Q1 2022 GasLog Partners LP Earnings Call
Okay.
Good morning, My name is Brandon and there'll be a conference operator today at this time I would like to welcome everyone to the Gaslog Partners' first quarter 2022 results conference call.
All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. As a reminder, this conference call is being recorded on today's call are Apollo a noisy chief Executive Officer, and accused test your illness, Chief Financial Officer.
Robert Greenberg from Rosen Company will begin your conference.
Good morning, or good afternoon, and thank you for joining the Gaslog partners first quarter 2022 earnings conference call for your convenience. This webcast and presentation are available on the Investor Relations section of our website Www Dot Gaslog MLP dot com where are we.
It will also be available. Please now turn to slide two of the presentation. Many of our remarks contain forward looking statements for factors that could cause actual results to differ materially from these forward looking statements. Please refer to our first quarter earnings press release. In addition, some of our remarks contain non-GAAP financial measures.
As defined by the SEC a reconciliation of these measures is included in the appendix to this presentation Paolo will begin today's call with a review of the partnership's first quarter highlights following which I will walk through the partnerships' financials. Palo will then provide an update on the LNG shipping and commodity markets. We will then take.
Questions on the partnership's first quarter with that I will turn the call over to Paolo noisy CEO of Gaslog.
Partners Valor.
Thank you, Rob and welcome everyone to our first quarter conference call.
Please turn to slide four for Gaslog partners first quarter highlights.
I am pleased to report the partnership achieved another strong quarter.
The partnership generated strong financial results in the quarter with noticeable volatility in the spot market.
Our fleet utilization remained high at approximately 99, 4%. Despite the ongoing operational challenges created by the COVID-19 pandemic.
The partnership is in good position to deliver results throughout 2022, both to our contracted cash flow and our spot market exposure in the seasonally strong months in the second half of 2022.
We have in fact, approximately $521 million contactor revenue, including a recently signed 11 month charter for the Gaslog Sydney.
Active rate above mid cycle.
And we have 851 up in days remaining in 2022, which we believe represents a material upside potential given the tight market backdrop and our expectations for the balance of the year.
Finally, we retired $37 million of debt and lease liabilities in the quarter and a purchase another $10 million of our preference units in the open market, bringing the total repurchases to $28 4 million at par values on average since the repurchase program was initiated last summer.
The result is a reduction in breakeven levels, which enhances our free cash flow generation potential and continued progress in our leverage ratio towards our targets.
Turning to slide five.
The global focus on the availability of LNG has never been higher.
The tragedy unfolding in Ukraine has highlighted the importance of LNG not just the fuel that will enable the transition to a lower emission world, but also as a critical element of many countries energy security plan.
The situation is unfolding at a time when the LNG market is already tight after two cold winters in Asia.
Increased demand from Europe , as cool as gas prices have surged globally.
This will likely lead to an increasing number of long term supply agreements.
By a regulatory environment that will almost certainly helped to drive new LNG projects.
And support the continued growth of LNG site.
In the midst of these market dynamics, we should mention that gaslog <unk> to support the safety and wellbeing of our Ukrainian see patterns and their families to an attentive care and support program managed by our operations team.
I will provide further commentary on the markets shortly but first let me review the opportunity it creates for the partnership.
On slide six we highlight two charters, we signed in recent months against an improved market backdrop.
Both charters with high quality counterparts in fact, a good analogy.
And we will contribute the combined EBITDA of approximately $43 million during their contact terms.
We have at least six vessels with contact spotting in 2023, and we expect to charter them and effective level.
Turning to slide seven you will see that the cash the partnership to generate in the first quarter combined with our charter coverage through the year and more than covers our overhead and debt service obligations for 2022.
This is of course before factoring in the potential upside for approximately 851 up in days and to open 275 spot linked days, which will allow us to benefit from the strong fair market and limited availability of independently owned vessels.
In this environment departments, who will be able to take advantage of an excellent operational platform and deliver tangible results.
Slide eight shows the potential we have to enhance our free cash flow in 2022 due to our near term market exposure.
As you can see from the chart on the left approximately 85% of our open days are during the seasonally strong second half of the year.
50% of our available days are open in the fourth quarter.
As we continue to manage our cost base, our operating level increases in every $10000 per day of revenue earned above our operating and overhead expenses will generate an incremental $11 million of EBITDA for the partnership in 2022.
I will speak about our market outlook shortly but first let me turn the call over to <unk>, who will review the <unk> first quarter financial performance.
Thank you Paolo.
Turning to slide 10, and the partnership's financial results for the first quarter of 2022.
For the first quarter were 85 million a 2% decrease from the first quarter of 2021.
Slight decreasing revenues was primarily due to our current 12 more spot days in 2022 compared to the first quarter of 2021, and lower daily time charter equivalent rate for the spud days as the premium when the spot market and at least this year than in 2021.
Adjusted EBITDA was $61 million, a decrease of 3 million or 5% from the first quarter of 2021 .
Higher operating expenses and general and administrative expenses discussed in the next slide in detail.
Finally.
Adjusted <unk> was 41 cents per unit.
Kris compared to the first quarter of 2021 due to these kind of expenses as well as increasing the number of common units outstanding.
Overall, we are pleased with our performance in the quarter as we continue to successfully monetize exporters in the spot market or the South I think our fleet at <unk> and at <unk> and Novartis stable path for the partnership.
Turning to slide 11, and look at our cost base.
Our daily operating expenses by the vessel with high end in the first quarter than both the first quarter of 2021 and the full year guidance, we gave on our last call.
This was primarily due to a one 4 million increase in crude costs, mainly related to additional COVID-19 related costs in 2022 due to enhanced safety protocols grew extension bonus system support LC fast traveling and extended guaranteed days for CFS pilot to an application.
This increase was partially offset by a fall kind of a $1000 decrease in the vessel management fees paid for our fleet in connection with a decrease over the annual vessel management fees payable to the amount of swap amount of it.
General and administrative expenses increased by $1 5 million yes.
Increase with time.
82, an increase of 1 million and the administrative service fees to Gaslog <unk> for the full year and an increase in the public company expenses compared to 2021, which was previously said, we didnt Gaslog and Gaslog partners prior to our parents take private transaction last year.
That all public.
Public company expenses are now owned by the partnership alone.
The changes in the management and administrative fees are in line with our comment that in the previous quarter and disclosed in detail in our 2021 NDA filed with the SEC in March 2022.
For the balance of the yet we expect our unit operating expenses will average approximately $13800 per vessel per day, while we expect our allocated expenses Slava that's approximately.
$250 per vessel per day.
Slide 12 illustrates the progress the partnership has continued to make in its preference unit repurchase program.
During the first quarter, we repurchased an aggregate of $10 million of finished units in the open market.
Since the program was initiated in August 2021, the partnership.
More than 2000 8 million <unk> units at an average price of approximately $25 per unit value.
These repurchases have reduced staffing and unit distributions by approximately $2 4 million almost five cents per common unit on an annualized basis.
We expect to continue Opportunistically repurchasing preference units in the open market as conditions dictate.
Slide 13 shows the progress we have made toward our.
Our leverage targets, which we first introduced in the first quarter of 2021.
We have made good progress on these goals. Despite the 104 million noncash impairment charge on now steam vessels that we took in the fourth quarter of 'twenty one.
Inclusive of $37 million of debt and lease principal payments made in the first quarter of 2022, we have repaid $111 million in aggregate over the last four quarters.
As a result, and despite the impediment of the fourth quarter as I mentioned before.
Debt to total capitalization, which has been reduced from 55% over the end of the first quarter of 2021% to 53% as of the end of this past quarter.
When combined with our $136 million of cash on the balance sheet net debt to capitalization has been reduced from 50% to 46% over the same period.
In addition, our net debt to trailing 12 month EBITDA could be reduced to one five times to four three times.
We expect to continue strengthening our balance sheet, beginning with the scheduled retirement of approximately one <unk>.
$14 million of debt and lease principal payments in aggregate in 2022.
<unk> has more than covered by our contracted cash flow over this period.
Reducing debt balances and making opportunistic repurchases of preference units, we felt that it used the partnership's cash flow breakeven levels over time and increase our free cash flow generation potential enhancing the partnerships equity value.
With that I will turn.
Over to Paolo to discuss the LNG commodity and LNG shipping markets.
Thank you Nicholas.
Turning to slide 15.
72 term charters were fixed in the first quarter of 2022, according to both of them.
This figure includes 42 fixture for new building that have not yet been delivered.
Assisting concerns related to energy security and logistical bottlenecks around the world.
<unk> chartered it to seek term coverage uncertainty of shipping capacity.
As illustrated in the chart on the right of this slide headline spot rates have remained relatively stable in recent weeks and tightness in the market as reflected in the relatively strength period charter rates, which are well above last year's quarter, one level as well as the five year range.
The strength of the <unk> market is being exacerbated by the lack of availability of independently owned vessels.
Increased demand for period charters since last year.
Currently a year charter rates out of SaaS that to 115000, a day, but it's the FTE vessels and 62000 for the steam vessel According to Clarkson.
We believe this is indicative of charter and its expectations for a tight market in the months ahead.
In addition, the forward curve for LNG spot rates indicates rising rates throughout 2022.
It is also the fundamental drivers in fictional challenge, we expect the LNG carrier market performed strongly through next winter as I'll discuss over the next several slides.
Slide 16 presents LNG demand and supply during the first quarter of 2022.
And then she demand increased by 7% in the first quarter compared to the same quarter in 2021, According to wood Mackenzie.
Demand growth from Europe was exceptionally strong in the first quarter, increasing by 56% increase year over year.
The combination of OIBDA alliance on renewables, lower inventory and lower than anticipated interest from Russia, and Norway push demand for LNG, resulting in record high prices in the region under.
Underscoring the need for natural gas and LNG at the both the transition fuel and important source of power generation in the evolving energy landscape.
In 2022, LNG demand is forecast to grow by four 3% year over year.
On the supply side U S production rose by over 24% year on year to 25 million tons due to higher utilization in response to increased demand and the ramp up in production at the Freeport, Canada Corpus Christi and most recently this past LNG facilities.
U S exports are expected to continue to grow throughout the course of 2022 and beyond.
New export infrastructure comes online.
Slide 17 demonstrates a significant cost increase for power generation in Europe and Asia since the end of 2020.
Punctuated by high volatility during the past few months LNG prices in Asia, and Europe recently hit cycle time highlight.
Highlighting the need to further investments in natural gas processing infrastructure.
In recognition of this reality the European Commission has added gas and nuclear power to the Green taxonomy.
The classification of the sources of sustainable will help enable the steady and competitive supply of energy.
Given its destination flexibility LNG has the most versatile source of gas it will be essential to help achieve global emission reduction goals over the long term.
Europe entered the winter with relatively low inventory of natural gas situation made more 10 years by the war in Ukraine, we.
We expect these conditions to continue to drive additional demand for LNG as countries begin to restock inventory and find that a viable alternative to Russian pipeline gas.
Slide 18 shows the forecast building LNG infrastructure over the next several years.
Remember that the growth in seaborne LNG trade is enabled by infrastructure.
This applies equally to growth in the number of vessels required to transport LNG and to the growth in both export and Regasification infrastructure.
By then by the end of 2026 airport capacity is expected to increase by 130 million tons and regasification capacity expected to increase almost lock step by 128.
Despite western Europe plan to increases LNG inputs. The majority of the gas capacity is coming from Asia.
Coupled with volume acknowledged forecast that a majority of supply capacity is coming from North America ton mile demand growth is likely to exceed the nominal growth in volume.
At the same time does at least 17, new import projects being considered by various western European countries to increase import capacity.
Slide 19 displays the LNG carrier order book and delivery schedule According to Poten.
Presently the order book contains 186, LNG carriers with over 80%, having secured multi year employment.
As I mentioned, there is no unfixed vessels scheduled for delivery in 2022 and only two in 2023.
Due to various factors, including increased demand for container ships and lack of available slots of yards delivery time for the new building order today is approximately three years, making the Adas the liberty and our 2026.
Competition for burts lots of the yards as well as cost inflation has also pushed prices above $220 million up more than 10% compared to last year.
Despite the seemingly large number of vessels in the order book, we expect there will be sufficient global demand for LNG to absorb these vessels as they are delivered without depressing the rate environment.
Slide 22.
The forecast based upon two different historical multiplier of LNG vessel supply and demand by quarter to the end of 2023.
The demand forecast, partly based on the number of vessels needed to export 1 million tonne of LNG banana expressed as the shipping multiplier.
Note that this analysis does not assume any vessel scrapping.
They looked at by using the high Investor demand forecast is based on the historical use multi player in the low one is based on the first quarter 2022 vessel demand motive later.
Which was impacted by the increased cargo go into Europe , and the resulting decrease in ton miles.
Although there will be a relatively strong growth in global LNG shipping capacity, we anticipate that the growth of inter basin trading will more than offset the scheduled deliveries over the next couple of years, resulting in a tight LNG shipping market to 2022 and 2023.
Turning to slide 22 and in summary.
LNG is now recognized more than ever not only as the stepping stone for energy transition, but also as a reliable and necessarily source advantaged security. Therefore, we expect a strong LNG demand to persist throughout the year and beyond as straight expand facilitated by a cigna.
Ticketing infrastructure growth.
Now in this dynamic environment, we're not only able to cover all our fixed obligation as we showed before but also our spot exposure provides the opportunity to generate incremental cash flows in the expected tight shipping market ahead of us.
Finally, we continue to execute well on our strategy to build equity value for our shareholders.
And deleveraging our balance sheet, the purchasing of prep unit and we are a path and instantly positioning the partnership to evaluate opportunities for fleet modernization in this dynamic market.
With that thank you for your attention and I'd like to open the call for questions.
Thank you we will now begin the question and answer session. If you have a question. Please tell zero, one and you touched on phone if you'd like to be removed from the queue. Please zero.
If you're on a speakerphone. Please pick up your handset first before he tightly once again, if you have a question. Please dial zero, one new touchtone phone.
And from Webber Research, we have Chris <unk>. Please go ahead.
Hi, good afternoon, Paolo how are you.
I guess I'm well about you.
Good great. Thank you.
Wanted to just start off on slide seven mid day, just wanted to make sure I'm understanding it correctly, if we're starting with the.
Q1, 'twenty to adjusted EBITDA.
The contracted EBITDA for the next three quarters around let's call it $140 million.
Then the gray bars after that eats up about 160, which gets us to <unk>.
Full year 2022.
Adjusted EBITDA for the rest.
The $40 million.
Am I looking at that rate.
So yes actually what we're trying to say is this accurately assess what do you think.
To take you are accurate.
Our contract with the EBITA is enough to cover all of our fixed obligations and then on the other side of the slide we saw what these.
A number of non contracted spot vessels.
Days so.
We are able to.
Fixed obligations that opex in terms that we have conducted to EBITDA and that is a lot of upside opportunity simply by having open days of 851 days in the seasonally stronger part of the yet and we also have 275 days.
A link to the spot market, although they are fixed but they have a floating element where there is an opportunity of upside by stronger seasonal markets later in the year.
Great Alright, great. Thanks acuity.
And on to slide 11, where we talked about cost control.
Red in the 20th sit there were management agreement with Gaslog.
What was it 46000, a day from management fees and commercial manager fee at 365% per year per vessel is that is that the numbers just for.
Full year 'twenty, two estimates and.
And it's lower than what it was before.
Is.
Is that right.
Yes, we have.
You can rationalize the vessel management agreements with Utah and practically what we need is to reduce the vessel management fee and then increase the administrative fee that covers the DNA.
Now that the partnership piece the only listed entity.
Cabot's more public costs alone.
We have a decrease on the vessel management costs and an increase on the administrative costs will also depends on the commerciality management fee that added some fixed fee to <unk>.
To our commission you'll see it also in the 20-F.
Okay. Thank you and just one last final question just looking at your <unk>.
Listen this is our charter nearly half of them are chartered to shell has said that it intends to phase out Russian LNG purchases also exit.
Chocolate too.
Wanted to know if that or if.
Any other vessels on time charter now in the near term.
They've been impacted by the conflict Thats currently going on in Ukraine and Russia.
Yes.
It's Paolo here now.
We can we can answer positively, meaning we've had no exposure, neither directly or indirectly to Russian cargoes and hardly any exposure on the.
On the situation in Ukraine apart from as we mentioned the fact that we are supporting our seafarers who are.
Exposed to it from a family point of view, but from a commercial point of view, we have no contact that brings us into Russia or import.
Those us to call on Russia. So we have no exposure on this point.
Okay, great. Thanks, Bill, maybe if I could squeeze one last one in just on your.
Capital allocation what happens when you reach your leverage targets on slide 13.
Could we see possibly an increase to your distribution.
Yes.
Thanks for the call I mean thing is probably one of the one of the questions.
And we look at it like this.
The point is not just when we.
As you correctly mentioned not when we achieve it because that's a developing targets, but what what does achieving this target due to the business.
And as we mentioned the target.
Have we believe are the right one because they sustained gaslog partners through the cycle because the shipping industry is still a very cyclical business, we can be more competitive and profitable every year and eventually we can have a very strong balance sheets at the end of all of these targets being achieved and then.
Our priorities are the meaning these ones on the on the fact that eventually we'll have to look at opportunities as they about as they come up in the market.
And as we also look at to be rejuvenated, our fleets, but all in all the first commitment is to deliver it as we call it equity value to our shareholders and will be the combination of these targets is the best way to sort of visualize it for everyone.
Alright, great.
Great. Thanks, Paolo Thanks, everyone.
Thank you Chris.
From Jefferies, We have Chad <unk>. Please go ahead.
Hey, Tim Gaslog has it gone.
Hi, Hi.
So you guys recently signed two new charters for the Sydney Santiago for roughly a year. Each so looking at the six vessels coming open in 'twenty two still remaining when you look to continue to look those on shorter term charters or maybe look at some longer term options.
Thanks Paolo.
I think we're really looking at a combination.
As you've seen now the term market has is relatively high I mean definitely higher than we've seen in the past years and surely in the first quarter 2021 the Gaslog Sydney has been a testimonial of the fact that if the opportunity arises that we are there to take it.
I think these opportunities will come to us even more frequently as we move into the word summertime and eventually quarter three quarter, two and quarter three of this year. So I think that the tactic is to evaluate what is the best for the opportunity we have at hand.
And B b be open to take a turn business or spot business as it comes.
Available given today's trend definitely the term business is the is the most interesting of the two.
Got it that is helpful. And then maybe just a quick modeling question can you maybe quantify the expected annual savings from repurchasing the $10 million of preferreds in the first quarter.
Yes.
I think in the slide actually.
Yeah.
On average we are paying cadence of half let's call it.
So $5 million to $10 million, it is slightly less than that $1 million.
Up to now we have both back $28 million. So these exit two four annualized saving.
If you divide the two call it with the number of.
Common units that we have with <unk>.
At Union.
Got it perfect. Thank you I'll turn it over.
Thank you and thank you again.
From Citigroup, we have Chris Wetherbee. Please go ahead.
Alright, thanks, guys like what's going on for Chris Wetherbee, maybe we can just start a little bit broadly and you can walk me through the Russia, Ukraine impact so how does it impact the day to day operations during the first quarter.
And how did it restricts the movement of LNG cargoes for you guys.
Okay. So the impact of Hi, Paolo.
The impact we have on the fourth one is really all due to the COVID-19, pandemic persisting and the omicron behind which is which has hit us for <unk>.
Additional costs as the keyless has already explained so we haven't seen and the partnership is not.
<unk> been exposed to any kind of impact direct impact for the situation developing in Ukraine and toward the sanctions and let's say additional restrictions coming up in the market because of the.
Russian dynamics, so I think that's maybe part of the answer.
On the on the second part from the LNG point of view.
I mean, I think we all see.
As we mentioned what's happening energy Securities now sort of top of mind together with any transition in LNG and LNG infrastructure are being looked at and deployed in Europe at an unprecedented rate.
As you know there is more than 90 million tons, which are being delivered every year of Russian pipeline gas.
And the European Union Thats made important.
Targets to achieve substantial reductions already.
End of 2022.
And that only comes in by providing.
Infrastructure of development, especially from FSA, you on one side and therefore importing a significant amount of LNG to these infrastructure I think one point on this is.
Last year, we closed up with an overhang of efficacy you in the market, which was approximately eight vessels. These vessels are now virtually all committed to being deployed in Europe and keep in mind that every one of these vessel.
Andy will leave the LNG charter market, but will also need for a vessel that has a 5 million ton per year capacity approximately five vessels each.
So I mean these are not fixed numbers, but I think it gives you.
Idea of what is the additional shipping capacity that will need to come if you only look at Europe alone.
Got it that makes sense and I heard you guys mentioned this but maybe we can just I can just get some more clarity from you in terms of securing capacity for the winter of this year. What is the what has been our strategy is to make sure that you guys can do that.
Sorry, I lost you securing capacity for.
The winter this year.
Okay.
Well as we mentioned I mean the.
If you see on the App index.
The amount of vessels or the vessels that we have opened are actually coming open mostly on quarterly and for this year. The vessel that we had open on.
Early this well that we had open at that time was the Sydney and we fixed that already.
The other vessels that are coming open we have already entertaining inquiries and we see that there is an increasing trend of asking term business from quarter three and for the two onwards.
So we believe that the market will definitely sustain healthy rate whether on the spot which is due to come up.
As we approach the seasonally strong months of all fall and winter as well as term charter because theres also a scarcity of independent ships available in the market and the amount of <unk> will soon clean up as.
As you know.
The chart that errors and.
And traders will eventually position themselves for winter.
I appreciate it thank you.
From Stifel, We have Ben Nolan. Please go ahead.
Yes, Hi, this is Frank galanti on for Ben.
I wanted to ask kind of a more market question on vessel speeds give.
Given the really high price of fuel.
Where does the market stand from a vessel speed perspective, and is that sort of.
Split between the more efficient than the older steam vessels.
I think.
I think we will we can give you is the view from our deck and the view from our deck is that the vessel speeds.
Has maintained until now generally at the level that we've seen before so our vessels are typically sailing at around between $14 three and $14 eight.
Not that was the consolidated figures that we also report that did not ESG reports. So that's another source where you can find this information.
That is not an even picture. However, typically older vessels are speeding up in the wintertime and slowing down in the let's say quarter or two and maybe a quarter three months, we havent seen any development on that.
On this part I think what we see is that charterers are instructing us to burn.
Fuel oil or diesel oil.
When they when they need to move rather than burning heal and I think it makes sense because they are trying to utilize the molecule as much as they can for their trading and the other four for their fuel.
Okay.
It's interesting. Thank you very much and then I guess more.
Partnerships, specifically and this is sort of a two parter.
But.
Towards the end of the presentation, you had mentioned fleet modernization.
Just kind of wanted to get more color on what that sort of looked like.
And then secondly is it is there anything.
You can do to improve.
The steam vessels.
Performance in order to better compete with newer equipment.
Okay.
Yes, So fleet modernization is I think it's a topic that eventually.
As in the outlook for the partnership.
We believe that our steam vessels are above let's say all steam vessels are among the most modern and the largest of the steam vessels around there and remind you. The steam vessels are still accounted for a third of the overall fleet.
However, there is no hiding these vessels are not as efficient in the overall trade is the more than two stroke engine.
Our terminals and trades, where these vessels makes sense are still very competitive.
So I think.
That point of view eventually we will be looking at the best way to deploy the steam vessels and.
And eventually the modernization will start from if not accretive acquisitions maybe.
A changeover from the steam vessels to more modern tonnage and Thats something that I think it makes sense in the outlook for the partnership and.
And with regards of the efficiency as I mentioned, our 145 steam vessels.
Largest we have and they are relatively young so we believe that they are a good alternative.
Compete, especially in Amdocs trades.
With the other vessels on part so.
Our vessels are very well maintained you can see the emission.
Statements also in the in the ESG.
In the easy part.
There is also I think an interesting overall depth.
<unk> story and I'll leave it to kill as Stu mentioned on this one does not specifically operational but I think it's interesting. It is because I think he did think biologicals.
We have lower debt balances on these things and.
This means that they have.
All in breakeven levels, and our strategy to reduce our balance sheet.
Actually makes them even more competitive.
No.
All of this makes the <unk> alternating with lowest breakeven in a much more.
Competitive LNG shipping market.
Yes, I can so I think if you go out.
I think Pablo that was another element on it we can calculate.
Hit Us Frank.
Yes, yes.
I just didn't know.
I thought it might have been cut out alright, that's super helpful.
That's all I had I really appreciate the answers. Thank you.
Thank you Frank.
Thank you we will now turn it back to our speakers for closing comments.
Okay. Thank you. Thank you everyone for today. Thank you for the questions and for listening and for your continued interest in the partnership we really appreciate it.
Look forward to speaking to you in the next quarter and.
Really really looking forward to seeing you all in person soon in the meantime stay safe and if you have any questions. Please contact our investor relationship teams and drop.
Thank you all and have a great day today.
Alright.
Thank you ladies and gentlemen. This concludes today's conference. Thank you for joining you may now disconnect.
Okay.
Okay.
Sure.
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