Q2 2021 Keyera Corp Earnings Call

Hum.

Hum.

Okay.

[music].

Sure.

Mhm.

Welcome to precision please hold for the next available operator.

[music] welcome decision.

And please hold for the next available operator.

Hum.

Okay.

Hum.

Okay.

Okay.

Okay.

Hum.

Hum.

Right.

Okay.

Welcome to decision please hold for the next available operator.

Okay.

True.

[music].

Uh huh.

Hum.

[music].

Welcome to precision please hold per day, thank you for calling especially on what comes from so you're looking to join us.

Hello.

Hello.

In the North region, and Thats led to record quarterly margin contribution from the segment.

Of note the Pipestone plant operated at a high utilization of June well ahead of our original expectations.

In mid 2022, we look forward to welcoming and additional producer with contracted out for the remainder of the plant under a long term take or pay agreements.

And our sales region. We're also seeing an increase in drilling activity in our capture areas as properties change hands to stronger better capitalized producers.

Our liquids infrastructure segment continued to see high demand for its services delay.

Deliveries from our condensate system remains strong as oil production continued to ramp up.

Although we had some planned maintenance at our Fort Saskatchewan complex, our fractionation assets remained highly utilized as did our storage facilities.

The liquids infrastructure segment generates returns that are amongst the highest in our portfolio with high barriers to entry and stable long term cash flows.

We will continue to direct most of our future growth capital to this business segment, which includes the Kaps pipeline project currently under construction.

The marketing segment continued to add significant value enhancing overall corporate returns.

So we leveraged our infrastructure assets and logistics expertise connect customers to the highest volume markets.

Due to improving commodity fundamentals and our disciplined risk management program. We now expect to come in at the upper end of our marketing guidance of $260 million to $290 million for 2021.

Turning to our company's leadership and here I would like to inject a note of pride and tears brand strength and succession planning, which allows for few smooth transitions.

On November 1.2021 broadly lock senior Vice President and Chief operating officer will retire from Kiera.

Brian has been with us for 17 years and various senior executive roles.

We thank you Brad and wish you well on retirement.

Succeeding Brad will be Jared the stealing who has been appointed senior Vice president of operations and engineering Jarrod.

<unk> is currently vice president of operations for the gathering processing business units and.

That has been with <unk> since 2000 for.

Our aim is to deliver superior shareholder returns over the long term and we will do this by focusing on capital discipline, increasing the competitiveness of our assets.

Strengthening our integrated value chain and demonstrating leadership in ESG performance.

Overall, we're pleased by our results year to date and encouraged to see an increase in activity in the basin on.

Now I'll turn it over to our lean to provide an update on our Q2 financial results.

Thanks, Steve.

Adjusted EBITDA for the quarter of $224 million.

The flat, 23% increase over the same period last year.

Of this yourself included the impact of a 20 billion dollar non cash flow from.

The long term.

Distributable cash flow of the $148 million.

Compared with $158 million in the same period last year the.

The decrease was mainly driven by higher maintenance capital spending in the quarter.

Net earnings of $79 million.

The gathering of processing segment delivered a record margin of $86 million.

As we reached new highs at both the Wapiti and Pipestone gas plants we.

We delivered $96 million of realized margin in our liquids infrastructure debt.

This result includes the impact of the plant maintenance outage at our Trs gaps on complex.

And our marketing segment delivered a realized margin of $78 million.

<unk> disciplined risk management approach Watkins of future cash flow is the.

Especially important in the context of <unk>.

Our pipeline project.

Couple of of note with respect to guidance, we now expect our realized margins from the marketing segment and near the.

Upper end of our guidance range.

Second as a result of strong performance of bar this year and our expectations for the balance of the year. We now expect cash taxes for the year to increase for the $30 million to $40 million range.

We exited the quarter on a strong financial position net debt to adjusted EBITDA of 2.7 times.

While within our conservative target range of 253 times.

The company has $1.5 billion dollar for the available liquidity with the minimal near term debt.

I'll now turn it over to Jamie to provide an update on our commercial activity.

Thanks, Lee and good morning, everyone.

We remain constructive on the pricing environment for the commodity as we move to our systems.

For natural gas LNG off the West coast of Canada and major pipeline.

Spansion will enable more exports to key growth markets supporting the continued strong pricing environment for natural gas our outlook for propane pricing remains strong with low levels of inventory throughout North America currently and the potential for strong demand in the fall.

Our assets give us the ability of the store product during low demand seasons. So we can maximize margins by selling to the higher demand fall and winter seasons.

We were able to lock in attractive butane supply costs for the 2021 contracted for.

For the value of our isooctane and blending the businesses.

Overall strength in crude prices and our Bob supports increased value for ISO oxy and condensate.

And finally condensate demand continues to decline as our oil sand customers growth into expanding oil pipeline the export capacity.

The current price environment and renewed optimism has incentive many producers to increase drilling activity throughout the basin.

Pushing up volumes across our integrated value chain.

I'll now turn it over to Brad to provide an update on the Capex project and speaks to our operational highlights.

Thanks, Jami I am pleased to share that we have moved into the execution phase on the <unk> pipeline project with construction of officially underway in.

In Q2, we successfully completed our first horizontal directional drill for the first river crossing of this project are.

A key part of our execution strategy is to complete the more challenging sections of construction early.

It's a great first step to get this river crossing completed.

Cost of the project, including steel and labor are under contract with inflation protections in place.

<unk> remains on track and the pipeline is expected to begin operations in early 2023.

At the Wild horse crude oil and blending terminal in Cushing, Oklahoma, we are fully operational having completed commissioning in July.

The new terminal includes 12 above ground tanks with $4.5 million barrels of working storage capacity.

The connected by pipeline to 2 existing storage terminals in cushion this business will be ramping up through the remainder of the year and into 2022.

Turning now to the authorization program in our G&P segment, we safely completed turnarounds, but the Zeta Creek in Brazeau River gas plants in the second quarter. These were completed on time and on budget because of our integrated network of plants, we were able to redirect volumes to our other facilities minimizing any impact to our customers.

And overall volumes.

As part of our plant optimization program, we successfully shutdown the browser north gas plant in July and will be shutting down the Racine facility in the coming months.

We expect to realize the full benefits of the optimization program on completion in 2022.

In July we completed some work at the Wapiti gas plant the <unk>.

Facility was taken offline for about 10 days to install a new waste heat recovery unit and perform other minor maintenance work.

This planned outage was completed on time and on budget and will support the future reliability of this facility.

With that I'll hand, it over to Dean for some closing comments.

Thanks, Brett.

Curious value proposition continues to be the delivery of the sustainable and growing dividend.

That proposition is underpinned by low debt leverage and investments in projects that generate strong returns, which contribute to expanding distributable cash flow per share.

Looking ahead <unk> will continue to be focused on being a safe reliable and sustainable operator dedicated to serving our customers and generating value for our shareholders.

We're excited about the future and we're confident we have the culture people and assets to deliver results.

On behalf of <unk> Board of directors and our management team I. Thank you for your continued support with the.

That I will turn it back for the operator for Q&A.

Thank you, ladies and gentlemen, and we will now begin the question and answer session should you have any questions. Please press star followed by 1 on you touched on film Youll hear 3 of them from acknowledging the week plus and your questions will be bold in the order you received should you wish to decline from the polling process. Please press star followed by 2 if you're using.

Speaker phone please lift your handset Preston any key.

1 moment for your first question.

Your first question comes from Matt Taylor with Tudor Pickering.

Go ahead.

Yes, thanks for taking my questions here guys.

Sorry, the Aaas.

I wanted to talk about the opportunities youre seeing that are possible for that facility to take advantage of of the clean fuel standards that could come next year I know you've talked about it.

Briefly in the past and I'm wondering if you are looking at having to spend capex or our other opportunities now that we're getting closer to when it might come.

So Matt Thanks for the question.

Yes, we definitely see some opportunities in the majority of them are really around the.

The emissions intensity optimization opportunities.

On the potential for a biopsy.

For that facility as well for ultimately creator.

Our bio isooctane.

Nothing to report as of yet, but we're certainly dead.

Dedicating resources to it and optimistic that we'll be able to.

Show some need for benefit to our shareholders in the future.

Okay. Thanks for that Jamie would you say, it's still fairly early stages or are you starting to move into to the thing.

Thinking about project types of project size of the project.

Yes.

I would say its early stages with respect to us being able to announce the project, but we're well.

In the.

In the process of evaluating the opportunities and doing the necessary engineering work to to be able to ultimately sanction those opportunities.

Great. Thanks for that and then I wanted to touch on.

On your comments about propane strengthening significantly.

On my understanding of liquidity is quite weak in Alberta, and you hedge most of that against the U S. Benchmarks that have any broader comments about how you are positioning the business to take advantage of of better long term pricing and whether that will materially impact the results going forward.

Yes, well a couple of comments as debt.

As we noted the inventory of propane in North America is.

At lower than usual levels.

And in order for.

Propane to the incentive to be put into storage that ultimately will serve of what we anticipate will be the winter demand.

Going to have to see an increase in pricing in the forwards otherwise those barrels are going to find their way into the export market. So just from a fundamentals perspective work, we're very bullish and Thats 1 of the the primary reason why we believe propane prices will have the strengthen between now and the.

Fall and winter.

<unk> season, now prices are already very strong.

And that's driven primarily off of some.

Some supply demand dynamics, but also more so on the global demand.

For that product so.

As we've shared with people before we have the assets in place whether it's storage in order to logistically to be able to hit the highest value markets.

Through North America growth North America, when those higher prices ultimately materialize and we're using our risk management programs. The basically work on those margins when we see.

Those differentials materialize and the last point I'd make is obviously the strong pricing for propane.

Supports our producers that is going to allow them to see the economics of drilling more wells and also sees the value of our deeper value proposition and our gathering processing assets.

Great Thanks for that.

Jamie just a follow up to that is that.

The positive fundamentals is that reflected in your <unk>.

I'll provide commentary now that youre looking at the top end of the marketing guidance.

It would be Matt.

Great. Thanks, that's all for me.

Thank you. Your next question comes from Rob Hope with Scotiabank. Please go ahead.

Good morning, everyone and I guess first off of Brad all of the <unk>.

First on the new endeavors and congrats.

Thank you and then.

And then maybe just turning the attention to the kind of go forward outlook here.

The volumes are increasing nicely offset by of some kind of heat related weakness in June.

But how are your conversations progressing with customers regarding potentially to add some contracted volumes on your on your northern plants set of or even your southern plants on I guess on a.

A follow on would be kind of how are conversations going on caps for additional contracts.

Okay, sorry, so I will start with the first question.

The.

The fundamentals.

Are really starting to translate into increased drilling activity that we expect to see positive for the continued momentum.

Into Q3 and into Q4 for the remainder of the year.

From a contracting perspective, typically we wouldnt see longer term contracts unless we were looking to spend capital. So.

We're just talking to existing customers.

Round, our facilities that ultimately are giving us positive indications on the increasing utilization.

In our gathering and processing facilities.

Specifically, the south but also around our simonette gas plant as well in the North Wapiti and Pipestone are contracted primarily to 2 existing producers that similarly or.

Drilling actively and we're starting to see some positive increase in volumes there as it pertains. The caps I think we've talked scope is probably on the previous conference call is that as we get into the construction.

In full force on that facility or that opportunity and ultimately give line of sight to being able to be complete in Q1, 2023, which is certainly still our expectation.

We expect that we're going to be able to.

Increase the contracting but at this point.

Customers are waiting to see how we're progressing on on construction. The 1 thing I would note is our existing producers were certainly very encouraged with respect to their ability to meet their or exceed their contracted volumes on caps and some of those customers have step up rates of which we're obviously.

<unk> of talking to them of both the potential for those step up rates, but similarly like any auction there of.

Being patient with respect of when they might want to exercise of those step upwards.

Hey, Rob it's Dean.

Maybe I can just add a few other comments I mean quite frankly 6 months into the year were sort of surprised that maybe how fast the activity rebounded in the if you look at drilling activity you're back to sort of 5 year norms.

But but overall I mean, obviously balance sheets are improving very quickly and as you would know a lot of the producers have of hedge volumes, but those hedge volumes, especially in the first quarter on the second quarter were hedged debt low values because they would have put those positions in 2020.

As every quarter rolls off so you get into Q3 Q4 and into 'twenty 2.

Those hedge floors are at much higher levels. So again, I think the ability and actually capturing the economics of the pricing environment that we're seeing today, that's going to be more fully realized as we go for so again generally the feedback we receive from our customers is that they are going to ramp up activity in the bigger way as we look forward towards the end of the year on into <unk>.

2022.

Maybe the other comment would be as debt I think.

And some of the M&A activity that we've seen over the last 6 to 9 months is probably helping us because there are some <unk>.

Players.

That weren't very active and some of the areas that we have facilities.

Again under new ownership better capitalized companies.

They are demonstrating that theyre going to be more active so again overall I think thats a good tailwind for us.

Alright excellent I appreciate the color I'll hop back on the Q.

Thanks, Rob.

Thank you. Your next question comes from line that is or Gillies with TD Bank. Please go ahead.

Thank you first of all I wanted to congratulate perhaps knock on of successful career and wish him all of the best.

Thank you Lynn.

Thank you.

I'm wondering as it relates to your gathering and processing.

<unk> strategy.

Your line starting.

Of realized benefits already on the first half of this year I'm wondering how that might ramp up.

For the balance of the year on Q3, and Q4 on what factors might determine where in the $20 million to $30 million range that current achieved in 2021 and Mike.

The it ramp up further potentially if you only achieved at the lower end this year.

Achieving for more.

2022.

Linda if I mean, I can start with that.

We have certainly started to see the benefit in the first half of the year. It does take time for some of those operating cost as we continue to shut down plants to come out of the system. So we expect that to continue and we have of final plan yet to close in 2020 Q. The will of course. The some of these are costs that are with <unk>.

In our control.

We have.

But there will be some offsets such as power I would say that that could offset some of that but we are within that fall within that range.

The spread the only other thing I would say is I think the.

The optimism we are seeing out there in volumes is certainly.

The positive tailwind as well so.

Our strategy was to to get our cash our cost structure in place, but to still provide opportunity for growth volumes to land within our network and I think we're starting to see some of that occur and we're optimistic that that's going to continue to occur in the back half of this year. The 2022 of them will allow us to hit the kind of objectives that we've laid out.

Thank you and on a separate note I'm just wondering as it relates to.

Working towards on lower carbon future, we're starting to see some partnerships announced and also.

Some positioning in terms of different parts of the value chain as it relates to carbon capture hydrogen et cetera, I'm wondering how you think about.

The levers to accelerate that transition as it relates to potential acquisitions or divestitures or partners.

Sure.

How do you think about.

Your in house competencies versus how you might.

Look for other ways to position yourself for those opportunities.

I learned the theme.

The good question.

Obviously, we think that we're very well positioned for for.

For lower carbon future and.

It's something that we have a dedicated team our new ventures team is headed up by the Bradley suffer.

And really they're looking at new opportunities.

To help us transition in the future.

As you know we have a lot of partnerships. So we're not shy about sort of leveraging our strength and combining that with strength of other other partners to create a better result.

We think about this from a macro perspective, I think that we need to be thinking more about how do we make are based on more efficient to create create solutions like this.

And working together to make that happen because I think if we all try to solve.

Again carbon transition of our lower carbon future by ourselves it won't be as efficient as if we try to do it together, so we've talked a bit before about.

Some of the assets that we have the leverage and we have asked the guests injection of 6 facilities already.

<unk> can we leverage assets actually capture and store of more more carbon using existing facilities and things like that we were definitely looking at we have our 300 acres of land in industrial Heartland debt.

And the pipeline Thats rated for hydrogen that basically extends through the industrial heartland as well. So we do have some assets and expertise to bring to the table to help enable.

Again hydrogen of development.

But again.

We are certainly open to working with others that are more experienced in that space again leverage combined expertise is to make it successful.

But at the end of the day.

For all of these ideas, we certainly know the world's moving this direction. It also has to be profitable for our shareholders. So again, we're also working with the <unk>.

The consumers in the future.

Try to underpin that.

That service. So we're trying to work with different partners at the same time against the threat advanced these ideas.

Thank you I will jump back in the queue.

Thanks Linda.

Thank you your net.

Question comes from Ben Pham with BMO. Please go ahead.

Hi, Thanks for Mario on a continuing kind of the transition if you could talk about half the cash on cash and you talk on hydrogen.

No.

Kind of on the renewable power.

Purchases.

What about the Ccs.

Opportunity I know, Brian is there any any positioning from your perspective that you could benefit directly or indirectly from that.

For the benefit from a what was that again Ben.

On the carbon capture.

Average opportunity in Alberta.

Yeah.

I'll start I think.

Certainly as we look at.

De carbonization and the ebb in the importance of stats when hub and some of the the existing infrastructure. That's there of new infrastructure, that's being proposed.

I think theres lots of opportunity for us to 2.

Participate.

Both on the equity perspective, but also just from a service perspective, the health Decarbonize, our existing facilities and support other producers in the area with their decarbonising efforts as well and I think as we're thinking about our new ventures team the Jamie referred to earlier.

It's certainly 1 of their key objective is to look at all of the various opportunities that exist out there to transition as an organization and to support industry transition and try to find the places where we can play.

Okay.

And then maybe on <unk>.

On the growth initiatives last week.

We've seen frac capacity rich deep level of if you were commenting on potential expansion.

On the fractionation side are you said something thats the key.

The heating up a bit more on air for conversation.

Well, it's obviously something that we're looking at.

There's lots of things since our last conference call the debt.

Go into the dynamics of the demand for Frac, and ultimately where barrels are going on.

<unk> barrels will place the place from Frac and ultimately future barrels barrels as well. So those are all of the dynamics that we looked at at the end of the day cap is an extremely strategic project for us and it's going to.

Supply barrels into the Fort Saskatchewan area and into our facilities that we believe will enable us to be able to look at downstream capital investment opportunities that will be very accretive and beneficial to our shareholders, whether thats on the condensate side or the <unk> side.

Of the caps so.

Yes, it's definitely something that debt.

We're looking at and.

I believe that once we get line of sight as to the.

Barrels showing up.

We'll be able to take advantage of debt.

Okay.

Then my last question for you.

Do you think you have enough.

His ability of lineup set of kind of moving towards guidance on EBIT on a more of a broader well.

Level 3 assets that you got the marketing.

Guidance, which is part of the artist want to configure out, yes, cash processing stabilizing cost of migration.

On the infrastructure kick of pay that.

Is that all of the long term clients here too.

Consider that in the future.

Hi, Ben It is something that we are considering youre absolutely right marketing is the biggest piece, sometimes the timing of that we don't know that until our contract season is.

Is underway or completed for that's why we provide that in Q1.

But the that is something that we are considering and.

Looking at especially after the half better line of sight into the gathering and processing.

The business on a continued to stabilize.

Okay, great. Thank you and and also on congratulations at the time of correct.

Thank you Ben.

Thank you. Your next question comes from Robert <unk> with CIBC. Please go ahead.

I was just wondering if you had some initial thoughts on the.

Of over the River first nation case on what the pipeline for future development.

Yes.

Rob.

Good morning.

Yes, obviously.

We're very aware of the decision and we we've reviewed it.

And we've talked to our customers about it and consistent with them and other stakeholders. We are waiting the outcome of the negotiations between the blueberry River per station in the BC government to assess potential impacts for.

But really overall it.

To us it underscores the importance of having strong relationships with all of our stakeholders and obviously that includes the indigenous community and we're it's something we're very committed to.

Okay and then.

It looks like Brookfield closing in on our buying in the pipeline here.

Do you see any opportunities for care of falling out of that perhaps the.

The opportunities to work more on calls home of Brookfield.

Well I'd like to my earlier comments.

Rob I mean, obviously, we're always opportunity driven.

We work well with others.

That would apply to everyone, including Brookfield, So if there's opportunities to work with them assuming that the.

They take up the required amount of shares.

We will certainly pursue that opportunity.

Okay last question for me the add some comments on the MD&A about.

So the condensate contract renewal so I'm wondering if you could talk about the.

The rollout of commercial terms there.

There was some volume increases on some extensions, but just the relative economics.

And any comment on what the net.

Exploration schedule looks like from here.

Yes, Robert.

All I can share is that those contracts would have been negotiated on similar terms and traditional length of contracts than we would've seen in the past.

Okay and with that.

Congratulate problems of retirement.

Thank you Robert.

Thank you.

Your next question comes from Robert Kwan with RBC. Please go ahead.

Great Good morning.

You kind of come back to it.

<unk> here just around the targeting the way you look at your asset mix and your contracting Mac.

And I guess the first question here is as you've said in the past that you don't want to get any bigger in G&P and really trying to focus on more take or pay.

<unk> is that still the case, particularly given just the comments you've been making around producer activity on your drilling outlook.

I would say I would characterize it.

Robert.

We want to fully utilize our our GP assets too.

For the best of our ability and the capacity so.

We think that there is more growth there and so we think that thats going to be of larger contributor in the future to our to our company.

In terms of capital investment in the future.

We see better opportunities on our on our liquids infrastructure side of our business and historically, we've generated strong returns from it and again the more based on type assets, where it doesn't matter where the natural gas is produced.

The NGL stuff the to find the way to the hub and a lot of that hub is obviously in purchase Kathryn.

It's not to say, we won't be making.

Theres, probably a lot of small enhancements and things like that that could generate strong returns, but again, our focus is going to be about maximizing what we have.

And the just as you talked about larger capital does that for the presumably that also applies to the acquisition.

In the G&P side.

For a lack of a generally I mean.

Yes.

I'd say, our M&A strategy is that it has to be strategic it has got to be accretive. So we're we're trying to always add value for our shareholders. So it's got to be accretive on a per share basis.

We have to be consistent with our debt metrics and creating credit rating targets.

So.

When we think about all of the strategic fits could there be G&P assets.

Possible.

But right now we see the best opportunities on the liquid side of our business.

Got it and as I think about contracting next on on acquisitions, just coming back to the Brookfield discussion.

Given what <unk> heard today about potentially.

And of splitting up some of those assets.

Would you be interested though how do you think of I guess, how do you think about <unk> NGL assets given.

On a very significant proportion of them have commodity exposure. So how do you think about your own marketing exposure in the mix and then potentially whether it's fees or just the other assets taking on even more commodity exposure.

Yes.

I can't speak specifically, the IPO, but generally our goal is to add more contracted cash flow stream.

And I guess when you look at projects like the caps.

That's that's exactly what's going to deliver is just a very strong.

Cash flow stream.

And a lot of the other assets that we look at it as well.

The 1 thing I would say, though is in terms of our overall asset mix is that.

Sometimes we have outsize years in our winter marketing business, and we're not going to turn it away I mean, obviously that enhances our overall financial position and funds of other projects, we don't count on it.

But it's possible that it happens and sometimes it from optical perspective, it looks like we're 2 weighted to share.

For our marketing business, but again overall, if you look at just the pure growth in our fee for service business, we want to continue to grow that part of it.

Perfect. If I can just finish on a micro question here on G&P looking into the third quarter. So you highlighted a couple of headwinds in the ethane curtailments that Randy and I its about $5 million.

Somewhat similar impact on the Wapiti outage.

From a margin perspective.

Are there other kind of either offsetting factors.

So those amounts and I guess the other thing just as I think about the Q2 performance.

What was the benefit if any from some of the volume you received related to third party.

On outages.

In the quarter.

Yes.

I'm racking my brain, Robert So let me thanks Budd.

I'm not aware that we've with the benefited at all in Q2 from any third party outages I guess there was 1 remind me there was 1 of the north where we would have seen some minor volumes from from.

The large facility outage.

But.

Other than that there wasn't a lot of uptick on our business as a result of third parties to answer. Your first question, though is is that yes.

Yes, we're on.

Obviously, the DAU outage is going to impact of all of all of the industry, but we also see some some opportunities coming out of that as well from a perspective of.

Yes.

I need to.

To manage.

Some liquid debt otherwise.

Mike might be displaced.

Somewhere else so.

It might show up in a different part of our business but.

There is some opportunities because of our integrated business debt that will be able to realize as a result of that outage as it pertains to some of our assets around Fort Saskatchewan and in our marketing business around G&P.

I think we're just being repetitive with respect the fact that we're continuing to see.

The positive volume momentum.

We'll see in Q3.

Yes.

The only sort of headwinds.

We see the we don't think of material Robert would be.

Obviously, we've had some from issues in terms of high ambient temperatures and that affects of the performance of our facilities. The we saw that more so at the end of June early July but again.

I wouldn't say that that would be super.

Super significant.

And I think we're into August sales. So hopefully, we don't see sort of 35 plus days.

For slide plus degree days in the future.

And of that and just our downtime associated with the the waste heat recovery bundle that we talked about.

Perfect. Okay. Thanks for the answers that's all for me and Brad Congrats on all the best in retirement.

Thank you Robert.

Thank you.

There are no further questions at this time Mr income person you May proceed.

Thank you all once again for joining US today, please feel free to reach out to the Investor Relations team. If you have any additional questions. Thank you all have a great day.

Yes.

Ladies and gentlemen, this concludes your conference call for 2 day, we thank you.

You can ask that you. Please disconnect your lines.