Air Products and Chemicals, Inc. (APD) Earnings Call Transcript & Summary

Good morning, everyone, and welcome to the 2021 Morgan Stanley Global Chemicals and Agriculture Conference (sic) [ Global Chemicals, Agriculture, and Packaging Conference ]. We're kicking off day 2 this morning with Air Products, and we're pleased to have Simon Moore with us from the firm, the Head of Investor Relations as well as the firm's sustainability efforts. We also have Mun Shieh from Investor Relations with us as well. Before we get started, 2 pieces of housekeeping. Number one, for important disclosures, please see the Morgan Stanley research disclosure website at www.morganstanley.com/researchdisclosures. And if you have any questions, please reach out to your Morgan Stanley sales representative. The second piece would be Simon and I are going to do a fireside chat, but we're also going to take your questions at the end. [Operator Instructions] So with that, Simon, good morning. How are you?

Good morning, Vincent. We're doing great. So thank you to you, to the rest of the Morgan Stanley team for allowing us to join you today, and thanks to everybody who's joined us virtually. Looking forward to a great chat and a day of meetings today.

Excellent. Thanks. And look, let's get started. Maybe the best place to start is just kind of with the capital deployment scorecard. It's always a very important slide in the quarterly deck. And maybe one way we could frame it is just -- and you kind of talked about this a little bit on the quarter, is let's go through the mega project strategy as well as what your sort of core industrial gas sort of heritage CapEx strategy is and how we should be thinking about that.

Yes, great question, great place to start. And maybe before I dive into that, let's just remind us what's not in that capital deployment strategy. It may sound like a strange way to answer the question, but I think it's important that people recognize that there are roughly $33 billion of gross capital available to deploy over 10 years. That's after we pay maintenance capital. So just to be clear, that whole $33 billion is growth capital. It's also after we pay our dividend. And as you know, we're very, very proud of our dividend. We've raised our dividend every year for 39 years, and I can assure you that streak is going to continue. So that's in addition to paying the dividend. And it's also consistent with our -- what we often talk about that we want to maintain our A/A2 rating. So I think it's just important to ground ourselves that, that capital is what's available after maintenance capital, after the dividend and consistent with our A/A2 rating. And then with those opportunities, I think you heard us on the call, Dr. Serhan particularly talked about some of the success we've had in what I'd call our more traditional businesses, the slightly smaller projects, and to be honest with you, Vincent, these days, the big mega projects are so exciting we sometimes forget to talk a little bit about the base business and the smaller projects, but we're doing very, very well in that area. We've got strong market positions. We've got great product offerings. And we're going to continue to support that base business. In terms of the overall amount of capital, a little bounce around year-to-year, so -- but maybe order of magnitude to $0.5 billion a year of growth capital, something like that, towards that -- those more traditional, smaller type projects. So if we look at this from a big picture standpoint, we just shared about $33 billion of capital available over this 10-year window. Maybe it's $5 billion, $6 billion, $7 billion of that goes to kind of those base projects over that period of time, which leads $25 billion, $27 billion, $28 billion for the mega projects, and that's where we're incredibly excited. And I know we'll get into the details. But just in terms of progress, as we said this past quarter, we've already spent or committed about 2/3 of that $33 billion. And when we say committed, that means the projects we've announced. So for example, we just announced the very exciting $4.5 billion Louisiana project. That's kind of included in that commitment number. But I also want to emphasize that there's plenty of capital availability left. This is, quite frankly, a conservative view, the way we've done the math. And I would just maybe close this question by reminding people that's the capital availability. If I look to the other side and talk about the opportunity set, the opportunity set is very, very significant, multiples of that capital availability. And that's one of the reasons why we're so excited because that allows us to focus on the really, really strong projects.

All right, first of the day. Anyway, so let's dig in maybe to the mega projects first. Obviously, you are out in front in the hydrogen arena. And you have big announcements, NEOM in green, and you have Alberta and now Louisiana from a blue perspective. So maybe just talk about sort of -- and obviously, you're still working on gray projects. So maybe just talk about sort of the philosophy across the sort of color palette and how you envision at a high level, the hydrogen build-out taking place both for Air Products and for the industry in general.

Great point. I mean it's kind of funny, right? You go back a few years ago, and hydrogen was just a small thing that only the industrial gas companies and a few of our customers talked about. And now it's literally the head of every list, right, kind of everything coming out of COP26, maybe not everything, has a reference to hydrogen. So it's really exciting to see that the world recognizes that hydrogen has a critical role to play in the energy transition. And as you know, Vincent, Air Products is the leader in hydrogen today. We've had strong hydrogen business for decades. That hydrogen business today actually helps our refining customers clean up transportation fuels. So it's interesting that our hydrogen business today is already driven by an environmental focus. And as we look to the future, we see the opportunity to take that experience we have to safely and effectively make and transport and dispense and deliver hydrogen and leverage that to where hydrogen is going into the future. And again, it's a very significant opportunity. I think the world sees hydrogen as a way to support transportation field demand, and we'll get into that a little bit, to support industrial demand but also to maybe to support basic energy. And then you specifically asked about the colors. And I think the terminology of the colors is what the world uses today. But I think what's effective to recognize is hydrogen is a tremendous opportunity for the world, and different applications, different countries are going to want different types of hydrogen, different flavors of hydrogen, okay, different colors of hydrogen, if you will. And so maybe there's somebody who's going to say, okay, I want to use hydrogen as a transportation fuel in my city where pollution is a big problem. So I want clean hydrogen there, but I don't mind if you make that hydrogen somewhere else and bring it to me. And if that emits some CO2, that's okay. Some people are going to say that, in our opinion. And then we get into the blue and the green. And there, I think it's almost more effective to talk about the carbon intensity because that's, at the end of the day, what we care about. We don't actually care how it's made or what name we put on it. And I think what's significant about that is, as you saw from our Alberta project, that is a hydrocarbon-based project, natural gas, so called blue then, but it's actually got a net zero footprint. So that demonstrates the ability to take a hydrocarbon-based project and create a net zero footprint. And then you're going to have the opportunity to provide that hydrogen around the world. And then, of course, as you said, our NEOM project, a truly green hydrogen project. So one of the things we see, you asked kind of why are we interested in that. Well, quite frankly, we see market opportunities across that full spectrum of hydrogen. We've got the experience and the technology to be successful. We want to offer what our customers want.

Yes. One of the things that strikes -- a couple of things that strike me a bit interesting is this, is that there's obviously a lot of in the broader energy environment right now, particularly what we're seeing in natural gas in Europe and in Asia. There's a very sort of lumpy transition going on towards clean energy. And one of the interesting things to me about what's happening in the hydrogen arena is that there is sort of some forethought about having a transition and saying, hey, look, we can use gray to build the industry out, to build out the infrastructure, to build the hydrogen economy. And then we can then feather in or build in blue and then green and have a transition but, at the same time, we effectively build out the industry without trying to go from 0 to 100 in 2 seconds. And it seems like you guys are sort of at the forefront of that because you are kind of offering different solutions in different ways and different colors. And you've got NEOM, I think about as, to your point, like, hey, you can make it there and you can sell to anybody anywhere. Alberta seems like it's a blueprint for the city of the future. And then in Louisiana, you have the integration to your pipeline. So if I'm right, maybe you can talk about those 3 different strategies. And is that what you think you're going to effectuate around the world is just to keep building out those same ideas of I can be the supplier from a low-cost position or I can co-locate in a city or I can use a pipeline? Is that the right way to think about it?

Yes, it is very, very insightful question there. So let me just -- maybe let's take one example, right? And again, this is one application. But let's talk about maybe the bus market for just a second. And what we always say is the reason we say that hydrogen is here today, is here now, is because the bus doesn't know what color of the hydrogen is. So to your point, let's say you're the fleet manager of a city bus fleet and you want to move to the green hydrogen from NEOM, you're not going to wait until 2026 and throw away all of your buses and start immediately with a full fleet of hydrogen buses. What you probably want to do is you probably first want to run a trial program with a handful of buses. And then maybe the buses last 10 years, so you're replacing 10% of your buses each year. And as you used the phrase, you're going to kind of feather that in. Well, what's beautiful about this opportunity is they can start now. I mean we have situations around the world where we're providing hydrogen through a dispensing station to bus fleets who are doing, let's say, early programs with what they want to do. And so exactly as you said, they can get going. They can build out the infrastructure. Not only we can build out the fueling infrastructure, but obviously, they've got to build out the bus infrastructure itself. And that can be supplied with hydrogen available today, and then that can smoothly transition to the NEOM hydrogen when it's available. So in some ways, the green hydrogen from NEOM is absolutely a new product and that it has no carbon footprint. In other ways, it's just a continuation of an existing product. And so I think that is an example of you said of how the transition can be a little smoother than it might have to be otherwise. And you asked generally about our strategy. And quite frankly, again, what we're excited about is we feel like we've assembled a portfolio of technologies. And whether those be the production side of things, the cleanup kind of things, the downstream and the use of the syngas, and we can look at that portfolio of technologies, and we can mix and match those to create the right solution for the right situation. Exactly, as you said, we have slightly different technologies that we're using in Canada versus Louisiana because there's a different set of situations on the ground. But at the end of the day, when you look at this, it's a much, much lower carbon footprint. So having that technology, having that experience, having the opportunity, the boldness, quite frankly, we talked about the balance sheet to be able to do these projects, I think that's what really allows Air Products to making real announcements about real projects and moving ahead. I think we'd all recognize there's an awful lot of announcements out there in the hydrogen space these days.

Yes. No, there certainly is. So maybe we just talk a little bit project by project in terms of what the sort of premise of it is. Obviously, NEOM is low-cost wind and sun. But maybe talk about sort of the technology you're using to create the green product and then how you plan on distributing it. And I know you're not going to give us your exact cost, but if you could give us a sense of how competitive you can be into a delivered market versus somebody potentially who would co-locate.

Right. Yes, we probably won't give you the exact cost, as you said, but anyway, so yes, let's do that. Let's talk about the NEOM project. So maybe the first fundamental question is why are you building this thing in Saudi Arabia? And you kind of said the answer there, Vincent, is because that part of Saudi Arabia, that Northwest corner, the NEOM area, the sun shines and the wind blows. And when you're making green hydrogen, a big part of the cost is the cost of the electricity production, right? So what you need is you want to get to a place where you have very, very efficient use of the capital to make that renewable power, that renewable energy. And we're building a massive solar field there and a massive wind farm. And because of the natural -- the state of the nature there, if you will, that sunshine and the wind creates a very attractive cost of that power. Okay. Well, now I've got this power here. We're going to use electrolyzer technology, and we're very excited about our relationship with thyssenkrupp, who's got the capability to scale up the production of the electrolyzers. They are working hard to do that. They are an established company. They've been doing this for a long time, and we're confident they're going to be able to deliver the order of magnitude step change increase in what we're going to need in electrolyzer capacity. So that creates the hydrogen. So that's great. Hey, you got low-cost hydrogen in the desert in Saudi Arabia. How are you going to move it around the world? And as we talked about is I think we have credibility here because we do this every day. We move hydrogen gas via pipeline. We move hydrogen gas via truck. We liquefy hydrogen, move it as a liquid every day. And so when we looked at this, one of the innovative things that we decided made sense was it's relatively expensive to move hydrogen long distances. It's a very light molecule. And if you liquefy, it's a very cold molecule, so it takes a lot of energy. So in this case, we're going to take this hydrogen and mix it with nitrogen and make ammonia out of it because, as everybody here today knows, there is a global supply chain for ammonia. There is infrastructure to move ammonia around the world, and it's much more cost effective to do that. So then we can move the hydrogen in the form of ammonia around the world to where it's needed and then dissociate it, basically crack the ammonia back in, and then you have truly carbon-free hydrogen delivered around the world. So at the end of the day, what we're essentially doing is taking that very low-cost power production from Saudi Arabia and essentially moving that, if you will, around the world for where it's needed. So that's the NEOM project. Maybe if it's okay, I'll talk for a second about the Alberta project.

Yes, that would be great.

Again, I think what's really exciting there is proving the ability to take hydrocarbons and make a net zero project. So we take natural gas, and we put this in. Essentially, it's a gasifier. It's a different type of gasifier, but it is a gasifier. And from that gasifier, we can capture about 95% of the produced CO2. And in this project, there is a CO2 pipeline called the Alberta carbon trunk line, which we will put the CO2 into, and that will get sequestered. And then with the hydrogen, we're really going to do kind of 3 things with that hydrogen out of this project. The first thing we're going to do is we'll put it into our pipeline network. We have an existing hydrogen pipeline network up in that area, somewhat analogous to our U.S. Gulf Coast although a little bit smaller. And we'll be able to provide customers net zero hydrogen on that pipeline network. We're also going to take some of that hydrogen and liquefy it. We just talked about, hey, liquid hydrogen is kind of expensive to move around if you want to move it around the world. But if you're moving it around, let's say, Northwestern Canada or North Central Canada, it makes sense. So back to this idea, there's not one solution. You got to have a portfolio of technologies, and you choose the right one for the right application. So we'll make some of the hydrogen to liquid hydrogen. And then finally, we're also going to take some of this hydrogen, and we're going to make power out of it. And that power is going to have a very, very low carbon footprint. We'll use that power ourselves in the plants, and we'll also export some of that power. And because that has such a low carbon footprint, that offsets that 5% of CO2, and we end up with a net zero project. So again, starting with natural gas, which is abundantly available up there, and creating net zero hydrogen for the pipeline market, for the liquid hydrogen, probably for the transportation market, that's one of the exciting things about that project.

Maybe before we go to Louisiana, I just kind of want to go back to NEOM and to the same sense in Alberta and maybe it's ultimately relevant for Louisiana. But NEOM, my recollection is that you're going to fill out this first phase of the project, but there's the opportunity obviously to then expand thereafter in a way that would be much less capital intensive because you would already have the footprint and all the infrastructure and so forth. So you have a lot of growth potential in NEOM. Alberta, I've been thinking about sort of more as like a blueprint of you're building this concept in Alberta, and you're going to demonstrate it. And provinces, cities, states, countries from around the world can come later and look at it and say, I want one of those. In theory, you could probably just pretty much replicate -- I mean maybe you don't have the pipeline, but a lot of that could then be, I don't want to say stamped, but you could replicate it in lots of different places. So is that sort of the thought process, you fill out NEOM and then you can find other customers that are going to maybe want to buy into NEOM 2 or NEOM 3 because they're going to want -- just like sort of in your traditional gas business, you have on site and you have merchant, NEOM ultimately comes sort of like a merchant supplier to people that don't need the full facility, whereas Alberta is sort of the example of, hey, you can have one of these too, and you kind of -- that's what gives you the first mover advantage?

Well, I'm not sure I can add anything to that question. It's well-stated, but let me just fill it out a little bit. Yes, I mean we've acknowledged that we could see the potential to do additional NEOM projects, I think it's also possible we'll do similar projects like that perhaps in other parts of the world as well. So we continue to look at the -- again, as I said earlier when we started talking about capital availability, the opportunity set is multiples of the capital availability. So I absolutely do think -- and maybe just step back for a second on NEOM. As big as it is, as exciting as it is, it's a $7 billion investment. It's a step change in what's available. It can provide enough transportation fuel for roughly 20,000 city buses. There's about 3 million city buses in the world. And that doesn't even talk about the truck market or it doesn't talk about the train market or even the airplane market. So I think to your point is the world is going to need many, many NEOM-style projects. So I do think there'll be opportunities to replicate that concept either in NEOM and/or in other locations. And then it's interesting you make that point. If you remember, we announced the Alberta project, and it was about a couple of months until we announced the Louisiana project, and we made the point that, hey, it's pretty exciting to be able to show that you can do a natural gas-based project at very, very low carbon intensity. And I think we might have said there might be other places in the world where that could make sense. And then 2 months later, we announced the Louisiana project. So what you need to have to have that make sense and be the right solution is obviously good natural gas infrastructure. But you also have to have a place to put the CO2. And as we said many times before, capturing the CO2 is relatively easy. You can do that on the back of one of these projects, especially these gasifier projects, easy to capture 95-plus percent of the CO2. But you got to do something with it. And if you happen to be in a part of the world where there's enhanced oil recovery, that's a fine opportunity. But if you're going to sequester it, there's only certain places in the world where the geology of the rock is amenable to the sequestration. Now there's quite a few places. It's not just Alberta and Louisiana. And that's one of the things we emphasized. The Louisiana project is Louisiana clearly saw that they had that geology that supported the sequestration, and they created a framework and have that make sense. So yes, I do absolutely agree with you that we see an opportunity for other, let's say, natural gas-based projects in the right locations to produce low carbon intensity hydrogen.

Okay. And maybe you could talk about just sort of carbon pricing schemes and how you guys think about the price of carbon when you evaluate a new project. Because we talked earlier about you've got the -- your sort of base business projects and you've got these mega projects. Presumably you're looking to get similar returns across both, so how does the price of carbon play into your return calculation?

Yes. Well, as everybody knows, there's an awful lot of different programs, laws, rules, regulations. Some of them are in place around the world. Many of them are being talked about or in the process of being implemented. But the most important thing is obviously the world is moving towards demanding lower carbon footprint for its transportation fuels and its energy sources. That's the fundamental most important thing, and that's why we're so excited about this market. If we look around some different programs, probably the simplest thing the world could do is align on a single carbon tax for the whole world. That would be great. That would be simple. I'm not sure that's likely to happen, but okay, we'll see. And so for example, we look at California's program, the low carbon fuel standard. We think that's a pretty effective program because it does not dictate how things are done. It creates -- the lower the carbon footprint, the more value there is, which we think is the right way to create a program because we let then the market figure out kind of how to do it. And so that's a very effective program. Obviously, the U.S. has a so-called 45Q tax credit for sequestered CO2, which is in the process of perhaps being enhanced a little further. And then again, there's various, I'd say, styles of programs. And whether they are incentive programs that create economics for lower carbon hydrogen for transportation fuels or they're more requiring people to reduce their carbon footprint, we see a lot of different programs in Europe. So I think, Vincent, it's hard to just take a project and say, okay, just simplistically, how do I think about the price of CO2. And again, whether -- if there's some value created for lower carbon, perhaps if we do the project, we get it. Perhaps we sell the low carbon hydrogen to the customer, and the customer gets the credit, and you just can create a commercial arrangement that supports that. So we continue to look. What we're excited about is really since we announced NEOM, which is almost 18 months ago now, the amount of the world's conversation that includes carbon and talks about this energy transition, the low carbon, the where -- how hydrogen is going to play a role in that, just increases every day. And again, the announcements out of COP26 are very supportive of that.

Okay. Well, look, let's maybe shift gears a little bit within the mega project sphere. This can probably be fairly quick because it's happened now, but you finally closed the Jazan project. So maybe just kind of give us an update on that and the impact on a go-forward basis from an earnings perspective.

Well, as you can imagine, I'm pretty excited to be able to talk to you and answer that question about, yes, it has closed. Maybe just stepping back, I'm not going to go through the details of the project, but I mean, it's almost -- we've been talking about this so much that sometimes we can lose the context there. This is a $12 billion project. And Vincent, you and I used to talk about $200 million projects for Air Products being big, maybe $300 million, and then we got to $1 billion. A $12 billion project, and it is with the largest company in the world. I mean Saudi Aramco, who traditionally does kind of everything themselves, has decided that they're comfortable outsourcing a $12 billion project to the joint venture, which includes them, ourselves and our partners, ACWA. And it's a critical project. Again, it takes the vacuum resid, the bottom of the barrel, from the new Jazan refinery that Aramco is building, and it processes that in a very clean way. And it creates hydrogen for the refinery, supplies nitrogen to the refinery and creates power for the area. So for us, we're truly honored and very excited about kind of the context of this project. And quite frankly, the confidence that this demonstrates that Aramco has in Air Products and the joint venture partnership. So I know we've been talking about the details about the project for quite some time, so it's just kind of fun to step back and put it in context. But very specifically, we announced, what, 2 weeks ago now that we closed on the first phase, and we will contribute or have contributed -- I'm sorry, we've already contributed about $1.5 billion to the project. And for that, we've closed on Phase 1. The joint venture owns the Phase 1 assets, which are in order of magnitude about 60% of the assets. And as we said on our call, we expect that to contribute to Air Products about $0.80 to $0.85 of earnings on a yearly run rate basis, which essentially started 2 weeks ago. So there is no real ramp-up period there. And again, as you know, right, given that we just delivered earnings of order of magnitude $9, that even that Phase 1 is a pretty significant step-up in the earnings power of Air Products. And then in 2023, we expect the joint venture to close on the second phase of the assets, kind of the balance of the assets. And once that happens, we'd expect to average a total of about $1.35 of earnings per share for Air Products going forward. So a tremendous job by our team, by our joint venture team, and really, really excited about this project. And I wonder one day if we could get a set of investors to come and visit the plant because I think it's a pretty incredible thing to see.

All right. We'll take you up on that. Is there -- now that you have this project closed and, over time, you'll show you can effectively own and operate it, are there other opportunities? Maybe they won't be in the $12 billion ballpark but same idea, where for other large energy customers where you or a set, a group of folks as a partnership could go in and replicate this type of asset buyout and own and operate? Or is this just sort of a very special onetime opportunity?

Well, I think what's interesting about this is, as you pointed out, it is an acquisition, but it is also interesting that Aramco chose at the time the Shell gasification technology, which, as you know, is now the Air Products gasification technology. So I think, quite frankly, if we didn't own the gasification technology, it's hard to predict, but I'm not sure whether Aramco would have felt comfortable outsourcing. So the fact that we own these technologies and as people around the world are thinking about the idea of gasification because gasification still has a key role. It allows countries around the world to use the hydrocarbons they have in a much more environmentally friendly way. So we are excited about gasification opportunities going forward. And whether that is one that from the very beginning we talked to the customer about essentially outsourcing and Air Products builds it from the beginning or the customer decides they want to do it themselves, they start building it, and then they think about an opportunity to outsource it to Air Products and a partnership, I think both those things are very doable. And I suspect, over time, we'll probably see some of both of them. What's most important is Air Products is there at the table with that customer at the very beginning of the conversations because they're going to think about the gasification technology, quite frankly, long before they're going to worry about who's going to build and own the asset. They've got to kind of get the fundamentals of their projects sorted out. So we're there getting the call, helping the customer think about the technology and begin -- can begin in that context the opportunity to talk about the outsourcing model. So I do think there'll be other opportunities. But as you said, $12 billion is a pretty big number.

Okay. Fair enough. While we're on gasification, maybe you could just give us sort of the latest viewpoint on coal gasification. And you have a couple of projects in the backlog associated with that. There's obviously been some volatility in coal prices. There's been some China dual controls and so forth. So how do all those dynamics play into your overall strategy?

Yes. As I mentioned, we still continue to see that for certain places in the world, coal gasification still makes sense, and it's going to continue to make sense for a long time to come. And why is that? Well, quite frankly, there's places in the world that have a lot of coal and don't have a lot of natural gas. And for those countries that have a lot of coal, they continue to be interested in utilizing that coal but in a more environmentally friendly way. So you get a lot of attention on burning coal or coal in a power plant. But when you gasify coal, it's a much more environmentally friendly plant. And what's actually really interesting about this is the CO2 that is produced is in a very clean state. It's a very capture-ready CO2 stream. So just like we're doing in Alberta and Louisiana, you could perhaps envision one day a coal gasification project that does carbon capture which would allow some of these countries to meet their goals, to utilize the coal they have, do it in a very environmentally friendly way, reduce their dependence on foreign sources of, say, energy, chemicals, oil, whatever that might be. And so that's one of the reasons why we're very, very excited. We have 2 projects that we're in execution on in China. Those are full speed ahead. We expect those to be on stream in a couple of years, 2023. And when we look at what China is doing, I think, obviously, we all see a little bit of uncertainty right now in the near term around the dual control. But ultimately, that's driven by China's interest and focus on reducing their carbon footprint. And if we go to the future and China wants to reduce its carbon footprint, there will be many solutions to that. It will be an and situation, not an or. China will use more wind energy and more solar. But I think it's highly likely that China is -- part of China's energy solution in the future will still come from coal. And the best way to use that coal if you're trying to minimize your carbon footprint is probably gasification with carbon capture. So just mentioning China a lot. You obviously know we're also doing a project in Indonesia. We're excited about other opportunities there. And India is also a place where we've talked about has that coal and has made some high-level commitments around gasification. So again, I think we go back to where we started this conversation a few years ago and we talked about the pillars of growth opportunity that Air Products saw. We talked about gasification, not just coal, also natural gas. We talked about carbon capture. As you know, we have experience. We capture 1 million tonnes a year of CO2 in Port Arthur, Texas. And we talked about the hydrogen market opportunities. And what we're seeing now is these growth drivers, all fundamentally driven by the world's focus on sustainability, are coming together sometimes in the same project. Both Canada and Louisiana, actually, our gasification with carbon capture creating hydrogen mobility market. So again, that's why we see a lot of different opportunities. And again, as a portfolio of technologies, to be able to put those together in a way that makes the best sense for the customer is something that we're very, very excited about.

That was an excellent summation. You must have noticed that we were coming up on time.

I can't do much, but I can see the clock.

Well, we'll leave it there. And I thank you very much, Simon, for joining us, and I look forward to seeing you later today.

All right. Great. Thanks, everybody. Have a great day. Talk to you later. Bye.