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

Good morning to this conference call. I am Matthieu Lefrancq, responsible for relations with investors. We will have Olivier de Langavant, CEO; and Patrick Deygas, Financial Director. We'll start with a presentation of results and a Q&A session -- the written questions only. Olivier.

Thank you. Thank you. Good morning, everyone. Thank you for being here. So, let's go over the results I'd like to speak to the aspects that were in the -- this morning's press release. These are results that are marked with good compliance with the guidance that had been given. -- will be quick to leave some time for questions. So operating performance solid, increased profitability in a lower crude oil price environment. Our production up 10% at 28,057 barrel of oil equivalents per day, lower price of oil, down 19%, contained expenses despite the inflation, the increase was limited and this is associated with identified aspects -- that is the new rhythm of car oil and Venezuela activities, $682 million of sales, EBITDA of $359 million and recurring net income of $255 million. So, this is, again, up year to year. 2022 had record numbers might I remind you. So, a substantial decrease in net debt, thanks to high cash flow generation and significant liquidity, operating cash flow of $270 million and a free cash flow that is we have a free cash flow of $157 million. Net debt was reduced to $120 million at the end of 2023 from $200 million, again for 2022. And we have a net cash position that's expected in the first half of 2024 or about in the middle of the first quarter. that's quite unparalleled and worthy of praise really in 4 years of high indebtedness though we've worked on it gradually. And now we have a good position or soon to have available liquidity of $159 million at the year end of 2023, of which $97 million in cash and lots of receivables, receivables that were cash in January and in the coming months. On environment, substantial reduction in greenhouse gas emissions and carbon intensity of production, ahead of our targets. Today, we have Scope 1 and 2 emissions at 11.3 kilos of CO2 equivalent per barrel of oil equivalent. So, we are ahead on our targets. Group development continues. The resumption of activity in Venezuela. You know that. 2 liftings in December and January. We'll have one in March, and there's an ongoing restart of interventions on the Urdaneta Oeste field. We'll talk further about that. Acquisition of Wentworth resources finalized in December. And after TPDC exercises call option in January 2024, M&P now holds a 60% interest in Mnazi Bay. And generally speaking, accounting for the cash flow position now and future. Our net debt is canceled out and accounting also for what was done last year in preparing for the financing of acquisitions, which we'll talk about. This has stopped now. Accounting for all of this, I think we are in a good position for growth transactions. This was shown very clearly. We are able to come up with big amounts in funding. Redistribution of value creation to shareholders, dividends of $ 0.23 per share, $49 million in total paid in July 2023 for fiscal year 2022. And yet again, same dividend for 2023, not above this level for specific reasons. So, production, 28,000 barrel of oil equivalents, operating cash flow of $270 million, free cash flow of $157 million or about $160 million in net debt, $120 million. It will reach 0 in the coming months. Then Operational performance. First, EHS performance KPIs for security. We talked about this right after I took up this position Health and safety is key for us, and I said then that we had to improve. There could be no sustainable business activities if we didn't take this seriously security of our people. And now we reach the current situation 4 years consecutively without a single incident, 1,600 days without environmental incidents and a rate of recordable incidents -- that's 10x lower than it was 10 years ago. So significant progress accomplished here. We can be proud of this. Then we maintain our ISO 45001 certification, and ISO 14001 on environment. And for the third year, consecutively, our environmental commitments measured by the CDP is ranked at B level. This is really good for the industry, and it's really good to maintain this ranking because the requirements of the CDP are each year upgraded. Greenhouse gas emissions and intensity per barrel of operated assets in production, you see here on top -- our emissions were divided by 2 since 2022 -- 2020, despite up in production intensity of Scope 1 and 2 went from 30 kilo of CO2 per barrel of oil equivalent to 11.3%, which is really good. And we're way above our own targets that is divided by 2. Methane emissions were venting. This was reduced to almost 0 in just 4 years. We had a target to reduce them by 70% flaring. It's about the same. This was halved in 4 years ahead of our targets. So good progress here. This was a commitment made by us and -- we take this very seriously, and we'll continue to improve in this department. Now production activities in 2023. So, this was up by 10%. -- per country is one. Production is up 5% compared to last year. We drilled 12 years. These were necessary drills to maintain production and to even augment it marginally or at least maintain it. So, this was good for performances. One permanent rig on site a small discovery was made on the [ ESL ] structure during the year in August. It was immediately connected and put into production. This makes gains to us significant gains, about 1.5 million of barrels. At the end of the year, we made a simulation campaign with positive results. This campaign did impact production as production was halted for some time on the fourth quarter during the fourth quarter, but this is ended and now we are -- we're seeing dividends 21,000 barrels per day. This is the current production general improvement of 5% Mnazi Bay. Production test record, record levels and still improving, plus 20% compared to last year. last year was already a level to 107 million of cubic feet per day, thanks to drilling interventions at the end of 2022, beginning of 2023. And this went well beyond our expectations and boosted significantly the potential. We earned 30 million of cubic feet per day, coupled with the strong demand. This allowed for strong improvement of production. We also increased our working interest in Mnazi Bay, to 60% from January 23, following the acquisition of Wentworth Resources. And the exercise by TPCD of its call option for 20%, we are preparing our drilling operations for development. This will start at the end of '24 or maybe even 3 wells, strong potential is expected, and these wells will allow us to put off the compression need that was slated for the coming months, but this will be able to put -- to be put further down the line and maintain cash flow -- and these drilling operations are cheaper than compression. Block 305 and 305, Angola, average production up 10% compared to 2022. And on the last quarter, -- there was a market growth, so we start 2024 with strong potential, strong impetus. What's very important is that in 2023, we obtained the extension of a license until 2040. And what's noteworthy is that we have more favorable tax terms than before. So, this opens the door to make new and stronger operations on this block. Venezuela or Urdaneta Oeste average gross production 14,251 barrels of oil per day in 2023 license was given by OFAC on 18th of October, and activities resumed in [ Novelis ] and November agreements were signed. And this allows for the immediate restart of PRDL activity. As you know, these agreements define the mechanism for progressive repayment of sums M&P and provide for the terms of conduct of the operations of the mixed company, in which M&P plays a key role. Now on to production and reserves. So, in 2023, you can see this on the chart on the left, the production reached record level over the past 10 years. And 2024, the levels will be even higher. That, of course, is good news. Now for our reserves, and it is important. -- the R&D consolidated scope, 182 million barrels of oil equivalent, so up 10 million barrels compared to the previous year despite having 10 million barrels of production, so about $20 million for the revision. So, we have significant reserves and they have increased by 10 million barrels -- we have oil reserves increasing and gas reserves increasing 2. So, on both fronts, an increase, and that is a very good news. Our working interest when it comes to reserve has also increased and it is now close to 100 million barrels. So that is on top of the 182 million barrels of oil equivalent. Now when it comes to actuals versus guidance. We do provide guidance. It is risky, but we are happy to undertake this exercise. So based on the guidance provided, well, we are -- we have exceeded it by 7%, slightly lower results for Gabon. But still, so Angola has compensated within overproduction. And so we have exceeded our target -- so 28,000 barrels of oil per day versus 26%, so a good result. And for cash flows, operating cash flow for investments for financing. So, a slight delay when it comes to operating cash flow. The guidance was $310 million. We reached $270 million and that is due to what was prepared for the acquisition and then a few WCR elements were also involved. And so, there were technical elements to explain that. Now for CapEx, we had planned on investing $100 million. We invested $107 million. And so, this good result was balanced with the financing figure, which was $82 million of debt service versus $78 million of debt service in the guidance. And so the dividends paid were as planned or almost the same $49 million for a guidance of $50 million. So results were in keeping with the guidance. And so we will provide guidance for the year 2024. Focusing now on information on the restart of activities in Venezuela. You mentioned this earlier. A new organization was implemented from November 2023 shortly after the license, General License 44. So we started the first operations on our wells with order intake as of January. Equipment orders were done as soon as January 2024. And so there are several elements to mention bottlenecks when it comes to compression to start with equipment required maintenance or replacement. So oil -- sorry, well interventions will only pay off as of the second quarter as of April or May, and then production can increase or supposed to increase. And our goal is to go from 13,000 to 25,000 barrels of oil equivalent per day. So, we have the start of a ramp-up. We're perhaps slightly under what was planned. This again is due to compression. We also started new turbines for power output, which is critical on our platforms, the turbines acquired maintenance, there were delays. And so, I -- a few words about the GL 44 license. From the onset, it was only supposed to last 6 months, and so it is due to expire on the 18th of April 2024 -- and you will all be aware of this, not given the positions of the election commission -- given the organization in Venezuela, -- the United States announced at the GL 44 given the context would not be extended on the 18th of April. It will not be extended unless authorities react. So we have a political analyst provide guidance. But -- there are certainly discussions ongoing between the U.S. and Venezuela. On this topic, I do not know what the content of those discussions is, we'll have to see if the terms of the Barbados agreement are respected. And I think the opposition candidate was not part of this. So, we are preparing for all scenarios. Many believe that likely scenario is a non-extension. We need to wait. Now what is important is that in the event that it is -- this general license is not extended. We have tools, agreements that would enable us to continue our activities with, of course, strict compliance with the restrictions imposed by the U.S. authorities. We have means and tools to continue our operations. And again, I insist while remaining in strict compliance with those restrictions. So, there are documents that would enable us to work, of course, in more difficult conditions, but at least we could continue working. A few words about Tanzania -- the acquisition of Wentworth was finalized in December. And then there was a TPDC sell-down and now we have reached 60% of TPDC from 20% to 40%, thanks to the acquisition of Wentworth. – so, we can consolidate an extra production of 12 -- about 2,000 barrels of oil equivalent per day, and so 50.7 billion cubic feet of additional 2P reserves as of the 31st of December 2023 and production increases, thanks to the increase of our working interest and the very good results, thanks to interventions on wells early December 2023, which increased reserves up to 100% of the license. And most of them were integrated end of 2023 and another part will be integrated next year. So good news overall when it comes to Tanzania. A few words about Gabon. A few words about the participation in the Assala sale process. on the 15th of August, M&P signed an SPA and early December -- on the 15th of February, Carlyle and GOC also signed an SPA. And so, there is this sovereign right to preempt the right of the transaction. So, our SPA is no longer valid from that day and M&P confirms and reiterate its wish to remain a trusted partner of the Gabon state. And our relationship remains good. We remain determined -- we want to be a trusted partner, and we have had a strong footing there for a long time. So, we will continue to have a good relationship and continue other activities if opportunities arise. And of course, we remain at the Republic of Carbon's disposal in the future. And just a reminder of what I said earlier, we have given the Assala project, given all of those elements, the cones to raise financing and significant financing, $1.3 billion to raise. We proved we could do that. And -- now the context is an even better proof of our ability to do so. Our debt continues to decline -- it will continue to decline over the next few months. And so, we are determined to have meaningful operations and transactions meaningful for our company and for our activities. Perhaps I should give the floor to Patrick Deygas. For the review of financial performance, we have 2 important slides to show you, and then I will Say a few words about perspectives. Patrick, please?

Thank you, Olivier. Good morning, everyone. I'm delighted to show our accounts an outstanding performance, especially in a context of adverse conditions when it comes to prices. So, a decrease in oil prices, in following the average oil sales price to 79.3 barrels per barrel. So, $200 million share of income from equity affiliate. So that's for our operating income. And this year, the results are marked by the lifting of sanctions in Venezuela. So, we have significant debt work done, and we have $174 million from the 40% interest in company in Venezuela. So, we have historic results. and at group level, $210 million for this year compared to $205 million last year. When it comes to cash flows, operating cash flow is slightly below our guidance for a WCR reasons, so $270 million. There were -- there was an exploration CapEx. So free cash flow, about $160 million. And so closing cash, almost $100 million. And so, we have an available cash flow of $159 million. Debt now -- we significantly reduced our debt -- so the level of net debt is now at $120 million. A few years ago, we had higher amounts of about $500 million. We have a heavy trend of debt going down and a strengthening of our financial structure. And I can reasonably say that we're confident that we will reach net cash or 0 debt very soon. So here you see the debt position by 2027, our loans and our shareholder loan at $70 million at the end of the year -- after these few comments, I'd like to give back the floor to Olivier. Thank you.

Thank you, Patrick. So, prospects, perspectives, our goals for 2024. Now this looks quite deceivingly like what you know already strive for EHS-S excellence, maintain the incident rates at 0 or below 0.60, continue to work on GGE reduction targets. We want to maintain the operational and financial focus support to the production plateau on [indiscernible] Mnazi Bay via new development drilling, continued redevelopment of Urdaneta Oeste field in Venezuela and maintaining strict control of costs. This is very important in the quite difficult context, pursue growth. A potential exploration well at the end of 2024 maybe well under exploration that is being prepared in Sicily on the Fiume Tellaro permit. Current analysis are being done and the 3D seismic mapping was done in 2020. So we have good hope. Maximum flexibility to complete large growth transactions. This is our key message. We do have this flexibility, this capacity, and we want to put that to good use on a target that, if I may reassure you, will be positive and very much profitable. return value to shareholders, dividend of $0.23 per share to $50 million in total submitted to shareholders vote for fiscal year 2023. I lots was said internally with the Board on the dividend, our ability given to our financial position would have allowed us to go higher, but we decided to maintain the level $0.23, still a good dividend. This is because in the funding we raised, some of which are still active or can be activated. We are undergoing some limitations. We have some constraints. -- for 2024. So as not to jeopardize this, we decided to maintain last year's level of $0.23. This allows us to pursue growth more. So, this was just a choice by us, and I think this is reasonable. -- and shareholders understand that does very well. The profitability is still good. Now financial -- operational and financial guidance. Cash flow guidance and operating cash flow, we reaching $230 million at $70, $80 million, it's $80 million. Dividends to be received about $70 million or 30% stake in TRDL in Venezuela and $18 million for our 20.46% stake in [indiscernible]. These are strong avenue that add to operating cash flow. Development CapEx, $130 million split as follows: $100 million in Gabel, $15 million in Tanzania and $15 million in Angola on 305 well, exploration CapEx. We provided a budget of $15 million. That's contingent on some aspects, and we can cover this with our cash flow financing. So debt service, $67 million. According to current loans, $52 million in debt repayments and $15 million in net cost of debt and then $50 million in dividends that I mentioned already. So, we've reached this after production that -- of which the guidance is 29,000 barrels per day on the whole year at 100% in Gabon, we're quite conservative at 18,000, Tanzania, 105 million of cubic feet per day in our go at 21,000, up north of 21,000. M&P remains focused on its long-term objectives. First priority, relentlessly focus on EHS-S excellence. -- sorry to repeat it, but this is dear to me. And of course, our environmental footprint, this needs to be reduced, maximize value for -- from existing assets. Third, capital discipline, strengthen our balance sheet and maintain our liquidity. This is what we've been working on, and we will continue to build on trends. We are reaching a landing zone with a net debt that will be improved with more cash than debt. I think this is quite a good position to be in. grow the business through exploration and M&A -- we are in a very good position to do that and create value and return it to shareholders. Operational flexibility through the operator of its main assets, [indiscernible] Mnazi Bay, support to the operator and delegation of responsibilities to M&P on key operations in Venezuela. This is key. -- asset resilience with breakeven cash to $25 per day or $40 per barrel, including debt repayment. So we're ready to face any crisis on the crude oil market, but there can be crises. Of course, history has taught us that. And net income breakeven. This was lowered to 40% -- $40 -- so this is quite good, again, financial strength. We have cash flow and RCF of $160 million at the end of the year or -- and plus $100 million undrawn shareholder loans and other facilities that can be used access to debt under favorable terms, thanks to the support of Pertamina group. So, this is pretty much it for the messages we wanted to convey to you. We will now answer your questions I'll let everyone have a few seconds to pose your questions, and we'll get back to you in a few moments.

First question -- from Janice from CIC. Given the government's activity for elections, are there any risks? Second question, will you integrate [ Venezuela ] in your reserves when and under what conditions.

Do we have easier questions? Okay, I'll start with this one. So, Venezuela sanctions, is quite a tricky story. Of course, I mentioned that earlier. It's hard to speak on that knowledgeably and look into the future. Of course, we keep hearing ear to the ground and try to understand the situation. The 18th of April deadline is in more than a month, and we still have some time, but it's -- it will be soon. This is really a real subject for the U.S. and the Venezuela who will be geopolitical back and forth, some arm ringing involved. We don't know much really about the situation after the elimination of [ Mr. Machado ] from the running, there's a negative covering of the situation, still 6 weeks until election. So, it was not past judgment on what can happen, the nonrenewal is not a given, really, but we'll see. Let's wait and see then what's important is what I said earlier, without going into details, we should follow sanctions strictly abide by sanctions, as was done since we entered the country. We have all the tools in trickier conditions, though, to continue to work beyond the 18th of April, if the license was not renewed. So sort of range of technical conditions that need to be worked on, but this is very much possible. We could, on principle, continue to export assets to recover our debt and get [indiscernible] cash to maintain operations and support the maintenance of our current assets. We could continue to do that by strictly abating by American sanctions I cannot predict the future when it comes to the renewal or nonrenewal. But if this is not renewed, our activities will not stop immediately. For reserves, when and under what conditions now to bring the reserves bring this into reserves as well, this would require the consolidation of activities today. Now this was not expected for today. We could treat this as an interest to working interest as we do it with SEPLAT. So, this is not integrated in our accounts yet. Today, -- we're in a situation where we were authorized on this well to create a production of 400 million barrels. This is the figure we get from the oil operator in Venezuela. And today, we are resuming activities, and we're appraising what share of that 400 million will be recouped. We're confident that there are big reserves, and this will depend on our ramp-up -- and -- this ramp-up was showed in November when activities were resumed when we signed with agreements with PDSA, 25 million barrels per day until the end of the year, about 40,000 in the 2 years following that and beyond, there's still potential. In the short term, these are simple operations, changing pumps, equipping wells, compression turbines, equipment, turbine equipment. We've done good work, and this is done progressively, and then we'll build on that with more complex operations from next year with drilling operations, some rigs are available. We have targets in sight. -- working group is already working on this. And we're quite confident about delivering on this. Regarding the consolidation of this in our own accounts, this is not expected in our plans yet. The figures I gave you our notional authorized reserves, 400 million barrels at 100%, we're authorized to have 40% of this. Again, this only notional, we'll see what we get in reality if we do a reasonable ramp-up -- this is quite substantial. The cash flow from this I mentioned the dividend for 2024, $70 million. This is quite conservative due to the political uncertainty. This might be tricky to deal with, but $70 million is quite modest, but still it's quite high. However, this will grow in the future. between the beginning and the end of the year, we will almost double production. And in 2025, we will be well beyond this figure. [Foreign Language]

Thank you, Olivier. A question from Jean-Luc Romain on emissions and the environmental performance, what measures -- so I'll read the question. Can you remind us of the figure of the emissions per barrel in 2022? And what measures were implemented to reduce those emissions. And what is the split between Gabon, Tanzania and perhaps comments also on the emissions, not in the operated assets, but for Venezuela and Angola because those emissions need to be taken into account.

So, in 2022, 18 kilograms of CO2 per barrel, and we lowered this to 11 kilograms. Those are specific commissions for 2023 for 220,000 tonnes for 2020 to reduce to 154,000 tonnes in 2023. -- preventing. It was also reduced in 2 ways. There was controlled venting on our platforms, and this venting became flaring, which is 30x better. And the situation was not acceptable. That is what I noticed when I went to Gabon for the first time when I joined the company. Also, part of the gas was rerouted towards central installations at central sites to be used in the machines and in order not to be flared anymore. So this was an important step to reduce the environmental impact in 4 years. 20,000 tonnes of CO2 equivalent were eliminated by getting rid of venting this was paramount. When it comes to emissions in Angola and Venezuela, well, there are 2 different contexts in Angola. -- emissions are very specific and very high because fields have no water injections and you have light oils, whether natural gas and oil ratio that is high -- and so the gas needs to be burnt. We do try and put pressure on our operator there. to find solutions, and there are solutions to target those emissions. Turning to Venezuela. The situation there is far better. First of all, because you have heavy oils with less gas and light oils with more gas, but there's a recycling. And so emissions are far more contained without giving you any specific figure. That is what I could tell you about emissions.

Next question by Nicolas Montel. A question on the level of investment in Gabon for development and the impact on production. And a more general question on the changes in production in Gabon for the mid- and long-term perspective. You mentioned a potential above 20,000 barrels per day. So what are the investments planned for the years to come?

So for Gabon, about $100 million are meant to be invested mostly on wells. The program is well designed and constant since we resumed drilling after the COVID-19 pandemic in 2021. So, we want a rig to function permanently. We're about a dozen wells working per year, so about 12 wells. Well, at $70 million add to that additional surface investments. So, it's quite an effort to have this permanent rig, and it requires a lot of investments. But Gabon is now a mature field. You have not heavy oils, but oils that are not light and so mobility is at stake. So, operations are made more difficult and -- there is now a water production and means aren't required, not necessarily to improve production, but is no longer an objective, but simply to maintain production. And we have done so for several years, we were perhaps slightly below 20,000 barrels per day. That is one high level of performance. And as I said, the objective is to maintain that level as long as possible. So about 12 wells per year. We want to improve drilling performance levels, and we managed to speed up our processes through several ways. And so, we could go from 13 to 14 wells perhaps. And we need to continue our efforts. And on top of the development of wells, we have a few exploration wells to our plan for this year for fresh oil reserves that will enable a postponement of the production deadline. And we have several projects in Gabon and the South exploration activities. But we have not reached a final decision in any case, but we should manage to do so by the end of the year. So, a high potential in [indiscernible], but things will take time and maintaining the level of production is a success.

Another question. Could you tell us more about the operations planned in Venezuela for 2024?

I touched upon that. We want to go ahead with maintenance of certain pieces of equipment, electricity wells function with leave gas and it requires compression. And those are difficult processes. So, we want to refurbish the equipment that can be refurbished or repaired and also interventions on some wells, we will work on pumps that were damaged. They need repairments. -- certain valves will need to be repaired -- and so interventions will be undertaken. And then we will have workovers and drilling. And once again, the effect on production is -- the prospect is for an effect during the second quarter of the year.

Thank you, Olivier. Several questions from some of our shareholders on the potential well in Cecilia. Could you tell us what the objectives for this well might be?

So the well is in an oil area that is known recognized. So we will have intensive exploration there. We identified a number of targets with [ CSMC ] 3D methods. And so there's an oil objective for the well we have identified and also less significant gas objectives. So we're drilling for oil. And we are in the midst of an alignment when it comes to permit issuing, but we have a good relationship with local authorities. And mind by the time line, we should start by the end of the year, if we're not ready in December, perhaps we could extend or postpone the deadline. -- so we'll have to undertake cost assessment. And if we discover that the investment required is 3x what was planned, then we will stop. But I'm confident we will be able to start this venture successfully.

Olivier, another question on Nigeria and SEPLAT activities to for supply activities, I can't tell you more than what was said by SEPLAT. The results were published yesterday, and they are good SEPLAT is doing well. There is a governance shift, a new Chairman was appointed new directors were appointed and SEPLAT is showing good results in a country where the situation isn't always easy. SEPLAT is still working on closing authorizations to finalize the acquisition of [ Exxon mobile ] assets -- the case was slightly delayed, and the SPA was signed early 2022 and could still not be closed. This is because of the [ NNPC's ] intervention to prevent that, I understand that this is a pending case. The issues are not resolved. There was this postponement in agreement with Exxon.

Now this, of course, is public information and -- there is quite a high level of optimism when it comes to closing, but SEPLAT activities are showing good results. And SEPLAT will start development activities for gas, SEPLAT secured all of the Western production when it comes to its permit. And so the share price for SEPLAT Is also showing good results.

Thank you, Olivier. A question from shareholder on other projects in Venezuela project was greenlighted to reduce flaring, -- do you intend on increasing presence through other assets.

First, the gas project. We talked about this. Discussions are ongoing still. -- is quite tricky. This will run over the long term. We haven't invested more than time in studies and discussing -- there was no breakthrough over the past few months, discussions are ongoing. I'm not expecting any quick breakthroughs -- we're still discussing with the authorities on this tricky project. It's complicated, but it's quite worthwhile. Other projects, you know that for [ Onita West ] in our agreements with PDVSA, we have an option for PRDL to acquire other assets. So, we are involved actively to discover this oil field. This is a big oil field, which has many wells. This was stopped for many years. There's lots of work to do on this. We're appraising the necessary investment. We're identifying any potential quick wins and will confirm that we will take over this other asset or not. This is comparable in some ways, to [ Anita West ]. -- though the latter was better preserved. Production never stopped, though much work is still needed. We preserved through our operations, the better part of it for production to continue. But nowadays, Venezuelan authorities are open to giving other possibilities. And if possible, we are in a good position to move in as we didn't leave the country like other companies. We know the national context, and I can tell you that we're involved with the current oil fields and setting other potential assets.

Other question from a shareholder, in which country do you think you will move with acquisitions Sub-Sahara in Africa, Latin America.

Yes, there are potential areas to explore. We know these regions. So most probably sub-Saharan Africa and Latin America. We have enough work there. Let's put it that way.

Last question on dividends paid to shareholders. Do you think you will do a share buyback and what proportion?

Well, we mentioned it in our communion our press release, we sometimes do share buybacks in an opportunistic way. Of course, by following relevant rules to avoid insider trading laws or abide by insider trading laws and this year, we may do more share buybacks. I won't give numbers $0.23 or $50 million paid to dividends this year. This is limited, but we will compensate for this is we're unable to go higher, unfortunately, with a share buyback. The current price allows for this in a reasonable way, I think, but I cannot give you any precise number.

Thank you, Olivier. We reach the end of Q&A. Do you have any comments to make?

Conclusions. Well, I think we can say that everything was already mentioned. We're very confident in our soundness of many good prospects ahead of us. I said we are in a good position to perform growth pursuing trends at any date. Again, understand me well. Nothing is no project is on my desk ready to move. [ Onsana ] and others are still under exploration. We'll see the results. I think it's best not to go into too much detail for [indiscernible]. -- we are resuming work on this. We're in a good position -- we don't have concrete projects that we can move on yet, but we're confident in our capacity to work and identify potential wind zones. So again, we're confident based on past trends and the hard work done by our teams. We have run a tight ship. We lowered our debt position. We reached an unparalleled financial position, and this provides for a strong foundation.

Thank you. Thank you very much, Olivier. Have a good end of the day. Thank you for being. [Statements in English on this transcript were spoken by an interpreter present on the live call.]