Etablissements Maurel & Prom S.A. (MAU) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen, and welcome to the presentation of 2020 annual results for Maurel & Prom. My name is Sal, and I will be the moderator for today's event. Please note that this conference is being recorded. [Operator Instructions] I will then pass the floor to Matthieu Lefrancq, Head of Investor Relations. Sir, the floor is yours.

Good morning, everybody, and welcome to the presentation of the annual results of 2020 for M&P. We're going to start with a presentation, that would be followed later on with a Q&A session. I'll pass the floor immediately to Olivier de Langavant who is the Chief Executive Officer. He will be accompanied by Patrick Deygas, Chief Financial Officer of the group.

Thank you very much, Matthieu, and good morning, everybody. I'm happy to have the occasion to exchange with you while we publish the 2020 results. I will start by a certain number of key messages before developing further. So the key messages that you can see on the slide, first of all is the continuity of business that was insured all year despite the COVID-19 pandemic. M&P has taken all the necessary measures to ensure the permanence of activities, and no disruption of operation had been recorded, which is quite important, particularly in our field. Second message is a strong operational and financial resilience in a challenging economic context, and that was quite difficult. Our sales, obviously, is down sharply, minus 35%, because of the result of the 40% year-on-year drop of the average sale price versus '19. But we solved part of this debt, particularly thanks to the production of gas. And we had also production reductions in Gabon due to OPEC quotas. Nevertheless, this sales drop was limited to 35%. We had a swift implementation of the adaptation plan starting in March 2020, at the beginning of the crisis, which allowed to keep all over the year a positive free cash flow of $16 million, then back to positive net income in H2 2020, thanks to cost reduction initiatives and also to lower depreciation and amortization charges after the impairments that were recorded in the first half semester. Now the robust capital structure was maintained and preserved liquidity as well. For the first year, we were starting to repay our debt. We repaid $77 million in 2020 despite the environment. And at the 31st December 2020, we have a net debt of $455 million, slightly down $14 million from year-end 2019. The cash position at 31st of December 2020 was maintained to $168 million. And if necessary, but it's not obvious, we have still available $100 million via the undrawn tranche of the shareholder loan that was not used. We just used the first portion. Now the other message is also the continuation of efforts that we started and the preparation of resumption of development. We have now a free cash flow breakeven before debt servicing reduced to below $30 per bbl, so way below what was the average of the gross price in 2020. We're maintaining financial discipline and cost reduction initiatives introduced in 2020. Quite important, we will resume the development drilling in Gabon in the summer 2021. So production, therefore, what you see in the boxes underneath, taking into account the quotas, it was tough -- inferior to what it was in 2019. So it's a limited impact, in fact, 26,076 BOE/D. We reduced our OpEx and G&A costs by about $40 million and more than 20% debt versus 2019. We maintain a free cash flow that was available at $16 million. So please note that the cash is better than the one in 2019 where it was minus $20 million. The net debt is $455 million, reduced by $14 million versus 2019. So that was for the key messages that we will develop now. Another important comment that I want to make is a change in governance within the Board of Directors with several movements that's recent. But I will start by the most important, since January, we have a new CEO, John Anis, who was appointed the 18th of January as a Director and Chairman of the Board of Directors to replace Aussie Gautama. John Anis, I will not detail all his resume that appears on the left. But he is a great professional of the industry. He's someone that really has a deep knowledge of our business, spent more than 25 years' experience in the oil and gas sector. He's very dynamic and extremely brilliant, in fact. I was lucky enough to work with him when I was in charge of Asia Pacific in Total before joining Maurel & Prom, and he's somebody that had and will have a great pleasure to work with. We are friends, and there is no problems in between ourselves. And he will give, I'm sure, a good direction to the Board as the head of this company. So that's very good news. On top of it, it's interesting to note that John Anis is Chairman of Pertamina Internasional and General Manager, so definitely in line with Maurel & Prom, that is part by 70% of this company. So it's great to have a CEO such as John. Amongst the recent movements that also happened in 2020, in April, May, but we have a new administrator since the beginning of January who is Harry Zen. Harry Zen comes from the finance and is also a great professional. He joined the Board very recently, but we already saw him at work. And he's somebody who understands everything, our issues, and we're very happy to have him join the Board. So it's stabilized and I will make you notice the large diversity, particularly for women and men, and we're happy about it. We're now going to review the operational performance. I will start, but it won't be the last time, by our EHS-S performance in 2020. We had, the beginning of the year, a few accidents, none very severe, but a few small accidents in the Gabon that were, of course, not satisfactory. We had taken over since. And we're today, this morning, at 314 days without LTI, lost time incidents -- injury. And we are today at 392 accumulated days without any LTI. The last one -- without any spill, sorry. The last one was kind of minor. You see on this graph, the TRIR in 2020 went down versus 2019, and it's something that we're coming out of it. If you can see the dotted line, at the 1st of March, you see that we're dropping down. And I do hope that this will go on until April under the current level. We have 2 certifications, 14001 -- that were obtained at the beginning of last year, ISO 45001 and 14001. We had a meeting with the certificator last week. And he noticed minor errors or [ on the line, sorry ]. And we also have an environmental commitment that was recognized by CDP who gave us, for 2020, a score that is quite honorable. The average sector rank being C, and we have a B. I will now give you a few information about update on COVID-19 pandemic. And hopefully, we're going to see the end of it in the coming months because -- of course, we implemented swiftly harmonized processes within the group; provision of mask and hydrochloric gel; working from home and remote as much as we could; social distancing in common areas; and on-site, more rapid measures with about -- lockdown of staff before arrival on-site; distancing measures in living quarters; medical surveillance every 48 hours; and also frequent testing of staff on-site. So thanks to these appropriate measures that we ensured business continuity, and no disruption of operation has been recorded to-date. And we think that it will be the same in the coming months that will have with this pandemic until everybody has received the vaccination. Okay, now I want to show you also and remind you sort of the curve here. It seemed that we got out of the problem that we had because of the Brent price. And what I want to show you here is our activity. We had launched a little bit before the pandemic discussions with our bank pool to change the profile of reimbursement of our debt. Originally, we had to reimburse in 2020 $150 million. That appeared to be too high. And we entered our negotiation with the banks and signed a covenant with them on 16th of March. So 1 week after the beginning of the crisis, that was materialized by the announcement of Saudi Arabia in 10th of March. But already, in February, we had the first signs that oil was falling down. So at the beginning of the crisis, we finalized our negotiations on sorting out our debt. Patrick will come back on it, I'm sure. And it was already presented to you during the results of the first semester. But it was quite important to tackle this very difficult year. At the end of March, 3 weeks after the beginning of the crisis, we have suspended the drilling -- development drilling and implemented our plan -- adaptation and cost reduction plan. That was on Ezanga. And now you see this on the graph, from June onwards, the price were slightly better. So in between June and November, December, it's worth $40 a barrel. And it's interesting to know, and it's an important element, I believe, of our results that we published this morning, that on this period, second half of the year, at a basis that was not superior to $40 a barrel, we had a net result that was positive. And I think this is a satisfaction that was -- I'll come back on it. And today, we are preparing the restart of development of drilling in Ezanga. That should be happening before summer. I would like to give you a few elements now on the implementation of the adaptation and cost reduction plan. That is at the very center of our reaction phase to the crisis. We had goals and targets of OpEx, operating assets, of minus 20% annualized. And in fact, the results is that over 9 months only of application of this plan, we lowered it, versus 2019's operated cost assets, by 25%. I think it's a very good result. So we checked that box. The G&A operated costs, we targeted 15% last year. We almost reached 20% of reduction versus 2019 over 9 months. The development CapEx, we decided to limit to $50 million, and we had other elements, of course. But we reached the end of the year was $47 million. And we held our goal and delivered as we had promised. In between 2019 and 2020, the change in costs as far as the group is concerned, and taking into account the fact that we had a different scope from 2020 versus 2019, particularly with Angola, we had only 4 months in 2019, we had a full year in 2020, despite the change of scope, we reduced our cost. Most are -- OpEx and G&A, around 6%. And on the operated assets, taking into account the things that I mentioned earlier, we lowered our costs by 23%. The cost per barrel, if we're checking the Ezanga license, did lower too. Some, of course, don't move like the transportation cost for contract reasons. But globally, we lowered by almost 10% our cost per barrel on Ezanga. So now the cost base is stabilized and weaker, and it's a performance that we will maintain and improve in 2021. And it's not because the net price, with shares, that we have to be less careful on this level. Now a review of production activities in 2020 and a few other elements also. On Ezanga, taking into account the OPEC quotas that were forced upon us after the second half of the year and also taking into account the development drilling that were suspended, the production dropped by 16% in between 2019 and 2020. And unfortunately, we had to deal with it. We took this opportunity to try and implement a few actions to start again in good conditions later on. On Mnazi Bay where the quotas didn't affect us, the gas demand was slightly down in the context of lower industrial activity due to the current economic environment, and our production dropped by 7%. Now the decline was offset at sales level by the allocation of additional rights to M&P. And this was related to corporate income tax now being charged to the partner. So despite the drop of production, our sales were higher by $43 million. On Mnazi Bay, for the first months of 2021, the demand is quite high now, 100% of 70 million per day. We are today accumulated an average of 80 million. And these last weeks, we have a demand that was about $100 million. And we did a capacity test of our facilities. So it's a production that our installation facilities never reached. And we are obviously in a state of doing so. So demand remains important, we'll have to face it, and we'll -- we can even do more. That was what is targeted in the budget. Now on Block 3 (sic) [ 3/05 ] and 3/05A, the production raised sharply because in 2019, we only could work in August. And in 2020, we are on the full year. The operator could restart the water injection not at the maximum level but is now effective as it was suspended for many years, which was a critical situation. So it's going to start again. And we're foreseeing -- or the operator is foreseeing with his partner to start a campaign of workover that would allow to raise production they needed because it doesn't correspond to the target. Now on one of -- the 3/05A block, that will resume production this year. Because of default procedure against China Sonangol, we are, in fact, starting to increase our participation from 20% to 27%. Venezuela now, taking into account the sanctions from the U.S. that are particularly severely implemented since the beginning of 2019, we have undertaken no activity to support the activities by PDVSA and PRDL. We just intervened in the essential activities, safety and integrity maintenance. All other activities is not allowed today. So we are, of course, respecting all this. Now the production in 2020, we didn't record in our accounts. It was 8,600 barrels a day, and our share net were not defected because, in the current circumstances, we do not have this control. Now the PRDL, in the end of the year, had a license extension. The license was going to expire in 2026, and we reached an extension to 2041. We have also the possibility of having dividends due to the period year 2018-'19 that were due to us because we will recoup these dividends because it doesn't correspond to any transfer of money from Venezuela, which is absolutely forbidden by the U.S. sanction. So we're liaising with the U.S. authorities on this one, and we could possibly lift this. The focus now on the production situation in Gabon, on the Ezanga license, as I mentioned before. We have to respect the quotas. So the authority asks us to lower our production. And we agreed on 19,000 barrels a day and has been applied since summer -- rather, September, and we do hope to get out of this maybe before summer of 2021. Now a few words on production and reserves. So a reminder that during the past 10 years, our production raised regularly. 2021 will be a pause, taking into account the quotas. But on a long-term basis, our ambition is to prolong this. Our reserves were maintained, net of production 2020, they're remaining the same. So there are about 183 million barrel in consolidated assets, and 100 million of barrels are reserved on that, so 20%. So on our consolidated reserves per million barrels, 80% are oil -- so 80% oil and 20% of gas. If we look at consolidated scope, plus whatever comes back, it's a ratio that is near 70-30. In fact, 70% oil, 30% oil -- gas, sorry. This ratio is more important for gas with a consolidated scope. Now I'm going to pass the floor now to Patrick, our CFO, who is going to present with not too much detail, but a little more detail, the review of financial performance for fiscal year 2020. He will have 2 slides on the results to recall the new profile of reimbursements. And then I will take the floor again to give you the perspective for 2021. Patrick, it's yours.

Thank you very much, Olivier. Good morning, everyone. I will have a brief presentation about our financial performance for the fiscal year 2020. Of course, there's a decrease on the 2020 exercises in our revenue. The sales are lowering by 35% to $330 million in respect to the $504 million of 2019. Thanks to the swift implementation of the adaptation plan, we significantly reduced the group OpEx and G&A, going into a consolidated amount of $164 million from $180 million in 2019. We only included the operated assets, so a decrease of 23% in respect to 2019. We have -- a significative amount of noncurrent operating income was recorded for the year, $514 million. And this is recognized by exploitation -- expenditure. The operational result is minus 168 -- sorry, because of the decrease of the LIBOR and the positive exchange, especially in Gabon linked to the exchange with the dollar, after taking into account the part of the quota of the company and the contribution of SEPLAT, our company in Nigeria, realizing losses as well. After consideration of all these elements, the result of the exercise is negative. In terms of treasury and cash flow, we can maintain the situation. Quite evidently, several situation impacted our treasury. We have an operating cash flow before change in working capital of $56 million. But after taking into account the change in working capital, we have generated on the year a cash flow of $109 million in respect to the $162 million of 2019. All CapEx have been a decrease, especially from what's happened in Gabon. And so you see a lowering -- a decrease by $46 million in CapEx. The free cash flow is quite positive at $16 million and, in any case, positive in respect to 2019. We started reimbursing our loans, $63 million that we had saved in 2019. And despite this fact, we have a treasury at $168 million, so roughly $60 million less than the previous year. Now if we go to -- it is interesting to see here that if we only consider current elements, we have a loss in the year of $54 million. And it is important to see here that thanks to the implementation of the adaptation plan implemented in April, we could in the second semester, in second half of the year, go back to a net positive result. So it is interesting to see that with the -- despite the decrease in prices and the difficult year, the company is in positive. Now if we look at the reconciliation of recurring and nonrecurring item, we have loans at the end of 2020, taking into account the reimbursement and the shareholder loan, which is only considered partly because we can -- we still have $100 million of this loan. So we have a reduction of $14 million in risk back to the beginning of the period. I will now give back the floor to Olivier who will develop the presentation. Thank you very much.

Thank you very much, Patrick. I will now go to the perspective for the year 2021. First of all, the objectives. The objectives are always, and foremost, the strive for EHS-S excellence with an LTIF of minus 30% in respect to 2020, with the completion of the transition of power generation towards gas production in Ezanga in Gabon. This will allow us to limit -- to lower the quantity of burned cash. And, of course, the maintenance of strict protocol in place in the context of COVID-19 pandemic. Now to pursue efforts. As I was saying previously, we cannot just give up. We need to pursue our efforts. So we start on a stable cost base since the implementation of the adaptation plan done in March 2020, and we are creating a function to monitor ongoing initiative and define new targets. Now maintaining financial discipline. Of course, we are talking here about the repayments, $88 million to be paid in 2021, after what we have repaid in 2020, and then an active reflection on upcoming refinancing. As Patrick has said, we have 2022 and 2023 with our repayment, reimbursement increasing year-on-year. And we hope to have a new deal during the year. Then we are waiting for a stabilized price environment in order to restart our exploration activity. Our priority is really to intervene and improve our balance in terms of treasury and debt and to have a situation which would be -- which will allow us to have better margins. Restart development. So restart drilling, and our plan -- these are planned for 2021, the campaign, the preparation -- the part of the campaign is ongoing. And for the first time, we will be able to do exploration drilling. We have in our portfolio, a portfolio -- a broad portfolio of targets as we've never had before. It is more or less equivalent to 2 years of drilling target, allowing us to choose the best ones to start with. So we are preparing to be able to work in the best possible situation, and we are recreating the drilling team to be able to implement the new rig and be able to start drilling once again. So now the guidance for operation and finance for 2021. These are guidance -- these are targets that we'd like to attain. Of course, Gabon, you've seen the quota at the beginning of the year, and the development drilling will only start halfway throughout the year. So we have a guidance which we find quite conservative, so 16,000 barrels per day. Then Angola, 20,000 barrel per day. This will depend also on the workover campaign that is ongoing and started and with the -- and resuming the water injection to -- and let's not forget that our activity on this side is limited at the moment. Our cash flow guidance. I think this is an important message. We talked about operation for the year 2021 from $175 million. With the new price, it will go to $225 million. It is important to see that at $50 per barrel, we have the means to cover our obligation in terms of reimbursement and repayment. So taking account of the debt and then our CapEx programs, as I said, $88 million of investment -- $90 million, sorry, of investment, so this will allow us to cover our debt and repayments and to carry out our investment. We feel confident to be able to realize this $90 million of CapEx, having enough left at the end of the year, over $150 million. On the longer term, we maintain our targets -- long-term targets. The priority is always excellence in terms of safety and environment. This is one of the main condition of our existence, maximize value from existing asset. This -- we are quite on point on this. Then the capital discipline, strengthen our balance sheet and maintain our liquidity and cash flow. So we are in a good position to realize this long-term target. Then grow the business through exploration and M&A operations. As I was saying before, we do not -- we are not going to relaunch exploration until the situation is not stable, but we are starting to think about this seriously. And then it creates value and return. This -- to our shareholders, let's hope this will become a reality if -- at least in the year to come. As you can see, the value of the shares has started to increase. Then another important point is operational flexibility, control of operation of main assets. Asset resilience, we have a free cash flow breakeven reduced to $30 per barrel and net income breakeven reduced to $45 per barrel. As Patrick was saying in the second half of 2020, we have a free cash flow -- free positive cash flow with a $40 per barrel. And then financial strength, we have a cash balance of $168 million at the end of 2020. We have $100 million which can be immediately available to us via the shareholder loan, if necessary, and then we have the support from Pertamina Group. So these are the main points we wanted to share with you. I think what would be more interesting now is to answer to your question. I am sure that there will be question. I am looking to Matthieu Lefrancq. Matthieu, do we have a question?

Yes, we do have Olivier. Just a couple of seconds on standby in order to read and prepare the questions. Thank you.

Thank you very much for patiently waiting. We'll start from the question from Jean-Luc Romain. Can you remind the potential of your assets in Venezuela and explain the necessary time to resume the work in case the American sanctions are stood down, taking into account the crude prices right now.

So regarding this first question, Venezuela, today, the production is a little bit underneath 10,000 barrels per day. We have a lot of equipment that is stopped over there. And if these sanctions are stopped or taken out and we have to support action to resume the production, production could, quite swiftly, in less than a year, get to the 1,000 barrels per day and then 30,000 more in the following year. So production could rise up quite quickly and the potential of the installation is 80,000 barrels per day. But I think it's quite a far objective. But 5,000 to 10,000 then 30,000, I think it's doable in the next year and maybe more, maybe 40,000 in 2 to 3 years. Of course, we are not talking about this today. It depends on the situation in Venezuela and the sanctions which are right now imposed. So seeing that there's a change in administration, this gets to change, of course, and our position is to only do what is -- what we are authorized to do but to be ready to resume production as soon as the situation changes. So we have -- it is really an interest for us because there's 4% (sic) [ 40% ] stake and a 32% net, so it is a really important asset in the company portfolio. The other part of your question on a policy of coverage. Yes, the hedging. It is a difficult question. Of course, we can regret the fact that we haven't implemented this last year. M&P is a petrol value, so the shareholders want to know the total of the costs. And there might be -- they might be able to sustain the decrease when it comes. I think that hedging is something important to do when we fear that price could decrease and the company could be in danger. This was not our situation in 2020. So the hedging is more a passive policy. But to cover a cargo 2 to 3 months in advance, we are not against it. But our philosophy is more to say we are a company that is mainly purely focused on petrol, so we keep the risk of the decrease without covering it. Once again, this is not set on stone.

Could you give a detail of the some information about the increase in participation in Angola?

Yes, we have. In these 2 blocks, we have the 3/05 and the 3/05A, so the -- one of these 2 blocks is not in production for a number of years now. We have a participation of 25% by a partner, China Sonangol, so to divide mechanically through -- to the partners. And we have taken their participation. It's not a big M&A. It's not a big acquisition. It's just a mechanical acquisition to a -- because of default of the partners. Production could restart on this block. And this increase, especially in an environment of $60 to the barrel, could be really positive even though marginal because we are talking about 7% of the block, but the potential is of 2,000 barrel. So we are talking about an increase, which is not that significant. But still, it would be positive, and we would like to resume production.

A follow-on question by Baptiste Lebacq. Can you remind the level of your covenant eventually? And in case of refinancing, can you consider to implement an action as you did in the past?

I'm trying to find the slide to put it on the screen to reply in detail. So we have to respect 3 covenant for the loan that we have subscribed. The first is debt service credit ratio. So cash generation compared to the debt on a 6-month period must be over 3.5. Second covenant is debt over EBITDA. This must be inferior to 4. And the last covenant, net worth, our net situation must be over $100 million. For the rest, we have a contract with excellent conditions. We are thinking -- with the LIBOR at plus 1.5%, we are considering refinancing our capital. We are not seeing an emergency situation, and we do not implement any principles for the moment.

Another question of Baptiste Lebacq, is there a diversification strategy of the sector? And what would be the restart criteria of your -- for your exploration?

So thank you very much. This is a double question. This question is twofold. On diversification, as each company and each citizen, we are really sensitive to any energy transition topic. But our position today is the following: transition is a reality. We'll intervene, of course, in the coming months. But the demand for crude and oil will continue to exist. Of course, the planet needs and environment and so on and so forth, human needs, petrol and crudes as well, and there will always be companies, major or not major, being there to satisfy this demand. Of course, we understand that we want to get ready starting now for this transformation for this future, but we consider for the moment that, taking into account our company size, everybody must play its own role, and our role is to drill for oil. I think it is more important for us to do well what we do best and to continue to be a responsible player. Of course, we deal in oil, but let's continue to be able -- let's continue to offer this at a lower cost and in the best possible environmental conditions. As you can see in the example of the Gabon, we have lower emissions and pollution. And gas can be a lead for diversification. We use more or less 30% less CO2 than with oil. And whilst we wait, we have renewable energy. As a whole, we know how to do oil and we know how to drill for a gas. And we do not want to take -- we do not want to try and compete with people who are specialized in renewable energies and they do this really well. I think this is the reply. The shareholder will have the last word in there, but I think it's the most reasonable answer that we can give today. The second part of your question was to know what the criteria is to start exploration anew. There is no real absolute criteria in terms of price. Exploration is an activity, which is nice when it works, and it's costly when it doesn't. And even when it does work, it's quite costly anyway. And I think that the real criteria is the quality and the maturity of our prospects, at the same time, as the exploration cost. It is not the same thing to have an exploration well in Colombia for $16 million, $17 million or an off-shore one in Namibia for $30 million. Our philosophy is a little bit different than what has been in the past. We now want to -- if we now want to have an important exploration project, we will now do it with partners. We will not do it alone, except for a small exploration that we can do on our own. But for larger projects, for broader projects, we will look for partners. So it is possible. Of course, it depends on the environment within, for example, in Colombia. And maybe we'll look into it next year, and we'll look at the exploration possibility in Gabon. There are exploration sites, which are near to our production sites, and this could mean a swift implementation. And we always work on the results analysis and assessment. We have finished a project a little over year ago, and we evaluate and assess all these consequences of this.

Thank you very much, Olivier. The question of a shareholder, a new acquisition foreseen or can you -- are you forecasting them?

Well, if we had one, I don't know whether I would tell it to you. But in fact, more seriously, we are checking what could be available. We're analyzing things that could be interesting and harmonize properly with our current portfolio. We are maintaining altogether a certain caution. This is not the time to be too bold. It would have been easier perhaps to find items at a very accessible cost [ 6 months ] ago, easier than today, but we do wish to take time and to be absolutely sure that we have restored our current situation -- financial situation. And after 2 years, at the end of the year, we will have the, first reimbursement of our loan, and it would be a major step in indebtedness. And during the second year, 2021, we will be able to start to perhaps think about doing something else. In any case, we have an M&A team. They're analyzing things, it's normal, but I have nothing to announce today. And if I have to be completely honest, we don't have any advanced projects so far. But we are checking around, and we're ready to acquire knowledge of what is on the market.

A question that is coming from several shareholders. What do you want to do to buy out shares or have better dividends?

Well, what we're doing to support the price of share is our management. I think we showed that the company is resilient in a low-cost -- in terms of the price crude oil, which allow us to be active when the crude oil price change. Perhaps this year will be the one, but we'll show that with higher crude oil prices, we have good financial performance. This is the first thing that we're doing. For the price of the share, personally, I bought shares on the market, it seems to be a good thing. So we have good confidence in the solidity of our company and the price of the share.

Can we hope a dividend or perhaps a buyout of shares?

Well, the dividend is something that is a bit tricky. But of course, it's important for shareholders. I believe that after 2020 that we have known, it will be to the Board and to the general assembly to decide on this type of topic. And I think it would be premature to give out dividends in 2021. It's better to fill up our debt and improve our cash flow. I think it's more important on the short-term basis. But we're moving forward towards 2021 that according to our guidance with a price of crude that is a good level, and I think that then, yes, next year, you'll be able to perceive dividends. But I don't want to anticipate it's cash that we can come up with in a margin of maneuver. And then we'll have a better margin of maneuver for the dividends. But once again, it's a little bit premature to do this as soon as 2021. I'm sorry to disappoint you maybe, but let's aim at 2022.

A new question of a shareholder who is asking, so to what destinations our freighters are going to and, particularly, if they're sold in Indonesia.

Well, our cargo boats are going a lot towards Asia now, but more China. We didn't send any boats over to Indonesia, unless one of our purchasers did send it back to Indonesia. If your question is whether we will sell them to Pertamina, I'm not too sure.

No, we didn't sell any cargo boat to Pertamina today. But Pertamina is interested by this idea. But perhaps they will buy a ship at one port or another. We are open to selling our freighters. Our finances are very clear and very strict. Pertamina will have to both freight either after call for tenders that we do every time after freight or if they [ success ] a contract that would be renewed by an independent partner at the price of the market and for the interest of our shareholders, of course. That is quite clear. So as of today, no, Pertamina is not -- didn't buy any freighters. But I would be happy to sell them to our main shareholders without any exceptions to the rules and regulations.

I have a few questions on the different targets of exploration and an update of the existing licenses. Is it possible to summarize what will be done and what will be done in the future for our different exploration sites, particularly in Namibia and in Colombia? Could you explain to us what's going to happen in the future?

Well, exploration is a tougher thing, that is, to exist, as I told you. We have to be very rigorous in what we're doing here. So I would prefer, honestly, to destroy -- talk about our dream, and saying we have fantastic prospects, and they're going to be certainly positive. But to answer more specifically, you quoted 2 countries: Sicily, Namibia. Sicily is a license that we have in the field where there is production very near, so it's something quite pleasant. This is why we did drill last year. And this seismic 3D is still being interpreted because we had a lot of seismic treatment that should have been applied. To date, we're still reviewing this. And we see a few targets there. The question is the size of this target, in fact, and to see whether there exists or not a big enough size to justify drilling. But today, I'm not in the position to answer your question precisely. We have to check this. Now on Namibia, the situation is the following. It's a license upon which there exist several possible beautiful targets. This question is the probability of success and the size of this discovery is because we're not only talking about discoveries, but important enough, to be developed on an economic manner. Today, the targets are at the edge of what would be economical. We think that we're finding -- if we find a better economic situation, then we'll start drilling. But as we are talking about complicated issues and, as you know, we have the -- almost a totality of the financing that we have to carry over on this license because of our weaker partner, we might need another partner to support us and to share risk of the drilling -- the risk of having a dry well that exist and also to be sure that we're not alone to think that this well is of interest. So we're going to open up data rooms by the end of the year to try and find a partner. Today, it's a little bit premature because the price of crude have recouped by only a few months. If it's confirmed now, our partners would love to do this too, and they will be ready to check that in a favorable manner. And perhaps this is the condition actually that we will have: to share the risk of exploration and the necessity of having a partner before starting anything. Sicily now, they're tinier targets, so less expensive. And we confirm proper targets and we could start. But today, it's still under analyzed. I think I did answer. Now Colombia was mentioned also, I believe. We have in Colombia a license upon which we see several prospects. They're not gigantic, but they're quite interesting. It's a risky economy, as we all know, but it's largely positive. So we have the intention of starting drilling. But today, we are pressed by time, by the process of environment authorization that I mentioned several times. It's -- they're quite zealous about this and quite -- and also by the COVID situation that is quite severe in Colombia. So we want to drill 2 wells in Colombia, but I don't think it will be for the end of the year, but probably next year.

Thank you very much, Olivier. I think that we answered all questions. So thank you very much for your participation to this webinar. And I think that now we can close the line. Thank you, everybody, analysts and investors for your participation on this presentation. You can also contact us and usually e-mail if you have any additional questions. Thank you very much, and I pass the floor to Olivier.

Well, thank you to all of you for having been present to this presentation. I hope we answered your questions. And we confirm and convince you of the fact that the company is very stable and ready to approach the coming years for the new challenges. Once again, Matthieu in particular, is available to answer any type of questions that you will have. You can contact him via the website or directly, and he there to -- or me also, so you're fully assured of what the future is going to be for you. And so we are happy for the half.

Thank you, Olivier. Thank you, everybody.

Thank you to being part of this conference today. You can now get disconnected. [Statements in English on this transcript were spoken by an interpreter present on the live call.]