M&A Announcement

Jul 8, 2021

Good day, and thank you for standing by. Welcome to the Subsea seven Renewables Combination with OHT Conference Call. At this time, all participants are in listen only mode. After the speakers' presentation, there will be the question and answer Please be advised that today's conference is being recorded. I would now like to hand the conference over to our first speaker today, Catherine Tonks. Please go ahead. Good morning, everyone. With me on the call today are John Evans, CEO of Subsea seven and Rune Magnus Lundetree, Chairman of OHT. This morning's press release is available to download on our website along with the presentation slides that we'll be referring to during today's call. May I remind you that this call includes forward looking statements that reflect our current views and are subject to risks, uncertainties and assumptions. Similar wording is also included in our press release. I'll now turn the call over to John. Thank you, Catherine. Good day, everyone, and thank you for joining this call after such short notice. Aruna and I are excited to talk to you today about the transaction we announced this morning to combine Subsea seven's renewables business with OHT. We have a few slides that describe the deal and then we'll be happy to take your questions. Let's start on Slide three with the transaction structure. We've announced this morning the combination of our renewables business unit with OHT to form a new company called Seaway seven ASA. Subsea seven will own 72% of the combined company and OHT shareholders will own 28%. The company will retain OHT's listing on the Euronex growth market in Oslo and initially have a 7% free float, as you can see depicted in the chart on the right. It is expected the deal will complete by the end of the third quarter this year, subject to customary approvals, conditions and relevant employee consultations. Subsequently and in due course, the company will aim to transfer to the main market on the Oslo bourse. Throughout, Subsea seven will retain a majority stake in Seaway seven ASA and will have access to the financial, operational and strategic benefits of the wider Subsea seven parent company. Turning to slide four. The Board of Directors of CY7 ASA will comprise four directors nominated by Subsea seven and one from OHT. Rune Magnus will be nominated as Chairman and Stuart Fitzgerald, currently Executive Vice President of Strategy and Alliances at Subsea seven will be appointed CEO. Tolga Ramstad and Steph MacNeil will have executive roles and further management appointments will be announced in the near future. Seaway seven ASA is expected to commence trading on the October 1 with minimum debt. OHT has net debt of $6,000,000 at the end of the first quarter and Subsea seven will contribute its renewables business unit with zero debt or cash. As the parent company with a majority shareholding, Subsea seven will provide financial support to CY7 to fund its working capital needs. The boards of Subsea seven and OHT have unanimously approved this deal based on a compelling strategic logic, although it remains subject to the approvals I mentioned earlier. Through this combination, we're creating Seaway seven ASA, a pure play renewables company listed in Oslo with a market leading position in offshore fixed wind industry. As well as a long track record of executing large complex projects, the company is equipped with a strong and diverse fleet of assets that enable it to install turbines, foundations, cables and substations in a variety of different contracting modes. The high end vessels enable efficient operations, whilst also increasing the flexibility of our fleet as the offshore wind market becomes truly global. This installation fleet is augmented by five heavy transportation vessels that are used to transport wind structures from yards to installation sites. Heavy transportation is an increasing high value segment and it's critical to enable the use of a cost efficient global renewable supply chain. Overall, we believe CY7 ASA will be well positioned to capture an increasing share of the high growth offshore fixed wind market. As you can see on Slide seven, which shows the annual installation of offshore wind power in gigawatts, the market is expected to grow at a compound rate of over 20% per year with strong growth in all three regions, Europe, The U. S. And Asia. As we have said in the past, near term, the market appears lumpy due to the timing of the licensing rounds, but as The U. S. And Asian markets in particular, the pace of growth begins to accelerate from 2025. With the vessels currently under construction and options for further newbuilds, CY7 has access to the right assets at the right time to address this exciting market to ensure it strengthens its position as a global leader. On the following slides, we give a quick outline of each company before we circle back to look at the combination that is Seaway seven ASA. First, Subsea Sam's renewables business on Slide eight. As many of you know, we have five vessels, two heavy lift, two cable and one support vessels. We have offices in seven countries covering the current and future hotspots of the offshore wind market, including Europe, Asia and The U. S. We have around 500 onshore personnel and 400 offshore personnel attached to our vessels. We have a backlog at the end of Q1 of around $1,800,000,000 including projects such as Sea Green and Hornsea two in The UK, Kaskazi in Germany, Helanze Kuzeut in The Netherlands and projects in Taiwan. At this point, I'll hand over to Rune Magnus to run through an overview of OHT and how it positions Seaway seven as a. Thank you, John, and good morning, everyone. Firstly, a look at OHT overall before we highlight the two vessels under construction. As you can see on Slide 9, we currently have five heavy transportation assets that are commonly used to carry wind structures such as the jackets you can see in the photos on the right, from yards in Asia and Europe to their installation sites. We also have two state of the art assets under constructions, Alphalete and WindOne, as well as further yard options for additional vessels. OHT have offices in seven countries, including Norway, Denmark, The UK, The US, Dubai, Singapore and China, and have a lean team of 65 people onshore. Our heavy transportation vessels are typically engaged on fixed price contracts covering all execution aspects and our backlog of approximately $150,000,000 relates primarily to the foundation T and I contract that we have for Equinor's Jurgot Bank A and B development in The UK. Now taking a closer look at our two newbuilds. On Slide 10, we start with Alfa Lef. This is a custom built foundation installation vessel equipped with a smart deck capable of installing up to 14 monopiles for 10 jackets per trip. I will be able to install in dynamic positioning mode, making it one of the most efficient installation vessels on the market. The total build cost is around $300,000,000 of which $175,000,000 is outstanding currently and is due for delivery during the first half of twenty twenty two. On Slide 11, we have our second newbuild, Wind one. This jackup will be able to install the next generation of turbines of 15 megawatts or more as well as monopile foundations, making it both efficient and flexible. The all in cost is estimated at $255,000,000 of which $210,000,000 is still outstanding towards the end. More details on both of these newbuilds can be found in the quarterly presentation of OHT available on our website, oht. No. Bringing all this together, we have the combined fleet on Page 12. The new company will have a strong leadership team, an experienced team of engineers and project managers capable of delivering the largest, most complex offshore fixed wind project in the world. The fleet of 12 vessels will enable us to service the global marketplace with increased efficiency, reducing the need for long transit between jobs and covering the full array of installation activities, including turbine, foundation and cables. Our combined business will be headquartered in Oslo with a strong hub in Europe, including offices in each of the key markets of UK, Denmark, Germany, The Netherlands, France and Poland. We will also have a well established presence in The U. S. With offices in Providence, Rhode Island and Houston. Finally, in The Middle East, we will be based in The UAE, while in Asia, our offices will be in China, Taiwan and Singapore. Let me finish our discussion of Seaway seven ASA with Slide 14 showing the current bidding prospects of the combined company. The UK remains a fruitful market and the CFP round scheduled for December year should yield a number of projects. Clients include Eberdrola, SSE, Equinor and Wattenshall. There are also a number of prospects in Germany, including two for Erfstede and Poland where Equinor is building a presence. Although the Taiwanese market is experiencing a number of issues, there remain prospects on the horizon and we will take a cautious approach. The new market exploding onto the stage is undoubtedly The U. S, where we see at least six very large projects on the bidding radar, some worth up to 2,000,000,000 on an integrated or EPCI basis. The first of these, Coastal Virginia, should be awarded to the industry by the end of this year, followed by OceanWind, Skipjack, Empire and Mayflower, which are expected to be awarded next year. To summarize, the bidding pipeline is strong, the outlook for longer term growth is robust and combined, we believe we have the industry's leading resource base and experience to capture an increased share of this market. Finally, let's let us put today's announcement into context for the two groups of shareholders that we represent. From OHT's perspective, the combination with Subsea seven's renewable business represents an exciting next step for the OHT organization and our clients. And we believe the combined company will offer long term growth opportunities and create shareholder value. The offshore wind market is complex and will require large and financially robust service providers with the right combination of fleet, organization and experience. I believe CY7 is ideally positioned to be the market leader and capture an increasing share of the high growth offshore fixed wind market. Thank you, and I'll hand back to John. Thank you, Rune. From the perspective of Subsea seven, the transaction represents a next step in our energy transition journey. It's one that we believe will accelerate and enhance value creation for our shareholders. The combined business of CY7 ASA is armed with a comprehensive fleet and experienced management team and is poised to forge a new enhanced growth trajectory as a global leader in offshore fixed wind. We at Subsea seven look forward to working closely with the team at Seaway seven in this exciting new chapter of its evolution. And now both Rune and I are happy to take your questions. Operator, please go ahead. Thank you. Dear participants, we will now begin the question and answer session. The first question comes from the line of Michael Alford from Citigroup. Please ask your question. Good morning. Thanks for taking my questions and it looks like an exciting combination. Just firstly on the funding plans going forward. I think from memory, OHT has talked about the need for sort of $40,000,000 to $50,000,000 of funding in addition to that I think the facility that they were putting in place to fund the Alta Lids vessel. I'm just wondering whether you can maybe take a step back and think about it from a kind of combined perspective and think about what we would expect the funding requirements to be going forward from the Subsea seven perspective? Thanks. I think it's probably best if I just give an overview to that question, Michael, and Rune can supplement, I guess, in terms of where we're at here. I think one of the benefits that this transaction gives is that it allows the new Subsea seven ASA to gain the benefit of being part of the wider Subsea seven group. And that is part of our thinking that we will be looking at how we will fund that and how we can cover that. There's a possibility of Subsea seven to lend to Seaway seven in terms of how they move ahead. We also know today, as we discussed earlier, that OHT has net debt of about 6,000,000 at the end of Q1, and we're going to put our business in effectively at a sort of net debt, excess cash free basis. So really for us we're going to work through in the next few months the future capital expenditures and we can see that either being covered by operating cash flow and new debt facilities which Subsea seven will support because we have very good and strong access to the capital markets. Yes. The only thing I can add to that is one two things this combination brings is that there will be even stronger operating cash flow in the combined company and I think also there will be more options for us to consider when it comes to meeting future obligations from newbuild programs. So I think we leave it at that for now and we'll come back to the market with more details on how we plan to capitalize for the medium and long term. Great. And a quick follow-up, if I could. Just with the combination, sometimes I'm talking about a stable and majority stake, but should we therefore expect you to be sort of selling down and increasing the free flow of the listed entity? Or how should we think about the kind of shareholder structure over the medium term? Thank you. Well, Michael, on that one, we've already had some discussions with the Euronext growth market. There needs to be a minimum free float of 15%, and we're in discussions there, and they've said that they understand there's some flexibility needed to achieve that. So for us, we will work that to make sure we meet our listing requirements in due course. But the main aim for Subsea seven here is to be long term majority shareholders in Seaway seven ASA. The next question comes from the line of Hakan Amundsen from ABG Sandal Collier. Please ask your question. Yes, good morning guys. A follow-up actually on the financial situation going forward. You mentioned that you will maintain the majority stake. But I was just wondering, do you consider to raise fresh equity in connection with the main listing? And a follow-up to that would be, what are the kind of next leg of the investments that the new company will endeavor in terms of the various exposures that you now have in the portfolio? Thanks. Thank you, Hakan. I guess as we covered in the previous question, we'll come back to the market closer to our closing on the view of how we will handle the capital side of it and how we will decide whether we use equity or debt to grow the business. We will reveal that in due course as we work that through. So for us, it's about that we have the flexibility to do what we'll need to do here to invest long term. This is all about a long term investment. The crux of this discussion was in OHT shareholders and Subsea seven, We had an alignment that longer term there's a good opportunity here. OHT have some very interesting options in some of their shipbuilding contracts. And again, the new company, one of the first roles of the new company's board and management team will be to look at those and again to try to fit it together with the demand that we inevitably see in that curve from '25 up to 02/1930. So for ourselves, it's about positioning this business to be at the very top two players at the top table in this business, which is inevitably going to grow. So I think the takeaway here, some interesting options that exist in the shipyard contracts that OHT have and that the new management team and board will look at this topic and work it through over the next few years. All right. That's very clear. Thank you. Thank you. The next question comes from the line of Mick Pickup from Barclays. Please ask your question. Good morning, everybody. Mick here. A couple of questions if I may. On OHT, obviously, you're selling OHT as a transport of jackets and mono piles and ultimately installation. But that business, when they used to cover it, was about moving oil and gas assets around rigs, modules, vessels around the world. So can you just talk about the business mix today in OHT and how that goes towards being wind? And secondly, you're now going into turbines. I think at last year's Capital Markets Day, you were very specific on that's not an area you wanted to go into. Why now going into it? I guess, I guess, yes, so we'll do it this way. If I take the turbines first, Rune, and then maybe you come back to the transport vessels. Mick, you're right that we have looked at the area that Subsea Sam's business, which was primarily in array cables and foundations, and that's a business that we've been very comfortable with. But what's been very interesting for us is we have seen two of our main competitors use their very, very large jackups in foundation mode. And what we like about the Vind one, it's also been engineered not only to install the largest turbines, but it's a heavy duty crane, a heavy duty deck structure and jacking system, which allows it to work on the largest foundation contracts as well. So for us, when we started to sit down and talk to OHT, we could see the attraction of the very top end of a jackup. So if we were ever going to build a jackup, it would be the Vind one or Vind one equivalent. And secondly, its ability to multitask between wind turbine installation and foundations will provide a very interesting flexibility for the new company. I'll hand over to Rune to talk about the heavy transport vessels. Yes. So you're right. Historically, OHT has been a a transportation company for heavy equipment and assets covering oil and gas. What we have seen in the last couple of years is an increase in activity related to offshore wind projects and specifically transportation of monopiles and jackets as they are increasingly produced in Asia and The Middle East. Last year, we had a significant part of the EBITDA related to the transportation fleet from offshore wind related projects. There will be still work to serve non renewable markets if their opportunities are there, but we also see going forward that especially from 2022 and forward that there will be an increase and significant increase in work related to renewable. Okay. And can I just follow-up on the offshore heavy lift market From memory, when I used to look at this space, there was capacity coming out of Asia every time I looked at the market? What's that market like today? And are there other vessels coming to market that are capable of coming into this space? Well, the projections we have is it's a pretty tight market going forward. It's been stopped this past winter. That was expected. That was communicated by us also last fall. We see an improved market and also an increasing number of inquiries coming in. Okay. Thank you. Cheers. And Mick, just one just to supplement what Rune says. Today, Subsea seven has six heavy transport ships moving jackets on Seagreen and we have them booked for eighteen months solid. On some of our U. S. Bids, we have even more heavy transport ships booked solid. So So interestingly enough, when you look on the very largest projects where the money goes, a lot of it goes to getting access and reasonable rates for the heavy transport vessels as well. So for us, there is a real industrial logic as well here in the longer term as these projects globalize. It's the heavy transport ships that allow global supply chain to work, I think, in the renewables business. So if we think of it in that context, that's the appeal of the combination that we see here. Okay. Thanks, John. Thank you. The next question comes from the line of Mark Wilson from Jefferies. Please ask your question. Hello, good morning gentlemen. Two questions from me please. The first is to John. The financial framework you showed at your Renewables Day last year talked about Seaway 7 as it is now getting to $1,000,000,000 average revenues and over 10% EBITDA. Could you frame those figures with the combined business, please? The second question would be, I think more to OHT side, the option on the second insulation vessel, Wind two, would you be actively considering building a Jones Act compliant vessel? Do you think that is necessary in the medium term? Thank you. Mark, good morning. If I took the first one then Rune can take the second question. As we discussed in our Investor Day that we had, we talked about that we believe that the renewables business in the medium to long term can be $1,000,000,000 business in terms of revenue and that you could get EBITDARs of about 10%. We talked very openly to the market that it remains a lumpy industry as it starts to settle and it starts to globalize. But we do believe that longer term that this industry and this business will settle around those margins. And just as in the oil and gas industry, you've got two or three very large players that can offer a full suite of capability to the largest utilities and the big energy and oil and gas companies that are working in that front, we believe we will get there. Will we get there straight away? No, it's a process that we will need to go through as the market stabilizes and grows. But we do believe that those targets are feasible. And it's really about just as we've discussed at the time, the timing of which these larger projects come and how they are packaged together and how much scope gets put into those different packages. The new toolkit that Subsea seven ASA has is a far stronger toolkit that either Subsea seven or OHT have individually, very complementary toolkit. And as we globalize, we will also save on transits and such like as I discussed in my prepared remarks. So I think for us it's around reinforcing the foundations that give us the ability to say those figures are feasible for us in the medium to long term. I'll hand you over to Rune to talk about the optionality. Yes, hi there. So we have three options in OST today. They will not be relevant for Jones Act. When it comes to Jones Act, I think it's not I think it's something we need to get back to the market on. But what I can say is that the CapEx for Jones Act vessels will be significantly above the levels that we have seen for non Jones Act vessels. And I would at least look for longer term contracts and projects where you can actually defend the additional CapEx if we should if we are to build Jones Act vessels. But too soon to give a definite answer on whether or not that will be vessels for us to build. Okay. No, thanks for those answers. And so I'd come back to John. So defending the 10% EBITDA margin seems understandable. But maybe if I could just push again on the revenue side of things, do you think the additional opportunity would be what upside on the billion dollar longer term? Mark, we I think we've shared over the market that it's possible we'll make the billion dollars this year in terms of just the pure subsidy seven business because of the size and shape of some of these large contracts coming through, but it's the lumpiness that is one of the challenges this industry has today. But once it starts to normalize and starts to become stable across large geographies such as Asia, Europe and The U. S, we could expect to be able to see that. And once we get to that place, as we see in our subsea business, we're not transiting assets backwards and forwards around the globe. We're able to position assets in key geographies and that's how our EBITDA goes up by putting the ships to work every day rather than transiting them. So for ourselves, we can see that growth coming. It really reflects on the timing of the Bloomberg graph that's in the materials here. Will those projects in 'twenty four, 'twenty five arrive in time and will they fit together? One thing we've talked at length is the fact that this market does have a lot of governmentsubsidy regimes and a lot of regulatory environments around them. And so for us, it's about how do we give ourselves the ability to see where we go from there in terms of building out that business. So at this stage, Mark, we won't be giving any more details at this point, but we can see the ability for the pieces to fit together. It's just the timing of that curve. There's some lumpiness between now and 2025. But then when you look at our Bloomberg curve, there's another trajectory upwards very, very sharply from that point onwards as well. In our discussions with the key utility clients, everybody's focusing on those areas and pushing ahead. And I think it's fair to say in my prepared remarks, I think all of us have been quite pleasantly surprised by the scale of The U. S. Business, which we didn't really have in focus a year, year and a half ago in terms of its size and scale. So it's a very fast moving market and that's what makes it exciting. Thanks for the answers and congratulations on the combination. I'll hand it over. Thank you. Thank you. The next question comes from the line of Tuner Holm from Clarksons Plateau. Please ask your question. Hey, good morning gentlemen and congratulations on the transaction. So just wanted to touch on the synergies briefly. First, just on the sort of revenue synergies. I mean, do you see that there are the sort of potential to win contracts as a combined unit that you wouldn't otherwise win as two separate units? Is it sort of envisioned that this combined company will be on a similar level as the large Dutch and Belgian EPCI players? And then the second part of the question just on any view on potential cost synergies. Thank you. Yes. Thank you. Good morning. So we didn't do this transaction to drive out cost synergies. We've got two very lean organizations that are coming together in a growing market. So for us, it's about broadening the portfolio of service offerings. It's about being able to geographically place assets in the foundation business and be more efficient in that front. And then it's about making sure then that we can keep growing this business longer term as that market responds. So for ourselves, that's the primary logic here. It's not a cost synergy exercise as far as we're concerned. We intend to keep all the key people, all the workforce we have around the globe and build those businesses out. In terms of where we're positioning, there are two, one Dutch, one Belgian competitor that would have a toolkit similar to this with cables, foundations, turbine jackups in the mix. And that's where we position the new Seaway seven ASA is to be in that top three, top two slot in that grouping, because we believe that longer term it will be the larger client contractors that can take some of these larger contracts. The other thing that we have seen, we were one of the sort of early movers on offering integrated foundations and cables, and that's proved to be quite interesting. We picked up two or three jobs in that mode, and a number of our competitors have picked up some jobs in that mode. You could also see that you could join foundations, cables and turbine installation into one integrated T and I package as well for our utility clients. So there is still opportunity there, I think, to offer slightly different contracting formats in due course. Where we've always been, we've been very flexible on contracting formats. We will work in any contracting format that works for our clients and works for ourselves from a risk and reward profile. Okay. Thank you. And then just a quick follow-up to that one. I believe OHT is kind of highlighted towards the end of this year as a good timing for a potential award of contract to VIN one. I'm just curious how you all are thinking about this with the deal closing, I guess, in October. I mean, you don't have to take delivery of the vessel until mid-twenty twenty three. So how does that, if at all, change your perspective on potential first contract award for Vindwin? Thank you. I think it doesn't change how we bid and how disciplined we have been and will continue to be. We believe we have an attractive asset with an attractive delivery slot into a market that looks very interesting at that time. So we will continue to work the bids that we have submitted and also continue to be disciplined when it comes to rates as we have been. So I would say it doesn't change anything there given the combination. The next question comes from the line of Vlad Serhiyevsky from Bank of America. Please ask your question. Good morning. Thank you very much for doing this call. I have three questions, please. First, how did you think about valuation of the two businesses to arrive to the shareholders that you have? Was market valuation of OHT a consideration at all in this process? And then secondly, with regards to Saksi seven specifically, obviously, you will be consolidating the empty tier, which will have meaningful newbuild CapEx in the next few years, likely impacting the free cash flow of Saksi seven. Will it have any impact on how you're thinking about shareholder returns over the next few years? And lastly, specifically on OHT, would you be able to provide us at least a rough split of revenues last year or maybe expectations for this year between renewable and non renewable business? Thank you very much. Okay. Thank you, Vlad. Good morning. I'll take the first two and I'll ask Rune to take the third. If we look at valuation, we did what we would normally do as two companies. We looked at where we think our businesses are going to go into the future. We looked at what we thought the relative values of the two businesses were. As always with those type of discussions, they can be a plus or minus up and down on the numbers, but we felt where we concluded that we had a reasonably balanced ratio between the two of us. And it was around looking at this from a viewpoint of this good comes out of this for Subsea Sen shareholders and this good comes out of this for OHT shareholders. So the valuation was a normal valuation process that we had that allowed us to we calibrated against certain reference points. But I think it's fair to say that we felt comfortable both boards felt very comfortable that we had a reasonable balanced ratio here. This wasn't one person trying to take advantage of another. It was two businesses with a strong industrial logic saying to themselves, let's try to be pragmatic here about putting good valuations together or reasonable valuations. So that's the way we approached it. From Subsea seven's viewpoint and a shareholder in Subsea seven, I'd like to come back to the very last slide and our strategic vision. We are very clear that Subsea seven will be one of the preeminent energy service providers in that market that's going to change significantly in the next ten years. We will continue to invest in Subsea seven in floating wind, in hydrogen, in carbon capture, and we still see a very large oil and gas business that we know the energy transition needs. So that's one side of our business. We intend to invest to make sure that Seaways SA succeeds and grows. So I think that will come back to the usual triangle that we've always talked about. Priority number one, invest in the business if there's a good opportunity. Number two, make sure we keep a good investment grade balance sheet. And number three, then return everything else to our shareholders. So I don't think that will fundamentally change. And I think as we've always said to our shareholders and people that follow us, we are a longer term play here. We're not a very good quarter company. We do things long term because we believe we can create long term shareholder value. So that's the way I would like people to think about it is that that's the way we will be looking at it certainly as a board and management. And I'll hand over to Rune. Yes. On the revenue side, last year, apologies, I don't have the exact percentage in my head, but what I can say is that the majority of EBITDA came from renewables, as I said earlier to your question, and by far the biggest segment was offshore wind. In 2021, we see some reduced activity related to renewables, but from the end of this year, there is several jobs and a significant number of volume to be moved from Asia, Middle East to Europe and where you should expect us to bid for that work. So from 2022 and onwards, we see renewable taking a bigger, bigger share of our revenue from the heavy lift fleet. Thanks very much, John. Good luck with the transaction. Thanks, Mike. Thank you. The next question comes from the line of Kevin Roger from Kepler Cheuvreux. Please ask your question. Yes, good morning. Thanks for the call and actually all the questions have been already answered. So thanks for that and have a very good day. Congrats all for the year today. Thank you, Kevin. Thank you. The next question comes from the line of Mick Pickup from Barclays. Please ask your question. Hi, it's Mick. I'm trying to get out of the queue. Unfortunately Vlad asked my question. Thanks. No problem. Thank you. Thank you. The next question comes from the line of Emily Wong from UBS. Please ask your question. Hi, guys. Good morning. Thanks for the presentation. A couple of questions still though. On the $400,000,000 of CapEx that's due on the two vessels, could you give us a payment schedule for that please? Sorry, Yes, I think, Amy, we will need to be able to do a bit more information that we will give to the market just prior to closing. But, Rune, if there's anything that's already public with OHT, feel free to share it. I can just refer to previous communication around it and that's for the wind vessel, the pavement structure is four times 10 on certain construction marks and then the rest at delivery. And for the Alfa lift, the remaining is at delivery, which we said is first half of twenty twenty two. Thank you. And then the second thing is during your opening with prepared remarks, you talked a bit about the kind of improving efficiency or having a more global fleet. So that sounds like to me that we should be expecting some kind of utilization uplift from not having to move your vessels around a bit. Could you talk about that a bit more? Help us understand what kind of foundations area. And really for us, it's the ability to deploy a very large heavy duty jackup on foundation work, which may open up an EPC or may open up a very large transportation installation. So if that jacket happens to be in the right geography, that's of interest to us. It's also about the fact that we've started this business in Europe and we've grown over the last decade a European business. But we can see over the next three to four years a strong Taiwanese business and other Asian countries which will grow on that front and then we will also have The U. S. Running in parallel. So for us it's about the ability to deploy as we do in subsea, try to deploy assets in certain regions to avoid the inefficiency of transiting. Some of these large assets take forty five days or something to move around from one job to the next. So you do that twice a year, that's ninety days of a year, year gone moving around. So for us, it's about creating the possibility for utilization. And it also the toolkits, we think, will be very interesting in terms of foundations for the new company in that you've got a very large heavy duty jackup with the ability to do foundations. You've got a in the Alphalift, a very, very efficient monopile installation machine. And then in the Strash North End, you've got a machine that does a lot of heavy jacket work very efficiently as well. So again, different tools for different types of projects. So for us, there are benefits from the tools in our toolkit and where we choose to put our tools around the world. So that's the way we look at it at the moment. But that story will only crystallize in 2024, '20 '20 '5 onwards when these very large projects that are forecast by Bloomberg and we're talking to our clients around them materialize. And then it's about a question of what scopes we pick up and where we pick those scopes up. Understood. Thank you. That's very helpful. I'll turn it over. Thank you. The next question comes from the line of Mark Wilson from Jefferies. Please ask your question. Yes. Follow-up question here is just that with the floating business or partnership that you have not included in this, just explain what's going on with that at the moment, John. It sounds to me like that would still be in a kind of a subsea design phase that will use your engineers in the other part of the business. Yes, Mark. Thanks for asking that question because I think it's worth clarifying. What we've seen here is that the fixed wind business, which is the one that SeaWi7, ASA will have as its target market, has really become a major significant real market today with volume and very clear growth steps ahead. Whereas floating wind, as we've discussed a number of times, we see that more as getting technology lined up, starting to do some pilot projects at the middle point of this decade. We're then seeing this becoming commercial probably toward the end of this decade. So that will stay inside Subsea seven and our Salamander investment that we discussed at the last quarter will stay there. We will see good cooperation between Seaway seven and Subsea seven. I'm sure when we do a floating wind project, all the Cable A work will be done by Seaway seven. But the idea is to put dedicated research and development resources onto it while Seaway seven tries to go out and harvest the real opportunities that are out there in fixed wind. So that's how we've logically structured it. Thank you. Okay. I think that's everybody's questions. So thank you very much to join us at very short notice. And we look forward, Rune and I look forward to talking to you over the coming few days, I'm sure. So thank you very much. And we'll talk to you again soon. Thank you for joining in, everyone. Thank you. That does conclude our conference for today. Thank you for participating. You may all disconnect. Have a nice day.