Q2 2023 West Fraser Timber Co Ltd Earnings Call
[music].
Good morning, ladies and gentlemen, welcome to West <unk> second quarter 2023 results conference call.
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During this conference call West Fraser's Representatives will be making certain statements about west freshers future financial and operational performance business outlook and capital plans.
These statements may constitute forward looking information or forward looking statements within the meaning of Canadian and United States Securities laws.
Such statements involve certain risks uncertainties, and assumptions, which may cause west fraser's actual or future results and performance to be materially different from those expressed or implied in these statements.
Additional information about these risk factors and assumptions is included both in the accompanying webcast presentation and in our 2022 annual MD&A and annual information form which can be accessed on west Fraser's website or through SEDAR for Canadian investors and Edgard for United States inverse.
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I will hand, the call over to Mr. Chris <unk> you may begin your conference.
Thank you Hilda.
Good morning, everyone and thank you for joining our second quarter 2023 earnings call.
Christopher I'll stick Chief Financial Officer of West Fraser and joining me today are Ray Ferris, our president and CEO , John Mclaren, Our Chief operating officer and other members of the executive team.
I'll begin with a brief overview of West Fraser Q2, 2023 financial results and then pass the call to Ray who will give an update on the business as well as provide a few concluding remarks before we transition the call to Q&A.
As a reminder, we reported U S dollars and all of my references today will be the U S dollar amounts.
Otherwise indicated.
West Fraser generated $80 billion.
Adjusted EBITDA in the second quarter, improving from the $58 million of adjusted EBITDA reported in the first quarter.
Our North American AWP segment generated $126 million of adjusted EBITDA.
Up from $31 million in the prior quarter.
<unk> that had included a $15 million inventory breakdown.
OSB prices that began to rise strongly midway through the quarter drove the majority of the sequential EBITDA improvement.
The lumber segment posted $10 million of adjusted EBITDA This quarter up from the prior quarter with lumber demand showing signs of improvement as the second quarter came to a close.
The pulp and paper segment struggled in the second quarter with negative $74 million of adjusted EBITDA versus $7 million in the prior quarter.
Second quarter included a 24 million inventory write down as a result of significantly declining pulp prices through the quarter.
It's worth noting that this quarter was marked by considerable disruption within the pulp segment with all four of our pulp mills taking downtime.
In particular tariff pulp and paper was down for a month in response to fiber availability constraints slightly alter intermittent downtime due to energy prices.
Long maintenance outage at Hinton pulp, which was significantly longer than originally anticipated.
Pulp segment challenges notwithstanding the mill shuts are now behind us and we have been especially pleased with the performance of our <unk> E mails since they've come out of their shops.
In Europe adjusted EBITDA was 19 billion in the second quarter as demand showed signs of weakness later in the period.
These results were in line with $20 million in the first quarter.
In summary, lower prices of maintenance downtime in our pulp business created a headwind this quarter, while improving pricing across our North America DWP business was the largest positive contributor to the company's sequential EBITDA improvement.
In addition continued strong contributions from our non OSB panels business has also helped.
Cash from operations was $272 million for the quarter.
I would like to a reversal of a seasonal working capital build in Q1.
Cash net of debt increased to $449 million from $309 million last quarter.
As our cash flow more than covered.
$5 million of dividends paid and $106 million invested capital expenditures.
Subsequent to quarter end, we renewed and extended the maturities on both our revolving line of credit and our term loan.
I guess with EBIT further financial flexibility to execute on our corporate strategy.
In terms of our operational outlook for 2023, we are reiterating our guidance for lumber and European OSB shipments.
Given the stronger than expected North American demand for OSB.
We're increasing the guidance range for North American OSB shipments.
We now expect this year's OSB shipments to be in the range of six 1% to $6 4 billion board feet on a free basis up from our original guidance of $5 9 billion to $6 2 billion square feet.
We're also modifying our expectations for capital expenditures, while we still expect capital investments to be in the range of $500 million $600 million in 2023.
Given the delays in equipment deliveries and the rate of expenditures year to date.
Don't expect this years Capex will be closer to the lower end of the guidance range.
With that overview I will now pass the call to rate.
Thank you Chris.
And look just to know usually Chris and I are side by side on the calls and he can keep an eye on each other I'm, calling in from our more sawmill located just outside of.
Wilmington, North Carolina today, So we'll see how this goes.
And before I reflect on our financial performance in the second quarter.
Just reinforce on Chris's comments around the disruption we experienced in Q2 and primarily in Western Canada.
I can't or won't tech I'm, not really able to add anything on the pulp performance our characterization of that but just glad.
Glad the major shots are behind us.
I would reinforce the impact of Alberta wildfires fast so for much of this.
Yes.
First quarter second quarter or that quarter.
Multiple evacuations in number of communities power outages employee disruptions.
Which team fighting fires and.
Protecting our log inventories.
Isn't a great recipe to lead to create an efficient performance how does that really important sector for us so saying that really very pleased with how our upper team performed considering the environment that they work so hard to operate in.
And of course conditions late in the second quarter and early in Q3 have returned to a normal cadence. So we're happy about that.
Was that comment.
I would shed some light on our on both <unk> and <unk>.
Little bit about our sustainability and the recent release of our 2022 sustainability report.
I'm very proud to report today that.
Last month West Fraser released its 2022.
Sustainability report.
And we did this.
A month earlier than last year.
And.
Very proud of the achievement of the team and very proud to recognize that there are many people who worked so diligently.
For West Fraser to make this happen.
As everyone knows a company that was founded nearly 70 years ago.
Truly understand the importance and necessity of doing the right thing for the environment, our communities and our employees.
Well.
Sustainably and profitably growing our business.
In 2022, we took important steps towards achieving our goal of obtaining a sustainability leader.
Including planning, an additional 66 million seedlings in our Western Canadian managed forest curious.
On top of the 2 billion trees that.
We've recorded in the history of the company.
We continue to invest in the local communities in which our people work and live enhancing our diversity equity inclusion policy and strategy.
Yes.
Building on these foundations, we very much continue to work to advance credible environmental sustainability and social goals and targets to guide the company's next chapter.
Earlier this month, we announced the planned sale of our Hinton, Alberta pulp mill to a key strategic partner Monte group.
A global leader in sustainable packaging and paper manufacturing.
This transaction Mondi has announced intentions to invest some 400 million euros or $575 million Canadian and the expansion of the mill over the next few years, primarily for the installation of a new Kraft paper machine.
The transaction with Mondi is anticipated to close by year end subject to the normal completion of customary regulatory approvals.
West Fraser will continue to supply fiber to the hidden mill under a long term contract from West Fraser's, Alberta sawmills.
We are very pleased with the outcome of this transaction.
It creates a sustainable long term future for the pulp mill, which we think is the best outcome for our employees the community of hidden and frankly, the province of Alberta.
This puts the Hinton mill in the hands of a global and proven leader with the expertise the vision and market strategy.
To maximize the potential of the mill, while maintaining an integrated fiber supply chain that is so important to west Fraser's operations in that region.
As many are aware of the hidden pulp mill has at times been a challenge for us.
And the next steps would have required significant capital and a market strategy for what.
Frazier to continue to operate effectively in place.
Once the transaction completes later this year the mill will get the investment it requires and allow us Frazier to focus on key growth areas, while benefiting from a long term fiber supply agreement.
And expectedly more stable future cash flows out of that area.
Now shifting back to.
My thoughts on the second quarter.
This quarter, we experienced somewhat soft demand early in the quarter as last year's relatively rapid increase in mortgage rates seemingly continued to impact overall consumption.
However, as the second quarter progressed, we saw demand improve for some of our key products, particularly in OSB into some extent Canadian lumber.
This demand improvement allowed us to continue to run more normalized lumber.
And AWP operations when compared to production downtime that we took late last year.
With respect to outlook.
<unk> building products industry may continue to face challenges.
Everything from rate hikes to labor constraints and the potential for slower demand due to the constraints of housing affordability.
That said inflationary cost pressures have continued to moderate across our supply chain for raw materials such as energy.
In chemicals, and we believe this trend will continue through the remainder of 2023.
On the new home construction front, we continue to see positive demand signals carried over from the Springs key building citizen.
And the strong upward trend in mortgage rates that we experienced through much of last year appears to have eased.
Both of these factors are helping for driving consumption of our wood building products.
In both new housing starts and repair and remodel activity.
Yes.
But can you do continue to believe the North American market is structurally under belt has significant longer term demand remains.
In closing, while near term uncertainties exist across the industry, including our business, we remain confident in our geographic and product diversity, we have built and in our operating and growth strategy.
We have navigated many industry cycles in the past and we have the people assets and financial flexibility to allow us to capitalize on additional opportunities as the demand environment becomes more favorable in the years ahead.
We have been a disciplined.
In our capital allocation strategy and to preserve capital in the event that we have a down market like the one we're currently experiencing.
And we plan.
To remain steadfast in this approach.
This discipline has positioned west Fraser to be able to execute on our operating strategy by investing in and improving our assets through various market conditions, well poised to take advantage of growth opportunities if and when they unfold.
As we look ahead, we will continue to focus on our core strengths of being low cost.
<unk> remained committed to our capital allocation strategy.
We look forward to a future with the growth in demand.
For the types of sustainable and renewable building products.
For which frasier's now.
With that operator, I'll turn it back to you for for Q&A.
Thank you ladies and gentlemen, we will now begin the question and answer session.
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And we have our first question from <unk> Patel from CIBC capital markets. Please go ahead.
Yes, good morning.
Ray given the strength, we're seeing in the OSB market, how much potential do west Fraser has to Debottleneck.
Some of your existing OSB mills, and can you give us a sense as to where allendale is operating at today.
Well good morning <unk>.
I'll do my best there so.
Yes.
First let me I want to talk about LNG I think.
<unk>.
And we've got a group heading up there to visit that mill here.
Very short Royal today actually so we've been very pleased with.
With our execution.
The team has done there on the capital side and.
Including Debottlenecking in the front end of that mill, where we spent.
About $75 million.
Do that and so the ramp ups is going it's early stages, but it's gone very well I think I think we may have noted in the MDA that.
They are already certified for.
700, <unk>. So we're in some ways ahead of <unk>.
Slightly ahead of where we'd like to be but I think its just gone very well and kudos to the team there.
So.
I don't I still think that.
Production of Allendale won't be that significant through the year.
Is it a ramp up stage and really be.
Over the next couple of years that were received volume come on there and I would just say look.
I think its I don't think its I don't think its new I think we continue to execute on execute on.
What I would call.
Low risk high return.
Profit improvement projects throughout the company, but particularly it also in our OSB. So.
I really can't.
Give you too much guidance here because I mean.
I think.
I think we're pleased with kind of what our position is and I think we're in a great spot to meet the market as it grows.
Okay Fair.
Fair enough.
Turning to the pulp and paper side with the <unk> sale.
Are you considering some other potential opportunities to shrink your exposure there while still maintaining an outlook for your chips.
Well.
Sameer integration the integration strategy, we have in Western Canada has been absolutely critical to our success to date, including Canada.
And.
That remains so which is I think so key to how we were able to structure the Monty transaction.
So.
Hollywood answer that has humira there isn't a day, where we are sitting back and looking at our business and trying to determine how to make it better and so that's that's every corner of our business, whether it's lumber plywood OSB or pulp and so.
That's our job and we're going to continue to look for areas to make the company stronger.
Great Thats, great Thats, all I had I'll turn it over.
Thanks Amir.
Thank you. Our next question comes from Sean Stewart from TD Securities. Please go ahead.
Thanks, Good morning, everyone.
Couple of questions I wanted to follow up on Amir's question with respect to that.
Paul.
Can you give us a sense if we exclude the inventory write downs, how concentrated were Q2 segment losses towards specifically, we exclude that asset.
Mr. <unk> do you want take a shot at that.
Yes sure.
Thanks, Scott I would say.
As we've said a number of times when we looked at our when we look at our segment.
Pulp and paper segment right.
I think.
<unk> direct quote previously it has been.
We got we got three assets that we really like and one that we struggle with.
Yes.
So we think we've found a way here to kind of clear that out.
In the quarter there we had a shot that was much bigger.
There I would say the price that we anticipated the price declines really.
Affected all of the different grades of pulp.
<unk>.
<unk>.
But consistent with kind of what we said all along is that the <unk> E. Mails EBIT may in top markets outperformed reasonably well.
I think it's probably fair to say a big a big piece of that.
That inventory write down was not intended but.
It did contribute a significant portion.
The overall results.
In pulp in the quarter.
Because of the extended shut in because U K P. On a relative basis I think struggled more than the other grades in terms of pricing realization. So it was a it was a more than proportionate contributor too.
Two the results in pulp in the quarter X.
Thanks.
Inventory reserves.
Okay that helps thanks for that detail Chris.
Second question.
<unk> is on the Capex guidance here youre, indicating it'll be towards.
The bottom end of the range.
And.
I guess that relate to.
Slower than expected pace in the first half of the year.
And I'm wondering if you can qualify that is company specific delays versus.
Broader industry backlogs, how has that affected it and then I guess more broadly speaking if I think about Henderson, specifically youre still talking about a second quarter next year.
Startup is there any potential risk to that that project timeline.
Well, Sean ill anyway. Good morning look I'll take a try at that and Chris can Ken can jump in and.
Look at your hard to comment on what others are seeing in the industry and I think it's.
Against the backdrop that we actually do see improving so we continue to see improvements on the supply chain.
And more access and availability to.
Two.
Different different pieces of whether it's mobile or.
Hard equipment for OSB or a saw mill, but but so that is improving but.
But I think that's kind of more future going.
I would say, we typically have had an aggressive.
Capital strategy I would say.
I would say there is two things one certainly.
Access to skilled labor and contractors and the timing of that still remains.
Probably the key part of that equipment side improving.
But still a very difficult.
Skilled contractor labor market.
That I think is probably the biggest outlier I would think that that kind of delays. These things. The other aspect I would say our team has kind of taken on.
A bit of a strategic I wouldn't call it strategic but being very.
Prudent on making sure that we're not taking a more on more than we can start up and so theres been a few.
Operating decisions, which have contributed to that to say, we're going to hold off on this while we execute on this part of it but I would say three quarters of it Shawn is related to <unk>.
Mostly on the.
Thank you.
Labor constraints, and just being prudent making sure we get the contractors that we want.
Helping us with our projects.
Okay and no specific concerns with respect to the Henderson projects timeline be.
<unk>.
Well I'm going to be there later this week Shawn but at this point.
We're a ways away here, but.
At this point, we got the same concerns that they wouldn't have but I'm more concerned about.
High quality good start up then the exact timing, but right now we're still planning for <unk>.
Second quarter of next year.
That's great detail okay. Thanks, I appreciate it guys.
Thanks, Sean.
Thank you. Your next question comes from <unk> <unk> from BMO capital markets. Please go ahead.
Good morning, Chris and thanks for taking my question.
Perhaps first one.
All right can you give us a quick update on your log decks and Buckeye.
If you can give us a quick update if you can if we are able to go into the forest and kind of get logs what is the situation right now.
And I think that.
I'll take it so look.
I don't think I'd comment.
Too specific on that so it would be very general Kitanoumi would mean.
I mean look I mean the.
Yes.
Every region and every operation is different so it's very hard to just generalize but look.
But in Alberta, typically we bring all of our log inventories in most of our inventories in through the through the winter and.
And then there is we're generally not delivering delivering many logs in most of our divisions through the summer.
But look.
<unk>.
And so.
Yes.
I wouldn't say, it's had a big impact on our inventories at all it but.
But look what we're more concerned about us having a what's groups.
<unk> been able to do good forestry to be planting trees.
And to be making.
Making good plans for next year. So there they are pivoting to try and figure out and work with government and others on an.
Yes on that.
Essentially moving to salvage operations around.
Bert timber in the areas that we can so.
Look it's not I would say.
Yes.
If you look at I'm.
Im sure Theres been some impacts, but I don't think it's anything that we're laying awake about on on the inventories that we have in our yard or in the Bush at this point.
Got it.
And then Chris.
On the capital allocation side.
Can you just remind us as we sit here today, you've got a strong balance sheet.
Hi.
Demand so far.
In our case in the new residential side has held up.
Better than what a lot of people are expecting we are seeing a pretty nice rabin OSB prices.
Can you talk about kind of appetite for R.
Our approach towards share repurchases.
At this juncture, given kind of where the balance sheet is.
Yes, sure happy to I would say as we entered the year.
Given the macro uncertainty we felt it was prudent to be just a touch more conservative with our repurchase activity.
Given the drawdown in the cash balance that typically happens in the first quarter with the working capital build.
I think at the macro environment begins to clarify we'll continue to look for those opportunities to return surplus cash to investors through share repurchases I think it's been.
As you noted.
Despite what's happened with interest rates.
New construction side of things has been a lot more resilient than folks had anticipated and demand has been more resilient in the face of those higher interest rates I don't think.
Anybody would've been magic.
Six or eight months ago, we'd be sitting here with interest rates, where they are seeing the kind of OSB prices.
That we're seeing now and the demand for it now so.
I think it was really it was really tough to see what's coming here and to see EBIT oxide.
But we've got lots of financial flexibility, we take most importantly to just continue to execute the strategy right and I think thats one.
One of the things that we've been pleased that we've been able to do here over the last three quarters, which have been a bit top is not stray from that capital plan has stayed the course on this strategy.
And when those opportunities are there to deploy the capital.
To share buybacks, and we think that.
We're trying to trading at the right level.
Relative to do it through a transition I think there's no reason why we wouldn't be there.
Got it no that's helpful perspective, I've done it over good luck.
Thanks.
Thank you. Our next question comes from Paul Quinn from RBC Capital markets. Please go ahead.
Yes, thanks, very much good morning, guys. So.
Maybe start with Ray because I think Ray you are the ones I mentioned, Europe , especially being weaker towards the end of Q2, just wondering if you could give us more color on that and then remind us of what your <unk>.
European OSB capacity is relative to the.
The shipment guide of 1 billion to $1 two what's your operating rate and what are you doing for shifting.
Well good morning, Paul and those are those are very good and very specific questions.
And so.
I think.
Thank you.
When when we're if we need to change your guidance I think it will change our guidance and one thing I would say is that.
<unk>.
The operating.
What we see in Europe is certainly it's been it's been softer than we've seen in North America without a doubt and.
And.
So.
So on how we.
Frankly.
Our operating strategy is really just to meet the existing order files and.
And.
And but look we are operating at reduced schedules and.
At times and.
We're optimistic as we look forward, but.
When it comes to visibility in Europe .
Higher inflation.
Other issues going on in that region.
Uh huh.
Political conflict and others so.
I would say, we're just being taking a very very much like our position, but taken a very cautious approach to how we operate and not getting ahead of the market and realistic that.
Europe could lag.
Kind of North America.
That's our approach, but but look.
Don't have the guidance open in front of me, Chris might want to comment on that or correct, something but I think we're.
I think we think it's going to probably stay in stay in the zone that we're in.
For a while and if we're wrong it'll hopefully it's wrong to the upside.
Okay.
Yes.
Right.
Definitely I don't really have anything to add to that.
Go ahead Paul.
Alright, maybe I'll just switch it over in North American lumber.
How would you characterize that market do you see that balanced and then what do we need to see to be able to return west Fraser profitability to sort of trend.
<unk> normalized the normalized rate.
Well I'll take yes so.
You know look.
British Columbia continues to be a very difficult place to operate.
And.
Particularly with respect to cost and access to timber and so our operating strategy.
We'll continue to do what we need to operate.
Responsibly in that region and so I think if you look back in the quarter you can see we continue to take steps to.
Operate our business as prudently as possible.
Costs are.
Somewhat improve.
Improving.
But.
We've got still quite a ways to go so.
Alberta.
You know.
I would expect us to return to our normal cadence.
As we go forward I mean, I can't predict forest fires of any better than anyone else and so.
And it's been an unusual year.
Although these things seem to happen.
More regularly.
Particularly in Canada, but I mean, we're somewhat.
Optimistic that the worst is behind us, but you don't know, but so Alberta is a very important region for us.
And.
And I expect us to kind of return.
And then in the U S. South I mean, you've seen SPF come up as we all thought the gap between S Y P. In SPF seem too big an unsustainable.
Those things that you don't want to have happen where S. Y P goes down in SPF goes up is not the way you want to close that gap.
That's what's happened.
I think much focus has been on.
You know.
European imports we do.
<unk>.
Don't have great visibility into that but I mean, we track everything that everyone.
Does as well and we do see that alleviating somewhat so we think that's a that's an important.
The important piece and.
I do think.
I do think as we start to think about the North America really the U S economy.
Starting when we.
C. The third leg of that you think about housing starts are good.
Repair and remodel.
That bad.
The third leg of the industrial piece is a key.
I do think we've seen after a slow first half.
Some green shoots that the industrial sectors.
No.
Having a little bit more legs to it so long long answer to a simple question.
So we're you know, we'll see where I guess, we'll see what Q3 and Q4 have for us but.
Chris anything to add.
No.
Okay. Last question then just congratulations on the start up of Allendale. It sounds like it's doing well you've raised your shipment guidance by 200 million square feet are kind of three 5% overall.
Where is that extra volume coming from it it doesn't sound like it's coming from Alladale or are you going to increase shifts at certain mills or.
How are you getting the extra 200.
Yes.
So thanks, Paul No I mean.
I mean look we've.
Uh huh.
There was a question or a comment about debottlenecking.
We've had.
And not unusual I mean, but we have.
<unk> had some very good capital get behind Us and certainly some of that comes from improved operating efficiency and getting.
Getting the payback so those projects quite happy with that Youre right Allendale won't be a meaningful we don't expect it to be a meaningful contributor to that number but but it's it's a it's a little bit of.
Debottlenecking, if you will and.
And look there is we've.
<unk>.
Uh huh.
Across our portfolio always looking at our operating strategy, including where our maintenance shuts are in and how we're going to operate so.
There can be sometimes a portion of that around shifting so I'm not going to split it but it's a little bit of both it's a little bit of both.
Alright.
Good luck.
Thank you.
Thank you ladies and gentlemen.
Remind us should you have a question. Please press star followed by one.
Our next question comes from Andrew Kuske from Credit Suisse. Please go ahead.
Okay.
Thanks, Good morning, I guess the question is for Ray and its really along the lines of making the business better every day and thinking about that.
Lumber and OSB very large businesses.
Leading big scale and then when you think about some of the balance of your business the pulp and paper Mills, one LVL planned.
How do you think about these businesses in some cases, they're nice and supplemental and symbiotic.
But are there business areas, where you need greater scale or are there other opportunities to do things like you did with her with Hinton, where maybe it's just better off in the hands of someone else and you can be creative without being too complicated.
Well good.
Good morning, Andrew.
You know.
Yes.
I'll reiterate, particularly in Western Canada and look at for sure there is.
I think theres always opportunities in every corner of our business.
There are no.
There's there isn't anything that we wouldn't touch or.
Review, our strategies to say Hey is there a different strategy here, where we can improve the value of west Fraser allow us to focus.
And so like I think as the company grows those opportunities.
Don't go away they grow and so I think.
What I would say is I think it's a healthy part of our DNA to challenge ourselves on everything we do in every region. We operate in every product that we make in <unk>.
And we're probably pretty tough tougher than you think on ourselves. So so without a doubt we think about those things all the time.
One of the advantages that we have is in some of these areas that we operate even where we might not have the scale that.
That we ultimately may pursue isn't is often integrated logging strategy to extract the highest value from that forest.
And the LVL plan is a great. One so we have between plywood LVL.
And our.
So underlying we're able to look at that for us.
Sure.
And take advantage of that extracting the highest value. So sometimes we think the best way to do that is by is by owning and operating those assets when when that isn't the best strategy owning and operating those assets to extract the greatest value for the company then.
We will make a different decision, but I think I think it's.
I think it's an important question and I would say, we expect to be diligent and <unk>.
Hold ourselves accountable for making sure we got the right portfolio to to operate at West Fraser.
I appreciate the color and then maybe just switching gears a little bit if we focused on your OSB business in Europe .
Are you seeing any sort of fundamentally different drivers interest market behaviors UK versus what you've got in Belgium, and really the interplay between the two major plants.
Oh well.
<unk>.
I don't mind, telling you that.
I think people know on the call I mean, Europe is completely different in North America, we talk about regional differences in North America.
But you know.
It's an order of magnitude different in Europe . So.
I would say Inverness tends to serve a primarily a U K.
Market in the Belgium.
Operations serves.
A number of very specific and unique markets and.
They have a very.
So.
As far as interplay I'm not sure how to answer that but I would say.
Both mills are operating very very well.
Really happy with our with our our product and operating strategy, there and and but look.
Germany is so different in France, France is so different in Belgium.
Scotland's different than England and so.
I'm not sure I'd be able to knowledgeably tell you the differences between them except that.
They they do there is some overlap but they're for the most part they operate.
Two a lot of independent markets.
Okay I appreciate that thank you.
Thanks Nadir.
Thank you.
There are no further questions at this time.
I would like to hand, the call back to our presenters for any final remarks.
Well, thank you Hilda and look everyone. Thank you for joining our call today as everyone knows Chris Robert and myself are available.
Mostly Christian Robert to to answer your questions.
And Robert Winslow is our director of Investor Relations current development look thank you for calling in today and we look forward to.
To talking to you next quarter. Thank you.
Thanks.
Thank you ladies and gentlemen. This concludes your conference. Please disconnect your lines.
Yeah.