U.S. Markets closed

Edited Transcript of BWO.OL earnings conference call or presentation 23-May-19 7:00am GMT

Q1 2019 BW Offshore Ltd Earnings Presentation

Oslo Jun 6, 2019 (Thomson StreetEvents) -- Edited Transcript of BW Offshore Ltd earnings conference call or presentation Thursday, May 23, 2019 at 7:00:00am GMT

TEXT version of Transcript

================================================================================

Corporate Participants

================================================================================

* Carl Krogh Arnet

BW Offshore Limited - CEO & Director

* Knut Ruhaven Sæthre

BW Offshore Limited - CFO

================================================================================

Conference Call Participants

================================================================================

* Chr. Frederik H. Lunde

Carnegie Investment Bank AB, Research Division - Head of Research of Norway, Head of Energy & Utility, and Financial Analyst

* Morten Nystrøm

Arctic Securities AS, Research Division - Analyst

================================================================================

Presentation

--------------------------------------------------------------------------------

Carl Krogh Arnet, BW Offshore Limited - CEO & Director [1]

--------------------------------------------------------------------------------

Okay. I think we'll start. Welcome to this BW Offshore First Quarter 2019 Presentation. It's wonderful weather in Oslo today, and I guess that has induced many to take a stroll over here. So welcome.

So we have -- well, please note our disclaimer. We have some, well, I guess good news today to go through. Production on Dussafu averaged about 12,500 barrels per day in the first quarter, and we're very pleased with the performance of Dussafu. We also announced in the quarter the acquisition of -- or the signing of an agreement to acquire the Maromba field. And we have, today, some structural and organizational updates to make.

The EBITDA for the first quarter was $187 million, and we completed 2 liftings of 1.2 million barrels net to BW Energy. We also concluded the farm-in from GOC, the Gabon Oil Company that has been announced previously, and we had an extension of Cidade de São Vicente, and then we are pleased to announce that our new corporate debt facility was signed and finalized yesterday. HSE performance in the quarter was good and in line with our expectations, trending slightly down and that's what we want to see.

Fleet status. Fleet performance, another strong quarter. We are very close to 100% average uptime, and I might some -- further comments when I get to the units. The contractual overview is more or less, as you can expect, with the announced extensions. And then for some detail, Cidade de São Vicente was signed for 1 more year with Petrobras; and the same with Polvo, another year.

In Pioneer, Murphy has just taken over operatorship of the license and is looking at an extended field life, and we are negotiating for, well, what we hope will be commensurate extensions, eventually, but I'm sure this will happen in stages, as Murphy get to know their new asset.

Umuroa, our operator there, are looking at well enhancement and new wells program, and that may take the field life up to 3 years -- further 3 years extension. On Abo, we have this good old story of 1-year extensions, still very good oil production, and it may even continue a lot further, but I know the operator is also looking at replacements if they can find that to be economical.

Catcher. We had still very high production, 65,000 barrels. Premier is reporting that the field is performing extremely well. We say we have 100% uptime. But in fact, if you look at the commercial uptime, we have more than 100%, closer to 105%. But it would look a bit strange in the statistics, so we are just saying 100%, but we do have additional rate due to the increased production as we have told you about before.

Adolo. 12,500 and 100% uptime on the FPSO. We are just starting -- or we have started modifications to prepare for the Phase 2 Tortue development that I will give you some more granularity on later.

So on E&P, again, excellent HSE performance. Tortue produced 1.1 million barrels in the first quarter, with a 99% field uptime. This was an average of 12,500, as I've said. We still have no trace of water nor wax, for that matter. The most important being water, which is indicating a larger reservoir, to be quite blunt because we should have seen, according to our models, water in January, but we still haven't seen it. So every month, there's actually good news in that respect.

We have had 2 liftings. I think that may have surprised some of you. We are now posting according to sales methods, so liftings are irrelevant. We had 1 lifting in February, 650,000 barrels. We achieved the price of $59, and we had 1 lifting in March, 650,000 barrels again, with a price of $66.

We have now a production of about 12,000 barrels per day average in this quarter, and we are planning a lifting in May that will be a slightly larger lifting around 700,000 barrels.

The GOC transaction has closed. This means we now have Gabon Oil Company as our partner, and we are also pleased to announce that they paid their fee of $28 million, exactly on time, and they are now a fully fledged partner of the Dussafu license.

We still are talking to Tullow on their original state backing that they acquired. Their discussions are ongoing, and we have a slight, let's say, discrepancy on what we think is the correct price for this backing. So that's what's causing the delay, and they have are -- have still to come into the JOA.

On the production, we have increased our forecast for the year for the Tortue Phase 1. We are now looking more to the range of 3.9 million to 4.2 million barrels for the full year. That's our expectation. That's gross, of course.

And then we see also Phase 2, that we will start in 2020, and then the further phases as we hopefully discover more oil. And that's the objective of the Tortue Phase 2 first well that we are planning. We will start drilling in July. The first well will be in Hibiscus, and it's what is called Hibiscus updip. I'll just walk over and point to this. This is a previous discovery, based on 2D seismic, showed good traces of hydrocarbons. But in those days, they didn't see the bumps that we see today, and we believe the field is over here. So our first well is going to go into Hibiscus updip. And this is, of course, to prove up more reserves in the Ruche area. We do not think it will affect the Ruche development that we have already -- or that -- where we are working on an FID, based on the Ruche and Ruche North East, and it will more probably be a separate satellite if we should discover something. The next trace of the Tortue Phase 2 will be the 4 production wells that will go into the Tortue, so the rig will move back to the Tortue area and drill the 2 by 2 wells, and they will be tied back 2 by 2, so we will start production from the first cluster in Q1 2020.

The FPSO modifications have already started, and we are tracking very well on our budget of $275 million. This is including the FPSO modifications but excluding the exploration program. We have a second exploration well, and we have an option for 2 more. So based on the results of the first well, we will for sure drill one more, and we have options to drill a further 2 wells. And again, of course, I'm sure you understand that if we find more, we will continue to drill the full extent of what we have rig availability for.

Production costs are tracking very well. We have a production cost today of $20.8, as you can see, broken down in field, OpEx per barrel and FPSO. Tortue Phase 2 will, of course, lower the unit cost, and Ruche will further lower it, indicated in this graph.

Maromba acquisition. This is an area where BW Offshore has extensive operating experience. We have operated Polvo for a very long time, started with Devon, then BP and now PetroRio. We have operated on Peregrino for Statoil and Papa Terra for Petrobras.

Maromba is a discovery made by Petrobras and Chevron, hailed as a very big discovery back in the day. What we are looking at is the Maastrichtian sands and a phase development, similar to the one we have done on Dussafu. We believe in this way of developing new fields to reduce the risk and establish infrastructure and then go after, let's say, the more longer-term targets.

We believe in the region of 100 and -- to 150 million barrels potential recoverable reserves from the Maastrichtian sand. We believe this is a Jubarte analog and not Polvo and Papa Terra analog. Polvo and Papa Terra are carbonates and Maastrichtian sand is more like Jubarte, it's a sandstone reservoir. We believe that we have a good FPSO candidate for this job, so we will, of course, in due course, go to the market as well, but we believe we have a very good candidate internally as well.

We have managed to get quite good financing on this acquisition. We will pay $30 million at AMP approval of us as operator, $25 million when we start drilling and the rest -- the remaining when we have first oil. So we have a good -- let's say, this is a good way to finance the acquisition of the asset.

Then we have come to the finance section, and I'll leave that to Knut, as usual.

--------------------------------------------------------------------------------

Knut Ruhaven Sæthre, BW Offshore Limited - CFO [2]

--------------------------------------------------------------------------------

Good morning. We are very pleased with the results in this very first quarter of -- EBITDA of $186.8 million. You can see on the graph that EBITDA is trending well. We are at a run rate of above 100 -- sorry, run rate above $600 million for the year of 2019. The contributions are really good from both segments. FPSO was more or less -- FPSO segment was more or less on a fully uptime, which delivers good and stable results, and the EMP segment was extraordinarily good because of the 2 liftings that was mentioned.

So if you compare the 2 methods, the entitlement and the sales method, if we would have used the entitlement method based on production, we would have been about $15 million lower. But still, that's not where we are. We're using the sales method, and that's why the results are really good in the first quarter.

You can also see on the second graph that we're trending well on equity ratio, stood at close to 40% in the quarter. And net debt is also trending somewhat downwards, so that is very good. So to the income statement. The increase in revenues, again, mainly due to the E&P segment; EBITDA as well, as mentioned; depreciation, again, the same. It's higher depreciations because it's following the sales method, giving us an EBIT in the quarter of close to $83 million.

Net interest expense, more or less, in line. Financial instruments, we had some additional losses on our mark-to-market positions on interest rate swaps and currency hedges; however, not as big as in the third quarter. The interest rates continued somewhat downwards, and the dollar to the NOK appreciate a little bit.

So all in all, we had $8 million in losses, giving us a profit before tax in the quarter of $53 million and a net profit of close to $37 million.

The balance sheet is, in total, more or less the same. There is a -- as I said, equity is trending upwards. You can see here, there is an increase in that total current liabilities that is due to the loan facility, the corporate facility, which is due March, next year. That has now been transferred to current liabilities. But as we closed at our new corporate facility yesterday, that will be fixed for the next quarter.

Cash flow, again, a very good quarter. You can see here operating cash flow of $155 million. The investments in Dussafu in the field was about $17 million, $31 million in the more -- on the FPSO side where we are investing in Adolo for the Phase 2. We're also investing something in Abo and Espoir, and there are also some investments related to Catcher that was caught up within the quarter.

We raised some new debt or we're withdrawing on our corporate facility, and we had scheduled installments. So in total, debt installments, $152 million, and with net interest paid, we ended up with a cash position of $177 million. And liquidity is still good. Available liquidity, including the corporate facilities, that was at the end of the quarter, $371 million, and we are very pleased to have closed the new corporate facility. I'm coming back to that in a separate -- in the next slide. The amount is $672.5 million with an uncommitted accordion of $300 million that we can utilize for redeployments or extensions. The margin on this facility is unchanged of 225 basis points with a step up on utilization with another 25% if we exceed 50% utilization.

We are also working very hard on a new facility for the E&P segment, a reserve-based lending facility, so we are in final discussions with a few specialist banks on African financings, and we hope to close this facility now in the third quarter.

So in general, we have a very strong liquidity position. You can also see on the installment profile, we have included the new facility there. And then you can see now we had quite large installments in 2020, and now they have been pushed more out in time. And we'll also start to address the bond refinancings going forward.

So back to the new corporate facility. We had a very strong appetite. You can see the logos of the different banks participating, 16 banks in total. We had a very good interest. We managed to raise up to $1.1 billion, so it was 60% oversubscribed. So all the banks were scaled somewhat back. We are also very happy with that because then there is some liquidity that is preserved for new financings going forward. So again, quite attractive terms, and we're happy with that closing.

On the backlog, in total, we say that our backlog of the probable order book, where we look at all the different units and how long we think they will stay on in the different fields, it's about $6 billion on the FPSO side. And on the E&P segment, we're still using the old external estimates of Netherland, Sewell, the external auditor. We will have an update from Netherland, Sewell in late second quarter, maybe in June, for the Ruche reserves. So there will be an update there going forward.

So by that, that was my last slide. And I give it back to Carl.

--------------------------------------------------------------------------------

Carl Krogh Arnet, BW Offshore Limited - CEO & Director [3]

--------------------------------------------------------------------------------

Thank you. So outlook, well, with the higher oil price, we think the extensions will continue. We're quite comfortable with the fleet and the various operations that we service, so we think that will go on. We see good possibilities for upsides in that but very much a steady course ahead.

We do see some more investment in the offshore space, and we are still quite, let's say, selective in our bidding. We do not want to charge into some of these megaprojects. We have looked at them. We have concluded that we don't seek contractual terms that are, let's say, of the nature that we would like to accept.

But we do see some opportunities out there, and we are pursuing them. We have -- we definitely have the capacity and the interest to add to our fleet. We do, however, still see that the main focus of the company will be on redeployments, in particular, geared to field developments through this model we have of cooperation with what will become BW Energy, but I'll come back to that.

In terms of events, we do hope to very closely finalize our agreement with Petrobras around the Cidade de São Mateus contract. We are working on some extensions Abo, Umuroa and Pioneer. I still hope that, that will be concluded in the first half of '19.

Second half will be, as I've already told you, very much about Tortue and the drilling campaign and the tieback of these new clusters to the Adolo. We also work on Petróleo Nautipa extensions in the second half; and of course, Ruche FID is going full steam ahead; and we're continuing to work on the Kudu license. We are looking there to take a larger share and take over most of the interest, hopefully, of NAMCOR.

So to a new thing, structural and organizational change. BW Offshore and BW Group have decided to organize the E&P activities into a new stand-alone entity, BW Energy, and it's going to be set up for what we think will be very exciting growth in a very exciting market undergoing change. This will be, of course, very much based on a closed corporation and synergies with BW Offshore.

I think it's very clear to the audience that the unique experience of BW Offshore in most, let's say, offshore operating theaters around the world. Having been involved in more than 40 FPSO projects through the years in all major markets is unique, and we have a lot of experience operating, not as E&P, but as operator of these fields on behalf of the oil companies. But still, we do have a lot of competence.

And taking that competence and existing units, we think is a very good way to unlock stranded fields left behind by other oil companies through our phased approach of development. So we plan to launch this in 2019. The idea is to IPO this special or stand-alone vehicle. We will, of course, look to invest in new fields. We are also going to look at brownfield potential that we see coming in some of the markets we have been involved.

The company, as I said, will continue to work very closely with BW Offshore and have access to BW Offshore operating competence. We have developed a very strong internal competence in BW Energy, mainly residing in our Houston office, focusing on the subsurface, the drilling and, of course, the SURF parts of the business.

So we, today, have full capacity within the organization to do field developments, and I think we have proven that on Dussafu with our development from, let's say, we signed in April until we had first oil of 18 months.

We are, as a result of this, also announcing some organizational changes to the BW Offshore organization. Knut Sæthre and myself have been asked by the Board to take charge of BW Energy, so we will then step down first of -- or 30th of June, and take up our new positions 1st of July. We are, of course, very pleased that the Board found our replacements inside the company. And we have here the new team that will steer BW Offshore, and I'm pleased to present Marco Beenen. You can stand up. He's our current COO, and he's been with BW Offshore since 2012.

The new CFO will be Ståle Andreassen. He's currently SVP, Finance, works very closely with Knut, of course, and is a big part of the finance team. And he's been with BW Offshore since 2008. We have also some updates on Board. We have named a new -- or a Board of Directors of BW Energy in preparation for making this a stand-alone company. And you see here, this Board will be headed by Andreas Sohmen-Pao as the Chairman. And we will have 2 Directors that are, of course, related to the company. This is Marco Beenen and myself, and then we have 2 independent Directors, Mr. Russ Scheirman and Tormod Vold. Russ, he is a former COO of VAALCO, and Mr. Vold is Shell Gabon employee, former Director of Shell in Gabon.

We also have some new updates on the BW Offshore Board of Directors. Thomas Anderson is stepping down, and has -- there has been some replacements. The new members of the board are René Kofod-Olsen from Topaz and myself will also be serving as a Director of the BW Offshore Board.

So that's the updates. We have then come to the Q&A. And please state your name and affiliation. First question?

================================================================================

Questions and Answers

--------------------------------------------------------------------------------

Morten Nystrøm, Arctic Securities AS, Research Division - Analyst [1]

--------------------------------------------------------------------------------

It's Morten from Arctic. If you could share some comments on why you have decided to drill the Hibiscus prospect first, with respect to, let's say, the potential? And also, when should we expect results from that exploration well?

--------------------------------------------------------------------------------

Carl Krogh Arnet, BW Offshore Limited - CEO & Director [2]

--------------------------------------------------------------------------------

The Hibiscus updip, as we now call it, is based on updated 3D seismic that was shot by Harvest. And of course, we are in the process of recalculating all the seismic based on the new wells we have drilled.

But I pointed out, there was a previous discovery. It was not deemed commercial because of the [column] but we now have a different view on how these bumps are looking and what the bumps should look like. So we are drilling into an area where we have, let's say, very high expectations of finding more oil and, hopefully, then commercial oil.

--------------------------------------------------------------------------------

Morten Nystrøm, Arctic Securities AS, Research Division - Analyst [3]

--------------------------------------------------------------------------------

And then the potential in terms of reserves? And also when could we expect the result of that exploration well?

--------------------------------------------------------------------------------

Carl Krogh Arnet, BW Offshore Limited - CEO & Director [4]

--------------------------------------------------------------------------------

We could expect to see the first results in, let's say, end of July, early August, we will know what we find.

--------------------------------------------------------------------------------

Knut Ruhaven Sæthre, BW Offshore Limited - CFO [5]

--------------------------------------------------------------------------------

And we'll come back to the results.

--------------------------------------------------------------------------------

Morten Nystrøm, Arctic Securities AS, Research Division - Analyst [6]

--------------------------------------------------------------------------------

Second question is related to the Maromba field. I guess you have publicly stated that you're looking to [farm] down end of Q1 2020 or something when you have delivered FID. I was just wondering, have you received, let's say, interest from the E&P industry regarding farming into this field?

--------------------------------------------------------------------------------

Carl Krogh Arnet, BW Offshore Limited - CEO & Director [7]

--------------------------------------------------------------------------------

We have not announced any interest to farm down.

--------------------------------------------------------------------------------

Morten Nystrøm, Arctic Securities AS, Research Division - Analyst [8]

--------------------------------------------------------------------------------

But is it fair to say, you have received interest from other E&P companies that want to farm into the field?

--------------------------------------------------------------------------------

Carl Krogh Arnet, BW Offshore Limited - CEO & Director [9]

--------------------------------------------------------------------------------

Yes, we have. But we have announced no interest or program to farm down.

--------------------------------------------------------------------------------

Unidentified Analyst, [10]

--------------------------------------------------------------------------------

(inaudible). Looking at Maromba field, your plans probably to use Berge level, which is 60,000 barrels per day capacity FPSO. You've indicated a reserve into level 100 million, 150 million barrels. What kind of hypothesis do you have around production volumes coming out of Maromba? Can you give some sort of a (inaudible)?

--------------------------------------------------------------------------------

Carl Krogh Arnet, BW Offshore Limited - CEO & Director [11]

--------------------------------------------------------------------------------

It's a bit early days. It's a bit early days for that. But we are -- well, we are currently looking at various ways of unlocking this oilfield. And Berge Helene, he's one of the candidates. Yes. But we also have other candidates, so we haven't made a final choice.

We are going to look at, of course, the most cost-optimal way to do it. We'll come back on that and our expectations. We are very -- the first hurdle we need to pass is the ANP approval. We have good initial contact with ANP. We believe we will get this approval and proceed, and then we will be able to also progress more on our FID effort and come back on an -- with an update on that later.

--------------------------------------------------------------------------------

Unidentified Analyst, [12]

--------------------------------------------------------------------------------

Okay. And just a follow-up, it's related to Dussafu and the lack of -- or no water in the production. You mentioned that this has some significance for the reserve potential or the ability to drain the reservoir. Could you give us a little bit more flavor on that?

--------------------------------------------------------------------------------

Carl Krogh Arnet, BW Offshore Limited - CEO & Director [13]

--------------------------------------------------------------------------------

Well, this is obviously not an exact science. But the fact that we are not getting water means we have a very high degree of probability that the -- just the size of the reservoir is a bit bigger. We're draining from a bigger area; otherwise, the water should have started to come in, and it isn't, which is good. So -- and the pressures we see are very stable, again, indicating that we're draining from a larger area than we initially thought.

The trick with seismic and drilling is, of course, to understand exactly where these layers are. And this is large areas, so if you are a few meters wrong, then it has a big impact on the size, of course.

--------------------------------------------------------------------------------

Knut Ruhaven Sæthre, BW Offshore Limited - CFO [14]

--------------------------------------------------------------------------------

And just to add, we have announced this morning that we are in the process of preparing a separate listing, and there will be an investor presentation, and we'll invite to that in due course and give more details about Dussafu and also Maromba.

--------------------------------------------------------------------------------

Morten Nystrøm, Arctic Securities AS, Research Division - Analyst [15]

--------------------------------------------------------------------------------

Morten from Arctic, again. Just curiosity, over the last 3 months, you have raised your production on the Tortue Phase 1, 2 times over the last 3 months. And still, you are -- not changed any of the production guidance for Phase 2. Just looking at what you're saying about 4 production wells and that those 4 production wells will only, let's say, double the production could appear on the conservative side. Are you able to share any thoughts on that? Or is it just too early to make any statement on firm production on Phase 2?

--------------------------------------------------------------------------------

Carl Krogh Arnet, BW Offshore Limited - CEO & Director [16]

--------------------------------------------------------------------------------

I think we like to under promise and over deliver as a general principle. But I think when you drill more wells in, it is to get the oil out. But you will see some -- due to closeness of wells, the more wells you put in, you will see less production from each incremental well you put in. That's just a given. But with the indications that the reservoir is larger, of course, we do hope that our reserve estimates will go up in due course.

And we do, of course -- the main difference between our estimates, internal estimates, and the Netherland, Sewell estimates that Knut mentioned is the recovery. They have a much lower recovery than we think is possible. We think we will get close to a ton because we see more similarities with that, and they are at 50 and going. Netherland, Sewell is more like in the 30s, and that's the main difference.

--------------------------------------------------------------------------------

Knut Ruhaven Sæthre, BW Offshore Limited - CFO [17]

--------------------------------------------------------------------------------

We got a question, just here.

--------------------------------------------------------------------------------

Chr. Frederik H. Lunde, Carnegie Investment Bank AB, Research Division - Head of Research of Norway, Head of Energy & Utility, and Financial Analyst [18]

--------------------------------------------------------------------------------

Frederik Lunde from Carnegie. Just a question on timing and [predization]. Do you expect 2 liftings in Q3? And when do you expect government take?

--------------------------------------------------------------------------------

Carl Krogh Arnet, BW Offshore Limited - CEO & Director [19]

--------------------------------------------------------------------------------

In Q3.

--------------------------------------------------------------------------------

Chr. Frederik H. Lunde, Carnegie Investment Bank AB, Research Division - Head of Research of Norway, Head of Energy & Utility, and Financial Analyst [20]

--------------------------------------------------------------------------------

[First the] government take or...

--------------------------------------------------------------------------------

Knut Ruhaven Sæthre, BW Offshore Limited - CFO [21]

--------------------------------------------------------------------------------

That's the government, and one lifting for us in Q2.

--------------------------------------------------------------------------------

Chr. Frederik H. Lunde, Carnegie Investment Bank AB, Research Division - Head of Research of Norway, Head of Energy & Utility, and Financial Analyst [22]

--------------------------------------------------------------------------------

Yes. But in Q3, how many liftings do you expect?

--------------------------------------------------------------------------------

Knut Ruhaven Sæthre, BW Offshore Limited - CFO [23]

--------------------------------------------------------------------------------

One government lifting.

--------------------------------------------------------------------------------

Chr. Frederik H. Lunde, Carnegie Investment Bank AB, Research Division - Head of Research of Norway, Head of Energy & Utility, and Financial Analyst [24]

--------------------------------------------------------------------------------

And from your side?

--------------------------------------------------------------------------------

Knut Ruhaven Sæthre, BW Offshore Limited - CFO [25]

--------------------------------------------------------------------------------

One now in Q2.

--------------------------------------------------------------------------------

Chr. Frederik H. Lunde, Carnegie Investment Bank AB, Research Division - Head of Research of Norway, Head of Energy & Utility, and Financial Analyst [26]

--------------------------------------------------------------------------------

And in Q3?

--------------------------------------------------------------------------------

Knut Ruhaven Sæthre, BW Offshore Limited - CFO [27]

--------------------------------------------------------------------------------

None.

--------------------------------------------------------------------------------

Chr. Frederik H. Lunde, Carnegie Investment Bank AB, Research Division - Head of Research of Norway, Head of Energy & Utility, and Financial Analyst [28]

--------------------------------------------------------------------------------

None on your side?

--------------------------------------------------------------------------------

Knut Ruhaven Sæthre, BW Offshore Limited - CFO [29]

--------------------------------------------------------------------------------

No.

--------------------------------------------------------------------------------

Chr. Frederik H. Lunde, Carnegie Investment Bank AB, Research Division - Head of Research of Norway, Head of Energy & Utility, and Financial Analyst [30]

--------------------------------------------------------------------------------

But 2 liftings for BW Energy In Q3?

--------------------------------------------------------------------------------

Knut Ruhaven Sæthre, BW Offshore Limited - CFO [31]

--------------------------------------------------------------------------------

No.

--------------------------------------------------------------------------------

Chr. Frederik H. Lunde, Carnegie Investment Bank AB, Research Division - Head of Research of Norway, Head of Energy & Utility, and Financial Analyst [32]

--------------------------------------------------------------------------------

No?

--------------------------------------------------------------------------------

Knut Ruhaven Sæthre, BW Offshore Limited - CFO [33]

--------------------------------------------------------------------------------

One lifting for...

--------------------------------------------------------------------------------

Carl Krogh Arnet, BW Offshore Limited - CEO & Director [34]

--------------------------------------------------------------------------------

Government.

--------------------------------------------------------------------------------

Knut Ruhaven Sæthre, BW Offshore Limited - CFO [35]

--------------------------------------------------------------------------------

BW Energy in Q2, and one for the government in Q3.

--------------------------------------------------------------------------------

Carl Krogh Arnet, BW Offshore Limited - CEO & Director [36]

--------------------------------------------------------------------------------

Okay. Any further questions?

Okay, thank you so much for attending.