Good morning. Welcome to Moreld's first quarter 2026 presentation. My name is Geir Austigard. I am the CEO of the Moreld Group. With me today, Trond Rosnes, the CFO, and not the least, Kevin Murphy, that's the CEO of Ocean Installer, that's gonna give us a little more deep dive into what Ocean Installer is all about. Let's go right onto it. I want to say a few words about what Moreld is for new listeners, viewers. Moreld has three main segments.
Ocean Installer is the biggest segment in terms of EBITDA contribution. Subsea Installation company, working internationally. Moreld Apply is a projects, maintenance, and modification company. For those that are very familiar, we have added projects to what they are doing because that is gonna be the most important area for Apply going forward.
Primarily a Norwegian continental shelf company. Global Maritime is a very international company doing marine offshore engineering. Let's have a little look at what Moreld has been doing over the last years this time. You can see we have had a significant growth. EBITDA growth is what you see on this slide. I think it's fair to say that Moreld is capable of doing around as a minimum NOK 600 million EBITDA and up to about NOK 1.2 perhaps in a very good year. That is activities that are based on almost entirely oil and gas, only very little outside of oil and gas. Let's dwell a little bit about oil and gas.
In today's situation, with the war in the Middle East and other developments, we see that energy and energy security is gonna be very important going forward. We are addressing customers, areas where our position is to secure, I say secure energy supply. We are contributing to that. We see that in the North Sea especially, we are targeting satellite field developments. There is gonna be a tremendous amount of satellite field hookups the coming years. That is an area that Moreld is very well-positioned. This time, three months ago, we had a quarterly presentation. I said that we will have a negative result in the first quarter. That has materialized. Yet we will maintain our future or this year's guiding at NOK 700 million-NOK 900 million.
You can easily understand that we are looking at some very strong quarters for the rest of the year. On top of that, we also see that we have a very strong bidding pipeline that goes well beyond this year, and that is a good and important feature for the future of the Moreld Group. Let's look a little bit more into the details. The revenue was NOK 1.4 billion, reflecting a temporary reduction in activity, and with a negative EBITDA of NOK 93 million. It is primarily driven by the fact that we have the two enabling vessels for Ocean Installer have been out of or have not had work.
They commenced work, started working at the end of the quarter one and has both of them, both vessels has a very strong backlog and have nearly none available days for the rest of the year. Therefore, we can say there is a very good outlook. The interest-bearing debt is low still, and Trond will go more into the details on that situation. What I also find very important is the backlog is increasing. It's mainly project-based, so shorter visibility. However, the good news is that it's at a higher margin potential. Our activities, as I said, that will rebound and margins from this quarter. I can say that now because we have key awards. We have international expansion and the combination gives a very strong outlook.
The EMOD/EPRO that we won with Equinor in the beginning of the year will now very soon see quite extensive bidding and we will definitely think we have a meaningful volume upside on those on those contracts that will come out. What has been secured is a large SURF project for by Eni in the Mediterranean Sea. Global Maritime has been awarded numerous projects and we have also an international expansion. We see that Brazil is an important market obviously in the future. That is not big news at all. That Ocean Installer has now set up an office there is absolutely a news, and we think that is something that's gonna be very good for us in the future and give us future growth.
We also look at other international expansion opportunities that we need to come back to at a later point. I also want to mention that our quarterly dividend has been increased. The Board has approved that going from NOK 0.42- NOK 0.50 per share per quarter. Some comments on Ocean Installer, I would be very short since Kevin is gonna talk more about it. I think the activities in, on the Eni subsea tieback award is a very important event for us. Kevin's gonna talk more about it, so I'm gonna jump the Ocean Installer for this time and say a little bit more about Moreld Apply.
Moreld Apply delivered more or less as expected, NOK 9 just short of NOK 1 billion revenue and NOK 50 million in the first quarter. There is a project named Eirin tie-back . You could read in the papers or in media this week that Equinor had gotten the Eirin field on stream on a record fast track. That project was entirely done by the Moreld Group in terms of subsea installation and topsides modification. Ocean Installer did the subsea installation and Moreld Apply did the topsides modifications. Very successful. It's the fastest tieback that has been executed by Equinor. That's their own words, we see this as a fantastic opportunity going forward then a little bit back to the energy securing.
This is an example of doing satellite field hookups, tiebacks that Equinor has indicated seven to per year for the next 10 years. We see a very interesting future on that exact type of work. I mentioned in the start that we are looking at becoming with Apply MMO project-focused company. We have certainly done a few things to get there this quarter. We have adjusted our staffing, reduced staff. We have changed the way we work to make us future ready to take more project on board. We have now transformed Apply to become a project type of entity rather than that it used to be a more V&M type of entity where you were sitting waiting for orders.
Now we are becoming more forward-leaning and going out actively to win orders and to deliver high quality project work. I'm gonna come back more on that in the next quarter, I can already say that the management team has been set. We will also have, which has nothing to do with this transition, the CEO of Moreld Apply, Karsten Gudmundset, quite a long time ago, has said he wanted to retire at the end of 2026, we are also in the market searching for his replacement. Global Maritime. This picture is a TetraSpar that has been producing electricity, of course, outside of Karmøy, western Norway. This Global Maritime has gotten a project to take this, dismantle it and take it to shore.
It's gonna stop operating, and I think that's a good indication of the capabilities of Global Maritime and the future of also participation in floating offshore wind. The company has a strong backlog, the strongest backlog we've ever had. Also in Global Maritime, we see much stronger results going forward. I will finish my part off with the backlog.
We have a contracted backlog that is now on a decent level, and I want you to remember that since we are more getting MMO project-oriented company, the backlogs of NOK 10 billion or NOK 15 billion that we had on long-term maintenance modification contracts will not be the case anymore. We will have a smaller backlog, but very healthy margins, and we think this is gonna serve us very, very well for the future. With that, Trond, over to you.
Thank you, Geir. I will continue with giving you an update on the financials for the first quarter of 2026. As Geir also mentioned, revenue ended at NOK 1.4 billion and adjusted EBITDA at NOK -93 million for the quarter, which is in line with what we communicated back in February. The results primarily reflect a temporary reduction in offshore activity and vessel utilization within Ocean Installer. Significant uptick in the activity and margins is expected from the second quarter with both key enabling vessels back in offshore operation and high project activity is expected in the quarters to come. Leverage ratio, as you can see, has increased to 0.6x .
If we look at the nominal net interest-bearing debt, that is sitting at NOK 335 million at the end of the quarter so quite flattish development compared to Q4. Last year the 12-month rolling EBITDA has decreased as a consequence of also this negative quarter. We do however expect that the leverage ratio will reduce by year-end and remain under 1x throughout 2026. In the first quarter, Ocean Installer reported revenues of NOK 270 million and EBITDA of NOK -137 million.
As I already mentioned, the negative result reflects a temporary period of low offshore activity in this quarter, which is historically the weakest quarter in the industry segment that Ocean Installer operates in. The North Sea Giant, one of the company's two key enabling assets, was in dry docking and also doing some maintenance during most of the first quarter. In addition, a weak spot market also contributed to a low vessel utilization, while preparatory and onshore activity remained high in the company.
Despite the limited offshore execution, activity levels remained high, with extensive engineering, procurement, fabrication, and project preparation across a broad portfolio, positioning multiple parallel offshore campaign for efficient executions as activity ramps up over the next quarter. The outlook for the remainder of 2026 is strong. With both vessels back in operation and offshore execution underway, activity levels are expected to increase materially going forward.
Turning over to Moreld Apply delivered revenues of NOK 934 million in the quarter, reflecting a lower overall activity level compared with the previous quarters. EBITDA for the quarter was NOK 50 million, with margins improving compared with Q4 last year, and increasing to above 5% this quarter. Results influenced by timing effects, related to cost elements and project progress, while improved execution towards the end of this quarter supported the positive margin development we have seen.
Operationally, the quarter was characterized by continued execution of several large and technically demanding projects across both onshore and offshore scopes. Progress was maintained on schedule-critical deliveries, where supplier related delays and technical clarifications required close management attention. The Eirin tie-bac k project progressed towards finalization during the quarter with remaining offshore and completion activities closely managed to support handover and a successful startup at the end of last week, actually.
The company has implemented a transition program, as Geir also mentioned, in response to changes in the project portfolio and the market outlook. Management attention remained on preserving critical competence and delivery capabilities while adapting capacity and organizational setup to expected future activity levels. Global Maritime delivered a negative result in the quarter, reflecting lower activity levels and revenue compared to both recent quarters and the same period last year.
Revenue for the quarter was NOK 175 million, and EBITDA was NOK -8 million compared with a positive result in Q1 last year. Performance was impacted by delayed project startups, reduced utilization of both internal and subcontractor resources across several business streams, and lower client activities in part of the portfolio.
Also the geopolitical situation in the Middle East also had a negative impact on Global Maritime in Q1. This was partly offset by more stable results outside the affected markets. Geir mentioned it also a key highlight during the quarter was the award of the TetraSpar demonstrator decommissioning contract representing a significant and strategically important marine operation projects for Global Maritime over the coming months. Turning over to the balance sheet and some comments on the net working capital. As we have talked about in earlier presentations, we operate with a capital-efficient model where the working capital on a normalized level is negative.
The main driver for the negative working capital is front-loaded milestone payments on larger projects, as well as a non-recourse factoring solutions. There is high variations in the working capital from quarter end to quarter end due to timing of invoicing and prepayments of prepayments from customers. On prepayments, we had NOK 93 million of prepayments at the end of the quarter, compared with NOK 70 million at the end of Q4 last year. In all, we have a positive development in our working capital this quarter. Turning over to the debt side, our gross interest-bearing debt include $130 million of senior secured notes that we issued in February last year.
That also includes lease liabilities, that is accounted for under IFRS 16. That is mainly these two key enabling assets, the two CSVs, but also some office leases that we have on the balance sheet, as a liability. Cash balance at the end of the quarter is down to NOK 933 million, down from close to NOK 1.1 billion in Q4 last year. Net interest bearing debt, as mentioned, sitting at NOK 335 million, and the leverage ratio then at around 0.6x . If we look at the cash flow bridge from Q4 last year to end of Q1 this year, as mentioned, we started off Q4 with a cash balance of close to NOK 1.1 billion.
The reported negative cash EBITDA of NOK 98 million, that includes NOK 5 million of one-offs on top of the negative NOK 93. We had a positive change in net working capital of NOK 98, which connects to some overhang of account receivables that was not paid in Q4, but that came in Q1 this year. Minor CapEx of NOK 14 million related to the ERP upgrade in Apply. We have paid six months of interest on the senior secured notes, and we also paid a dividend of NOK 75 million back in February.
Cash then sitting at NOK 933 million at the end of quarter, with around NOK 200 million of untapped credit facilities on top of that. Before I close off my part, on dividend, and we talked about our balance sheet, robust balance sheet and cash flow generation, so that is a good segue over to dividends. Let me first start with what we have delivered so far. With the dividend we paid in February of NOK 0.42 per share, we have paid out NOK 300 million of dividends over the past four quarters, which corresponds to an annualized yield of around 10%.
This reflects both the strengths of our cash generation, but also our commitment to shareholder returns. I would just also going to reiterate what I talked about in Q4, in the Q4 presentation. In 2025, we had a free cash to equity conversion of 65% of around 70%. That is basically what we're able to generate from our cash EBITDA, in cash to equity. When we exclude, or when we normalize working capital and we exclude non-recurring items. Going forward, we expect that cash to equity conversion to be in the range of 65%-70%.
Applying that range on our EBITDA guiding range of NOK 0.7 million-NOK 0.9 million gives you an idea of what we can expect in terms of free cash to equity in 2026. With that, and supported by a strong balance sheet and continued solid cash flow, we are now increasing the quarterly dividend to NOK 50 per share, payable now around the May 20th. That closes off my part. With that, I'll hand the floor over to Kevin. That will give a deep dive into Ocean Installer.
Thank you, Trond, and thanks for the opportunity to present Ocean Installer. When it comes to Ocean Installer, we're 15 years old this year. The company was founded back in 2011. We've weathered both downturns and been with a couple of upturns as well. We built a solid base now, a foundation that's scalable, and we're now competing on some of the largest offshore subsea projects in the world. On the left-hand side of the slide, you can see the market focus that we have. We've actually worked and have track record in all of these segments.
The one with the box around it, both SURF and moorings, is really where predominantly our focus is, our core business, and we're getting the majority of our revenues. SURF, this is basically installing the umbilicals, the risers and the flow lines, along with some structures, everything that's required to build out from the seabed to the surface of subsea projects. Mooring is the chains and anchors required for large FPSO projects.
We've had a lot of experience in this, particularly in recent years, both in Norway and abroad. We've worked in all of the major subsea basins around the world. On the right-hand side of the slide, you can see the key customers that we're working for. Predominantly in the North Sea, it's Equinor and Vår Energi, which are our stable customers, delivering large projects repeatedly.
Internationally, we're working for the likes of Eni and Total, and they're probably the customers that we see which have the largest portfolio going forward, relevant for Ocean Installer, and they're also inviting us to different regions of the world where they would like to see more competition. We've built the company up, stone for stone.
We started on sort of smaller projects. Been invited after we've delivered successfully there to larger projects and built and built and built in that way. With our asset strategy that I'll come back to later, we have a scalable business that we can bring in more spot tonnage when we need it, when we fill up our two enabling assets, and we can also, when needed, release assets.
Geographically, we started in Norway, we still have our main office and our headquarters in Stavanger on the west coast of Norway. We have large operational offices in Oslo and in Aberdeen. We also have a sales office in Dubai, and most recently in Q1 this year, we opened up our Brazil office. We've hired our first staff in Brazil. We're actively bidding on work, and I'm highly confident that we will secure some work within 2026 in the Brazil market.
You see the dark countries. These are the countries that we've worked in. You can see we have been around the world in all of the major basins. The majority of the repeat business we're getting is in the North Sea. In the Mediterranean, we see a lot of activities, and we'll have two projects there this year. We also see a lot of work in West Africa, and now of course, Brazil has always been one of the largest subsea basins.
We haven't been involved there until now, but we see that there's more and more work scopes which suit both our capabilities and our assets. We see particularly from the independents, a desire to bring in new competition into that market. To just go through some of the financials, and here we show the last five years for Ocean Installer. You can see that there's been a substantial uptick in both the revenue and the profitability of the company. If the graph went even further back to the left, you'd see another step up.
Really this started back in 2018 and 2019, where we won our first major greenfield project for Equinor, which was the Johan Castberg project. At the time, that was the largest subsea contract for Equinor in the world. That was followed up quickly with the Balder Future project for Vår Energi, which is their largest project to date.
That was a brownfield contract, but essentially had many of the sort of characteristics of a greenfield because we took the FPSO that was at one location, towed it in, cleaned up all of the seabed, reinstalled the FPSO at a new location with all of the subsea architecture, many of which we delivered on an EPCI basis. I have another slide on that later on.
We had a stable sort of development or top-line revenue up until 2023, you see the jump up to 2024. That's really after we had the breakthrough contracts in Norway, we were able to prove to the international clients that we were able to win these contracts, successfully deliver them. That allowed us to get pre-qualified internationally and then win those contracts. In 2024 and 2025, you really see the effect of that.
That's getting better utilization of our assets throughout the year, so not just the North Sea summer season, but also the international market in Q1 and Q4. The economies of scale, of course, of having more larger projects. We're able to work with our supply chain to reduce costs. Then particularly in 2024 and 2025, we had this very good utilization of both assets, where we had consistent work throughout Q1 to Q4. Really, that's where we wanna be.
This year we've had a quiet Q1, not helped by the fact that one of the vessels was unavailable for dry dock. Really by this global expansion that we had, we need to be able to pick up work in Q1 and Q4 internationally and combine that with the high level of activity that we see in the North Sea. EBITDA has improved throughout this period, particularly in the first years. We still had some legacy contracts from the last downturn.
You see that when we get to 2024 and 2025, this platform of Ocean Installer that we have built is able to deliver significant earnings in a sustainable way. I think maybe the best thing about our business model is the scalability, that when we see that there is more opportunity and we filled up the assets that we've taken long-term charters on, we can add in with spot tonnage. Here I've chosen three of the nearly 100 projects that we've delivered over the last 15 years.
The first one on the left is the largest project to date, that's well over $500 million, and that was Ocean Installer's share. This was a fully integrated SPS and SURF project, EPCI with Baker Hughes in a consortium. There's only a handful of companies in the entire world that can deliver these sorts of projects at this scale in an integrated fashion. This was Vår Energi's largest contract to date, went very successfully, delivered safely, and on the back of that, we won the alliance which we're now executing more work scopes for Vår Energi.
That project went over, I think, seven years in total. In the middle, you see quite a different sort of a project. This one was signed and then we're offshore within six months. The entire project was less than 12 years. Here we took 11 vessels from the spot market, so we didn't use either of the key enabling assets that we had. We were able to competitively go out, win projects, win, secure vessels, tailor that with our engineered solution and provide a competitive offer to Eni down in Congo, executed in Q4 and Q1, the perfect sort of project that we're looking for in the future.
The last one is the Girassol Life Extension project down in Angola. This was the largest project that we've done to date in Angola. We're gonna see more of these sorts of life extension projects in West Africa, particularly. Here we used our enabling assets down in Angola. We also partnered up with Oceaneering in a consortium for the in-country work and a lot of the diving work that we did down there. We had 90 people on the top side as well, organizing all of the top side operations.
Extremely complex project, delivered successfully ahead of schedule and a happy customer. Again, delivered in Angola with zero LTIs. Very hectic work scope as well. Back to our asset strategy. Here we've had an asset strategy that we've held now over the last seven years. We secure the two vessels that you see on the left-hand side, Normand Vision and North Sea Giant. These are key enabling assets, particularly for their characteristics of large deck, large crane.
They have a vertical lay tower in the middle, which is in short supply and does not trade on the spot market. These are assets that you need to control. These are typically the assets at which one of their characteristics opens up the projects for us. We control those assets until, yeah, essentially the end of the decade and beyond for the Normand Vision. Normand Vision we've had on charter since she was delivered back in 2014, and we were heavily involved in the design of that asset. It's tailor-made for Ocean Installer and the operations that we do.
Our goal each year is to fill up those assets and get the highest utilization on those assets. Once those assets are filled up, then we bring in additional tonnage on seasonal charters or on project charters. In any given year, historically, we've had between eight to 12 assets on charter during the year. The two enabling assets are, of course, 365, but then we can have anywhere from a seasonal charter down to a couple of weeks to suit project needs.
We've had this strategy both in periods of lower activity and periods of higher activity, and we've been able to get assets or hold of the assets that we require. We also see going forward that there is a lot of new assets in this I would say, a lot of new tonnage coming into this smaller asset market. We see up to 30 new builds which have been announced, which will come into the market. We believe it will be favorable to continue with the strategy that we have of using the spot market to secure assets to execute more work scopes.
To summarize a little bit the story of Ocean Installer and where we are now. We see that the macro and the competitive environment is improving and has been over the last couple of years. There's higher activity levels. The project pipeline for new tenders is very strong. We see that the supply side is quite constrained. There's only a handful of companies in the world competing on some of these large projects.
Often we see tenders where we have just one or two competitors, and we see that there's relatively high barriers to entry, that there isn't really new market entrants coming in. In fact, over the last 15 years where Ocean Installer has been operating, there's been quite a dramatic decrease in the number of competitors which are in the market. We also see that there's consolidation or plans for consolidation among the Tier 1 players, and we believe that that will open up more opportunities for an agile, nimble player like Ocean Installer.
We are not trying to copy the business model of the large competitors. We have our own business model. We want to focus on having project management and engineering in-house and being the best at that, and then having partnerships to unlock a lot of the other services that we require. We have a growing international footprint, so we're now consistently winning projects across Africa, the Mediterranean and internationally.
We expect that going forward that over 50% of our revenue will be coming from the international market. Importantly for us, our core home market of the North Sea has a favorable trend now going to marginal tie-backs, and that has really been the core business of how Ocean Installer started. These small tie-backs, we use flexible pipe structures, spools to unlock new reserves close to existing infrastructure, is very well suited to our business model. Our two assets are specifically built for those sorts of projects, and we see that we can be very competitive going forward with these with this new wave of marginal tie-backs.
Of course, with the addition of Ocean Installer into the Moreld Group, we also see a good opportunity to offer a top side and subsea solution that none of the competitors currently have. The expansion into Brazil, as I mentioned, is entering into the largest subsea market. We're very positive to the prospects in Brazil. We're really following the customers which have asked us to come there. We see that this can be a new brick in our in the Ocean Installer story.
If we can win the contracts that I expect that we'll win this year, I think we'll be in that market for a long time to come. When it comes to scaling of Ocean Installer, I think that's one of the most exciting things about this platform that we built, that we can scale upon it. We use partnerships to unlock scopes. If there's a rigid pipe, or a diving component or any other local content that we don't have, we have a history of seeking and signing partnerships and winning scopes with those partners. We've been successful with the likes of Baker Hughes, with Oceaneering.
We're also in an alliance with OneSubsea and Saipem. We have good track record of doing this, putting our expertise together with other companies' expertise and winning scopes for the clients. We will continue to focus on this asset-light business model and really selling our core strengths and finding partnerships to unlock projects. We have a capital light and flexible setup, which we believe is both scalable or also able to follow the cyclical nature of the subsea industry. With that said, we're very positive about the future. We're happy to receive any questions that come. Yeah.
Thank you very much, Kevin. That was very good to have a presentation of what really sits in Ocean Installer. Let me round off with a little bit about the outlook. As I said in the start, the energy markets are really looking for all sorts of energy at the moment. We think that the setup that we have with Ocean Installer and Apply, we are really ready for taking a good chunk of that market going forward. Yes, there is market uncertainty, geopolitical tensions of course, as you all are aware. But we are quite sure that with the capability that we have in the group, we can act quickly. We are small enough to turn around quickly, but big enough to take large projects.
We think that's a very, very strong business model going forward. Of course, the outlook is strong for the Norwegian Continental Shelf. On top of that, I'm very pleased that we can now see that we are building an international pipeline again. With what Kevin has just presented, this is a very strong opportunity that we have at Moreld going forward. The guidance and the dividend Trond has touched, I need to point out that the dividend that is posted is NOK 0.5 per share. That's important. With that, I thank you for the attention, we are opening up for questions.
Right. Any questions from the audience first? No. Could you say a little bit more about the rest of 2026, Geir? Do you expect Q1 to be the low point in terms of earnings? What do you see kind of for the next quarters and the late second part of the year?
Yeah, that's a very important question, of course. Definitely quarter one was a low point. I can say that 100% sure. We will see an increased activity in the next quarters. With that will also follow a stronger, of course earnings, and the EBITDA. We are with the guidance that we are now setting up, I think, it is clear that we are, we're gonna fill the gap of the negative result in the first quarter, and then we're gonna add on top of it, the guiding that we have. I think the guiding is the best answer to that question, really.
Can you say something about which projects that will be the key ones in 2026?
Yes. It's, it is projects from Ocean Installer that Kevin said it. There is, his pipeline is nearly 100% filled up for the rest of the year, and I can leave it for Kevin to answer a little bit about the projects that we see there. For Apply, we are, we are looking at further projects to be won, but we are also continuing working on The majority of the work for Apply this year will be the run out of the old existing frame agreements and that's keeping a quite a high level of activity for the rest of the year for Apply. Kevin, for Ocean Installer, you can answer that then.
Yeah. Some of the key projects that we have this year is for Equinor. We're working on the Troll field, which is a Gas to Europe project. It's a multi-year project. It's a full EPCI project, we've been building a lot of equipment for that. We're in the sort of the crux year. We're installing all of that equipment now. We're offshore at the moment. Things are going well, we have a high focus both from Equinor and the EU, I think, on getting that Gas to Europe. Apart from that, we have Balder VI happening for Vår Energi. It's the first of the alliance projects that we have. We're offshore now. There again, it's EPCI. We're delivering flexibles and umbilicals.
Things are going ahead of schedule on what we've started so far, high focus from Vår Energi. This is a fast turnaround project for Vår Energi. I would say it's cutting edge in terms of the speed of which it's happening, we're really happy to be involved in that one. We mentioned the Eni project that will happen in the Mediterranean, these are the sorts of projects that we like to have in the winter season. We're starting that offshore in Q3, it will go all the way into Q1. We also have one other project down in Egypt as well, which will go into the winter months of Q4. That's the selection.
Great. Thank you. Let's turn our eyes on the market outlook. How do you see the impact of the increased oil price at the moment? Do you expect any increase in CapEx from the E&Ps going forward?
We certainly see a positive momentum in activity and bidding activity, and I think that's the nearest we can answer that question. When we see that there are more projects to bid for, strong pipeline of bidding, that is something we absolutely see. There is no doubt that the oil and gas companies or operators are looking very hard now to find projects that can be relatively quickly undertaken.
Satellite field hookups, for example, is getting bigger and bigger. Also larger projects that has been on the shelf for some while is now starting to get looked at and matured, that's on a slightly longer term. We are definitely seeing a positive upswing in the activities going forward for oil and gas.
Thank you. Final question to Trond regarding the dividend. The dividend was increased even though the results for the quarter was negative. How do you see the company's capacity to support the current dividend level, and is there any room to increase it even further?
If we go back to what I talked about in terms of our ability to turn EBITDA into cash, I said we delivered 70% free cash to equity in 2025, we aim at around 65%-70% now in 2026. We can basically apply that one on the EBITDA as such. By doing that, there might be some future potential to increase it even from the current level. Where we are now, we are comfortable with increasing it to NOK 0.50 per share.
Thank you. With that, we can conclude the Q&A session.
Thank you.