Good day. Welcome to the Odfjell Drilling Q1 2021 investor call. At this time, I would like to turn the conference over to Simen Lieungh, CEO. Please go ahead.
Thank you, welcome all of you to our conference call for the Q1 2021. I will cover the first part of the presentation, which I guess you all have seen, and Atle Sæbø, the CFO, will go through the last part. As usual, we will conclude the presentation with a Q&A session, so please prepare any questions you want to raise. I want to follow the presentation, and for references, if I remember on time, I'll give you the page, and you can follow the presentation going forward. I'll go through the introduction, go through some key summaries for the Q1 2021, go into the segment reporting a little later and for financial information, as I said, we are up there. If you take up the page number four, the front page, which gives the numbers. We have a revenue of $182 million for the quarter.
Cash position is $ 194 million. We have an EBITDA number for $45 million. I think Atle will go through the special circumstances around that number. I know that many of you have seen the reason for exactly that number. He will explain more in detail what the background is for that. We have seen a lowering in leverage ratio, which is now 2.75x. We have a $2.5 billion order backlog, and equity ratio of 46%. 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. Seeing bullet point by bullet point. There's more wells allocated to Deepsea Atlantic. We have, as you know, this multi-client agreement with Equinor over the last period, where they have awarded us more than 15 wells.
We will show a little later that our string up to Johan Sverdrup number II are now closed. We have full operations, and we will go continuing to Johan Sverdrup. That shows that, first of all, they're happy to work with Equinor here. They have certainly shown that what they have said, that the multi-client agreement, at least for us, works very fine. We have been awarded work for Lundin, for Deepsea Stavanger, and of course also Equinor. We announced yesterday that we will now also bring Deepsea Stavanger over to Equinor operations later. I come a little more back to that when we look at the backlog stage. Odfjell Drilling has exercised their second option for Deepsea Nordkapp, and on top of that, there's another option for another year after the second option. That's for the fleets.
With the platform drilling, we were awarded our largest platform drilling contract with TAQA in the U.K. For us, that was extremely important because there are more platforms to operate, and on top of those platforms, we provide all the well services we have with the rentals, with the intervention capacity and casing running. Of course, it's a lot of other type modifications coming on top of that. The add-on sales for those installations are quite important to us. In the energy area with platform drilling and also engineering are covered, they are quite important contract for us. We're happy for that. We have worked for quite some time with BP to work on an alliance type of cooperation on the Clair platforms. There will be more than one. We finally now have signed that alliance with BP and Baker.
Of course, Atle will come back to that. We have finally got the firm bank commitments for 2021 for the debt maturities. 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 number six. The only thing that really was not planned 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 98% and 99%, up to 100% operations. With Atlantic, we had an incident where we lost some equipment in hole during January. January is always a demanding month with wrong weather. To do the fishing campaign to get the equipment back again took some time.
The operation time here is only 86%, and that is also impacting the numbers. Not significantly, of course, for us, important and was not planned. That's the incident. The rest of it is fine, and we have also started up with the Aberdeen for Wintershall, direct from the campaign with BP in West of Shetland. The Aberdeen has now been make ready for the Norwegian sector, and we are up and running there with a good utilization. Nordkapp, doing fine, is now currently actually in the Barents Sea as a service with Equinor, and has already proven that it works extremely well also over there. The Deepsea Yantai is also working fine with Neptune. All in all, the operations are satisfactory, of course, but for exception of Atlantic.
I can assure you now, Atlantic is back on track, and we expect Atlantic to provide the good performance going forward. Again, now with the slide number seven, with the Atlantic now being completed with more work, and the whole dark blue is now until we have done SAGIP, and after SAGIP there's an option. Actually, we expect Equinor to run also the options. Another, I guess, I don't really remember the numbers, but there are several wells after the regular operation. Deepsea Stavanger is now currently on contract with Aker BP, and we expect now that Stavanger will end the Aker BP 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 agreement with Equinor on Stavanger.
Again, we are quite happy to do that because I just want to say that now we have three similar rigs with Equinor. Equinor has a huge scope of work to be done. With all the green shift, 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 performance. For us, it's a quite strategic move to make them into the same kind of a bag now and develop the three operations according to the expectations we and the client have. For us, it's a great game. There's a small white spot at the end of the year.
This contract with Equinor actually starts about January, February. We hope and believe that there will be potentially a work late this year to start earlier than planned. As I said, Equinor has proven the capacity and the will to prioritize the rigs they put in front. With reference to Atlantic and the way they have treated that one, we expect the same here, and we have the same dialogue as we have there. Deepsea Aberdeen will now continue with Wintershall and rolls directly into Breidablikk April next year, which gives us a good backlog. Nordkapp, as I said, has already got the option, just another option. Deepsea Yantai will, I guess, continuously work for Neptune. They have a similar work, and they will need to run one rig going forward.
To our knowledge, they're going to prioritize Deepsea Yantai, which performs quite well over there. For us, this is a strategic also move. Even though we don't own the rig, we do the management there. That gives us a significant good backlog, and we see that, for example, with Stavanger, we believe that we will roll with the continuous optionality as we have seen with Atlantic. I'll come a little back to the market outlook later, but as I said, we have said earlier, 2021 is a difficult year. 2022 is a very difficult year for the whole business. We see quite much work to come 2023 onwards. That's going to be a more active period, I guess. It's important to have a fleet ready with the right clients.
We go to the platform drilling page on eight, not too much to say there. We have a lot of capacity, activity. All these installations are also supported by well services. As I said, now we have quite a lot of options. The way these kind of options works is different from type of floater. These are on platforms, production platforms, drilling platforms, fixed, and the client has a tendency just to roll these kind of options. If you do well, you continue on the work. It's, in a way, really simplicity said, is our belief. If we mess up things, you are at stake to lose the job. As long as things are going well, and certainly the portfolio we have and the way platform drilling performs should not be any concern at all.
We have a good backlog here with a nice bunch of options. I think that brings us to a well position. We have capacity to take on more platforms if that comes up. As I said, we have already got some extra work, for example, TAQA, and we look forward to do more. Within well services, that's an area where we still see that this is a very international business. We operate in more than 20 countries. We have 650 people in all these places. Of course, the key within well services is a lot to do with logistics. Margins 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 do the logistics, both with people and equipment, with the pandemic in the back end.
To cross borders with quarantine requirements and you can just imagine, we have all seen what happened in the world, and there are very different development of the pandemic in different parts of the world. 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 ramp up again. We see, for example, in the Middle East to transport people from India, which we use in the Middle East, which is a big working group there with the pandemic effect in India, of course, makes it difficult to move people, to do all the quarantine part, as I mentioned, is a fatigue on the mental fatigue to people. It's more complicated and goes slower than we expected.
We don't lose any work. Work are postponed. That's the key there. We still actually have, compared to peers here, we are doing quite well, I would say that. We see that the market there is also coming up again, and we are quite positive for the outlook in the future because remember that well services serve both the fixed floaters onshore, shallow water, mid water, deep water. We are all over the spots in this outlook. Regarding the backlog, we have $ 2.5 billion backlog, including options, and this does not include any backlog from well services or any from engineering. This is only for MODU drilling units and platform drilling. We don't count backlog for the other business areas, but $ 2.5 billion backlog is a good position. That was the basis for the refinancing.
If we didn't have that backlog, we would have trouble. The financial department has done well, and we have actually taken the most important contract over the last years, and that has been constantly, we have taken them to the market level, and we have introduced quite interesting and quite potential incentive schemes in there. If we look back and we look forward, we know what we're going to earn, we know what we're going to look at both expenses. We don't have 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. I think the 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.
I have to come more back to that. On the market outlook on page 11, well, I would say still there are COVID-19 issues out there. We do not have any trouble with COVID-19. I know that there are competitors and people within different other business areas moving people from different countries into Norway or other parts with quarantine issues. That's a quite significant challenge for the maritime industry in general. We don't have too many or very few actually, that we've taken regarding COVID-19 from abroad. We have the most of them staying here in Norway. The only thing that, as I said, we struggle with is actually within well services. There's a different picture, but not too bad either, but still a challenge. MODU side, of course, 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 2021, 2022. As I said, there are something like 35, 40 new PDOs to be approved. We expect that there will be a lot more activity in 2023 and onwards, maybe mid-2023 and onwards. 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 activity to be done. The most of the longer contracts is within Equinor's portfolio, just to bear that in mind. That's why we position for that market also. I guess that in the general marketplace, there's a lot of consolidation. You probably know more than us.
There's within the Chapter 11 processes are coming to an end, we see already a quite significant consolidation activity in the market within typical players with a lot of drill ships, deep water players, and jackup players. Not that much in the harsh environment area because there are fewer players and there are less free capacity, there's still also interesting things to look at there. It will be still, I guess, that the deepwater market will take some time to recover, it will recover. I think that with the setup that is now coming up from the companies emerging from the Chapter 11 mist is now positioning for that market. As I said, there are still some oversupply. We're still struggling with the COVID, if we can look one year ahead, I guess that we'll see a different picture, better picture.
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. We see also modifications coming up and within platform building activities, we see that the market is. We don't operate too much outside the North Sea and U.K., Norway. If you were in that market, there's quite a lot of activity coming up over the next years to come. That's the review on the market. I'm happy to take questions later. Atle if you can take us through the financial information.
Thank you, Simen. I will start with the group summary financials. The group operating revenue was $182 million compared to $197 million in Q1 2020. The group EBITDA was $45 million compared to $82 million in Q1 2020. The decrease in EBITDA is mainly due to the decrease in EBITDA in the module segment. Overall income in connection with the Deepsea Stavanger operations for Total in South Africa, including payment for additional days and demobilization fee, was recognized in 2020. Please note that all costs incurred in Q1 2021 related to the demobilization from South Africa was expensed in Q1 2021. Deepsea Stavanger commenced operation for Aker BP on April 10th this year.
If you have a look at the average EBITDA for Q4 2020 and Q1 2021 covering the whole of the South Africa operations, the average EBITDA for each of these quarters were $108 million, which we regard as a solid figure. The EBITDA margin was 25% for the Q1 2021 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 underlying figures for the capital-intensive MODU segment and the human capital-intensive service segments. If we look at the MODU financials, you can see that the operating revenue for the quarter was $140 million compared to $142 million in the same period last year. The EBITDA was $37 million compared to $17 million in Q1 2020.
The change is mainly as explained, the decrease in EBITDA for Deepsea Stavanger of $28 million, reflecting the fact that the rig was in transit and between contracts during Q1 2021. Based on that, the EBITDA margin was 32% compared to 49% in first quarter last year. 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 million compared to $36 million in the same quarter last year. The increase is mainly explained by revenue from ConocoPhillips contract, which commenced in Q3 2020. The EBITDA was $2 million compared to $3 million in the same period last year. You then move over to page 16, which is the segment reporting for Well Services, we can see that the operating revenue was $27 million compared to $28 million in Q1 2020.
The EBITDA was $6 million compared to $9 million 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-19 pandemic. The EBITDA margin in Norway has remained at a similar level as in the first quarter last year, with a drop for Middle East and especially Europe due to delayed work and logistical challenges due to the COVID-19 pandemic. If you move over to page 17, is the elimination corporate overhead and net financial items. On this slide, we have shown the bridge from the segment EBIT of the segments to the group consolidated profit before tax by adjusting for elimination corporate overhead and net financial items.
You can see that we end the quarter with a group profit before years with loss of $11 million. You move to page 18, which is the summary statement of financial position. The group gross interest-bearing debt was $1.193 billion by end of March this year. We had $194 million in cash and cash equivalents at the same time. Out of that, you can read that the net interest-bearing debt is just below $1 billion at the end of March this year. The equity ratio is at 46% at March 2021. You 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 million, compared to $43 million in the same period last year. The investing activities was $33 million in the first quarter 2021.
We paid approximately $21 million in bank debt in first quarter. As mentioned, the cash position by end of March was $194 million, compared to $174 million in first quarter last year. If you then move to the summary of the first quarter on page 20, we can 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. If you move over to energy, we have been awarded a five-year contract for platform drilling and maintenance services for TAQA in the U.K., and signed a strategic alliance agreement with BP in the U.K. for platform drilling activities. Well services continued strong activity. All of the service markets being affected by less demand due to COVID-19 and the following oil price turbulence.
If you look at the key financials by the end of the quarter, we had an earnings visibility of $2.5 billion ordered backlog. We have secured firm debt commitments for the 2021 debt maturities and has now the first maturity in 2023. We continue to deleverage the company. Net debt of less than $1 billion at the end of the quarter. We have what I would call a sound cash position by end of the quarter. This concludes our presentation. We will now open for Q&A session. Please, if you have any questions, comments, we are available.
Ladies and gentlemen, if you would like to ask a question, please press star one on your telephone keypad. Just keep in mind, if you are using your speakerphone, please make sure your mute function is released to allow your signal to reach our equipment. Once again, star one for questions. We will pause for a moment to allow everyone an opportunity to signal. We will hear first from Lukas Daul with ABG.
Thank you. Good afternoon, gentlemen. First, just quickly on the Q1. Atle, you might have mentioned it, I didn't catch it. What would you say was the extra cost that was sort of associated with the Stavanger move from South Africa?
Well, when Deepsea Stavanger demobilized from South Africa and in preparation for the next work, we had full operating costs at the unit for the whole period. The operating cost for Deepsea Stavanger was running for the whole quarter. In addition, we had the fuel cost, et cetera, which also came into consideration. Stavanger was having full operating costs for the period.
Yeah. Okay. Full OpEx, that's okay. How much was the sort of fuel cost that you had to pick up and put into the P&L?
I don't have the exact figure for the fuel cost. There's of course, if you include fuel, if you include crewing of the vessel preparation for next work when it came back to Norway, I'm afraid we were at a cost level of $170,000-$180,000 on a daily basis for that period.
Okay. All right.
I think, just to add on there, Lukas, we had to take all the income we had with the South African job. We had the mob fee and then operational during the contract and a demob fee. The demob fee was to cover all the costs that Atle mentioned there. We had to take demob fee income in the last quarter in last year. All the costs came up in, as we said then, in 2021. That's why the numbers in 2020 was quite high and then equally lower here. That's the reason.
Yeah. No, I understand that. It's just that sort of, there was a bit of a deviation on the cost side in the MODU, and I think, what you sort of said about having a bit higher costs on the field, that sort of explains it. I'm good on that one.
Okay, good.
Secondly, the refinancing, obviously, good to see that you pulled it off. Just interesting on the Aberdeen, the debt that you are putting on that rig, NOK 211 million or so. That's roughly speaking, what is the contracted EBITA on that rig right now, which sort of means that the lenders are not willing to assign a lot of, if any, residual value on the asset. The question then is, do you think it's possible in today's market to finance such an asset without a contract?
My given answer is that I don't think it's possible today to finance a drilling unit without a contract. It's really the cash flow that the banks are looking for. The reason why we have now got what I would call a quite good financing is that we have been able to repay our debts according to schedule through these rough years, as you might call it, in this business. We have proven solid operations and have a solid contract backlog. Of course, this is done by relationship banks. It's Scandinavian banks that are supporting us in this period. As you know, the banking market is quite hard these days. I think we are well over the existing financing.
We have geared and kept in line with this financing, and we have maintained the same margin and the same repayment schedule as we had previously.
On the sort of well services facility, you are sort of extending the debt by around two years. In a bigger scheme of things, do you sort of think now that's a kind of business where that should be basically debt-free, or is that the NOK 150 million that you are putting on it, which is like 5x its monthly EBITDA, an appropriate level in your view?
Well, like you said, we have been working to deleverage the company, both the mobile drilling units and the service level over the last three years. We think we are, as a group, coming down to a satisfactory level with a leverage of somewhere between 2x and 3x. We are also in this deleveraging going below the leverage of two in not too long. We think we have indeed now a debt level that we can handle, and it's also giving more financial flexibility than from where we came from two years back in time with a higher debt level and a higher leverage. The drilling on the service side is more than on the well services because it's also including platform performing and engineering. When we put NOK 150 as a debt in that area, some years ago, it was too high. I agree with that.
That has been paid down NOK 40 million per year. We are at NOK 150 million, we expect that typical earnings going forward are giving us NOK 3 million today. It's not that bad. We also have the benefit now from reduced repayment. Up to now, it's been NOK 40 million on a yearly basis, from 2022, it's NOK 20 million on a yearly basis.
Yeah. Okay. That makes sense. Just finally, you touched upon there's a lot of sort of going on with people leaving Chapter 11 and consolidation. Has your view changed on now it's time to do something where you want to be five years from now, et cetera? You're still on the sideline watching it from a bird perspective.
It hasn't changed. We monitor what's possible out there. Of course, within the global Deepsea market, it's a potentially huge lot of things to do. We're not there. We're going to try to focus on the harsh environment. We monitor, we are, of course, in dialogue with several that we could potentially work together with. The opinion hasn't changed, but we just haven't found the right point yet. We do have several things to talk about and discuss, and that's it.
Okay. That's fair.
Thanks.
Okay. Thank you, guys.
Once again, ladies and gentlemen, star one for questions. Moving to a question from Kristoffer Møller-Huken with Carnegie.
Yes, good afternoon. This is Kristoffer Møller-Huken in Carnegie. Could you please update us on the status of the loan towards Ak astor and your thinking going forward there?
I didn't catch the first of your follow-up question.
Akastor, the press.
Yeah.
We have the press notes there. I'm not going to think there just to give a highlight.
Yeah. We have this preference share now with Ak astor, which is still running for a few more years. I think it's till 2025, and we have no other plans than keeping this running in that period.
Okay. Thank you.
You're welcome.
In the release today, you 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? If you could consider that in the future?
We always have the-
It had a huge impact, but it was already known when you reported fourth quarter.
It's not significant. It's not significant enough. If it was a big hit, it would've been different, but it's not a significant hit.
Finally, compared to consensus and my numbers, you beat us both on revenues and costs, which both came in higher than assumed. Anything you would highlight which was a bit odd or one-offs in Q1, or was it as you had expected?
Related to currency, I think I take that. Of course, on a group level, we are hedged. On our mobile drilling units, we have part of the income in Norwegian kroner when we operate in Norway, and we have the remaining in US dollars to cover the financing. Of course, when the US dollar changed, I think in the first quarter of last year, we had a US dollar level that exceeded NOK 9.5 to Norwegian kroner. This year it was less than NOK 8.5, so that's a 10%-15% difference. If you look isolated on the top line or isolated on the cost, of course, it had this effect. If you measure a unit operating with Norwegian kroner cost base, the cost in US dollars increased by approximately $14,000 on a daily basis, just due to the exchange rate in that period.
If you look at the D&A, 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.
At this time, there's no additional questions in the queue. I will remind everyone, star one for any additional questions. We'll pause for just another moment. We did get another couple of questions in the queue. We'll hear from Jan M with Godwin Investments. Jan, your line's 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 changing in the latest quarter or indeed not, or maybe to ask a quick follow-up on that is the refinancing effect that as well. Thank you.
Yes. If you look at all the future debt repayments for 2022 and 2023, that's approximately $50 million lower on a yearly basis than we had a couple of years back in time. We paid debts in excess of $200 million on a yearly basis. The debt repayment for 2022, 2023 is at the level of approximately $156 million on a yearly basis. Of course, we don't know the income for these years to come. If you look here, 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 350 level approximately. It will be room for paying a dividend. However, we have to look at what is the contract backlog, what is the cash position. We are in a position now where all of our units are in clear SPS.
We don't have any SPS coming up before 2024 and 2025. Based on the market development as expected, there will be room for a dividend. It is open in our loan agreements to pay a dividend of up to 50% of the previous year's net result. That has to be approved by the banks for case-by-case basis, and that is based on what I said, based on 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 want to add there, which is the key here is the backlog. If you look forward, we have a backlog more or less into 2024, 2025 now. We know we have a good view of what we're going to provide as EBITDA and so forth. 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 or perform according to expectations. That's where 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 Fredrik Stene with Clarksons Platou Securities.
Hey, guys. Fredrik here. Thanks for taking my question, and congratulations on the refi here. I guess it's 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 MODU side. Of course, you need to concentrate on just running your day-to-day operations. Do you have any broader plans now that you have potentially some leftover time since you've contracted a lot of your units to develop other offshore ambitions, or are you at this point also competing for work much further out in time as well?
If you meant, did you think of the, when you say offshore, do you mean within the MODU rigs area?
No, your offshore, potential to your offshore wind ambitions that you've briefly touched upon.
Yeah.
Before offshore.
Okay. You're thinking of the Odfjell Oceanwind? The wind activity.
Yeah, like since you've booked a lot of your capacity for the MODU rigs, are you going to look at something else or, I think you said a few quarters back that Odfjell might-
That's true.
be a different company in a year's time.
We work with the offshore wind capacity. We do that. That's something we want to present somewhat later to be more 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 we can move into market. Yes, we are working with that. As I also said that over the end game, over wind capacity or wind efforts, offshore wind efforts, will not be a part of Odfjell Drilling as a drilling company because it doesn't belong there. We use the same type of synergies between, for example, MODU and offshore wind is significant regarding the maritime understanding and the ocean wind, ocean understandings. Yes, we are working with that.
We deliberately have not presented any details because we don't want to rush into that everybody else does, talking and talking. We want to do something more substantial. We can come back to that, Fredrik, somewhat later where we're going to be more informative what we actually are doing. If you go to our website, Odfjell Oceanwind, you will find it there, and we will start to do some campaigns to explain to the market what we actually are doing little later this year. Okay?
Okay, man. Yeah, no, super.
We also actually look at more capacity within the MODU side, and all of you asked that, but we do, and when we find the time, right, the right concept, the right solution, the right integration, we clearly want to do a move also to increase capacity.
Yeah, are you still, I think you said earlier that if you had more capacity, you could definitely employ that capacity. Is that still a correct statement?
That's a correct statement, that type of activity comes not in 2021, not in 2022, but we could certainly make some interesting moves in 2023 and onwards. That's why we believe, as I said, the most important client in that package, you know who that is.
Yeah.
All right.
Thank you.
Yeah.
Thank you.
Looks like we have a follow-up question from Kristoffer Møller-Huken with Carnegie.
Yes, just a quick follow-up on Deepsea 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? Thank you.
Of course, I might not be objective, clearly we believe it's going to be continuous operations. I've shown that before, it's going to happen again.
One final reminder, star one for any final questions today. 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. I wish you a good day. Thanks for now. We talk next time. Thank you.
Thank you.
Ladies and gentlemen, this will conclude the conference for today. Thank you for your participation. You may now disconnect.