Thank you. Good morning, good afternoon, everyone. I hope you're all well. Welcome to the Golar LNG Q1 2020 results presentation. I'm Ian Ross.
I'm CEO of Golar LNG. Today, I'm joined on the line by our new CFO, Calum Mitchell Thompson and Stuart Buchanan, Head of Investor Relations. Before we get started, I'd like to acknowledge the huge effort by Golar staff, both Pure based and of course at Sea, for their effort in keeping the business running during this unprecedented disruption due to both COVID-nineteen and depressed commodity prices. Their dedication to Golar and ultimately to our shareholders is quite remarkable and worthy of this mentioned. The save our people remains our first priority.
By a healthy workforce, we can deliver for our customers. Without delivering for our customers, we won't make any money for our shareholders. It's that simple. I'd like to draw your attention to forward looking statement on Slide 1. And if we turn Slide 4, let me give you some highlights before Calum takes you through the numbers in more detail.
Today, we report an adjusted EBITDA of €76,000,000 on revenue of €123,000,000 for the quarter, which is driven by a solid FLNG performance and strong seasonal results in shipping. Our time charter earnings of 62,000 per day for Q1 2020 represents a 58% rise over the same period last year. We continue to derisk our shipping portfolio and ended the quarter with a shipping revenue backlog of 126,000,000 euros Our FLNG operations made 100 percent commercial uptime throughout the quarter with reduced operating costs and stable EBITDA generation. And in power, we reached commercial operations on Sergipe power station, which sees the commencement of a 25 year PPA based on facility availability and a power plant that can be over dispatch with 60 days notice, which in turn gives great potential for additional income from Merchant Power. During the quarter, we had 3 days of dispatch.
More on these segments later, let me firstly welcome Calum to his first results call for Golar and to take us through the numbers. Thanks, Gael.
Thank you. And if you turn to the next page, Page 5, the Q1 2020 financial results, I'd say it's that echo what Ian said about the dedication of the staff in these tough times. And normally, one would be able to meet many of you in person on this call. So I apologize that her consensus is such that we have to do it this way, but it should work. Turning your attention to the summary results.
You can see at the bottom of the page the adjusted EBITDA in the Q1 2020 column that Ian referred to, dollars 76,000,000 of adjusted EBITDA, which compares very favorably to the $63,000,000 earned in Q1 2019. As you know, our business is seasonal, at least the shipping business is seasonal. So Q4 has tended to be a better quarter. Secondly, the €76,000,000 is a small beat versus NASDAQ consensus. Where does that €76,000,000 come from?
Well, you can see here from We as you'll see, for those who are familiar with Golar, the U. S. GAAP divisional split is shipping and corporate together, sometimes referred to as vessel operations. And as we go through for this deck, we're trying to we started a trend, which we'll try and continue of splitting out shipping and corporates. And you'll see more of that later.
So that €34,000,000 of the shipping and corporate EBITDA is $43,000,000 of shipping and minus $7,000,000 of corporate. And again, that $43,000,000 of shipping relates to the positive work that the team has done that Ian referred to. The second point to note is the FLNG number of $42,000,000 EBITDA, adjusted EBITDA is also stable, and that reflects the nature of the business. As we think of the business and as we derisk the shipping portfolio to try and send the ships, the contracts out for longer, so that is supported by the very stable nature of the Italy and FLNG business. I would also draw your attention to some of the other movements.
You will see that our contractual debt shown at the bottom of the page is relatively stable. That's effectively there are 2 movements underlying that. There is a $95,000,000 drawdown during the quarter on the Gimi facility. Remember, the FLNG Gimi is under construction, which is equally offset by a repayment of €70,000,000 on a margin loan and some €24,000,000 of scheduled debt repayments. I would also draw your attention to the interest rate and equity derivatives number, which occurs under net loss or income given COVID-nineteen, given and therefore interest rates have fallen.
As you all know, we've seen a mark to market on our swap book of a drop of between 112 and 100 and 15 basis points, and that triggers a derivatives loss. In previous quarters, we've had some gains, and there a very limited cash impact that is below the line. So the key message from this slide, stable FLNG EBITDA, shipping favorable compared to Q1 2019 and an adjusted EBITDA at €76,000,000 which is a small feat versus net debt consensus. If you now turn to Page 6 on my version, adjusted EBITDA development over the last 12 months, You will see at the bottom left of the page the €76,000,000 As always, we show quarter on quarter evolution on the left side of this page, and we also show last 12 months quarterly evolution on the right side of the page. Key messages from this slide, the 76,000,000 compared is lower than the Q4 2019, as I mentioned at the start of Q4 2019, the Q4 in general tends to be one of the better quarters.
And the movements that have occurred between Q4 2019 and Q1 2020 to highlight, you can see the 15,600,000 dollars drop given the lower TCE rates that Ian referred to, one vessel being withdrawn from service to go into conversion, offset by an increase in the utilization rate from 90% to 94%. And I'd point out that the TCE rate that we issued of $61,500 is an improvement on 'nineteen TCE rate, which is certainly 300. The point to note in this left hand part of the chart is that we've been working away at costs and cost cutting, and you'll see administrative expenses are down. I'd say that I think for many companies, COVID-nineteen has seen a reduction in administrative expenses, and we're working to see which of those cost savings can remain permanent
and which are
a function of the unusual times in which we find ourselves. The right hand side of this page shows you, as I said, the evolution of Q1 2020 last 12 months EBITDA of €268,000,000 as compared to the Q1 2019 last 12 months EBITDA of €22,000,000 Again, that is broadly I won't go through the different movements, but if people have questions, we can do that. If we turn now to the next page, the development of 2020. Facing liquidity constraints, we feel that one of the resilient nature of our business that Ian referred to at the start, the stable EBITDA from Hilli and even within the shipping business, That is something that puts us in a more resilient place than many. But nonetheless, liquidity is a focus for everybody in the current environment.
We imagine, therefore, it would be a focus of yours. So we wanted to set out an explicit detail how we see our liquidity having evolved over the quarter. And to be very clear with you, we anticipate as we look for what we anticipate to be the current outturn for the remainder of the year, we feel liquidity is sufficient for our group needs. We don't feel the need to draw down on any specific additional facilities as others have done. Let me spend a little bit of time going through this because this is obviously an important topic in the current environment for all companies.
On the left hand side, you can see the 31st December 2019, our cash balance, dollars 375,000,000 split between unrestricted cash and restricted cash. For those less familiar with the group, a certain portion of our cash is tied up with LCs, vessel financings and other debts and pieces, and we split that out separately. During the quarter, we had operating cash flow of €86,000,000 That's defined at the back, and I'll spare you there the detail. We had a net CapEx of minus 1,000,000,000 that is CapEx that we spent left the debt drawn down to fund that CapEx. So minus 1, it's not that we haven't been spending CapEx.
We have Golar is very much a growth business that is building our assets. But we've netted that off against the drawdown. You'll see the debt service that remains reasonably stable for the quarter. Then the 2 key moments to note is during the quarter, we repaid $70,000,000 out of $100,000,000 balance outstanding on a margin loan, leaving a €30,000,000 balance left at the end of the quarter. So that's the €70,000,000 margin loan repayment.
And in addition, for those of you who are familiar with the group, remember we have a total respond swap in place, which was part of the buyback program. That was unwound during the quarter, and that saw a repayment of £73,000,000 So we closed the quarter with £235,000,000 in cash, split between restricted and unrestricted cash. For those of you who are interested, you'll see the reduction in restricted cash, which is associated with the change in the total return swap that I just mentioned. What about the remainder of 2020? Well, we are exploring 3 things, which we'll describe at the end in terms of financing.
We are looking at refinancing the existing €150,000,000 bilateral loan, which is due in November 2020 and the remaining $30,000,000 balance outstanding on the margin line, that is due in August 'twenty. We have plans for that. We're in detailed discussions with a number of banks, and we feel that, that refinancing is very much routine. One can never say everything. We're not complacent in this current environment, but we feel positive about that outcome.
Secondly, we want to preemptively focus on the refinancing of 1 of our vessels, Golar Seal, where the financing is maturing in January 2021. We have detailed discussions with a specific leasing company, and we have term sheets that are bouncing between us, and that is up for credit approval with them very, very shortly. And then finally, you will have seen in the press release that there are 2 vessels where we've had approaches to vessels, to our existing companies, and we're opportunistically exploring discussions. And those discussions were are very well advanced. So it is fair to say those 3 groups of pre financing are important, but we do feel that they are routine.
And when we look at them alongside the anticipated CapEx and operating cash flow that we feel we will earn, we feel we have sufficient funds for group needs. I would make the point that in the current environment, forecasting out much further is difficult in the current environment, but we have a fairly detailed approach to cash flow forecasting and a fairly conservative approach to how we stress test that against shipping rates. So with that, as a conclusion, I apologize for the detail, but in the current environment, we thought it was important to be specific and clear. Let me turn back to Ian now to take you through the division by division review.
Thank you, Calum. Turning to Slide 9 on the deck and shipping. Our revised shipping strategy that we've been discussing with you now for many quarters is contributing well, we think, to our improving TCE and shipping growth story, resulting in that quarter on quarter growth from 39,000 a day in Q1 2019 to 62,000 a day this quarter. And you can see the adjusted EBITDA profile on the graph together with the utilization ramp up, and that's clearly part of this strategy. Q1 has had quite a cocktail of pressures on the shipping market.
In addition to the seasonal long term, we've seen demand destruction caused by COVID-nineteen and oil price linkage, leading to LNG spot price dropping to around $2,000,000 per annuity at the end of the quarter and with some cargoes canceled in the quarter, mostly from the U. S, and more cancellations to follow during Q2 December months. The effect of these items are a reduction of tonne miles and less structural tightness in the sector than we originally thought. Spot rates fell from a high of $130,000 in October to low to mid-40s by the end of March. Now offsetting this is some new production coming up in the U.
S. And the potential for deferral of non committed vessel deliveries over the next couple of years. Industry analysts are now forecasting that 2020 LNG production will be between 1% 3% higher than 2019, so similar profile. And finally, we have the energy flow curve for Asian delivery currently in contango towards the 4th quarter, and that may justify some floating production and an associated pickup in rates. You can see from the graphs on Slide 10 that we continue to grow shipping revenue backlog and lock in utilization for the year.
If we compare the current position with 12 months ago, and we can see that we have 6 times as much revenue backlog at this time last year. And with the current market volatility, we believe this approach will help insulate us from a further downturn in the shipping rates over the coming months, while having enough spot capacity to enjoy the upside as and when it comes through. We expect Q2 TCE to be around $40,000 per day. If we spend the last few minutes talking about how lower LNG prices are impacting the shipping market, then let's turn now and talk about how lower LNG prices create upside for Golar in certain segments. Turning now to Slide 12, the current LNG market.
Two points to make for this slide. Firstly, with all of the FID deferrals of newbuild projects that we're seeing, particularly at onshore sites in the U. S. Gulf Coast, we believe the industry will reach a point where some projects will go ahead. But only those that have the right combination of gas supply, gas supply cost, offtake agreement, liquefaction CapEx, volume and speed to market.
The challenge of many of these larger U. S. Gulf Coast projects is that we need huge volumes of production to generate CapEx economies of scale. And with FLNG, we can deliver world class liquefaction costs with a relatively small volume add in the shortest time between FID and the 1st cargo, with remote building and an Asian shipyard and therefore minimal impacts in permitting and shore. As the cycle moves back towards supply increases, we believe our proven FLNG units will be
at the front of the queue.
And the second point relates to LNG as a substitution, which is core to our downstream business, Angola Power. If you look at the tables on the bottom of Slide 12, we compare energy cost per 1,000,000 BTU equivalent. You can see the impact of the global reduction in coal, oil, diesel and LNG pricing over the last few months. And not only is LNG proving to be cheaper and clean in the field and diesel for power generation and transport, but it's catching up to coal in Europe and is beating pipeline gas in China. So how do we benefit from this?
And let's turn to Slide 13 and FLNG performance. Our FLNG unit Heli Episeyo Offshore Cameroon has delivered another steady performance in quarterly EBITDA. We're currently offloading the 39th cargo. The message on Hilli is simple. It's reliably producing L and D accommodation, generating cash consistently.
We haven't missed a single cargo. We're generating the most comprehensive operating experience of any flowing LNG company in the world.
And let's move to the
Gimi conversion project on Slide 15. You can see a nice picture of Gimi in dry dock. I think last quarter, we showed the rusty old lady heading towards the dry dock, and now you can see she's nice and painted. As previously advised, our customer to the 20 year FLNG lease and operating agreement, BP, served Golar with an FN delay claim as a result of coronavirus impact around the globe. He maintains that the delay is still in the order of 1 year, and Golar continues to engage in clarification and active dialogue on the subject, and I hope that discussions remain confidential at this time.
But I've got 3 brief points to make on Gimi. First point, as I said, we remain in active discussions with BP on the matter. 2nd, late in advanced and positive discussions with our partner and our major contractors on a potential reschedule program that takes into account the deferral of work and associated capital milestone payments. Thirdly, if this delay is implemented, it will result in a substantially derisked project from a scheduled point of view and an improved liquidity position on the project through 2022 with the final outcome and financial consequence of the delay dependent on the ultimate due to the delay and cause of the delay claimed by BP. On the FLNG pipeline, while nothing is clearly going to crystallize in the short term, we're still engaging with several companies around specific projects for both our Mark 1 design and our Mark 2 rebuild, to shaping up to be equally as competitive as Mark I.
We think this continued interest in our FLNG experience will position us well for the future. Turning now to downstream, Slide 16 and Golar Power's progress over the quarter. So we celebrated the commercial operations of Sergipe plant on the 21st March, which sees the commencement of the 25 year EBITDA with capacity payments now started. Concurrent with the plant reaching COD, Celsius, the plant operator, has now commenced payment for charter hire of the Golar Nanook to Golar Power. Back to the 21st March and throughout the quarter, the power station was generating electricity during commissioning.
And when we add the 3 days of dispatch and at the end of March, we ended up the quarter with having produced just under 400,000 megawatt hours of power and a plant utilization factor of 12%. The average price realized for all power generated was just BRL 140 per megawatt hour. So the plan and the FSA, you're generating base EBITDA for Golar Power. But what else can we do right now to generate more income from Sergipe? Turning to Slide 17.
We have on the left hand side the North region of Brazil, and that's the region that Sergipe sits in, the met order for thermal power plants. The orange bars of the CDU or spot price, and the blue bars show the capacity. And as you can see, Sergipe is right at the top. And that means that we're not called the dispatch. It is the most competitive cost competitive thermal power plant and will have the greatest opportunity to create income from merchant power.
It's important to remember that the PPA requires 60 days of this price of dispatch, which means that there will clearly be times when Sergipe is free to generate emerging power. Back to the page, we show a graph of the spot electricity prices against time over the last couple of years. And we can see the sector is cyclic, with higher spot prices typically running from May through October and a small blip in January February. The green line is the plant breakeven based on contracted dispatch, but the red line shows the breakeven spot price that must be achieved for the plant in merchant mode, assuming in this case, we put an LNG purchase price of $3 per MMBtu.
And as you
can see, there are many times in the year that running such a pay and merchant board will be profitable. And in actual fact, dollars 3 is probably a bit high as we talked about earlier in that government closing level. Just to give you an example of how profitable the table below illustrates the potential EBITDA for burning a cargo of LNG through the power station, and that takes about 15 days. So for example, if a cargo is purchased at 2.50 dollars and the prevailing electricity price is BRL 300 per megawatt hour, then this cargo, burning whole cargo, would generate around $20,000,000 EBITDA. This is on top of the capacity based payments.
What else for Sergipe? Well, in addition, Golar Power started the process for the installation of the pipeline that will connect FSRU Nanook to the regional gas network, and we've commenced the customer acquisition process for that. Slide 18 is a reminder of our small scale LNG hub and spoke strategy. It starts with an FSRU hub located at the terminal and from its hub we have fleets, spokes or channels to market. The first is from the FSRU to shore via gas pipeline to a large industrial customer of gas or a power station.
This is generally the anchor customer that underpins the initial investment at the terminal. What we've done at the Sajipe is a helpful effect. The second is to break bulk from the FSRU into small scale LNG vessels and transport it into neighboring geographies for further distribution to midsize or smaller scale customers. The third route is by putting LNG directly into ISO containers and moving them by truck or barge to secondary users deep inland where there's no connection to gas pipeline or reticulation and where the opportunity is there to displace more polluting and expensive fuels with gas. So turning to Slide 19 for an update on the development of the next terminal at Barcarena and our progress on small scale.
At Barcarena, Golar Power continues to make good progress with EPC contractors and equipment suppliers concurrent with optic discussions. Permitting has been slowed down a bit. However, the project does remain on track for a scheduled FID for the terminal before the end of this year. The FID for the car station is likely to be around the middle of 2021. We're also making good progress on the potential for an FSU to be located at Zuwaffe and permitting progresses as well for the terminal in La Santa Catarina.
We continue to look at more international locations that may be suitable to replicate this model. Our partnership with BR is an important channel for the FSRUs into the target customers. BR has 95 supply bases, 7,600 fuel stations throughout the country, and that relationship and its associated planning is progressing well. And again, in small scale, slowed down a little bit once more by COVID-nineteen. We've committed to a 1st day commitment with 3 customers and a committed volume of 113 1,000 cubic meters per day of gas, it's a small start, but an important one that we feel proves out the model.
Total CapEx for the 3 customers is around $8,000,000 and we will be generating $7,000,000 in EBITDA in 2021. In addition, we're currently negotiating contracts with a further 21 customers associated with 600,000 cubic meters of gas per day and similar economics. And importantly, we're in discussion with around 200 more customers who've already signed an LOI relating to further 6,000,000 cubic meters of gas per day. And whilst the COVID-nineteen issue is slowing the team down a bit, we're now making real progress in small scale. It's a low CapEx, fast payback business that's economically attractive to customers whilst helping clean up the planet.
We think this is a good story and so do others. And whilst we have nothing concrete as yet, we are receiving interest from potential strategic partners that we can potentially work with to accelerate the Golar Power of Growth Stoli, particularly outside Brazil. So if we turn to Slide 21 now, highlighting the launch of our first ESG report, which is web based and details our progress today on our 5 key focus areas: Health and Safety and Security, Environmental Impact, Energy Efficiency and Innovation, people and community and governance and business ethics. I've
heard some comments
from the Board of ESG plan, and we look forward to having further discussions on the TIRWIC in due course. So winding up and summarizing our priorities on Slide 22. We will continue to derisk shipping. In FLNG, our focus is to conclude the position on Gimi and to continue to progress the discussion for potential expansion and extension of HIT. In downstream, we'll continue to push build out of small scale and develop the terminal at Bacarena.
We'll focus on concluding the refinancing activities that Callum discussed and of course, we'll continue to push for a sustainable reduction in G and A and simplification of
the Go Group structure. With that,
I'd like to hand you back to the operator for Q and A.
Okay. Ladies and gentlemen, we will now begin the question and answer session. Okay. Our first question comes from the line of Kim Hoexter. Your line is
now open.
Great. Good morning. Ian Callum, welcome. So, Ian, just obviously, I think the one to start on is your thoughts and progress on the shipping spin, if there's any update on your thoughts, is that just off the table in this market and kind of you just proceed as planned and then your view of the mix now you've improved, you noted the amount that's contracted versus spot. What's your thoughts on increasing that in this environment where rates are today?
Or do you kind of like the mix of almost fifty-fifty?
So first question, nothing's happening immediately around the shipping spend. The 4th the final point I made in the summary relates to that good old chestnut of group corporate simplification. So we haven't given up. We're continuing to explore different ways to make the company comprised of separate investable components that we've as we've discussed previously around the difference in shipping, FLNG and Golar path. We continue down that path, and we'll update you when we've got something to discuss on that point.
Around shipping, I think from our point of view, we like the structure that we've got. We like the profile that we've developed. I think we're building a defensive strategy across the portfolio that we want to protect from that and leaving that opportunity for the upside, whether that's through a contract structure or a couple of spot ships to just to take advantage of any upside. So in doing that, we are happy to take on more term business as it comes along. Obviously, doing that in a very low priced environment is more tricky than it is when it's on the hike.
But I'm just very pleased with the progress that our shipping team has made, particularly with the additional analysis that we're doing and using this to position. So the short answer to your question is that I would like to see a bit more of contracted term business and certainly can compare where we were a year ago, we're great, improved down average.
Thanks for that, Ian. And then just following up on the Gimi. I'm sure you're limited in what you're able to talk through, but maybe you can just walk us through the process. Is it something that you move toward arbitration? Is there any court system that you progress with?
Or does it just stay at customer discussion levels and proceed from there?
Yes. So yes, you're right. We have a process. Under the terms of the release of the operating agreement, we have a process to follow that determines cause and remedy of any close to M event. So that process is underway.
And importantly, it's expressly defined in the LOA. It's a confidential process. So I'm sorry, I can't see anything more on the detail. We will give a full explanation of where we end up when we've got it formally agreed with both BP and Cretis. I think that's helpful to
know that there is a defined process in the agreement. Absolutely. Okay.
Absolutely. Looking forward to hearing more often.
And then my last one is just on Brazil, right? I mean, obviously, so many different parts of moving parts here. But when you think about the process and the bid, maybe you can just maybe simplify the bid process for the next steps, whether it's in Bacarena or are there other bids that you're looking at to expand your capacity there?
Yes. So yes, we already have 600 megawatt power station that we've been and been awarded through the Bath Bar Marina. And we continue to develop the terminals in the other locations that I mentioned. And the process is, I mean, Brazil is obviously going to be delayed with any auctions right now, if you want to put on there with COVID-nineteen. Well, the process is quite simple.
An auction is declared by the government. As we get closer to it, we understand the number
of lots
and therefore, how competitive we can be. And we've got the GP extension. We've got Barker in as they're already awarded Santa Cat's other places. And the idea is that we work out where we can be competitive and embed into that process using the best combination that we can come up with. And these awards can also be swapped around afterwards.
It's quite a it's in one way, it's a very, very strict and regimented process. And on the other hand, once you have been awarded, you can move some of the projects around. The key to success here is the fundamental point of having locations ready to bid that are approved and qualified. That's where all the hard work goes on in the background, getting these locations ready. We've got many that we're working on to be able to do that.
And then let me just wrap up, I guess, on the LNG price environment. Where prices are now? Do you expect as we see the reopening, obviously creeping up in the U. S. And Europe accelerating a little bit more, and clearly in Asia, I think we've seen a bigger ramp up.
Are you expecting that pricing just to follow normal seasonal pattern? Would you expect to see a slow uptick based on the acceleration of the reopenings around the world? Maybe you could just kind of walk through that. I appreciate the time. Thanks.
Look, I think pricing is, I think, is probably the same as everyone else's. It's wrong. I mean, if you could tell me when the global recovery is going to restart, what the rebound profile will look like, how that will translate into energy demand, what oil demand will be, how OPEC plus in the U. S. Shale will respond, how the coal spat between Australia and China that's been recently a national player, trade relations between the U.
S. And China, then I might have a more informed view. Okay. We're going with this defensive strategy in order to create resilience. And with LNG, we're developing our Mark III, so it's super competitive and staying engaged with customers.
And I think that that's all we could really do with trying to with the forecast. This is not forecasted to be prepared and be ready to move as soon as the opportunity arises.
Okay. Our next question comes from the line of Randy Giveans. Your line is now open.
Howdy, gentlemen. How's it going?
Hey, Randy.
Hi. So, first, congrats on starting the Suji power plant during the Q1.
Just trying to clear up on that,
what are the expectations for the cash flow ramp up? And how has that Brazilian real depreciation impacted this project? It seemed like initially the EBITDA contribution was around $24,000,000 a quarter. It looks like now it's closer to $19,000,000 a quarter. Is that a good kind of run rate for the remainder of 2020?
Well, it's dominated by it's influenced by a few things. Obviously, the real exchange rates, so our costs and the majority of our debts in real. So there's a bit of a natural hedge there. And then the other thing that happens, of course, is linked, as all Brazilian contracts are, as we go through the year. So you get some degree of offsetting of 1 against the other.
And I don't have in front of me the indexation that we've got coming up.
Okay. But the kind of reduction in the debt servicing and interest could offset the reduction in the revenue contribution. Is that fair?
Yes. I mean, the debt service and interest is all the majority of its nominated Brazilian reaction. There's no impact there. The only impact is what comes out the other end is disputable cash, if you like, depending on how you convert it and where you're going to spend it.
Okay. And then looking at FLNG, I know you already mentioned a little bit about the process being underway. Do you have some kind of a timeline for that? Is that a few weeks? Is it a few months?
And then switching over to the Hilli, any updates or kind of ongoing talks with Perenco to either extend the contract on Trains 12, start utilizing Train 3? And maybe what's more likely, I guess, in your opinion, an extension or an expansion?
So I don't have anything else. It's there's no point in me I think we're in a very structured, organized process with BP that we're progressing, and we'll update everyone over at the other end of that. I don't know if you're referring to the article that popped up yesterday around Hilli. We obviously don't comment on media speculations. The fact is we've got a great operating relationship with Perenco, and we've never stopped having commercial discussions with them around potential for both throughput expansion with the existing contract that's got 6 years left to run and equally for the potential to extend that beyond 6 years.
And I'll take the obvious bit. Franco is an oil company. In current environment, we would expect them to be prudent with CapEx and cash conservation. So whilst we understand that the drilling investment to provide more gas into the current contracts relatively small, I'd expect a bit of delay there due to the current environment. And also extension, we maintain the position that would seem to make sense for both Perenco and Essenich to continue with Hilli due to the gas that we understand is available in Cameroon waters.
And we'll continue to have commercial dialogue in that regard. In the meantime, and importantly, we'll press on with ensuring that Hilli continues to be the best performing LNG asset in operation today.
Got it. Okay. I just wanted to see if there are any updates there on Perenco. And then just one question for Calum. First, welcome to the big show here.
And no need to apologize for detailed financial explanations as you did earlier. We like that. So looking at those multiple refinancings that you were referring to, obviously, you're diving right in with all this work underway. What is the kind of the possible net liquidity increase you expect after repaying the current debt on these kind of refinancing?
Thanks for the question, Rani.
Okay.
Which you probably haven't had a chance. There's a little bit at the back end where we talk about what the vessels are. It depends what we do, right? If you look at the field, that is a requirement we want to be on the front foot and then have that done prior to January. So I think the extra liquidity on that, you should think of that as being low, but heading off a potential heading off the potential put option from the counterparty in January next year.
So think of that as being low single, mid single digits in terms of liquidity gain. But then the liquidity gain from the other vessels that we refer to, it depends on which ones we choose to do. We've got 3 potential situations that we are looking at. We are in very advanced discussions with the counterparties in terms of term sheets, credit committees, etcetera. I think you should think of that as a liquidity gain.
Well, all three to about all three to occur, you should look at the liquidity gain being north of €50,000,000 €50,000,000 and sub €100,000,000 You should think of it in that zone. But I must stress that this is opportunistic. People have approached us and said, we think this is good for you, and we think we're interested in this. And we're looking at it. We're in advanced stages, so things should you never know in the current environment that things should move quickly.
But from those, you should be looking at between €50,000,000 €100,000,000 were they to occur. But please note the were they to occur.
Yes. And
that's fair. Just trying to see what kind of leverage you could pull there. But thank you for that color and good talking with you.
Mathias.
Our next question comes from the line of Mike
Ian, first one is on the Gimi. I know there's an ongoing process with BP. Just thinking from your perspective and the actual conversion work being done on the Gimi, Is there what if any impact should we expect on the leverage in the syndicated debt associated with that asset as it relates to some degree of schedule relief with the force majeure. I know BP mentioned a year, which is an oddly specific number for someone that's simply looking to sell the gas.
But the does that
have any impact? I know that's the first piece of syndicated debt in the FLNG market ever, I think. So is there any repercussions or any pockets of concern associated with those overlapping processes?
I'll let Calum chip it on this to start with. Yes. So I think the
I think we've been delighted with, Mike, on how our lenders have responded. They get the situation. They understand it. We're keeping them informed. It's a fast moving situation.
We're trying to move 3 things off to 3 sort of parts and sides of a triangle off to the right, the BP discussions, the contractual discussions and the financing line. As things currently stand, I think it's fair to say we're comfortable with where we are. We think the short answer to your question is no. We don't think there are any repercussions for the financing by moving the financing to the right in terms of the comfort of the lenders. I think they've been very supportive and we're appreciative of that.
They're obviously waiting. The process there is for us to have a final for us to be able to take the advanced and positive discussions we have with the contractors, price all that up, cost all that up, phase it and then go back to the lenders and their engineers and say, here's where we're at. Are you okay with this? And the initial conversations we've had with them around it's a dynamic, right? We have feedback from the contractors.
We keep the lenders informed. The environment is positive. As you said at the start, right? We haven't we've got a little bit of a way to go to get this finalized, but it's advanced and positive. So it's a bit more color around it, but at the moment, we think that they're along with us and are super supportive.
Got you. And without getting too granular, if I think about the 12 month term referenced by BP, that doesn't trip any there's no doesn't trigger anything within the credit documents, the indenture associated with the availability of that capital. I know it doesn't start amortizing until, I believe, commercial delivery. I've got to check. But the there's no there's nothing that's triggered within just from the timeframe alone.
Is there anything?
I've asked that question, Mike, and the answer I've got is no. It does not.
Okay. There
are other things we care about in terms of quantum and tone and everything else. But in terms of duration, no.
Okay. That's helpful. I appreciate it. The Ian, on the carriers, again, I know this is a process that's been going on for close to 2 years now, I think, maybe more. We've kind of gone full circle.
It's a difficult proposition. In fact, I can't think of another time where you've seen that size of a block of carriers that size change hands, maybe the Teekay deal with Mirabeni, but even now it's probably smaller. Is the most likely scenario given what we're looking at now, is it fair to say the most likely scenario is some kind of in house solution at Golar that doesn't necessarily involve unrelated third parties?
It could be. We're considering all options in fact. I mean, personal frustration, this is fairly big in that we had the original spin off with the 3 the 2 other shipping companies awarded at the end
of last year. Then a
spin off that was sort of the global downturn that we have. We're not giving up. We'll get it sorted. We just haven't quite landed on the right solution for this time. We're exploring new options.
Calum has come in with some great new ideas. And we're clear to that. And I look, I'm confident we're going to get there, but I'm reluctant tantrum on it. And I'm so happy that I haven't been more specific about what it will look like because these things haven't happened, I've been wrong, I've been wrong. So really, we're still pushing on it and we've got it there on our list of priorities.
It's really just to let you know that we're not giving up. We understand the value of having an investable vehicle that it ships and having an investable vehicles that are other things. And you have different types of people that may want to invest in those different asset classes. We're just trying to get it right. Got
you. Okay. On the Hilli, and I know you kind of got at this earlier, and I believe previously you've mentioned a preference to extend relative to expanding. I'm sure both would be preferable. But if you did pick 1 or the other, extending the term and eliminating rollover risk versus adding a 3rd or 4th crane is your preference.
Is that the right way to think about it in terms of the most likely outcomes? I know there's a bit of horse trading going on between Perenco and the government. Anytime we see articles like that, that's they're written for a reason by someone to send a message. But should we think of it as, is the most likely scenario in either or? Or do you think it's likely that we would see something eventually combined where Perenco has done some more drilling
there? Well, they could be stepwise. We might get a bit more production coming in within the 6 year contract sorry, the 8 year contract that we have 6 years left. So we might get that. But then we have a period of a couple of years to then agree an extension.
So if you take the premise that it's assuming that LNG prices or less to somewhere a little bit more attractive than they currently are. And remember that some of this gas is a byproduct, they have condensate rich fields. So it's not just a pure gas, wait for Franco. If you think about the extension opportunity being attractive to Grenco and SNH, then you would then conclude that it's an effort to talk to us about an extension and try and find something over the couple of years to nail that debt. But equally, and we shouldn't forget this, Billy has got a fantastic reputation with all that operational knowledge that we're building up.
And it's in 2 years' time, in 4 years after that, it will be ready to be deployed somewhere. We're already ignored interest coming from other parties to say, can we have a look at setting something up so that we could take a look? I don't think your statement is right about it's our preference just to extend it. My preference now is to get additional volume through as much as we possibly can now because it's cash to date for no incremental CapEx. Sure, we want to extend it, assuming we get the right deal from Perenco and SNH.
And if we can't extend it with the right deal, we've got a bit of a grand swell of interest that we can explore over the next couple of years to see if we've got something that might be better.
Okay. That's
fair. And I know you touched on this. Just one more for me. You touched on Brazil quite a bit, but maybe just to kind of put a point on it. The impact of COVID on the pilot programs you're running in Brazil, I know there's been a lot of interest and you've had a number of people kind of sign up for MOUs.
But is that to what degree is that appreciably extended the timeline for initial commercialization of that kind of call it kind of the merchant share of capacity that you have in Brazil. And my apologies if you referenced that in your prepared remarks, I missed it. To what extent, if you can maybe measure it in quarters, do you think that kind of slides your timeline back in terms of how you think about commercializing that process?
Well, it's a fair question. So the answer is I don't know exactly. But we've been talking for a while about converting some of these LOIs that we've had into binding agreements, if you like. We got our first three under, so 118,000,000 cubic meters of gas per day. I think that starts the ball rolling.
It's giving the team confidence around the economics. We've got the deals done, payback in around the year, EBITDA, CapEx of 1 CapEx to EBITDA rather of 1. I think at the end, we're going to try and do the report for us. We have 3 customers now, 21 in negotiation. So they should be converted relatively in short order.
And we'll see how we go against that. And then another 200 that have signed up to LOAs or LOIs rather, representing 6,000,000. So if you add all that together, it's something like 1,500,000 tonnes of LNG per year. So it's a phenomenal volume. But to add to your question more directly, we've got 3 down.
Let's see how we go through quarter 2 and let's see how that curve starts to ramp up. And I envisage it being a slow start. And then as we get better and better rolling these ahead, we will get more confidence. The customers will have analogs to go by in terms of, yes, other people have done this, and I think it will speed up. But yes, we've taken a little bit of hit on time for the delay in Brazil.
I don't think it's over in Brazil yet as well. So let's see how we go next quarter.
Okay, perfect. Thanks for the time guys. Appreciate it.
Cheers, man.
Okay. Our next question comes from the line of Chris Wetherbee. Your line is now open.
Hey, guys. James on for Chris. Just wanted to touch on the Sujipe power plant. Exactly how many days so far in 2Q has it actually been on call? And how should we really think about utilization?
And then sort of separately, I was wondering if you could think of help us think about the merchant opportunity merchant power opportunity there across the balance of this year just given COVID and basically the broader slowdown? Just wanted to sort of kind of get a better understanding of the outlook there.
Yes. So remember, we came on in Q1, so we're reporting Q1 numbers now. Q1 came on stream 21st March. And in that period, we had actually the last 3 days of the month that we were called to dispatch. And prior to that, it was commissioning.
So the numbers of 400,000 Megawatt hours relates to a combination of the hours dispatched under the PPA, so it's basically 3 days, and the hours of the dispatch during commissioning, which I guess is a form of merchant power, but it wasn't done in an economic focus. It was done because we had to run the machines. Now whilst Q2 will be the 1st full period of availability for Merchant Power, it won't be truly represented, I don't think, of the earning capacity of the plant because we're still performing some additional guarantee and performance tests with the contractor as part of the agreed program. So the focus think about it, the focus was getting commercial acceptance, which we've done. And when that develops, we think it's going and we got a few other tests and things to tidy up as we go through.
But nevertheless, there should still be some opportunity for Merchant Power in the quarter as prices come up. And then I think we'll see the Q3 being more representative of what we could probably do. And 4th quarter, I would expect there's a little blip in the middle of the year, but I expect that will come off as well. And this is dominated absolutely by the availability of hydropower because these plants are called as back up. Obviously, they turn to thermal plants when hydropower isn't available due to the reservoir levels.
So we got a team in Brazil that are I think we need to have a weather forecast. We are so connected into the weather forecasting and a little in the dams to be able to predict ourselves
when we
think we might be called for dispatch so that we can obviously line up whatever it is that we're going to do around LNG shipments.
Okay. That's helpful. And then also, you mentioned the possibility of pipeline gas. Just wanted
to get an understanding of
the timing and EBITDA potential from that particular opportunity in Brazil as well.
So the timing about the product stage, so I start it's a young pilot. I'm thinking from memory, it's about 20 kilometers or something like that. So the timing would probably we might be able to take FID on that later this year or early next year. It just depends on how quickly we can get these permits processed. That's the thing that's probably been slowed down the most through the COVID-nineteen issues.
That's our permitting process. So we'll happily give you an update on that a little bit later after we've got through that. EBITDA, we know that it's a relatively low CapEx, potentially good EBITDA generator, which we just started. We hired a team and we just started that commercial acquisition process of getting industrial customers on. So and it's okay.
Let us go through this quarter ask you an update on that next time in terms of where we are and the actual EBITDA, unless, Calum, you've got any insight into the EBITDA numbers or potential from that outline. Obviously, we wouldn't be doing it if it wasn't a low CapEx fast return opportunity.
I think that's right. It's a team that's working, they tend to sign up customers on a sort of with a base guaranteed fee and an upside share. So you should think of it as the revenue split being between a base and then depending on commodity price differentials. But as Ian said, it's not possible here and we respect that and value it. But before that translates into giving you guys detail, we'd like to have a better answer and see how it works.
But it looks exciting. It looks very exciting, but we need to feel confident we can we have a good handle on it.
And at
this stage, it's positive, but let's see.
Yes. Fair enough. I'll leave
it there.
Thanks, James.
Our next question comes from the line of Craig Shere.
Welcome to Callum. Ian, you noted Golar's low cost FLNG development strategy, we certainly agree with that. But the primary challenge has been not engineering or construction, but really financings that are matched the underlying contract duration. Previously, you've cited financing improvement opportunities in terms of better shipyard terms, infrastructure equity partners and better debt financings. Can you provide an update on these efforts?
We're still going, Craig, in the same direction. So obviously, there are opportunities for the new build. They're bigger. They're more expensive, but they're very competitive in terms of capital cost per ton. And we will be targeting those customers that are they obviously have good security around any potential deal that would result in financing or they can actually be part of the project.
There would be such there would be fairly large projects. But I think it's early days, Craig. We're very much positioning. Nothing is happening specifically around anything close to FID on FLNG projects. But what we are doing is we've made very good progress on our Mark III design.
This whole economic turmoil that we're going through has put everything on pause a little bit. But I guess the message I want to give out is that we're not we're continuing to develop our marquee design. We're continuing to stay in touch with customers. In fact, we're having virtual things all the time through our FLNG development team to keep these opportunities warm. My final point on is that when the market is ready to address with surplus at the moment, but when we go into deficit and people can see demand pulling the requirement for more supply, we will definitely be at the front of the queue.
Very good. And speaking of FLNG, I apologize, I know there's a lot already been asked. On the BP Gimi Force Majeure, would it be fair to say that there's no reason to think that this could extend beyond the initially claimed 1 year delay? It could well result in comfortably less than a 1 year delay. And could we get better color on this the extent of the delay potentially by the 2Q call?
And would any cost overruns that are associated with the delay necessarily be 100% equity funded? And do you have any rough range of how much those cost overruns could be?
They are all perfectly sensible questions that I'm not going to answer any of them. Listen, we're going through a process. Obviously, we'll give an update on where we are in Q2. If we solve things by the end of that, then we'll do so. But as much as I'd like to explain more, our confidentiality agreement precludes us
from even talking about any
on where we're going. That's just the way it is and we respect fine and we continue our discussions and going through the process.
Fair enough. Sticking with last question, sticking with FLNG. I just want to clarify, I believe your Perenco Hilli contract was specifically for 500 Bcf, that with 2 trains would run 8 years, but they could tap a 3rd train and do it more quickly. My question is, if they don't tap Hilli at all for a time, would they then be able to tap that 3rd train under the existing contract to stay within the 8 year time limit?
So we've had a few backwards and forwards on this with Perenco. I think we all have a common desire to have that contract, an 8 year contract and less about the 500, just because we've got a little bit more here. We've had a year and a half of experience of working on the people on that looking at the CEO's experience now of working on the project. So you should think about it as an 8 year contract.
And whatever volume
we can put through that, it's up to Perenco and SNH to put the necessary changes to any country agreements to allow that to happen. But I think the desire is to have an 8 year contract, and let's not worry so much about 500, if that makes sense.
I see. So back to your point before, you'd rather maximize the volume today, so to speak. Understanding that it won't be maximized the next couple of quarters, they could start tapping the 3rd train. And if eventually we get better markets and they want to upsize their oil production and associated gas, then you could discuss about tapping the 4th train down the road.
Yes. All of the above is possible. You know me and talking about Hilli. Once something's signed, we'll talk about it publicly.
Okay. Thank you very much.
Thanks, Craig.
Okay. Our next question comes from the line of Greg Lewis.
Hey, could you talk a
little bit about Golar Power? I mean, clearly, as you look at this opportunity in the small scale distribution, there's a lot happening. Yes, maybe it pushes out a quarter or 2 depending on issues surrounding that country around COVID-nineteen. But as we think about the opportunities and in the slides you talk about, ISO tanker trucks, some pipelines, other small scale opportunities. Is there any way to think about maybe the CapEx around this to meet this growing demand as it kind of plays out?
Just kind of I mean, it seems like a great opportunity. I mean, is this just really free money given that the infrastructure is in place? Are there going to be any calls on additional capital to kind of build out this smaller scale network?
So there's no such thing as free money, and this is what I've managed to come across. But in terms of how Golar Power is going to build this out, they have a very detailed plan. Obviously, it has a number of fronts. They won't all progress in accordance with plans. So that's we'll push ahead on the ones that we get the breakthrough as we can.
The important point is that as far as we know and as far as the plans that we've seen going forward, all of the CapEx will be funded from within Golar parts. There's no additional equity requirement to come in that we're aware of. And that CapEx will come from a combination of income from Sergipe, and obviously, there's a couple of ships that are owned by Golar Power and the potential for additional debt facilities that they have. So Gopais is essentially, at this stage in the development phase, self sufficient for what has got in front of it.
Okay, great. And then just a question around on Slide 17, you have that interesting chart where you talk about the spot prices for power. I guess two questions around that. One is, clearly, we can see the price. Is there any way to kind of quantify, realizing that it is going to be different on an annual basis?
Is there but is there any way to think about the call on that demand, like in terms of megawatts, in terms of as we look at it looks like we're moving into a strong part of the year in Q2, Q3, whether prices move higher. Is there any way to think about what that potential capacity call could be to something like Sergipe?
So the table on the bottom of that Slide 17 is kind of our easy way to think about it. So noting that we've got 60 days notice for dispatches, basically 2 months. If we're not dispatched, we know that we have 2 months' worth of opportunity. And if you think about a cargo being burnt, full cargo, so 1000000, 170,000 cubic meters of LNG being burned over around 15 days, maybe 16 days. So if you have a think about how many 15 days in a 60 day period between now and the end of the year, you feel that we might have the opportunity to burn LNG at a profitable rate.
And look at the table basically shows, so if you look at the graph, you've got peaking at BRL 500 last year, peaking BRL 300 this year, choose a number, BRL 200 per megawatt hour, and we buy LNG at $2 per MMBtu, we've got $12,700,000 of EBITDA. And if you say, it's really a case of having a how many times of that sort of thing can occur. The point that we're trying to make is there is spread between the spot price that's called in the region
and the fact that we're the most competitive clients out there.
And therefore, if anyone has the opportunity to make a margin on merchant power overseas GPay.
Okay, great. And then just one more for me. You kind of mentioned the global opportunity landscape for Golar Power. I mean, clearly, there's a lot for the company to be doing in Brazil. You're gaining a lot of traction there.
But as we think about maybe the broader global opportunity set, I mean, how should we think about it? Clearly, Brazil is an emerging global economy with tons of access to port, ton of port access. Is that I mean, is that how we should be thinking about where the other opportunities could be? Just trying to understand, I mean, how we should be thinking about that opportunity set globally?
I'm not going to name the countries, obviously. We want to have that. If you think about countries locations within countries where there's a population that doesn't have access to electricity or doesn't have access to clean energy, so it's currently burning dirty energy. And where an FSRU would be a fast solution and this model hub and spoke would work. Then we have about 15 countries that we're working on right now.
You're right. The focus is on Brazil. We've got to get that working with us. As you've been working, we start with the rollout of the small scale, proving the economics of the model, and then we can work out how we transfer that. And I mentioned in past that we have had a bit of sort of strategic interest, if you like, and people that may want to partner with us to accelerate that.
And the advantage we get with that is obviously some of the guidance in some of those locations. Brazilian presence is very strong, and we're not naive to think that you can do everything at one like a location. You've got to be kind of metanational about it. You've got to have people on the ground. Now whether that's with a local partner or teaming up with somebody who's already there.
So that's the kind of process. The focus is, first, we're going to get Brazil up and running. So GPETIC, small scale we started, let's get in Barcarena done and then look at how we can expand that and taking in partnerships as we go.
Okay. Our next question comes from the line of Jason Gabelman. Your line is now open.
Yes. Hey, how is it going? I guess, yes, just going back to the Brazil opportunity, you mentioned, I think a couple of quarters ago, you saw the potential to grow EBITDA in Brazil within Golar Power, your share by $100,000,000 between now 2025 and kind of a ratable fashion. Is that in line with the opportunity set that you still see? Or has that changed a bit?
Well, it's probably what we talked about there was a very slow start up. And I think we've proven that it is a very slow start up, which has been hampered obviously by the COVID-nineteen situation. But as I said previously, let us get a bit of progress through Q2 and Q3 on the run rate in converting the small scale LOIs and demand agreements, and we'll be able to update you on how fast that we're going. Obviously, when we get the Barcarena terminal FID done around the end of the year, that will have an impact. So it's we can model all we want, but this is going to be determined by physical progress.
Got it. Okay. Thanks for that color. And then just switching gears to the MLP a little bit. Clearly, you made some moves to shore up liquidity there as well and the debt payments that you had
to you were able to
push out. Do you see a risk to the structure or I guess a better way to phrase it is, how are you thinking about the MLP within the current structure? Is there an opportunity to restructure that subsidiary? And I believe there's some recourse debt at the MLP, recourse to Golar, the C Corp. Is that something that you're planning to potentially have to deal with down the
road? I've got 2 comments to make. One is, one of the questions you'd be better off asking Karl at the MLP call on the half hour. But Calum, do you want to comment on any of the points?
Just make the point, Jason, that I mean, certainly, I'm a month into this job, and I think a couple of your colleagues referred to the structure of the group and the MLP spend. I think what we intend to do, and Ian mentioned it, I'll just reinforce the point, is sort of sit down and look at the group as a whole and say, right, what's the right structure? What gives us the maximum flexibility? What's the right structure that gives us the maximum financing flexibility? And what's the right structure that meets the needs of equity holders and bondholders.
And we're doing that. And then we layer in, I think one of your other colleagues talked about the carrier environment. We need to layer that in. That stuff that we're doing, we're doing a lot of thinking. We're doing a lot of modeling and a lot of work, and that will continue.
I think it's premature to say which direction we'd go and what we would do, but it's something that we're absolutely looking at. And maybe the decision is status quo. I'm not sure. It's too soon to say, at least from my perspective. But it really is if you think of the strategic questions, we've covered a lot about Brazil, but this is also one of them that's really important.
So we noticed that there's a situation that we need to think hard about, and we're thinking hard about it. And I won't say anything more than that at this stage. Apologies that I can't. But when the time comes, where we have a plan and we think it works, we'll be very specific with you. But right now, we're making sure.
Okay. Understood. Thanks for the color.
Okay. Our next question comes from the line of Liam Burke. Your line is now open.
Thank you. Good afternoon. Ian, could you give me a little clarification on the discussion of the build out of the small scale LNG customers? You mentioned incremental CapEx on the project would be $8,000,000 and that would generate $7,000,000 in annualized EBITDA. Is that the type of return you can expect from the entire project based on additional CapEx and then the additional 200
The short answer is we don't know because we haven't done those deals yet. But think about it as ranging from maybe if you look at CapEx to EBIT, it's up 1x to maybe 3x, something like that, and that's spread across the 2 high customers. It's a very small CapEx fast payback business, but each customer is different and obviously dependent on where that customer is, how they're getting their allergy and what kit needs to be provided in order to get it there. But that influences the cost of putting that sort of supply chain in. So I would suggest think about it between 1 and 3 times as a range across those customers.
That's what we do this time. And what we what I think we'll do is we'll update you as you go, so as we go through the quarters. So quarter 1, 3 customers, 21, we're negotiating 200 equating to 113,000 cubic meters of LNG, 600,000 and then up to a monstrous 6,000,000 if we ever get there. So we'll look at that and then we'll probably update you on the sort of the CapEx multiple and payback arrangement that we can come up with.
Okay, great. And on Golar Viking, is that project still on schedule?
I think Golar Viking. Yes, we had a bit of a delay in the first part of the year. So it's been converted that we are in Hudong. And of course, China was hit pretty hard with the early stages of growing price. It is working hard to try to get that back to schedule.
So there may be a delay, but if there is, it's going to be relatively short. So there's and everything else on the project is on track. We lifted the main compressor module onto the ship last week or the week before. So it's going well and everyone's doing a great job.
Great. Thank you, Ian.
Operator, we're going to have to wind up in the interest of time, I'm afraid.
Okay. That is fine, sir.
So in closing, it was from me. I'd like to thank everyone for their participation and interest in Golar. We're certainly weathering this storm, and we think we've got exciting prospects for the future. So please stay safe. We look forward to talking to you next time.
Thank you, and goodbye.
Thank you.