EnQuest PLC (3EQ.F) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen, and welcome to the EnQuest PLC Investor Presentation. [Operator Instructions] The company may not be in a position to answer every question during the meeting itself. However, the company can review all the questions submitted today and will publish responses where it is appropriate to do so on the Investor Meet Company platform. Before we begin, as usual, we would like to submit the following poll. And if you could give that your kind attention, I'm sure the company would be most grateful. And I would now like to hand you over to Head of Investor Relations, Craig Baxter. Craig, good morning, sir.

Thank you very much, Jake. Good morning to you, ladies and gentlemen, and welcome to today's retail shareholder focused presentation for EnQuest PLC. The purpose of today's meeting is to provide an additional forum outside of the normal AGM process for existing and potential noninstitutional holders to understand who we are, what our strategy is, to recap on our results and some recent achievements and to enable you as shareholders to ask us questions about the business. I'll start off though by saying that, as I'm sure you're all aware, I must advise all attendees that with regard to discussions on a potential combination between EnQuest and Serica, we are bound by very strict takeover panel rules. Accordingly, I'd refer you to the RNS announcements released by EnQuest and Serica on 7th and -- 7th of March, sorry, and 4th of April. And I confirm that I won't be able to answer any questions relating to this possible combination today. Moving into the presentation and a bit sort of a quick recap for those who may be less familiar with our history. EnQuest is an independent oil and gas producer, with operations focused on the U.K. North Sea and across Southeast Asia. We were first listed in 2010, and we focus on taking on mature and underdeveloped producing assets from majors and others and driving further efficiencies to extend their useful lives, maximize oil and gas recovery for eventually managing the cessation of production and moving into efficient and safe decommissioning. As we celebrate our 15-year anniversary of EnQuest, we have a number of assets in production, primarily in the U.K. North Sea with material reserves and resources in place. We also have a really important asset, the Sullom Voe Terminal, which is situated onshore U.K. in the Shetland Islands. And this is going to be vital to us as we look to progress our decarbonization and new energy ambitions through the work being done by our Veri Energy subsidiary. We also have a number of assets that we've moved into decommissioning over the last few years as they've reached the end of their useful economic lives. This includes Heather, which saw the final crew flight leave the platform last week after 47 years of operations ahead of topside lifts later this year. As we're all aware, the energy landscape is in transition, and it is the vital skills which are forged in oil and gas production, which should form the backbone of the U.K.'s decarbonization aims. Of course, we need the right regulatory environment to make that a reality. We believe our combination of assets and core capabilities sets EnQuest apart from any of its peers, and we are able to provide an offering across the entire energy transition spectrum. Our strategy is underpinned by an established top quartile operating capability, both in the U.K. and Southeast Asia, which is demonstrable across the asset life cycle. During 2024, the production efficiency across our operated assets was outstanding at 90% and 2025 is off to a similarly impressive start. It's important to note that with 96% of our 2P reserves under EnQuest operatorship, we maintain control over asset management. This is a factor which has been key to our operational excellence over the years and of course, will be important in navigating any prolonged period of lower commodity prices. During 2024, we celebrated 10 years of successful operations in Malaysia by being named Operator of the Year at the Malaysia Upstream Awards, something we're very proud of. Our expertise now extends to decommissioning performance, where we executed the P&A, plug and abandonment, of a further 22 wells during 2024 across the Thistle and Heather projects. This takes our total over the past 3 years to more than 70 wells plugged and abandoned, an achievement which has made more impressive when we consider that EnQuest has now completed more than 35% of the well P&A activity across the entire Central and North Sea regions. Our decommissioning capability was further validated by the decision taken by Shell and the GKA joint venture partners to hand over full decommissioning management of the Greater Kittiwake Area to EnQuest. This capability is a key enabler as we look to transact in the U.K. Following a period of significant deleveraging during which we have repaid around $1.6 billion of debt, EnQuest is in an excellent position from which to grow. Net debt at the year-end was $386 million. And following the redetermination of our RBL facility, which remains fully undrawn, our transaction-ready liquidity has increased from $475 million at the year-end to $549 million at the end of February 2025. Our solid financial footing also means that we are in a position to build on last year's share buyback program and to deliver on our commitment to return capital to shareholders during 2025. And we'll do that via $15 million dividend, subject to shareholder approval at our AGM on the 27th of May. We've been clear that our strategic focus now is on executing a transaction, which materially grows our U.K. business and accelerates the value of our $2.1 billion U.K. tax asset. Talking a little bit more about that solid platform from which we're planning to grow our business. We have a strong record of replacing reserves across our portfolio. In 2024, production of our 2P reserves is almost fully replaced by Southeast Asian growth, and this will actually increase on a comparative basis once the reserves from our Vietnam acquisition are recognized. That transaction is due to complete in the next 2 months. Since our inception, our reserves replacement ratio is 1.4x. Essentially, we started with 81 million barrels of oil equivalent. We've produced more than 200 million barrels and still have around 170 million barrels left to access. As I mentioned earlier, we operate 96% of our 2P reserves, of which are very high proportion, 76% to be exact, represent proven volumes. Two of the pre-submitted questions, which were sent in by shareholders before the start of the presentation, deal with our reserve modeling plan and the technology we use to assess and qualify our reserves. In short, we employ a combination of reservoir modeling, both geological and dynamic simulation, as well as decline curve analysis in our reserves work, which is audited under the SPE 2018 PRMS guidance. Roughly, we'd say 1P corresponds to a 90% certainty; 2P, 50% certainty; and 3P 10%. One great example of an opportunity to convert 2C to 2P is at Kraken with enhanced oil recovery, giving us a very exciting upside potential on the reservoir. While we continue to execute opportunities which provide organic growth within our existing opportunity offer, we are very much focused on delivering a transformative transaction. Given our significant relative tax advantage in the U.K., we expect to grow our North Sea business materially in the coming period, enabling us to release and accelerate the value within our U.K. tax asset. In recent months, we have delivered diversified growth in Southeast Asia, including the acquisition of Harbour Energy's Vietnam business, which we expect to complete in this quarter and the recently announced entry into Indonesia. The recent deals we've agreed in Southeast Asia highlight our commitment to growth, a disciplined approach to M&A and a strategy to invest capital where we identify the most favorable returns. In all endeavors, we will look to diversify the portfolio and improve our overall carbon intensity by adding more gas to our commodity mix. In short, we have a strong track record of delivery, which sees us well placed to execute our strategic aims. From a capital structure perspective, this slide demonstrates the disciplined work we have done over several years to strengthen our balance sheet with roughly $1.6 billion of net debt paid down since its peak in 2017. Importantly, I'd also like to draw attention to a very successful tap on our 2027 high-yield bond, which was completed during 2024. This enabled us to take out the term loan and provide simplified accessibility to our RBL headroom. That's very important when it comes to looking at transactions. The fact that this process was priced above par and was multiple times oversubscribed shows the conviction with which the market backed our growth strategy. As our CFO, Jonathan Copus, laid out in the full year results presentation, we remain focused on a balanced approach to capital allocation, which provides room to fund growth, invest in the continued resilience of our existing assets and, of course, in delivering a sustainable shareholder return program. This is a journey. We set out a plan to return funds to shareholders 3 years ago. And having met our leverage targets, we commenced with a buyback program in 2024. Our latest step, the $15 million dividend demonstrates our commitment, our continued commitment to returns and provides greater certainty of the quantum to be paid. Going forward, we've been very clear that shareholder returns will remain a key component of our capital allocation thinking. This slide also lays out our guidance for 2025, where we're guiding 40,000 to 45,000 barrels a day. That's including pro forma sort of circa 5,000 of Vietnam volumes. Also including Vietnam, we expect to spend around $450 million on OpEx, $190 million on CapEx and $60 million on decommissioning. It's also worth noting that as we've done in the past, we continue to sort of revisit these plans and all activity is under review in the latest commodity price environment. We've talked about our dual areas of focus for growth being the U.K. North Sea and Southeast Asia. And I think it's important to outline the dynamics we see in each region and the different approaches we're taking to deliver value-accretive growth. This is the way in which we view the world as we look to transact. In the U.K., we believe that our differentiated operational capability and advantaged tax position make EnQuest a compelling and credible North Sea consolidator. In this mature basin, we will leverage our late-life asset management expertise to target flowing barrels with robust decline curves and low or no capital requirements. In this way, we can bring our skills to bear and continue our track record of extending the economic lives of all assets under our operatorship. Of course, our decommissioning expertise is an increasingly important component of the North Sea capability mix and is a key enabler as we look at M&A. In Southeast Asia, our recent growth has included an exploration block at DEWA, an enhanced gas production agreement at our existing Seligi asset, and acquisition of mature production asset in Vietnam. As previously mentioned, this is now being complemented by an exploration appraisal opportunity in Indonesia, which comes with exciting prospectivity, and it was great to see the [ Tangu ] partnership farming in to join our consortium. While our U.K. targets are focused on the later life operating and transition end of the asset life cycle, we see value in working across the full spectrum of asset development in Southeast Asia. This international growth is undoubtedly aided by the strong reputation we have built in Malaysia, and this has been borne out in our successes in competitive M&A processes in recent months. We have in place a clear plan to add value-accretive scale to this business, and everyone at EnQuest is very energized by the opportunities which are ahead of us. Just touching now on some of the sort of highlights from an asset perspective. I think it's safe to say that we're extremely proud of what we've achieved at Kraken, several years now in a row of really top-level production efficiency, up at almost 96% for last year, and we're off to a very good start again this year. So just to give that some context, that's around 25% above the NSTA benchmark across the North Sea Basin. As I've mentioned before, the really exciting piece of work we're doing on Kraken at the moment is looking at EOR enhanced oil recovery. And we've done a lot of work at the moment in the testing phase. And as we move forward in that, there's potential to add 30 million to 60 million barrels of upside from the reservoir, which obviously is a huge opportunity, which would transform the next phase of Kraken's life. One thing that's also progressing is Bressay. So we've talked before about a phased Bressay development, which starts with Phase 1 being a gas tieback to Kraken, and we're still working with the regulator towards getting to an FDP within the next 12 months on that. And ultimately, what that would do is it would significantly lower the Kraken emissions because you'd be powering all of the FPSO operations with gas. And it would also make a future phased oil development of Bressay easier because you'd be producing out the gas cap. One final reminder is it's almost -- it's also worth noting that April saw the big step down in our FPS lease cost, which is reduced by 70%. And on an annualized year-on-year basis, that's about an $80 million per annum saving. Looking at Magnus, which celebrated its 40-year anniversary last year, which is another tremendous milestone for a key piece of North Sea infrastructure. We continue to work very, very hard to optimize performance from this asset. We still have plans to do further drilling and additional well work, but we're also seeing some incremental gains through optimization of the wells, including a 2% reduction in field water cuts, which is a pretty notable change and adds around 2,000 barrels a day of incremental production at very little cost. We've also in the tail end of 2024, we've sanctioned a flare gas recovery project at Magnus, which again is very important for the future life of the asset from a sort of decarbonization perspective. But it's also a very fiscally efficient project, which helps to minimize our EPL outflows in 2025. Touching also on the acquisition that I've mentioned in Vietnam. So obviously, we're not quite over the line yet, but we've talked to you already in terms of this deal being completed in Q2. So we've got a couple of months still to go on that time line. And it's an exciting opportunity for us. As I said, it's a new country entry. It's taking on an established business, which has a very low asset breakeven and high-value oil. It's also got a significant component of gas. So it gives us a lot of -- it ticks a lot of the boxes that we're looking for in terms of growing our business, and it adds a pro forma of circa 5,000 barrels per day to our production. There's also lots of opportunity within the field, and we're very much looking forward to welcoming the Harbour team into the EnQuest family, and we're very much looking forward to getting after the opportunities which exist in this field. In conclusion, our operational strengths are extremely well suited to mature oil and gas basins and are transferable across geographies. With our delevered balance sheet, enhanced liquidity and significant U.K. tax asset, our strong fundamentals see us well positioned to deliver transformative value-accretive growth for our shareholders. I thank you all for your attention on the formal part of the presentation, and we'll now move to the Q&A section. So I'll hand back to Jake. Thank you very much.

Perfect, Craig. That's great. And thank you very much indeed for your presentation this morning. I'll just bring up your camera there for the Q&A. Craig takes to review submitted I'd just like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A can be accessed via your investor dashboard. Craig, as you can see there, we have received a number of questions, and thank you to all of those on the call for taking the time to submit their questions. But Craig, at this point, sir, if I may just hand back to you just to read out those questions and give your responses where it's appropriate to do so. If I pick up from you at the end, that would be great. Thank you.

Sure. Absolutely, Jake. And thanks again, everyone. I reiterate Jake's thanks for the questions. just to also reiterate, there's a number of questions that have been submitted that relate to the potential combination with Serica. So I'm not going to cover those in this forum because I'm effectively not unable to do so under takeover rules. So a couple of questions I can cover. So when are the details -- there's a question around when the details of the agreement between the consortium of the 8 companies where we've been awarded the Gaea I and Gaea II blocks in Indonesia, when are we likely to see more and communicate more around the time line there and costs, et cetera. So in reality, we will have to wait until the PSC agreement is signed. We'd hope that would be done in the next couple of months. And at that stage, EnQuest and our partners, I'm sure, will certainly look to be more communicative in terms of the detail we provide to shareholders. So not long to wait, but we're in a sort of pre-signing phase at the moment. So we don't have any ability to go into too much detail at this stage. As I look at it, there's quite a few questions on that. So there's also a question around -- there's 2 questions actually, which are around, again, Gaea I and Gaea II. And they're asking around whether this relates to comments that Amjad made a little while ago went well at Davos. And yes, they do. So Amjad talked about us doing joint study agreements in Indonesia and trying to establish an operating footprint in that country. And this is the fruit of those labors. So there was a lot of study work done alongside partners. And when the bidding round opened, the Tangu partnership and we're keen to be a part of and farm into our bids. So that's what happened. So that's kind of a very, very abridged time line from those comments from Amjad to getting to where we are today now. There's a question around the EOR at Kraken and when the assessment will be completed. So testing is underway. We've done some -- we've injected some tracer into the reservoir, and we've been very encouraged with what we see. I think the team would be looking to kind of come to a decision by the end of the year around a go/no-go, the scale at which we implement the polymer flooding and of course, most importantly, what type of polymer we use for the process. So I would look to see an update from us at the end of the year. A question here around a very tactfully worded question, which says, completely ignoring the deal that you cannot comment on, are EnQuest still looking for additional acquisitions and transformational deals? So again, I have to be quite careful with what I say here, but I can lean on public statements that we've made previously, which confirm that we have been in discussions around more than one transaction. Obviously, one of them is in the public domain now, but we've been able to reiterate that previous public statement that, yes, we have been in discussions around other options. I'm now looking at -- there's a question, a very reasonable question around limited mention of Veri Energy within this presentation and why that is. So essentially, it's not meant to be any slight on the great work that's being done by the Veri team. It's just that there's obviously a lot to be done in terms of mapping out the opportunities at Sullom Voe. We have a relatively new CEO in Gavin Templeton, who has joined EnQuest overall, the parent company is CEO of Veri. And Gavin is doing a great job in terms of setting out the future for very. So absolutely no reason to ignore Veri in this presentation and look out for more material updates from that part of the business going forward. I'm just looking to see there's quite a lot of questions on the potential Serica combination, I just want to make sure. So questions around net debt. So we finished the year at $386 million, a question from [ Niki ] there. We haven't yet provided an update, but we'll do so in due course where we are beyond the end of the year. There's a question around the $80 million saving in Kraken FPSO lease cost and where we would see that coming in. So that's not -- because effectively, it's a lease cost that comes in really into cash flow. So it's not -- you don't see it in OpEx or CapEx. And just to be AA clear as well, the $80 million referenced here is an annualized figure. We won't see that in 2025 because, of course, the new rate kicked in, in April, and there's a slight cash lag on that as well. So we'll see something more in the region of $60 million, say, in 2025, but it will basically come off the bottom line cash flow. An update requested on the EnQuest producer from [ Ronald ]. So the EnQuest producer is still warm stack in mig. It's still a very valuable asset to us. We still see it as a very credible early production system option for the phased development of Bressay. So no change really since we last provided an update on EnQuest producer. Question from [ Jason ] around can we see -- where we see debt levels increasing again in the future. So Jason, I think this really depends on the nature of growth for the business. I think we're very, very comfortable with where our leverage sits at the moment, sort of 0.5, 0.6x net debt to EBITDA. We've done a lot of disciplined work over the last 7, 8 years in terms of strengthening the balance sheet. So there's no intention from this business to increase leverage to a degree that we'd be uncomfortable with. And the reality is that any assets we bring into the business are likely to be leverageable against the RBL and thus increase the headroom on that. So yes, I think we're likely to take a very measured approach to any debt level. I think that's -- I'll keep that comment genetic because I'm obviously not allowed to provide any sort of profit forecast. But on a genetic sort of theoretical basis, certainly, I think we would look to keep a very balanced approach when it comes to our capital structure. I don't see any additional question. There's a couple of questions, I'm sorry, that were pre-submitted around the shareholder returns. So hopefully, I've already answered that really by saying that we're on a journey. We've completed the share buyback program. We've now provided holders with more certainty through our dividend program for 2025. And we certainly see shareholder returns being a sustainable and robust part of our capital allocation thinking going forward. There's a question regarding our Kraken partner and whether we could assume 100% ownership of the asset. So that's not something I'm going to speculate on. I mean, it's public information that our partner at Kraken, the parent company is in administration. At the moment, though, they remain a partner in good standing. They're paying all their cash costs, paying all of their bills. We've got a good operational working relationship with them. So no reason to believe that, that would change. And they've given a time line to restructure their own financial situation. So it's not for us to comment on that. One more question here on dividends. Is there a plan for an interim dividend in 2025? So we don't have any plan in place at the moment, [ Eric ]. We will see what happens with the AGM and the shareholder vote on approving the 2024 final dividend and then any decision on future shareholder returns will be taken post that event. I think that is -- so there's a question from [ Himat ] around plans at SVT. So we're doing 2 major projects there, Himat, one being a long-term grid connection for the site and also a new stabilization facility, which will rightsize the plant within the terminal facility. So those projects are both progressing well. We would expect first gas to go through the new stabilization facility towards the end of this year. And that's really where we are. I mean, together, these projects are likely to reduce SVT's carbon footprint by about 90%. So they're very, very meaningful. They'll also have an impact on long-term operating costs, which obviously only helps to increase the viability for the terminal going forward. And that's what we want to do, right? We want the terminal to be around for a long time, continue the generational employment that provides to Shetland and giving us an opportunity to contribute meaningfully to the U.K.'s decarbonization and renewable energy ambitions. I see an extra few questions coming in now, again, from Himat. I see you asked some questions around Kraken EOR and Bressay tieback. I've just covered those. So I know there's a slight time lag in your questions coming through. But yes, just to reiterate, we're very excited about Kraken EOR. We think it could add sort of 30 million to 60 million barrels to the upside potential to the reservoir, and we're committed to moving forward with the Bressay gas line tieback, and we're looking for regulatory approval within the next 12 months. A question from David around increasing shareholder and investor awareness of the company. So yes, David, yes, absolutely, there's a benefit to doing that. We have done quite a bit of work on this over the last couple of years, certainly in my time in this role. And we've done quite a lot of outreach programs as well. The reality is we're currently operating in a challenged sector. I mean, I think particularly in the U.K. where the EPL has been very damaging and you see all of our peers, including EnQuest, trading at discounts to NAV. So yes, I mean, it's a challenging environment. We absolutely want to make sure that we put the best foot forward and make sure that the good work and the great work that EnQuest and our teams across U.K. and Southeast Asia are doing is in the public domain and well understood, so absolutely. If you've got anything sort of specific you want to cover with me on that, David, please feel free to contact me directly. A question from Sam around decommissioning and whether EnQuest would look at that as a credible business opportunity that could be offered across the sector as a service. So the answer, Sam, is yes. That would be absolutely something that I think we'd be uniquely well placed to do. I mean we are -- I think I'm very confident in saying we are the most prolific and we're the most active decommissioning operator in the North Sea. I mean we alone have done more than 1/3 of the wells in the Northern and Central North Sea over the last 3 years. So that's a pretty tremendous achievement for a company of our size. I think we've seen a number of companies over the last, I guess, 5 to 7 years, Sam, trying to come up with a commercial model where they do decommissioning as a service. and they haven't worked, frankly. But I think where we are is we've got a unique opportunity here because we've got an in-house dedicated decommissioning team, lots of expertise, lots of lessons learned over the work that's been done within EnQuest. And we've obviously got a program of work on our own assets that keeps that team busy. I think the GKA decision where Shell and our partners decided to make EnQuest the sole decommissioning operator is an example of where we're being validated in the sector as a leading decommissioner. And I think that's a sort of sign of where things could go. Look, it's a challenging business. It's likely to be more of a service business, but it's absolutely something that's on our radar, Sam, and something we're talking about and considering strategically within the business. Are you aware of significant mutterings of EPL being reviewed? So there's another question as well, which is related to this is around the industry and U.K. government discussions on the future of EPL and is there a chance it may change before 2030? So this falls within my remit. Obviously, Amjad is very involved. Steve Bowyer is very involved. Jonathan Copus is very involved in all this as well. But on a day-to-day basis, this is something that I manage for EnQuest. So yes, obviously, we are very much engaged in the consultation processes, which are underway at the moment. So there's the future of the North Sea consultation, which really relates to areas around licensing, et cetera, which is due to close at the end of this month as in response is due by the end of this month. And then by the end of May, the consultation on the long-term fiscal regime is due to close. So we'll be very active in both. Absolutely, for us, the priority is the fiscal regime. I mean, we're supportive of everything that enhances and helps the longevity of the basin. So we're supportive of continued licensing, maybe in a slightly different format, but it's not our core business. We're a late-life asset operator. So we're very, very much focused on the fiscal. And to be quite honest with you, if you read the consultation paperwork, the government are very clear that they see the consultation being on a successor regime to EPL, which would come into play post April 2030 or sooner if EPL were to fall away based on the ESIM thresholds. So that's the very clear framework under which the government are engaging. Of course, we are advocating on behalf of the sector and on behalf of ourselves, and we're expressing the view very strongly that we would like to see change happen before 2030 to ensure the longevity of this sector, this very important sector and this vital sector if the U.K. wants to have any success in meeting its decarbonization and renewable ambitions. A couple of other questions have come in. I think so we haven't -- so we've given -- we gave update or there's a question around an update on production. So we've already given an update as at the end of February. So we don't have another update to give at this stage. But as I mentioned, production uptimes are very strong across the portfolio. Jason asks, do you see significant increase in production across your portfolio of assets? If so, what kind of increase we might expect over the next 5 years? If not, are you forecasting production levels, which will remain the same? So if you take the existing portfolio, Jason, which I think is what your question about, obviously, and we are very focused on growing the business. We want to see material growth in our production through acquisition. If you're talking about core portfolio, obviously, success really for us is over the long term, doing what we can to offset natural field declines. So we're doing drilling and well work at Magnus and in Malaysia. We've got plans for the Kraken EOR. We've got plans to return to drilling at Kraken in the future. So we are doing everything we can to kind of keep production stable at these mature assets and offset declines. In order to grow, materially grow production, that requires us to transact. I think that's the last of the questions I'm able to answer immediately here today, I think that's -- we covered them all, Jake. Of course, as you've noted, I'll go back through every question that's been submitted, and it hasn't been answered in this forum, and I'm able to answer, then I'll do so on your platform, Jake. So I think I'll hand back to you at this stage.

Yes, absolutely, Craig. Thank you very much indeed for being so generous of your time and addressing all of those questions that came in from investors. And of course, if there are any further questions that come through, we'll make these available to you immediately after the presentation. But Craig, perhaps before now, just really looking to redirect those on the call to provide you with their feedback, which I know is particularly important to yourself and the company, if I could please just ask you for a few closing comments just to wrap up with, that would be great.

Yes, absolutely. So I mean, I think we're in exciting times. We're kind of looking back as we look forward at the moment. We've just celebrated 15 years of EnQuest over this week. And so it's an exciting time for the organization as we look to generate another significant growth phase in the company's history. We've done some really good things growing the business and delivering that diversified growth in Southeast Asia. And now we're very focused on doing the same here to utilize and accelerate the benefit of our U.K. tax assets. So exciting times for the company. We appreciate the support of our shareholders and look forward to seeing some of you at the AGM in May.

Perfect. Great. That's great. And thank you once again for updating investors this morning. Could I please ask investors not to close this session as you'll now be automatically redirected for the opportunity to provide your feedback in order that the management team can really better understand your views and expectations? This will only take a few moments to complete, but I'm sure it'll be greatly valued by the company. On behalf of the management team of EnQuest PLC, we would like to thank you for attending today's presentation. That now concludes today's session. So good morning to you all.