Jazeera Airways K.S.C.P. (JAZEERA) Earnings Call Transcript & Summary

Hello, everyone. Thank you for joining us today. This is Rita Guindy. And on behalf of Arqaam Capital, I'm delighted to welcome you to Jazeera Airways H1 2020 Results Conference Call. I have with me here today, Mr. Rohit Ramachandran, CEO of Jazeera Airways; and Mr. Krishnan Balakrishnan, company's CFO. With no further delay, I'll now turn over the call to Mr. Rohit.

Thank you very much, Rita. Good afternoon, everyone. It gives me great pleasure to welcome you all to Jazeera Airways' Earnings Conference Call for the closing of the first half of financial year 2020 live from Kuwait. I hope that you and your loved ones have been staying safe during these extraordinary times, which defines the existence and the dynamics of our performance in the first half. And over the next few quarters, it's likely to define us as well. This time around, we will discuss both the first and second quarters, along with the first half operational and financial results. Given that we did not disclose any figures for the first quarter of the year, as instructed by the capital markets authority for all companies listed on Boursa Kuwait. Together, we will read along with the coming slides in order to dig deeper into the details of our operation and financial performance as well as the outlook for the remainder of 2020. And of course, at the end, we will have a Q&A session where we can dive into a little bit more detail. Let's straightaway go into Slide #8. The first quarter of 2020 was a mixed bag for Jazeera. We started the year on a healthy note, building on our growth plans that most of you are familiar with carrying on from a very good year in 2019, which we posted strong results. However, quite early into the year as the days went by, we started getting a sense of some negative signals in terms of passenger demand. And clearly, this was linked to the spread of the COVID-19 virus, which we highlighted as well during our call covering the financial year 2019 results. At the time, in, let's say, the month of February, neither us nor anyone else in the aviation sector was able to assess quite clearly the magnitude of the situation. However, towards the end of February, we began to take a very serious view on the way things would evolve. Once we moved into early March, there was a strong downward momentum as the Kuwaiti authorities shut down the airport for any commercial scheduled operations by the 13th of March. And this had, of course, at that point, a devastating impact on our operations. Passenger wise, we managed to carry 496,000 passengers during the first quarter, which is marginally less than the first quarter of 2019, largely because we had a strong January and a decent February. Our load factor and aircraft utilization were also affected by this negative environment with a load factor of almost 72% compared to 75.6% same quarter last year; and a utilization of just 9.5 hours compared to our usual 14 hour utilization that we had in the early part of last year. Yields were also affected negatively by the dwindling demand during the quarter down 5.3% to KWD 36.5 versus KWD 38.5 in the comparable period last year. Moving on to Slide 9. In line, our numbers were effective financially, as you can see, revenue in the first quarter of 2019 decreased by 11% to KWD 19 million, while operating and net profit were also in the red, registering a loss of KWD 3.9 million and KWD 6 million, respectively. As you might imagine, the immediate hits came to our revenue side while fixed costs continued to weigh heavily on our income statement. You will all recall how we previously discussed that these costs were the fuel that drives Jazeera's growth engines, the way we manage these costs. Once that expansion cycle was broken, these costs turned into a heavy burden with an expressively high bill, and we will discuss that and its impact on the following quarter in greater detail as we go through the presentation. Moving on to Slide 10 for a discussion on the operating performance of the second quarter. You will easily spot the near standstill situation throughout the whole quarter. The figures presented in the slide are merely factual, and really, there's no point comparing it with the same period last year. Our focus during this period starting mid-March right through today, as a matter of fact, is on cash flow management and controlling our costs as opposed to driving our P&L. Despite all of that, we opted not to stay idle and managed to conduct as much available business and opportunity that existed, and I will share with you a few of those details. Once the airport shut in mid-March, we went after any available business that existed. And essentially, they were in 3 categories. One was the government-mandated repatriation of Kuwaiti nationals who are stuck in various countries abroad and we carried a healthy share of that business. Second, we went after repatriation of expats who were in Kuwait and the limited number of charter flights that we were allowed to operate to take them back to their home countries. There were a small number of deportation flights as well for people who have overstated their residencies. And we also began in fact, starting a very steep learning curve when it comes to carrying cargo. As a core low-cost carrier, cargo has not traditionally been our core business. But we learned very fast, and we started carrying significant amounts of cargo, including loading it in the passenger cabin after getting the necessary certifications and thereby ensuring that the supermarket shelves of Kuwait were well stocked and also earning revenue in the bargain. Moving on to Slide 11. Having said that, we move to the following slide, which reflects this restrictive business environment in financial terms. As you can see, there is a large expected decline on all financial metrics with revenue down by 70% year-on-year with a net loss of KWD 3.9 million compared to a net profit of KWD 4.7 million in the second quarter of 2019. In Slide 12, we take a look at the comprehensive impact on Jazeera's operational metric for H1, the first half of the year. The number of passengers we carried is down by 50% more or less in line with the drop in utilization rate while load factor is down 8.3%. The yields are higher, which is driven by the extremely high yield we registered in the second quarter by carrying the government-mandated repatriation and deportation flights that I spoke about just a minute ago. Moving on to Slide 13. From a financial performance perspective, H1 revenue came in at KWD 26.7 million, which was down 44% from the first half of last year, coupled with an operating loss of KWD 8.2 million and a net loss of KWD 9.9 million. The next slide deals with some of the metrics regarding the terminal, which, of course, form part of the results that I have spoken about so far. Now let's move on to Slide 15. In the coming section, we will elaborate on some of the measures we took to safeguard the stability and sustainability of our financial position as well as our initiatives to support the government efforts to contain the spread of the virus and to transport passengers to and from Kuwait International Airport. Slide 16. On the 13th of March, as the government announced the suspension of all commercial operations from Kuwait airport, we were very swift in adopting several ruthless measures to protect our long-term business continuity. Indeed, having a healthy balance sheet was a blessing during difficult times. Yet, we needed to be active and immediately turned our focus to cash flow and cost management. Jazeera's Board, after monitoring the situation, opted to reverse its prior recommendation to distribute KWD 13.5 million as dividends in order to preserve cash. In parallel, we activated the drawdown of several bank facilities that were not previously tapped to support Jazeera's ongoing liquidity through the coming months. The focus, as mentioned, was to build a cash war chest. On top of that, we took some severe cost control measures. I would like to highlight 2 main measures. Very early from the last week of February and the first week of March, we knew that this is going to affect our business significantly. And we were one of the very first airlines to dramatically reduce our manpower costs. It was an extremely unfortunate measure because the top-notch team that we had built, which delivered the results of 2018 and 2019, suddenly needed to come under scrutiny, and we took the painful decision to let go of almost 37% of our pilots, crew and the rest of our team. In addition, we negotiated with our aircraft lessors. As you know, we have an all-leased fleet. Over the course of the last 6 months, Krishnan and I had more than 60 meetings with our aircraft lessors to ensure that we can bring down the cost of our -- fixed cost of our aircraft. As you know, aircraft lease contracts are air tight and bulletproof, and we are liable to ensure continuity of aircraft lease payments regardless of events that we may consider force majeure. In any case, as a result of very aggressive negotiations, the aircraft lessors agreed to delay and defer our payments. However, we did not accept delay and deferral of payments because that would simply mean that we don't pay the lease today, we end up paying it tomorrow, and that is not acceptable to us. We were pushing for a waiver of aircraft lease costs. That, of course, was completely unacceptable to aircraft lessors initially. It took more than 5 to 6 months of hard negotiations, and I'm happy to report to all our investors and all the analysts listening in on this call that we have managed for all our aircraft to reach agreement with our lessors for, in some cases, complete waiver and, in some cases, a significant partial waiver of aircraft lease costs going through for a 9-month period from March to November of this year. Since most of these agreements have not been concluded in time for the H1 results, you will see the benefit of this in the upcoming quarters and H2. I would like this opportunity to thank our staff, our management, our Board for really their valuable contribution during this time for now for Jazeera. They have really stood by the company, especially the team who voluntarily accepted -- the entire staff who remained at Jazeera, they voluntarily accepted a 50% pay cut in an attempt to support the company, which continues to this day. Let me now move on to Slide 17. During the months that Kuwait was officially closed, we operated a number of flights that have been scheduled under the directive of the Ministry of Foreign Affairs and coordinated by local embassies of Kuwait in different countries. These are one-way charter flights for expats flying out of Kuwait as well as bringing Kuwaiti back from countries abroad back into Kuwait. Moving on to Slide 18. As part of our national duty and social responsibility, we have also played a major part in the repatriation program, as I mentioned, to bring back 6,800 Kuwaiti nationals stranded abroad to Kuwait plus 60 special flights from 19 cities, including many that are outside of our usual network. Further, we built a passenger reception center called the KPRC for the Kuwait Passenger Reception Centre. It was managed by the Ministry of Health as well as the Ministry of Interior, where we provided COVID-19 tests for all passengers arriving on other repatriation flights. We converted our famous Park & Fly facility, used by the Ministry of Health, to perform the first drive-thru virus testing in Kuwait, and it is the largest such facility in the Middle East. And last but no means the least, as a gesture of our appreciation and gratitude for all personnel participating on the front lines, Jazeera offered 50,000 free round-trip tickets to frontline workers like nurses, doctors, policemen and so on, the ones who have to fight the COVID-19 pandemic in Kuwait. Let's now move to Slide 19. The biggest challenge once all these regulatory restrictions are lifted is to ensure that passengers are convinced that flying in general and flying on Jazeera, in particular, are very safe. So we took this as a responsibility to ensure the safety of our passengers and our crew, and we took several precautionary measures in line with the directors of the WHO, the Ministry of Health and the Kuwait Director General of Civil Aviation authority. These measures include antiviral disinfection programs in the cabins, where the aircraft is sprayed after each flight, fumigated using antiviral, high-pressure disinfection sprays on seats as well as throughout the cabin, the use of chemicals and disinfectants that are internationally approved and safe for all passengers. An important thing to note is our aircraft, air filters and onboard filtration systems are also replaced frequently thereby removing dusts, allergens, bacteria virus and other irritating particles. It's a little known fact that the constant airflow to make sure that the aircraft and the cabin air is refreshed every 90 minutes throughout the flight makes flying on new generation aircraft like ours actually much safer than even shopping in a supermarket. As you can see from some of the pictures on the presentation, our cabin crew now wear full protective gear, which is disinfected before boarding flights and, again, when disembarking. And passengers, themselves, are mandated to where medical face masks and gloves at all times. Passengers receive a hygiene pack and our prepacked closed food bags to avoid risk of contamination, which are indeed donated by Kuwaiti nonprofit organizations. For now on short flights, we have completely suspended the sale of hot food and beverages on board. Let's now move on to Slide 21. From our end and within our control, we continue to work on our cost rationalization efforts in order to weather the storm and come out even stronger and healthier than when it started. It's interesting to note that our cash balance today is actually larger than when we began the year. I mentioned earlier that our lengthy negotiations with aircraft lessors have proved fruitful, and we have reached settlements to restructure all our aircraft leases with them, creating significant cash savings for us during the year. We anticipate a slow and gradual recovery over the coming months as yields continue to be under pressure and aircraft utilizations remain very low. You will recall, as part of our strategic plan, we have planned to take delivery of 4 A320 Neos from Airbus at the end of this year. We have now renegotiated this with our lessors as well as with Airbus, and these aircraft will now be delayed until next year. Further, we are still in touch with our departed team members and we have assured them that they will have priority in rejoining us once the situation improves. Additionally, our gains in terms of cargo operations will not be short lived, and we have now decided to make sure that it becomes an integral part of our business moving forward. Let's now move to Slide 22. As for resuming operations within our network, we are continuing to be on high alerts, monitoring minute to minute, practically, the updates on all airports in all countries that form our network. Travel restrictions, along with safety measures like mandatory quarantine, does and will restrict demand for the months ahead, but we foresee a gradual resumption of operations over the coming months. Before I close, I want to highlight that I'm really very proud of the efforts and measures that our team have undertaken during these past very difficult few months. We continue to be extremely confident in our business model. And I know that one day and one day soon, Kuwait will reopen for business. There's no doubt in my mind. And when that day comes, Jazeera will be as strong as it has been before. The challenge and the trick is to ensure that from today until that day, we protect our resources, we protect our cash, and we make sure that when the day comes that Kuwait is open for business, we are ready and we start strong. With that, I hand you over to Krishnan for a more detailed discussion of the financial section. Krishnan, over to you.

Thank you, Rohit, and a very warm good afternoon to all the participants on the call. I will take you to the next slide with the first quarter '20 key parameters. One of the highlights is that, compared to the last year, we have added 4 aircraft in the -- by the first quarter, 3 in the last quarter of '19 and the last aircraft in the first quarter. So that's why you see the jump from 9 aircraft to 13.7 aircraft in Q1 '20. Other than that, if you see the utilization has dropped, I think the rest of the matters already was covered in detail by Rohit. So I will not dwell too much on it, but March 13 was the last day of scheduled operations that we have. If you go to the next slide, please, you will see that because of the closure of the airport and the COVID impact even in the operations until the closure, the loss for the first quarter '20 was KWD 6 million net as compared to a profit of KWD 1.5 million in the first quarter of '19. Two major things which happened where the yield dropped and the passenger number dropped, and those 2 primarily contributed to this loss of revenue in this first quarter. Of course, we also had the operating expenses, which were higher, yes, because of the fixed costs, which were continuing, and also because there were more aircraft in the fleet during this first quarter of '20 as compared to '19. The cash position was KWD 33.445 million as of end of March 2020. And I'll take you now to the next slide, which is on the second quarter '20 parameters. Here, we had a flat 14 aircraft fleet as compared to 9.3 in the last year. The rest of the parameters are really not very comparable for the reasons which we already explained. The airport was totally closed during this quarter and the only operations were for the repatriation and cargo primarily. If I take you to the next slide on the financials for quarter '20, second quarter '20, we had a net loss of KWD 4 million as compared to a profit of KWD 4.7 million in the previous year same quarter. At the end of this quarter, our cash balance was KWD 28 million and our equity was down to KWD 26.1 million. The terminal, of course, being closed totally, ended up with a loss in this quarter as compared to a profit in the previous year, and the operating expenses were lower mainly because of the level of operations being very, very small. Let me take you to the next slide, which summarizes the whole performance for the first half of '20.So here, if we see the average aircraft we had was 13.8 as compared to 9.2 in the previous year. The utilization on average was only 5.7 despite 2 months of full operations. The rest of the 4 months operations brought down the average to 5.7 compared to 13.7 in the previous year. The loss for the first half of the year was KWD 9.9 million as against a profit of KWD 6.2 million in the previous year. The cash position we already saw was KWD 28 million at the end of this half year and with total equity was KWD 26 million. I'll quickly take you through the reasons for the movement of swap you have in the next slide. The Brent has been on the lower side from the first quarter '20. And right now, it is slightly on the increase, and it has touched about mid-$40 as we speak. If I go down to the next slide, on the balance sheet of the first half '20, the cash balance did reduce if compared to the end of 2019. But if you see as of 2019, 2000 (sic) [ 2020 ] H1, we had an increase in the cash balance and that was primarily because of the profits we made in 2019. And also, we drew down the loan in 2020 first half. However, the cash losses in the first half have been offset. And therefore, we have still increased -- we have increased the cash challenge as compared to the first half of 2019. The fixed assets decreased because we did the sale and leaseback of 2 engines in the last year. The assets -- total assets and liabilities increased mainly because we added 4 aircraft between Q4 of 2019 and Q1 of 2020. The retail earnings decreased, as we already saw. And with that, I conclude my section of the presentation.

[Operator Instructions] So our first question comes from Nishit Lakhotia from SICO.

The presentation was very informative. I have 2 questions. First, on the lease cost waiver, if it's possible to quantify exactly how much will be the benefit from this March to November. We were a partial and full in some cases because you've got multiple lessors. So what can we expect in terms of any reversal for the first half that you booked? And what will happen for the third quarter in terms of numbers? That will be helpful. And second, on the ForEx loss that we saw a huge ForEx loss coming in first quarter of KWD 1.2 million. What was that regarding -- more color on that? And something on the hedging, I mean, you've got a huge negative hedge. So what levels are you hedged? A bit more color on that.

Thank you, Nishit. Good to hear from you again. I will answer all the 3 questions the best I can. Regarding quantifying the impact of the lease, Nishit, I won't be able to go into specific figures for 2 reasons. One, since you've been listening to my investor calls now for almost 4 years, you know that I don't go into specific line items on the P&L. And secondly, we've had to sign very strict agreements, including confidentiality clauses that I cannot, for obvious reasons, reveal the details of the agreements that we have with the lessors because what I can't -- I can tell you 2 things regarding this. One is that it's going to have an impact of 8-figure U.S. dollar positive on our P&L for this year, okay? And second, in a nonbankruptcy situation, we probably have the best outcome of negotiations with aircraft lessors in the world, not in the region, in the world. I hope that gives you some indication of what I'm talking about. Second, regarding your questions, about the ForEx loss and the hedge, I will ask Krishnan to give you more details but a very quick summary. The ForEx loss is not a ForEx loss in its traditional sense. In other words, it's not, for example, that we had a huge balance of, let's say, Indian rupees or Egyptian pounds and we had to book a ForEx loss. There was a marginal movement of the Kuwaiti dinar against the U.S. dollar, if I'm not mistaken, about 2%. And because of IFRS 16 and the impact of IFRS 16, it has consequences to the way the leases for the duration of the aircraft leases are valued. And I think if there is a correspondingly opposite movement of that exchange rate between Kuwait dinars and the U.S. dollar, you will find it being reversed, wiped out or even moving into the positive territory. So it's not a loss in its traditional sense, but Krishnan can give you more details. Regarding the hedge, now you will recall that I don't discuss the details of at what level we were hedged. But I can tell you that it was very attractive at, let's say, January or February of this year. We hedged about 50,000 barrels, which is not more than 50% of our requirement at that time. Now the thinking was that even if it moves into negative territory, we'll take the advantage of uplifting fuel at the lower price, thereby offsetting the hedge loss. Nobody would have possibly guessed that our level of operations would go to 0 and, hence, we'd be unable to take advantage of the very low market price that existed. So it was like a double whammy at that point. I'm happy to report now that with Brent back in the mid-$40s, the hedge-related losses have now progressively declined significantly. Krishnan, can you also add anything to what I have regarding the ForEx and the hedge?

Yes. So you basically have covered the whole concept very clearly, Rohit. I'll just add one sentence. The -- for the ForEx loss, because the lease liabilities is a monetary asset as per IFRS there was an ECL adjustment done, and that is why the ForEx loss was booked. So like Rohit said, it is a book loss, and it will get reversed as the currency strengthens. On the hedge also, because to the extent that we could not utilize the full hedge quantity during the next few months until end of the year, we had to take a hit for the exposure, which is over and above what we are using. So that was the hit we had to take in the first and second quarter.

So that's more or less a mark-to-market outcome, correct?

Yes, that's correct.

Nishit, does it answer your question adequately?

Yes, it does. Yes, it does.

[Operator Instructions] We currently have no further questions. [Operator Instructions] Our next question comes from Divye Arora from Daman Investments.

I have a couple of questions. So the first one is linked to -- you were saying that the delivery of 4 planes has been delayed to next year. Assuming that if the situation continues to be the same that you have to run that 40%, 50% offload factors next year, and it will be hard to find new routes. Then how long can this be delayed? Can this be even delayed by 1 more year? And can we push to, 2022 rather? That's number one. Number two is, can you throw some color on the second half of this year? Kuwait has provided a reopening plan for the aviation sector. Considering that in mind, what sort of utilization rate do you expect, the load factors do you expect for the second half? And would you be able to -- or what sort of cash burn are we talking about in the second half?

Thank you, Mr. Arora. I will start with your first question regarding the 4 aircraft deliveries. As you probably know, aircraft deliveries are also normally cast in stone because once the aircraft is delivered by the manufacturer, it needs to be accepted and delivered most of the time without any change permissible. However, based on our relationship with Airbus and with the lessors, we have managed to push it to next year. I doubt very much that we will be able to delay it beyond next year. Having said that, I'm also optimistic that, by next year, at any rate, there will need to be a recovery in many of our key markets by necessity because it can't continue this way endlessly. There is talk of the vaccine. And I think once the vaccine is deployed in Q1 of next year, I take a realistic view. It will probably take another quarter to make any measurable impact. And then my expectation is that around middle of next year is when we will begin to see a decent recovery, okay? And that also, by the way, partially answers your second question, which is how do I see the second half of this year looking. And if I'm honest with you, I don't see a dramatic improvement in the second half of this year. I think there will be a gradual improvement. I think there will be incremental improvement, but the reality is you'll see significant improvement only once governments feel comfortable reopening their border restrictions, their immigration restrictions, and that will happen only when infection rates go down. And infection rates will go down only when I think there are vaccines and therapeutics deployed successfully. The good thing about those 4 aircraft is those 4 aircraft have been negotiated at the lowest lease cost in the history of Jazeera. So yes, it's always, in my opinion, not a good situation to have additional aircraft grounded. You will notice that we have one of the highest aircraft utilization rates in the world for Airbus narrow-body aircraft until the beginning of this year. And in my view, because we have negotiated hard and got these aircraft very cheap, it's not going to be a huge unsustainable burden for us when we get it next year, even if it's not fully utilized even if they're partially utilized. The second half of this year, as I mentioned, it's going to be slow. It's going to show gradual incremental improvement. And for precisely that reason, we have undertaken this month, in fact, from last week onwards, another very painful, okay, a very painful and more aggressive cost control measure. And that was another round of cuts in our crew and in our staff and at all levels of our management as well, okay? We realize that for us to be strong and sustain ourselves when Kuwait opens, which -- in a meaningful way, I mean, unrestricted, which I expect to be sometime next year, we need to have enough cash on hand. We have enough cash on hand, but we need to be strong. We don't want to burn it for no reason. And that -- and so what we have done is we've embarked on another round of cost control measures, including manpower costs. Unfortunately, we have to take painful decisions such as this. And approximately, I would say, another 7-figure Kuwaiti dinar cost reduction in terms of our manpower is going to take place before the end of this month. And that will affect permanent savings in that range of costs. Our cash burn, in broad terms, before the coronavirus impact on our industry, was approximately about KWD 4 million of fixed costs a month. Once we put in all these measures that I mentioned, cost control measures, we are now around KWD 1.5 million a month. You can imagine, we have gone from KWD 4 million to about KWD 1.5 million. And that shows how deep and aggressive we have cut our costs. I hope that adequately answers your question, Mr. Arora.

Yes, that was helpful. And so can you just tell us how much is the total lease payment annually amounts to? So you're not paying it. You have not paid for the last few months, but in general, with 14 aircraft that you have right now, how much is it, like KWD 18 million annually?

As you know, Mr. Arora, and I spoke to Nishit earlier just before you, I don't get into individual line items of costs.

Sorry, I'm not saying that how much you have to pay this year? Like what do you have to pay after negotiation for the waiver? But in general, I'm asking the question, how much you have -- how much it would be in the normal condition?

Those lease contracts are confidential, Mr. Arora.

Okay. All right. So you have been talking about that you cannot delay the planes beyond next year. So when exactly are these planes going to be delivered next year?

It's progressive from Q2 onwards. So between Q2 and Q3.

We currently have no further questions. [Operator Instructions] Our next question comes from -- we have 2 more registered questions. Do we have time?

Okay. I will take these 2 final questions. Please go ahead.

So our next question comes from Belal Sabbah from Jadwa Investments.

Everything is clear. I think asking -- my question was just answered. But maybe if you could give some indication about what the time line is for Kuwait International Airport in terms of reopening. So my understanding was, according to the presentation, it was going to open with about 30% of its capacity, but then there were a lot of countries that were banned from entry or banning flights. So just in terms of like time line for the rest of this year, how do you see that playing out?

Thank you for your question, Belal. And I will try and answer your question as politely as possible because this is something that really raises my blood pressure, okay? As you know, quick authorities had said that great airport would open for scheduled traffic from the 1st of August with a 30% restricted capacity which would continue all the way until February. And from February, it would go up to 50% of capacity. And then only the following August, it will go to 100%. And we were -- we had planned for that. We were ready for that. And just a few days before the scheduled reopening of the airport, they added 7 countries from which passengers were not allowed to return to Kuwait, including several on our networks, including Pakistan, India, Nepal, Bangladesh and so on. And if that was not bad enough, on the 1st of August, once the airport actually opened, they increased that to 31 countries, including Egypt, Lebanon and so on. Now I understand that these matters are governed by matters of public health and the government has an obligation to modify and amend its restrictions as it sees fit in order to protect public health. To answer your question, it depends on the government. What we can do is to be ready, be opportunistic wherever we see an opportunity and some places even when there are no obvious opportunities. We sneak in some flights. We put in some charters, we carry some cargoes and we operate. But it's obvious that for us to scale up, we do need some of these countries. [Technical Difficulty]

We are unable to hear you. We currently have no further questions. [Operator Instructions]

Belal, sorry about that. I got disconnected in mid-sentence. I think Krishnan is taking our cost control a bit too seriously and not paying my phone bills. Good to be back. So I hope I answered your question.

Yes. So our participant has -- is not in line with us anymore. But Mr. [ Zeeshan ] (sic) Sabbah mentioned that, yes, you answered his question.

Excellent. So if there are no more questions, it was a great pleasure being with all of you. I look forward to being on another conference call with you in 3 months' time, and I now hand back to our host, Rita from Arqaam.

Rita has disconnected, Rohit, if you would like to continue. So one of our participants has registered another question. I guess we don't have more time.

I think we were close for today. If anyone has any questions that have not been answered right in to Mostafa, who is our Director of Investor Relations, and we'd be happy to get back to you privately on e-mail. If there's nothing else, I look forward to speaking with all of you in 3 months' time, and stay healthy and stay safe. Thanks very much, and thank you.