Earnings Call: Q3 2020

Oct 30, 2020

Welcome, everybody, to the Lundin Energy Q3 2020 Results Presentation. We'll follow the usual format. Alex will talk you through the highlights and operations, and Tysha will take you through the financials, and then we'll have a Q and A session afterwards. Without further ado, hand over to Alex. Thank you, Ed, and good morning, everybody, and very pleased to be here at my, I guess, my last quarter release. But let's get into the highlights. Overall, I have to say very pleased with the Q3. Of course, I will say start to say a few words about the corona crisis and we are successfully continuing operations. I think we see now the 2nd wave, but it's fair to say this is 2nd wave where we are much better prepared perhaps than the first one. And the way the industry has reacted in Norway and the mitigating action we've put in place makes me comfortable that we will continue on this trend and being able to continue to operation without disruptions. 2nd point on the production, you've seen the production where we are at, so just above guidance. And you also in particularly seen that our full year guidance has increased and I will say a few more words on the slides. But also to show that the we will have a record 4 quarter production for the company at 175,000 and I will say a little bit more later on about these numbers. In terms of operating costs, we continue to be industry leading, low operating cost. For the period, we posted US2.79 dollars per BOE. And it's fair to say that we as a company continue to focus on cost control and I'm very pleased with these numbers and we will maintain our long well, this year's operating cost at 2.8%. Of important also at Bagrig, this is all news. Obviously, we posted an increase in reserves to 350,000,000 barrels of oil equivalent. It's quite phenomenal when you think about it when we submitted the plan of development at Vergrig was at 186. And what is even more phenomenal is that I don't think this is the end of the outperformance at Edvard Grieg. But and of course, with increased reserves, we will see as you see, and there's also an extension of the plateau production, which is now anticipated to be end of 2023. So really, Edvard Griegas continuing to outperform and I think that's not the end of the story of Edvard Grieg. On the free cash flow, I think I was very pleased to post $546,000,000 of free cash flow for the 1st 9 months. That's even more outstanding when you take into account the average oil price achieved during the same period, which was just above $36 per barrels of oil equivalent. So it really shows how resilience the company is at this low oil price environment. Q3 was no different with our posted free cash flow of $165,000,000 And then and perhaps before I move to growth, it's fair to say that we have now posted free cash flow for the last 3 years quarter after quarter. So really pleased also with that result. In terms of growth, you've seen the transaction with Irimitsu and I will say more later on the slides. And we also started our high impact exploration program in the Barents Sea in the Q4. And you will see also next year we will continue to be quite active all through actually the Norwegian continental shelf. So growth is definitely here and both in our existing assets and new concession new areas. So moving to the next slide. We're zooming into the production guidance. I guess a few points worth highlighting. Number 1 is the 1st 9 months production over 157,000 which puts us at the upper end of the original guidance range. If you remember at the Capital Market Day, we guided the market between 145, 165 with a midpoint of 155. And today, we're now posting despite the curtailment of the production in Norway, 157. So very pleased with that. Most importantly also is looking forward, Q4 guidance has increased. This is mainly in relation to the increased production quota that we have received for Edvard Grieg and Johan Sverdrup. So for the full Q4, we anticipate to produce about 175,000 barrels of oil equivalent per day, which is a record quarter or a record production for the company. In actual fact, if I look at the performance of October, we've been producing an average over 175,000 already. So we're well on the way to achieve this Q4 guidance. So as a result of the Q4 highest higher production, we are now increasing our guidance from what used to be a target of 157 to now full year guidance between 161,000 to 163,000 barrels of oil equivalent per day. And finally, it's worth pointing out that we've been at the upper range or at or upper range of the guidance for the last 21st quarter, so more than 3 years. So very also pleased with that performance. Moving on to the operating cost and efficiency. Definitely, it's fair to say that we are Lundin Energy industry leading operating performance. Our production efficiency continues to be very good with our range between 95% to 98% across all assets during the Q3. As I mentioned, posting for the 1st 2 9 months, 2.79 percent, Q3, 2.8 percent right at the guidance. But remember that Q4, we will have higher production. And so I have absolutely no concerns of achieving the full year guidance of $2.8 per barrel. On the carbon intensity, also very pleased with the performance. Just to remind you, we guided for this year less than 4 kilogram of CO2 per barrel produced. And today, the average for the 1st 9 months is just below 3 kilograms. So well below our guidance. And that's much lower than the world average or a 6% of the world average. And I will say a little bit more about it on the next slide. It's also worth pointing out that just Eonsphedrup today, it's producing less than 0.2 kilogram of CO2 per barrel produced. And that's well below the guidance of 0.7. So a phenomenal performance and it shows the strength of electrification of platform. Moving on to the next slide. So I'm in Page 5. As we and it's a good follow-up to Malay's comments. We're definitely delivering on our decarbonization strategy. Just to remind you, we guided the market to producing less than 4 kilogram of CO2 per barrel produced for the period of 2020, 2022 and you've seen that we're well below that mark. And by the time Johan Sverdrup Phase 2 comes on stream and Edvard Grieg is fully electrified, we're targeting below 2 kilogram of CO2 produced per barrel produced. So I would say, certainly leading as an offshore company. And the most important thing is that this will allow us to target our carbon neutrality by 2,030 and maybe even earlier based on the performance we see to date. And just to remind you, our strategy in terms of decarbonization is really made of 3 pillar. Number 1, reduction of emissions, which is mainly done through the electrification of the platforms. As an example, by end of 2022, 95% over 95% of our production will be fully electrified. Number 2 is our investment in renewable in connection with our electricity production on Yutira High, mainly at Vigrigg and Johan Sverdrup. So as we said, we will invest in renewable to offset and replace all the electricity we're consuming offshore. Thirdly, is obviously continuing to work on through innovations to further increase our efficiency. And finally, any residual CO2 emissions will be offset through either natural carbon captures or other technologies. So we have a clear way forward and we are definitely achieving and well on the way to achieve carbon neutrality by 2,030. The box on the right, they just show you right now where we stand in terms of the replacement of electricity we're consuming. The Leikangen project, the power project is now accounting for 30% of the electricity we're consuming on Jonsweta Phase 1. And by the time we have completed our wind farm project in Finland, we will have replaced 60% of the electricity we're consuming. So really what's remaining for us is probably one more project to offset and replace all the electricity we're consuming at full phase, Johan Sverdrup and full electrification at the grid. Moving on to Johan Sverdrup, definitely on a league of its own. You're mostly familiar with all the numbers. I will not go through all of them. I think I will highlight just few things. Number 1, Phase 2 is progressing on schedule and on budget. We are now over 45% complete, so very pleased with that. 1st oil on Phase 2, as stated before is for the Q4 of 2022. I stated also very pleased with the efficiency not only in OpEx, which is below $2 which is absolutely phenomenal numbers and is there to stay. But also in carbon footprint, we hardly produce any emission of CO2 per barrel produced, which is really to me, Johan Sverdrup is really the field of the future both in terms of performance, efficiency and carbon footprint. But if we're moving on to the next slide, I think the punch line is really that Johan Sverdrup will continue to surprise us and it continues to outperform. We've seen several steps. If you remember, 1st of all, Phase 1 plateau production was standing at 440,000. During the Q1, this plateau production was increased ahead of schedule to 470 at no cost. And during the month of November, we will be further testing the capacity on Sverdrup and we're expecting that we will be able to show that we can produce above 470. But this remains to be seen with the capacity testing that will take place during November. Reservoir performance overall, it's excellent. The well results is at or above expectations, so very pleased with that. And today, we have 11 wells producing, which is giving us well capacity that can exceed the current capacity for 70,000, hence the oil capacity test that we'll be conducting during the month of November. And we are about to complete well number 12. It's going to be in production very soon. So very soon we'll have 12 wells ongoing. So very pleased with the performance in terms of operations. Moving on to Edvard Grieg or the Greater Edvard Grieg area. Again, as I stated before, Edvard Grieg continues to outperform. It's been simply a phenomenal field when you think of the history and where we are today. Edvard Grieg has seen an increase in reserves of 50,000,000 barrels of oil equivalent and we've seen the plateau extending again and this time to end of 2023. Just to put things in perspective, Edvard Grieg was supposed to decline by end of 2017. We've been able over the years to extend the plateau production by 5 years, and we may have not seen the end of this. So very phenomenal performance from this field. We're going to also see the 1st infill drilling campaign starting at Edvard Grieg, which is due to start in 2021. And then tiebacks, of course, particularly in this environment, you want to maximize your existing facilities and you want to maintain the capacity full for as long as possible. So the tieback project we're doing are exactly doing that. And we're now well underway with solving Robsenes and we have potentially new tieback project such as Lille Prinsen. And of course, there's a lot of exploration. We haven't seen the whole story in terms of exploration, particularly in the Western Flank of Edvard Grieg. And so there will be a lot going on in that area. And really the game plan is to maintain the facilities full for as long as possible, and this will generate some of the best and most profitable barrels. And it's quite phenomenal if you then finally look at the reserves. As I mentioned, 186 was the planned development reserves. Today in the Greater Alvheim area, Edvard Grieg, Solveig, Rosas, we are now exceeding 400. And if you add the 3P2C, we're getting close to 600 and then for the exploration 800. So we still have the ability from the current 400 plus to double again the resources over the years. Moving on to the next slide. This is just a snapshot of our current project, the tie back, Solvayker Roadnes. I would say overall everything is on schedule and budget, so pleased with that. Just to remind you, first oil for both Solvek and Robsen is for the Q3 of 2021. So we're getting very close to that, which is only next year. And it's also worth mentioning that these tiebacks are very value accretive. Look at just Solvayk as an example with breakeven oil price below $30 And both Solveig and ROSES have upside. I'm thinking about Solveig Phase 2 and I'm thinking about the full phase of rovesnes. And obviously, those additional upside will be really crystallizing once we have some production history, but a lot of potential also in that area. The next slide is I think it's a very important slide and it's worth focusing on. If you look at the there's really 2 things is we're showing it's number 1 is the further plateau extension. As I mentioned, now we have extended that by Grig to 2023. But if you look at this slide, you can see that when I was talking about further upside, if you include the 3P reserves and 2C contingent, you can see that there's scope to further increase the plateau production. But obviously, this will come with time. And of course any other exploration upside. The other one which is really something we haven't shown before it's accelerations. And now we are accounting for once hivhausen comes into decline, the ability for Edvard Grieg to actually not only extend its plateau, but increase its production. So you can see that over from 2022, Edvard Grieg will have capacity and there will be capacity to further increase production, while Ivarsson is going to decline. And that is significant because by the end of 2024, if you include also the 3P reserves, we can exceed the increase by almost 40 percent of current production level. So taking things in perspective, the last time we showed you that slides on the 2P level, it was the red line you see in front of you. And you see that now you can start to have a better view of what Edvard Grieg can deliver over the years, not just in plateau extension, but in increased production. So again, really a phenomenal outcome. And as I said, Edvard Grieg will simply continue to outperform over the years. Moving on to Alvheim, Really, the game plan here is to sustain productions. Aker BP has done a phenomenal job. When you think that Alvheim is really a mature asset today, still with operating cost below $6 a barrel. The game plan here is really about infill wells. The first one will be 2. The first one will be online during the Q4 2020 and the second one early next year. We also have tiebacks such as Frost, Cobras, Gecko developments, which we all plan to project sanction by mid-twenty 21. So I'm really pleased with the performance and another great field, a great example of performance. Moving on to the growth side. I think we've shown again and again that Lundin Energy will continue to grow and continue to focus on high returns and valuable barrels. We currently have 4 projects underway. And I say 4, I'm thinking about Johan Serta Phase 2, the infill drilling in Edvard Grieg, Solvang and Robsen. You've seen us recently also entering to a deal with Idemitsu, where we acquired 10% on the world class asset listing, which has estimated resources of $500,000,000 and which is currently going under concept selection on their concept selection for submission of plan of development by end of 2022. I think what is important also is with the latest tax incentive that had a really significant impact on organizations. And we have now 9 potential new projects targeting over 190,000,000 barrels of oil equivalent to Lundin Energy. And this is very much some of this are acceleration due to the tax incentive and we've seen really benefit to this environment. And so the company is very busy bringing hopefully maturing this project to commerciality. On the exploration appraisal, we've also been very busy. 2020 is as we have 7 wells. We have already drilled 3 and made a discovery, which the Irving discovery And we have now remaining 4 wells and 3 this year will be very much focused on the Sundal Berency, but more on the next slide, but a very exciting program. And obviously, we continue to be very active on the app and license maturations and really focusing on high quality, high returns prospects. And moving on to my last slide before I hand over to Teitur, and this is really a snapshot of the particularly in the Sandebaran Sea. Not that the Sandebaran Sea is the only area for Lundin. We are very much all through the Norwegian continental share, very busy and maturing prospect and licenses. But we're showing you these slides because it's fair that the Q4 will be very much a focus on the Barents Sea. And really three things to highlight. Number 1 is obviously the acquisition we made with Irrimitsu, which is giving us exposure to 10% to 500,000,000 barrels of oilfield. And this transaction was a very, in my view, value accretive transaction, where we acquired this position with less than or at about US1.8 dollars per BOE, which is very, very good and a very an excellent asset, currently doing going through the concept selection and we anticipate a plan of development being submitted by 2022. Number 2 is our Alta Gota discovery, definitely had impacted by the tax incentive and we're currently working very hard to prove that this project can be a potential tieback and a commercial project and more we will say more certainly next year during the Capital Market Day. Thirdly, very active exploration program, 3 high impact wells in the coming months. We're currently drilling Palmac, which is on trend with existing discovery in Alta. It's high impact with about 400,000,000 barrels of oil growth. And then we will be moving to Basque, which is very much on trend with Johan Saksberg further downflank towards the West and then with Equinor, Spisa. So very exciting program and very exciting activities in the overall in Southern Barents Sea. But as I said, this is Q4, but in the coming quarter, you will also see activities all through the Norwegian continental shelf. So with no further due, I'll pass on to Teitur who will guide us through the financial highlights and the financials overall. Thank you. Okay. Thank you very much, Alex, and good morning, everybody. So kicking off with the first slide here, we normally run through the key highlights for the quarter 9 months, and I think we can summarize the quarter as yet another solid performance from a financial perspective. The operational team in Norway is doing a good job in keeping costs under control, and also the project teams are doing a great job in controlling capital expenditure. As we have pre announced, you can see on the top left box here, we were significantly underlifted during the Q3. And of course, our financials are reflecting the sold volumes as opposed to the produced volumes. So 146,000 barrels of oil equivalent of salt volumes during the quarter, which is 11,000 barrels less than what we actually produced. Obviously, Q3 has been less volatile in terms of oil price fluctuations compared to Q2. So we have had a good price realization during the Q3, just below $43 a barrel for the oil and gas NGLs, dollars 21.33 per BOE. As I said, costs very much in line with expectation, dollars 2.80 in the 3rd quarter and capital expenditure and E and A of $160,000,000 and renewable investments of €5,000,000 Alex touched upon it, but very strong free cash flow and CFFO performance for the 9 months, €1,250,000,000 of CFFO and close to €550,000,000 of free cash flow generated for the 1st 9 months. We continue to distribute dividends on a quarterly basis. And during the 1st 9 months, we have distributed $247,000,000 The net debt at the end of the quarter ended at SEK 3,700,000,000 which leaves us with a leverage ratio of 1.7 times. So then looking a bit more into the details and the comparatives to the same period last year. Obviously, underlying everything here is the fact that sales prices are significantly down both compared to the 9 months and to the quarter last year. So for the 9 months, you can see they're down 41% and for the quarter, 29%. Well, that's been more than offset by increased sales volumes, driven by Johan Sverdrup coming on stream from October last year. So the comparative periods last year, there was no contribution from Johann Sverdrup. So therefore, you see solv volumes up almost doubled for the 9 months and up 72% during the quarter. So that's resulted in an EBITDA generation of $1,430,000,000 for the 9 months, which is up 17% on the same period last year and for the quarter, up 25 percent at $516,000,000 CFFO, we reported $1,250,000,000 for the 9 months. That was also helped by a release of working capital of $92,000,000 for the 9 months. And the cash tax payments during the 1st 9 months was $91,000,000 For the quarter, dollars 353,000 That was negatively impacted by working capital build of $70,000,000 We've obviously seen an increase in oil price in the 3rd quarter compared to the 2nd quarter, and that has resulted in a higher receivable at the end of the quarter of $290,000,000 and that therefore resulted in a build off of working capital of roundabout $70,000,000 But nevertheless, CFFO up 53% on the same quarter last. Year. And moving on to the next slide and looking at free cash flow where we are stripping out the impact of completing the sale of 2.6 percent of Johan Sverdrup, which completed in the Q3 last year. So like for like, excluding JSL, we are up more than 2 40% for the 9 months, dollars 546,000,000 and for the quarter, dollars 160 $4,000,000 of free cash flow. And if you would add back the working capital build, we would have been at $230,000,000 or there in free cash flow generation. Adjusted net results where we take out various mostly noncash impacts such as FX and various finance noncash finance items, we are reporting for the 9 months $193,000,000 of net profit, which is up 11%. And for the quarter, dollars 76,000,000 which is also significantly up on the I touched upon oil price realization. Just to remind people, our cargoes are being priced off the dated Brent. And you can see here that in this Q3 on the column to the far right, dated Brent averaged $42.94 for the quarter. And as it happens, that's exactly what our realized oil price was for the quarter. When we then blend in the gas and NGLs, we have averaged sort of $40 a barrel. So very good performance by the marketing guys. Unlike in Q2 where most of our cargoes were sold to Asia, during the Q3, the majority around about 80% of the cargoes have actually been sold in the European market and just below 20% has gone to Asia during the Q3. And what we've also seen in this quarter is a normalization back between the relationship between Datadry and the future brands, whereas one point in Q2, we saw a delta there of close to $10 a barrel, which was unprecedented. So also that has normalized again as to the Q3. On costs, very stable picture here in terms of absolute costs. This is reflecting the cost from the production, the 157,000 barrels oil equivalent per day. So we posted $46,000,000 of absolute costs, which is up around about 12% compared to Q2. But that has also been driven by a stronger NOK in the 3rd quarter compared to the 2nd quarter by around about 10% strengthening in that. So that has also impacted. But you see that the unit costs are continuing to be in this really leading and extremely low $2.80 for the quarter, and that remains also the full year guidance, dollars 2.80 for this year. Then on tax, you can see here that we reported a tax charge to the income statement of close to $600,000,000 made up of current tax of $250,000,000 and the deferred tax of 3 44,000,000 and that resulted in a relatively high tax rate of 88%. But that was also driven by, for the 1st 9 months, an FX loss of $5,000,000 which is mostly non tax deductible since it arises in the Netherlands, and that's what has driven off the high reported tax rate. But if you adjust for that noncash FX loss, you can see that the adjusted effective tax rate would be 76%, which is much more in line with what we would expect from an operational perspective, given the tax jurisdiction in Norway with 78% with various options in Norway. And on cash tax installments, so this reconciles back to our cash flow statement. So you will see in the Q3 that we made tax installments of $38,000,000 And you can also see here that during the Q4 this year, we are due to settle around about $350,000,000 of tax installments, of which $274,000,000 relates to the 2019 tax return. So that's the final settlement to balance out the 2019 tax return. And then we are scheduled to make 2 further tax installments for the 2020 tax return amounting to $76,000,000 in Q4. And whilst we are currently now estimating in terms of first half twenty twenty one tax installments to fully settle the 2020 tax return, we are estimating around about $470,000,000 in total, dollars 118,000,000 in Q1 next year and an additional two $36,000,000 in Q2 2022 to fully set the 20 20 tax rate based on unassumed effective realized oil price of $40 per barrel during Q4. So if we realize anything different to that, then obviously, these first half twenty twenty one installments will change somewhat. Just a quick summary on the cash flow generation during the 1st 9 months and the buildup of that. As we said, the CFFO, dollars 1,250,000,000 We've invested in oil and gas, dollars 625,000,000 and another $81,000,000 in renewable investments, so totaling $706,000,000 which is therefore giving us a pre dividend, free cash flow of $546,000,000 I mentioned upfront the dividend payments of $246,000,000 which therefore leaves us with a debt reduction of close to $260,000,000 for the 1st 9 months and also a cash build of roughly $40,000,000 so net debt reduction of $300,000,000 for the 1st 9 months. In terms of liquidity for the company, so we ended Q3 at a net debt of $3,700,000,000 And today, we continue to have in excess of $5,000,000,000 of committed credit line, so well in excess of $1,000,000,000 of headroom liquidity at the moment. But obviously, as we have communicated previously, the RBL is now in this amortization phase. And by the end of this year, it has amortized down to $4,000,000,000 And with the corporate facility we have and the renewable facility on top of that, we will still have committed lines of $4,500,000,000 And in fact, we will have ample liquidity right out to mid 2021, at which point the RBL will amortize by another $750,000,000 So that obviously leads into our refinancing discussions, which we have communicated in the past. That's a process which is currently ongoing. Obviously, the key aim for us here is to improve the term significantly relative to what we currently are paying on the RBL. And the target continues to be to have refinanced certainly before mid-twenty 21. But obviously, the sooner we can close the refinancing, the better commercially, given that we are going to get improved terms. And as I said, that's an ongoing process, and we are estimating to have somewhere between 15 to 20 lenders on board in the new facility. So obviously, it's a process to get all of those lenders onto the same page and agree terms. But things are going in the right direction, and we are hoping to get the refinancing done sooner rather than later. And this slide, I think, articulates very well the resilience of the company. If you look over the last 9 months, extremely low cost base for the portfolio and good quality oil. So we realized, including the NGLs and gas, just over $36 a barrel for the 9 months. And Atlas generated an EBITDA margin of over 90%. OpEx, as we said, and also very low G and A costs of $0.5 per BOE. We continue to have relatively low financing costs, although we hope those will be even lower once we have refinanced and also relatively modest tax installments. So a CFFO margin of 80% or $29 per barrel of a $36 CapEx per barrel that we have invested equates to $16.3 boe, which therefore gives us our free cash flow metric per barrel of $13 a barrel, which therefore equates to roughly $550,000,000 And that more than 2x covers the dividend we have paid over the same period. And as we have also previously guided, the free cash breakeven for the portfolio when we look forward from having started off Phase 2 of Johan Sverdrup is less than $10 a barrel. So there are 2 key things coming out of that, of course. 1 is that we will remain very resilient even if oil prices remain low and volatile going forward. And the second point is, obviously, if the macro environment improves, then this portfolio has significant capacity to generate free cash flow, which will translate into shareholder distribution and continue to maintain a conservative gearing level on the balance sheet in addition to continuing to invest in the organic growth, which is the cornerstone of the company's strategy. And just looking a bit further back in time, I mean, Alex mentioned that we have had 13 quarters running on free cash flow generation, which is what you see here in the top left. Cumulative, including the sale of J. S, we have generated close to $3,000,000,000 since the Q3 of 2017 in free cash flow. And that has been resulting in deleveraging the balance sheet. As you can see, in Q3 2017, we were up 3 times net debt to EBITDA, and we are now reporting 1.7 times net debt to EBITDA. And that's despite having done a share redemption scheme of $1,500,000,000 during that period. And if you actually look at the chart in the middle, bottom middle, since we initiated the cash dividend in Q2 2018, we've generated CFFO of close to $4,000,000,000 And how we have allocated that cash generation, you can see here it's been a balanced split between reinvesting in the business. Roughly 40% of the CFFO has gone into reinvestment to continue to grow the business. And then a significant amount has been distributed back to shareholders close to 60%. A big chunk of that is obviously the share redemption of $1,500,000,000 but we've also distributed $755,000,000 of cash dividend since we launched our dividend policy. And there's also been a reduction in absolute debt over this period. So this is an extremely solid platform. And with the low breakeven cash flows we have going forward, we will have a very good platform to continue to generate good free cash flow to distribute between our balanced debt and distribution to shareholders. Then just recapping very quickly on the updated guidance we have given, increase in production, 261,000 to 100 and 63,000 BOE per day for the full year up from 157,000, which was the previous guidance. OpEx remains unchanged. The CapEx guidance has been reduced to $650,000,000 That mostly relates to phasing some of the CapEx into next year. E and A expenditure is up a little for the full year now, just reflecting a rescheduled work program on our drilling campaigns of $160,000,000 And decommissioning is also slightly up to $50,000,000 for the full year. And similarly, on renewable investment, which is mainly driven by FX movements from $90,000,000 up to $95,000,000 for the full year. And my final slide is just a quick recap on the dividends. As you know, we have declared $1 dividend per share for 2019 to be distributed out in quarterly installments during 2020. And we have now distributed 3 out of those 4 quarterly installments totaling $213,000,000 And the last quarterly payment will be made around about 8th January 2021 with the shares going ex dividend on the 30th December 2020. So that concludes the run through on the financials, and then I'll hand back to Alex for some concluding remarks. Yes. Thank you, Teitur. This is really the last slides. I'll try to go quite quickly, so we can move on to the Q and A session. But really, if I had to summarize, first of all, learning engines is showing again and again is resilience in terms of this low price environment. We've also seen an increased production guidance and we will see during the Q4 record production for the company at 175,000. Continue to be industry leading when it comes to low operating cost and also carbon emissions. And this is not just for this year particularly also when the Onstead Phase 2 comes on stream, we will continue to see this low operating cost for many years to come. On the corona, I think we said it all. I think the industry in Norway particularly and us as operator, I think we put all the action to mitigate any risk for disruption in production and also in terms of delays on project. You probably have seen also that in terms of growth, we continue to deliver. I'm thinking about the reserves increase in Edvard Grieg, opportunistic deals such as the Remitsu deal in the Barents Sea and also our continued exploration program all through the Norwegian Continental shift with a high focus this quarter on the Southern Barents Sea. High quality resilient business, really reflected by strong free cash flow generation in a period of lower price and to as I just show you to put things in context, despite the fact that we average just $36 for the 1st 9 months, we were able to generate a substantial free cash flow over $500,000,000 So really, one can say Lundin Energy is really uniquely placed to continue to deliver significant growth in value and a sustainable and mature growing dividend to shareholders in the years to come. I think those are very much proven by the numbers you've just seen. And finally, I guess, on a personal more personal note, as I said, this is my last quarter. So I guess in a way, a mixed feeling. In one way, I'm very pleased to see these fantastic numbers and hand over the leadership to Nick. And of course, I'm sad to for being last quarter because I had over the years a phenomenal time with this company and the team. Really, truly an amazing journey for the company, but also for myself. And as I said, going forward, I'm actually very pleased with the team we have in place and the new leadership. And I having worked with Nick for the last 5 years, I know he's going to do a tremendous job and he shares the same passion and I've had the last few years. So I love to him, but I think we're going to see a lot of good things in the company in the years to come. And as I said, I'm absolutely convinced the company will continue to deliver significant growth value and in particularly during this energy transition. So really thank you all for your great support over all these years. And as I said, it's been extremely rewarding for me to be to work for such a great company and also a great team of people. And finally, you can be assured that I will remain a faithful and enthusiastic shareholders over the years and I will be watching this new leadership delivering values as we've been used to do. So with no further ado, I guess we'll move to the Q and A session. We have the first question from the line of Mark Alsford. Please go ahead. Your line is open. Hi. It's actually Michael Alsford, but anyways, let's carry on. So firstly, I just want to wish you very well for the future. I've got a couple of questions, please. Just firstly on production. You're producing 175,000 barrels a day currently. And given your comments on the increased plateau production potentially at Edvard Grieg, you got Phase 2 of Sverdrup. I was a little surprised why the long term production guidance remains at 170,000 to 180,000 barrels a day. So could you please elaborate on that? Secondly, you talked a little bit about the well capacity at Johan Sverdrup exceeding the production capacity. Could you give us some guidance as to what that potential capacity is with the second also with the 12th well coming on stream? And then finally, just a quick one on for refinancing. It feels to me that the share price is suffering from the uncertainty regarding the refinancing. So could you maybe give a little bit more color as to what the financing structure you're targeting? Is it another RBL? Is it a corporate facility or a bond, for example? And really, what are the approved terms you're looking for? I'm just wondering whether you sacrifice some of that upside to get the process done more quickly and remove that uncertainty. Thanks. Yes. Hi. I'll start with the first two questions and hand over to Teitur on the third one. I mean, your first question in terms of guidance, yes, you're correct. For now we maintain the long term guidance to $170,000 to $180,000 The reason really is that there are still quite a lot of variable in the equation. One of them is obviously and that goes into the second question is the capacity, the full capacity of Johan Sverdrup. We're going to start very soon to embark in the testing of this additional capacity. We haven't had the results. So we felt it was premature to come up with a long term guidance until we know more about what the capacity of Phase 1, the full capacity of Johan Spectrope is. And so this will definitely be incorporated during the capital market in January, which also include, by the way, the Edvard Grieg. As you've seen in the slides, that was the first time this year we show you the what impact could once the Versum got into decline, we'll have a netback rig and additional production there too. So we will be clear. We'll come to you in January at the Capital Market Day once we have all this and particularly on set of capacity tested. And that leads me to the second one, which is the well capacity. We have well in excess. I mean, we have 11 wells, soon 12 wells. So when you multiply this by, let's say, 45,000 or more, you can see that we have a lot quite a lot more capacity than the current 4 170,000. So hence, now we have this capacity in wells and the plan is to test this. And there's still it's fair to say there's a high expectation for the capacity for the increase for the current level of 470,000. But I think let's we're only a few weeks away from this, so let's weigh the results. And again, this result will be communicated in January. Yes. Good morning, Michael. Just on your refinancing question. I mean the structure we are looking at is to refinance into a new bank facility, but it won't be an RBL type of structure. It will be more of a corporate style structure, which will then allow us at some point in time to issue bonds on a non secured basis and that pari passu with the bank facility. It is, as I said, an ongoing process. And I agree with you, timing is key here because we do expect to get materially better terms. So the sooner we can land it, the better. But at the same time, this is likely to be a 5 year facility. So it's important we get the terms right since we are going to live with us for the next 5 years. So you don't want to compromise a good commercial outcome for the sake of a month forward or backwards. So that is the process as we have it. Obviously, we wanted to have done this earlier in the year, but then COVID came in the way. And as I said, we now recommence that process and things are going satisfactory with landing that new facility within too long, hopefully. Yes. If I may add, investors shouldn't be concerned. It's not if this refinancing will happen. And as Teitur really rightly pointed out, it's more a match of getting the best possible results to reduce our cost. And secondly, we have time is working on a favor under the current TRYBL. We have until mid next year, but of course, we want to do it as soon as possible, particularly reaching better terms, which will actually reduce our costs. So really there shouldn't be any concern on this matter. Great. Thanks to you guys. Thank you for your question. The next question came from the line of Helane Thomas. Please go ahead. Your line is open. Hi. Yes, it's Alvin Thomas here from Exane. Alex, congratulations on a good tenure. I I think we can all say you've not done too badly. No pressure on Nick. Okay. I wanted to ask a bit about the Barents and Wisting. Now you've acquired the asset. Can you just maybe give us your thoughts on the commerciality of Wisting and how it's going forward? I know there's been Equinor's had some difficulties with some of the drilling beforehand, and there's always been a few question marks around it. And when you acquired it, what did you see that made you wanted to go for it? And I guess maybe give us a sense of how important the Barents is going to be for Lundin now to develop that commerciality for the company's future over the next sort of 5 years? And I guess second question would be on the dividend. I know probably not overly committal at this point in time given some of the uncertainty. But is it perhaps fair to say that the previous level of $1.8 per share is roughly where you think the company would like to get back to on sort of medium term view? Thank you. All right. Well, I guess I can start by saying thank you. And then to your comment and then let me move to Wisting first. Yes, you mentioned drilling and I think it is true in the past there's been some challenging issue in the drilling, but I would say all those are behind us And both in terms of drilling technology and also the appraisal, that is completed in Wisting, so there are no outstanding issue there. Really, Wisting, it's all about now completing the work and having the concepts selection, which will be leading towards the submission of the plan of development by 2022. So there's no question in my mind of the commercial activity we're seeing is no it's just about now completing the studies to submit the plan of development by end of 2022. Remember also that there's a fundamental change also is the tax relief we receive from the tax authority, which has further improved the returns the project, provided you submit a plan of development by end of 2022. So that's in terms of wasting. So we are it's a first world class project, 500,000,000 barrels oil, shallow reservoirs. And so we're very pleased to be there. And I think we made acquisition at a very competitive rate of less than $2 a barrel. In terms of the Barrens future, yes, it's no question that the Barents, the Southern Barents Sea has been a focus area for Lundin. I mean, we have 7 core areas, so there's many other areas, but Barents has always been there. And I said it again and again, it's a very prolific area. You just look at Casperic, dollars 500,000,000 Wisting, dollars 500,000,000 We also have the Alta development, which is also becoming very much in the front of our mind because of the tax incentive, which is also a few 100,000,000 barrels of oil. You have Goliad. So the balance, it's happening. People are always questioning the balance, but it's actually happening as we speak. Cat's been being developed and we think soon to have a plan to develop. And so and today, we have a high impact drilling with 3 wells and all of them have got they are great locations and I'm really keen to see the results. And I think over the years, we're going to see more and more on the Southern Barents Sea. So it's by far the story is just unfolding as far as I'm concerned on Southern Barents Sea. But it's not the only area core area for us. Your third question in terms of the dividend, I think it's difficult for me to give any numbers at this point. And as you know, there will be the new dividend will be decided in January before Q4. I would say a few things. Number 1 is that there's always been no intention to have a sustainable and growing dividend. Of course, this year has been a particular year and we've been cautious. It's true because we didn't know really the world we're heading to. I think now we have a better idea and it's more stable even though we have a second wave. But I think we there's a better understanding on this now. But you've seen one thing I can say is that you've seen the numbers that Tycho produced. You've seen our free cash flow ability even at low oil prices. And you've seen that we our dividend payment this year, we had more than 2.2 times free cash flow, so compared to the dividend we paid, so there's clear ample scope to increase dividend, but I will leave it to that for now. And this is something we will decide and disclose in end of January. No problem. Thanks, Alex. All the best for the future. Yes. Thanks. Thank you for the question. The next question came from the line of Theodor Milson. Please go ahead. Good morning and thanks for taking my questions. First, well done, Alex. Wish you all good luck with the new challenges. I have one question on production and one on dividends. First, just quick on production. Good to see that you actually have increased the permits. So is it fair to assume that the exit rate for Q4 also will be 100 and EBITDA 5,000 barrels per day such that we enter 2021 on a much higher pace than we previously assumed. And then on dividend, of course, I understand you can guide precisely on dividend. I just want to get your thoughts around dividend increase versus the tax changes in Norway? Do you think it will be controversial to increase dividend now just a few quarters after this tax change resetment. That's been very positive for the oil companies. And also in terms of gearing ratio going forward, Tycho, you showed a graph showing declining gearing. Going forward? Do you think we should expect the financial gearing at current level of the SEK 1,700,000 net debt to EBITDA? Or how should we think around the gearing going forward? Thank you. Yes. Thank you, Theodor. In terms of your question on production, I think the current increase in permit is pretty much allowing us to produce at maximum capacity both the Nedbank rig and Johan Sverdrup. Obviously, on Johan Sverdrup then we will have we will see what happened in November with the capacity, but that will be more for 2021 than it will impact 2021. So I think the exit rate of end of this year of 175,000, it's a reflection to what will come then the following year. But keep in mind that we have the we still have also to include the capacity and the test and the capacity on Johan Sverdrup. So more of all that's in during the Capital Market Day. And in terms of your question on the dividend is relevant, but I think the tax incentives, which were very welcome, it's above all to increase activities in the Norwegian continental shelf. And I think if anything, London Energy over the years, this is not the first crisis that we've been hit by another crisis back in 2015, if you remember. We've always shown that our activity level and our commitment to investment has always been very high. So as long as we can continue to have a level of investment and look for accretive value projects And as long as we maintain and we can actually reduce our debt, then I have no problem increasing dividend. So as I said, we will see in January whether we are all being equal with the free cash flow we're generating, we will continue to invest in Norway. And at the same time, we think we can also continue to redistribute the cash shareholders. So I think the 2 are going hand in hand and is finding the right balance. I think to your last one, I'll leave it to Teitur. Yes. I mean as you know, we are now publicly credit rated, and we have investment grade credit rating profile at the moment. And we intend to maintain that sort of credit rating. So we will obviously balance any capital investment desires we have with our growing dividend and also maintaining a conservative gearing ratio. We don't have a specific gearing ratio target as such, but we want to be want that gearing level to be appropriate for investment grade. Okay. Thank you. Thank you for your question. The next question came from the line of James Hosey. Please go ahead. Your line is open. Hi, good morning and good luck, Alex. And a couple of questions from me. Just first, can you clarify how the curtailment quotas actually work? The output increasing on Sverdrup and Grieg because other fields have and or aren't producing their quotas? And what's the basis for raising quotas in those two fields than others? And then second question would be on your updated long term production outlook for Edward Creek. Are you just simply projecting the iverasm starts to decline in 2022 and the shutdown during 2025 to give you that extra capacity for you then to fill? Yes. Hi, James. In terms of your first questions, well, if you take a step back, the government of Norway decided to curtail production for the 3rd and the 4th quarter. Now how this has been exactly allocated? I don't have the numbers of single fields. All we know at that time that both Edvard Grieg and our 2 main tenants were affected. Now that commitment from the government stands until year end, but of course, the reason we've been giving us a higher permit now to produce pretty much at capacity on the current capacity, it's obviously probably because these other fields and other development haven't developed or is to expectations. Beyond that, I really cannot say much more because I haven't I don't see any single numbers and I don't know how hard has it been affected or not. So I can only look at our fields. In terms of Edvard Grieg, the I mean, we always shown Edvard Grieg with the current commercial arrangement. And so that was pretty much on a gross basis, Edvard Grieg producing 95,000. The reason we've always been standing at 95,000 is obviously for to honor the commercial arrangement with Iva Orson. Now the increase that we're showing now for the first time is really related to the start of decline of Ivarsson, which we assume not next year, but from 2022. And really, this is the main assumption in terms of giving us more capacity to Edvard Grieg. Okay. Thank you. Just one follow-up on the curtailment point. I mean, are the curtailments you're facing on Sverdrup still, is that actually limiting the scale or duration of the testing for capacity you can do in Johan Sverdrup? We have flexibility. As you know, we have to achieve a certain number, but it's not a daily number, but it's an average. So if we in terms of the testing, we have absolutely no limitation because no matter where we go, then we can reduce production if we want to meet the quota. So there's no limitation in terms of testing the capacity. And so that will not I'm foreseeing to be really able to test the capacity in the coming weeks. Okay, great. Thank you. Thank you for your question. The next question came from the line of Hal Sandton. Please go ahead. Your line is open. Yes. Good morning, Alex. It's Al Santon. So Alex, I wish you happy sailing. For everything else, I mean many of my questions have actually been answered by Michael at the start. But can I just check a couple of things in terms of I mean, a lot of the numbers in terms of cash flow you've been talking about look like they could get spoiled in the Q4 by that tax bill? So I'm just wondering if that is very much a one off. Last year was so exceptional that calculating the 2020 cash payments was always going to be quite difficult. And then can I also just talk about buybacks? I mean is that on the agenda at all at a certain share price? Thank you. Yes. Good morning, Al. Yes, I mean that tax installment in Q4, which relates to 2019, that is a one off. And as I said, once that's been paid, then the 2019 tax bill has been fully settled. And the way the tax authorities in Norway are managing this going forward now is that, as you can see in our first half twenty twenty one tax installments, in prior years, those would normally be the same size as the ones we have paid in the second half twenty twenty. But now they've changed that so that the catch up payment, if you have under installed in the first two or three installments in 2020, then you need immediately to adjust your tax installments in the first half twenty twenty one, and that's what we are projecting now that we have to increase the tax installments that we have in Q1 and Q2 next year. So by the end of first half next year, we will should have fully settled the 2020 tax bill. Okay. Yes. And on buyback, I guess I will simply say buyback is an option. Obviously, in this current environment, it becomes more and more attractive. And so it's something we're actively looking. And at the end, it will be a balancing act because we want to continue be able to pay and sustain dividend in the long term and increase dividend. But of course, we are mindful and it's buyback. It's also an option for the company that we're actively looking. Thank you for your question. The next question came from the line of Sais Khan. Please go ahead. Your line is open. Hi. It's Sashi Chilikuru from Morgan Stanley. Wish you all the very best for your future endeavors, Alex. I had two questions, please. The first one, I appreciate you're not necessarily giving specific targets, but I was just wondering on in terms of the priority of cash flow, you've kind of highlighted what you have done previously. I was just wondering if that is pretty much the priority going into the future as well, with dividend being or shareholder distribution being the top priority for additional cash flow and followed by CapEx and followed by net debt. Any guidance on what your priority would be quite useful. The second one is regarding your the Polmark exploration. Well, there have been some press reports suggesting some drilling issues. I was just and drilling being stopped as well. I was just wondering whether drilling is actually going on, whether there's any delay in the drilling of that well and whether any if any delay that has any subsequent knock on effect on your other currency wells? Thanks. Yes. Hi, thank you. I'll start with the last questions. That was very simple. You're right, there's been a we had some issue in the beginning. This is those are behind us. And as we speak, we're drilling. So really, there's been very little delays. And in terms of will that have an impact for the other wells? No. I think so now is, I would say, business as usual, but obviously something we've taken very seriously and we're learning from it. On your first question, which is priority of cash flow, I think as you said, it's a balancing between debt, CapEx and dividend. I think you've seen, as Tycho shows you from the past, our share of cash flow distribution has always been significant. I'm not prepared here particularly to give a specific guidance of debt CapEx dividend and what has happened perhaps in the last few months is not necessarily a firm guidance of what will happen in the future. I think I'm sure our colleagues at the Capital Market Day will once we have defined a new dividend, we'll give more color on this. But it's always going to be, I would say, a balance between these three. And but cash redistribution, it's on the forefront of our mining. It's an important part of the strategy of the company. Thank you for your question. The next question came from the line of James Thompson. Please go ahead. Good morning. Great. Thanks. Alex, I'll echo everyone else's sentiment and wish you all the best for the future. I have a few questions, if I may. I just wanted to start with Edvard Grieg. And just I suppose you could talk about how much you're going to expect to choke back the main Edvard Grieg field with Rolvsnes and Solvay coming on next year. And if you look at the chart, you're still expecting Iverossen to be on plateau for all of 2021. And the second question really on Edvard Grieg is, obviously, earlier in the year, you received your carbon low carbon certification on the field. I wondered, is that actually making any difference at all now in terms of kind of refiner appetite for that crude? And could we potentially see a premium coming through, given clearly there's such a market focus on low emissions at this point in time? Yes. Okay. On the Edvard Grieg, your first question in terms on much Edvard Grieg, Solvay and Robsen's, I think it's difficult to answer this question. I think the important thing is that we have now there is certain capacity constraint. But as you see over the years, this capacity will be able to fill in more than we've been in the past. So I think what we you have to look at Edvard Grieg, Rolvsnes and Solveig as one area. And at times, we may choke back some wells in Edvard Grieg or Solveig until we have full capacity. And so it's difficult at this stage to really specifically give a number, but because I see really this as a unit and but it will give us a lot of flexibility and a lot of additional capacity. I think that's the best way to look at it. In terms of the low carbon, Eva Gregor, you're right to point it out, we were the 1st company actually to have this low carbon certification. Has had has this had any impact? I would say it's too early to say. I actually believe in the future is the way to go and I truly believe that eventually this will add value to shareholders at the end because it may imply a premium to our product. And also, I guess, what we do see, but that's more generic in terms of a low carbon strategy that we do see impact today in terms of, for instance, on the financing because we can link our performance on the ESG, in particular, the E side, linked it to the terms we're going to negotiate with the banks. And if we are below certain target, that will lead to better terms. So there are we're starting to see benefits of being 1st in class when it comes to carbon footprint. And carbon certification is one part of the puzzle. Sticking with thanks, sticking with the emissions, I mean, surge up is only 0.2 kilos in Q3. That was phenomenally low. What was driving that? And when will Sverdrup be certified? Yes. As you said, it is phenomenal. I mean, 0.2%, you could say that it's almost 0. It's hardly no emissions. Think we're learning. This is the 1st big field that was fully electrified, and we're learning from the performance on Johan Sverdrup. It's going to be really interesting to see also Edvard Grieg. And of course, for us, the lowest emissions, the better because that means to reach a carbon neutrality will require very little in terms of offsets. So that's really good news. In terms of the certification of Johan Sverdrup, it's a good It's something that has been discussed. I'm not the operator of Johan Sverdrup. We obviously everybody is well aware of what we're doing. And we hope soon we will be joined by many other fields because and hopefully, Jans Sertrup will be 1. So I have no information specifically on this, but I know it's been discussed at the license. Okay. Thanks. And last one for me, so I'll separate topic. Clearly, the refinancing is, I think, sort of top of mind for the market. And obviously, you've given us a bit of a runway there. But is there any scope to get this wrapped up before the year end, Alex, before you hand over the reins? Yes. I mean, it's tighter here, James, but yes, that will certainly be the target. But above anything else, we need to get the right terms. So that is what the focus remains from our side. And obviously, it's a negotiation with the counterparties, of which there may be 15 to 20, but doable this year for sure, yes. I guess, yes, end of the year, maybe. I mean, our motivation is to do it as soon as possible so that we can have improved terms, which will have a direct impact on our cash flow. So and that's really our main motivation. As I said before, I'm not concerned at all in terms of our ability to refinance. Okay, great. Thank you very much. I'll hand over. The next question came from the line of Jean Charpout. Please go ahead. Your line is open. Good morning. This is Jean Chanton from Societe Generale. Alex, as you sail away, we'd like to thank you for your engagement with the sell side. And I will use your last earnings call as an opportunity to ask about the following, if you don't mind. If we think about the Barents Sea, we have seen some Norwegian explorers retreating from the area. And it also appears that there is less there are less companies basically willing to put money to work out there. So following the Whisting deal that you announced a few weeks ago, have you seen an increase in interest coming from federal oil and gas companies to farm down Barents Sea acreage to you? And second question, coming back to this tax changes time frame, since you are participating to this ongoing rise to FID with those Norwegian oil companies by year end 2022, have you entered any new contractual relationships with Oilfield Services companies of late with a view to minimize future cost overruns and risk of delays? Yes. Hi. Thank you for your kind words. And moving to the Barents Sea, I mean, yes, the activity level in general, difficult to say. I mean, you can measure it. Of course, there's the M and A side and the WIPs in the Mitsu deal. Will there be any more activities? Probably, I don't know. What I can measure is also in terms of licenses appetite. And I think in general, there's still quite a high activity level. But it is true that in the balance, we've seen really few players that have been active over the years. And I think you can I'm thinking about Equinor, I'm thinking of this level, loan in energy, AKBPP and to some extent also VAR and ENI. I think and that's a fact in itself because the fact that we only few companies into such a large area means that we don't really see the truth of the Barents Sea. But we certainly from a Lundin Energy point of view, we always felt that the Barents Sea was an area to be, an area where you can find large resources in an area really that is no more expensive than any other areas. There's a bit of logistics challenge. But overall, drilling a well in the Barents and developing a project in the Barents shouldn't be really more expensive than in an OB GYN C, for instance. So our focus more than the balance is to continue to invest in very value accretive projects with low cost and that will remain our main focus. So we'll see. I'm sure with if there are going to be more discoveries, I'm sure you're going to see a lot of people back into Southern Barents Sea with a lot of interest. So that's in terms of the Barents Sea. I've lost track now. Your second question was? Alliances. Alliances. Alliances. Alliances with other. I think we're happy where we are now. We haven't specifically done new alliances or sales personally. We've through our Solvayk and on the subsea tieback, we already had the contract in place. Maybe in future, we're going to look at other ways to conduct a business. But overall, our main focus will always be in cost. So if that if an alliance will have an advantage, so be it, but it will be our main focus will be mainly to find the best possible way to reduce our cost and for any development and that maybe through alliance or maybe not. It's difficult to say at this stage. Day. The next question came from the line of Anders Holp. Please go ahead. Yes. Thank you guys for taking my questions. Of course, Alex, congrats on a very successful tenure. It's good to see that despite Ashby's retirement and now your retirement, it's been almost no notable change in terms of strategy. That's good to see. My questions are 2 this morning. So first of all, 22 to Evergreen. I just want to clear something up. And you might have touched upon it in the call, so apologies if I missed it. But looking at your chart on Page 10 here of Edvard Grieg, it looks or am I writing in interpreting that the Edvard Grieg main reservoir is now expected to hold its plateau up until 2023? And then hence, the bump is coming from SUE and DOLSYS? And the second question is related to actual the crude oil price development as we see so far in this quarter. It seems that the supercontango development that we saw in Q2, it seems to be reemerging. The difference is now $5 per barrel on next month's contract. And it's just wondering if you're starting to see, obviously, not a huge spread out you saw in Q2, but are you starting to see some similar patterns in the price development on the crude oil barrels that you sell right now? Thank you. Yes. Thank you. And thanks for the comment. I guess on the more strategic side, I would say, Ashley planted the seeds. I made sure that they grow fast and high and Nick will make sure they grow even faster and bigger. So in that point, I think we're looking good. And the on your question of plateau, yes, the current guidance is now that plateau in Edvard Grieg has been extended to end of 2023. That's correct. And then further extension of plateau is possible, but depends on the 3P and 2C. So we need to account for more 3P and 2P continuing resources. And if we do, then there's scope to increase the plateau production up to end of 2024. And then of course, you elevate exploration and further upside, but that's not quantified at this stage. And as I said also, with more capacity being available, obviously, the combination of Edvard Grieg, Solvay, ROSENS will give us a lot of flexibility beyond the for the 3 P and II C. So a lot of things happening in Edvard Grieg and the Greater Edvard Grieg areas will continue to outperform. No question about it. And then And Anders, yes, on your question on crude oil pricing, I mean, yes, we are seeing some level of softness over the last few days, but it is nowhere near to the volatility that we saw during the Q2. And we are continuing to sell all our cargoes at reasonable prices. Obviously, the dated Brent differential is hovering around about $1.50 sort of discount to the ICE Brent. And that's not out of line if you look at that historically. But and the contango, I guess, is speeding up a bit with this COVID second wave scenario playing in. But we are far from the state of panic that was in the Q2 at this point. Very good. Thank you. Thank you for your question. The next question came from the line of David Farrell. Please go ahead. Your line is open. Hi, good morning and congratulations, Alex. A lot of questions have been asked already, but I did have one, which I was hoping to ask. Given what's going on in the oil markets currently and the potential for OPEC plus to continue curtailments through into 2021. Do you think there's any risk now that in Norway they may reciprocate and continue to have the permits certainly through the 1st part of 2021? Yes. Hi, David. Yes, good questions. The straight answer is, I don't think so. The situation we were facing back in March was quite different in a sense that you had 2 storm. 1 was the obviously the pandemia and the reduction in demand and the second one was the OPEC in the beginning that was doing exactly the opposite of what they were supposed to do by flooding the market with crude. So we had a really extraordinary situation at that time when everybody took note of that. And since then, we've seen OPEC a much better discipline from the OPEC side. And I think we have now a much better understanding on the world even with the 2nd wave. So I don't foresee at all post this year's further curtailment from the Norwegian. And I haven't had any signal on that front whatsoever. Okay. Great. Thanks very much. Thank you for your question. The next question came from the line of David Round. Please go ahead. Your line is open. Thanks, guys. I'm going to be really brief. There is a bit of a rush to sanction projects at the moment to take advantage of the tax benefits, obviously. If all these go ahead, do you think there's actually capacity in the Norwegian yards? And how are you thinking about potential cost inflation there? Yes. I don't think so. I mean, you're right. I mean, this tax has been I think it's been very smart from the Norwegian government and had definitely has this impact. And we if you look at impact on ourselves, we are now able to move forward certain projects that we may have not done before. Will that really create our capacity issues on the Norwegian continental shelf in the yard? I don't think so because we don't really have the magnitude of fields such as Johan Sverdrup at this time. The largest field now, it's Catzburg and Wendell Wisting. But at this point, we don't see that concern in terms of capacity. I would say it's more like a bowl of fresh air for the yards in general and we're not at capacity. So even in terms of inflation, I don't see this as being a big risk. Okay. Great. And best of luck. Yes. Thank you. Thank you for your question. We don't have any other question. Thanks very much, Roberto. We've just got 2 from the web, which I'm conscious of time, but I think are worth asking. One of the questions is, can you talk about how you'll reach full replacement of your 500 gigawatt hour per annum power usage? You're invested in Finnish wind and Norwegian Hydropower. What types of additional investments are you looking at? Yes. Today, pretty much, we are 2 third on the way. One project, the hydropower project is now up and running and will be up in full production soon. And we're currently developing this project wind onshore wind farm in Finland. And when the wind farm in Finland will be up and running in addition to the Adjo project, we will have replaced and offset 60% of or about 60% of the electricity we're consuming on the with CRI. So we left with a 40% space to fully replace the 500 gigawatt hour that you mentioned. That 40% really depending on the equity position, but if you take a position of 100% on a sizable wind farm, that would be sufficient to fulfill our full replacement offset. So probably, you're looking at 1, maybe 2 projects if we take a lower equity position in some of the projects. So that's all it remains to be done. Okay. And lastly, can you elaborate on your options at Alta and the feasibility of delivering a PDO by the end of 2022 for the Alta project? Yes. We're currently looking at Alta in order to be able to submit a plan of development by 2022, Alta will have to be likely a subsea tieback. So we're currently looking at the different options. Also comes the selection in terms of what would be the most feasible development for such a tieback. So it's early days, but we're working very actively because OAIM, we see really benefits of this tax incentive and we see good rate of return and a possibility to have this project through the whole of commerciality. So I think more details on this one next year once we have completed a lot of the ongoing work. Very good. Thank you, Alex. Operator, I think that's the last question from the line. So I'd just like to thank everyone for listening in. Of course, if you've got any more questions or need further detail, please don't hesitate to contact us or me.