Q2 2021 Exterran Corp Earnings Call
If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.
As a reminder of this conference is being recorded I would now like to turn the conference over to your host Mr. Blake Hancock, Vice President Investor Relations for Exterran Corporation. Thank you you may begin.
Good morning, and welcome to Exterran Corporation's second quarter 2021 conference call.
With me today are experienced president and Chief Executive Officer, Andrew way, and David BARDA experienced Chief Financial Officer.
During this conference call, we may make statements regarding future expectations about the company's business management's plans for future operations or similar matters. These statements are considered forward looking statements within the meaning of the U S securities laws and speak only as of the date of this call the.
The company's actual results could differ materially due to several important factors, including the risk factors and other trends and uncertainties described and the Companys filings with the Securities and Exchange Commission.
Management may refer to non-GAAP financial measures during this call and accordance with regulation G. The company provides a reconciliation of these measures and its earnings press release issued yesterday and a presentation located in the Investor Relations portion of the Companys website with that I will now turn the call over to Andrew.
Thanks, Blake and good morning, everyone Exterran performed well and the second quarter as we remained focused on employee safety operational efficiency strong execution of our global backlog and positioning the company to capitalize on the robust commercial pipeline that continues to grow.
Overall, the quarter came in line with our expectations on EBITDA as adjusted basis up over 40% when compared to the second quarter of 2020.
While the COVID-19 vaccine and appear to be working to lower the severity of the impact of the virus the latest variance of starting to create potential challenges.
Having traveled for different parts of the world. Since we last spoke the operating environment continues to be dynamic we are beginning to see some logistical challenges and important equipment and people for facilities and sites beginning in the third quarter.
We continue to mitigate most of these challenges given our global supply chain. The Covid continues to present and provides the greatest risk, we see and the second half of this year.
Another topic that continues to come up with investors and others since the last day and has been around inflation.
I would say we have 3 distinct areas of commercial checkpoints, where deflation can impact us the.
The first b and projects that are operational and generating revenue and day, we typically have annual escalation clauses, allowing us to increase rates for inflation and.
The second area would be project under construction here, we leverage our global supply chain to help minimize and offset inflation costs were.
We also have the ability to work with our customers as well on the passing through material inflation changes also afforded us to minimize our capex while margin impacts on the projects.
And lastly projects that are and the bid phase the.
The biggest adjustment we have made here is to reduce the bid validity to minimize time between bid and award to allow us to have better control over our costs.
Overall, I would say, we have not seen any material impact on our costs over the past several months, but continue to monitor the inflation globally.
Commercially we continue to further our discussions with our customers globally and continue to feel strongly.
And the over $3.5 billion opportunities, we see in both oil and natural gas and water products. The middle East continues to drive the bulk of these opportunities, but we all see and incremental gas and water project demand in Latin America and Asia Pacific.
We also continue to have constructive conversations on renewals and Latin America we.
We signed over $30 million and renewals or new contracts and the region and the second quarter and over $100 million. During the past year. There are additional opportunities that can meaningfully add to our backlog without any material capex needs.
And on the waterfront we.
We continued to walk to work towards at least 1 more incremental eco project. This year. This would meaningfully add to our eco backlog and has the potential to make water account for nearly 30% of eco backlog and the future.
As we look at our technology, we continue to see applications across many industries, including petroleum and mining and where the technology originated and municipal water waste to name just a few.
And as we continue to build our opportunity set and book of business. We're also beginning to look at what will be needed to begin branch and of technology out into other sectors outside of oil and gas.
We are confident that our water business is poised for growth that will drive enhanced financial performance and compelling and compelling value creation.
Looking over the past quarter commercially and operationally littlest changed.
We continue to progress well on both fronts and are excited about the transition and transformation that is underway for the company.
Dave will cover the capital structure review process that should only help accelerate and drive our ability to continue to push and win new opportunities and.
With that I will now turn it over to Dave.
Alright, Thanks, Andrew for the quarter, we delivered EBITDA as adjusted of 35 million on revenue of $146 million, which was in line with our guidance. This resulted in the EBITDA margin rate of 24% flat for Q1, and a significant improvement for the 19% reported and Q2.2020.
And since we have closed the sale of the U S compression fabrication business, our EBITDA margins have exceeded 20%.
From a segment perspective revenue for contract operations was 87 million, while adjusted gross margin was $60 million, resulting in the segment gross margin rate of 68% revenue increase sequentially, primarily due to the acceleration of deferred revenue productivity and better operating efficiencies.
Backlog at the end of the quarter sort of approximately $1.2 billion.
For Ams revenue was $29 million and adjusted gross margin was $6 million. This resulted in the segment gross margin rate of 20% revenue increased 17% sequentially. The first quarter seasonality of abated, while adjusted gross margin was flat.
Revenue in the product sales segment was $29 million and adjusted gross margin was $2 million resulted and the gross margin rate of 7%.
Revenue was flat for the prior quarter with continuing COVID-19 shareholders impacting the ramp of our Middle East project and.
Adjusted gross margin declined sequentially due to higher under absorption.
Our product sales backlog was $411 million at the end of the second quarter compared to $445 million at the end of the first quarter.
Moving to the balance sheet, our total debt at the end of the quarter was $575 million, while our net debt was 529 million our leverage ratio improved to 3.6 times and compares to 3.8 times at the end of the first quarter.
Our total available capacity was $148 million at the end of the quarter, our available capacity grew by over $35 million from the prior quarter.
With respect for the third quarter, we expect adjusted EBIT will be and the mid to high $30 million range. We expect continued progress on key projects and the Middle East region, which will drive a meaningful increase and the second half product sales revenue for.
And for the year. The outlook has remained unchanged as we expect adjusted EBITDA to be between 150 and $160 million.
Clearly this guidance suggests a ramp and our Q4 expected EBITDA, which was driven by our current view of the pace of project execution and the middle East.
As Andrew mentioned earlier, the Covid pandemic remains an ongoing challenge that will continue to present operating hurdles.
And how the impact from the different variants of unfolds and the second half of the year will dictate our ability to hold guidance.
That said, our employees suppliers and customers have done a phenomenal job anticipating issues and taking appropriate actions to prepare us to execute as well as possible.
SG&A for the year and still forecasted between 125 and $135 million Capex for 2021 is expected to be between 75 and $85 million with Reimbursable capex of around $35 million.
Maintenance and other capex should be approximately $20 million.
And lastly, I want to take a few minutes to discuss the ongoing capital structure review I'll remind you. This review is being undertaken to enhance our liquidity to continue to take advantage of the pipeline of opportunities we are tracking.
On the Q1 call, we didn't set a timeframe and this effort blends operational variables with financial as we define and the best possible path forward and both the short term and over the longer term.
With regard to the longer term, we have had some very productive conversations with several potential partners and have made good progress in developing the structure of the allow us to secure additional of eco projects without the capex burden on our balance sheet.
And with that I'll turn the call back over to Andrew for his closing remarks. Thanks.
Thanks, Dave we continue to focus on the things that we can control, including our cost structure customer relationships and market, leading products and services. The Sia the organization into the quarters to come and into the following years and project execution is key to our success over the near term and we look to see our opportunity.
Set start to convert to orders over the next several quarters the set the stage for our 3 year outlook.
Exterran and remains on its transformational journey and given the tremendous market opportunity and both natural gas and water. We intend to further amplify our leadership in this space with the commercially proven and fully integrated solution.
I am very excited about the opportunities that lie ahead, and look forward to the growth and value ex down and will continue to provide and with that I will now turn the call back to the operator.
Thank you at this time, we'll be conducting a question and answer session. If you would like to ask a question. Please press star 1 on your telephone keypad, a confirmation tone will indicate your line is and the question can you.
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And the interest of time, we ask that you each keep to 1 question and 1 follow up.
Our first question comes from the line of Kyle May with capital 1 Securities. Please proceed with your question.
Hi, good morning, everyone Hey.
Hey, good morning.
And maybe maybe starting with your guidance as.
As we look at results for the first half of the year and the initial look at the third quarter, Dave You mentioned, the big ramp and the fourth quarter can you talk more about what's driving that growth and then maybe how that momentum carries into next year.
Yes, so maybe I'll first tell you, what's not and the guidance is really some assumption on global markets improving dramatically.
I think we continue to see tremendous amount of opportunity as we share of the pipeline.
And as large and frankly seems to grow every day. So there's a lot going on but we haven't assumed that those turn into orders that are actionable and the short run, but what we do have and the guidance and what's driving it and I think the better news is it's really a function of the backlog we have so certainly there are some.
The <unk> side book and ship and so for us that you make certain assumptions for but it's really.
Highly dependent and based on the the backlog we have and the projects, we have going into the middle east or for the significant part of what's driving that and.
Although we are certainly cautious in this environment with Covid variance. The continue the raise their head and it's our best view of the project schedule. So that project is built after obviously a long COVID-19 based delays is really starting to take hold and ramp up so that's really what's driving it as well as finishing and some other projects that we have under.
Okay.
Got it okay. That's helpful.
And.
I appreciate that your strategic capital structure of review is still ongoing but just wondering if you can share any any color or any thoughts around maybe what you've learned from the process. So far.
Yes, I think a couple.
The comments to start this is something that from the start we've said is really about positioning ourselves to take advantage of the strong pipeline of opportunities. We see so it's really a proactive of kind of offensive.
Move and therefore, there's not a rush to go do just anything and I think we're trying to be very thoughtful in terms of both operational and kind of financial topics. If you will and part of the reason why we're looking for this as we've laid out the guidance and that.
The next couple of years is that we have a couple of Capex projects. We've assumed but we also have some working capital requirements, which are really driven by predominantly the large project and the middle East and we're always working on the balance sheet side of things as well, so ideally operationally and.
Improvements, we could make the that forecast would obviously change the math.
On the financial side of it and so those are kind of working hand in hand, if you will and I would much.
Prefer to have operational improvements changes and the environment, there that would change the calculation somewhat them to kind of rush into the financial.
The solutions to something so they really work hand in hand, and you can imagine in this environment as I just shared its.
Tremendous amount of opportunities of tremendous amount of dialogue going on with customers, but it seems to be.
A very difficult environment and kind of get things to the goal line just given the logistical challenges and the uncertainties and a lot of customers are facing.
Got it and I appreciate that.
Well I'll turn it back everybody have a good day.
Okay.
Okay.
Thank you. Our next question comes from the line of Doug Becker with Northland Capital. Please proceed with your question.
Mr. Becker of your line of life.
I'm sorry, our next question comes from the line of Samantha Hoh with Evercore ISI. Please proceed with your question.
Hey, guys and maybe just to stay on the Capex.
Topic.
Notice that you guided down $5 million for the range and then also.
It seems to have started a little bit came in a little low for the second quarter is there some.
I mean is this just like very backend loaded here on Capex.
Yes, so on Capex, and it's always fluid, but again and kind of relates to the same topic of just.
Operationally and and we've shared.
And Andrew and his comments mentioned the.
1 eco projects that we hope to get signed this year and.
And that's been a project we have been talking about for some number of quarters now so.
Debt originally we had and our forecast starting a little bit earlier, so it's more timing related.
Okay and then.
And we spend a lot of time on.
Water and natural gas side, but I was wondering if you guys have any comments about the infrastructure Bill.
Typically on the power business and and how you guys might be.
Expose to assist and increase in spending for this online.
And the power grid.
Yes, I don't think initially theres, probably a lot of flow.
Momentum there for us I think anything that would.
Further incentivize the build out of natural gas infrastructure and the U S and obviously would be something we would welcome.
And in fact believe and very strongly obviously I think we believe that ultimately.
Carbon neutral.
Situation worldwide going to have natural gas as part of that solution.
It just makes too much sense from a variety of perspective. So we're very bullish on natural gas and things of that there is a very long runway there and in addition, then to what we see on the water side.
Okay, and then maybe if we could just.
Delve a little bit on the water side and.
Earlier debt that you guys had 3 for the expenses side.
The line of business I was wondering if you could maybe break out sort of of it.
And different technologies.
Uses within AWS, which area do you really see the like the primary driver of growth is it.
Operations.
Shipment.
And we didn't like.
And I guess is it just noise.
And all and integrated projects like if you can actually go into some of the the bigger driver of the water business.
Each business do you think will be the main beneficiaries.
And I'd be kind of interesting.
Yes, I think the I'll start off and let Andrew add anything he might want to the.
Technology, we have and and we've shared this field started out as the technology and wastewater treatment. So the applications are can be quite broad and.
We truly start off of situations, where a customer oftentimes sends us a sample of the water that they are dealing with and then asked us to come up with engineered solutions. So it's very flexible of using the technology patented technology, we have and as we've shared we're putting a lot of effort around additional technology and other.
And.
The quarters and years to come and Youll see even more in terms of new technologies that we're bringing to the marketplace. So.
<unk>.
I think anywhere where someone has a water problem today, we've been focused on and.
The energy and for the last of the call it <unk>.
A number of years, but I think again there is for.
The other examples other industries, the industrial being 1 potential wastewater bean and other and beyond where this technology can be applied.
Okay. Thank you.
Thank you. Our next question comes from the line of Tim Monticello with Keybanc capital. Please proceed with your question.
Hey, good morning, everyone.
Morning. My first question is just around the Delta there and I'm just curious I understand.
Across your regions, how that's being impacted if youre starting to see and.
The slowdown and project execution.
Yes.
Margin towards.
Hey, Tim.
So I think what we're seeing and first of all operationally is really no material different I would say from the Delta Varian versus the Covid that we still are generally at the peak.
A lot of different countries a lot of different governments I would say even regions within countries.
Similar to the U S. Every state seems to apply their the perspective, a little different that has some implications based on whether you live on the east coast of the West Coast, where we're based here in Texas no different globally.
I think what we're seeing today.
And just from an external point of view just an absolute we're not seeing 70 of dramatic increase and employees that have Corp COVID-19.
Covid or perspective of internally seen challenges take to get things done what we are seeing.
And is in the locations globally, where at some point exterran needs to move to site.
And there's only so much that week and manufacturing engineering and ship then you have to execute and what brings exterran to light is our capabilities to bring projects together and build and execute and startup of operations on time and effectively produce for our customers. So that's what we're seeing today is just a small.
All indications net in certain countries that are logistics that require resolved and both on the physical componentry infrastructure skids that we're manufacturing and Dubai that needs to be shipped into CIT and countries.
And the shipping lanes that were open that we would need and to make sure that we've got the relevant personnel and backup should there be a problem.
And I would say that there are some cases, starting to show where our customers are requiring certain provisions and certain conditions.
The subject of vaccination is the hot topic, right now and that is becoming a new norm and sit and locations globally, where you have and to provide.
Tim of some of these locations at the peak, we will have 2000 people working.
They are contracted for people that with supervisors and so just the logistics of making sure that that is done and a safe way and in an environment that's capable.
<unk> has its challenges and so no 1 broke COVID-19 into contracts and thought about how to manage this when many of these projects for a bit and 1 originally so we're having to adjust for having to pivot and and the good news is I believe we've done an exceptional job so far but it is something that we're keeping an eye on and make.
To ensure that we're doubling down on our intensity for prevention, where we can and in the in the cases, where we do see a blip how do we make sure we rectify that and get back to work as fast and safety as we can so that kind of gives you a little bit of of scale. Obviously differs by country. It's clearly different right now and some countries.
And Latin America, we've seen more of a concern some parts of the middle East we're seeing concerns.
And and we're managing the daily So we haven't changed our operating items internally since the start of Covid and the teams are continuing to do a really wonderful job managing it but we're just starting to see it becoming.
A little bit more intense and sit and locations that we see.
Okay can you speak specifically to the large middle Eastern project is that.
Progressing as expected.
Yeah the.
The project is progressing.
And so that we have teams on the ground as we speak and.
And the middle East that's about ready to head into that location next week from Houston.
<unk> got a <unk>.
A significant amount of the the upfront work complete the engineering work as we've talked already has been has been is being well well documented and we.
And with that.
And the site preparedness and handover process, where we're working with the customer as we speak on that topic, and that's working and progressing in line with what we anticipated.
A lot of the manufacturer and expect for the project is underway and so right now I'd say, we feel very good with where we are on that project.
Clearly a topic that we spend a lot of time on internally, it's a critically important to the country and is critically important to us as the organization but.
But I feel good with where we are today with everything that we're controlling and we.
We have that built into the guidance that we gave earlier today, and but and clearly keeping an eye on the situations and make sure of something crops that we can we can adjust debt.
And Thats, what we do but we feel good way we are today.
Okay great.
Next question just around the North American book.
Bookings, obviously bookings were.
Still fairly depressed and the second quarter and you move into the third quarter are you starting to see signs of life.
In terms of the I guess North American.
Processing and treating bookings.
So.
So I mean, the against a simple yes.
While some opportunities and the second quarter I would say that would have traditionally been and the wheelhouse of what we supply to the exterran.
Certainly some compression bookings that we've made and the industry that of course, we didn't participate in.
And I think as you've seen as a result of what we said.
The company would increase our margins and we've seen that happen. So we're not chasing bookings for the sake of bookings what we focused on is making sure that we can.
Get get the the infrastructure aligned with the strategy of what the company's heading down and Thats now in place. So we've been working hard with many customers.
We have.
Shift previously plants and.
And are successfully operating today. So we have as you know Tim of large installed base today of gas processing facilities across the U S. We feel we feel good we certainly feel better today I certainly feel that of today in the pipeline and the bid activity.
And as it relates to North America, and say, where I did 6 months ago, and certainly feel better than where and I did a year ago and.
And we've got a good combination of customers, who are working through their own internal bottlenecks and capacity and debate and frankly, whether capacity in certain regions need to be moved to additional locations. So I would say more of a.
A brown field to brownfield site, where we would have a role to play and in some locations. There are talks and discussions underway for greenfield build out where maybe they are looking for train tube or train 3 and in some cases and we were successful on the original train 1 and train 2 in many cases, so a good combination I would say of.
Activity that debt really for US. The question is the go and we spent a lot of time internally and lately.
And the go function of these projects a lot of these projects that we've seen some delays and our pipeline is continuing to build and.
North America, which is a small component of what we described without without pipeline, but our international pipeline is building very nicely and the question always comes internationally, when you're dealing with NOC and and in certain cases large entities is the goal is the goal of this project during the work and we spend a lot of time as an organization.
Mapping all of the different aspects of how we can get leading indicators on the go we feel comfortable on the GAAP because in many cases were either sole source, so when negotiating and as and al 1 way we negotiated based on the fact that we built facilities before the question all of it becomes the go a little easier and the U S because of the.
All of the companies, we're talking about are public and so you can pick up a lot of indications on the earnings and various aspects that we see pull and various timid and data and publicly available information, but again, the still a little bit of of hesitant that we'll see and to get back to somewhat of the level that we saw in the past and I don't think thats going to come back for some time.
I think first of all the as somewhat of a a reconciliation of where cash does flow and in house moving and.
Making sure that the customers have the relevant equipment and the locations way, where they can provide the best opportunity for the use of that gas whatever that means maybe so kind of a little bit of a long winded answer to the question, but important that I highlighted that it's not just north America, the international markets and equally as important but 1 key point.
I would like you to takeaway is that we certainly feel better today about the indications that we're seeing and North America, which always stock software the request for quote or stocks off of the request for us to bid and activity and that level of activity is significantly up from what you've seen in the past on the processing and treating.
Syed on the water side, I'd say, it's an equal story and in the past quarter, we spend a lot of time working with key critical customers on proven out of our technology and certain markets and hopefully in the next few months, we'll have some news to share with you on the success of that and how that will manifest itself.
<unk> into future projects and future plans and so for.
Good where we are commercially we clean the need in the second half for the pipeline stock convert and and that's the critical focus that we have in front of us.
Okay got it.
This may be a fair comment debt.
And the exit of the compression business and the U S has made you sort of the later cycle participant in the upcycle in.
In terms of the bookings activity I think Thats fair.
I think yes, I think it's been traditionally we tended to see the compression business, maybe get signs of life first and then and then Youll see the the.
Plant the follow after that.
People are still deferring the bigger capital trying to increase production throughput for compression and tended to get a little bit of a head start.
Got you and then last 1 for me.
I'm wondering if you could give me.
And idea of what Youre seeing on the energy transition opportunities things like <unk> hydrogen biogas applications for processing and equivalents.
I think for for US, it's really early in the and the <unk> all of those topics, where we're working through as part of our <unk>.
Strategic growth plan, and we have a pretty robust.
The rigorous new product development team that looks at all aspects and indications of various technologies and some were looking at and and a much deeper contacts with potential to partner with others.
And I think for Exterran and there hasnt been of traditional model for us to be of natural provider of some of those alternative technologies that you described but we certainly are.
Looking at the potentials and I think led by our water team and.
And on a natural gas team, we're certainly seeing some areas that are of interest but.
As you know Tim there are a lot of companies out there that have great ideas and technology and no revenue.
And then worked for for a public company and the short term. So I would say for US we're spending time understanding the market looking at where the GAAP saw how do we bolt on some of the technology to make what we're already doing today and more efficient the.
The great thing about Exterran is that we have an enormous install base of various applications around the world.
And in some of the cases that we're looking at right now, we're bringing potentially some new technology to bear where we can install it in our own equipment and produce efficiencies and some areas of of energy efficiency to our customers. It's already enjoying the use of our equipment for the traditional hydrocarbon. So we're working through that.
No real big update that I can put dollars and value to today.
But it's a subject that we're spending time on.
Okay. That's really helpful. I appreciate the the.
I will turn it back.
Thank you. Our next question comes back to the line of Doug Becker with Northland Capital. Please proceed with your question.
Thanks.
Dave You mentioned operational improvements of couple of times as part of the capital structure of review can you just give a few examples of what that might look like.
Yes.
And again more and more operational and maybe opportunities of the better word so again and the forecast information.
And provided obviously is dependent upon capex and.
Assets and.
And working capital. So we're constantly looking at are there ways to improve that situation. So a couple of examples could be and things like is there a.
Equipment or a facility somewhere that.
Some of them whatever their motivations might be as willing to 2 by the today is under and eco contract, where we keep the Ams business, but potentially could could realize something there that would make sense for for us for the short term long term that would be an example.
And we've talked about the primarily the big project and the Middle East and it has a working capital component.
Constantly looking and whether it's our own internal and working with vendors and suppliers on the.
We're trying to match our payments for them with customer payments or is there anything we can do on the customer side, it's a very fluid situation and we're working really hard and fortunately with good relationships with our customers and suppliers to try to see if we can.
Proves that cash curve on a project like that that could be an example, so those are those of the type of things. We're working on that I would say, it's always something we think about every day, but I think and this situation.
Certainly would be of real nice way to kind of thread the needle here and provide ourselves the more flexibility and more.
More dry powder to be offensive on that.
Backlog of potential projects.
And that mix makes sense and then last quarter, you mentioned that all options were on the table as part of the review.
Has anything been taken off the table at this point and in particular I'm thinking about issuing equity.
Yes.
And again, we're not probably and go into the specifics of our board deliberations, but I think.
The point of that was that we have of management team and the board doesn't rule out anything when it comes the could considering all options that make sense for this company and all of our stakeholders and particularly our investors and so thats the way were approaching it and Thats the way the board.
And management, both are addressed and it and frankly at some point, we will have more to share I think and.
And we'll talk about those kind of topics of them.
Okay, and just 1 last 1 and this is the expectation of the expectation be debt. This is really managing the leverage ratio or is it potentially that we actually see absolute debt levels.
The decline.
As the the plan ultimately is rolled out.
Yes, I would say, it's probably actually both if there are operational opportunities. We can take advantage of that would obviously lower the led.
Levels and.
And leverage that way versus just kind of.
And addressing.
1 of the other but that's why the operational opportunities frankly are very high on our list.
Yes.
A lot of things for us and in a way and it doesn't require any type of disruption on the capital structure side.
Sounds good thank you.
Thank you. Our next question comes from the line of Brian <unk> with Baird. Please proceed with your question.
Good morning.
The circle back with the capital structure review and.
And recognizing.
That day.
And you didn't provide a timeframe on it.
Wondering love your thoughts on the do you have a chicken and the egg problem.
And where you are having.
John.
And you Havent communicated your steps forward on what the new business model is going to be.
So is that preventing contracts from actually occurring.
No we haven't had any.
Issues on the commercial side and this and this is really as we've said from the start of this is not about.
The situation, where we've got.
And to our head and anyway. This is about being more flexible more dry powder. If you will when you've got a pipeline of $3.5 billion and Theres, probably every construct of opportunity and there you can imagine from traditional <unk> to the project product sales to some hybrid we're trying to be as is.
Flexible and prepared as we can to tell every customer, yes, I mean, thats always the way we walk into these deals is yes, we're glad the support you and all we got to go figure it out and there are some.
And the projects I would say throughout the very large project product sale and there. There is the large veeco and this is about really be and positioning ourselves and the best possible way to take advantage of all of those opportunities is not of commercial issue at all of its not in the crisis is not and there is no gun to the head of this is about looking forward.
And transparent on what we see and the next few years, but really motivated by the pipeline of over 3.5 billion and that we are tracking.
Got it and then more of a question a question but.
The really helpful. If you provide it.
On a quarterly basis cash interest paid and cash taxes paid just so we can better track, what's going on with cash flow.
Okay noted.
Great. Thank you.
Thank you ladies and gentlemen, this concludes our question and answer session and I will turn the floor back to Mr. Wang for any final comments.
And.
Thank you everyone for dialing in today, we appreciate your interest how.
And now the safe later part of the summer and we look forward to updating you. After the next earnings call. Thank you.
Thank you. This concludes today's conference you may disconnect. Your lines at this time. Thank you for your participation.