Earnings Call: Q1 2021

May 27, 2021

Ladies and gentlemen, please stand by. Good day, and welcome to the Ottofoe Drilling Q1 twenty twenty one Investor Call. At this time, I would like to turn the conference over to Seaman Deong, CEO. Please go ahead. Thank you, and welcome all of you to our conference call for the Q1 twenty one. I will cover the first part of the presentation, which I guess you all have seen. And Ottla Saber, the CFO, will take go through the last part. And as usual, we will conclude the presentation with a Q and A session. So please prepare any questions you want to raise. I'm going to forward the presentation and then for references, if I remember all the time, I'll you the page and you can follow the presentation going forward. So I'll go through the introduction, go through some key summaries for the Q1 twenty twenty one, go into the segment reporting a little later and for financial information, as I said, via outlook. If you take up to Page number four, the front page, we which gives the numbers. We have a revenue of $182,000,000 for the quarter. Cash position is $194,000,000 We have EBITDA number for $45,000,000 EBITDA. I think Aftel will go through the special circumstances around that number. I know that many of you have seen the reasons for exactly that number, but he will explain more in detail what's the background for that. We have still lowering the leverage ratio. Today, it's now $2,750,000,000 We have a $2,500,000,000 backlog for the backlog and equity ratio of 46%. And it's the same structure as we have had for some time now and I can say that all our assets, all the rigs are in full operation. If you turn over to the Q1 summary page at five, So bullet point by bullet point, there's more wells allocated to Deep Sea Atlantic. We have, as you know, this master frame agreement with Equinor over the last period. They have awarded us more than 15 wells, and we will show a little later that our string up to Johan Sverdrup number two are now closed. So we have full operations, and we'll go continue to Johan Sverdrup. That show shows that, first of all, we have very happy to work with with with Equinor here. And and and they have certainly shown that that what they have said, that the multi frame frame agreement, at least for us, works very, fine. We have been awarded work for Lundin, work for deep deep sea sea foranger. And, of course, also Equinor, we announced yesterday that we will we will now also bring this system over to Equinor operations later. And I commented more back to that when we when when we look look at the backlog stage. RTBP has exercised the second option for this new cup. And on top of that, there's another option for another year after the second option. That's for the fleet. And with the platform drilling, we were awarded a five year platform drilling contract with Taka in The UK. For us, that was extremely important because there are more platforms to operate. And on top of those platforms, provide all the well services we have with rentals, with international capacity and casing running. So and, of course, it's a lot of other type of modifications coming on top of top of that. So so so the add on sales for those installations are quite important to us. So so within the energy area, with platform drilling and and and also engineering are covered, there are quite a lot quite quite important contract for us. So we're happy for that. We have worked for quite some time with BP to work on an alliance type of cooperation on on the Clear platforms. There will be more than one. And and so we finally now have signed that alliance with with with BP and Baker. And of course, after we come back to that, we have firm finally got the firm bank commitments for 2021 for the debt maturities. So I have to say that I'm very pleased that we have followed our own ambition to get that refinancing in place before June, and that works fine for us. If you look at Page six, the only thing that really was not planned this this quarter was that we had an incident with Atlantic. We normally have over the last years, in plural, a very high utilization of the whole fleet and between 9098 and '90 '9 with the % operations. But with the with Atlantic, we have we have an incident where we lost some equipment in whole during January. January is always a demanding month regarding weather. So to do the fishing campaign to get the equipment back again took some time. So the the the the the the operation time here is is only 86%. That is also impacting the the numbers. Not not significantly, but, of course, for us, important and was not planned. That's the incident we we the rest of it is is is fine, and and we have also started up with Aberdeen for for Wintershall, direct from from from, from the campaign with BP in the rest of shipment. And Aberdeen has now been been been kind of make ready for the Norwegian sector, and we are up and running there with a with a good utilization. World Cup doing fine. It's now currently actually in the balance sheet with the with the as a service Equinor and has already proven that it works extremely well also over there. And the GT Yanta is also working fine with with with Bepstrin. So all in all, the the the operations are are satisfactory, of course, but for exceptions, so Atlantic. But I can assure you now Atlantic is back on track, we expect Atlantic to provide the good performance going forward. So again, now with the slide number seven, with the Atlantic now being completed with with more work and the the the whole blue dark blue is now until we have done Sagic. And after Sagic, there's an option. Actually, we also we we expect Equinor to run also the options. Then another, I guess, I don't really remember the numbers, but there are several wells after after the the the the the the regular operation. This is the one who is now currently on contact with Aker BP, and we expect now that the Celanian will will end the RTBP campaign and roll over to Lundin, where we expect now that Lundin will end up in, let's say, November, December. We have signed the first contract on the same month of Fed term agreement with Equinor on Stavanger. Again, we are quite happy to do that because I just want to say that now we have three single rigs Equinor, and Equinor has a huge scope of work to be done. And with all the green shifts, with all the, I would say, the modernization and the new way of working with an operator like or a client like Equinor, we are quite happy that we are actually in the front of all the new developments regarding technologies and way of operating and so forth to improve and improve performance. So for us, it's it's a quite strategic move to make them into the same kind of a bag now and develop the same the the the three operations according to the expectations we and the client have. So for us, it's a it's it's a great game. And there's a small white spot at the end of the year. This contract with with Equinor actually starts about, January to February, but we hope and believe that there will be potentially a work late this year to start earlier than planned. And as I said, Equinor has proven the capacity and the will to prioritize the rigs that put in front. And so we as in with reference to Atlantic and the way they have treated that one, we expect the same here and we have the same dialogue as as we have there. Deep seven billion will now continue with the with the with Wintershall and and rolls directly into Drydablik April Next year, which is gives gives us a good back backlog. New Compass, I said, has already got the option, plus another option, And Deep Sea Alti will, I guess, continuously work for for for Neptune. They have a single work, and they will need to run run one rig going forward. And to our knowledge, they're gonna prioritize DHTM tire, which performs quite well over there. So so for us, this is a strategic also move. Even though we don't own the rig, we do the the the management there. That gives us a significant good backlog, and we we see that, for example, with Stavanger, we believe that we will roll with the continuous optionality as we have seen with Atlantic. And I'll come a little back to the market outlook later. But I said we have said earlier, 2021 is a difficult year. 2022 is a very difficult year for the whole business. But we see quite much work to come 2023 and onwards. And so that's going to be a more active period, I guess. So it's important to have a fleet ready with the right clients. If you go to the platform drilling page eight, not too much to say there. We have a lot of capacity activity. All these installations are also supported by Welsh Services. As I said, now we have we have quite a lot of options. The the way these kind of options works is different from type type of floaters. So these are on platforms, production platforms, drilling platforms fixed, and, and the client has a tendency just to roll these kind of options. If you do well, you continue on the on the work. So in a way, a little simp simplicity said it's always to lose. If if we mess up things, then like you are a state to to to lose the job. But as long as things are going well and certainly that the portfolio we have and the way platform giving performs should not be any concern at all. We have a good backlog here with with a nice bunch of options. So so I think, that brings us to a to a well well well position. We have capacity to take on more platforms if that comes up. But as I said, we have already got some extra work for, for example, Tarka, and we look for for forward to to do more. Within web services, I mean, that's an area where we still see that, you know, this is an international very international business. We operate in more than 20 countries. We have 650 people in in in all these places. And, of course, these the the key within well services is a lot of logistics. Watches are quite okay. Could be better, of course, but they're quite okay. There are still some oversupply, and it's also quite difficult to to to to to do the logistics, both with people and equipment with the with the with the pandemic in the in the backyard. It's it's, to cross borders with quarantine requirements, and and, you know, you can just imagine you have all seen what hap happened in the world, and there are very different development of the pandemic in different parts of the world. So the resolution here will be that when the vaccine has done the job and we get back to some little more normal, if that can be said normal, we expect that these activities to to to to ramp up again. So we see, for example, in The Middle East to to transport people from India, which we use for in The Middle East, which is a big working group group there with the with the pandemic infection in India, of course, makes it difficult to move people, to do all, you know, the quarantine part, as I mentioned, is a is a is a fatigue on the on the on the mental fatigue to to people, and it is more complicated and go slower than we expected. So we don't lose any work, but work are postponed. That's the key there. But we still actually have I mean, to peers here, we are doing quite well, as I said said that. And we see that the market, is also coming up again, and and we have we are quite positive for the outlook in the future because remember that rail services serve both fixed floaters, onshore, shallow water, mid water, deepwater. So we are all over the spots in this outlook. Regarding order backlog, we have 2,500,000,000.0 backlog, including options. And this does not include any backlog from rail services or any from engineering. This is only module, module drilling units and platform drilling. We don't count backlog for the other business areas. But $2,500,000,000 backlog is a good position, and that was the basis for the refinancing. If we didn't have that backlog, we would have trouble. But the financial departments have done well, and we have actually taken the most important contracts over the last years, and that has been constantly we have taken them to the market market level, and we have we have introduced quite interesting and quite potential, incentive schemes in there. So if we look back and we look forward, we know what we're gonna earn. We know what we're gonna do kind of a look at both expenses. We don't have any any SPSs coming up the next two, three years. We know that we're going to build up a stronger cash position just based on this backlog. So I think order backlog is key to everything today, and order backlog is really the ticket to get okay financial agreements with a more and more demanding bank market after we come more back to that. On the market outlook on the Page number 11, Well, I would say still still there are COVID issues out there. We do not have any trouble with with cooling. I know that there are competitors and people within different business areas of the business areas moving people from from different countries into into Norway or other parts with quarantines, there's a quite significant challenge for the for the maritime industry in general. We don't have too many or very few actually that we've taken from from regarding cooling from from from abroad. We have the most of them staying here in Norway. And, the only thing that, as I said, we struggle with is actually within rail services. Then there's a different different picture, but not too bad either, but still a challenge. Module side, of course, within within the harsh environment, it's not that bad. Still, there are challenges because there are not too much work for the time being in 2122. But as I said, there are something like 35, 40 p new PDOs to be approved. So we expect that there will be a lot more activity in 2023 and onwards, maybe mid-twenty twenty three and onwards. And we see that both there will be a lot of smaller campaigns, well campaigns, but there will also be longer contracts in the regular way. I guess it will be well based contracts, but still there will be more more activity to do that. And the the the the most of the longer contracts is within Exmoor's portfolio, just to bear that in mind. That's why we're positioned for that for that market also. There will be, I guess, that in the general marketplace, there's a lot of consolidation. I mean, you probably know more than us. There's a within the, you know, the chapter eleven's proposals are are coming to an end, and we see already a quite significant consolidation activity in the market within, within typical players with a lot of drill ships, deep deepwater players, and jackup players. Not that much in in the harsh environment area because there's less there are fewer players and there are less another free activity or free free capacity, but there's still also interesting, things to to to to look at there. But there will be still, I guess, that the deepwater market will take some time to recover, but it will recover. And I think that with setup that is now coming up from the new from the companies emerging from the Chapter 11 Mist is now positioning for that market. Web services, as I said, there are still some oversupply. We still struggle with the COVID. But, if we can look one year ahead, I guess that we'll see a different picture, better picture. And also within the energy market, platform drilling technology, we see more activity on upgrades and modifications for the green shift, which entertains quite a lot of engineering capacity these days. There are also modifications coming up. Within platform building activities, we see that the market is we don't operate too much outside the North Sea, UK, Norway. But if you were in that market, there's quite a lot of activity coming up over the next years to come. So that's our view on the on the market, and, again, happy to take questions later. So, Oslo, if you can take us through the financial information. Thank you, Timur. I I will start with the group summary financials. And the group operating operating revenue was a hundred and 82,000,000 compared to 197,000,000 in q one twenty twenty. The group EBITDA was NOK 45,000,000 compared to NOK 82,000,000 in Q1 twenty twenty. The decrease in EBITDA is mainly due to the decrease in EBITDA in the module segment. All income in connection with the Deep Sea Stavanger operation for PUTON in South Africa, including payment for additional days and demobilization fee was recognized in 2020. Turning now to the full cost incurred in Q1 twenty twenty one related to the demobilization from South Africa was expensed in Q1 twenty twenty one. Deeps is the one of commenced operations for Arthur BP on April. If you have a look at the average pay EBITDA for q four twenty twenty and q one twenty twenty one, growing the whole of the South Africa operations, the average EBITDA for each of these quarters were 108,000,000, which we regard as a solid figure. The EBITDA margin was 25% for the Q1 twenty twenty one compared to 42% in the same period last year. If we then move over to Page 14, we start looking at the segment reporting. The first was the the one to figure for the the capital intensive module segment and the human capital intensive service segments. But if you look at in into the module financials, you can see that the operating revenue for quarter was $140,000,000 compared to $142,000,000 in the same period last year. The EBITDA was $37,000,000 compared to $17,000,000 in Q1 twenty twenty. The change is mainly, as explained, the decrease in EBITDA for the Cristovano of 28,000,000, reflecting the fact that the rig was in transit and between contracts during Q1 twenty twenty one. Based on that, the EBITDA margin was 32% compared to 49% in first quarter last year. If you then move over to Page 15 and look into the segment reporting for the Energy segment, we can see that the operating revenue was $47,000,000 compared to $36,000,000 in the same quarter last year. The increase is mainly explained by revenue from ConocoPhillips contract, which commenced in Q3 twenty twenty. The EBITDA was $2,000,000 compared to $3,000,000 in the same period last year. If you then move over to Page 16, which is the segment reporting for wealth services, we can see that the operating revenue was 27,000,000 compared to NOK 28,000,000 in Q1 twenty twenty. The EBITDA was NOK 6,000,000 compared to 9,000,000 in the same period last year. The EBITDA margin was down from 31% in the first quarter last year to 24 this year. Both Norway and Middle East has maintained a consistent level compared with last year. However, the results for the European countries were impacted by the COVID-nineteen pandemic. The EBITDA margin in Norway has remained at the same level as in the first quarter last year. With a scrub for Middle East and especially Europe due to delayed work and logistical challenges due to the COVID-nineteen pandemic. If we then move over to Page 17, which is elimination of corporate overhead and net financial items. On this slide, we have shown the bridge from the same EBIT of the segments to the group consolidated profit before tax by adjusting for elimination, corporate overhead and net financial items. And you can see that we end the quarter with a group profit before the year with loss of $11,000,000 If you then move to Page 18, which is the summary statement of financial position. The group gross interest bearing debt was 1,193,000,000.000 by March year. We had 194,000,000 in cash and cash equivalents at the same time. The gross and out of that, you can read that the net interest bearing debt is just below 1,000,000,000 at the March this year. The equity ratio is at 46% at March 2021. If you then move to Page 19, which is the summary statement of cash flow, we can see that in this quarter, the net cash from operation was $44,000,000 compared to $43,000,000 in the same period last year. The investment activities was $33,000,000 in the first quarter twenty twenty one. We repaid approximately $21,000,000 in bank debt in first quarter. And as mentioned, the cash position for March was 194,000,000 compared to $174,000,000 in first quarter last year. If you then move to the summary of the first quarter on Page 20, We can now see that we continue to build backlog and be a preferred partner in the harsh environment market. We have an attractive harsh environment assets and a healthy market outlook in that segment. We can move over to Anapi, who have been awarded a partner contract for platform drilling and maintenance services for Tawka in The UK and signed a strategic alliance agreement with BP in The UK for platform drilling activities. One services continued strong activity. All of the service markets being affected by less demand due to COVID-nineteen and the following oil price turbulence. If you look at the key financials by the end of the quarter, we have an earnings visibility to $2,500,000,000 order backlog. We have secured firm debt commitments for the 2021 debt maturities and has noted the first maturity in 2023. We will continue to deleverage the company. Net debt of less than $1,000,000,000 at the end of quarter, And we have what I would call a sound cash position by end of quarter. And this concludes our presentation. We will now open for Q and A session. So please, if you have any question, comments, we are available. You. We'll hear first from Lucas Bao with ABG. Thank you. Good afternoon, gentlemen. First, just quickly on the Q1, thought you might have mentioned that I didn't catch it. What would you say was the extra cost that was sort of associated with the Stellanger move from South Africa? Well, deep when Deep Sea Savannah demobilized from South Africa and the preparation for the next work, we had full operating cost at the unit for for the whole period. So so the operating cost for Deep Sea Survanna was running for the whole quarter. In in addition, we have the fuel cost, etcetera, which also came in into consideration. So, Stavanna was having full operating cost for the period. Yeah. Okay. So it's still OpEx. That's okay. But and and how much was the sort of a fuel cost that you had to pick up and and put it into the p and l? I I don't have the the exact figure for for for the fuel cost, but but, of course, if you include fuel if you include cooling of the vessel preparation for next work when we can back to Norway, I'm afraid we will go at the cost level of $170,000 1 hundred and 80 thousand dollars on a daily basis for that period. Okay. All right. I think just to add on there, Luca, know, we we have to take all the income we have with the with the South African job. We have the remote fee and then operational during the contract and a demo fee. So the demo fee was to was to cover all the cost that Arthur mentioned there. You know? But we have to take demo fee income in the last quarter in last year, but the all the costs came up in in in as we said then in in '21. So that's why the numbers in 2020 was quite high and equally lower here. That's the reason. Yes. No, I understand that. I mean, it's just that sort of there was a bit of a deviation on the cost side in the module, and I think what you sort of said about having a bit higher costs on the field that sort of explains it. So I'm good on that one. Okay. Good. And then secondly, I mean, the the refinancing, obviously, good to see good to see that, you know, sort of pull it off. But just interesting on on the Aberdeen, I mean, the debt that you are putting on that rig, 211,000,000 or so, that's roughly speaking what is the contracted EBITDA on the grid right now, which sort of means that the lenders are not willing to assign a lot of if I may residual value on the asset. And the question then is, do you think it's possible in today's market to finance such an asset without a contract? Yeah. My given and also that I don't think it's possible today to finance a drilling unit without the contract. It's really the cash flow the banks are looking for. And and the reason why we have now got the what I would call it quite good with financing is that we have been able to repay our debts according to schedule through this rough years, as you might call it in in this business. We have proven solid operations and and now have a solid contract backlog. And, of course, this is done by by relationship banks. It's it's Scandinavian banks that are supporting us in in in this period. For for as you know, the banking market is is is is quite hard to keep these days. But I think we have achieved. We are well, over the existing financing, we have GIAC and and Kixin involved in this this financing, and and we we have maintained the same margin and the same repayment schedule as we had previously. And on the on the sort of wealth services facility, I mean, you are sort of extending the debt by around two years. But in a bigger scheme of things, do you sort of think that that's a kind of business where that should be basically debt free? Or is that the hundred and 50,000,000 that you are putting on it, which is like five times its loss of monthly EBITDA an appropriate level in your view? No. We would like to share that we have been working to deleverage the company, both the the the mobile greeting units and and the service level over the last few years. Now we think we we are, as a group, coming down to a satisfactory level with with a with a leverage of of somewhere between two and and three. And we are also in in in this direction going below the the the leverage of two in not too long. So we think we we have an indeed know a debt level that that we can can handle, and it's also giving more financial flexibility than from where we came from a few years back in time with a higher debt level and a higher leverage. You know, that that dealing on the service side is more than on the web services because it's also including platform from billing and engineering. So when we put $1.50 as a debt in that area, some years ago, it was too high. We we all agree to that. But that has been paid down $40 per year. Now we have to $1.50 then, and we expect that, you know, typical earnings going forward. That's a gearing of three today. It's not that bad. And and and you also have to the benefit now from reduced repayment up to now, it's been $40,000,000 on a yearly basis. And from '22, it's $20,000,000 on a yearly basis. Mhmm. Yeah. Okay. Yeah. But okay. That makes sense. And then just finally, don't know. You see, my my main touched upon there is a lot of sort of going on in with people living consolidation. What has your view changed on on how it's time to do something? Where do you want to be five years from now, etcetera? You're still on the sideline watching it from a from a bird perspective? It hasn't changed. I mean, we we monitor what's what's post possible out there. And within within, of course, within within the global deep water market, it's a potentially huge a lot of things to do. We're not there. We're gonna try to focus on the harsh environment. And we we monitor and we are we are, of course, in dialogue with several that we could potentially work together with Andrew. So the the opinion hasn't changed with us. We just haven't found the right point yet, but we do have several things to talk about and discuss and and work with. That's fair. Okay. Thank you, guys. Moving to a question from Christopher Mollerloccan with Carnegie. Yes. Good afternoon. This is Christopher Mollorloccan in Carnegie. Could you please update us on the status of the loan towards the customer and your thinking going forward there? Could you please, I didn't catch the first of your part of your question. A customer, they're pressed. Yeah. Well, we have the What do we think Just to give a highlight. Yeah. We we have to do this preference shares now with with the customer, which is still running for a few more more years. I think it's 02/25. And and we have no other plans than keeping this running in in that that period. Okay. Thank you. It's a pleasure. In the release today, mentioned this incident on Atlantic. But since this was a January incident, wouldn't it have been better if you discussed this in your Q4 report, which was late February? Or if you could consider that in the future? It would have a huge impact, but it was already known when you reported fourth quarter. I mean, it's not significant. Not significant enough. It was a big hit. It was would have been different, but it's not a significant hit in the fourth And finally, compared to consensus in my numbers, you beat us both on revenues and costs, which both came in higher than assumed. And the thing you would highlight, which was a bit odd or one offs in Q1? Or was it as you had expected? Look, to Kurt, you can take that. Yes. Of course, on a group level, we are hedged. On our mobile drilling units. We have part of the income in in Norwegian kroner when we operate in Norway, and we we have the remaining in US dollars to cover the the financing. But, of course, when when when the US dollar changed, think in the first quarter last year, have have an US dollar level that that exceeded 9.5 to Norwegian kongers. And and this year, it was less than 8.5. So that's some 15% difference. So if if you look isolated on the top line or isolated on the cost, your cost had this effect. If you measure unit operating with, you know, which you're gonna cost base, the cost in US dollars increased by approximately $14,000 on a daily basis just due to the the exchange rate in that period. But if if you look at the EBITDA, we are quite neutral in this regard as it's a natural hedging by having income in the same currency as we have the cost level. Thank you. And this time, is no additional questions in the queue. We did get another couple of questions in the queue. We'll hear from Jan M with Gladwin Investments. Jan, your line is open. If you're muted, please unmute. Apologies, I was on mute. Thank you for that. I just had a question on the outlook for dividends. This has come up on a couple of calls recently, and I'm just curious to get your thoughts on whether that's changed in light of this quarter or indeed not? Or maybe to ask a quick follow-up on that is, does the refinancing affect that as well? Thank you. If if classic. Yes. Yeah. If you look at all the future debt repayment for 2223, that's approximately $50,000,000 lower on a yearly basis than we had a couple of years back in time. And we we paid debt in excess of $200,000,000 on a yearly basis. And the debt repayment for 2223 is at the level of approximately $156,000,000 on a yearly basis. Of course, we don't know the the income for the DSS to to come. But if if you look here at the it would be approximately the same level as it's been up to now. The average for the last few years has been in the $3.50 level approximately. It will be a room for paying a dividend. But, however, we have to look at what is the contract backlog, what is is the cost position. We are in the position now where all of the units have been clear as yes. We don't have any SPS coming up before 2024 and 2025. So so based on market development as expected, we will be agreeing for dividend. It is opening our loan agreements to pay a dividend of up to 50% of the previous year's net result. However, that has to be approved by the banks for case by case basis, and that is based on what I said, on on the the contract backlog, on the liquidity position, and what kind of cost is coming up for the coming year or two. Which is true. I just wanna add there, which is the key here is the backlog. And as you look forward, next we have a backlog more or into '24, '20 '5 now. And so we know we have a good view of what we're gonna provide as EBITDA and so forth. So if you look at the refinancing we did now, which is good in the market based on the current backlog we have, We have agreed with the banks that there's still quite significant potential for dividend as long as we provide and perform according to expectations. And that way, I see that some analysts have kind of a question that that is now gone. That's absolutely not right. We still have an ambition to pay dividend. Thank you. Now moving to a question from Frederic Steen with Clarkson Plateau Securities. Hey guys, Frederic here. Thanks for taking my question and congratulations on the refi here. I was this is kind of a broad question, but when I look at your fleet status here, you've done well for 2021 already. Effectively, everything is booked up and 2022 is not looking too bad either on the motor side. And of course, you need to concentrate on just running your day to day operations. But do you have any broader plans now that you, COVID, have potentially some left over time since you've contracted a lot of your units to develop your offshore ambitions? Or are you, at this point, also competing for for work much further out in time as well? If if you meant, did you think of the was it offshore? Do you mean within the module reach area? No. Yeah. Your your offshore potentially, also, your your offshore wind ambitions that you've briefly touched upon. Yeah. No. No. For ocean wind. K. So so you're you're thinking of the ocean ocean wind? Yeah. Wind activity. Yeah. Like, if you booked a lot of your capacity for for the motor rigs, are you going to look at something else? Or or I think you said a few quarters back that Odfjell might That's right. Be a different company in in year's time. We work we work with the with the the wind offshore wind capacity. We do that. I'm not, that's something we wanna kind of present somewhat later to be more kind of a comprehensive on the whole concept. We have progressed significantly over the last period and we work with clients to see what kind of assets and the solutions they can move into market. So yes, we are working with that. But as I also said that over the end game, over in our wind capacity or wind wind efforts, offshore wind efforts will not be a part of of the drilling as a drilling company. It doesn't belong there, but we use the same type of of, you know, the the synergies between, for example, module and offshore wind is significant regarding the maritime understanding and the ocean wind ocean understanding. So so, yes, we are working with with that. We have not been we are not deliberately not presented any details because we don't wanna kind of rush into a into a that everybody else talk talking and talking. We wanna do something more substantial. So so we can we we will come back to that, Frederic, somewhat later where where where we gonna where we gonna be more informed with you what we actually are doing. If you go to our web website on Filoshoping, you will find it there. I start to do some campaigns to to to explain to the market what what we actually are doing a little later this year. Okay? Okay, man. Yeah. No problem. We we also look at more we also actually look at more capacity within the module side and and all of you asked that, but but we do. And when we find the time line, the right concept, the right solution, the right integration, clearly want to do a move also to increase capacity. Yeah. And are you still I think you said earlier that, you you if you if you had more capacity, you could you could definitely employ that capacity. Is that still a correct statement? That's the correct statement and that type of activity comes not in '21, not in '22, but we could certainly make some interesting moves in '23 and onwards. So that's why we believe, as I said, the most important client in that package, you know who that is. All right. Thank you. Yes. Thank you. Looks like we have a follow-up question from Christopher Mollilaukan with Carnegie. Yes. Just a quick follow-up on Deepsi Stavanger. With regards to Slide seven in your package, would you say it's fair to assume base case there will be some time off between the Lundin and the Equinor contract? Or do you expect that it will basically roll over directly to Equinor? Of course, I might not be objective, but clearly, we believe it's going to be continuous operations. I've shown that before, it's going to happen again. With no additional questions in the queue, I will turn the call back over to your host for any additional or closing remarks. Okay, guys, all of you. Thank you for calling in, and I wish you a good day. And thanks for now. We call we talk next time. Thank you. Thank you. Have a Ladies and gentlemen, this will complete your conference for today. Thank you for your participation, and you may now disconnect.