Teekay Offshore Partners' (TOO) CEO Ingvild Sæther on Q4 2016 Results - Earnings Call Transcript

Teekay Offshore Partners L.P. (NYSE:TOO) Q4 2016 Earnings Conference Call February 23, 2017 12:00 PM ET

Executives

Ryan Hamilton - IR

Ingvild Sæther - Teekay Offshore Group's President & Chief Executive Officer

David Wong - Teekay Offshore Group's CFO

Kenneth Hvid - Teekay Corporation's President & CEO

Vince Lok - Teekay Corporation's CFO

Analysts

Michael Webber - Wells Fargo

Spiro Dounis - UBS Security

Fotis Giannakoulis - Morgan Stanley

Espen Landmark - Fearnley

Ben Brownlow - Raymond James

Operator

Welcome to Teekay Offshore Partner's Fourth Quarter 2016 Earnings Results Conference Call. During the call, all participants will be in a listen-only mode. Afterwards you will be invited to participate in a question-and-answer session. [Operator Instructions] As a reminder this call is being recorded.

Now for opening remarks and introductions I would like to turn the call over to Ingvild Sæther, Teekay Offshore Group's President and Chief Executive Officer. Please go ahead.

Ryan Hamilton

Before Ms. Sæther begins, I would like to direct all participants to our website at www.teekayoffshore.com, where you will find a copy of the fourth quarter of 2016 earnings presentation. Ms. Sæther will review this presentation during today's conference call.

Please allow me to remind you that our discussion today contains forward-looking statements. Actual results may differ materially from results projected by those forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the fourth quarter 2016 earnings release and earnings presentation available on our website.

I will now turn the call over to Ms. Sæther to begin.

Ingvild Sæther

Thank you, Ryan. Hello, everyone, and thank you for joining us on our Fourth Quarter 2016 Investor Conference Call. I'm joined today by David Wong, the CFO at Teekay Offshore Group; as well as Kenneth Hvid, Teekay Corporation's President and CEO; and Vince Lok, Teekay Corporation's CFO. During our call today, I will be walking through the earnings presentation which can be found on our website.

Turning to Slide 3 of the presentation. I will briefly review some of Teekay Offshore's recent highlights. In the fourth quarter of 2016, the partnership generated the distributable cash flow or DCF of $21.6 million, resulting in a full-year DCF of $161.3 million. On a per unit basis, the partnership generated DCF of $0.15 per unit for the fourth quarter and $1.28 per unit for fiscal 2016. The partnership generated cash flow from vessel operations or CFVO of $135 million and $584 million in the fourth quarter and fiscal 2016 respectively.

Although we had anticipated better results in Q4, some key factors negatively impacted our results including a temporary suspension of operations for the Arendal Spirit UMS, which I will discuss further in the moment and higher operating cost in the shuttle fleets mainly to further upgrade the Naviod Anglia portrayed in the North Sea, off to returning her from a charter in Brazil earlier this year.

While Q4 was a challenging quarter, we have made good progress on initiatives to further reduce cost from our operations. In early January, we completed the sale of the 1995-built shuttle tanker Navion Europa for net proceeds of approximately $40 million and recorded a gain of approximately $7 million.

I'm also pleased to report that after having secured a three-year CoA contract for the Glen Lyon project in September 2016, we are now close to finalizing in new five-year plus extension option shuttle tank a contract of affreightment in the North Sea. This CoA is expected to commence during the first quarter of 2018 and because the contract will be serviced by the partnership's existing CoA shuttle tanker fleet, it will further increase our fleet utilization and enhance the partnership's cash flow without the need for incremental capital expenditures. We are encouraged by the continued strong fundamental in our shuttle tanker business where we are a market leader.

Turning to Slide 4, the shuttle tanker market continues to tighten with both charter rates and utilization increasing driven by strong underlying fundamentals. You can see this in the graph on the right side of the slide which compares North Sea shuttle tanker contract of affreightment or CoA rates, with North Sea anchor handler rates [ph]. All rates in other offshore services have weakened due to the low oil price environment and reduced ENP spending.

Shuttle tanker rates have been increasing due to both demand and supply factors. Demand for shuttle tanker capacity has continued to grow due to a combination of more listing points and newbuilds coming on stream. And at the same time, the supply of available shuttle tanker capacity fleet continues to strength with no uncommitted new buildings and order and an aging global fleet that will see several investors' retirement before the year 2020.

As a result, North Sea shuttle tanker CoA rates have increased by approximately 40% over the last two years, given the limited available capacity in the shuttle tanker markets, which Teekay Offshore has benefited from.

Turning to Slide 5, as noted in my opening remarks, we continue to work hard at reducing cost. In a shuttle tanker business, we have seen a steady decline in our North Sea shuttle tanker operating expenses since 2008 primarily driven by a shift in our manning model to employ more ratings and officer from the Philippines as well as a strong focus on reducing our supply chain cost.

Through our 2016, our FPSO business underwent a significant initiative to reduce operating expenses, which resulted in reduced supply chain cost and changes on board our FPSOs to reduce crude cost. During 2016, the partnership also took measure to reduce costs in its onshore organization. Through these initiatives, we have reduced our onshore headcount by approximately 75 employees which will result in run rate G&A savings in future quarters.

Turning to Slide 6, I would like to update you on the status of the Arendal Spirit UMS. In November 2016, the Arendal Spirit UMS experienced an operational incident related to its dynamic positioning system. We also had an April 2016 incident which resulted in the replacement of the unit's gangway. Following the DP incident, the charterer Petrobras initiated an operational review. While the operational review is underway, Petrobras has to spend the charter high payments to the partnership. Throughout this period, we have maintained an ongoing dialog with Petrobras and our main priority is to address their concerns and return the unit to full operation as soon as possible.

Turning to Slide 7. We continue to push forward to deliver on our pipeline on our committed growth project. This is a slide we have shown you in previous quarters, updated to reflect the latest remaining CapEx and financing figures as of December 31, 2016. As a reminder, once all of these projects have delivered, they are projected to contribute an additional $200 million per year of run rate CFVO. Over the next several slides, I will provide a brief update on each of these projects.

Turning to Slide 8. As noted during our third quarter earnings in November 2016, the Petrojarl I FPSO upgrade project has experienced delay – an additional cost – and is now scheduled to be on the field in late 2017. The main causes for delay include a more challenging top side upgrade than originally anticipated; a condition of the units following a cold layer prior to the project and scope changes. Despite these setbacks, progress is being made on the units which is now approximately 85% complete and we continue to increase resources at the yard to ensure work continues to progress according to the revised delivery schedule.

We have been in close dialog with the charterer QGEP [ph], and are close to reaching a commercial agreement on a revised delivery date. Given the commercial sensitivity of these negotiations, I can't provide additional details at the moment, but I look forward to offsetting you further once these negotiations have concluded.

Turning to Slide 9; progress on Gina Korg FSO conversion project, continues and as of today, the unit is approximately 98% complete. We have experienced a slight delay in the project as we come down the home stretch. However, we expect to commence the charter within mid-2017. The converted FSO unit [indiscernible] is expected to have a fully-built up cost of approximately $280 million. The unit will operate under a three-year term period contract, plus 12 additional one year extension auctions on the Gina Korg field in the in the North Sea.

Turning to Slide 10. The Libra FSO conversion project at the Jurong shipyard in Singapore remains on schedule and was 98% complete as of the end of January 2017. As you can see in the naming ceremony photo at the bottom right of this slide, we were very close to sail away. This has been a well-run project for Teekay Offshore and our joint venture partner, and we remain on-track to complete the project both on schedule and within the project's $1 billion budget.

This unit is expected to achieve first oil by Q3 2017 and we will operate on the Libra field [indiscernible] offshore per sale under 12-year charter for a consortium of oil major as shown at the bottom of the slide.

Turning to Slide 11; our three East Coast Canada shuttle tanker newbuildings are also on schedule and on budget. Construction on all three vessels has commenced with the first vessel now 65% complete and construction on the third vessel just under way. You can see on the total at the top right of this slide, one of the massive whole sections being lowered into place at the Samsung yard in Korea. These three vessels which have a total cost of approximately $375 million are scheduled to deliver during the second half of 2017 and first half of 2018. They will replace two end charters and one owned vessel, currently servicing this 15-year plus extension options, contract with the consortium of nine oil companies. The vessels are fully financed with a $250 million long-term debt facility secured in June 2016.

Turning to Slide 12; I will conclude the review of our projects with an offset on our towage newbuildings. Our towage business ALP currently has a fleet of 10 long-haul towage vessels consisting of seven underwater vessels and three remaining newbuilding vessels which are scheduled to deliver during 2017. The ALP phase is the most technologically advanced and youngest towage fleet in the market and we will be the only owner of 300 tons volatile vessels capable of the largest FPSO and FLNG tows.

In January 2017, we completed a successful tow of the Kraken FPSO from the Keppel yard in Singapore to the Kraken oil field in the UK sector of the North Sea, which you can see in the photo at the bottom of the slide. Although the long-haul towage market currently remains challenging. We have been maintaining fleet utilization by booking short-term contracts, which include drilling rig repositionings and scrapping, mooring and hook-up installations and ad-hoc emergency tows.

Turning to Slide 13. I would like to wrap up my first quarterly conference call by reviewing our top priorities for 2017. Foremost, we will remain focused on striving for high standards for safety and operational excellence. There is compromise here. This is what our customers expect from Teekay Offshore and this is vital both for retaining their trust and winning new business.

Teekay Offshore has 53 underwater assets of which 50 are on contract. Unlike many others in the offshore sector, our assets are producing cash flow. Although we have done a lot, I still see a great opportunity for us to continue to improve both our operations and bottom line performance through better decision-making at every level of the organization.

Second, as highlighted by the time on today's call devoted to our committed growth projects during 2017, we will be keenly focused on execution and delivering these projects for contract start up. Some of these projects are more challenging than others, but delivering on all of these projects will be essential for growing the partnership's operating cash flow.

Third, we have three FPSO charters which are coming up for renewal in 2018 and 2019, which we're working diligently to extend or secure new contracts. Extending these cash flow is a top priority and we are in active discussions with all of the current quarters. I hope to be able to provide further updates on these efforts in the coming quarters.

Fourth, as we mentioned previously, we also plan to focus on optimizing our asset portfolio which may include certain asset sales and/or seeking joint venture partners. This will help further strengthening our balance sheet and liquidity position. In this phase of a challenging offshore market, we remain focused on strengthening Teekay Offshore's financial position and financial flexibility so that we can take advantage of opportunities as the offshore markets recovers.

Thank you, all, for listening. Operator, we are now available to take questions.

Question-and-Answer Session

Operator

Thank you. [Operator Instructions] At this time, we'll go first to Michael Webber with Wells Fargo.

Michael Webber

Hey, good morning, guys. How are you?

Ingvild Sæther

Good. Thank you.

Michael Webber

Good. Ingvild, congrats on your first call and it's good to be speaking with you again this morning. I wanted to start off with actually some business to get done at the parent level, some FPSO, FPSO extension. It looks like an amendment to the best but the implications for the FPSO space for the relet market for TOO's assets, it seems like they're in place. It was a nice surprise. I'm just curious, how should we think about the rechartering, the relet market, or the employment outlook for assets like the Voyager in a few years? Has it changed significantly? And I guess what are the successful extension in amendments to the parent level say about the assets of TOO and the FPSO market in general?

Ingvild Sæther

Yes. I guess you would be hearing more about the Teekay FPSOs on the call tomorrow. But generally, we can say that the psychology of the market is different when the oil price is around $55 region than last year when it was around $30. It's obviously the focus of our customers to extract as much value as they can out of the field that we are on and that's a combination of how much oil we are producing, the oil price and the cost of the fuel. So we are working very closely with all the customers on the [indiscernible] contract will come off contract the next year to find the sweet spot where they can extract maximum value out of the field.

Michael Webber

Got you. That's helpful. You mentioned in your prepared remarks and the release as well, there's kind of an ongoing opportunity set within the shuttle tanker market. Can you talk to how deep you think that is? How much of an opportunity are there on a dollar basis or in terms of number of assets you really see out there for TOO for the next couple of years? It's been a bit surprising that you guys have been able to steadily add business specially over the past two years in this environment.

Ingvild Sæther

Yes. There are two markets in the shuttle tanker business – one is the time charter market where you are a charter for longer periods of time and the other one is the CoA market where the customers take at heart a fraction of a vessel. So more like it's actually service. And those are quite different. We know that there's a lot of vessels that will retire in the next two to three years in the North Sea. That will provide opportunities both for the time charter market where we see [indiscernible] is out with requirement for vessels right now and also for the CoA market. What's special about the COA market is that you have to have a combination of contracts and vessels to make it work. You need to have a certain size and that makes it more difficult to start from scratch to build up a position in this market.

Michael Webber

Got you. All right, that's helpful. A couple more and I'll turn it over. I do want to touch on the Arendal Spirit second issue there. I know it's under operational review. You probably can't get into too many details about the outcome, but I'm curious, what options does Petrobras have legally within the operational review? I guess what's the spectrum of outcomes here? They can pursue once that operational review is triggered. Can they renegotiate the contract? Can they walk away from it? Do we even kind of set the landscape for us maybe without getting into specifics about how the actual outcome and the booking like?

Ingvild Sæther

I was on Brazil three weeks ago and that's what relevant people in Petrobras and the focus is for them to complete the operational review; and for us it's to provide them with the information they need to complete that operational review and to get the unit back in total operation.

Michael Webber

Got you. But does going into operational review trigger any potential rights for Petrobras within the contract that investors should be aware of in terms of spectrum of outcome?

Ingvild Sæther

No. Our focus is really just to get the Petrobras comfortable with the operation and the safety of the unit and I think that is the focus of Petrobras as well. So, it is an operational review.

Michael Webber

Okay. Like in the follow up before. One more and I'll turn it over. The Gina Krog and I might have missed this – did you guys give a reason for the slight delay there and is there any incoming adjustment to the charter contract or anything along those lines for the delay? I'm not entirely sure what the rational is behind it.

Ingvild Sæther

We are working hard to complete the final stage of the project down in Singapore and have a focus on getting that completed. It's just taking a bit longer time at the home stretch of the project here. We have a very good and open dialog with charter and we expect that there won't be any...

Michael Webber

No changes to the charter?

Ingvild Sæther

No.

Michael Webber

Okay. That's helpful. I'll turn it over, but thanks for the time.

Ingvild Sæther

Thank you.

Operator

We'll go next to Spiro Dounis with UBS Security.

Spiro Dounis

Thanks, Ingvild. I just wanted to start off on the Varg. Sorry if I missed any update there. But just wondering if you could update us, just around timing of when you think that you could get rechartered and maybe what the cost parameters could be if it does actually need being worked on to a new field. I think historically, you guys have given a range anywhere between 2018 and 2020. is that still the case? Or have you been able to refine that at all?

Ingvild Sæther

For Varg, we have been working and we are working on several opportunities. One of the opportunities we worked on was the winter [ph] that announced a couple of weeks ago that they will go with the tie back option. So we are now working on one specific project but we also see that there are still other inbound requirements for this unit. And as we know, it's a quite flexible unit that has -- meet the Norsok [ph] requirement. We are quite confident that we will find work for and I think the time line is same as what we said last quarter.

Spiro Dounis

Okay, that's helpful. And just as we think about the EBITDA uplift, I guess from these new shuttle tanker, the new CoAs that you signed, I was wondering if you could provide a number on that and maybe just had to think about how many shuttle tankers do you have right now that you feel are under-utilized and what are the uplifts that we can expect there for the ones that go into that CoA?

Ingvild Sæther

It will really be to optimize the fleet and get the maximum utilization out of the fleet that we have and we are basically sold out for 2017 and we are getting a good utilizationals for 2018. What we will look at is how can we optimize the fleets even more to get more utilization out of it. So for instance, if some of the peers require storage to set the water for 10 days, can we free up some of the shuttle capacity by using ordinary tanker and then get some more utilization out on our fleet. Those are the things we are looking after to really get the maximum benefit out of our shuttle fleet the next couple of years.

Spiro Dounis

Got it. And then last one for me, just around funding projects and repaying debt over the next two years. Could you just maybe walk us through some of the big sources and uses of cash as we think about that going forward? From a vessel sale perspective or a sale lease back perspective, do you feel like you've done everything you can there? Could we expect more of that down the road? Thanks.

Ingvild Sæther

Yes. I will redirect that question to Vince.

Vince Lok

Sure. As Ingvild mentioned and as what we mentioned last year, we've always contemplated further strengthening of TOO's balance sheet by I guess what we call it asset portfolio optimization, which is really looking at some asset sales and bringing some joint venture partners as we've done a little bit in TOO, but for more extensively in TGP. And that gives us additional source of capital as well to not only delever our balance sheet, but also provide another source of growth capital going forward. In terms of the major uses of capital, of course it's really to fund the equity portion of our remaining CapEx program. We have all the debt facilities in place, but there is some remaining equity that's still needed to fund those and we can use a lot of the existing liquidity to fund that, of course. But as you know, we do have some bond maturities that are coming up in late 2018, particularly these two knock [ph] bonds at the end of 2018. They do have a requirement that requires us to issue equity to offset any dividend. So it would be nice to start chipping away at some of those maturities and sort of remove the diluted effect of those bonds. So that's another thing we're considering as we're looking at asset sales.

Spiro Dounis

Got it. Really appreciate that color. Thanks, everyone.

Operator

And we'll go next to Fotis Giannakoulis with Morgan Stanley.

Fotis Giannakoulis

Yes. Hi, gentlemen. I would like to ask you about your FPSOs and if you can give us an update on each of the field that they operate. I'm talking about the ones that are coming out of contracts in 2018 and 2019. Which of these they could extend at the same field and which of these are you seeing that will also find new employment of some different fields?

Ingvild Sæther

Yes. On our first unit, the Ostras has a term period until January 2018. And this unit has operated a number of different fields as an early well-test unit and as far as we can see, this is a prudent and successful approach to the field development where Teekay Offshore is able to generate a meaningful cash flow for the customer. As I said I was down in Brazil only a couple of weeks ago and Petrobras seemed to be prepared to start discussion on how they can use the unit on further fields. On the Voyager Spirit, that has a firm period up to April 2018. It's currently operating on the Huntington Field producing approximately 10,500 barrels per day, resulting in an average cost per barrel of about $30, which is of course well below the current oil price -- well below, sorry, the current oil price of $55, $56.

So this is a modern unit with gas compression that could potentially produce other fields on the UK side. We are in active dialog with Premier regarding a take of extension, which we will intensify as we get further into 2017. And in addition, since this unit doesn't have an extension option, we are also actively marketing the unit to new customers. And lastly, the Panama [ph] Spirit has a firm period to February 2019. We are still early days, we expect to continue constructive dialog with Petrobras as we get closer to 2019 and get a better sense of the remaining field life.

Fotis Giannakoulis

And regarding the Pirnem [ph] and the Voyager that you are in discussion for mobilizing to different fields; do you have any estimate of what would be the incremental CapEx of any potential mobilization at a different field?

Ingvild Sæther

No, that would be very dependent on which field it will be relocated to but remember, the Panama [ph] Spirit is operating until 2019 and Petrobras have a number of extension options on that going out into 2020. So it's a bit early to talk about that.

Fotis Giannakoulis

Okay, thank you. And one last question, can you remind us how much of that you have at your balance that is guaranteed by you and how much by the patent?

Ingvild Sæther

Yes, so I will redirect that question to Vince again.

Vince Lok

Hey, Fotis. There is some shuttle tanker debt that is guaranteed by the parent relating to what we call the Explorer class shuttle tankers. That debt is amortizing as we speak and just off the top of my head, I think that's the majority of the debt that's guaranteed by the parent and the rest is really TOO. There are some guarantees of certain swaps, but most of those guarantees would expire in early 2019.

Fotis Giannakoulis

Thank you very much, Vince. Thank you both of you.

Operator

We'll go next to Espen Landmark with Fearnley.

Espen Landmark

Hi, guys. Just following up on Fotis, really. Within the FPSO space, some of your peers seems to be very proactive in terms of taking direct ownership in the upstream projects to kind of facilitate redeployment and I guess do you see some similar trends within now and both on the regas and the liquefaction? I'm just curious to see if that's something that the Teekay Group would consider at some point if it's necessary?

Ingvild Sæther

So we are of course always watching keenly what our competitors do and look at different business models. I think our focus in the near term is to keep the units we have on the existing fields and we are discussing with the customers more along the traditional business model to do that. I don't...

Kenneth Hvid

Yes, it's Kenneth here. Obviously, we're following the same trend with interest as you were saying and rightfully so. There's a lot of change that has happened to the industry over the last couple of years where we've seen small or medium sized players, which haven't been quite as capital strong today as they were a couple of years ago. So what's interesting in this space is of course that you have FPSO's that are sitting on the fields where we are really the key to unlocking those cash flows. I think that's what a number of our competitors are seeing and it's just on the line, and of course that a lot of value that goes hand-in-hand.

But as we know, it always takes a number of parties to come to play to really unlock some of those values. We are fortunate where a lot of the fields that we are looking at, we are first and foremost saying that we are really focused on getting the right customer profile and see the profile so that the projects that we own are financeable. So we don't really see straying to becoming an oil company here. It is an interesting focus, but we are off the belief that we are surpassed by [inaudible] to our needing and that's where all the strings are.

Espen Landmark

Right. That's helpful. Just kind of a follow-up. On the net rollovers that you have. Is there some of these units where you have I guess high book values in kind of comparison to what would be realistic if you were to expire?

Vince Lok

I think all in all, we will think the unit that we just went over there, they were already attractively priced, the fairly small unit which is another difference on the segment that we're playing in there. So they are not building dollar plus assets. So they are kind of key units, I think we said that I will go in and do EWT testing at a very competitive cost and therefore the written down values on Ostras is even more competitive today and it can produce for a number of years. If we look at some of the other ones on Voyager that has a pretty low breakeven cost when it comes off as well and has been filled the written down, [inaudible] touched on it before.

We obviously don't know exactly what will be required to it, but it is a modern unit where we did a lot of gas compression upgrades on the Huntington field. So there should be a number of fields that it can produce. The key significance here on the newbuild of the existing fleet is of course that valuation that they're sitting at is hugely below the replacement cost of these units and that's what we've talked about before for example on the Varg FPSO, which isn't the older unit. But if you were to build it today, it will still be a billion dollar plus type of FPSO in order to produce the same fields. So we think it's, that they represent a very attractive value proposition to the customers as they're still solving for relatively low oil price breakeven.

Espen Landmark

Yes. All right. Thank you.

Operator

We'll go next to Ben Brownlow with Raymond James.

Ben Brownlow

Hi. Just to follow up on the Arendal Spirit. When you look at the steps you're taking to recharter that, does that involve possibly renegotiating the day rate?

Ingvild Sæther

We're now in discussion with Petrobas about rechartering. We are in discussion with Petrobas an operational review where they want to ensure that the unit is operating to their safety standards and that there won't be any issue. So that is the only focus on the discussions we have with Petrobas.

Ben Brownlow

Understood. On the assuming kind of from a modeling standpoint, the vessel OpEx for the Arenal Spirit, is that sort of $7 million in quarter run rate that you saw in the fourth quarter? Is that a decent assumption going forward during the down time?

Vince Lok

Yes. I would say it's a little high because we are focused on the safety and upgrading for the unit, but it would be a little lower than that, but that would be sufficient going forward around $6 million.

Ben Brownlow

Great. That's helpful. One last one for me. On the shuttle tanker side, I guess there are roughly eight vessels that you have that are approaching kind of a 20-year age mark over the next year or two. Can you comment realistically, how long you can employ those past the 20-year age, just given the strong COA rates that you've seen? It seems like that would be an opportunity.

Ingvild Sæther

Yes. It could be an opportunity for some of the customers who are lifting fields offshore and taking it directly to their terminals. So for instance, X1 is a company that are lifting at their own field and using at their own terminals. If you want to trade the oil that you're picking up, then you really need to speak to the 20-year rule because you have all these oil companies having their betting departments that have a hard stuff at 20-year. So it really depends on the customer and how they need to trade the oil or take it to their own terminals.

Ben Brownlow

Do you see a lot of alternative uses for those assets as you think about the retirement as FSO conversions or other opportunities?

Ingvild Sæther

Well, if you look at the track record we have on the shuttle tankers, these has been quite popular for other projects. So we have obviously the Navion Europa shuttle tanker that's now the Libra FPSO. We have the run rate shuttle tanker that is becoming antenna [ph] FSO. As reported, we sold the Europa -- sorry, [indiscernible] FPSO, Libra FPSO, Europa was also sold for an FSO conversion or project. So we have a track record of being able to sell these vessels for ongoing new projects.

Ben Brownlow

Great. Thank you.

Operator

Now we'll conclude our question-and-answer session. I will turn the conference back over to Ingvild Sæther for any additional or closing remarks.

Ingvild Sæther

Thank you all and look forward to speak to you next quarter again.

Operator

That does conclude today's conference. We think you for your participation. You may now disconnect.