SeaBird Exploration Plc (SBX) Earnings Call Transcript & Summary

Hello, everyone, and welcome to this Third Quarter Conference Call for Green Energy Group. My name is Stale Rodahl. I'm the Chairman of the company, and I'm here or at different locations then with our CEO, Gunnar Jansen; and our CFO, Erik von Krogh. Okay. We got forward-looking statements then and our agenda for the day. We will go through the highlights for the quarter. We will give an operational review of Green Minerals. And most of the time, we'll spend on SeaBird and the seismic operation. And finally, we'll have a summary in the end. If we look at market values by business areas by the end of the quarter estimated on the basis of share prices, Green Minerals constitutes around 67% of the value of the group with SeaBird making up the balance then. Our mission, I just want to quickly repeat it, to create shareholder value. We intend to build sustainable businesses in 3 ways: start-and-build; buy-and-build; and transform-and-build. Finally, in August, the AGM decided on rebranding from SeaBird into Green Energy Group. And the relocation is still in -- take us through the relocation, please.

Yes. The relocation is expected to be resolved at the Extraordinary General Meeting in mid-November 2021.

Okay. Any other comments you want to add to that, Gunnar?

No. The process is going, and we still expect that it will be completed then -- prior to year-end this year. So then the company can then be relocated from Cyprus to Norway.

Yes. That puts the company on an SE status after relocation. Highlights for the quarter then. We are with this quarter, importantly, we want to highlight. We are introducing the company's NAV as the single most important KPI, along with the discount to it, naturally. And this is really the most important KPI to follow for the company going forward in order to judge its progress in terms of creating shareholder value. NAV by the end of the quarter was reported at NOK 10.9 per share, and the share ended around NOK 4.4. Other highlights, revenues more than doubled to $7 million, and EBITDA saw a turn from a negative $0.6 million in the third quarter to a positive $0.3 million for the quarter. This is on sharply improved fleet utilization in seismics, which is up from below 30% to now 58% and a still strong equity ratio of 49% then. Major events. Head and shoulders above the rest is the 1-year source contract that we have announced for the Fulmar Explorer, which is a change in the contract structure that we've seen for SeaBird for many, many years. Also, the Fulmar Explorer, we've completed the outfitting of the Fulmar to a high-end source vessel, largely on time and on budget. All owned vessels with this have now won contracts year-to-date. And also, we are very pleased to report that we have taken the first steps in consolidating the OBN segment. Finally then, as I mentioned at the AGM in August, took a decision to rebrand into Green Energy Group. And that process is now almost concluded, as Gunnar touched upon, with an AGM expected to be held in November putting that behind us. And finally, the group has joined the UN Global Compact initiative, which commits Green Energy Group to the sustainable development goals and a certain reporting within that framework. When it comes to the key figures, we've largely touched upon the most important ones, which is the EBITDA and activity levels as measured by revenues. Other than that, net interest-bearing debt at $12.5 million and the net asset value at $42 million or $10.9 per share then. We are introducing segment reporting to be able to compare like-for-like as the improvement in the seismic operation is somewhat larger than the improvement in the group, but the difference there, of course, is made up by Green Minerals, which is in a pre-revenue phase, largely has cost related to R&D. So the seismic operation with $0.6 million plus versus like-for-like a $0.6 million negative a year ago. The net asset value we're introducing is calculated and will continue to be calculated on the basis of book value for unlisted operations and market value for listed operations. The book value is seen as the best measure as the true underlying value for the seismic operation given rigorous impairment testing that is done annually for this metric. And of course, we can see here that the split in the NAV based on this measure is quite the opposite of the one based on market values by the end of the quarter, where Green Minerals constitutes around $12 million of a net $42 million asset value, which is around 30%, while Seabird makes up the balance with around $30 million or around 70% of the net asset value of the group. Green Minerals. I just want to briefly touch upon a few elements here. There has been no change to our time line during the quarter. So the opening process on the Norwegian Continental Shelf is very much going on as expected, with a public consultation that was -- that ended in April this year. And the impact assessment is continuing to be carried out with the NPD as coordinated there. We expect another public consultation by the end of next year and then the formal opening decision then in the second quarter 2023. As you might remember, we had initially, about a year ago, the first quarter '23 as our target. It has now been moved to the second quarter. And it seems to be that consensus is building around the second quarter as the most likely date for opening. During the third quarter, the NPD has been out commenting in seminars on the work being done and has confirmed that the NPD will be -- will have finalized their work and be ready by early 2023 to deliver everything that they need for this decision to be taken. So that's good news in terms of the timetable here. Thereafter, we then expect the server license to be granted immediately after and our first cruise on the Norwegian Continental Shelf to take place in the third quarter of 2023. And then we expect the E&P license awards a minimum 3 to give Green Minerals in the first half of 2024, allowing the company to start reporting reserves probably as early as 2025, with full-scale production well before the end of the decade, which is a very competitive time line compared to other greenfield projects in mining globally. Also, I should add here that our technical team is now fully up and running as of the third quarter. And that means that the probability for international licenses have increased in terms of timing before the decision to open in Norway in the second quarter 2023. Environmental issues. We continue to get, of course, a lot of questions in terms of the environmental impact of deep sea mining and whether the social license to operate will be granted. We have done quite some work ourselves in terms of calculation on our target deposit, which is SMS on the Norwegian Continental Shelf. You will find that in presentations on the Green Minerals' website, so please go there to look at it. I just want to -- here to repeat that our calculation support, what you're seeing here then, but more specific on SMS deposits. But overall, the study done by Paulikas that was published last year, again, shows that deep sea -- on a side-by-side comparison, deep sea mining versus terrestrial mining, we expect deep sea mining to show a 70% to 100% lower environmental footprint than terrestrial mining then. So 70% to 100% on all the main metrics here, whether that is CO2 emissions, whether that is ore use, whether that is deforestation, whether that is waste, which is very, very important in terms of second round effects on the environment and also wildlife, et cetera. So in our mind, no doubt that deep sea mining is the most environmental-friendly way to mine for these resources with the knowledge that we have today. And I can say, we look forward to this discussion continuing and for us to be able to show this not only to investors and analysts, but also to the opinion at large. So we have -- along with academia and authorities, we have a data-driven approach to this. And we are confident that the data will prevail in the end. When it comes to the other developments in the quarter then, of course, we had a very, very busy first half, as you have seen. We had a lot of news releases regarding contracts; regarding funding grants from Norwegian government; regarding key hires, partnerships, et cetera. And now with the team fully in place, we are executing on the structure that we set up in the first half, which means a lower news flow. But the main developments for the quarter, I would say, is that we have 1 of the 3 projects that we got government funding for was DeepMineX, which is our own proprietary deep sea mining software. And we have initiated a research project with NTNU during the quarter. So that project is now -- we're putting additional resources on it, and that is now very much moving. It's an important project for us. Secondly, the first research cruise, where we are participating, by the way, we are not operators of the cruise. We are participating. But the first research cruise as then be moved from a difficult weather window, I would say, which is October, this is in the TAG area, to a more benign weather window, which is March, April. And this is for technical reasons. It is an insignificant move in terms of our operations and preparations and has no impact on our preparations for licenses and the data that we expect to get out of this cruise. On the contrary, I would say that our technical team very much welcomed this delay in order to put more quality into our preparations, not least the 2 PhD projects that we are responsible for in the Project ULTRA. So by the end of the first quarter or early second quarter, we expect that project to move ahead then. Otherwise, we are keeping our aspirational targets unchanged. And you know the numbers, annual oil production of 1.5 million tons when up and running. There has been not much changes to metals prices in the third quarter. As you know, they moved up a lot in the first half, improving the economics of the project considerably from what you see in the table to the right with rise that's 30% pretax IRR. That is based on around $6,000 copper price. And we introduced then cobalt, simply because of the very high cobalt price and the considerable content of cobalt in this ore. We -- first we had to introduce cobalt and the sensitivity there to our numbers, which means that our gross revenue numbers will be around $800 million or above $800 million per year, more than $2 million per day with prices above $50,000 per ton. And then I will hand it over to Gunnar and Erik for the seismic operation, please.

Thank you, Stale. So the -- this quarter, I think we did actually see a significant improvement for the entire org perceived as a whole. The flexible fleet, I think has -- or we have demonstrated through the quarter that the fleet is indeed flexible. We have flexible in sense that we have the old vessels, Eagle, Fulmar and Petrel. And the charter of the vessels Veritas Viking and Voyager Explorer. We have also seen during the quarter that the fleet is flexible also in the sense of the operations. The Eagle has been operating and started the 2D survey during the quarter, the first in almost 2 years, having been operating mainly as a source vessel in between. The Fulmar, as I will get back to you, has completed the outfitting to a high-capacity OBN/source vessel and is getting ready to transit and start the 12-month contract that we announced a few days ago. Petrel Explorer, also owned vessel, has been utilized on a wind farm support contracts, initially 4 months but extended to total 6 months. Veritas Viking on a flexible charter operating on a source contract that was recently concluded in West Africa. And Voyager as well in -- is in position in Asia Pacific and is being marketed for OBN/source work there. Next slide, please. So as I mentioned, utilization was significantly up in the third quarter from the low of 24% in the previous quarter to 58% in the third quarter. We did say at the last call that the second quarter, we believe, marked the bottom reflux of the market and that we now face an increased activity and increased utilization. And that was definitely the case. It's also worthwhile to comment in relation to this that the utilization is calculated only on the revenue-generating days for the vessels when we have cost on them. So the 58% utilization does not include mobilization and transits at the time. Next slide, please. Revenues in the third quarter relates to the 2D contracts for Eagle Explorer and an offshore wind contract for Petrel Explorer and the OBN/source contract for the Veritas Viking. The OBN/source source contract being the significant part of the revenue together with also Petrel [indiscernible] there as well. Next slide, please. As mentioned, Eagle Explorer started the 2D survey in this quarter in India. The -- actually started the production at the very end of August but have been producing through September. And also October, production is going very well. There is very little or almost no technical issues or technical downtime on the projects. That has an expected duration of about 120 days. The Petrel Explorer has been working or we -- have 100% full utilization through the quarter, working on the wind farm support contracts in the Baltic. That operation has also been going very well. No technical downtime. And we believe, of course, that the 2 extensions we have received on that contract, taking it from 4 to total 6 months also is a correct sign that the vessel is suitable for that kind of operation and that the SeaBird organization has managed also to show that we can operate the vessels also outside of the seismic segment, which is, of course, the main business for SeaBird. Fulmar is -- spent the quarter outfitting to an OBN/source vessel, high-capacity, high-redundancy source vessel. And again, I think that the capacity of the vessel, the qualities of the vessel, was also very important for -- in relation to the 12-month contract that was recently awarded to the Fulmar. Veritas Viking on a flexible charter was employed on an OBN survey in West Africa. That started in late June and was completed in October. So she is now transiting, demobilizing the survey and is transiting to -- back to Norway and will be redelivered to owners until, hopefully, we can secure more work also to the Veritas Viking going forward. Next slide, please. In general, what you see in the market is that the increase in tendering activity that we have seen since -- well, basically since last year but significantly in the previous quarter, that continues also into the -- also in the third quarter. It's especially OBN/source where we see the most tenders coming in. We also receive -- or there are few 2D surveys being tendered. The -- we made a slight change to this graph compared to previous graphs. The category that was before 3D is now renamed to other. So that includes relevant 3D work, niche 3D that we potentially could do, but it also includes work outside of the seismic segment, typically wind farm support work or other work that Petrel, in particular, will be suitable for. The increase in activity. We also see that continuing -- or we expect it to continue also. We're at least stabilizing in the fourth quarter. 3 weeks into the quarter, we have already begun to see good activity and received 5 new tender requests for quotations on OBN/source and some 2D and wind farm support work. The increase is a result of the oil price stabilizing at a higher level, returning -- a return to normality after COVID-19. The market has adjusted to the operational challenges. COVID-19 is no longer a reason for stopping or postponing surveys. There are still some operational challenges in terms of quarantines, travels and so on, of course, but this has been adjusted too. And as a general remark, we also see that -- believe that oil and gas will remain an important part of the energy mix also in the foreseeable future. And therefore, there will be a need for seismic services, in particular, perhaps on ocean-bottom seismic, which is, to a great extent, production-related. It's -- the oil and gas companies have a focus on increased recovery from already producing fields as well as near-field exploration. In the OBN/source segment, we also see reduced competition following equipment consolidation. As we have reported, we have [indiscernible] agreements for taking over equipment from vessels that have subsequently also exited the OBN/source segment. And so that's also improving the OBN market from our perspective. The key areas that we see for us going forward in this segment is Gulf of Mexico, Brazil, West Africa. And we also see that in North Sea is -- there was some increased activity on the OBN side in the North Sea as well. Proprietary 2D surveys, meaning surveys that are performed [indiscernible] company and as opposed to notifying surveys. We see there are some 2D surveys planned and tendered. The main driver for these or for 2D demand the way as we see it, is the energy's -- for the focus of policies of energy security in certain regions, typically the Far East and Africa. And we also expect that India will be an important -- or a relatively important market for 2D going forward. As I previously mentioned, that's where the Eagle Explorer is now conducting a 15,000-kilometer 2D survey. Next slide, please. And then over to you, Erik.

Thank you, Gunnar. Yes, I'll start with the key figures from the seismic operation. And the revenues from -- for the quarter was $7.1 million, up from $3 million a year ago, while the EBITDA increased from negative 0.6% last year to 0.6% positive this year. And based on both revenues and EBITDA, this is the best quarter since the impact of the pandemic, and of course, reflects the increasing activity. As you can see, utilization at 58%, up from 28% in the third quarter of last year. Next slide, please. The figure to the left illustrates the growth in revenues compared with the previous quarters. And then we also included the 12 months rolling aggregated revenue, which is the line in figure. And as you can see, following a dramatic drop during the previous 4 quarters, the trend has now turned and the revenues are increasing. The figure to the right illustrates the development of EBITDA. And following 4 quarters of negative EBITDA, we are very happy to see a positive figure in this quarter. Next, please. The SG&A for the quarter was $1 million, slightly higher than the last quarter but in line with earlier this year. And then if you look at the figures -- the figure, you can see that cost reduction has been significant as the cost-reduction measures were implemented in the beginning of 2020. And the SG&A year-to-date is down more than 30% compared with last year and 40% compared with 2019. And going forward, we still have an ambition to continue this trend, even though with increased activity, it is -- yes, that may drive the other way. But we will do our best to keep the cost at a lower level. Next, please -- sorry, yes. CapEx during the quarter was, as you can see, very high compared with the previous quarters. And that is mainly related to the outfitting of Fulmar, which is about $5 million, but also related to equipment and consolidation. And going forward, we expect somewhat higher CapEx related to equipment renewal as activity is picking up.

I think it's -- just to add to what Erik has said, as we see the increased activity, that will mean that there will be need to -- for more sort of CapEx-related maintenance and replacement of equipment due to wear and tear. But it -- we do also expect that it should be significant. I mean more in line with the previous quarters than this quarter.

Okay. I can just add to this that when it comes to the CapEx then, so the conclusion is activity-related CapEx, naturally on the increase on the basis of higher utilization and more activity with the vessels, but no other large CapEx planned. Also, I just want to connect one comment to the other CapEx in this April, and that has to do with consolidation. As you've seen, we're reporting this quarter, and you'll find more about this in the report if you lead -- if you read the letter there. But we're very happy to announce then that we have taken the first steps to consolidate the OBN market. What effectively has happened here in the third quarter is that we have taken over seismic equipment, constituting around 10% of the vessel capacity of the OBN fleet. So that means that we have increased our own market share. We have increased our ability to outfit third-party vessels, that is vessels that we take in on flexible charters, while at the same time, we are effectively reducing the fleet. And in this quarter, we have around 10%. This is vessels that will now be exiting the fleet after we have taken over the equipment. So this way of consolidating the market is, in our view, a very intelligent way of consolidating it as it gives us both increased market position and increased potential for earnings, and it is in line with our strategy of -- it is in line with our asset-light strategy. That is we're trying to grow without spending -- without large CapEx spend on the CapEx heavy items, which is typically the vessels here. So we are very pleased to see this, and we are hopeful that we will be announcing consequences of this in terms of contracts going forward and then contracts that you -- on vessels that might not be in the fleet as we speak. So this is really the strategy, the asset-light strategy, the flexible charter strategy that we have talked about now for around 2 years. That has come into fruition somewhat with the borrowings that we reported, with the Veritas Viking that we took in and that we now see really gaining traction for the company. I think this is important not only for [Audio Gap] segment and profitability there going forward. And also on that note, I just want to connect a comment to the equity share that we made in -- late in June this year. And there's been a lot of questions then about the repair issue, naturally. Let me try to just briefly explain the dynamics here. So the repair issue is an issue that is being made available to the minority shareholders that did not have an opportunity to participate in the private placement that happened in late June. The private placement that happened at a large discount to the prevailing share price, and it was a large private placement there with around 20% of the shares. And it's then fair that this dilution is being compensated for the minority shareholders. Normally, such a repair issue would be canceled if the minority shareholders have the opportunity to buy shares in the market at the same price as the issue -- as the private placement happened at. In SeaBird's case, this has happened. So the share has been trading for a while around replacement price, has been very remarkably stable, actually, around NOK 4.5. But the repair issue then -- the reason for canceling the repair issue will be to avoid cost relating to prospectuses and other costs related to the repair issue. In our case, because of the size of the initial private placement, prospectus and that process would need to happen anyway and is happening anyway, i.e. there is an option for the minority shareholders that there is no reason to take away from them before the prospectus has been completed and we can take a decision on whether it makes sense economically for the shareholders to take away that option, okay? So to take away an option to buy shares for NOK 4.5 for the minority shareholders that could not participate in the private placement does not make any sense until we have to take that decision. And that decision is now coming up as the prospectus is about to be completed. So within the next -- we can guide that, within the next 4 weeks, we expect the prospectus to be completed. And before that, we will take the decision on whether the repair issue will take place or not. So again, just repeating, it has to do with an option for minority shareholders that it wouldn't make any sense to take away from them before its time or before its expiry. Okay. Let's move on to the summary then. As we said, we report -- we are reporting a net asset value of NOK 10.9 per share. We're introducing the net asset value as the key KPI for the company from here on. We have reported a key contract win for Fulmar for a 1-year firm duration OBN contract. We have outfitted Fulmar to a high-end OBN vessel, and that outfitting is now completed. All owned vessels have won contracts year-to-date, and we have taken the first steps in consolidating the OBN market. And as Gunnar touched upon in his -- in the market trends, the outlook is improving. Lastly then, why invest in Green Energy Group? What is the investment thesis here? Green Energy Group has a leading position in marine minerals on the Norwegian Continental Shelf. This is a new multibillion-dollar industry in the making. Green Energy Group offers investment in the minerals company that is aspiring to help unlock the most serious bottleneck threatening the advancement of the green energy transition, and that is the lack of resources, the lack of key battery metals needed for the green energy transition. And investments into this area needs to increase in order for the green energy transition to happen. Moreover, an investment in Green Energy Group is an investment in the strongest player in the only niche in the seismic industry that is benefiting from the change in spending from greenfield exploration to infield. An investment in Green Energy Group is an investment in an agile seismic company with an industry-leading and flexible cost base and a proven ability to cut costs early in downturns and to ramp early when markets improve. And I think we can say that both the downturn with the pandemic and the oil price last year and also the upturn we've seen this year that, indeed, the company has proved agile and an early mover to cut in the downturn and also to ramp in the upturn. And also the key contract wins that we've seen in 2021 improves the outlook for the company. Finally, an investment in GEG is an investment in a company that is capitalizing on entrepreneurial culture and spirit in combination with marine minerals and energy market know-how backed by 6,500 shareholders. Our ambitions is to do more with the foundation that we got here. And lastly, it is an investment in a return-focused business model with emphasis on capital efficiency and a lean organization. The consolidation taking place in the third quarter and the access to market share that we get through this is proof of this. And the company is managed by shareholders for the benefit of all shareholders. And with that, I think that concludes our prepared presentation, and we'll go over to the Q&A. Are there any questions, Erik, that has come in?

Yes. We have one question regarding Fulmar and the 1-year contract. It seems to be an unusual contract for SeaBird. I cannot remember having seen such length on a contract before. Is this because of the market tightening, the vessel being superior or SeaBird market position improving?

Yes. I think the answer is sort of all of the above, in a way. The market -- the risk, as we have seen from the market spend sides and the tender activity and from sort of the ongoing activity and service that are -- have been sanctioned and awarded, there is increased activity in the market. So -- and of course, that means increased demand for OBN/source vessel services. At the same time, the Fulmar, of course, it's a modern vessel. It's a high-capacity OBN/source vessel with a -- it's very efficient, and I think robust production platform with almost -- or I would say, unequal redundancy on the compressor capacity side. And finally, also, the 12-month contract is with a repeat customer. It's with a customer that we have built a -- and then we continue to build a relationship based on operational performance. So it's -- to summarize, it's the increased demand, it's the capacity of the Fulmar, and it's also the proven track record on operations that we have demonstrated.

Okay. The next question. In the future, do you see an improvement in contract rates and margins?

Yes, we do, at least based on the -- what we see, as I just mentioned, increased demand due to higher activity. But also, as we have mentioned -- as Stale mentioned, there has also been reduced supply of OBN/source vessels with several vessels exiting the OBN/source or the seismic segment completely. So the combination of these 2 factors should lead to increased day rates, and perhaps just as important, increased utilization as well going forward.

The next question is, will the lone 1-year contract for Fulmar reduce mobilization costs for the company?

Yes. And the reason of that is that we will see more continuity in operations. And when we don't have to -- and probably also know or less switching between regions, less switching of the [ pit ] equipment and so on. So it is a good basis for a, what you say, a more stable operation with less transaction costs or mobilization costs.

Okay. In a normalized year, how much can Fulmar contribute to EBITDA?

It's -- given day rates and depending a little bit on, of course, on how the costs, OpEx and so on, develops, we would expect around USD 6 million on an EBITDA level.

Can you say anything about day rates for the contract?

The day rates are on a -- what you say, it's reflecting the market, and it's also reflecting the fact that this is a long-term contract with more stable operation and continuity.

Okay. One more question regarding Fulmar. Has Fulmar left the dock? And when do you expect operation to start?

Fulmar is -- the outfitting is complete. Mobilization is ongoing, and the vessel is scheduled to depart Norway this weekend and commence the contract in November. The project was -- has been completed largely on time and on budget.

Okay. And then we have one question regarding consolidation. Good to see that you're already on it. What can we expect going forward?

I can try to comment on that. We have written a little bit about it in the report as well. It is -- I mean, it's hard to give a specific guidance in terms of the consolidation, but I think what we can say is that we think more the consolidation should happen in the industry. It is a very fragmented industry. The players in the industry are not very strong. And SeaBird has now created a strong platform to operate in the OBN market. We are pleased to see that with the deals that we have done, the consolidation that we've already done. But I would like to take this opportunity to urge all the players in the industry to think carefully about the outlook for the segment and one's own capabilities in this segment and to understand that the time to act to be part of a stronger player is now.

Okay. In Green Minerals, there has been a massive news flow during the first half and now very little. What is happening here?

Right. Yes, that's a good question. It's -- I touched upon it in the Green Minerals section. So it's a natural consequence of the first half being characterized of -- or characterized by the company setting up its partnership structure; the company being awarded a number of grants from Norwegian government; and also the company is signing key individuals, key hires then on the technical side. So now the technical team is fully up and running and executing on the agreements that have been set up and the news that was reported in the first half. And naturally, as a consequence, it's hard to repeat that news flow that was there in the first half. Of course, what one can point to, if you go to the Green Minerals' website, is the fact that on our partnership structure, no new partnerships were announced in the third quarter. And to the far right in that structure, you will see processing, where there is a to-be-named box. So no names -- name there yet. I think what I can say there is that the natural type of partners there, which will be, of course, terrestrial miners that would see the benefit of this super ore that can help improve their own profitability in terms of much weaker ore quality that they are processing now. They would really be the natural partners to put up there. Terrestrial miners seem to be a very conservative bunch. And the economics and the logic of teaming up and getting access to the super ore -- I mean we're talking about -- in copper, we're talking about ore grade of up to 14% versus less than 0.6% in new mines onshore, just to put this in perspective. And it has a large consequence for profitability of the finalized products as well as the environmental impact. So it makes a lot of sense to do this. And our own view is that this will happen. It just takes some time for the terrestrial miners to get their feet under the desk on this new type of mining. And when that happens, we are confident that you will see agreements also there. Or if not, what you actually might see is that, if you look at the battery -- the announcements about -- or from the battery producers starting production in our neighborhood, that is in Scandinavia and Northern Europe, you can see that there are a number of really large clients for the type of minerals that we are bringing up. And if the miners don't move, maybe the -- what you will see is that the final client actually steps up before them. So yes, that's that. Otherwise, we are -- as I said, technical team fully in place and executing on the announcements already made in the first half.

Okay. The next question is, do you need another placing shortly?

If we need another placing?

Yes.

No. We don't see that we need another placing. Just briefly commenting on the placing that was done, of course, a consequence of ramping up activity as quickly as we have done means somewhat of a capital need to make all this happen. In this industry, cost come first, and then you have revenues as you are executing on the contracts. So -- but as operations are balancing, and in particular with Fulmar starting to produce this, call it, imbalance in the company's working capital will change.

Yes. And then we have one final question, who is your CMO?

And I understand that a CMO is an acronym for Chief Marketing Officer. SeaBird, on what -- Green Energy Group, we don't have that position in our organization. When it comes to the seismic marketing or sort of the commercial work on the seismic side, that's headed by myself. And in the segments that we operate in, in the markets that we operate in, it's very much a sort of relationship with the customers through good and stable operations and technical performance. So that's a -- we have a marketing or a sales organization, but it's basically the marketing is done by the entire SeaBird organization through the daily operations of the vessels.

Okay. And then we have no further questions.

All right. Great. Well, I guess we will end the presentation there. And the rest of -- any questions on other, any other platforms that come in here and -- which I guess is not. So then, we'll end it there. Thank you very much, and we'll see you again next quarter. Thank you.