DOF Group ASA (DOFG.OL) Q2 FY2025 Earnings Call Transcript & Summary

Hello, and a warm welcome to this Q2 presentation with DOF. In this presentation, we will cover operational and financial highlights from the quarter in addition to outlook and guiding before we do a Q&A session at the end. You can submit the questions through the Q&A function in the webcast player, and that is open also during the presentation. So with that, I leave the word to our CEO, Mons Aase.

Thank you, and welcome again to the presentation. Yes. So in the front page, we saw was a picture of Skandi Angra, who is just -- change to front page -- because she is 1 of 7 [Guyana] subsea that we have been in more like long-term contracts with Petrobras on -- in the quarter and just after the quarter. So it was building a lot of backlog. And also worth mentioning is, of course, that rate levels are up quite a bit from the existing contract they have. So one of the highlights, of course, in the quarter is that we have signed [indiscernible] on long-term contracts starting early '26 and then backlog into early 2030 on those 7 boats. So it's a big, big win for us. And of course, it derisked the earnings all the way to 2030. So then we can start on the -- so this is DOF at a glance. I guess most of you all have seen it before. And so we still operate 77 boats, where we own 65, and we charter in 4 and then have management on 8. So operating globally long history. Backlog at end of the quarter was USD 3.7 billion when we include what has been awarded after the close of the quarter, we are well above $4 billion. We're going to talk a bit more about the backlog after, yes. If we look at the graphs here on the revenue last 12 months, of course, it's up a lot from '24. It's also up last 12 months on EBITDA. It's moving up. And on the other graphs you see where we have our employees and where we have our vessels. So still the Atlantic region, which is mainly North Sea and West Africa or where we have the biggest presence, then followed by South America, which is mainly Brazil. We have one boat in Argentina and then we are growing in North America and also have a very nice presence in APAC, yes. So that's who we are at a glance. And if we move to the next, this is what we do. As mentioned, we own 65 boats. We also hire in 4 boats that we utilize on our projects around the globe. And then we own -- I think we are the third or fourth largest owner of, what we can call, subsea equipment or ROVs and AUVs. And we have several subsea specialist that execute our projects globally and then we deliver to our clients, integrated services. Clearly, vessels are only part of the deliveries we make. And looking at the earnings, we see last 12 months, the asset earnings are up quite a bit. Also the region earnings or what I call the people earnings, this is what we get out of the teams working on the projects. They also are growing. And totally, we are growing, of course, as well. So it's been -- and of course, when we look little closer at second quarter, which is on the next slide, we -- of course, it's been a good quarter for us. We have to say that it was a good quarter. It was almost above our own expectations. And also as we understand beating consensus quite a bit. So to $214 million in EBITDA in the quarter, which is, I guess, all-time high for us. DOF Denmark, which we are very happy with, we saw a big step up on that fleet compared to first quarter. So we made $45 million in the quarter from that. Still room for improvements as I think we had 81%, 82% utilization on the fleet. So there is still a potential for more. Interesting also, of course, is that this is only the assets, but part of the reason why our subsea earnings or the earnings from the regions increases is, of course, that we have executed projects for a few more of the DOF Denmark vessels. So -- and on that also part of the reason why utilization is at 82% on that fleet because some of them have been stopped to install subsea equipment in the quarter. Perhaps what I'm most proud of is that we are able to deliver a 35% increase on, let's say, the old or the legacy DOF. And of course, that is with the same fleet with the same people. So we see an increase on old DOF from $122 million to $169 million compared to last year, which is pretty good. So all in all, a very nice and good quarter on operations. Backlog mentioned as we come back to that. And on the guidance, we have narrowed it now to $740 million to $770 million. And the reason why taking it down a bit on the top, but also, of course, increasing in the bottom is that we -- due to the 10 signed contracts with Petrobras on anchor handlers and RSVs, some of them will be mobilized -- start mobilizing in second half quarter 4, meaning we will have a few boats out of earnings in 1 to 1.5 months. And that will, of course, reduce the EBITDA a bit in the fourth quarter. On the debt side, we are down, I think it's [ 205 ]. And so we are almost down to the level we have communicated where we want to be 1.5 to 2. So -- and of course, that only included DOF Denmark for 8 months. We continue the dividend. We will pay on 4th September $0.3 per share. And then we will see going forward how we -- if we, the Board and the management, of course, we like to see the dividend grow a bit going forward. So let's see how that pans out going forward. So then the next page, please, is then new contracts. And of course, it has been a good quarter also on a good July on that. We have -- it's a lot Brazil, of course, but also quite a few contract elsewhere. So all in all, a very good order intake in the quarter. I don't go through all of these contracts. So you can read them yourself and you can ask questions in the Q&A section after if you have questions or any specific of this new contract. But good order intake. And if you look at the next page, of course, we summarize more the Brazil. So we have here 14 boats, which we have indicated that we believe we will sign up for 4-year contracts. 10 of them are now on signed. The 7 anchor handlers, 3 RSVs and then it's 4 left. Then we expect to in the -- let's say, in the next -- in the near future sign up the remainder, the 4 last boats. So it is a big jump in backlog. And of course, you also have to note that, of course, it's on very decent terms. So I think on 7 anchor handlers or the 5 anchor handlers that already are in Brazil, you are talking at least 30% rate increase compared to the old rates here. So roughly speaking. So it's good to make such backlog at those levels. So then we have -- I guess, the next one is -- and if you remember, and I don't know if you do, but I do, and I think when we did, we announced the, let's say, the acquisition of Maersk Supply Service, which we now call DOF Denmark. We had one of the, let's say, challenges we wanted to solve was too high exposure in the, let's say, in the spot market for anchor handlers. So when you look at it, the -- out of this fleet we had only 1 boat with a firm contract into '26, and then another one with options. So what we have done since that is that we have done which here is in dark blue, where we have done Skandi Mover and Skandi Mariner on long-term contracts in Canada at 5.5 and 2 years supporting the White Rose field in Canada. We had done recently also done Lifter and Logger on 4-year contract with Petrobras. And then we also did the Cutter, a new contract with the same client for 3 years. So we have -- we have done 4 or 5 long-term contracts. And in addition to that, we have sold 2 smaller boats, the Tender and Trader. So taking the exposure now to 4 boats to that fleet in the spot market. And of course, that was what I think we said where we wanted to end, that we wanted to have 3 to 4 boats in that market because for us, of course, this is not only -- it's not a pure spot market exposure. It is boats that we will use for our mooring projects globally. So like the Laser, here for example, and Master and Minder, they will go to Congo for a few months in the fall, so let's say, October, November into December. They will support subsea on a project in Congo. So we are -- we have done what we hope to do and plan to do. And are happy with the situation, of course, under the exposure then to, let's say, what we can call an unpredictable spot market is reduced a lot, and we are where we want to be. So that's, I think, I think, a very important message. And of course, that will also hopefully, and not only hopefully, of course, it also increase the earning of that part of the fleet quite a bit compared to what we have been able to do so far in '25. And '26, of course, this fleet will deliver higher better numbers than what we have seen [indiscernible]. And yes, the next one is -- I guess it's kind of bragging a bit, but it's also, I think, important to understand, and that is the value of the global presence. So it's not -- it is various opportunities, it's various rate level, it's various terms in each region. So to have a global place in power and a global presence is very high value in this market. And so here we see -- and we have mentioned already. We move vessels from the North Sea to Brazil, we move vessels from North Sea to Canada, we move vessels from the North Sea to Guyana and we move vessels from the North Sea to Australia. And why are we doing that? It's of course, that is better paid than jobs done what the boats -- they're able to do in the North Sea. We also, on the last page, mentioned that we also do, of course, projects globally. And other examples, we have a project now in Congo in commencing now in quarter 4, serve for the year where we will use 6 vessels amongst 4 anchor handlers. So it is -- I think this is -- it's difficult to understate the importance of -- to get utilization and to maximize income to have this placing forward globally and of course, placing forward also on the subsea project side. And I think that is what, let's say, different from a lot of other players in this industry. So then we go to the next -- as we said, the regions have had high activity and delivered a very good quarter 2 here. It's also good coverage and good project portfolio for those guys in quarter 3 and going forward. So good earnings, good utilization and good performance on the projects. And I guess, part of the plant with DOF Denmark was to integrate some of the boats into the regions and operate them under the -- with a broader offering than only a boat. So today, we have 2 I-classes in the Atlantic region. We have 1 I-class in Brazil, and we have 1 I-class in North America, all working. So it's starting to ramp up. But these projects is just some examples. We did sat diving projects in Malaysia. A good project we did, interesting, a cable project here in the North Sea with Skandi Inventor. We did that now in June into July and then we used Skandi Hera, which is the anchor handler, a crane for a pure subsea project in the North Sea. Also then, we actually have to say that we -- and players have been sold out for our own boat. So we also executed a short-term project for -- with a short-term charter on a third-party boat. So it's a good quarter in the regions, and we see a lot of tender activity in regions. We see a lot of opportunities, and we see a nice, let's say, pipeline of work. And so we are -- I have to say, we are getting optimistic on '26. So it looks quite okay. So then it's the backlog. And so as you saw, we have including the order intake after balance, we are at $4.2 billion. And that of course, excludes the 4 contracts we expect to sign soon in Brazil. So it will be higher than that. So for the remainder of the year, we have $777 million. I guess, in reality, it's a bit higher than that because there are some variation in orders and there are -- so it's -- so I would say, perhaps plus -- 85% to 90% of the expected revenue is covered already. So it's uncertainty on the last 2 quarters are relatively moderate. If you look at vessels, it's a few gaps on, you could say, apart from the spot tanker, it is a few gaps on 4 vessels, I think, on the CSV side. So it's relatively low risk, but of course, still a few jobs to bag. For next year, we have $1.2 billion in the bag, and that's also with 4. And of course, that is, I think, midpoint guidance this year, you're talking 62% or something. So -- and of course, with the deals we are expecting, we probably are on the same level backlog wise as we was a year ago for '25. And hopefully, we will be able to start '26 with more than 70% backlog. And that, of course, indicates it will be quite a good year. And so I'll leave it like that. And as you hear, we are pretty optimistic on continued bagging work around the globe.

Yes. And we already mentioned high-level numbers. And, as we've said, they are really good, both on turnover and on EBITDA level and also further down the P&L. Going a bit more into details over the last few quarters to see where the contributions come from. We see there is a big leap from last quarter to this quarter, although it has been gradually improving quarter-by-quarter over the last 5 quarters. Very happy to see the yellow contribution on the screen. DOF Denmark fleet, 82% utilization, $45 million worth of EBITDA contribution. And as Mons also stated, the legacy DOF apple-to-apple comparison 1 year -- if we compare to 1 year ago, it is a 35% improvement close to $50 million, which is also very, very strong performance. And that is not one single contributor. It is some come from the vessel ship-owning part of the group, some come from Norskan, some from DOFCON and a very strong contribution from the subsea regions. On the next page, we see the -- on the left-hand side, we see the leverage that we have been focusing quite a lot on over the last few years and periods. It's continuing to drop. We saw a small jump in that graph when we did the transaction with DOF Denmark. There are no amendments or adjustments in this to account for the fact that DOF Denmark only contributes with parts of the year in EBITDA and the full debt from Q4 2024. So we expect that the number in reality, if we had annualized or included the full 12 months on DOF Denmark contribution, that 2.1 would be within the target of 1.5 to 2. And of course, we see with the current performance that we are heading into that range also with, yes, with no adjustments. On the gross debt development, there are really no big events this quarter, apart from the delivery or the charter party commencement of the REM Inspector that we took on hire from REM and that went on hire to Equinor in Q2. That is the addition on the IFRS 16 lease debt. And that's only visible on the gross of the interest-bearing debt, the yellow, not the white figures and not on the blue because it is chartered directly out. We don't -- we have a sublease that net this element out on the net interest-bearing debt. Other than that, on the debt side, it was normal amortization on the new facilities and the regular payments of lease debt in the quarter. And we also had some ROV leases commencing in the quarter for subsea equipment. We still have a very healthy cash balance going from $427 million at the end of last quarter to just below $400 million at the end of this quarter. And it is a very strong operational cash flow in the quarter despite the improvement in -- or the increased activity that affects changes in working capital, but not to a larger extent than the increased activity. So all in all, a very good quarter. Although not visible here since this is management reporting, there was a USD 30 million dividend from DOFCON paid in the quarter. So visible on the legal accounts that is excluding DOFCON on the proportional -- or from proportional consolidation. We had a CapEx payment of $59 million during the quarter. That is primarily installments on the new build to [Sea Dragon] project the [Canada] hope is to be delivered in the beginning of 2027. We do expect that to be financed in the relatively near term. So this is the funds that we will, call it, get back from financing, yes, within a reasonable time. And again, debt we mentioned the other free cash flow items from the quarter is the dividend that we paid in June of [indiscernible] million. And of course, we're happy to announce that there is a new dividend declared to be paid on 4th of September. So last day, including those rights will be the 26th of August, again, $0.30 per share, bringing the total paid and declared dividends from the DOF Group in 2025 to $148 million.

Yes. And then on guiding, not major changes. The revenue as it was $1.9 billion to $2 billion. EBITDA, as mentioned, we have narrowed the guidance to $740 million to $770 million. Of course that is a reflection that uncertainty is lower, but also a reflection that, as I mentioned, someone in Brazil [country] will need the boats to stop for some weeks to mobilize and do acceptance tests done and so on. And that means that, of course, they will be also earnings for a period in quarter 4. Depreciation unchanged. It was the EBIT as a reflection of the above. And then the next change is on CapEx. And of course, an increase here of $20 million, which is also then a consequence of -- for the 10 contracts signed in Brazil. So yes, so I think, we'll leave it like that than we are on the next page, which is then outlook. So one more time guidance, $740 million to $770 million. We experienced still good markets around the globe. We have a very nice backlog for this year and next year. We have a lot of deals in the pipeline, and we expect to build the backlog going forward and have enough to bid on. So it is looking good. And then our pictures down here. We are trying to tell the story. If you start on the left-hand side, those are our 6 boats. And of course, it is why we don't think -- part of why we don't think 2025 is the peak. When I first wanted the REM Inspector that we took on to Equinor late in quarter 2, which, of course, then will have a full year in '26 and contribute. On the earnings side, we have a picture of the Niteroi pipeline, Niteroi on those is [indiscernible] where we, of course, have communicated earlier that there is quite a high rate increase when they start to mobilize for new contracts later this year. And then you have a picture of anchor handlers. We mentioned the red ones where we see a nice uptick in rates and then you have a picture of the gray anchor handler, which is Lifter and [a sister boat] Logger that will go for long-term contract in Brazil, leaving what you can call not a very good North Sea spot market this year. So I'll leave it at that. So it means that we're not guide for '26, but of course, we see '26, let's say, shaping up quite nicely for us. But of course, there is still a bit to do on the backlog. Then the next picture is the Salvador which represent for ROVs still to be signed in Brazil, which we expect to happen soon. Then the next one, the gray one, is an I-class, Skandi I-class where we have 4. I mentioned that we are aware, but also that we now have finalized installing subsea crane on all 4 of them. We installed 2 ROVs which is on the last picture. So we expect those boats also on average to deliver more in '26 than in '25. Yes, and of course, we don't have to stop them to move equipment next year as we have done that this year. So all in all, we are happy with quarter 2, and we look forward to second half and we will look forward to '26. Then we will have a Capital Market Day on the 9th of September in Oslo in -- as we had last year at Pareto Securities overseas. And we will talk more about the strategy going forward. We will focus on Brazil. We will also focus on North America, which is a region that has been growing a lot lately. Where we have huge additions in Canada through the DOF Denmark acquisition, but we also see an exciting market in [Suriname] and Guyana and Trinidad and so on. So a deep dive on that and a few other items. So we invite you all and I hope you are able to attend that on the 9th September. So that was the final slide and then we are open for questions, please.

Great. As mentioned, you can still submit the questions through the webcast Q&A function. But we'll kick off with some of the ones that have come in. The first one relates to the project pipeline for the next summer. What is your initial assessment of the project pipeline? And how does that compare to this year?

Project for summer '26?

Yes. We have a project pipeline for the summer of 2026. How is that looking now? And how does that compare to this year?

It is -- I would say that the expectation for next year are more or less the same as we had for this year. So it is opportunities on the same level. Some of them of course, still has to be won. But I think the starting point on the outlook comparing '25 to '26 more or less are the same. And of course, most of the CSV fleet are already mainly booked for 2026. So it's -- so our expectation is that the market will perhaps in '26 be on the same level on the subsea side, as we saw in '25. And that we have in our schedules and in our opportunity list, there is, I guess, the same -- at least the same level of opportunities that we had last year.

Next question is, has there been any progress on the RSV new builds in Brazil since it was last discussed on the Q1 call?

Of course, there is progress. Of course process like that take time. And of course, we are still -- we are discussing with [indiscernible] and so there are negotiations ongoing and of course, still a gap in between us and them, but the gap is narrowing compared to what it was a month ago. So -- but still a way to go before that is concluded.

Okay. Considering the current backlog with new contracts in Brazil and elsewhere, are there any vessel segments where you will need to add vessels either through hiring or buying new vessels?

It's a very good question. And if you look at it, I think the segment on CSVs, let's say, from small CSVs higher boats with one of [2 ROVs] up to the 250 tonne class, it is I think it's -- if charter is take a few options that we expect them to take. We are, so I would say call it sold out in that segment. So suppose we -- ideally, of course, we would like to have a few more boats in that segment, but we will not increase any risk. So if we are clever and do it the right way, it might be that you will see that the -- we will need to charter in both due to [indiscernible] So but we have a few projects in discussions where we see we might lack a boat or 2. But at the same time, of course it's not -- it's what I will call [initial] problem to have part of the fleet sold out. Suppose that, the 7 RSVs, we expect or hope to we win already going forward, 3 that boats of course, then that boats of course, reduced availability in that...

Alright. Martin, could you give an update on how you see the refinancing of Norskan with the debt that is due early next year?

Yeah. We can. It is, as you said, there is $78 million repayment in Norskan to international lenders in Norskan for, yeah, January next year. I think we have all through this year communicated that we plan to resolve that prior year end and as soon as possible. And I think, yeah, update on that is that is still the plan. We are planning to repay it through the fall at some point. And, of course, yeah, we will link that to discussions we had during the spring on the potential bond loan, and that is still something that we are considering. And we -- also fwe mentioned it on the CapEx guidance earlier that we're also doing financing on the growth CapEx on this -- the Sea Dragon or the new build. And we need to yes, view these things together.

What do you expect to be the impact of your increased CapEx on your EBIT margin? And will CapEx be normalized in 2026?

Yes. We can do the first -- the second thing first, 2026. Of course, we're not guiding 2026 yet on details. But if we take a very simple look at the building years on general fleet, we will see that assuming that all vessels are docked every fifth year, it is a bit lower amount of dockings in 2026 than in 2025. So all else equal, it will be a little bit lower. And -- yeah, there are no there are limited amounts of -- there are no growth in CapEx other than the remainder of the new build for 2026. And, of course, that is known to us today, but it is a bit too early to detail the guide on CapEx. But maintenance CapEx is a little bit lower than this year. On impact percentage, impact of increasing CapEx, CapEx is depreciated. I guess that is the reason for the question. And vessel CapEx usually depreciated over the remaining lifetime of the vessel, while ROVs are depreciated on its assumed economic lifetime of twelve years. So it is a bit detailed question. But I would say that the duration of the depreciation on these items is so long that it has a very limited impact on depreciation and thereby EBIT for the coming period. But over twelve to twenty year period, it is, of course, the full value of the CapEx impact on the EBIT.

The next one on working capital. There has been a buildup of working capital in H1. What do you expect for H2?

Of course, the biggest driver capital when you assume that your clients pay on time or continue to pay in the same pattern as they have done historically is the turnover. And if we do the implicit guiding from -- for turnover for second half, it is slightly above turnover for first half, but less than the annualized or the double of second quarter. So I would without the detailed rundown on this, I would say flattish for second half is to be expected.

All right. If we assume a stable activity level going forward, would you say okay to extrapolate on the Q2 levels for lease payments and lease debt levels?

Yes. That's two different kind of leases. So if I assume that this is the IFRS 16 vessel charter that is recognized as leases on the balance, that depends on the number of vessels that we have chartered in. That is the vessels that is currently on that list is the Stril Explorer, the Havila Phoenix and the Rem Inspector. So as long as they are all on charter, the payments will remain the same. But yes, depending on when they roll off, whether there are new vessels on charter, but provided the same amount of vessels on charter, that will remain stable from now onwards. On the more financial lease, meaning that we have financed subsea equipment with financial leases, there is a big or there is three ROVs delivered in the quarter where new leases have been established. So those payments are we can expect to increase a little bit, but it's not material in the big small things.

All right. Then on the backlog, are you able to provide any direction, on the margins in the backlog?

It is good, perhaps there is a big difference between straight vessel charter and, you know, a subsidy. They contribute to subsidies, yes. So, you know, we really prefer to talk about, let's say, what we deliver in EBITDA than what the margin is. Because if you do a big project, the margin might be 40%. Yeah. And if you do a vessel charter, the margin might be 70%. But in the end, you normally make more money if you utilize the bus from the project on a straight shot. I guess so. But I guess, you know, we had these pictures on the last -- the second last page where we have, of course, rate increases. So let's say if you keep all as equal, the margins should be higher in the backlog than what we delivered so far in '25 since we see rates are increasing. But, of course, it's -- but then, of course, I do -- I can't tell if the mix in the backlog are similar. Yeah. So if there is more subsea projects, subsea scope in the backlog was the margin, we go the other way. But if the mix is the same, the margin should come up.

Alright. Moving on then to backlog on the I class vessels and specifically for the remainder of the year. Do you have many days left to sell here?

You could say, as it looks now, we have two of them or as we see it fully booked for reminder of the year, yeah. Then the 2 in 1 is so far booked into October, yeah. But, of course, there are still a few opportunities around here that could bring that gap, you know, going about here. But as I said, two sold out, one at the moment sold to October time and then the fourth one is booked and then, of course, this is -- I don't remember all, I do normally, but the more and more of this, it looks like it's booked to mid September, and then it had for dry dock in October. And then we have no work for her so far in November and December, but we have, let's say, close discussions with a few clients that could go on November. So mainly shorter version is also on four boats. We have, roughly speaking, November and December on to them, but as I say, I don't expect those boats to sit idle for prior November and December.

Then you've you're now moving lifter and locker from the North Sea to Brazil. Do you see potential to do more such moves into Brazil going forward?

Because we see still a lot of opportunities in Brazil. Of course, you need a new tender if you want to do. But, of course, we have all the projects further discussion in Brazil where we -- and, of course, that also relates to the question you had if you are short of votes. You know, we have hope that we will be awarded. Yeah, we would need to take votes from outside the Brazil market. Of course, that could be -- it's not impossible that, that could be, let's say, served by one of our anchor handlers in the North Sea if we decide to do that. So yes, so it's not the last vessel that will go from Norway to -- or from the North Sea to Brazil. But as I say, it might happen already. It might happen fast. It might happen that we have to move around Christmas time. But there'll be pending awards.

Sticking with Brazil as the topic, do you fear becoming overly dependent on the country given that it's such a big portion of both your backlog and current sales?

I agree. No. I don't think so, because we've been in Brazil for 24 years. It's the biggest subsea market on the globe. It is a pipeline of work, new field development that is very large and driven on with a strategy on Brazil building, Brazilian flag, very good local organization. I think it's a positive not a negative. So -- and of course, if you look at the earnings, of course, it's a fair portion, but of course, it's -- I'm not afraid of that at all. So we will continue to do deals globally and take the deals we think gives us faster earnings.

Alright. Some competitors have indicated a softness in the market, and you highlight a global presence as an important lever to mitigate that. Are you able to elaborate a bit on which markets you expect to be stronger or continue to be strong going forward?

And of course, it's interesting because if you look at -- you can take the PSV market as an example. You see -- and we don't do PSVs in Brazil, so I'm not into. But of course, you see a very strong market and a very strong pipeline and good rates. And then you see, of course, the North Sea spot market this year that has been what you can call very weak. And of course, you see the churn rates in the North Sea market dropping. You could say it's -- and I think as a consequence of the lower activity in U.K., you can also say that the North Sea anchor handling market has been a disappointment if you sum up so far. It had some good month or two in the second quarter, but has not been, I think, up to what people expected. But then at the same time, of course, you see us fixing boats in Brazil at what you could call perhaps the highest rate levels I've seen in my career on term contracts [indiscernible]. So it's kind of a market that you see is not -- and as I said, it's not similar globally. It's -- and of course, why do you see all the big [indiscernible] in Brazil, all the big, therefore the three biggest classes, 200, 250 and 270, of course you saw three bidders. And it has to do with the local presence. It has to do with the flag. It has to do with that you need to know what you are doing and you have to be local and you have to know the rules and regulation and the taxes are important. So I think that will -- in a normal market and of course, in the neat market, that is when you see who is good and who is not that good. And you see that also, you see that it's the same pattern in Canada where you see fewer players, the same pattern in Australia, you need something more than an office in, let's say, in [indiscernible] and to be able to perform work in places like that. So it is -- it might be a bit, let's say, you could just say, but I think the more complex the job is and the longer it is from the North Sea, the less competition you see. And I think a very natural explanation why it is like that. And then, of course, how long you can see such a rate difference between North Sea spot and elsewhere, I don't know. But I think it's -- I don't know how to say, but it might be structurally where you see a lot of the suppliers in the North Sea are not able to compete elsewhere because they don't have the infrastructure to do. And of course, it is a global market. And of course, it is -- I remember back then when we only had an office that many years ago back in early 2000, we only had offices in the North Sea. And of course, you didn't see more than 20% of the deals the bigger guys were doing. So it is like that. I think that's the short explanation.

Alright. Thank you. That concludes the Q&A session. So thank you all for your questions, and thank you to Mons and Martin for the presentation and the answers.

Thank you very much for listening to us, and have a nice evening, And welcome. Don't forget the Capital Market Day on 9th of September also. Thank you very much.

Thank you.