BlueNord ASA (BNOR) Earnings Call Transcript & Summary

Good morning. Welcome, and thank you for joining us as we walk through BlueNord's Q3 performance. So I'm really pleased to say that this was another quarter of progress, especially at Tyra. We've seen higher volumes and much greater stability. Also, operational cash flow has nearly doubled from the previous quarter, and that's allowed us to propose a significantly higher Q3 distribution of $89 million. So that snapshot is encouraging, but a single quarter doesn't tell the whole story. Today, we want everyone, whether this is your first quarterly presentation or your 25th to leave with a clear sense of what makes BlueNord BlueNord, where we've come from, where we are now and most importantly, where we're going. So here's how we'll do that. I'll start with the foundation that underpins our performance and returns. Then Miriam will take you through the operational delivery across the DUC portfolio, not only Tyra's ramp-up, but also the contribution from Dan, Halfdan and Gorm. Cathrine will look at the opportunity ahead, the discovered barrels not yet in production and the work underway with the operator to bring them on stream. Jacqueline will walk you through how that operational performance feeds into our financials and translates into a growing distribution profile. And finally, I'll come back to talk about our priorities going forward, how we continue to strengthen the business and deliver long-term value. So for admin, please feel free to submit questions as we go through, and let's start by turning to the first page. So BlueNord holds a 36.8% non-operated working interest in the Danish Underground Consortium. Together with our partners, the Danish state-owned North Sea Fund and TotalEnergies, a world-class operator with deep North Sea expertise, we're exposed to a high-quality, diversified asset base with over 220 million barrels of net 2P reserves and near-term 2C resources. It's a strong platform of long-life production and value. And with the restart of the Tyra hub, we've already nearly doubled production with more growth still to come. With the majority of this new production being natural gas, we're also now more than ever, directly contributing to energy security in Denmark and across the EU. So let's turn to the next slide. Even today, the EU still imports close to 90% of its gas. But with Tyra back online, Denmark is once again a net exporter. That's a major shift and one that strengthens energy security across Europe while helping to reduce reliance on imported higher emissions alternatives. For us, Denmark also provides a really strong and supportive framework for oil and gas production. There's a clear recognition that gas is a critical enabler of the energy transition. There's regulatory certainty with an end date for production set in 2050. And we also have predictable fiscal terms that are governed by a tax stability mechanism. That combination gives us the confidence and stability to not only keep contributing strategically but also drive long-term value for our stakeholders. And with that in mind, let's turn to the next page. So our strategy is very clear. We want to maximize the cash generated from our assets and then return as much of that cash as we can to our shareholders. At the heart of our business is a portfolio of long-life, low-decline assets that's now being transformed by Tyra. Tyra meaningfully boosts production and cash flow, while at the same time, lowering OpEx and CapEx. We're also pushing forward a number of attractive near-term development opportunities that make the most of our existing infrastructure. These projects will help us sustain today's high production levels well into the 2030s. On the financial side, we benefit from a strong balance sheet, solid commodity price hedging and a material tax loss position, all of which further support cash generation and distributions. So all in all, the result is a business that's delivering shareholder returns for today while still offering plenty of long-term value creation. And with that value now starting to flow back to shareholders, let's move to the next slide. So I'm happy to say that the transformation of BlueNord is now complete. We've delivered one of Europe's largest offshore redevelopments, strengthened the balance sheet. And today, we're producing nearly twice what we did before Tyra came back online. With this major investment phase behind us, that increase in volumes now translates directly into higher cash flow. And with our disciplined capital allocation framework, our focus remains unchanged to return that value to you, our shareholders. And if we turn to the next slide, we can look at what that means in a little more detail. We have a clear distribution policy in place through to the end of 2026, returning 50% to 70% of operating cash flow to shareholders. For Q3, we're proposing a distribution of $89 million, and that brings total paid and proposed distributions to $391 million to date. Every distribution we've announced so far across 2024 and the first 9 months of 2025 have been at the upper end of our policy range and that's exactly what we said we'd deliver, material and consistent returns to shareholders. And against that backdrop, let's move to the next slide and talk about exactly where our performance stands today based on our Q3 results. So I'll shortly hand over to Miriam and Jacqueline, who will take you through the detail, but I do also want to highlight a few quick points before handing over. So starting with our base production, Dan, Halfdan and Gorm averaged 20,200 barrels of oil equivalent per day during the quarter. That was slightly below guidance, mainly because planned maintenance ran longer than expected. But that work strengthens these hubs and will support production well into the future. At Tyra, production averaged 18,900 barrels a day in Q3, continuing the quarter-on-quarter growth trend. And while we initially expected a little bit more this quarter, it's important that the trajectory remains positive. September averaged 22,000 barrels per day, the highest rate we've seen since restart. Financially, revenue and EBITDA were both broadly in line with Q2, but operating cash flow jumped significantly, which is key since this is the basis that we use to set our distributions. Combined with our strong balance sheet and liquidity position, this underpins the proposed Q3 distribution of $89 million, again, representing 70% of operating cash flow for the period. And with that, it's a good time for Miriam to take you through the operational detail behind this performance. So Miriam, over to you. Thanks.

Thank you, Euan. I will now give more details to the operational status and outlook. We continue to see operational progress with production increase through each of the last 4 quarters. This reflects not only the resilience of our base assets, but also the growth achieved at Tyra. In September '25, Tyra production averaged 22,000 barrels of oil equivalent per day net, marking the highest monthly output since the restart of the Tyra facilities last year. This is a significant achievement, especially considering the operational challenges we have faced since restart and the current water treatment system constraints. Tyra continues to be the primary driver of near-term production growth, but it's important to acknowledge the contributions from our base assets, Halfdan, Dan and Gorm. For our base assets, active asset management remains a top priority. Q3 production was 20,200 barrels of oil equivalent per day net, which is slightly below our guidance of 21,000 to 23,000. This reflects an intensive maintenance program designed to underpin the long-term stability of our base assets. With no significant maintenance planned for Q4, the guidance of 21,000 to 23,000 barrels of oil equivalent per day net is reiterated. Key maintenance and optimization work completed across the DUC hubs, Dan workovers, Gorm equity updates and Halfdan gas lift commissioning support production stability and long-term asset performance. An annual production decline of less than 4% reflects the effectiveness of this strategy. Going forward, our focus remains on sustaining high operational efficiency and supporting long-term performance through facility maintenance as well as well on reservoir management. Now let's look at Tyra. October 25 marked a major milestone with the formal inauguration of the Tyra hub. This event was not just a celebration of a successful project delivery, but also a recognition of Tyra's critical role in Danish and European energy security. Tyra's redevelopment is one of the largest gas projects in Europe and a successful delivery positions Denmark as a net exporter of natural gas. Importantly, Tyra's gas has a significantly lower CO2 footprint compared to alternatives like LNG, supporting both national and European climate goals. September saw the lowest emissions intensity since shutdown in '19, reflecting operational improvements. The inauguration event also underscored Tyra's contribution to stable energy supply at home and across Europe, helping to keep the wheels of industry turning while maintaining a lower environmental impact as highlighted by the MD of TotalEnergies. And this is also recognized more broadly. Denmark's Minister of Climate Energy and Utilities highlighted that gas remains a crucial transitional fuel. Now let's talk about Tyra performance specifically. Tyra has consistently demonstrated strong production potential and with only 60% to 65% of wells online, we have achieved high export rates and have come close to plateau production levels. The observed performance strongly supports our ability to deliver and sustain plateau production. Ongoing optimization of facilities and processing is key to unlocking the full potential of the hub. The Harald East Middle Jurassic well, in short HEMJ has significantly outperformed pre-drill expectations. Since March '25, HEMJ has contributed around 30% of Tyra's output and the investment achieved payback in less than 6 months. HEMJ's success has also extended the Harald's hub life into the mid-2030s. While we believe there remains significant untapped potential in the reservoir that will become clearer as we gather further well test results and more stable production data, the focus is now building upon this strong base by significantly operational stability. Our focus on operational stability at Tyra is showing tangible results. Since mid-August, we have not experienced any full facility shutdowns other than the plan in October, which is a clear indicator of a stronger facility reliability. In September '25, we saw the highest monthly average production of 22,000 barrels of oil equivalent per day net since the restart of Tyra. In October, we achieved a record gas export of 221 million standard cubic feet per day and a total oil and gas production of 27,000 barrels of oil equivalent per day net. These improvements are the results of targeted interventions and a relentless focus on operational excellency. We are committed to building on this momentum and delivering even stronger results in the coming quarters. To achieve full potential at Tyra, we have identified 3 focus areas, and we are taking action in each area. Firstly, we need to increase the export potential. A dedicated offshore task force is addressing water treatment constraints, which has been a limited factor for processing capacity. Specialist vendors are supporting these efforts to accelerate troubleshooting and implement effective solutions. Secondly, on process reliability, the October 2025 intervention campaign completed just recently was designed to improve operational efficiency and reduce unplanned shutdowns. The scope was successfully executed with only a few minor items being finalized today. A brief issue during the restart of the IP compressor was quickly resolved and work is now underway to bring the LP compressor back online. In the meantime, production continues from Harald and HEMJ. Thirdly, we need to unlock remaining well potential. As operational stability increases, we will bring additional wells online to further boost the production. Strong well and reservoir performance is expected to continue supporting our growth ambitions. Looking ahead, the near-term production outlook for Tyra is very strong. Early Q4 delivery is robust with recent production reaching approximately 27,000 barrels of oil equivalent per day net. We delivered Q3 Tyra production of 18,900 barrels of oil equivalent per day net in the upper end of our revised Q3 guidance of 17,000 to 19,000 and we are reiterating our Q4 guidance of 20,000 to 27,000 barrels of oil equivalent per day net, reflecting our expectations based on the recent work of TotalEnergies. And our strategy is to maintain this momentum, maximize the value of our assets and ensure long-term stability for Tyra. And with that, I will hand over to Cathrine, our Chief Corporate Affairs Officer, to talk about the long-term outlook for BlueNord.

Thank you very much, Miram, and good morning to everyone. I will now run through the opportunity set we currently have in the DUC. A new of this quarter is that I will also show you the production profile of the business going all the way until the end of the license expiry, which currently is in 2042. Together with the partners in the DUC, we have a robust plan with activities over the next years, which will not only support the production we're seeing near term but also allow us to stay above 50,000 barrels per day beyond the end of this decade. And for the first time, we're not only showing the profile until 2030, but until the end of the license, which currently expires in 2042. On this page, there are mainly 2 things I want you to focus at. Firstly, the production we have on stream today from the base assets and Tyra, coupled with the contribution from the near-term projects, which will be sanctioned over the next few years. The profile running to 2030 is showing you just that, our producing fields and our near-term projects. Secondly, and what is new is that we're illustrating the production from 2031 until the end of the license in 2042. This is what you will see in light green. We are well above 50,000 barrels a day at the start of the 2030s and the profile continues all the way to 2042. The production profile is only constrained by the expiry of the license. And even without an extension of this, the barrels we produce are profitable for BlueNord until the point where we potentially exit in 2042, which is around 50,000 barrels per day. One thing we have not included in this profile is how the long-term production profile may look if the license is extended and further investment opportunities are unlocked as a result of that. And as a general principle, all decisions made in the partnership to consider further investments to boost the long-term production in the DUC will be made through an economic lens where we progress 2C resources not only for the sake of increasing output, but to add valuable barrels that are profitable and support the long-term cash flow of the business. And this takes me to the next page, where we show a breakdown of the discovered reserves base, which, together with the already producing assets constitutes the backbone of the long-term production profile shown on the previous page. We currently have 193 barrels of 2P reserves and it's worth mentioning that we have had a positive reserves replacement ratio since the acquisition of the assets in 2019. 33 million of these are projects justified for development, meaning they are mature enough to be included in the 2P base. In addition, we have 28 million barrels of 2C resources, which we define as near term and which we will aim to move from 2C resources to 2P reserves. And we also have more than 10 million longer-term 2Cs, which are typically different infill opportunities. And lastly, there is definitely potential beyond what we're showing today as we're currently only constrained by the license expiry in 2042. And then looking more in detail at the substantial resource base we have in the company, which are not only producing valuable barrels today, but also those resources, which will deliver new volumes in the near and medium term. We have a tangible plan in the partnership to sanction both infill wells and 3 development projects, which are adding not only to the future production, but also to our future 2P reserves. The projects Tyra North, Halfdan North and Valdemar Bo South require simple infrastructure with unmanned platforms and all 3 of these are to be tied back to existing infrastructure. Two of them will be tied back to Tyra. And the idea is that these will help backfill the brand-new and efficient processing capacity we have on Tyra. The fact that these projects are tiebacks also help to make them very competitive from a price point with unit technical costs sub-$20 per barrel. Tyra North and Halfdan North have already been progressed sufficiently to be included in our 2P reserves and all 3 projects add significantly to the future of the production profile with a total of 45 million barrels. And then in addition, we have several infill drilling opportunities. Infill drilling is a very cost-efficient and relatively quick way of adding additional production. And the main cost element is really related to the rig that you're using. The infill wells in our portfolio have very robust economics with unit development CapEx below $13. From what we have disclosed today, we have 2 wells on Halfdan, 1 on Valdemar and 2 wells on Svend. Together, these wells represent a total of 11 million barrels in 2P and near-term 2C resources. And in addition, we have a significant potential to drill further wells around the Tyra hub. The redeveloped Tyra hub did not only represent a major step change for our business, it also unlocked a gross potential of more than 200 million barrels of resources. These opportunities will be communicated once further matured and will need to meet strict economic requirements in order to be sanctioned. One of the truly impactful investments around the Tyra hub, we have already executed, which was the HEMJ, which we drilled last year. And with a payback time of less than 6 months, it definitely represents the type of investment opportunity we will continue to chase and which both utilizes the new Tyra facility and also contributes significantly to the current and future cash flow of the business. And on that note, I will leave the word to our CFO, Jacqueline, who will take you through our Q3 financials.

As we've just seen, our operational achievements and strategic positioning have set a strong foundation for the future. With Tyra ramping up, we're now entering a phase where our financial strength and disciplined capital allocation are translating directly into material returns to our shareholders. Let's turn to the numbers and see how these efforts are reflected in our Q3 financial results and our outlook for value creation. Let's start with our financial performance for the third quarter. We delivered strong profitability and cash flow driven by continued production growth from Tyra, of which HEMJ is a key part. Revenue for the quarter reached $246 million, which demonstrates relatively consistent pricing on both oil and gas as well as the impact of higher gas volumes from Tyra. EBITDA of $131 million and net cash flow from operating activities of $128 million demonstrates our strong cash conversion. Our liquidity position remains robust at $447 million and our net leverage stands at 2.3x. This solid foundation supports our ability to deliver returns to shareholders and invest in future growth. Now while strong results are important, it's equally critical that we protect our performance against market volatility. Let's look at how hedging -- our hedging strategy supports this. We continue to use hedging as a way to provide visibility over future cash flows and we add volumes where it makes sense to do so. We've maintained stable realized prices over the year despite ongoing market volatility and this is well supported by our hedging program. Positively and linking back to what we said in Q2, we have improved on the gas nomination process this quarter and have seen the level of penalties halve. This translates into better realized pricing on gas. Currently, 47% of our forecast oil volumes are hedged through to the end of 2026 and 45% of our forecast gas volumes are hedged through to the end of '26. This approach provides price protection and supports visibility over our cash flow, ensuring we can deliver on our commitments regardless of market swings. Efficient operations are also key to our success and something we've been looking forward to as Tyra ramps up. Let's look a little more closely at how our cost base is evolving. As Tyra production increases, our unit operating costs continue to trend downward. The modern Tyra facilities are significantly more efficient. And as we ramp up volumes, our fixed costs are spread over more barrels, driving down unit operating costs towards the level we have been targeting of $13 per BOE. This efficiency directly supports improved margins and enhances our financial resilience. The chart demonstrates this trend and it is worth highlighting that 2025 year-to-date has also included workovers, which we didn't have in 2024. Excluding these workovers, lifting costs per BOE are now at $17, well on the way to $13 per BOE. With a lower cost base and stable pricing, we are well positioned to grow our operational cash flow. Let's explore this further. Net cash flow from operating activities is the key metric that defines our distributions to shareholders. We're seeing significant growth in cash flow from operations, supported by our hedging strategy, lower unit operating costs from Tyra and the positive impact of our tax loss position. This growth enables us to deliver meaningful returns to our shareholders while maintaining financial flexibility. Positively, during the third quarter, we saw improved cash conversion from EBITDA and thus the reversal of the large working capital impact noted during the second quarter. Net cash flow from operating activities for the quarter before working capital was $132 million and $128 million, including working capital. But looking ahead, our capital expenditure profile is also changing. Let's discuss what that means for our investment plans. With the completion of the Tyra redevelopment project, our capital expenditure has significantly reduced from 2025 onwards. We expect CapEx to be around $50 million in 2025 with a similar level anticipated for 2026. Future investments in 2027 and beyond will be carefully evaluated and sanctioned as appropriate, ensuring disciplined capital allocation. This lower CapEx in the short term further enhances our cash generation over the next couple of years. This disciplined approach to investment, combined with our strong cash flow supports a robust liquidity position. Let's turn to that now. At the end of Q3, our liquidity stood at $447 million, including $250 million of undrawn RBL capacity. The third quarter also reflects the payment of accrued distributions relating to 2024 and the first half of 2025. This strong liquidity position ensures we can support both our operations and our commitment to shareholder distributions. Alongside liquidity, we're also making progress on deleveraging the balance sheet, which you can see on the next slide. Our balance sheet remains stable with no near-term debt maturities. As Tyra ramps up, our leverage is declining as expected. The structure of our RBL facility amortization and bond maturities provides us with financial flexibility and positions us well for the future. Finally, let's turn to our distribution profile and how we're delivering returns directly to our shareholders. Returning meaningful capital to shareholders is a core part of our strategy. Our policy is to distribute 50% to 70% of operating cash flow through to the end of 2026 and we aim to maintain meaningful returns in 2027 and beyond. For 2025, we've already declared and proposed substantial distributions with a total of $302 million already declared and paid with a further $89 million proposed to be paid for Q3 2025. This maintains distributions at the top end of our target range and further emphasizes our continued commitment to delivering returns. So in summary, our strong financial performance, disciplined capital allocation and commitment to shareholder returns positions BlueNord for continued success as we move forward. With that, I'll hand back to Euan to discuss our strategic priorities and the path ahead.

Thank you, Jacqueline. So as we wrap up, I want to bring the discussion back to strategy. Our focus in BlueNord is deliberately narrow and our objective is incredibly simple. First, we want to maximize the value and cash flow from our producing assets. To do this, Miriam and her team work closely with the operator to make sure that we're getting everything we can from the DUC. Second, we want to maximize the cash available for distribution. That means maintaining a fit-for-purpose capital structure, one that is aligned with our distribution objectives. But it also means continuing to progress accretive near-term projects that sustain production and extend the life of our assets. The impact of this is that it keeps the value of our portfolio high. It supports our leverage capacity. And importantly, it also pushes out the timing of when we need to start provisioning for abandonment costs, all of which strengthen our ability to keep distributing. And finally, while we are perfectly comfortable with BlueNord having a finite life that ends when our DUC license expires, we also recognize that with the platform we've built and the clear focus that we have, there may be opportunities to enhance what we already offer to our shareholders. So we are looking at selective growth, opportunities that build on the story that we already have. And here, we're applying a very simple test. Anything we consider must be accretive to near-term shareholder distributions. That's our red line. And on this topic, in particular, you can be sure that we're laser-focused on the outcomes that matter most to our shareholders and that we'll maintain the same discipline and approach that we always have. And finally, before we move into Q&A, I want to close with a few final reflections. First, on operations. Tyra production is strong and still growing. The operators' focus on uptime and stability has really paid off and we still see room for more progress. That's not just in terms of peak rates, which we continue to believe can exceed 30,000 barrels of oil equivalent per day, but also in sustained averages as reliability continues to improve. Second, on shareholder returns, our distribution program is well underway. Together with what we've paid, we're making real progress on delivering on our commitment to maximize returns to equity holders. And finally, on outlook. I hope what you take away today is that while we've already achieved a lot, there's still significant value and opportunity within our portfolio. We see real potential to keep building on the strong platform that we have and we remain every bit as focused and disciplined as ever. So I'll pause here to give everyone a moment to send any last questions and we'll be back shortly for the Q&A session. Thank you for joining this morning.

So first one is Miriam. Production is revised down for the full year. Have you overestimated the production possibilities? Or is it still just ramp-up hiccups?

Thank you. So today, we reiterated the guidance for Q4 for both base assets and Tyra. We revised the guidance for Tyra in September, reflecting the planned shutdown in October and the water treatment constraint that the operator is working on to resolve.

Thank you. And then again to you, Miriam, to clarify Slide 11, has there been a change to the expected plateau production specifically from the Tyra field. With the HEMJ well outperforming expectations, the field plateau should be higher unless they have this constrained by operational capacity?

So we have not changed our view on the expected plateau level. This is constrained by the IP compressor capacity. And this means that with the excellent production from HEMJ, we will be able to extend the plateau, we cannot increase it.

And then based on the low year-on-year decline on the base assets we have seen in the past 4 or 5 years, do you expect the operator to get to the same place on Tyra going forward?

Yes, absolutely. We see that the operator is doing a really good job on the reservoir performance on the base asset and we expect that they would do the same for the Tyra assets once we reach a stable production.

And then some questions for Jacqueline. First one, do you have a target net debt position that reflects the maximum efficiency level for the capital structure?

Thanks, Cathrine. So the leverage target, which we've always talked about has been achieving around 1.5x through cycle. So we're on that trajectory, particularly with Tyra production increasing. So the current net debt level is supportable for the near-term outlook of the business.

And then you produced almost 70% more than same quarter last year, but the dividend per quarter is almost the same as last quarter if you divide 2024 distribution per quarter. This seems because of still very high costs. When can we expect costs to come down to earlier guided levels?

So first, the point on distributions, at least comparing -- and I think we showed it in the presentation, comparing Q3 '24 distribution, if you spread out the amount we paid for '24 and compare that with Q3 '25, we're showing an increase from $60 million to $89 million. But then the question on costs and I'll also point towards the presentation we just did, where there is a downward trajectory on the operating cost per BOE. So this is as Tyra continues to increase production. And as we've previously mentioned in Q1, the OpEx does include workovers for this year and this was a part of the change in our rig strategy. So Q1 to Q3 '25 does have a higher OpEx. We are expecting that for Q4, we will see lower OpEx because we won't have any further workovers. Currently, direct field OpEx is at $17 per BOE and that is on the path towards the $13 per BOE we've previously guided.

And then are there any penalties this quarter? If so, how much?

So there's been a significant reduction in the penalties this quarter. It's down to $4.9 million, which is about half of what we saw in Q2. Part of that is because of we still have some interruptions. So within day, there is a smaller penalty impact of that.

And then how is the additional $56 million of compensation bonds payable to the BNOR15 holders calculated?

So this was based on the fair value of BNOR15 at the time we agreed the transaction, and that was back in June 2025.

And then finally, why has the balance sheet at the end of Q2 included both BNOR15 and its replacement bond when one is contingent on the other. This has led to an apparent significant increase in net debt, which presumably has already reversed in Q3.

So the end of Q2 balance sheet does not include the replacement bond. It only includes the redemption value of BNOR15. And then in July, BNOR17 was issued and BNOR15 was then settled. I guess to explain a little bit on our balance sheet, BNOR17 is treated nearly 100% as equity and it's presented under equity on the balance sheet. So just to walk through the net interest-bearing debt on the balance sheet. This is almost the same quarter-on-quarter as BNOR15 is settled, then you have BNOR17 treated as equity instead and we have paid out distributions accrued of $302 million during the quarter, which has, of course, significantly reduced our cash balance. If you then look at interest-bearing debt for covenant purposes, this does not include BNOR15. So this has increased because the cash balance has decreased as previously noted. And then just to make the point on the balance sheet as it stands as at the end of Q3, interest-bearing debt includes the RBL and BNOR16 as before and these are largely the same as in Q2. There was a small increase on the RBL drawing, and that was the only change there.

Thank you. And when does the share go ex dividend and when will it be paid out? And I think I can answer this. The shares go ex on the 21st of November and it's also subject to shareholder approval the day prior at the EGM, which is to be held on the 20th of November. And we expect payment date to be on or about the 27th of November. And then some questions for you, Euan. You still have a quite substantial cash balance, partly driven by the release of escrow account. What is the plan for this? And why are you not paying this out as dividend?

So look, I understand the question and I appreciate that us having a strong balance sheet and a strong liquidity position does raise this as a topic. I think for us, our starting point is really the same as it always has been. We've set a distribution policy, and it's one that we believe is attractive to shareholders and recognizes the cash generation capacity of the business that we have. We are fully committed to delivering not just the formal aspect of that policy, which is 50% to 70%, but also the spirit of it, which is we know that we need to maintain a conservative capital structure. We also want to maintain the cash -- sorry, maximize the cash that we're paying out to our shareholders. So what I think I can say is that as we move forward, we're going to keep doing what we've done so far, which is we're going to take into account the outlook for commodity prices, the continued stabilization of Tyra and what we expect to be a growing quarterly cash generation profile. And when we do that, we'll keep evaluating the distribution capacity and we'll pay out as much as we can.

And what do you guys think about the share split to trade more in line with share price with other E&Ps in Oslo like Panoro, Var Energi, [ BV Energy ], et cetera?

So it is something that we've considered, but I think it would also be fair to say it's never been a priority compared to some of the other things that we've had on the agenda and making sure that we're fully delivering the rest of the business. That said, something we will continue to look at. And if it's something that we can get comfortable as genuinely additive, for example, if it increases our trading liquidity or we think it would increase our trading liquidity, then it wouldn't be something I would rule out.

And then the final question for today. Can you please comment on the potential license extension, if possible? Are those discussions taking place with local authorities in Denmark, assume an extension would be highly supportive for taking potential new FIDs.

So I can't say anything specific about specific license extension discussions, but I will point to 2 things. One is that, as Miriam covered, we had the Tyra inauguration during the quarter. I think that was positively received. And I think it was a positive recognition of not only the contribution of Tyra, but also the broader point about the role that gas has to play in the energy transition. So I think there is a generally supportive backdrop of what we're doing in the country. And then I think the second thing I would say that for the first time today, what we've published is we published a profile that goes out to 2042. So not only can you see that we expect that plateau production at the current peak levels of around 50,000 barrels a day to continue beyond 2030, we also expect to have a meaningful production level in 2042 when the license currently expires. So there's certainly potential there. And this part is probably obvious. But as you have a longer window for payback on projects, of course, that would support further investment. But we can't say anything specific about the status or otherwise of license extension discussions.

Okay. That concludes the Q&A session. Thank you to everyone who joined.

Thank you.