Q1 2020 Earnings Call
Ladies and gentlemen, thank you for standing by and look on three days Golar LNG limited collector wanted to spend George spokesperson station conference call. At this time, all participants triangulation only mode.
Their presentation, it's what I beg the question and answer session, let's see each time, if you wish to US a question you relate to press star in one of your telephone and they train him to <unk>.
Please be advised that this conference is being recorded and I would now like turn the conference but to your first speaker today, Mr. He and Ross. Please go ahead Sir.
Thank you good morning, good afternoon, everyone I hope, you're all well welcome to the Golar LNG Q1, Twentytwenty results presentation.
Let's see <unk> Golar LNG today I'm joined on the line <unk>, New CFO, Kevin Mitchell Thompson, that's just the cabin head of Investor Relations.
Before we get started I'd like to acknowledge the huge by Golar stuff boat show based and of course, it see effort and keeping the business running <unk>.
It's either disruption due to both covert Nike and depressed commodity prices their dedication to go out and ultimately to our shareholders is quite remarkable worthy of this much.
City by people, who leads our first priority.
Healthy workforce, we can't deliver for our customers without delivering for our customers, we don't make any money for shareholders. It's that's it.
I'd like to draw your attention to forward looking statement on slide one that if we turn to slide four let me give you some highlights before catalytic she student numbers in more detail.
Today, we reported adjusted EBITDA of 76 million on revenue of 123 billion, which are which is driven by solid excellent performance strong seasonal results and ship.
Hi, Chuck <unk> earnings of 62000 per day for Q1, Twentytwenty represents a 58% riser <unk> last year.
We continue to de risk our shipping portfolio and ended the quarter with a shipping revenue backlog of 126.
Alright fill NGL person.
Okay. Thank you much a long time throughout the quarter with reduced operating costs and stable EBITDA generation.
I did.
We reached commercial operations on sushi, they power station, which sees the commencement of 25 year PPSA based on facility availability and up part of that can be dispatched for 60 days notice, which in turn gives great potential for additional income from merchant bar.
During the quarter, we had three basic dispatch.
More of these segments later, but me firstly welcome Carlo.
It was supposed to results coal for Golar I'd take us through the numbers exclude.
Thank you again, if you turn for the next page page five for first quarter Twentytwenty financial results I'd say, it's I'd Echo what do you said about the dedication to the stuff for these tough times and nobody wanted to be up to meet many of you and hospital much schools I apologize, it's a consensus as such.
After this way.
It should work.
Turning our attention to the summary results you can see the bottom of the page the adjusted EBITDA in the Q1 Twentytwenty column.
Yeah.
76 million of adjusted EBITDA, which compares very favorably to the 63 million.
In Q1 29 team has you know what business seasonality for shipping business is seasonal sorry, Q4 tended to be a better quarter.
Secondly, the 76 million at the smell beach, but it's not that consensus.
Well, what does that 76 million come from what do you can see here from shipping a corporate that's a 34 million.
Pick up which again compares well to the Q1 tried to 19 of 21.
We as you'll see for those who are familiar with cut it off the U.S. GAAP divisional split is shipping and corporate together, sometimes it's hard to international operations and as we go through this that we're trying to we started a trend which we'll try to continue.
Let's see out.
Shifting a corporate.
See more of that later, so that 34 million on the should incorporate the Doe is 43 million of shipping and minus 7 million.
And again that 42 going in a shipping.
Relates to the positive what the tables on that but.
Second point Tonight for LNG number at 42 million EBITDA adjusted EBITDA.
Stable and that reflects the nature of the business as we think that the business and as we de risk shipping portfolio to try and.
And the called the shuts the contracts how long ago. So that is supported by the very stable nature of the Headley LNG business.
I would also draw your attention to some of the other movements, you'll see that all contractual debt shut at the bottom of the page is relatively stable.
Thats effectively there to movements I'm delighted that there's a 95 million dollar draw down during the quarter on the give me.
If you remember the she gave me is on the construction which is equally.
Oh sat Fi repayment took 72 million on the launch in mind, and some 24 million et cetera that everything.
I would also draw your attention to the interest rate and equity derivatives from but what you touched upon the that lost income given cobot 19.
<unk>.
And that for interest rates have fallen as you will know we've seen a mark to market on a swap book.
A drop of between 112, and 115 basis points are not triggers and.
Derivatives locks in previous calls as we had some guidance.
Very limited cash.
Hello.
So the key message on this slide stable at southern G., the Dol shipping favorable compared to Q1 time to 19 on an adjusted EBITDA of 76 million, which is a small.
It's not the consensus.
She outside.
Page page.
Oh, my gosh, and adjusted EBITDA developments over the last 12 months, you will see the Buffalo after the page 76 minutes.
As always we show quotes from coal to either should on the left started this page how do we also show last 12 months Coty mission for the right.
[noise] key messages from this slide.
36 million impact is lower than the coupon to try to 19 as I mentioned that the stock Q4 try to 19. The Q4 in general tends to be one of the back to courses and the movements that have occurred between Q4 trying to 19.
Q1, Twentytwenty to highlight you can see the 15.6 million drop.
Given the low at T.C.E. right.
<unk> to one vessel in withdrawn from service to go in to conversion.
Yet.
By an increase utilization rate for lunch you decide to 94%.
And I'd point out that the T.C. right.
61200.
An improvement.
19 TCT right.
Pretty handy.
Appointed <unk> list that John it's that we'd be looking away, but costs and cost cutting and you'll see administration expenses.
Now I'd say that I think for many companies cobot 19, I've seen a reduction it.
That's it somewhat like.
To see which of those cost savings.
In it which a function of the unusual times in which we find ourselves.
Right outside of this page shows here as I said the evolution of Q1, Twentytwenty last 12 months, even though a 268 million hasn't had compared to the Q1 29, 10 Bucks 12 months either.
Teaching.
Again that broadly.
What kind of food.
People have questions.
If we turned out to the next page.
He did not.
Huh.
[laughter] facing liquidity constraints, we feel at one of the resilient light truck business for the and refer to it the stock is stable EBITDA from.
Kelly and even within the shipping business.
That is something that puts us in a more resilient place than men, but nonetheless liquidity is a focus for everybody in the current environment, we imagined that core it would be a focus if youre. So we wanted to set up an explicit detail, how we see our liquidity, having a vote at the quota.
To be likely with you that we anticipate as we look.
So what we anticipate to be the current outside the for the remainder of the yet we still liquidity is sufficient for our grid needs. We don't feel the need to draw down on a specific additional facilities.
As others have done.
Let me spend a little bit to try and answer that's because this is obviously an important topic in the current environment for all companies on the left hand side you can see the 35 to seven to 29 team our cash balance of 375 million split between unrestricted cash and restricted cash so there's less familiar with the group a sudden pushing.
About cash is tied up with l. seeds vessel financing and other bits and pieces and we stepped that up.
During the quarter, we had operating cash flow of 86 million.
Find that back and I I will say, though the detail we had net capex might have Swan Valley Capex that we've spent less that that drove down to Florida.
So modest wanting something we haven't been spending capex.
Got it was very much a growth business that is building out happen.
But we'd like to that'll forgets agoda, you'll see that that service that remains reasonably stable for the quarter then the to keep might movements to nudge is during the quarter.
Page 17 million.
Out of 100 million a balance outstanding on the margin like leading a 13 million balance left.
We ended the quarter. So that's 70 million modular Piedmont and in addition commodity is coming in with the Greek remember we had a total that swap in place.
Oh I got program that was on lounge during the quarter.
And that's why repayment to 73 minutes. So we close the coach with 235 million in cash split between restricted and unrestricted cash for those would be who are interested you will see the reduction in restricted cash which is associated with the change in a tough overtime. So I just mentioned.
What about the remainder of Twentytwenty well.
We are exploring three things, which we'll describe at the end intensified efforts.
We are looking at least not I've seen the existing 150 million by the <unk>, which is June 20, and the remaining 2 million balance outstanding on the.
The margin that is chew at August 20, we have plugs, so that when detailed discussions.
With a number of bags and we feel that that refinancing is very much routine what can never saying everything we're not complacent in the talking bothered, but we feel positive about that outcome.
Secondly, we want to preemptively focus on the refinancing at one of our vessels go to steal whereas the financing is maturing in January trying to try to more detailed discussions with a specific leasing company and we have the term sheets that about between us and that is up for credit approval would that very very shortly.
And then finally, you will have seen in the press release that there are two vessels, where we've had approaches.
Those vessels.
Companies have well kucinich steeply exploring discussions and those discussions are.
Worried about that's all.
So it is set to say three find <unk>. The three groups of refinancings are important, but we do feel that they all routine and when we look at them alongside the anticipated Capex and operating cash flow that we feel we went on we feel we have sufficient.
Funds school group's names.
We'd made the point in that in the current environment for cutting out much further is it's difficult in the current environment, but we have a fairly detailed approach to catch with full costing on a fairly conservative approach to how we stress test that against shipping lines.
[noise]. So is that there's a conclusion I apologize for the detailed in the current environment. We thought it was important to quit that kinda back to even though to take you through.
The division by Division movies.
Thank you Kelly turning to slide nine on the deck and shipping.
Or by shipping strategy that we've been discussing the few that for many quarters is contributed well we think are improving Tc eat and ship. The gross story, resulting in that quarter on quarter grew from 39000, a day in Q1 19 62000, a day this quarter and you could see the adjusted EBITDA profile.
On the graph together with that utilize I shouldn't wrap up and that's clearly part of this strategy.
[noise] Q1 has had quite a cocktail of pressures on the shipping market.
In addition to the seasonal downturn, we've seen demand destruction caused by covert 19, I know a price linkage between the LNG spot price dropping to Ryan.
No and there was presented to you at the end of the quarter and with some cargos canceled in the quarter, mostly for the U.S. and more cancellations to follow during Q2 in the suburbs.
An effective these items are there are a reduction of ton miles and less structural tightness in the sector than we originally thought.
Spot rates fell from 500.
<unk> tober too low to mid Fortys by the end of March now offsetting this there's some new production coming up in the U.S. out of essential for deferral of non committed vessel deliveries into the next couple of years.
Industry analysts are not forecasting that twentytwenty LNG production will be between one and 3% higher than 29 cheap so similar profile.
And finally, we have the LNG for curve for Asian delivery conveyed could tangoe towards the fourth quarter and that may justify subsiding production I didn't associated pickup at rates.
You can see from the graphs on slide 10 that we continued to grow shipping revenue by unlocking utilization for the year.
If we compare the current position was 12 months ago, and we can see it'd be have six times as much revenue you back what was it at this time last year.
With the current market volatility. We believe this approach will help insulate us from by far the downturn and the shipping rates over the coming months, well, having enough spot capacity enjoy the upside as and when it comes through.
We expect Q2 Tc to be around $40000 today.
If we spent the last few minutes talking about I lower LNG prices are impacting the shipping bucket and let's turn now to talk about how lower LNG prices create upside for go lives.
Segments.
Turning now to slide.
12, <unk> LNG markets.
[noise] two points to make a slide.
First like with all of the F.I.D. deferrals of new build projects that were seeing particularly at onshore sites.
Coast, we beliefs industry will reach a point, where some projects will go ahead, but only those that have the right combination of gas supply.
Yes, so the cost offtake agreement.
Equifax, capex volume and speed to market.
The challenge as many of these larger U.S. Gulf Coast project does it mean with huge volume to production to generate capex economies of scale and with S. LNG, we can deliver a world class liquefaction costs.
Relatively small volume.
In the short this time between F. I'd in the first cargo, which remote building and an Asian should you got therefore minimal impact in permitting.
That's a cycle, whose back towards supply increases we believe our proven LNG units will be at the front of the Q.
The second point relates to LNG is a substitution field is core to our downstream business and Golar power. If you look at the tables in the button on slide 12.
Pear and the cost per minute BT you equivalent.
I didn't see the impact of the global reduction in coal oil diesel and LNG pricing over the last few months and the only is LNG proving to be cheaper cleaner fuel than diesel for power generation and transport, but it's catching up to coal in Europe and is beating pipe I guess in China. So I think we benefit from this.
And let's turn to slide <unk> and ex LNG performance.
Oh, that's LNG unit haven't yet the sale offshore Cameron and delivered another steady performance quarterly EBITDA. We're currently offloading the 39 cargo.
The message on Hilli is simple.
It's reliably create and she said <unk> LNG commendation generating cash consistently we haven't missed the sink cargo regenerating. The most comprehensive operating experience if any LNG company in the world.
Let's move to give me construction project on Slide 15, you can see a nice picture of of give me in a dried up I think last quarter. We showed the rusty old Lady heading towards the dry dog and now you can see she is nice and things that.
As previously advised that customer.
20, or actual Angie leased and operating agreement BP self go live with an F and delay claim but it was old Corona virus and fight to run the girls book.
He maintains that lay it still is the order of one year ago lot continues to engage in classification and active dialogue on the subject and I'll. Let the started discussions remain confidential at this time, but I've got three brief points to make him give me.
<unk> as I said, we remain an active discussion with VP of that.
Yes.
Can live in advance and positive discussions with our partner and our major contractors on a potential rescheduled for like around that takes into account the deferral of work and associated capital milestone payments.
Thirdly.
This delays implemented it will result in a substantially de risk the project from a shouldn't do what they do and then whose liquidity position on the project through 2022 with the final outcome and financial consequence of the delay dependent on the ultimate do you perceive that delay and cause of the delay claimed by BP.
Yes, LNG pipeline well nothing is clearly going to <unk> crystallized in the short time.
Still engaging with several companies around specific projects from both a mark one design and I'd like to you build shaping up to be equally as because there's only one we think this continued interest in RF LNG experienced will position us well for the future.
Turning to act on stream slide six Steven dollar powers progress over the quarter. So we celebrated the commercial operations of so cheap they plan on the 21st of as much but seasonally commencement of the 25 have you ever if yet that's capacity payments I started.
Currently the plant, reaching cod selfish the plant operator has nice commenced payment for charter hire off it go but I do to Golar power.
Back to the 21st as much and throughout the quarter. If our station was generating electricity during commissioning and what we add to three days it dispatch and at the end March we ended up the quarter, having produced just under 400000 megawatt hours of power plant utilization factor of 12%.
Average price realized for all power generated was a just 740 Brazilian real <unk> per megawatt hour.
So the plan an episode generating base EBITDA for Golar power, but what else can lead to generate more income from says she thing.
Just like 70, we haven't lifetime.
I don't regions of Brazil, and I said region. So she pace. It said that met the order for thermal power plants, the orange bars of the CD or spot price and the blue bars show that capacity and as you can see says you pay is right at the top and that means that we're not called the dispatch. It is the most competitive cost competitive level.
I will have the greatest opportunity to treat income section.
It's important to remember that the P eight required.
Good day, and I'm, just trying to dispatch, which means it will clearly be times since as you pay is free to generate bashing power.
After the page we show a graph of this bought electricity prices against time over the last couple of years.
We can see the sector cyclic high spot prices typically running from May through October and a small blip in January and February the Green line is the plant breakeven based on contract to dispatch the Red line shows the breakeven spot price it must be achieved for the plant in merchant mode and shoot assuming in this case.
But then LNG purchase prices $3 per MVP and as you can see there are many times and he added that running says you pay and matching board will be profitable and an actual fact $3 is probably about high as we talked about.
As you level.
To give you an example of how profitable the table below illustrates the potential EBITDA burning a cargo of LNG through the power station and that takes about 50 days. So for example in Chicago purchase that Ti dollars 50, and the prevailing electricity price is 300 rebuy per megawatt hour and this carnival.
Anything old cargo would yet right.
So.
This is on top of the capacity based payments.
What else decision would be well in addition, golar power started.
Oh says for the installation pipeline that will collect FSRU then to the regional gas network, we've convinced the customer acquisition process for that.
Slide 18, as a reminder of our small scale LNG hub and spoke strategy. It starts with an FSRU hub located at the channel and from a top hub, we get a suite spokes channels to market. The first is from the FSRU sure because gas pipeline to a large industrial customer of gas or past.
Sure.
Generally the anchor customer the underpins the initial investment at the terminal I will be done so he pay is it.
With that.
Second is to break bulk from the FSRU into small scale, LNG vessels and transport and to neighboring geographies for for the distribution can mid size or smaller scale customers.
I'm, sorry, if I could they LNG directly into ISO containers, and moving them by truck or barge to secondary use as deep Atlanta, but there's no cut connection to gas pipeline articulation, whether opportunity is that to displace more polluting and expensive fields with gas.
So turning to slide 19 for an update on the doubling of the next terminal at by correct I know progress on small scale, a Buck arena Golar power continues to make good progress with VPC contractors and equipment supplies.
And with uptick discussions.
Everything has been slowed down a bit however, the project does remain on track for appreciate just if I D for the terminal before the end of this year if I'd the conversation is likely to be around the middle of 2021.
Also making good progress on the potential for an f. that's used to be SWEPI sometime I think progressive as well for the terminal that Santa Catarina.
We continue to lose.
International locations, there wouldn't be suitable to replicate this model.
Partnership with BR isn't important channel they asked for the S I use into the target customers.
95 supply basis, 7600 fuel stations throughout the country and that relationship and associated planning is progressing well.
And again and small scale.
Slowed down a little bit once more by covert 19 weve.
But to say commitments with three customers and committed but 130000 cubic meters per day.
It's a small start but an important one that we feel proves that the model total capex for the three customers is around $8 million and we will be generating 7 million EBITDA in 2021.
In addition, we did and can it go it costs with the for the 21 customers associated with 600000 cubic meters is the best but that it and similar economics.
An important blade discussion with that right 200, more customers, we've already signed animal I relating to further 6 million cubic meters of gas today.
Well, it's a little bit Nike issues sluggish team down to that without making real progress and small scale. It's a low capex fast payback business, it's economically try to customers, so what's helping clean up the planet.
This is a good still being so do others last week nothing concrete as yet we are receiving interest from potential strategic partners that we can potentially what with to accelerate the golar power constantly, particularly I'd say, Brazil.
So if we turn to slide 21, not highlighting the launch of our first E.S.G. report, which is wet space and details our progress today on our five key focus areas, how sick and security environmental impact energy efficiency, and innovation people and community and governance and business ethics.
So I just from the Bull.
Yes, do you plan and we look forward to having for the discussions on the tough like in due course.
So winding up in summarizing our priorities on slide 22.
We will continue to do de risk shipping.
And I felt like GE, our focus is to conclude the position and give me and to continue to progress discussion for potential expansion an extension of it.
And on stream will continue to push the build out of small scale and develop a terminal a buck arena.
Focus on concluding the refinancing activity that kellum discussed.
Course will continue to push for sustainable reduction in July and simplification corporate structure.
With that I'd like to hand, you back the operator for kidney.
Ladies and gentlemen, who will not begin to question answer session and I sort of mind or if you wish to ask a question. Please press star in London, your telephone and they trade name to be announce.
Okay. Our first question comes in the line Ken Hoexter Your line is helping.
Great Good morning, and Callum welcome.
Ian just a obviously I think that.
I wanted to start on is your thoughts in progress on on the shipping spin if theres any update on on your thoughts is that just off the table in this market.
And Kinda you just proceed as planned and then your your view of the mix now you've improved you noted the the amount that's contracted versus spot what's what's your thoughts on on increasing that in this environment, where where rates are today or do you kind of like the mix of almost 50 50.
So first question nothing's happening immediately around the shipping spend but the fourth that the final point I made in the summary relates to.
Butoh Chestnut group corporate <unk> simplification. So we haven't given up we continue to explore different ways to make the company comprised of the of separately investable components that we'd be as we've discussed previously Iran. You know the difference do shipping LNG Golar power, we continue down that path.
And we'll update you when we've got something okay.
To discuss.
That point I ride and shipping I think from from my point of view, we were we like this structure that we like the profile that Weve developed.
I think we've been building a defensive strategy across the portfolio that we bought.
In Bakken, leaving that opportunity for the upsides, whether that steel contract structure or a couple of spot ships to just to take advantage of any upside. So in doing that we're happy to take on more term business as it comes along I'm obviously.
Doing gotten a very low priced environment is more tricky than its when it's on the like but I'm just very pleased with the progress that are shipping teams made particularly with additional analysis that we're doing and I'm using this too.
Position so.
Once you have to your question is that I would like to see a bit more of contract to turn business.
Certainly compared to where we were quite a year ago were good prudent leverage.
Thanks for that in and then just following up on the on the give me I'm sure you're limited in what you're able to talk through but.
Maybe you can just walk us through the process is it something that you move toward arbitration is there any court system that you progressed with or does it just staying at customer discussion levels and proceed from there.
Yeah. So.
Yes, you're right we have out we have a process under the term leases.
We have a process to follow that determines causing a remedy of any.
Anytime offense that process is underway and importantly, it's express like defined in the L. away.
It's a complex process you know I'm, sorry, I can see I think more on the detail. We don't give a fool explanation of where we end up when we got it felt an agreed with both BP and purpose.
Well I think that's helpful and know that there is a defined process in the in the agreement. Okay. So as you heard more costly and then my last one is just on Brazil, right I mean, obviously, so many different parts of.
Moving parts here, but when you think about the.
Process and a bit maybe you can just maybe simplify the the bid process for the next steps, whether it's it's in and packer and or or.
Are there other bids that you're you're looking at two to expand your capacity there.
Yeah. So so yes, we already have 600 megawatt power station that we bid and be towards the by bucket right now.
We continue to develop the terminals and the other locations that I mentioned the processes I mean, I'd, Brazil's obviously I'm going to be delayed with a options right now she wants to go there was covered 90, whether that process is quite simple adoption is declared by the government.
As we get close it's it we understand the number of megawatts and therefore, how competitive we can be we've got.
So she paid a extension we've got a bucket right as a theyre already awarded sockets.
Places and the idea is that we work at where we can be competitive and then baked into that process using the best combination that we can come up with and they see towards could also be swapped around afterwards, it's quite a it's a it's and one way, it's a very very strict and regimented process and the other had once youve been awarded you can move so these projects are right.
The key success here is fundamental hiring locations ready to paid that are approved qualified that's where all the hard work goes on in the background getting these locations right. Even got many that were work it ought to.
To be able to do that.
And then let me just wrap up I guess on the LNG price environment, you know when where prices are now do you expect as we see the reopening obviously creeping up in the U.S. and in Europe, accelerating a little bit more and clearly in Asia I think we've seen a bigger ramp up are you expecting that pricing just a follow nor.
Well seasonal pattern would you expect to see a slow uptick based on on the acceleration of of the Reopenings around the world, maybe just kind of walk through that I. Appreciate the time. Thanks [noise].
[noise] right, but like I don't see pricing is I think is probably the same as everyone else is it's wrong I mean.
If you could tell me about the global recovery is going to restart the rebound profile. It looked like how that translates to energy demand what all Dubai movie I will affect plus in the U.S. show will respond to the coal spot, but you. This trail yeah, China that speed recently, that's split up trade relates than slate I wasnt between invest in China than I might have a more informed view.
Okay got limited as defensive strategy in order to.
Great resilience and was LNG, we're developing our March three so it's super competitive and staying engaged customers I think that and that's all we can really do but let's try. This forecast. This is not forecasted to be prepared and be ready to move as soon as you know seize the opportunity arises.
Wonderful appreciate the time thanks.
Thanks, Ken.
Okay. Our next question comes from the line of Randy gift done.
Your line is helping.
How the gentleman has gone.
Hey, Randy.
So first congrats stardom.
Power plant during first quarter.
Following up on that what are the expectations for the high School Park on how has that [noise] Brazilian real depreciation on pipe with this concept when it seemed like a mostly dot com.
24 million a quarter recurred now it's closer to 19 quarters that a good current run rate could earn longer corn corn.
Well this is dominated by any sense was a few things obviously they.
Hi, Yes exchange, so life, our costs and the majority of our debts and realize the natural hedge. They then the other thing that happens of course link as all Brazilian contracts are as we go through the year. So you get some degree of offsetting of one I guess the other.
I don't I don't have in front me. The you know the a indexation that we've got coming out.
Okay, but the.
Production or new debt servicing and interest could offset the reduction in the revenue contribution is that fair.
Yes, I mean, the debt service and interest is on a majority of it said dominate design reaction has no impact that the only about this what what comes out the other end.
That is distributable cash if you like.
Right, depending on how you can write it and when and where you're going to spend it.
Okay.
And then looking at S. LNG I know, you've already mentioned a little bit of out the process being under way do you have some kind of a timeline for that is that a few weeks is that a few months and then switching over to the hilli.
Any updates are kind of ongoing talks with perenco to either extend the contract on trains one and to start utilizing train three and maybe what's more likely I guess in your opinion, an extension or an expansion.
[laughter] <unk> I don't have anything else. It's there's no point me I think we're not live in a very structured organized process with BP that we're you know we're progressing well update what about another under that.
I didn't know if you're referring to the article that popped up yesterday around around heavily we'd obviously don't comment on media speculation I think the fact is we've got great operating relationship with Franco we've never stopped having commercial discussions with that around the potential for both through to the expansion.
Existing contract that's got six years left to run and equally for the potential to extend beyond six years.
I think the obvious but includes an oil company current environment, we would expect tend to be prudent with capex and cash conservation. So whilst you understand that the drilling investment to provide more gas into the current contracts relatively small I'd expect debate the delay that due to the current environment.
I felt an extension.
You know we maintained a position it would seem to make sense for both perenco and SNH to continue with Hilli due to the gas that understands available and that Cameron waters, and we'll continue to have commercial dialogue in that regard in the meantime, an important play will pressure on with a ensuring the Ellie continues to be the best performing.
As an operation today.
Got it okay I just want to see if there any uptick there on crank up and then just one question per column first welcome to the big So here and no new to apologize for detailed financial explanations as noted earlier, we like that so hooking up there are multiple refinancings that you're ever.
Turning to obviously your diving right and with all this work underway what is the kind of the possible net liquidity increase you expect after regarding the current that on loose.
Moving on to him.
So thanks for the question right.
Which you probably haven't had a child.
<unk>.
There's a little bit at the backend, where we talk about what the vessels on it depends what we do right.
If you look at the field that is a requirements, we want to or front foot and then have that Don pricings Harry.
Good luck extra liquidity on that and you should think about being low but.
Heading off that potential.
Heading off the potential put option.
From a.
The counterparty in China. The next year, so think about as being low singles mid single digit sometimes and liquidity game.
Then the liquidity gain from the other vessels that we refer to it depends on which ones we choose to do.
We've got three potential situations that we are looking at.
We are in very advanced discussions with the Counterparties in terms of term sheets credit committees et cetera, I think you should think has.
That's the liquidity getting well all three two but all three to a club you should look at the liquidity gain being north of 50 million five zero million sub 111, you should think of it in that zone, but I'm a stress that this is opportunistic people have approached us and said we think this is good for you and we think we've let we're interested in this.
I'd, we're looking at it were in advanced stages, so things should.
You never know in the car environment things should move quickly, but from those you should be looking at between 50, and 105 zero to 100 million, where they took off the please note these were they to occur.
Yeah, that's fair just trying to kind of whatever secret pull there, but I think if that color and <unk> good talking to go.
He is a penny.
Okay. Our next question comes from the line haul micro rubber your line is television.
Hey, good morning, guys how worried.
Yeah, Hey, like.
Eight yet in that first ones on on the give me now I know.
There is an ongoing process with BP just thinking from from your perspective, and the actual converging work being done they give me.
Is there.
What if any impact should we expect on the.
The leverage in the syndicated debt associated with that asset as it relates to some degree of schedule release with.
The force Majeure I know BP, you mentioned, a year, which is an obvious specific number for someone that simply looking to sell the guess, but the did it didn't have any impact ended the first pizza syndicated debt and the F. LNG market ever I think so there is there any repercussions or any any.
It's a concern associated with with does with those overlapping processes.
I like like Count chip it on to this to start with.
So I think the.
I think we'd be delighted with.
Mike on how our lenders have respond that they get the situation. They understand that we're keeping them in form that to fast moving situation, we're trying to move three.
The three sort of parts and size of the triangle off to the right. The BP discussions the contracts for discussions and the financing.
I think currently stand I think I think it's fair to say, we're comfortable with where we are we thinking the short answer. Your question is no. We don't think or any repercussions for the financing by moving the financing to the right in terms of the completed the London I think they've been very supportive and where appreciative of that they're obviously waiting the pro.
He said that it for us to have.
A final for us to be able to take the advanced on posted discussions we have with the contractors price all that out.
Cost all that up phase it.
And then go back lenders in their engineers and he is where we're apps.
Okay.
And the initial conversations we've had to them around the dynamic right. We have feedback from the contractors, we keep the lenders informed the environment is positive as the instead of the stuff we haven't.
We've got a little bit of a way to go to get that's fine lines, but its advanced and positive. So that's a bit more color around it but at the moment, we think that there along with us and the Super simple.
Gotcha, and that's without getting too granular if I think about the 12 month term referenced by BP, but that Doesnt trip any there's no reason then trigger anything within the getting the credit documents being venture associated with the availability of that capital I know it doesn't start amortizing until.
Leaves commercial deliveries I've got to check but be there's no.
There's a then it gets triggered but within just from the timeframe alone.
Everything.
I've asked that question, Mike and the answer is no. It does not okay, okay or other things that's all the things we care about and where there are other things we carried out in terms of quantum and tired and everything else, but in terms of duration.
Okay. That's helpful. Appreciate it.
The.
On the carriers again I never said this is a process is been going on for.
Close to two years now I think maybe more yeah, we've we've kind of gone.
Full circle I said visit it's a difficult proposition in fact I can't think of another time are you seeing that size of a that block of a block of carriers that size change hands maybe.
Dk deal, it's a mirror Benny, but then even that was probably smaller.
Is the most likely scenario given given what we're looking at now is it fair to say the most likely scenario as some kind of in house solution nickel ore that doesn't necessarily involved.
Unrelated third parties.
It could be but considering all options like I mean, you know.
Actual frustration this is fairly baking that we had we had the original spin off with this three a as the two other shipping companies toward that.
At the end last year.
Spin off that was.
What is the global downturn that we have we're not giving out we'll get it shortage. We just haven't quite landed on the right solution for this time I'm worried <unk>, new new options columns come in with some great new ideas.
Okay.
I'm confident we're gonna get the umbrella.
On it and I'm I'm, so happy I couldn't be more specific about what it looks like because these things haven't been wrong I've been wrong. So really you know we're still create we've got at the end on a list of priorities. It's really just to let you know that were not give it up we understand the volume of having an investable vehicle that ships and having it.
He goes or other things and you know you have different types of people that may want to invest in its different asset classes, but I just want to strike the right.
Got you okay.
On the on the Hilli and I know you kind of got it this earlier.
I believe previously you mentioned the preference to extend relative to.
Expanding I'm sure most would be profitable, but if you pick one of the other extending the term I'm in eliminating rollover risk versus adding a third or fourth grain is your preference if is that the right way to think about it in terms of the most likely outcomes I know there's a.
Horsetrading going on between Franco when the government and anytime we see article is like that's their written for a reason by some one to send a message but should we think of it as is the most likely scenario in either or or do you think it's likely than we would see something eventually.
I'm fine.
There I think I was just under more drilling.
Well the could they could be step wise, we might get a bit more production come again within the six year contracts.
And your contract we have six years like that so we might we might get that.
Then we have a PV, though.
Couple of years to that agree an extension. So if you take the premise that it's either she'd like that.
LNG prices or life to somewhere a little bit more attractive than currently our I remember that some of this cost as a byproduct they have condensate rich field, so not just a pure gas lift for Franco.
If you think about the extension opportunity being attractive to Perenco and SNH. Then you. You would then conclude that are just to talk to us about an extension and try and Tonight something over the next couple of years to nail that that but equally and we shouldn't forget this he's got fantastic repeat.
They said well that operator operational knowledge that we're building up and it's you know in two years time in four years after that it will be but they can be deployed something we're already.
Interest coming from other parties to say can we have a look at setting something up so that we could take at least I don't think you statements right about it's our preference just extended my preference is not always to get this though volumes the as much as we possibly can now because it's actually a day for no incremental capex shares.
We want to ensure attended assuming we get the right deal from from Perenco and SNH and if he can extend it was the right deal.
I've ever ground swell of interest that we can explore over the next couple of years to see if we've got something that might be better.
[laughter], let's sir.
And I know you touched on this is more for me you touched on Brazil quite a bit, but maybe just to kind of put a point on it.
The impact of co bid on the pilot programs, you're running in Brazil, I know, there's been a lot of interest and you you've had a number of people kind of sign up for remote using but is that.
To what degree that appreciably extended the the timeline for initial commercialization of that kind of call. It kind of the merchant chair of capacity do you have in Brazil, and my apologies if you're if you referenced fared remarks, I missed it but boy to what extent to what extent. If you can maybe measured in quarters do you think that kind of slides your timeline back into.
And just how you think about commercialized process.
Well I. It's a question. So the answer is I don't know exactly but we'd be talking for a while up by converting some of these otherwise that we had into.
Yeah binding agreements if you like we got our first three under so hundred 13.
Doesn't keeping me there's a gas today.
I think that stocks the ball rolling is giving the team confidence around the economics, they've got the deals done payback and that Randy you.
EBITDA or Capex, one capex EBITDA rather one.
I think at the end it we're going to try to report.
Three customers now see one negotiation so they should they should be converted relatively a in short order that lets see how do we go against that and then another 200 signed up to L. age or otherwise rather representing.
Million.
So you see idle that together, it's something like one and a half million tons of LNG for yes, it's it's a phenomenal volume but to answer your question more directly.
Three done let's see how we go through quarter to and let's see has got that part of starts to ramp up but I wasn't just being a slow start and then as we get better about rolling he said that you'll get more confidence.
The customers will have analogs to go buy in terms of yes. Other people have done. This I think it will speed up but we've taken a little bit of <unk> signed for the delay in Brazil, I don't think it's over Brazil, yet as well so.
Let's see how we go next quarter.
Okay perfect extra time guys appreciate it.
Sure.
Okay. Our next question comes from the line, Chris Wetherbee Your line is health and.
Hey, guys streams on for Chris just wondering.
Touching on Suji power plant exactly how many days so far in Twoq hasn't actually been on call and how should we really think the utilization and then sort of.
Separately is wondering if you could think help us think about the merchant opportunity merchant power opportunity there across the balance of this year just given covidien.
Basically the broader slowdown just wondering sort of.
At a better understanding of the outlook there.
Yeah. So.
So remember we came on.
T. One letter so were four in Q1 numbers not Q1 came on stream 21st as of March and in that period.
Actually the last three days the month that weve of coal to dispatch and prior to that it was it was commissioning so the numbers up 400000.
Megawatt hours relates to a combination of the hours dispatched under the PPA. So it was basically three days.
The the hours, especially during commissioning weeks I guess is a form of merchant power, but it wasn't done in a an economic because it was done because we had to run that machines down plus Q2 will be the first period of availability for merchant probably won't be it won't be truly rep. I don't think of adding capacity of the flat because we're still perform.
So additional guarantee and performance test with a contractor as part of the agreed program. So the focus it. Thank you by the focus was getting commercial acceptance that you've done.
And that develops there because we got a few other tests and things to tidy up as we go through but nevertheless, the should still be some opportunity for merchant power in the quarter as I said comes a a come up and then I think we'll see the third quarter be more representative of what we could probably do.
Fourth quarter, I would expect as a little blip in the.
Yeah, but expect that will come off as well and this is this is dominated absolutely by the availability of hydropower because these these plants are cold is back.
So they tend to fund clients.
When hydropower isn't available due to the reservoir levels. So [laughter]. So we've got a team in Brazil.
Thank you hi, the weather forecast that we are if we are still connected into the the weather what passing on the little into diamonds to be able to predict ourselves.
We think we might be cold for dispatch. So that we can obviously lined up whatever is that we're going to do around LNG.
Shipments.
Okay. That's helpful. And then also you mentioned the possibility of pipeline guys. Just wanted to get an understanding sort of the timing and sort of EBITDA potential from that particular opportunity in Brazil as well.
So the timing would probably think stage like star.
Don't pilots I'm thinking for memory, it's about 20 kilometers or something like that so the timing we'd probably.
Might be able to take if idea that later the sheet early next year. It just depends on how quickly we can get permits process that the thing that probably being slowed down the most through the cofunds 19 issues that jumped permitting process. So what will happen. They give you an uptick a little bit later after we if you go through that.
EBITDA.
We know the its.
Relatively low capex or potentially good EBITDA generator, where should we just talked very hard to team I'm really just started that she must show acquisition process of getting industrial customers or so and it's okay. Let us through this court the impressed with an update on that side in terms of.
Where we are on the actual on EBITDA less and less column you go any insight into the EBITDA numbers that potential from that.
Obviously, we wouldn't be doing if it wasn't the low capex fast it's an opportunity.
I think that's right, it's a <unk> excuse me.
Team, that's working they tend to sign up customers on us sort of with a base guaranteed fee and.
Upside chassis to should think of it as the revenue split being between.
And then.
Depending on.
Commodity price differentials, but in fact.
Oh, so here.
We respect that value it but before that translates into getting Mccarthy, we'd like to.
Sure and see how it works, but it looks like it looks very exciting but.
We need to feel confident we can we have a good handle on it at this stage it.
Positive, but let's say.
Okay fair enough well leave it there.
Makes sense.
Okay. Our next question comes in the light on current share your line is how often.
Good afternoon, and welcome to tell them.
Ian I guess you noted.
Golars low cost stuff LNG development strategy.
Certainly agree with that but the primary challenge has been not engineering or construction, but it really financing is the better matched the underlying contract duration.
Previously you've cited financing improvements opportunities in terms of better shipyard terms infrastructure equity partners and better debt financings.
Can you provide an update on these efforts.
We still going to break in the same direction. So you know obviously there are opportunities for you build.
There they got the more expensive.
But that the competitive in terms of capital cost ton and we would be targeting those customers that are.
They obviously have a good security around any potential deal that would result in financing or they could actually be part of the project that we'd be such that would be fairly large projects, but I. You know I think it's early days Craig if you have pretty much positioning nothing is happening specifically around anything close to f. ideal.
On.
LNG projects, but what we are doing.
Hi, good progress on or about three design. This this whole economic turmoil.
As if it ever I thought it was a little bit, but I guess the message I want to give a is that we're not we're continuing to develop our mark to design, we're continuing to stay in touch with customers. In fact, you know we're having children all the time.
Through our F.F. LNG development team to keep these opportunities War <unk> My my final pulling on as it where the markets are ready to address.
Surplus at the moment, but when we go into deficit and people can see divined pooling.
Requirement for more supply, we will definitely the front of the Q.
Very good.
And the speaking of LNG.
A a apologize I know, there's a lot already been asked.
On the BP Jimmy Force Majeure would it be fair to say the there's no reason.
The things that this could extend beyond the initially claimed one year delay it could well result, and comfortably less than a one year delay and could we get better color.
On this.
The extent of the delay.
Essentially by the Twoq call.
And with any cost over runs are associated with the delay.
Necessarily be 100% equity funded.
And do you have any rough range of how much those cost overruns could could be.
[noise], they're all perfect like sensible questions I'm not going to answer it.
[laughter] they would get like I said, we're going through process.
Obviously, if we're going up there where we are in Q2, if we if we sell things by the end of that and we'll do so but much as I'd like to explain more our confidentiality agreement actually precludes us from even talking about any.
I'm on where we're going that's just a ways and we respect fine and we continue our discussions and go through the process.
Fair enough sticking with less question sticking with UF LNG I just want to clarify on.
I believe your Perenco.
Totally contract was.
Specifically for 500 Bcl.
That was two trains would run is yours, but they could top third train and do it more quickly.
My question is if they don't typically at all for a time.
Or would they then be able to tap the third train.
Under the existing.
Contract to say within your timeline.
So we were quite a few backwards and forwards a unless it was with Frank I think we all have a comment desire to.
How's that contract and an eight year contract and less about the 500, just just because we've got to go but will you have referred to you or the half of experience of are working on the the.
It's just pulling back looking out to see his experience now working on the.
Right so.
I think you should think you by the as an eight year contract and whatever volume.
We can put through that.
It's up to two perenco and SNH depict the necessarily unnecessary.
Changes to any country agreements to apply that to happen, but I think that desire is is that to have an eight year contract and let's not worry so much but 500 does that make sense.
I see so back to affect your point before you'd rather maximize volume today so to speak.
Understanding that it won't be maximize the next couple of quarters.
Ah that they could.
Start topping Oh, the third train and Ah if eventually we get better markets and they want to upsize their their oil production associated US then you can discuss about topping the fourth train down the road.
Yeah, well all the above as possible.
And now I'm talking about the healthy once I've got something signs, let's talk about it publicly.
Okay. Thank you very much.
Thanks, Craig.
Okay.
Next question comes on the line up Grant Louis you blame tell open.
Yes, Thank you and good afternoon everybody.
I look like.
Hey, and could could you talk a little bit about you know a goal our power I mean, I mean, clearly as we look at this opportunity in the small scale distribution.
You know that Theres, a lot happening and maybe it pushes out a quarter to depending on.
Issues surrounding that control code at night, too, but but as we think about the opportunities a and then the slides you talk about ISO tanker trucks, you know some pipeline other small scale opportunities is there anyway to think about maybe the capex around this to meet this growth.
Demand as a kind of plays out and just kind of I mean, it seems like a great opportunity I mean is this just really.
Free money given that the infrastructures in place or they're going to be any calls on additional capital to kind of build out this smaller scale network.
So there's no such thing is progressing money and this this will for the US my they seem to come across but.
In terms of how good a pause to build a satellite.
Very detailed plan, obviously has a number of fronts. They want all progress and accordance to flatten. So that's you know the push ahead on the ones that we get the break so as we can important point is that as far as we know and as far as it lands that we see going forward all of the Capex.
We'll be funded from within Golar power. So there's no additional equity requirement to come at the that were aware of.
And that Capex will come from a combination of.
Income from so she bay and obviously, there's a code chips are owned by color Golar power and the potential for additional debt facilities that they have so go go oh its use them essentially at this stage in the development phase self sufficient for what it's got in front of it.
Okay, Great and then just a question around you know you on slide 17, yet you have that you know interesting chart, where were you talk about.
The spot prices for power I guess two questions around that one is clearly we can see the price is there anyway to kind of quantify.
Realizing that it is gonna be different on an annual basis is there but is there any way to think about me the call on that on that demand like in terms of megawatts on in terms of as we look at you know looks like we're moving into a strong part of the year in Q2 Q3.
Whether prices move higher is there any way to think about what that potential.
Capacity, Paul could be to something like surgery thing.
So the table on the bottom of that slide 17 to have our easy way to think about it so.
Noting that we've got 60 days notice for dispatches basically two months. If we're not dispatched we know that we have two months worth of opportunity and if you think about.
Auto being burnt through cargo so.
Six year instead of.
You need us of LNG.
Being burned over around 50 days, maybe 60 days.
If you if you how to think about how many he days.
In this in a 60 day period.
You know they ended the year you feel that we might have the opportunity to burn LNG at a profitable rates and look at the table basically shows if you look the clock you'd go about peaking at five hundreds.
And lastly, thinking three have the if you choose a number 200 or three on a per megawatt hour and we buy LNG.
$2 trillion view.
Got $12.7 million of EBITDA drop and if you say, it's really a case of.
Hi, they got having a so how about how many times is that so other than can occur.
The point that we're trying to make is there is there a spread between the the spot price that's coal in the region and the fact that there were the most competitive.
Clients out there and therefore, if anyone has the opportunity to make sure I met merchant power because as you pay.
Okay, Great and then just one more for me he kind of mentioned in the global opportunity landscape for global for Golar power I mean, clearly there's a lot for the company be doing in Brazil, you know you've got your gaining a lot of traction there, but but as we think about maybe the broader global.
Opportunity set.
I mean, how should we think about it clearly brazil's and emerging global economy, what kinds of accessible for teleport access.
Is that I mean is that how we should be thinking about where the other opportunities could they I'm just trying to understand I mean.
How we should be thinking about you know that that opportunity set globally.
Yeah, we got another name and then the countries over say, we went to harness patent that.
Yeah.
If you if you think about.
Countries locations within countries, where there's a population that doesn't have access to elect to stay or or doesn't have accessed clean energy. So it's currently burning definitely energy.
And whether an FSRU would be a fox solution.
This model of southern spoke would work than we were we have about 50 countries that we're working on right now you're right. The focus is on Brazil go to get that working so she they what they we started the rollout of the small scale proving the economics of the mud, though and then we can work out how do we transfer of I don't actually the possibly have hubs.
Yeah, I did have sort of strategic interest if you like and people that may they may want to partner with us to accelerate that they've been did you get the fat is obviously boots on the agreement some of those locations. Brazilian presence is very strong and I were not naive to think that you can do do never thing when looked at location you've got to be.
At the national about it but I have people on the graph that whether that's at the local partner or teaming up with somebody that's already that's it that's kind of process.
Focus is such that get Brazil, a for running so she they take small scale. We started lets get bakaray not done I'm and look at how we can expand that.
Ticket partnerships as we go.
Okay perfect. Thank you for answering all my questions.
Yes.
Okay.
Next question comes in the line of Jason and complement your line is helping.
Yeah, Hey, how's it going.
Yes.
Just going back to the.
Xcel opportunity you mentioned I think a couple of quarters ago, you saw the potential to grow EBITDA.
In Brazil within Golar power your share by $100 million between now and 2025 and kind of a ratable fashion is that in line with the opportunity set that you still see or or is that changed a bit.
Well I, it's probably went well what we talked about that was a very very small slow start up and I think we've proven that is a very slow start up I'm, which would be to happen obviously by the curve at night seems commission.
I just said previously let us get a progress through Q2 in Q3 on the run rate.
Converting these small scale.
A wise I think agreements and we'll be able to update you on on how fast that would going Oh, obviously, when we get the bakaray not terminal if I D done around but the idea that we'll have it so.
You know we can model all we want but this is going to be determined by physical progress.
Got it okay.
Thanks for that color and then just switching gears to the MLP a little bit.
Early you made some moves to shore up liquidity, there as well on the debt.
[music].
Payments I had to you you were able to push out do you see.
Our risk to the structure or I guess, a better way to phrase. It is how are you thinking about the MLP.
Within the current structure is there an opportunity to reach structure that subsidiary and I believe there's some recourse debt.
The MLP recourse.
Goal or the C Corp.
Is that something that you're planning to potentially have to deal with down the road.
I've got two comments to make what I'm looking questions you'd be better all hoskin pilot the MLP tolling on they are on behalf of a calendar do you want to comment on the idea that any of the Poland.
I I just like I was just made the point, Jason that I mean, certainly on on a month into this year, although not in a couple of your colleagues referred to the structured the group in the MLP spend I think what we what we intend to do and you had mentioned that I'll just grim close the point, it's going to sit down and look at the group as a.
Hello, and say right, what's the right structure, what gives us a maximum flexibility what's the right structure that gives us a maximum financing flexibility and what's the right structure that meets the needs of [noise].
Equity holders and bondholders them.
We're doing that and that we learned on one of your other colleagues talked about the carrier environment, we need to let out and that stuff that but when doing.
With doing a lot of thinking.
With a lot of modeling a lot of work and that will continue I think it's premature to say, which direction. We'd go what we would do but something that were absolutely looking at maybe the decision its status quo I'm not sure. It's too soon to say at least from my perspective, but it really is you know if you think.
The strategic questions, we've covered a lot about Brazil, but this is also one of them it's very important so.
We notice that the.
But there's a situation that we need to think hard about how we're thinking hard about it and I would say nothing more than that if it stays apologies that I call, but when the time comes well we have a plan and we think it works will be very specific with it.
Right now would make okay.
Understood.
Thanks for the color.
Uh huh.
Okay. Our next question comes in the laying off and Liam Burke United's how often.
Thank you good afternoon.
And could you give me a little clarification on the discussion of the build out of the small scale LNG customers you mentioned incremental capex on the project would be $8 million and that would generate.
7 million in an annualized EBITDA.
That's the type of return you can expect from the entire project based on additional Capex and then the additional 200 L. wise.
[laughter].
Sure answers, we don't know because you haven't done those deals yet, but think about as ranging from maybe if you look at capex to EBIT done one times to maybe maybe three times or something like that I spread across the the two customers. It's a very Ah smoke.
Capex fast payback business, the each customer is different and obviously dependent on where that customer as well how to get in there that are allergy.
What kept needs to be provided no they get it there and that influences the cost of the cost of putting that that sort of supply chain. It. So I would suggest thinking about it between one and between going in three times.
As as a range.
Across those those especially we feel this.
What we like what I think we'll do so we'll update you as you go so as we go through the quarters. So quarter. One three customers 21 to negotiate like 200, equating to 113000 cubic meters of LNG 600000, and then up to a monster sixmillion, if we ever get that so I will.
And that will probably update you on that so the capex multiple paid back.
Arrangement that we can you can come up.
Okay, Great and are on a go our Viking is a is that project on schedule.
I haven't got liking that we had a bit of delay.
<unk> the year, so it's been converted a yard and who dog and of course, a China because she was hit pretty hard with the early stages of draw request.
He is working hard to truck that back. She said just so that may be done a delay, but if there is it's going to be relatively short so there's a ever and everything else and the project is on track.
We lifted the main compressor module onto the shipped last because the week before so you know, it's going well and everyone's doing a a great job.
Great. Thank you and.
[noise] operate there were going to have to wind up and interest this time I'm afraid.
Hey that sensor.
So in close Nuestra me I'd like to thank everyone for the participation and interest in gorilla.
We're certainly weathering the storm and we think we've got exciting prospects for the future. So please stay sex we look forward to talking to you next time, Thank you and goodbye.
Thank you.
I mean it does include a conference for today. Thank you for but we did you mean all disconnect.
[music].