Central European time today. The call-in details will be published on our website. Thank you for joining us today.
Thank you.