Earnings Call: Q2 2021

Jul 29, 2021

So I guess we're ready to open this meeting. Welcome to DNO's 2nd quarter earnings call. My name is Houston Levos. I am the Communications Manager of DNO, and I will share some practical information. All participants in this meeting are muted by the organizer and will not be able to unmute themselves, chat or share their screens. We will start with a brief presentation of the Q2 2021 results by Executive Chairman, Bijan Rosovar, Armani and CFO, Hakan Sandburg, after which we will open up for questions. Managing Director, Bjorn Gohler Chief Operating Officers, Chris Spencer Exploration Director, Nicholas Whiteley Head of Group Accounting, Batum Hajim Mehdi and Investor Relations Manager, Goodman Hartzweig are also present on the call. If you are chosen by the organizer, You will be notified on your screen that you are allowed to unmute, after which you will have to remember to unmute yourself too. With that, I leave the stage to the Executive Chairman. Good afternoon to those of you in Europe. Good morning to those in the United States. We've timed this meeting to allow as many of our shareholders and analysts across several continents to participate As is possible under the circumstances, my colleagues and I are spread out across several countries, mostly in Norway, but In other locations as well. Our hope had been, and I'm sure yours as well, that pandemic conditions would have allowed us To do this physically rather than virtually, but here we are again with another virtual Meeting, I see we are close to 90 participants in the session. So thank you for joining us. As we've done always, both virtually in the last year and a half Longer since the pandemic and before that, through our regular meetings, Hawken and I will go Through the slides quickly that were released this morning and then have an opportunity to He and I, my other colleagues to give a bit more color, but also to try to respond to as many of your questions as we can. As you see from this cover of our presentation, we have a we're celebrating our 50th anniversary as an oil company, oil and gas company. We are Norway's oldest oil and gas And we have been in continuous operation for the last 50 years. It's quite a milestone and the one with which we are proud. And of course, those of us in the presentation today have only been Along for the ride in the last decade or 1.5 decades, and we've had many predecessors who have contributed to the History of the company, and we recognize their contributions to the DNO's operations and DNO's success over its history Understand to its longevity. Before I go into the slides, just a quick comment. The story of DNO's operations and results in the last year, 1.5 years is not Very different than that of the industry overall. The industry, of course, was hit by The pandemic, the collapse in demand, the collapse in oil prices and our first Response as an industry and D and O included was to protect our balance sheets, To cut costs, to cut dividends in many most instances and to scratch our heads a little bit about the headwinds we're facing, including the growing interest in and concern about climate change and what role the industry should play in addressing some of those challenges and what each company Can do strategically, tactically and otherwise. So we were engaged in some of the same actions and some of the same thought processes As our peers, largest, medium size across the oil and gas sector globally. With time, of course, conditions of the market have changed, demand picked up, OPEC Plus was able to stabilize, raise and stabilize prices, which has meant that we've been able to And then to begin to strengthen our balance sheet as DNO and again, much very similar story to that of the industry Overall, we expect this to continue. We were And our peers in Kurdistan as well as other companies operating in some of the developing countries were hit by non payment Problems building up arrears and Kurdistan are arrears In terms of several months of entitlement and override payments not having been made For the period in the latter part of 2019, 2020, built a very substantial area for DNO, which is Now being paid down, so that has a bit of a multiplier effect and that's our receipts from Kurdistan. Moving forward, we'll have a component and has had a component of arrears payments, which means we'll be the payments will be higher than What is what the underlying production numbers would suggest. And that's positive. The number is still large, but it's through payments over the last several payment cycles. We're now down to something just over $200,000,000 I think it's $214,000,000 in principal arrears, and we hope to continue to chip away at that in the coming months and perhaps Reach an accommodation with the government to accelerate those payments. And of course, that would be very welcome, and it would be Another means by which we will continue to strengthen our balance sheet and our results as well and Allow us to do more. The challenges of COVID, again, aren't over. The challenges posed to us as a company and as an industry involve the safety and security, but importantly, the health Of our teams that are on the ground, whether offshore or onshore, that takes up A lot of our efforts to make sure our people are safe and knock wood, we've been successful in Managing that process and while there occasionally there have been COVID cases, we've moved quickly to contain them and have not been had any major illnesses or deaths across the company, and that's Obviously, a great priority for us in terms of protection of our colleagues and our staff and our contractors. But the COVID challenges to supply chains overly continue. This has meant delays in some projects, higher costs in other projects, and we try to again Address those the best we can, but that overhang continues. And With the delta variant and perhaps other variants totally out of our control, we expect those challenges and we will expect We'll remain have to remain vigilant and diligent in managing the COVID related challenges for the foreseeable future. So that remains again a cloud over all of our heads, Not just in the oil and gas industry, but in our private lives and across so much of the global economy. Going to our operational highlights for 2021. Again, We've shown our production in Kurdistan and in North Sea since the Q1 of 2020. And Effectively, the numbers have held pretty steady. The lower darker green represents Kurdistan that's held pretty steady. North Sea has had some movements up and down, but really no surprises and no significant Changes to our production volumes, The gross Tawke license production has averaged just over 110,000 barrels a day And the Q2 is essentially flat down just tiny bit from Q1. And the net interest, DNO's net interest has been a robust 84, 85, 83,000 barrels a day of production, which is very substantial, of course, for a company of our size. Our North Sea assets contributed almost 10,000 barrels a day of oil equivalent Per day in the second quarter, that was down from just over 15,000 BOEPD in Q1, Much of that due to planned maintenance and infill drilling in Norway and in non operated fields. So we write those numbers up and down depending on the operators' decisions and actions with respect to maintenance And then other activities that on a quarterly basis may move the numbers around a bit. We expect that our Tawke license operated production will remain our guidance remains at about 110,000 barrels of oil a day in 2021 for the year. North Sea production, we expect will recover In the second half of the year, and we're giving a production guidance on a net to DNO basis of about 13,000 barrels of oil equivalent per day. Next slide, please. Of course, Haakon will go over the financial results in much more detail in his section, but I just want to touch on Couple of financial highlights, and I think those bar diagrams on the right This slide tell the story. In the pandemic year, our operating profit obviously was down, was negative, but we've now had 2 consecutive quarters of operating profits that have helped essentially Steady, it's in the $60,000,000 range. And so that's been obviously a Positive. We have reduced our bond debt. We're chipping away at our bond debt to reduce it by about $100,000,000 In Q2, following a partial redemption to bring bond debt down to $700,000,000 In terms of our receipts from Kurdistan, where both our entitlement production, our Override and payment towards our arrears totaled almost $160,000,000 in Q2. That led to an exit Cash balance of just over $450,000,000 at the end of Q2. Our net interest bearing debt is just shy of $400,000,000 which is the lowest level since the Q4 2018. And also another important figure is The $57,000,000 we received just this week from Kurdistan, it's an after Quarter payments, but it just speaks to the continuing strong Cash coming in from Kurdistan in the $55,000,000 $60,000,000 a month rate, Which again is a significant figure for a company of our size and continues to help improve our results and continue to build and strengthen our balance sheet. And again, the arrears figure now is after this last payment is $214,000,000 in terms of the principal amount All those, my readers. The next slide shows our Kurdistan operations. In Q2, as I indicated, The gross operated production level was 110,000 barrels a day, of which Peshkabir, the Peshkabir field in the license Represented 63,000 barrels of oil per day, slightly up from the Q1 and Tawke, Just over 47,000 barrels a day slightly from the Q1. We're actively drilling new wells at Peshkabir. We have 5 wells scheduled this year and that program is well underway, but we've also been doing workovers Other well interventions at existing wells in Peshkabir, which again have resulted in this Robust number and slightly improving number in terms of Peshkabir's contribution. On the Tawke side, there have been some delays in approvals of work programs. We're trying to work through those and to be able to get back into a drilling of new wells at Tawke, the Tawke field. But the lack of drilling of new wells has meant that Tawke production Has been trending downward given the natural field decline, Although we have arrested that somewhat through our Peshkabir gas to Tawke field gas reinjection A campaign, which is to be put into place probably 4 years ago, long before the current climate change Concerns and actions by other companies, and we did so because we don't like the flare, and we felt that the investment will also help Provide additional reservoir support, pressure support for Topgia has been in fact The case, but we've also been doing workovers and interventions at TAUCI. We'll be doing some sidetracking. So we've been able to do quite a bit at Tawke even in the absence of additional drilling of new wells, which we expect will pick up as soon as the approvals are in place and We'll see more activity at the Toppy field hopefully towards the end of the year and going into next year. Some of these delays and deferrals and government approvals or work program and budgets Has meant that we will be deferring around $50,000,000 net to DNO of 2021 spending into 2022. So our capital program and budget will go down by around 50,000,000 from what we had expected for 2021, but it's also meant that some production that we had hoped We'll be able to record this year will be deferred into 2022 as well. In the North Sea, I already referred to the reduction in our share of production from our Norcia assets. Notwithstanding that drop in production for during the summer, We are very actively drilling in the North Sea, including 2 appraisal wells on previous discoveries 3 exploration wells, the first of which has already been drilled and led to a 2021 discovery. So We are very active in the North Sea. And in addition to the appraisal and then the exploration wells, we've been drilling And have had additional development wells for Fenya and 6 infill wells at Ulla, Odar, Tom Barr and the Braga fields. And the BergNav discovery has The 2021, 2022 exploration and appraisal drilling in our North Sea core areas and more detail as to our interest in those wells and Our expected gross volumes and a sense as to What's unrisked of resources we are targeting Through this drilling program, those numbers are, again, they're unrisked resources, but they speak to our ambition and to Our review of the prospectivity of these permits and the targets of our wells. Again, my colleague Nicholas Whiteley is here. There are specific questions about the specific wells. We can try to address those for those of you who might Be interested in doing so. The final slide for this portion gives some information about the Brasa Development, which we had flagged previously, and we said we are trying to Meet the 2022 PDO submission target for ABRASA, and we are moving aggressively and robustly ahead with that. With our partners, we've made a concept, a development concept To tie this back to and use as a host the Equinor operated Alsabarga facilities, And we feel that's what is the lowest cost, fastest turnaround option And it will allow us to get the to meet the PDO submission targets of 2022 and get the field on production by the middle of the decade, and we're targeting initially 22,000 barrels of oil equivalent per day and the DNO interest in the process 50%, and we are also the operator. With that, I turn to Hakan and the financial discussion in more detail, please. Welcome. Good. Thank you, John, and hello, everybody. Welcome again to this earnings call. My task now is to give you a quick summary of the main Q2 financials. As normal, we start with these key figures. And as you can see, revenues increased now from $170,000,000 in Q1 to $184,000,000 for the 2nd quarter. This increase was, as you know, driven by stronger oil and gas prices, but we had a Partly offset then by reduced revenues because we had lower production in the North Sea and also we had the oil under lifting in Q2. If you look at revenues on a business unit level, Kurdistan revenues were thereby up by $18,000,000 To $141,000,000 in Q2, again, mainly on the higher oil prices. But for the North Sea business unit, the revenues were down by around just under $4,000,000 to NOK 43,000,000 in the quarter. That was primarily on the lower production and the only lift for this period. As Bijan has discussed, the lower production in the North Sea was mainly due to the planned shutdown for maintenance at the Maruk and Alber gas fields. And we are now happy to say to confirm that the North Sea production will recover in the second half of this year following this maintenance program. We show you here the netback, a metric we like to follow. This is an after tax cash flow before working capital changes. And the netback here this time for this quarter increased $153,000,000 and that was primarily due to good operational results again, but also Another additional $16,000,000 higher tax refunds than we had in Q1 this year. To the right, we see the operating profit. It was $61,000,000 a bit down from the previous That was mainly due to higher expense exploration and impairment charges. I will come back to that shortly. Next one, please. Here we show our P and L in more detail. And you see the Q2 numbers to the left on the slide. And here we see the increase in revenues from Q1 to Q2 that I have discussed. If we go further down on the P and L under cost of goods sold, the lifting costs in Kurdistan increased by $4,000,000 from various workovers and field work. We see that the movement in underlift is almost at the same level as we had in Q1, And we see that we have DD and A depreciation primarily reduced by CAD4 1,000,000 from the previous quarter. That reduction comes from lower North Sea production. And with that with those movements, we have a fairly stable cost of goods sold from Q1 into Q2. Going on further down on the cost side, expense exploration increased, as mentioned, in Q2. And that is primarily mainly due to purchase of seismic data. Sort of an investment, if you want, that we have expensed. So it's a positive as we see it. And we also have then impairment charges of $12,600,000 That is a revised cost estimate for the also required decommissioning. That is The background for the impairment we have taken this time. So as mentioned, Q2 profit Operating profit thereby amounted to close to $61,000,000 You may wonder why we have a higher net finance expense this time in this quarter, and that is mainly around the partial redemption of the NO2 bond That's to that, but also some effects from our estimate changes we have made on the payment of the KRG arrears. We also see that the tax income is increased now. That comes from higher exploration expenses and the tax effects of the impairment on the Osovard project. So all in, we delivered another Strong quarter with an increase in our net income to $56,700,000 As noted in the bullet points, we also now have a material North Sea underlift position of 1,100,000 barrels at the end of Q2. This will be realized or reversed if you want going forward, but The timing of that will depend on a quite dynamic lifting schedule for our various producing fields. They tend to move around and vary from quarter 2 quarter. But of course, we do expect this to be realized next half year and then maybe some will step into next year. Next one, please. No, sorry, go on back. I was a bit too quick. I wanted to mention year to date The P and L to the right on this slide. Just to be brief on that, we have basically recovered from the weak market conditions that we had last year. We have a $76,000,000 increase in revenues, Then that's provided by the sustained high production in Kurdistan and the higher oil and gas prices that we have seen so far this year. And we also have a year to date a significant reduction in our cost of goods sold that comes mostly from lower Estimated DD and A charges per barrel in Kurdistan this year and also reductions from the lower North Sea production. We have significantly reduced impairments and they contribute to a very substantial increase in our year to date operating profit to a solid level of SEK127,300,000. So after finance and tax, We are pleased to then now be able to show a year to date net profit of DKK 108,100,000 And that compares to the loss we had for the same period last year. So a big improvement and a big reversal now. Good. Move on, please. This is a look at our operational spend. It's something we'd like to discuss on a quarterly basis, The outlook for that and the movements. So as Tidjane mentioned, we have adjusted our guidance for the operational spend from $700,000,000 that we talked about for the last quarters to a level of $650,000,000 for the full year in 2021. And as noted, this is due to the $50,000,000 reduction of projected spend in Kurdistan And coming from the delays that we have seen in securing government approvals of our work programs and budgets. The revised operational spend level is now split between Kurdistan with $200,000,000 And the North Sea with the $450,000,000 and the North Sea number is shown before the North Sea Tax refunds, as you are aware of. You might notice that compared to previous guidance, there is some change in the projected And that will be between each category of the operational spend, but I would say that the reduced CapEx in Kurdistan It's the main item. As we can see on the quarterly spend graph to the right, the year to date operational spend is That $300,000,000 roughly, and then we have an additional spend of $350,000,000 then planned now for the second half of the year. So quite an active program continuing on into the second half. Moving on To the next and my favorite topic, the operational cash flow strengthened substantially in Q2 to a solid level of $160,000,000 Here, we had strong pre tax profit adjusted for the non cash items. And in addition, we had positive working capital changes in total of about $38,000,000 for this quarter. And the working capital change came primarily from increased trade and other payables for the North Sea business unit. In Q2, we have received 3 monthly payments from the KRG compared to the 2 monthly payments we received in Q1. So as you may recall, we had a buildup in receivables in Q1 and a negative working capital change in that quarter. So just to point out that certainly, these working capital movements or changes are also important behind the increased operational cash flow in Q2 on the Q1. Just looking at the graph here on the slide, we have also $31,000,000 of North Sea Tax refunds that add to our cash flow in Q2. And if you look at the spend items we have here, we have been able to Finance or fund the investments of $93,000,000 from cash flow and also finance from cash flow the various finance outflows Totaling $121,000,000 That includes the bond redemption of the $100,000,000 that we have mentioned. And all that has been done from cash flow with only a modest reduction in our substantial cash balances. So I think in my mind that fact that we have cash flow financed most of our activities and finance items in the second quarter is a key achievement. Not shown here, but if we summarize cash flow for the first half of this year, We are pleased to show an operational cash flow of $228,000,000 for the 1st 6 months. And we continue now to expect strong cash flow through this year, supported as before by higher production And the current total and gas prices. We do expect now a further $130,000,000 in North Sea tax refunds the second half of this year, which of course is a significant addition to the cash flows expected for the full year. And the next one and the final slide for our capital structure. As has been discussed, we are clearly making very good progress on strengthening our balance sheet Yes, we have retired bond debt last year of $160,000,000 followed up now as we have seen by another $100,000,000 bond redemption in Q2 and doing all that and still maintaining intact our solid cash balances. So on this basis, as you can see in the middle of the graph here, our net interest bearing debt has been reduced to $396,000,000 And with our bond maturities, we have 2 bond facilities outstanding. They are out maturities are out 2 to 3 years. So with this sort of net debt level seen in combination with our high production and strong cash flow generation. I think this debt structure is very manageable for DNO. Happy to note that we have also strengthened our equity ratio this year, as you can see on the right hand side here, and that comes through a much improved profits and thereby retain the earnings year to date. So we are now at the level of 34% on the equity ratio. To finish up, we are on a good track here. We have been able to further strengthen our financial position. And thereby, we see a good foundation, a good platform for future growth in the company. So I hope we're on time. Yes, it's not too bad. So I'll finish up there. I think we're now ready to go into a Q and A session. You want to hear about that, Usdan? Yes. We'll take questions. So please raise your hand as described with the virtual hand in the of your screen. I guess there is a question here from Karl Friedrich Jud Pedersen is one of the analysts following us on a regular basis. So we'll try to unmute you. And please remember to unmute yourself before I post on the question. Hi, Jens. Thank you for taking my question. The first question is, are there any what level of Production or how do you think about production looking into 2022 and beyond kind of capital allocation between The North Sea and Kurdistan into 2022, that's the first question. And the second question is Regarding your balance sheet as you are generating quite a lot of cash at the current in the current oil price environment, How are you thinking about buying back bonds and also dividends? Or alternatively, kind of aggressive growth, for example, through M and A. Let me respond to the first one Part of that and I'll ask Haakon to respond to the second one. In terms of giving guidance on production in 2022, I think it's a little early To do that, I referred to some of the delays we've had in getting our programs and budgets approved And mentioned that some of that production and spending will be deferred into 2022. I don't expect, certainly on the Kurdistan side, major surprises, Although, as you know, we also have pending approval of the Baeshiqa license, Which we had hoped to have brought on early production before the end of this year. And that's there There's been a delay in approvals for that project. The timing of those approvals will Govern when the contribution from Baeshiqa will come, and that's an important part of our growth story In Kurdistan, at Peshkabir, we will continue and there's No reason to think that our strategy with respect to Peshkabir development will change. The Tawke, of course, again, Once the Tawke budgets are is approved, we expect to see more activity at Tawke and an uptick in Tawke production. But Again, it's premature now to give guidance on that towards the end of the year. I expect we'll have a better picture. Hakan did mention and I alluded to the fact that we are doing other things at Tawke Besides drilling of new wells through well interventions and workovers, Those costs are typically categorized in the OpEx category rather than the CapEx category. So there has been some shuffling I'll spend in these different categories, but we both with the reinjection program and The other interventions, we've been able to hold Tawke to arrest, not fully arrest, but to significantly slow down the Natural field decline at Tawke, which in the past has been on the order of 15% to 20% a year. Our team has done a terrific job in slowing that down significantly through Well by well interventions and monitoring. So I expect once we start drilling additional wells, we'll We'll see a better recovery of top production, but again, it's premature to give you much guidance on that. On the North Sea, some of the again, our activity is focused on existing Fields, existing wells, infill drilling and so on and others are through exploration. The exploration, of course, cycle is much longer one. But give us an opportunity to come back to you a bit later this year with some Better guidance for next year. Haakon, on the bonds and debt and Well, on the bond side, as you know, we have been very active as a Bond issuer for many years. We have been proactively through the years Looking at managing our maturity profiles, and we've been often buying back your bonds in the market ahead of time and also doing refinancings well ahead of the maturities. So that's the fact that that's what we have done and managed, I think successfully for many years. So that will be one consideration to look at. So we have the DN02, But that is maturing only 2 years out. So we have some time to think about that and the 'three bond is in 3 years out. Happy to see that these bonds have traded up quite nicely now in the secondary markets. So the O2 is trading above the core price, 103,000,000 or so. And the 3 is trading even higher at 105,000,000. So Hopefully, that will speak for continued improvement in our coupon rate if we do more bond replacements going forward. So I think, yes, we as before, we are very actively following the bond market. So I won't be able to comment on any Commitment to do anything just now, but we do follow our strategy of actively being proactive in Looking at the opportunities to special maturities and buyback bonds. On the dividend side, we had a bit of a Stopping the dividends last year because of what happened with our industry in our company from an earnings perspective. But we went back to the AGM and our shareholders this year in June, was it May, and ask for another authorization split into 1 authorization for this coming half year, second half year of this year and one other authorization for dividend in the first half of next year. So we do have the structure in place. We tend to look at it period by period. And if we are in a good position and we are Satisfied with what we see about capital structure and our earnings outlook, cash flow outlook to follow-up on that dividend program. But it's sort of done on on a yearly basis now with our authorization from the AGM. So this is something I'm sure that the Board of We'll be considering through the second half of this year and the first half of next year given what we have in place. And the last part of the question was regarding potential M and A or That kind of growth trajectory, is that something that you are looking at pursuing? Or is the organic opportunity set within your company covering your Answer is yes. Okay. The next question comes from Dave Round. So please introduce yourself. Thanks. It's David Graum from Stifel. Just a clarification, please, if you don't mind. Did you say you don't expect to drill another well at Torquay until the end of 2021 at the earliest. And I wonder, is there potential for that to change and for Those wells to come back into the program if you did receive approval. And maybe you could just give us a bit of information on what Are you trying to get approval for here? The approval is for a certain remaining elements of our work program and budgets. As you may know, if you've been following developments in Kurdistan, there has been some changes in the Ministry of Natural is a new minister and new team. They've taken some time to look at their strategies, looking At the sector, looking at some of their priorities and in the process, they have held back Approvals of work programs and budgets for, as I understand it, for not just for DNO, but for a number of companies, They've been looking at strategies with respect to flaring. In fact, very recently, All the companies were informed that flaring in Kurdistan has to stop. This has, of course, consequences for companies in terms Spending in terms of their field development programs, it's less of an issue for DNO because again, we put into place ourselves Starting around 4 years ago, a Peshkabir field flaring reduction and gas project in Tawke. We've never had much gas flaring at Tawke, but we've had some at Peshkabir. So for us, so this is an easier target to meet quickly and without much additional capital expenditure or time, but there are other companies for whom this would be a substantial A change in how they approach our field development programs, budgets and spending. So there's a lot going on and this has meant Some programs, whether about spending or tendering in contracting, other things Have not been approved as rapidly as we have been proposing them. But once our programs are in elements of either still outstanding or approved, we'll hit the accelerator. We've always Been a fast mover and once we have an opportunity and have the green light, we'll hit that accelerator and we'll start. We know how to drill wells quickly and cheaply in Kurdistan and have programs in place for Even cheaper next generation wells to reduce the timing and the cost. So we're set to go. But again, it's been an issue in terms of government policy and bureaucracy and administrative structures But again, once those elements fall into place, we have a green light, both we and our partner long standing and Curtis on the copy license, General Energy, We move fast and we're prepared to do so. And just waiting for the green light, I'd like to turn from amber to green and then we'll put the accelerator in and proceed with drilling. Okay. And just any chance that green light could be before the end of the year? What sort of visibility do you have over that process at the moment? We are in regular contact with the ministry, but as are all the other companies operating in Kurdistan. So it's really a question we'll have to go back and scratch our heads and consider how they want to respond to the new requirements in terms of flaring Cessation or substantial reduction because that could be quite expensive. When DNO and Genel proposed to do the pech carrier Tawke reinjection project, we're looking at well over $100,000,000 of spending, and there was no external pressure on us to do so from anyone. We just thought it was the right thing to do both in terms of saving that gas And storing it at the Tawke for future generations to use it for future uses, but also getting more gas out of Tawke. So for us, It's an easier, I think the issues we have to be addressed and approved And with respect to the TAPI license are much simpler and much easier to address by the government to its approval and for our partnership, our joint venture to act on. So we're in constant contact with the ministry and the government. And hopefully, we will be able to address this because it's everyone's interest that we drill those wells and proceed with our full development program. Okay, great. Thank you very much. I believe we are nearing the end here, but so I'll give participants or Attendees are last chance of asking a question. If there is no one curious about anything else, then I think we will wrap it up shortly. Okay. It seems like we have made it all very clear and answered all questions. So with that, So I think we should just thank you for attending this video conference, and we look forward to the next quarter or we're already way into it. So next quarter's presentation. Okay. Bye then. Thank you. Bye