Q1 2020 Earnings Call
Thank you for standing by this is the conference operator, welcome to the Husky Energy first quarter 2020 conference call and webcast.
As a reminder, all participants are in listen only mode and the conference is being recorded.
After the presentation, there will be an opportunity to ask questions to join the question Q You May Press Star then one on your telephone keypad should you need assistance during the conference call you may signal, an operator by pressing star and zero.
I would now like to turn the conference over to Dan Cuthbertson Director of Investor Relations. Please go ahead Mr. cuthbertson.
Oh, and thanks for joining us on the call.
You are up your body COO, Rob Simon CFO, Jeff Heart and other members of our senior management team are here to discuss our first quarter results and then we will take your questions today's call as forward looking information and non-GAAP measures. The identification of the forward looking information and non-GAAP measures the risk factors and assume.
Options pertaining to the forward looking information and additional information pertaining to the non-GAAP measures are in this morning's news release in in our annual filings on SEDAR and Edgar all numbers are in Canadian currency and before royalties unless stated otherwise please direct your modeling.
Third me please direct your modeling questions to our Investor relations team will be standing by after the call Rob will now start to review.
Thanks, Dan and good morning, I hope everybody is looking after their own health and safety during this extraordinary time.
As you start our release this morning safety continues to be an important consideration behind all our business decisions and has brought in to even sharper focus our drive to become a high reliability organization. This has included a number of steps to protect the health and safety of our workforce and the communities where we operate.
The global energy industry is currently dealing with a plunge in commodity prices driven by an unprecedented declined in refined products demand.
Huskies case, the drop in oil and refined products resulted in an inventory write down of 274 million as well as a FIFO as FIFO related business losses of 397 million both after tax.
In addition, we took an after tax impairment of just over 1 billion related to lower the lower oil price outlook. However, husky has several advantages that we'll see us through this period of low prices and heightened volatility as always we continue to ensure the strength of our balance sheet and we have good liquidity.
Our integrated corridor business includes a sizable midstream and downstream segment.
That is focused on capturing spreads rather than on the headline price of oil.
With a network of integrated storage and logistics assets across Canada, and the United States, including our refineries, we can better cope with and take advantage of current market conditions.
And we have an offshore business that includes long term gas contracts in Asia.
Later this year, we will be bringing on or a third field at the Li one gas project gas sales from the field are also covered by a long term contract, which will contribute to additional free cash flow from our Asian business.
Well no one knows how the current situation will play out.
We we are managing the business assuming that any recovery could take an extended period of time, we have braced for these conditions accordingly, the swift and proactive steps, we have taken combined with the quality and flexibility of our asset base are aimed at ensuring the strength of our balance sheet and keeping us positioned for the future.
Sure.
First we have significantly reduce spending since we provided our initial guidance last December we've cut our planned 2020 capital spending by around half to between 1.6 and 1.8 billion.
Another 100 million an additional cost efficiencies have been identified an action and we continue to identify more savings throughout the company.
And given current market conditions, and our focus on the balance sheet. Our board of directors has taken the difficult, but prudent steps to reduce the quarterly dividends.
Second we have minimized any business activity that is not immediately cash positive in the current pricing environment.
It was clear from what we were seeing on the product demand side in North America that we were going to see supply and demand collide in a very messy way this quarter.
Our strategy is to keep has many barrels away from the train wreck as possible to minimize negative cash margins. For example, starting in mid March we took early action to safely shut in more than 80000 barrels a day of production in the integrated corridor, most of which is heavy oil.
Sunrise Tucker and our Lloyd thermal facilities have all been ramp down significantly. These reductions have been done in such a way is to preserve reservoir integrity and to provide maximum optionality to ramp up once pricing conditions allow.
In addition, we have taken steps to optimize downstream throughputs in the mix of our refined products. This means our refineries are currently running at minimum rates with the exception of the asphalt refinery, which is running full life and continues to capture strong margins.
We're also using our flexibility to manufacture more diesel as demand has been holding up better than gasoline or jet fuel I'll remind you that Huskies U.S. refining system is diesel heavy with Lima closer to a 211 refinery than a normal three to one.
And in our midstream infrastructure.
And our midstream infrastructure, including significant storage blending and committed export capacity continues to serve as well.
The offshore.
Well gas sales in China were impacted in the first part of the year by the Chinese new year and co vet 19, Liftings are now above normal as the economy continues to recover strongly.
And in the Atlantic region, the wife Rose field is producing at full rates.
Despite the current market crisis, we've not lost sight of our efforts to improve our environmental footprint and also improve the transparency of our reporting on our yes cheap performance Youre recall that last year, we set up a climate task force to look at Huskies carbon related risks and opportunity and how.
Now we could best managing report these two our stake holders.
We are completing this work and expect to announce our new targets shortly you.
You'll be able to read more details in our 2020 E. G report, which will be released in June.
Thanks to know now turn the call over to Jeff to run through the financials as well as our cash debt and liquidity positions.
Thanks, Rob.
Funds from operations in the first quarter were 25 million.
Which was impacted by the after tax spiteful loss of 397 million related to the drop crude and refined product prices.
Cash flow from operating activities.
Putting changes in noncash working capital was 355 million.
We reported a net loss of 1.7 billion.
This included an after tax impairment of just over 1 billion.
As well as the inventory write downs of 274 million in the form of net realized value losses.
However, this was partially offset by gains of about 80 million in a short term risk management program.
This is included in the corporate financial summary, and the Mdna.
Net debt at the ended the quarter was 4.6 billion.
And liquidity was 4.7 billion.
Since the ended the quarter.
Excuse increases liquidity with the addition of 500 million terminal and our investment grade credit rating has also recently be region reaffirmed by S&P.
Capital expenditures were $612 million.
This includes the superior rebuild costs of 43 million, which are expected to be substantially covered by property damage insurance.
You have already provided a quarter by quarter breakdown of planned 2020 spending.
The majority of this capital is being spent in the first half of the year and it tapers off significantly over the remainder of year.
The capital reductions.
Balance of your reflect the suspension of several in flight projects, including the West White Rose project, our future Lloyd thermal projects beyond the completion of spruce like central.
Our new gas fields in the Madeira Street, and the rebuild and superior.
Just a reminder, that we've adjusted the way we report our financial results to more clearly reflect the integrated corridor in offshore segments and this is reflected in our financial statements.
We expect to see very challenging conditions in the second quarter in terms of low crude and product prices as the market works to bring supply in line with much lower demand.
We are well prepared for the so given our financial strength and the proactive steps we've taken.
Our production and capital Numb round numbers will reflect the shut in of cash negative production in the integrated corridor as well as the ramp down or deferral of projects as a result over 19.
And the offshore the impacts will also include the ongoing suspension of production on the Terra Nova partner operated Fps. So.
The operators currently evaluating options to complete maintenance work and asset life extension activities.
Regards to upcoming turnarounds as previously indicated we have two weeks of maintenance schedule and to see rose in the third quarter.
However, our planned turnaround at the upgrader has been shifted to the third quarter 2020, and the Sunrise turnaround has been deferred to next year.
In addition turnaround work originally planned at we won during the second quarter will now be done within the course of normal maintenance time frames.
Finally, as mentioned earlier, our board has approved a reduction of the quarterly due.
To one and a quarter cents per common share.
Thanks, and now I'll pass the call over throb sides.
Thanks, Jeff.
Starting in the Atlantic region.
Look at Othree West White Rose construction sites gentian marries town in new from land.
Well side, Texas has been stood down.
As upon approved previously announced last months work on the possible development of the beta nor discovery has also been deferred.
Overall, our share of Atlantic production was about 19600 barrels per day in the first quarter.
This takes into account the turnover shutdown throughout.
In the Asia Pacific region.
Offshore China construction is proceeding at 29, one field at least one.
We have recently installed major components of the sub sea system.
Next up is the installation of control Umbilicals and the connecting flow line.
We remain on track to start up in the fourth quarter of this year once fully ramped up this field will add about 9000 via Luisa day to fix price Asia production.
Natural gas production at Liwen averaged 174 million standard cubic feet per day in the first quarter.
That's also at a fixed price.
Associated liquids was 6800 barrels per day.
Well sure Indonesia, BT gas project is continuing normal operations in the majority streams.
Gas sales in Q1 average 36 million standard cubic feet per day liquids production was 2600 barrels a day husky working interest.
Yes, so at the BD field was offline for two weeks in January for maintenance.
Since returned to full rates.
Overall combined net production for the offshore business in Q1 was 63900 BOE per day Husky share with an operating margin of $55 in 60 cents per Boe.
Looking now at the integrated corridor.
Overall production was 235000 via Reais per day net to husky.
Compared to 241000 barrels a day in the fourth quarter.
231500 between today this time last year.
We're in the final commissioning stages spruce like central several projects. However, the decision to started up will depend on improved prices.
Construction of spruce like North, which was originally going to start up at the end of this year has been deferred as is the rollout plan for additional Lloyd some projects.
At Sunrise ramped on operations to about 10000 barrels a day husky working interest.
The Lloydminster upgrader.
Foot was 77500 barrels per day in the first quarter.
Jeff Greater is currently running at reduced levels in order to maximize its profitability in the current market conditions.
Project to increase diesel capacity the upgrade it has been deferred to the end of this quarter.
Throughput at the asphalt refinery is up 25% year over year to 28600 barrels per day, reflecting increased demand.
Total upgrader and refinery throughput was about 308000 barrels per day.
Compared to 333600 barrels per day in the same period in 2019.
Our us refining assets currently running at minimum rates with throughput reduced by about 100000 barrels per day matching local markets.
And as we announced earlier this month given the current economic conditions, we have suspended the strategic review of our Canadian retail and commercial fuels business.
Finally in Western Canada production Weve halted all investments in our conventional and resource play businesses. We will continue to optimize existing production in this segment and look for opportunities for further cost reductions.
Now I'll turn the call back to the operator for questions.
Thank you we will now begin the analyst question and answer session.
Any analysts to wishes to ask a question May press star and one on their touchtone phone, you'll hear a tone to indicate youre in the Q.
For participants using a speaker phone and may be necessary to pick up your handset before pressing any keith.
If you wish to remove yourself from the question Q you May Press Star then too.
To join the question can you. Please press Star then one now.
Our first question comes from Greg Pardy of RBC capital markets. Please go ahead.
Thanks. Thanks, Good morning couple of questions for you I mean, the first maybe is for Jeff.
Five plus billion of liquidity, how do you see your your cash burn kind of unfolding over.
Over the course of 2020.
Yes, Thanks, Craig I think.
I was just broadly talk to with the capital reductions. We've made bank. We view, we can cover and were imbalances and you kind of mid Thirtys Brent price line just to give you that context.
AEROSURF again, and remember our sensitivities on a dollar or about 100 million, but thats kind of your kind of in the mid thirtys on on that.
Okay terrific and then.
Maybe a question for for for Robert for the Rob's or what have you, but I mean, we're obviously still in the midst of a slow moving accident here, but as you start to think about the other side in and how maybe the business how you'll run the business and so on and we certainly observe for any large companies. We don't have any hedging in place.
In some cases debts cash flow ratios it.
Creeped up a little bit and so forth from an industry perspective, but would you see hedging and or lower.
Targeted leverage ratios and things like that do you think that could become more than the warm in terms of how you run husky on the other side or is it just too soon to really be coming to those conclusions at this point.
Greg I'd say that I don't see Hough fundamental change I mean, this could change I guess as we learn more as we go through this but we've always run husky with a pretty conservative balance sheet and I I don't see that changing I think.
And so so I think our focus will always be and as you know it's been for a number of years now it's been to drive down the breakeven on both an earnings and cash flow basis, and our investments have really been focused on that.
Again as to where you know were breakeven as Jeff said as sort of in the mid Thirtys now on on a cash basis, so that feels in a pretty good place and.
And so we might have another look again, but again the rate at the moment I wouldn't be.
Mindful to jump into hedging future oil prices for our ROE because I think we are in the middle of a train wreck right now I think the futures curves right now we're not all that representative of anything other than the fact, we're in the middle of the train wreck right now so so so it doesnt seem inopportune time to jump.
On the forward hedging bandwagon.
No no.
Understood now not suggesting a hedge at all we don't believe the forward curve either I guess, it's more just a philosophical.
Risk approach as opposed to picking up price point, but I think you've answered it yeah.
It's awful approaches to keep a very strong balance sheet.
And then remain essentially exposed to the market.
Okay. Okay last one from a 29, one I think the pass was was being looked upon as dealing with clients and so forth in this case.
Is it likely to be incremental to the to the volumes you're running now.
I think initially it will be incremental and then in a couple of years it will be more filling the hole, but initially it will be incremental because we haven't seen any decline from the original field and as you're aware, Greg we've been adding reserves every year to that fields. So.
So so it's performing very well in it it definitely has more reserves that were originally booked.
Okay terrific. Thank you very much.
Our next question comes from Dennis Fung of Canaccord Genuity. Please go ahead.
Hi, good morning, and thanks for taking my call exceeding my questions.
I've got two here. The first is really just given that your frankly close to your maximum turndown in your refineries and I know you guys had put out a little bit about context around potential incremental shut ins.
Trying to kind of.
Manage the upstream production with essentially your downstream throughput how should we thinking about the 80000 barrels a day or over 80000 barrels a day of shutting that you guys have already announced palm and given that there's I guess a small.
Incremental reduction insurer in terms of your refining throughput how should that maybe relate to our thoughts on your upstream production.
Identiv. Thanks for the question this is Jeff Francoeur.
When we think about the.
The reductions that we've made we're thinking about it in terms of a total value chain not upstream reductions and downstream reductions the kind of how we're adapting the chain to the to the market.
We saw pretty early in March a real swiftly.
Declining demand in our us markets and so that was when we took action to reduce together the upstream production and also the most of the refining throughput.
Kind of intend them.
And I think we'll be looking when you start seeing the signs of demand recovery, we'd be we'd be responding in the same way looking at moving the refining throughput up together with the heavy oil productions, we've always seen refining as sort of a backstop for our or have you will.
Production does that answer the question.
Yes, yes.
And then my second question is just more on the Atlantic Canada assets as we've seen frankly, an increased in terms of utilization of tankers on a global basis for frankly storage of excess crude oil supply are there any subsequent knock on effects, maybe namely with realized pricing or transportation costs or crude barrels coming out of your Atlantic.
Operations.
Dennis This is Rob Simon's I mean, I think indeed, you're seeing global pressure on Brent and the fact that there's a whole bunch of storage floating around means that the spot prices a little under the headline prices. So we're seeing that kind of pressure, but nothing beyond that.
Okay perfect. Thanks ill turn it back.
Our next question comes from Emily Chang of Goldman Sachs. Please go ahead.
Hi, Good morning, Thanks for taking my question My question.
I had a question around capital allocation plans and.
You mean, we do see or a covering the macro by yearend.
How should we think about the ramp back go back to the bugs on this downloads and kind of west flat rises while.
Thanks Emily.
As Rob I think.
First of all I think will be quite conservative in the way, we start adding capital back we'll want to and it'll depend a little bit as to where we see debt getting how long does this continue where does that end up if the longer the event slower you'd want to ramp capital back up at the end because we will want to then.
Pull our debt down a little bit before before we really started to unleash capital spending.
So.
And we're in a really good position now because I think from what we pull back in capital Theres nothing there's there's no capital that kind of has to be.
Flights soon it's all pretty discretionary now going forward. So I'd, just say I think it will depend a little bit on the lengthier. The event that will control the pace of capital and what will be watching is is the total level level of debt and looking to bring that down a little bit before we really start ramping up capital.
Got it that makes sense.
Just one follow up also on sort of ramp back type of the same.
And some of the production that has been taken off right now how quickly can certain portions of that be ramps back up obviously, there's a difference between the conventional is the and the yet some of that so.
Yes.
If you can provide any color around those two pieces. Thank you, Rob I'll get Andrew dial in who runs the Western Canada business now to answer that yes. Thanks Emily.
As Rob said in his opening comments, we've shut in about 80000 barrels a day of production that's our cross our upstream business. So that the cuts are in cold in conventional and then across our thermal businesses.
I'll remind you that we got quite a bit of experience of this subject from that from both the 2016 Fort Mcmurray cars and then from the time of curtailment management and so I can tell you that weve executed in particular thats thermal dial downs in such a way that actually the first of all we preserve the reservoir integrity and then secondly, we actually we set up to such await the production could come back.
Really quite quickly and particularly in the Lloyd Thermals unit, we have very good viscosities and so we know that production there it's going to come back really ready with it.
Hopefully that answers your question.
Great just maybe real quick how about on the conventional does that take a little longer than perhaps what you're suggesting to slide. Thanks. Indeed, so so we've done some of our conventional.
And our chops production.
I think there what you'll see as you'll see some of it return as I can per ton relatively quickly because of the pumping mechanism, but indeed family. There will also be some impairment.
Collapse of wearable holes or cut bottled water coming in at impact our reservoir.
And I think the great.
In terms of permanent impairment I think we've said thats probably around fibers, five or 7000 barrels a day based on our previous experience, but I'd also emphasize that the wells that don't come back or the highest cost wells in the lowest production.
Got it that's very helpful. Thank you.
This concludes the analysts Q and a portion of today's call. We will now take questions from members of the media.
As a reminder, please press star and one on your Touchtone phone to ask a question. If you wish to remove yourself from the question can you. Please press Star then tail.
Our first question from the media comes from Dan Healing of Canadian Press. Please go ahead.
Hi, good morning, Thanks for taking my question.
I had a question about a about bouncing back from the situation now as well.
The company's obviously focused on cutting costs and one of the learnings as that people can work from home probably more people than than you were thinking is there any plan to use those learnings going forward to keep costs under control by having more of the company work from home or or more flexibly and therefore take less space in office buildings.
Yes, Thanks, Dan I would say that yes, there's been a lot of learnings from this working from home the biggest learning being that it worked a lot better than I think all of US thought it was going to work the technologies vastly improved in the last.
Short years, and certainly for us the transition from a working in the office to work in hone we have over 95% of our office staff working from home. Some days, it's closer to 99% and that transition was seamless I mean, it actually worked extremely well.
And so so one of the things were going to do when we come out of this is to really understand what the lessons we learned I don't.
Unfortunately, the short term as you you're well aware I think theres a lot of office vacancies in Calgary, So you're not going to you're not going to save a lot of costs in the short term just by having more empty office space.
But but I think it's more to do with worker flexibility and the ability to maybe Taylor unemployment offered a more people that is is is more attractive to them.
And I myself I'm, particularly interested in how this could work around things like maternity leave some things like that to give a lot more flexibility to people.
Most physicians and allow them to continue their careers in a better way. So just just some thoughts but it's early days, but theres no question, it's going to change the way we worked long term I think.
Okay, and just also related to Gionee.
Given the situation that's going on and.
Capex and so on has husky reduced its overall headcount.
Well last year as you're aware last year, we did staff reduction exercise.
So so that was that was the major staff reduction exercise that went on how the we have lowered the number of contracts staff working for the company, but thats because contract staff are generally attached to capital programs and or seasonal sort of work. So that's why they are actually employed under contract and so as the.
The work has gone away.
We have less we have less contract people working for US right now now weve taken all their name so that so that when things do start ramping up we can we can bring them we can bring them back.
Okay. Thank you.
Our next question comes from Kevin Orlando Bloomberg News. Please go ahead.
Hello, Thanks for taking my question I, just wanted to get your view on the ability of the western Canadian and actually the whole North American.
Energy system to store all the surplus production, that's coming out and cut prediction.
Quickly enough to.
To manage the current oversupplied us I, how do you see the the system adapting right now.
Sure.
What I would say on that first of all.
Kind of.
In my comments here I think as we've looked at supply and demand coming into this quarter. It was apparent as soon as we saw and we saw very quickly through our downstream operations, how fast product demand was falling that this ultimately is what's going to be a bit of a train wreck in North America, even even forgetting what's going on in the global oil.
Oil markets, just theres enough production in North America, and and with supply falling off so fast.
It was like.
As I envisages kind of like a train wreck that was going to happen now the good news is supply and demand in North America are going to equalize and neat over this quarter because they have no option because the storage runs out and actually I think.
In the refined products side, we're seeing some glimmers of hope there in that we actually.
Early in the quarter, we were quite concerned about our gasoline sort of storage abilities would we have enough to store enough now we've been able to turn down the refinery turned down the gasoline mix enough. So now liftings and production are roughly imbalance. So we don't we don't see a containment problem on the products.
Right.
Significant one in any case not in PADD, two I can't speak for the whole of the United States, but.
Add to it looks like we've got things pretty much in balance now with what moves the refiners have made and of course refiners can move faster than producers. That's been made very clear here and thats, because it's a margin market and refiners are used to going up and down in response to market. This is an extreme example, but they are used to vary.
In rates in order to meet market demand upstream producers are not quite so fleet of foot in general and so that you've got a bigger problem with crude oil storage, but again I think if you look at the early figures coming out now on storage of crude across the United States. This is theres still a build going on but the build slow.
<unk> has slowed down.
Appreciably now.
So I think the crude supply and demand is also coming into balance over the next few weeks as I say Theres no choice. It has to do and so so the system is working.
And the market forces is crucial as they are when you see negative prices and things like that are doing exactly what they're supposed to do which is to send very clear signals to people in the industry as to what actions they should be taken.
Thank you very much.
Our next question comes from Chris Barco of Calgary Herald. Please go ahead.
Hi, I have a couple of questions for up Peabody ramp up the federal government has announced several measures.
To try and enhanced liquidity in the oil patch I'm wondering whether you think they've done enough and if not I'm wondering what specifically you might be looking for.
First question.
I would add I mean first let me just say that I'm generally encouraged by the steps both levels of government.
I have been taken to help industry weather the storm I know, it's never going to be enough but.
But but both levels of government have been very responsive and open and it's been easy to get in and communicate with them, they're very open to hearing our issues. So I think early steps are good I'd like to focus on the smaller companies in the service sector, because I think their debt.
We will need them when we come back and start to work again, but they're the ones most at risk like up a small as balance sheet by definition of a smaller companies. So I think thats right place for the governments to focus and and so in general pretty.
I'm encouraged by by this is the early steps and I know there is still looking to do more.
Good thing Rob I wanted to ask you boat was.
Do you view the that's the last couple of months changing I guess the fortunes in the future of the Canadian oil patch and sort of separate from that do you think that were that we're going to need to see more curtailment from the government and I know how you feel about that with regards to shutting in more oil given the market forces that play.
Yeah, I guess, so Chris I, just say that you know from my past comments I'm a bit of a fan of market forces sorting things out because in the end I think that gives you. The most competitive industry and I think every time, we apply artificial methods of trying to.
Sure.
Save the industry, we actually make it less competitive which in the long run is damaging to it. So I certainly would love to see the government take an opportunity now when there really isn't a need for curtailment to just ditch the program.
Because because the pipelines have lots of capacity in them and I think given the current situation, they're going to have quite a bit of capacity in them for quite a long time and of course, there is additional capacity opening up so I think theres an opportunity there to go that way in the end.
I think if you look at the whole oil industry. The forces at work cars are telling us.
This is a mature industry and we're going to see.
We're going to see.
Elements of consolidation across the industry over the coming years, and that's kind of natural unavoidable, but I do think that Alberta and hence this catch won in the Canadian oil industry can still play a very important role in this industry and one of the things that I think people lose sight of number one is we are the.
Fourth largest export or oil in the world from Canada. So this is not a small industry and I think well I'm I'm absolutely in favor of pursuing renewable energy and all these things that we ourselves are looking at ways to improve and move in those directions, but in the end Cana.
That needs to realize that you don't you can't replace.
Fourth largest oil exporting industry in the world with with with an industry that isn't really focused on exports. So renewables are good let's have as many of them as we can in Canada, but lets also understand thats not a big export industry for the country. So we need another export industry ultimately if.
Sure I'm going to replace oil and gas.
This concludes the question and answer session I would like to turn the conference back over to Mr. Rob Peabody for any closing remarks.
Thanks for your questions everyone.
So we're confident in our ability to adapt to these challenging circumstances and.
And the actions, we're taking you'll see us through to the other side of the downturn.
Before we sign off I'd like to take a moment to recognize the significant leadership of Rob Sirens and the contribution he has made to our company Rob recently announced his retirement following nine years with Husky. He will continue to work until the end of July to support the ongoing transition of our operational structure to better reflect our integrated core.
Order and offshore business and continue to help us with little cost management.
With the announcement to Rob's retirement, Andrew Darlin, who has been leading our heavy oil and thermal business will now become the executive Vice President for Western Canada upstream reporting to me Jeff Renker is also reporting to me is the executive Vice president of downstream and midstream and find.
Hey, Bob ankle who's been running the Asia Pacific segment of our business will become the COO of the offshore business and continue to support me.
I would like to I'd now like to invite you to join US at 10, 30 Am Mountain time for a virtual version of our annual and special meeting of shareholders. You can see the webcast information from in this morning's news release and on our website.
Ill guests are welcome to listen however, only registered shareholders will be able to participate and vote. Thanks again for joining us today.
This concludes today's conference call you may disconnect. Your lines. Thank you for participating and have a pleasant day.
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