Q2 2022 Suncor Energy Inc Earnings Call
[music].
Good day, ladies and gentlemen, and thank you for standing by walking through the Suncor Energy second quarter 2022 results conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During this session you will need to press.
Star one one on your telephone keypad.
At this time I would now like to hand, the conference over to your host today, Mr. Trevor Bell Vice.
<unk> of Investor Relations. Please go ahead.
Yeah.
Thank you operator, and good morning, welcome to <unk> second quarter earnings call with me. This morning are Chris Smith, interim President and Chief Executive Officer, and Alister Cowan Chief Financial Officer.
Note that today's comments contain forward looking information actual results may differ materially from the expected results because of various risk factors and assumptions that are described in our second quarter earnings release as well as in our current annual information form.
Both of those are available on SEDAR, Edgar and our website Suncor dot com certain financial measures referred to in these comments are not prescribed by Canadian GAAP for a description of these financial measures. Please see our second quarters earnings release following formal remarks, we'll open up the call to some questions now I'll hand, it over to Chris for Us open.
<unk> remarks.
Great. Thanks, Trevor and thanks to everyone for joining us today for our quarterly results call.
As previously announced I have been asked by our board to lead our company forward during this period of transition.
With Suncor for 22 years, and I've held various operational and business roles across the company.
This is my first time speaking on Suncor is earnings call I'd like to briefly introduce myself and discuss my priority.
During my time with the company I've worked in our oil sands downstream and corporate division as well as in both our Canadian and U S businesses.
And for the past 10 years I've led the company's downstream, which is the most profitable in North America on a per barrel basis.
I have a great appreciation and understanding of Suncorp assets business and people and we will be drawing on that experience to lead the company through this period with a focus on rebuilding confidence in suncor.
To be clear as interim CEO my mandate is not to simply maintain the status quo, but to work with our board and executive team and all of our employees and make the changes necessary to improve our performance and deliver the value you expect.
I believe it's important to step back and clearly that's where we are confirm what is going well identify what needs to be different and keep the momentum moving forward through executing the changes necessary to accelerate our progress towards improved performance.
Safety is the most important value suncor and our safety record is unacceptable and improvements you made.
This was brought home by the recent death at our beta site in the mine area.
I wanted to express how deeply saddened we are about at Roth and I am fully committed to doing everything necessary to build a better safety culture and improved performance.
Everyone at Suncor goes home safely each and every day.
But at my number one priority is improving our safety and operating performance.
To me safety and operating performance are strongly connected we cannot have great operating performance without great safety and simply non negotiable.
Safety is not only living up to our core values, but integral to delivering industry, leading operating and financial performance we expect.
I'll speak to this in a bit more.
More detail later in our call.
In addition to driving improvement in our safety and operating performance I want to be clear our strategy and debt reduction and shareholder return commitment from priority are not changing.
Suncor strategy, which is fully endorsed and supported by our board and to optimize our sustain our base business, while increasing shareholder return, reducing our carbon footprint and prudently investing in lower carbon energy.
The capital allocation framework as outlined last quarter will support increasing shareholder returns.
We announced a 12% dividend increase in the first quarter and by quarter end, we've already repurchased half the target buyback of 10% of our public float.
And once net debt reached <unk> 12 billion.
With respect in the second half of the year.
Main committed to further increasing shareholder returns to 75% of excess funds after capital expenditures and dividends.
Physical integration and Suncor is unparalleled integrated asset base will continue to be an area of strength that we will optimize the unlocked incremental shareholder value.
Demonstrated by our second quarter results.
However, we are reviewing options for our retail business to ensure that we're maximizing the long term value of that business for our shareholders.
We will disclose the results of this process in the fourth quarter.
We also remain focused on delivering on our free funds flow growth initiative and unlocking energy with Syncrude.
And while we have to acknowledge headwinds from higher commodity costs and inflation, including in our mining costs. We continue to make very good progress on our initiatives.
We continue to optimize our portfolio to ensure our business is set up to deliver superior long term returns to our shareholders.
To that end.
We have a site we assigned a sales agreement for the Norway assets for gross proceeds of approximately $400 million.
Which we expect to receive on closing later this year.
As well, we have moved into the final round and our sale of our wind assets and we're seeing very strong market interest.
And we have begun the sales process for our U K North sea assets.
All of these actions are to improved fit and focus in our portfolio aligned with our strategy.
And finally, we will continue to advance our strategy to meet our long term carbon reduction objectives and develop new low carbon businesses.
Ensuring that we prudently manage investments in those areas.
In summary, you should expect me to drive improvement in a safe and reliable execution of our operation while advancing our strategy.
Strengthening our balance sheet.
And growing returns to our shareholders.
Now, let's take a look at our second quarter results.
In the second quarter of 2020 to Suncor reported the highest quarterly adjusted funds from operation history at approximately $5 3 billion.
Our $3 85 per share as.
As well as free funds flow after capital expenditures of $4 1 billion.
Our $2 88 per share.
And we returned record adjusted fund flow right back to our shareholders.
Upstream realizations were on par with WTO.
In downstream captured strong product market values with near 100% market capture.
Both of these things highlight the strength and competitive advantage of our integrated model and our focus on higher value products beyond instrument.
Our upstream production of 720000 barrels per day reflects both planned and unplanned events in the quarter.
Oil Sands operations production of 365000 barrels per day included planned maintenance at fire bag and upgrade or two.
While the significant 10 year turnaround at fire back, which was the largest beneficiary with completed with solid execution and a smaller production impact and expected our production from this area of the business was below our expectations due to unplanned events at our Mackay River individual operation and base plant upgrade or one.
At the same time, we achieved 189000 barrels per day production at Syncrude, which exceeded our plan for the quarter and we produced 87000 barrels per day of Fort Hills, which is in line with our plan and reflect planned maintenance at that asset.
And we produced 79000 barrels per day, and our offshore segment.
Looking at our downstream results.
Weighted record adjusted funds from operations on both a LIFO and FIFO basis.
Our throughput of 389000 barrels per day, reflecting planned maintenance activities across all our Canadian refinery as.
As well as unplanned events with Commerce City refinery, which had approximately a 15000 barrel per day impact on the quarter.
And we have no further planned major maintenance in our downstream segment for the balance of the year.
Now, let me turn to our full year guidance.
After careful review, we've updated our annual production guidance to 740 to 760000 barrels per day, reflecting the performance year to date July and our expectation for the remainder of the year.
As well, we've updated our capital guidance to a range of four 9% to $5 2 billion for 2022.
This increase in capital reflects the white rose offshore project restart and our increased working interest in that project as.
As well as increased spend during turnarounds and maintenance to improve safety and reliability.
And general inflationary pressures that we're seeing across the portfolio.
And with that I will pass it to Alastair to walk through the financial highlights.
Thanks, Chris as you just noted this quarter was the highest of our adjusted funds from operations quarter for the company of approximately $5 $3 billion of result in EBIT per share.
Second quarter adjusted funds flow was strong on the retro than oil.
It's really about approximately 25% and 30% better than prior periods.
Retrofits, respectively.
We returned $3 2 billion or nearly 60% of adjusted funds from operations through dividends and share buybacks back to shareholders.
This quarter, we focused on share buybacks of our debt reduction and ballpark I mean, we're 4% of the public float.
Our net debt did increase due to the FX translation loss, while we continue to view dollar. However, our second half 2022 cash generation will allow us to achieve our $12 billion net debt target this year and continue to execute on our share buyback program.
While the market conditions were exceptionally strong during the quarter. It is our strong asset base and the physical integration between the drive industry, leading realization on margin capture.
Thanks.
These price realized was 141 Canadian dollars per bottle on the basis of an average price realized was 120 community builds per bottle I know, it's a realization on both crude types trended above headline benchmark due to investments in our marketing and logistics capabilities, which forms an integral part.
Of our $2 billion refunds for improvement.
For <unk>. This has been an exceptional business environment, which is reflected in our results are before tax $2 $1 billion of joining Steve adjusted funds from operations includes approximately $500 million of FIFO gain.
On a LIFO basis.
One 6 billion barrels of results in a significant increase from the prior quarter and.
Reflect nearly 100% margin capture of the exceptional market conditions. Despite the planned maintenance across all our Canadian refineries.
These margins are captured by prioritizing the highest margin channel on the flexibility within our network.
To place the second quarter performance in perspective, we beat our prior adjusted funds from operations record by over 30%.
This was achieved even with our planned maintenance and whatnot.
Mark travel on driving season, yet to occur.
Again, I have to credit the performance of our logistics and marketing team at all.
TV performance.
Lastly, I would also like to reiterate that our capital allocation policy remains on track.
75% of excess funds towards share buybacks once a $12 billion net debt target is achieved.
Confident in achieving that leads into the second half of this year.
I'll now pass over to Chris for some closing remarks.
Thanks, very much Alastair.
As I mentioned earlier my number one focus is improving suncor safety and operating performance.
I've been deeply engaged with the management team and our improvement plan and its execution to drive that improvement and strengthen our safety culture.
We completed independent safety assessment last year, and we're clear on what we need to do to improve our safety performance.
We do not need more diagnosis, but what we do need to do with execute and my goal is to deliver on this execution with focus and at an accelerated pace.
Yeah.
Well be working with my team on delivering a clear accelerated improvement plan that is focused on building a stronger safety culture, strengthening our risk management systems and improving contractor safety performance.
And in my view foundational to this will be engaging in enabling our frontline to deliver safe work each and every day.
I'll also be working with my team to make sure we have the right organizational structure capabilities and talent in place across the business to drive operational excellence.
We've already taken many steps in this regard, including assembling a strong central operational risk management team and staff by experienced operating people as.
As well as making key senior leadership changes in our oil sands and downstream businesses.
I will continue to make sure that we have the right people systems and structure to drive our performance forward.
And I will be focused on reducing complexity and driving organizational focus across the company company to deliver operating excellence capital discipline, and our free funds growth commitments.
And as you know our compensation systems are tied strongly to our performance, including environmental safety operating and cost performance.
Going to be working with the board and our executive team to further strengthen the connection between safety performance and compensation. According our organizational focus on reducing serious injuries and eliminating fatalities.
Again to be clear my commitment is to guide our company effort and focus on improving our safety and operating performance, while executing our long term strategy strengthening our balance sheet and growing long term returns to shareholders.
To put it simply we need to do is get back to basics with focus and follow through and that's exactly what we're going to do.
Finally, we plan to hold the recently deferred industrial operational day in the fall at which time, we will describe our safety and operational improvement plans and actions in more detail.
Announcement of the data that presentation will be coming out shortly.
And with that Trevor I'll turn it back over to you.
Thank you, Chris and Alastair I'll turn the call back to the operator to take some questions operator.
Ladies and gentlemen, once again, if you have a question or comment at this time. Please press star one one on your telephone keypad.
Standby, while we compile the Q&A roster.
Our first question or comment comes from Maryland.
Greg Pardy from RBC capital markets. Mr. Part of your line is open.
Hey, Thanks, Thanks, Good morning, and Chris Good to connect again, thanks for the thanks for the rundown I know you're going to talk in more depth around the safety initiatives, but can you perhaps shed some light on maybe what you've uncovered whether it's from a causality perspective.
And perhaps just some of the safety reset initiatives.
We are underway right now.
Yeah. Thanks for the question, Greg and good to connect as well too.
As I mentioned in the remarks, we did we did some in depth safety assessment last year in particular related to the fatality that we had in the mine tailings areas of our business.
And how does that make the assessment took a number of recommendations and started a number of actions and so theres been a number of things underway.
And examples would be.
We've talked about this in the past investment in technologies to make operations in that part of the business inherently safer collision avoidance technologies to keep management technologies as well as team has been working doing full reviews of high risk.
Areas in that part of the business to validate control and working with feed with the teams are working in those areas as well and in addition, we're strengthening our risk management systems from the center working with those areas of the company.
As I look at it hasn't been working with the team that we need to continue the momentum on those things we need to see where we can accelerate the pace quite frankly, but the other part in my view. That's really important is we have to engage to enable our front line. We have to work with the frontline because vascular work happens that's where the decision happen each and every day around the work we do.
And managing risks and that's working with the people managing the frontline with people doing work at the frontline and so thats going to be a big focus not that it wasn't but I see that as an area that we can accelerate further because in my view Greg at the end of the day safety culture development work to do it's how we do that work and we really wanted to strengthen how were doing work at the frontline.
<unk>.
Okay. Thanks for that second question is maybe could you provide us.
With a current status update not long, but just maybe just some quick hits on.
Our base oil Sands of course, Knowles, and Syncrude would sort of be sitting right now like are they at full rates are there any issues, we should be aware of.
Yeah, and maybe I'll cover a little bit of Q2, and then talk until where we are right now Graham consensus bridge into it but as we looked at the second quarter. We saw strong performance in Syncrude and we're continuing to see that as we move into the quarter and they are obviously have moved into their large turnaround event and it's off to a very good start.
Fort Hills.
In line with planned plant maintenance last year and coming out of that maintenance continuing with our expectations on plan.
And as well our tissue operations have returned from the incidence at Mackay River in the second quarter, and then fire back.
Fleet and its turnaround and have moved forward into the third quarter.
Capacity.
Issue has been an based plants and that's what we saw in the second quarter, we saw it in and you weren't upgrading.
With some reliability issues and we saw it in the front end and mine extraction.
Those issues some of them are persisting into the second quarter.
In Q1, they're going to get addressed in the upcoming maintenance events.
Which we've also pulled some of the work from Q4 into that event. So we can create a really clean fourth quarter as well and then the <unk>.
And issues that we're seeing in mine extraction, while we've been resolving them. They are persisting into the third quarter, they will get resolved as well.
So the way I would think about it Greg is that our Q3.
So we had large maintenance and syncrude as you know.
We have maintenance going on in Q1.
The other operations as I mentioned are on plan and so.
B you can expect Q3 to look similar to Q2, and then we're going to be setting up we have no maintenance in front of us going into Q4.
Okay understood. Thanks, very much Chris and good luck.
Thanks, very much Greg.
Thank you. Our next question or comment comes from the line of Manav Gupta from Credit Suisse. Mr. Gupta. Your line is open.
Good morning, guys. My question is Glenn.
Slight increase in Capex does it looks like more of an adjustment can you help us understand what part of it was some inflation and then what part of it was the decision to go back into West White Rose if you could give us some clarifying comments.
Yes, no. Thanks, thanks very much for that question. So, yes, we did adjust our capital guidance up.
And as I mentioned in my remarks, there's really three factors driving that the west White Rose project restart and our increased.
Working interest in that project recall as well that when we took the increased working interest we did get proceeds from the operator for taking that on which offset a good portion of our capital in this year from that project this year.
As well, we have increased spend related to turnarounds and maintenance year to date and that relate to found work as well as decision to undertake other work that we could ensure we're improving safety and reliability are strengthening.
And then thirdly is the general inflationary pressures so to give you some sense of sort of the magnitude about half the forecast are guided increases inflationary pressures and the other half is related to those other two buckets.
Perfect and a quick follow up here.
<unk> been very clear that once you kind of get to that 12 billion then 75%.
Free cash would be moving towards buyback when you look at the second quarter. It looks like you had already on that run rate and then just the 75% of the free cash is moving to biomass.
Comment on the pace of buybacks, which are very strong in the second quarter.
Yeah, Thanks, Bob resolved and I'll take that one.
Yeah, if you look at the second quarter.
We focus on the buybacks our capital allocation policy is really on an annual basis, we will pick and choose relative debt or reduction or buybacks in any particular month or quarter. You made the decision to focus on buybacks in the second quarter Youll see us move strongly in the third and fourth quarters to GDP.
Pat.
It's just really a function of cash flow generation.
And where do you think the opportunity to sell from an economic perspective, you felt we were strong in the Bible.
We will be rising interest rates, obviously in the second half will meet bond redemption cheap.
Cheaper than in the first half so economically better and then we have more cash flow generation in the second half, particularly with asset sales coming in.
Thank you for that and we look forward to meeting you again in the fall event. Thank you.
Thank you. Our next question or comment comes from the line of Dennis from from CIBC. Your line is open.
Hi, good morning, and thanks for taking my questions, maybe the first one to build off of what Greg was asking on.
And then a little bit of what monopoly. That's one just with respect to the.
Capex measures associated with it.
Improvement in safety and reliability and so forth I was curious as to Hasnt changed necessarily any of the timing I know in our previous conference call. There was a discussion around installation of anti collision technology has that been brought on board at all just given some of the changes with capital spending.
Yeah no. Thanks for that question. So yes, we do have these programs underway and they are over a period of time to implement this technology through 2022 and 'twenty three.
We're looking right now at where there's opportunities to accelerate that where it makes sense.
We're going to obviously be limited by the pace at which we can do it just to get the technology out into all of the equipment, but right now we're taking a look to see where are those opportunities just aren't material this isn't material capital.
At the end of the day, it's about how at what pace can we get this these investments in place related to those systems.
Great. Thanks, and my second question here is just around the $2 one 5 billion.
Free funds flow growth.
Just as you've outlined a little bit around.
Increased cap.
Capex.
Associated with inflation as well as the components of.
Can you just mentioned.
The improvement in safety measures, how does that potentially impact some of the initiatives like digital mine optimization.
As well as kind of technology initiatives that youre going forward.
Yes, Thanks Keith.
So recall, our free funds flow initiatives, there are a number of projects or initiatives that really fall into three buckets ones that are driving revenue and margin enhancements ones that are driving capital efficiencies.
Ones that are driving cost reductions.
Initiatives will span.
Two or more of those buckets.
And we're seeing certainly really good progress on a number of those fronts and particularly on our projects early on in the program have been focused on margin and revenue enhancement and an example would be the interconnected pipeline that we put in place which quite frankly.
<unk> is performing better than our expectations in terms of driving value and cash.
In terms of the cost side of it I mean, we do see headwinds obviously right now on the cost side in.
Inflationary pressures, but I was talking about and so that's something that will cause us to take a look at those initiatives and see can we accelerate is there other things we can be joined to offset.
And with respect to the technology piece, that's a big play.
In terms of driving driving efficiency and driving cash and give you just a few examples we just completed.
Our ERP implementation, that's Aps for it was.
One of the largest ones in the industry.
And from stem to stern upstream to downstream we went live in April .
We're now getting get into the mode of sustaining that system.
We can move into starting to optimize and get the benefit and there is an example of using technology to drive efficiencies in the work we do in a standard way as well as our central teams technology and digital teams are working with the business is upstream and downstream on opportunities to use data analytics and digital.
To drive to drive value, particularly through.
Revenue margin enhancement and operation of the business.
So I think to get back to you to get back to the end of your question I think as you were asking about the technology and digital part of it we'll look to see where we can accelerate those where it makes sense.
The things I'm going to do is.
Take a review of the portfolio of initiatives with the team to look for opportunities to accelerate and also make sure that we're focusing on the highest value and driving that focus on those and then looking for further opportunities just given the headwinds that we're seeing.
Perfect really appreciate the color that you've provided I'll turn it back thanks.
Thank you. Our next question or comment comes from the line of Doug <unk> from Bank of America.
Good morning, everyone, Doug Leggate from Bank of America. Thanks for all of you on.
Chris I guess I know you've touched on this already a couple of times, but.
I think you said you don't need more diligence so more reviews, you just need to execute well.
What if I may have you identified as the key differences between.
Similar to our operations that your peers on very different safety records is that something that you can kind of frame to say this is where we need to address or how would you frame those differences.
Yeah, no. Thanks very much for that so if we go back to the safety assessments and go back to where we've seen these tragic incidents happening there.
They are primarily there in one area of the business just minor tailwind and when I say, we don't need more diagnosis, we've undertaken a very detailed safety assessments with independent analysis with independent experts coming in.
Which has outlined a number of recommendations and as I mentioned, a few of them technologies that we've already talked about as well as really understand going in and looking at a high risk activity heavy to heavy vehicle contact light heavy vehicle contact working around water. The big risks that happened in that end of the business and just ensuring that our controls are robust.
And then.
It's not robust enough ensuring that we get those controls in place.
Those incidents.
They also come down too.
Two the work that's happening and how the work that's happening. So we're really focused on understanding how the work is happening at the frontline how.
How it's being managed how it's being executed and so we've got lots of when I say, we don't keep our diagnosis. We've done a lot of assessment. We've done those comparison those are the areas, we need to focus and work on and that's exactly what we're going to do and then the other piece.
Even though that's the area of the company, where we've seen those issues. What we're committed to is continuing to drive and strengthen that.
The culture throughout the company.
And so we're not just focused in that one area of the business, we're going to continue to strengthen across the company.
I know, it's not an easy answer easy question to answer Chris. Thank you for the color I guess my follow up is for all of the store, but it's a pretty straightforward one I hope I understood why is $9 billion. The hard floor for net debt is at the right number.
And that's a good question, Doug if you actually look at it.
And the low commodity price environment and were you satisfied $40 <unk>.
You look back at our history, we generally I'll be at around about $6 billion of cash flow in that environment low commodity prices.
Lower crack spreads so the $9 billion is derived from marijuana.
The coverage on Arps.
One of our time zone cash at $9 billion, I think thats, a reasonable level at a low point in the cycle gives us some scope to take upwards.
But it's long enough for a shorter period of time, but thankfully the rationale for awhile.
Okay fair enough. Thanks, very much thanks, guys.
Thank you.
Thank you. Our next question or comment comes from the line of minimal wholesale from TD Securities. Your line is open.
Good morning, Thanks for taking my questions I'll start with one on retail Chris I know you cant say too much given the ongoing strategic review, but as the former head of downstream would you be able to give us your high level thoughts on.
You would expect a retail sale or spin out you impact your downstream margins and your downstream business more generally.
Yes, thanks for the question.
As we.
<unk>, we have set up that review process, we have an independent board.
Board Committee set up and already underway undertaking that review and the decision will be taken by the board and we are reviewing all the options related to that business from.
And you mentioned some of those options.
And so we're going to pursue that work and support the board and that assessment through the coming months and then be in a position to have a decision and get back to you and with that decision in Q4 in terms of your question with respect to how would it affect downstream margin.
Thats exact that that's one of the key pieces of doing this work and supporting the decision of the board around the business and look at these different alternatives and what and the value they create.
And the impact that they will have.
On on the integrated model and the business.
To wrap back business as well so that's a that's a key aspect of doing the work and then and then providing that that really.
Good clear unbiased view of both sides of that question to come to the best decision. So that when we do make the decision around the retail business. It's in the best interest of driving long term value for the shareholders.
Perfect. Thanks, Chris and then the second one is for Alister.
Your expectation that you get to a seven 5% return on free cash flow by the ended the year and I noticed that that does include that.
Disposition proceeds. So my question is which asset sales are included in that.
Calculation and I'm, probably stretching here, but would you be able to give us a rough sense of how much is being modeled in terms of aggregate proceeds.
Yes, that's a good question Menno, obviously, norway than there.
Illinois business around $400 million.
We're looking at.
The wind and solar sale as well I'm not going to disclose.
Because obviously, we're seeing tremendous some negotiations.
Okay, and so presumably the UK would not be in there.
No no absolutely not but it wont be in there it will be a 2023 number.
Okay perfect. Thanks Alastair.
Thank you.
Next question or comment comes from the line of John Royall from Jpmorgan, Mr. Roy of your line is open.
Good morning, guys. Thanks for taking my question.
So in refining.
Understood that youre done with major maintenance for the year, but just a broader question on turnarounds going forward I'm wondering if.
Coming out of this year, you'll be fully caught up on any deferrals of turnarounds you might've taken as a result of the pandemic.
And is there anything beyond kind of normal course looking into next year any early look there.
Yes, thanks for the question John .
Pretty good the straightforward answer yes, we don't we're not managing any divert deferrals out of the pandemic. We are on a regular turnaround cycle and so next year well, our turnarounds will be part of that normal cycle.
Great. Thank you and then.
You had a big working capital headwind in <unk> I was just wondering if you could speak to the source of that drag and maybe how much of its price related and should we expect maybe about the turnaround in the back half of the year.
Yes, so price related I mean, it's really accounts receivable and inventory valuation.
<unk> purchases.
<unk> Street family.
<unk> remain lower as you have seen in the last couple of weeks would you expect to see some of that released in Q3 Q4.
Great. Thank you.
Thank you. Our next question or comment comes from the line of Roger read from Wells Fargo was to read your line is open.
Yeah. Thank you good morning.
Good morning back to.
Hey, good morning, Chris I'd like to come back to the safety aspects of the company I mean, it seems like.
Factor that really sort of separates what's been going on at Suncor from the rest obviously the board is looking for a new executive leader before the year's out or early next year.
That person will want to put their stamp on it but what do you feel you can get.
As al or early next year.
That person will want to put their stamp on it but what do you feel you can get done between now and then from a safety and from a culture standpoint to get to the <unk>.
Company pointed in all the right directions.
Yeah. Thanks for that question Roger.
And my focus is to drive safety and operational improvement and to really do the things that I talked about earlier.
The board will make its decision in terms of the permanent CEO and probably in that timeframe you just deadline, but in the meantime, we can't stand still and I have the full support of the board to drive the changes necessary and to engage to do the things with the executive team and all our employees to get to get the improved performance we're looking for.
I was wondering if I could just dig into that a little bit more do you feel that some of the safety issues.
Is it as simple as technology in an underinvestment or does it feel like it was more of a maybe misplaced.
Goals in other words, focusing on one thing, but forgetting maybe some of the other important aspect. So I'm just trying to get a feel for.
What it really will take to correct. This whether its done in the next six months or it's done over the next 18 months.
Yes, no. Thanks, Thanks Roger.
This isn't about about.
We had some underinvestment or missing second our technology is an enabler.
It's one of the things that we can implement.
Two to improve our ability to manage the risks and if we do fail fail safely.
But that's not that's not at its roots the issue of the fact that those systems work there.
Similarly, this isn't you know in my view, it's not about.
<unk>.
Put the focus the organization in the wrong places.
When we look at it comes back to what I was describing earlier, it's about it's about the execution of the work and if I go back to the incident that we have had it's been how the work and execute in the field and we have to get and while technology will be a huge enabler and will implement those thing and while we will absolutely be strengthening.
Our systems and processes and procedures, but we have great systems processes and procedures, it's really enabling and engaging to ensure that that works happening safely each and every day in the field and so that's really I think the area in my view that that needs to focus and attention.
Isn't there isn't.
A question of the thing we didnt invest in technology, and therefore, we have to say that that's not the case.
No that's fair I mean my experience with this.
It tends to be more of a cultural issue and just sort of focusing on the right things.
I guess in the in the future. If you can kind of give us an idea of.
Where that focus has shifted.
And safety.
Safety really being core enough to drive the changes and other processes that will be great. I. Appreciate your comments. Thank you.
Alright, Thanks Roger.
Thank you.
Showing no additional questions in the queue at this time I'd like to turn the conference back over to Mr. Trevor Bell Vice President of Investor Relations.
Thank you operator, and thanks, everyone for joining us today.
If you have any follow up questions. Please reach out to myself or my team and we're happy to answer them again, Thank you for attending.
Ladies and gentlemen, thank you for participating in today's program. This concludes the program you may now disconnect everyone have a wonderful day.
Conference will begin shortly to raise your hand during Q&A you can dial one one.
[music].
Okay.
Yeah.
[music].
[music].
Yes.
Yes.
[music].
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[music].
Yes.
[music].
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[music].
Yes.
[music].
Sure.
Yes.
[music].
Sure.
[music].
Sure.
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[music].
Yes.
[music].
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[music].
Yes.
[music].
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[music].
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[music].
Yes.
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[music].
Yes.
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[music].
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[music].
Thanks.
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[music].
Yes.
[music].
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[music].
Sure.
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Yes.
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<unk>.
[music].
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Yes.
[music].
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[music].
Yes.
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Yes.
[music].
Yes.
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Yes.
Yes.
[music].
Yes.
Yes.
[music].
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[music].
Yes.
Yes.
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Yes.
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Yes.
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[music].
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Yes.
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Yes.
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Sure.
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Yes.
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[music].
Yes.
[music].
Thank you.
Right.
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Yes.
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Yes.
[music].
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[music].
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[music].
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Yes.
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[music].
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Yes.
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[music].
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[music].
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[music].
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[music].
Yes.
[music].
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Yes.
[music].
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Yes.
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[music].