Q2 2024 Equinor ASA Earnings Call

Unknown Executive: Half of 2024 will be lower, and we expect cash from operations to be in line with what we have said, around $17.5 billion for the year. I will revert. Adjusted earnings per share were $0.84.

Will be lower.

And we expect cash flow from operations to be in line with what we said.

What we have said our own 17, and a half billion dollars for the year.

Will revert to this.

Adjusted earnings per share were <unk> 84 cents.

Unknown Executive: Across the portfolio, we are making strategic progress. On the NCS, we started production from the Kristianshavn area earlier this month, and the partner-operated Hans Field came on stream in April. Together with our partners, we made an investment decision for the Troll field, which will accelerate production and maintain high gas export levels. This investment is highly valuable, with a net present value to Equinor of more than $500 million. We continue to enhance our oil and gas portfolio. In Norway, we align our ownership interests across licenses through a swap with Peturo.

Across the portfolio, we are making strategic progress.

On the NCS, we started production from the Keystone South area earlier this month and the partner operated Huntsville came on stream in April.

Together with our partners, we made an investment decision for the troll field, which will accelerate the production and maintain high gas export levels.

Akron: This is investment is highly valuable with a net present value to akron or have more than $500 million.

Akron: We continue to high grade or oil and gas portfolio.

In Norway, we align on our ownership interests across licenses through a swap with the tool.

Unknown Executive: Aligning ownerships will be important for accelerating production, reducing costs, and driving the full potential in key areas. In the US, we closed the swap transaction in onshore gas with EQT, creating more longevity and robustness and reducing the break-even for those aspects.

Akron: Aligning on the ships will be important for accelerating production, reducing cost and driving the full potential in key areas.

In the U S. We closed the swap transaction.

Akron: In onshore gas with EQT.

Akron: Creating more longevity and robustness.

Akron: Reducing the breakeven for Rosa.

Unknown Executive: With more than 30 percent, 10 million tons of injection capacity per year. Finally, for Empire Wind, we achieved a new higher strike price of $155 per MWh earlier this year. We continue to move forward with the project, and our next external milestone will be the financial. The competitive capital distribution continues in line with what we have said in our capital market. For the quarter, the board approved an ordinary cash dividend of 35 cents per share and, in addition, 35% in extraordinary dividends.

Akron: Just with more than 30% scheme millions tons.

Akron: In injection capacity per year.

Akron: Okay.

Speaker Change: Finally for Empire wind, we achieved a new higher strike price of $165 per megawatt hour earlier this year.

Speaker Change: We continue to move forward with the project and on next external milestone will be the financial close.

Speaker Change: Okay.

The competitive capital distribution continues in line with what we have said as our capital markets day for the quarter. The board approved an ordinary cash dividend of 35 cents per share and in addition.

Speaker Change: 35% in extraordinary dividend.

Unknown Executive: At CMU, we introduced a two-year shared buyback program to increase predictability. The program is 10 to 12 billion dollars in total, with 6 billion dollars allocated this year. In line with this, we announce the third tranche of up to 1.6 billion dollars starting tomorrow. For 2024, we expect to deliver a total capital distribution of $14 billion. Safety remains our top priority, and a long-term safety trend is possible. Our reported safety performance has never been better. But we do know that this is a race without a finish. In June, we presented the internal investigation report of the helicopter accident in February.

Speaker Change: At the CMU, we introduced a two year share buyback program to increase predictability.

Speaker Change: The program is $10 billion to $12 billion in total with $6 billion allocated this year.

Speaker Change: In line with this.

Speaker Change: We announced a third tranche of up to one 6 billion.

Speaker Change: Starting tomorrow.

Speaker Change: For 2024, we expect to deliver our total capital distribution of a $14 billion.

Speaker Change: Safety remains our top priority and a long term safety trend is positive.

Speaker Change: Our reported safety performance has never been better.

Speaker Change: But we do know that this is a race without a finishing lines.

Speaker Change: In June we presented the internal investigation report of the helicopter accident in February.

Unknown Executive: We will use the report to further strengthen our work. We delivered around 3% production growth this quarter, in line with our expectations. On the NCS, we had strong operational performance and good regularity. Total production was up 5% from the same quarter last year, and gas production was up 30%, with strong contributions from Troll and Oseberg. The ramp-up of new fields like Bredablik and Hans also contributed. In addition, turnarounds were well executed, impacting production less than expected.

Speaker Change: We will use to report to further strengthen our work.

Speaker Change: We deliver around 3% production growth this quarter in line with our expectations on the NCS, we had strong operational performance and good regularity total production was up 5% from the same quarter last year and gas production was up 30.

Speaker Change: 3%.

Speaker Change: With strong contribution from troll annual severity the ramp up of new fields like <unk> and homes also contributed.

Speaker Change: Yes.

Speaker Change: In addition, turnarounds.

Speaker Change: Were well executed impacted impacting production less than expected. So we have reduced the overall turnaround impact for the year to 55000 barrels per day.

Unknown Executive: So we have reduced the overall turnaround impact for the year to 55,000 barrels per day. For EMP International, production was up 2.5%. The buzzard field in the UK and New Wales contributed positively, partly offset by turnarounds and lower production in Brazil. Production was down in the quarter, as expected.

Speaker Change: For E&P International production was up 2.5%.

Speaker Change: Certain fields in the U K and U S contributed positively partly offset by turnarounds and lower production in Brazil.

Speaker Change: Yes.

Speaker Change: For E&P U S.

Speaker Change: Production was down in the quarter as expected.

Unknown Executive: U.S. offshore production was impacted by the planned turnaround on Cesar Tongo. In our onshore gas production, we indicated there would be curtailment, and we saw some of that in June. For the year, we still expect containment, based on our operators' commercial decisions to create higher value. Our renewables production is significantly higher than last year, mainly driven by onshore power plants in Brazil and Poland. In the UK, offshore wind production has increased. At Doggebank A, 27 turbines have been installed.

Speaker Change: U S offshore was impacted by the planned turnaround on Caesar Tonga.

Speaker Change: Within our onshore gas production, we indicated they would be curtailments.

And we saw some of that in June.

Speaker Change: For the year, we still expect curtailments based owner operators commercial decisions to create higher value.

Speaker Change: Our renewables production is significantly higher than last year, mainly driven by onshore power plants in Brazil and Poland.

In the U K.

Speaker Change: Offshore wind production increased.

Speaker Change: At Dogger Bank, a 27 turbines have been installed.

Unknown Executive: But full commercial production is now expected during the first half of 2025, and this impacts our production outlook this year. Now, over to our financial... Liquids prices remain higher than last year, and this quarter we saw an increase in European gas prices. As expected, storage levels in Europe are healthy, but the market remains fragile, so small changes can cause large fluctuations.

Speaker Change: The full commercial production is now expecting during first half of 2025.

And this impacts our production outlook this year.

Speaker Change: Now over to our financial results.

Speaker Change: Yes.

Speaker Change: Yeah.

Speaker Change: Liquid prices remain higher than last year.

Speaker Change: This quarter, we saw an increase in European gas prices.

Speaker Change: As expected storage levels in Europe are healthy.

Speaker Change: The market remains fragile.

Speaker Change: Small changes can give large fluctuations.

Unknown Executive: Going forward, prices will depend on the weather, European demand, and competition for LNG, as well as uncertainty related to transit to Ukraine and, as always, supply side disruptions should that occur. Our EMP Norway results were driven by strong production, delivering adjusted operating income of $6.1 billion and $1.4 billion after tax. Our international EMP segments delivered $963 million in adjusted operating income and close to $700 million after tax. The Argyritz well in Argentina was dry and expensed during the quarter.

Speaker Change: Going forward prices will depend on the weather European demand and competition for LNG.

As well as uncertainty related to its transit through Ukraine.

Speaker Change: As always supply side disruptions should that happen.

Speaker Change: Our E&P, Norway results were driven by strong production delivering adjusted operating income of $6.1 billion and $1 4 billion after tax.

Speaker Change: Our.

National E&P segments delivered $963 million in adjusted operating income and close to $700 million after tax.

Speaker Change: They argue each well in Argentina was drive and Expensed in the quarter.

Unknown Executive: The Overlift in the second quarter contributed to around $250 million in adjusted operating income for EMP Norway and around $170 million for EMP International. Our MNP results were driven by European pipe gas and strong LNG trading and supported by successful power trade. These results were also impacted by turnarounds at Mongstad and high activity in low carbon solutions.

The overlap in the second quarter.

Speaker Change: Contributes to around $250 million in adjusted operating income for E&P, Norway and their own $170 million for E&P International.

Speaker Change: Our MMP results were driven by European pipe gas and strong LNG trading and supported by successful portrayed it.

Speaker Change: These results were also impacted by turnarounds at Monster and high activity in low carbon solutions.

Unknown Executive: Our renewables assets in operation contributed 41 million dollars this year. However, as we continue to build our renewable business, the adjusted operating income was negative. We will continue to be disciplined and not overpay for action. And this is key to building a profitable business. Since the second quarter last year, adjusted OPEX and SG&A are up by 11%, driven by higher production, over-lift effects, general inflation, and increased activity in renewables and low-carbon solutions. We also see an underlying upstream cost increase of around 4%, quite in line with their production growth.

Speaker Change: Our renewables assets in operation contributed $41 million this quarter.

As we continue to build our renewable business. The adjusted operating income was negative.

Speaker Change: As expected.

Speaker Change: We will continue to be disciplined.

And not overpay for axis.

Speaker Change: And this is key to building a profitable business.

Speaker Change: Since second quarter last year, adjusted Opex, and SG&A is up by 11% driven by higher production.

Speaker Change: Over lift effects general inflation and increased activity in renewables and low carbon solutions.

Speaker Change: We also see an underlying upstream cost increase of around 4%.

Speaker Change: Quite in line with the production growth.

Unknown Executive: We continue to maintain a strong focus on capital discipline and cost control. Then there is our cash flow. This quarter, our cash flow from operations was 1.9 billion dollars after tax. We paid the final two NCS tax installments based on 2023 results, totaling $7 billion in the quarter.

Speaker Change: We continue to maintain a strong focus on capital discipline and cost control.

Speaker Change: Then to our cash flow.

Speaker Change: This quarter, our cash flow from operations was $1.9 billion after tax.

Speaker Change: We paid the final two NCS tax installments based on 2023 results totaling $7 billion in the quarter.

Unknown Executive: For the second half of this year, we will pay three NCS tax installments, one in the third quarter and the remaining two in the fourth quarter. Each installment will be NOK 31.3 billion, which is lower than in the first half of the year. We expect cash flow from operations for this year of around $17.5 billion after tax, as we said at the CMU. While gas prices currently are below our CMU price assumptions, oil prices remain somewhat higher, and the impact from the lower gas prices is softened by the Norwegian tax. Next year, we expect to be back at around 20 billion dollars in cash flow from operations after tax.

Speaker Change: For the second half this year, we will pay T NCS tax installments, one in the third quarter and the remaining two in the fourth quarter.

Each installment will be 31.3 billion Norwegian kroner.

Speaker Change: Which is lower than in the first half of the year.

Speaker Change: We expect cash flow from operations for this year of around 17, and a half billion dollars after tax as we said at the CMU.

While gas prices currently are below our CMU price assumptions oil prices remained somewhat higher and the impact from the lower gas prices is softened by then the wheels in Texas.

Speaker Change: Next year, we expect to be back at around $20 billion in cash flow.

Speaker Change: From operations after tax.

Unknown Executive: In the quarter, we paid a total capital distribution of $2.5 billion. Organic OPEX was 2.9 billion dollars and 5.7 billion dollars yet. After taxes, capital distribution, and investments, our net cash flow came in negative, as expected, at 4.2 billion dollars for the quarter.

Speaker Change: In the quarter, we paid total capital distribution of two and a half billion dollars.

Organic Capex was $2 9 billion and $5.7 billion year to date.

Speaker Change: After Texas capital distribution and investments our net cash flow came in negative as expected at $4.2 billion for the quarter.

Unknown Executive: We have a solid financial position with 32 billion dollars in cash and cash equivalents, and on that, the Capital Employee Ratio increased to negative 3.4% this quarter. It is important to note that following our AGM in May, the state's share of buybacks from last year was treated as a financial debt, impacting the net death ratio for the second quarter. However, the payment of 4 billion dollars was made in July, which will impact the cash flow in the third quarter.

Speaker Change: We have a solid financial position, we have started $2 billion in cash and cash equivalents and our net debt.

Speaker Change: To capital employed ratio increased to negative.

Speaker Change: 3.4% this quarter.

Speaker Change: It is important to note that following our AGM in may.

Speaker Change: The state the state share of buybacks from last year was treated as a financial debt impacting the net debt ratio for the second quarter.

Speaker Change: However, the payment of $4 billion was done in July.

Speaker Change: Which will impact the cash flow in the third quarter.

Unknown Executive: We are planning for a negative net cash flow for the year, in line with what we indicated at the CMU, and we expect a positive net debt ratio by the end of the year. Our guidance for COPEX and oil and gas production remains firm. We have updated the renewables production guidance; we now expect it to grow by around 70% this year, mainly reflecting the progress on Dogger Bank A. Now I hand it back to you, Brd, and I do look forward to your questions.

Speaker Change: We are planning for a negative net cash flow for the year in line with what we indicated at the sea view and we expect a positive net debt ratio by the end of the year.

Speaker Change: Finally.

Speaker Change: Our guidance for Capex in oil and gas production remains firm.

Speaker Change: We have updated our renewables production guidance, we now expect it to grow by around 70% this year.

Speaker Change: Mainly reflecting the progress on Dogger bank.

Speaker Change: Now I hand, it back to your board and I do look forward to your questions. So thank you.

Unknown Executive: So thank you. Thank you, Torgrim. We are then ready to start the Q&A, and I see that we have a good list of questions already, so that is good. Just a reminder that if you want to add your name to the list, you can press star 1 on your phone.

Thank you Graham.

All of them are ready to start the Q&A and I see that we have a good list of questions already so that is good first a reminder, that if you want to add your name to the list you can press star one.

Speaker Change: On your phone, we will try to keep it within the hour since we started.

Martijn Rats: We will try to keep it within the hour since we started. So the first question is from Martijn Rats from Morgan Stanley, so Martijn, please go ahead. I'm wondering whether the over-lift in this quarter will be mirrored in an under-lift maybe next quarter or the quarter thereafter, and also if it's just a volume effect or if there's also a sort of a price-slash-revenue element to it.

Speaker Change: So the first question.

Martijn Rats: Martijn rats from Morgan Stanley. So Martin Please go ahead.

Martijn Rats: I'm wondering whether the overlapped and this quarter will be nearer 10, an under lift maybe next quarter or the quarter thereafter.

Speaker Change: And also if Dan.

Dan: Just a volume effect or if there's also a sort of a price less revenue.

Speaker Change: Can you sort of talk a little bit.

Unknown Executive: Can you sort of talk a little bit about that? And then secondly, last quarter you mentioned that European industrial gas demand was starting to show a bit of a sign of life. I think you mentioned something like up 5% on a weather-adjusted basis. But sort of listening to your comments now and also other comments this morning, maybe that has reversed.

Speaker Change: About that and then secondly.

Speaker Change: Last quarter.

Speaker Change: You mentioned that European industrial gas demand, we're starting to show.

Speaker Change: A bit of a sign of life I think you mentioned something like up 5% on a weather adjusted basis.

Speaker Change: But just listening to your comments now.

Speaker Change: So other common search.

Speaker Change:

Speaker Change: Maybe that has reversed.

Unknown Executive: I was wondering if you could give us an update on that. All right. No, thank you very much, Martin.

Speaker Change: Wondering if you could give us an update on that.

Speaker Change: Alright, Thank you very much Martin so yeah. So this this quarter, we had an overlap.

Speaker Change: Aspirational both within.

Speaker Change: On the NCS.

Unknown Executive: Assets, and also internationally as such. So, just want to remind you that on the NCS, we had a similar underlift in the last quarter as we have an overlift in the current quarter. So there's no sort of carry forward or, you know, effect of that.

Assets and also internationally is search.

Speaker Change: So.

Speaker Change: Just want to remind you that the that on the NCS, we had a similar under lift in the last quarter as we have an overlap in the current quarter. So theres no sort of carryforward or FX off that it is sort of really fluctuate from quarter to quarter.

Unknown Executive: It is sort of will fluctuate from quarter to quarter. And the same goes for international EMP. That sort of fluctuates from overlift to underlift, you know, across quarters.

Speaker Change: And the same goes for the four international E&P.

Speaker Change: That sort of that that fluctuates from overleaf to under lift.

Unknown Executive: So there is no sort of thing that is carried forward related to this overlift more than sort of a natural rhythm of production. In Norway, for example, the overlift, you know, came across a large set of assets. And internationally, the overlift was related to Angola and Azerbaijan, mainly. On your question on industrial gas demand in Europe, yes, we see that continuing. We see, you know, approximately a 10% growth or increase in sort of industrial gas demand in Europe. And, of course, it is very glad to see that.

Speaker Change: Cross quarters. So so theres no sort of things that is carryforward related release over less more than sort of a natural.

Speaker Change: Read them off of production in Norway, there the overlapped.

Speaker Change: Came across a large set of assets.

Speaker Change: And internationally there they're overly at Wassa was related to.

Speaker Change: On Golar and Azerbaijan mainland.

Speaker Change: On your question on industrial gas demand in Europe, yes.

Speaker Change: We see that continuous.

Speaker Change: It is we see you know approximately 10% growth or increase in sort of industrial gas demand in Europe and of course. It is it is.

Unknown Executive: And the total industrial gas demand in that market, we see that to be around 100 BCM on an annual basis. So it's sort of clearly an addition to the demand. But when that is said, you know, there are other drivers that are, I would say, more important in sort of the price setting in Europe.

Speaker Change: It's very glad to see that and the total in industrial gas demand in that market. We we see that to be around 100 bcm on that annual an annual basis, so it sort of.

Speaker Change: Is it sort of clearly in addition to the demand and when that is said you know there are all the drivers that are I would say argue more important in sort of the price setting in Europe and that is particularly the demand from Asia.

Unknown Executive: And that is particularly the demand from Asia. So, clearly, that is something to watch very, very closely. And China, we see this year, has had an 8 percent growth in demand. So that is important to follow, and that brings me into the concept of weather because weather clearly means a lot for both storage levels and demand and so on. And this summer, we see that it is a warm summer in Asia and China, and that actually increases demand for gas to power and air conditioning, actually impacting demand for energy. So weather is actually playing a role also in the summer.

Speaker Change: So clearly that is something to watch very very closely.

Speaker Change: In China, we see this year has an 8% growth in demand.

Speaker Change: So that is that is important to follow the follow on and then that brings me into the concept of weather because the weather clearly means a lot for both storage levels and the bomb.

Speaker Change: What have you and this summer we see that it is a warm summer in in Asia, and China and that actually increases.

Demand for gas to power and you know.

Speaker Change: Yeah.

Speaker Change: Air conditioning actually impacting demand of LNG, so whether it's actually.

Speaker Change: Rain and playing a role also in in the summer and then I would like to to you know.

Unknown Executive: Then I would like to draw your attention also to Ukraine and the transit of Russian gas to Ukraine, currently around Turkey in DCM, is coming in that direction. And some in the Ukrainian government have said that they want to end that transit by year-end. So, you know, we'll see, but also an area to watch when we sort of try to get our hands around the sort of demand-supply balances in the European gas market. Wonderful, thank you very much.

Speaker Change: Draw your attention also to boards.

Speaker Change: Ukraine, and the transit of Russian gas to Ukraine, currently around Turkey, and DCM is coming in that direction.

Speaker Change: And sort of Ukrainian government has said that.

Speaker Change: They want to and that transit by year end. So you know, we'll see but it's also an area to watch when we sort of try to get our hands around sort of demand supply balances in the European gas markets.

Speaker Change: Wonderful thank you very much thank.

Teodor Nilsen: Thank you, Martin. The next question is from Teodor Sveen Nilsen in Sparbanken Markets. Teodor, please go ahead.

Martin: Thank you Martin.

Speaker Change: The next.

Question, Mr. Taylor Swain Nielsen in the spot of banking markets.

Speaker Change: Please go ahead.

Speaker Change: Okay.

Unknown Executive: Good morning, and thanks for taking my questions. First, on your production guidance for oil and gas, Torgrim, at the first quarter presentation, I think you made some comments around that we should expect lower production. I've definitely seen that during the second quarter.

Speaker Change: Good morning, and thanks for taking my questions.

Speaker Change: First of all on your production guidance for oil and gas.

Speaker Change: The first quarter presentation I. Thank you.

Speaker Change: The comments around that we should expect lower production and definitely in that during second Walker.

Speaker Change: So how should we think around the tall oil production guidance for the year.

Speaker Change: Year over year do you still see some downside to that.

Unknown Executive: So how do you think around the total production guidance for the year being flat year over year? Do you still see some downside risk to that? So that's the first question. The second question is on renewable energy.

Speaker Change: So that's the first question second question Nigel.

Speaker Change: Renewable and I know that you recently made some reorganization in your renewal.

Unknown Executive: I know that you recently made some reorganization in your renewable business and that you may be looking to reduce the project portfolio somewhat. I just wonder how that will impact your long-term target of 35 to 60 terawatt hours of production by 2030.

Speaker Change: Smith.

Speaker Change: And they are made by looking to reduce the project portfolio somewhat but I just wonder.

Speaker Change: How that.

In at your long term target so.

Speaker Change: <unk> yeah.

Speaker Change: Terawatt hours collection by like one.

Thanks theater: It looks a little bit ambitious now so any thoughts around that and the reorganization would be useful. Thanks. Okay. Thanks. Thanks theater, so first on production guidance.

Unknown Executive: It looks a little bit ambitious now, so any thoughts on production guidance? You know, what we have seen this quarter is, you know, a strong operation and performance in the way we produce, and also that maintenance has gone, you know, very effectively and smoothly. So that is one element.

Speaker Change: You know what we have seen this quarter is a you know a strong operational performance in the way we produce and also that maintenance has gone very effectively and smoothly.

Unknown Executive: The other one is that, you know, we have finalized the closed equity transaction, which actually adds a little bit of volume to the mix. And then, you know, the reason why we said about a little bit of..., downside in the last quarter that was linked to the curtailment of US gas production, which we expected. We still expect some of that, but we do see a robustness in our production. So we say, you know, we actually stand firm on the guidance that we have.

Thanks theater: And so that is one element into it the other wellness that are you know we have finalized the close the <unk> transaction.

<unk> adds a little bit of volume into the mix and then you know the reason why we said you know about a little bit of downside. The last quarter that was linked to curtailment of U S gas production, which we expected we still expect some of that but we do see a robustness in our production.

Thanks theater: So we say you know, we actually stand firm on the guidance.

Thanks theater: We had I think when we talk about production I just want to to make you aware of sort of the turnaround program. This summer because in the second quarter.

Unknown Executive: I think when we talk about production, I just want to make you aware of sort of the turnaround program this summer, because in the second quarter, we had a production turnaround of around 55 barrels per day. In the third quarter, it will be significantly higher.

Thanks theater: We have had a turn production turnaround of around 55 barrels per day in the third quarter. It will be significantly higher it will be 125000 barrels per day as such so this is a little bit.

Unknown Executive: It will be 125,000 barrels per day as such. So this is a little bit contrary to the way it was last year, where it was the second quarter that had the highest turnaround. So just for your modeling, so you're aware that there is a significant turnaround program happening in this quarter. But, you know, taking all of that into account, production guidance remains firm. Then on renewable energy and targets and ambitions and all of that.

Thanks theater: Contrary to the way it was last year, we're sort of it was the second quarter that had the highest turnaround. So just for your for your modeling. So you are aware of that there is significant.

Thanks theater: Turnaround program happening in this quarter, but you know taking all of that into account.

Thanks theater: Production guidance remains firm.

Thanks theater: Then on renewables and the.

And the targets and ambitions and all of that.

Thanks theater:

Unknown Executive: We will build a renewables and low-carbon business on top of our oil and gas business, which will continue to invest $10 billion a year, as you are very well aware. It is very important for us that the investments we are doing are creating value, that they are robust, and that they are profitable. Capital discipline needs to be the headline on the way we conduct and build our business.

Thanks theater: You know we are.

Thanks theater: You know we will build a.

Thanks theater: Our renewables and low carbon business.

Thanks theater: Top over oil and gas business, which will continue to two two to invest $10 billion a year as you are well aware of.

Thanks theater: It is very important for us that the investments we are doing are creating value that they are robust and that they are profitable so capital discipline.

Thanks theater: Needs to be the headline on sort of the way we conduct.

Thanks theater: And and build and build our business.

Unknown Executive: So, and Anders has said this for a long time, that if he has to choose, or we have to choose between delivering value-creating projects or volume targets, it will be value-creating projects. So, that is very sure.

Thanks theater: So.

Thanks theater: And on this has had this for a long time that sort of if he has to choose so we have to choose between delivering.

Thanks theater: Between value, creating projects or volume target it will be value, creating projects that is there that is very sure more specifically.

Unknown Executive: More specifically, you know, the projects we have ongoing are moving forward, and they will contribute clearly to growing renewable energy production, and we are moving in line with, sort of, the ambitions that we have set. But clearly, we will focus very much on reducing costs where we can and focus our efforts and investments on where we see that value creation is happening. So, yeah. So, thanks. Okay, thank you. Thank you, Teodor. The next question is from Biraj Borkhataria from RBC. Biraj, please, the line is open. Hi everyone, thanks for taking my questions. I've got two.

Thanks theater: The projects, we have ongoing are moving forward.

Thanks theater: And and they will contribute clearly to and growing the renewables production and we are moving in line with sort of towards the ambitions that we have set.

Thanks theater: But clearly we will focus very much on reducing costs, where we can and focus or or or efforts.

Thanks theater: And investments into where we see and that the value creation is happening. So so so yeah.

Speaker Change: Yeah. So thanks.

Speaker Change: Okay. Thank you.

Speaker Change: Tailored.

Speaker Change: Next question is from Bureau, Szczerba Cutaia from RBC brush, Chris Your line is open.

Speaker Change: Yes.

Biraj Borkhataria: The first one's on the Rosebank sale you've talked about, selling down your interest in the past, but then suspending the sale due to the changing government. I was wondering if you had so far, you know, any clarity on fiscal changes, particularly around whether there could be any retroactive changes in the UK oil and gas taxes, because I suppose that would have quite a significant impact on the economics, both for you and also for potential buyers. So any color around your confidence in the fiscal regime there would be helpful. And then the second question is just on Empire Wind.

Hi, everyone. Thanks for taking my questions.

Speaker Change: Okay.

Chris: The first one is on the various bank sale, you've talked about selling down interest.

Speaker Change: In the past, but then suspended sales due to the change in government I was wondering if you had so far any clarity on.

Fiscal changes, particularly around whether there could be any retroactive changes in the U K our oil.

Speaker Change: Oil and gas taxes.

Speaker Change: Suppose that would have quite a significant.

Speaker Change: A significant impact on the economics, both for you and also for the potential buyers. So any color around your confidence in the fiscal regime there would be helpful.

Unknown Executive: Has there been any update on the project financing progress there? Are you still expecting that by year end? Thank you. Okay, thank you. Thank you, Biraj. On Rosebank.

Speaker Change: And then the second question is just on Empire wind.

Speaker Change: Has there been any update on the project financing progress there are you still expecting that but by year end. Thank you.

Unknown Executive: Yeah, you know, we acquired 40% of Rosebank, together with other assets in the UK from Suncor last year, so currently, we hold 80% in that asset. So that is higher than we sort of like to be in assets like this.

Speaker Change: Okay. Thank you and thank you for your rush on.

Speaker Change: Ross Bank, Yeah, you know, we acquired you know 40% of Roes Bank together with older assets in the U K from Suncor last year. So currently we hold 80% in that asset. So that is this is higher than we sort of like to be in assets like this and we said earlier.

Unknown Executive: And we said earlier this year that we plan to farm down part of that. So that's clearly a dialogue that we have with other companies related to that asset. On your specific question about the change of government in the UK and tax uncertainty, we are a very significant energy investor in the US and have a close dialogue at all levels with the government.

Speaker Change: This year that we plan to farm down part or part of that so that's clearly dialogues that we have with where we are with.

Speaker Change: The company is related to that asset.

Speaker Change: On your specific question on sort of change of government in the UK and tax uncertainty.

Speaker Change: We are.

Speaker Change: Very significant energy investor in the U S and have a close dialogue on all levels with the government and they are very much aware of.

Unknown Executive: And they are very much aware of the needs of our industry. In the manifesto they put forward after the election, they have some statements that we clearly recognize. One is that they want to create an attractive investment climate for industry, and they also really would like to focus on growth and energy transition. This means that, and our expectation is that, you know, any changes to the tax system need to be balanced and business friendly. And in particular, that means capital allowances towards tax as such.

Speaker Change: Of all.

Speaker Change: The needs.

Speaker Change: Four four or industry.

Speaker Change: In the manifesto.

Speaker Change: Forward.

Speaker Change: After the election.

Speaker Change: They have some statements that sort of we clearly recognize wellness that they want to create an attractive investment climate for industry and also they really would like to focus on growth and and the energy transition.

Speaker Change: And that means that in and our expectation is that you know.

Speaker Change: Any.

Changes to the tax system needs to be balanced and business friendly.

Speaker Change: And in particular that means capital allowances towards our tax assets and sort of what's the read out of the manifesto, if they're sort of they will they will work on changes that safeguard.

Unknown Executive: And sort of what we read out of the manifesto is that they will work on changes that safeguard a business-friendly environment as such. This is very important, and they are very much aware of that. So Bedros Bank is a great asset with a low break-even.

Speaker Change: Business friendly environment as such this is very important and they are very much.

Speaker Change: Aware of that.

Speaker Change: So, but youre think ASM great assets.

Speaker Change: Low breakeven we plan to start it up in 'twenty to 'twenty, seven and it's going to be an important part of our cash flow in the towards the end of this decade.

Unknown Executive: We plan to start it up in 2027 and it's going to be an important part of our cash flow towards the end of this. Let's see, that was the first one, Biraj, there was a long answer on that one, but then we had the second one, and that was Empire Wind, yeah, so Empire Wind, so we said, you know, at the Capital Markets Day that this year is the year of de-risking the Empire Wind project, so renegotiating the price contract with the State of New York, getting in place sort of project financing and levering and then thirdly farming it down.

Speaker Change: Let's see that was the first one garage the wrong answer on that one but then we had the second woman that was Empire wind yet so Empire wind.

Speaker Change: So we said you know what the capital markets day that that this year is the year of de risking the Empire wind project. So.

Speaker Change: Renegotiating the price contract with the state of New York.

Speaker Change: Getting in place sort of.

Speaker Change: Project financing and levering and then thirdly farming is down so a little bit of an update on these topics for you one is that.

Unknown Executive: So a little bit of an update on these topics for you. One is that we got sort of the contract, you know; the price increased from 118 to 155 dollars per megawatt hour. The project finance is underway, and so the bank group is coming together.

We got sort of the contract.

And on the price increase from 118 $255 per megawatt hour.

The project finance.

Unknown Executive: And we plan to have a sort of a financial close, um, towards the end of this year, and that will be sort of the next sort of [inaudible] consolidated in our accounts. And that is also reflected in the CAPEX guidance that we have put forward. And if I remember correctly, we said it had an impact on isolation and in CAPEX of $1.2 billion this year and $1.5 billion next year. So, you know, if we successfully are able to farm down that asset and have it off the balance sheet, reported CAPEX will naturally be lower as such.

Speaker Change: Is underway.

Speaker Change: So the bank group is coming together.

Speaker Change: And we plan to.

Speaker Change: For a sort of a financial close.

Speaker Change: Towards the end of this year and that will be sort of the next sort of.

Speaker Change: Officials.

Speaker Change: Yes.

Speaker Change: You know.

Speaker Change: <unk> stone for this project and then thirdly farming down the asset will be important for us and currently.

Speaker Change: We hold at 100% at hundreds it is 100%.

Consolidated in our accounts and that is also reflected in sort of the capex guidance that we have put forward and if I remember right. You said it had in isolation and in copper is the impact of $1 $2 billion. This year and 1.5 next year. So.

Speaker Change: If we successfully are able to farm the arm that essence.

Speaker Change: And you don't have it off balance sheet reported capex.

Speaker Change: Naturally.

Speaker Change: The lower research so it is progressing according to plan.

Unknown Executive: So it is progressing according to plan. Thank you and thank you, Biraj. The next question is Lydia Rainfort from Barclays. Lydia, please go ahead with your question: spend and evolution. Obviously, if you're talking about the idea that we need to be disciplined and we've got to be value creating, I mean, at some point, you have to go, actually, the low carbon spend. It's probably too much that we put in there that we just can't spend all that money.

Speaker Change: Thank you and thank you bid asks the next question is a lithia rainfall from from Barclays.

Speaker Change: Please go ahead with your question.

Thank you and good morning, guys I have two questions.

Speaker Change: And on the low carb and then emulation subsea.

Speaker Change: If you're talking about.

Speaker Change: The disciplined than Mexico.

Speaker Change: And at some point you have to go back to Steve Scala Cowen <unk> co.

Speaker Change: So we put another car.

Unknown Executive: And then secondly, on the cash return side, can I just ask how you're thinking about this? Because you've got $14 billion this year that goes out, and obviously, that's quite a big part of your market cap. It's a little bit less next year.

Speaker Change: And then secondly on the cash return side can I just ask how you think about this question you've got $40 million.

Unknown Executive: And then it's lower in kind for 2026. I mean, when we think about 2026 and the guidance you've already given, and I know this is a lovely way out, but are we thinking about that as a minimum level? Or am I just trying to get a sense of actually what the underlying cash returns to shareholders are at this point? It was a little bit hard to hear you on your first question.

Speaker Change: Michelle go now and your.

Our market cap.

Speaker Change: Little bit less next year and then it's.

Speaker Change: And kind of 2026, when we think about trying to stick to the guidance you've already given.

Speaker Change: So let me lay out but are you thinking about that as a minimum level or I'm just trying to.

Speaker Change: As you will see underlying cash return to shareholders at that point.

Unknown Executive: I know it was related to the low carbon solution and capital discipline, but maybe you can repeat that, at some point, you talked about it needing to be value-creating earlier in the call. At what point do you sort of go, actually, we just can't spend all this money reallocated to low carbon because the projects would be coming in more expensive, or there just aren't those value creation opportunities? So, effectively, do you struggle to spend the low carbon budget that you've got?

Lydia: Okay. Thanks, Thanks Lydia.

Speaker Change: It was a little bit hard to hear you on your first question I know it was related to low carbon solution am capital discipline, but maybe you can maybe you can repeat that.

Lydia: Thanks.

Speaker Change: So I was just thinking at some point and you've talked about it needs to be value, creating LP Nicole.

Speaker Change: What point.

Speaker Change: We just cant spend all this money will be allocated to low carbon because the projects do you think of again more expensive or just a nice value creation opportunity. So thank you struggle to span the low carbon budget. Thank you Scott.

Unknown Executive: Okay, no, greatly. So, yeah, I mean, currently, the project that is most mature is the Northern Light project. That is, you know, well supported by governments and sort of has a return that is, you know, absolutely, or is appropriate. Currently, we're working on in the UK on carbon capture and storage projects, which are, you know, mature. It is the net zero T side and the NEP, the endurance storage project as well.

Scott: Okay great.

Speaker Change: So yeah I mean.

Currently.

Speaker Change: The project is mature the most is the northern lights project that is well supported by government and sort of has a return that is absolutely.

Speaker Change: As is appropriate.

Speaker Change: Currently were working on in the U K on carbon capture and storage projects.

Speaker Change: Which are you know mature it is.

Speaker Change: Net zero T side, and and and the NAFTA endurance storage project as well so those are moving forward.

Unknown Executive: So those are moving forward, and they are, you know, providing a return that is sort of appropriate as such. On sort of beyond that, clearly quite a bit of work ongoing on the CCS storage side and also CO2, gathering, and transportation. And, you know, we are in discussions building a CO2 pipeline from the continent to the Norwegian continental shelf. We see that it will still take some government support to lift all of this, but we do believe that it's going to build a meaningful and constructive return business in a way.

Speaker Change: And they are providing a return that is this is sort of.

Speaker Change:

Speaker Change: Appropriate search.

Speaker Change: On sort of beyond that.

Speaker Change: Clearly quite a bit of work ongoing on on Ccs storage side, and also seal to gathering and transportation and you know we are in discussion and building a C O two pipeline from the continent to the Norwegian Continental shelf, we see that.

Speaker Change:

Speaker Change: It will still take some government to support to lift all of this but we do believe that is going to build a meaningful and constructive.

Unknown Executive: I would say within the low carbon solutions, the hydrogen type of universe is, you know, not moving forward as quickly, and there is, you know, still work to be done before we see a clear road map to returns in the longer term there.

Speaker Change: Hum return business in a way I would say within the low carbon solutions. The hydrogen type of universe is not moving forward as quickly and sort of there are.

Speaker Change: Still work to be done before we see.

Speaker Change: Clear roadmap to tutor to returns in the longer term there.

Unknown Executive: On cash returns or capital distribution, 14 billion dollars this year, that's right, that should translate into 18 or 19 percent directly yield. We have said that next year we have sort of the cash return of 35 cents per share is growing by 2 cents per year. And then 1.2 in sort of a standard share buyback. And then on top of that, an additional share buyback. So, so in total, between four and $6 billion next year. And then your question was, so what about 2026? And you know, this is not the time and place to give you specifics on that, Lydia.

Speaker Change: One.

Speaker Change: The cash returns or capital distribution $14 billion. This year, that's right that should translate into 80% or 90% directly yield we have said that next year.

Speaker Change: We have sort of the cash return 35.

Speaker Change: Cent per share isn't growing by 2% per year.

Speaker Change: And then 1.2 in sort of a stand that share buyback and then on top of that.

Speaker Change: Additional share buybacks or so so in total between four and $6 billion next year and then your question was so what about 2026 and you know this is not the time and place to to give you specifics on that lithia, but what I can say that you know we have the.

Unknown Executive: But I can say that, you know, we have the cash, the ordinary cash dividend; we have $1.2 billion in a sort of standard share buyback. And then, you know, we have said that we intend to use capital distribution to bring our gearing and balance sheet back to sort of, you know, a better balance as such, but we will come back on this on Capital Markets Day in February, and clearly, capital distribution to have that competitive is a key priority for us as leaders. Thank you, Lydia.

Speaker Change: The cash.

Speaker Change: The ordinary cash dividend, we have $1 $2 billion in ish in sort of standard share buyback and then you know we have said that we intend to use capital distributions to <unk> too.

Speaker Change: Bring.

Speaker Change: You know, our gearing and balance sheet back to sort of.

Speaker Change: And in better balance assets, so, but we will come back on this on the capital markets day in.

Speaker Change: In February.

Speaker Change: Clearly capital distributions to have that competitiveness is a key priority for us as leaders.

Speaker Change: Thank you. Thank you Lydia and the next question is are you on Sharon's home from Bernstein. Your line is open.

Johan Charenton: The next question is Johan Charenton from Bernstein. Johan, please, the line is open. Yes, good afternoon, Torgrim.

Unknown Executive: I would like to ask about an update on M&A activities overall. I have three questions related to this. First, can you please tell us how many assets are classified as held for sale as of June? The second question is in relation to Rosebank.

Sharon: Yes, good afternoon program.

Sharon Holm: We like to ask about an update on M&A activities overall.

Speaker Change: I have three questions related to this.

Sharon Holm: First can you please tell us or many assets are classified as held for sale as of June. The second question is it relation to roads Bank are you able to say what is the impact of frozen bank.

Unknown Executive: Are you able to say what the impact of Rosebank on the Group's CAPEX this year? If I remember correctly, this year's plan was reflected in the full year CAPEX guidance earlier this year. And then the third question is about, basically, any color you could provide on the timing for closing deals that have been announced but that have yet to complete, and what is the overall impact on cash flow, please? The final one was closing on Azerbaijan.

Speaker Change: On the group Capex this year, if I remember correctly. This years plan to farm down was reflected in the full year Capex guidance earlier. This year and then the third question is about.

Speaker Change: Basically any color you could provide on the timing for closing deals that have been announced but that have yet to complete and what is the overall impact on cash flow. Please.

Yes.

Speaker Change: I was wondering are almost closing on also withdrawn language Oh, yeah, Okay got it right. Okay. Thanks, Thanks Jan.

Unknown Executive: Oh, yeah, OK, closing, right. OK, thanks. Thanks, Johan.

Unknown Executive: Yeah, so, first, it was a very specific question on health for sale and M&A. So, currently, it is the Azerbaijan asset that is classified as health for sale, a value-neutral swap with Peturo this quarter in various licenses. And the one leg of that swap, which we are divesting, is classified as held for sale for the time being on the Rose Bank.

Speaker Change: Yeah. So first it was a very specific question on the.

Speaker Change: On held for sale and M&A. So currently.

Speaker Change: It is the.

bejon: Also bejon asset that is.

bejon: Classified as held for sale. In addition to that you know we did a swap.

bejon: So our value neutral swap with Toro. This quarter, you know in interior mirrors licenses and one leg of that swap, which we are divesting is classified as held for sale for the time being.

Speaker Change: On the on the Roes Bank.

Unknown Executive: So yes, we said that at the beginning of the year that we were planning to move to the West, Rosebank, and part of... Sparta. But we also said, you know, this quarter that our CAPEX $13 billion remains firm. And, you know, I just want to say that that sort of guiding principle, we see that as a robust framework for progress in planned divestment as such. So we are comfortable delivering on what we have promised.

Speaker Change: So yes.

Speaker Change: Yes, we said that in them in the early of the year that sort of we were planning to do.

Speaker Change: Two.

Speaker Change: To divest <unk> bank and <unk>.

Speaker Change: And the part of the.

Speaker Change: Part of Sparta.

Speaker Change: And.

Speaker Change: But you'll be also said this quarter that or Capex $13 billion remains firm and you know I just want to say that that's sort of that guiding.

You know, where we see that as a robust for you know.

Speaker Change: Progress in of planned divestments as such so so.

So we are comfortable delivering on what we have promised.

Unknown Executive: And then the last question was the closing of Azerbaijan, right? Yes, so you know, we have both Nigeria and Azerbaijan as assets we have actually signed an agreement on and are moving towards closing. You know, I won't promise anything.

Speaker Change: And then the last question was closing of Azerbaijan right. Yes. So you know we have both Nigeria and the unanswerable John.

Speaker Change: Yes.

Speaker Change: We have actually signed an agreement on and moving towards closing.

Speaker Change: I wont promise.

Promise anything and they are progressing and as you know we have them.

Unknown Executive: They are progressing. And as you know, we have... There are still some outstanding topics in sort of discussions with the government, but it is progressing and is getting closer to the closing of those transactions. Thank you, thank you Teodor.

Speaker Change: And there are still some outstanding topics in sort of.

Speaker Change: Discussions with government, but it is.

Speaker Change: It is progressing and is getting closer to closing of those transactions.

Unknown Executive: Thank you, Johan. The next one is Peter Love from Redburn, so Peter, please go ahead. Has that led to the delays that have resulted in you kind of reducing the power output guidance this year? And the second was, can we get an update on some of your upcoming major project startup in oil and gas? For example, Casper, is that still on track for first oil this year? And anything on Bacalao and its startup next year? Thanks.

Speaker Change: Thank you thank you Kevin.

Peter James Low: The next one as Sir Peter Love them Redburn, Peter Please go ahead.

Thank you the first one we just don't talk about.

Peter James Low: Can you talk a bit about what the issues have been that have led to the delays.

Speaker Change: Okay did you kind of are choosing.

Speaker Change: I'll put guidance this year.

Speaker Change: And then the second was just could we get an update on some of your upcoming major project start ups in oil gas fixed.

Speaker Change: For example, cash.

Speaker Change: Is that still on track for first oil this year.

Speaker Change: <unk>.

Speaker Change: Start up next year. Thanks.

Peter James Low: Thanks, Peter. So, on Dogger Bank, you know, the operator of that development is SSE. So, they should be the one that actually provides sort of an in-depth explanation of this.

Speaker Change: Thanks, Thanks, Peter So on Dogger Bank, you know the operator of the development is S. E. S hole. So they should be the one that actually provide sort of an in depth.

Explanation to this.

Unknown Executive: Currently, you know, there are 27 turbines fully or partly installed, and there are seven turbines in production for the time being. It is somewhat slower than planned, and the reason is that it has actually been a very windy summer.

Speaker Change: Currently.

Speaker Change: There are 27 turbines.

Speaker Change: You know and fully or partly installed in their office have been turbines in production for the time being it is so much lower than than planned.

Speaker Change: The reason one of the reasons behind it is actually it has been a very when their summer.

Speaker Change: So I mean.

Speaker Change: Oh it is.

Speaker Change: It's a good location.

Speaker Change: But it's it's.

Speaker Change: It's that as part of the reason it is is progressing.

Speaker Change: And we expect it to be sort of fully in production in the second half of this year.

Unknown Executive: So I mean, it's, you know, proving it's a good location. But it's, it's, that is part of the reason. It is, it is progressing. And we expect it to be sort of fully in production in the second half of this year on major projects. So Johan Kastberg First, which currently, you know, sits in a fjord. It has sort of left the yard on the west coast of Norway and sits in a fjord doing commissioning work, planning to sail away to the Barents Sea in August, and OnTrack to sort of..., to our production. You also mentioned Bacalao.

Johann: On major projects, so Johann cost broke first.

Speaker Change:

Speaker Change: I wish.

Speaker Change: Currently.

And you know sits in a pure.

It is sort of left the yard on the west coast of Norway and sits in sort of the short hand during commissioning work.

Speaker Change: Planning to sail away through the Barents Sea in in August.

Speaker Change: And and are on track to sort of.

Speaker Change: Coming to production by.

Speaker Change: By the end of this year or in fourth quarter as search.

Speaker Change: There still is there still significant work, but you know it is.

It is progressing and progressing well.

You know it is.

It is.

Speaker Change: And the expected production in 2025 for is around 80000 barrels per day. So it's a significant contributor to our production.

Speaker Change: You also mentioned the Buffalo.

Speaker Change: Also progressing.

Unknown Executive: Well, you know, the vessel currently sits in Singapore in the yard. And sort of subsidy work in Brazil is ongoing. We expect first oil in 2025 as such, so it is also progressing. And then, you know, we have spoken about Rosebank as another sort of large development. And then there are two more a little bit longer out in time, Raya in Brazil.

Speaker Change: Well.

Speaker Change: The vessel.

Speaker Change: <unk> sits in Singapore in the yard.

Speaker Change: And and and.

And sort of subs.

Speaker Change: Subsea work in Brazil is is ongoing.

Speaker Change: We expect first oil.

Speaker Change: In the in 2025 a search.

Speaker Change: So so it is it is also progressing and then you know we have spoken about Roes bank. Another sort of large development and then there are two more a little bit longer oftentime ARIA in Brazil.

Speaker Change: In planning coming on stream in 2008, and also Sparta in Gulf of Mexico. In 28. So we're actually you know five very large greenfield developments.

Speaker Change: Moving forward and they are moving forward according to plan.

Speaker Change: Yeah.

Speaker Change: Thank you. Thank you.

Peter: Peter The next Thomas Kim <unk> from HSBC Kim. Please go ahead.

Unknown Executive: [inaudible] Thank you. Hi Torgrim, thanks for taking my questions. I've got two, please.

Thomas Kim: Hi, Thanks for taking my questions I've got two please first one is I was wondering if there has been any progress on this thing and on baked in or.

Unknown Executive: The first one is, I was wondering if there has been any progress on visiting and on Baid-in-Or. Both of these were previously put on hold, but there seems to have been some movement on engineering procurement lately. And maybe just some general comments you can offer on the cost and contracting environment in the offshore. And secondly, I see that you've acquired a small lithium project in the US. It's a very small amount, but I just wondered how serious you are about lithium.

Speaker Change: These were previously put on hold but there seems to have been some movements on engineering procurement lately and maybe just some general comments you can offer on the contracting environment in the onshore.

Speaker Change #100: And secondly, I see that you've acquired a small lithium project in the U S. It's a very small amount, but I just wondered how serious you are about lithium.

Unknown Executive: One of your US peers seems to be quite serious about it, so any comments you can offer there would be helpful. Thank you. 2026.

Speaker Change #102: The U S here seems to be quite serious about it.

Speaker Change #102: Carlos you can offer there would be helpful. Thank you.

Carlos: Okay. Thanks, Kim so on this thing in beta and or those are two projects sort of where we have said you know they need to do some more work before they are ready.

Carlos: And sort of we have had good success with that in over the years to say you know push things back to improve them. Further so so both of them are progressing.

Carlos:

Carlos: The thing we are maturing that towards a final investment decision in the in 2026.

Unknown Executive: And that work is progressing on Bedunor, also progressing well. And, and, We do hope and expect to bring that forward to sort of a concept select, not too far into the future. We have an ongoing drilling program, you know, in those waters, and that hopefully can prove up even more volumes there. In the contracting environment, you know, it is generally, you know, a rather tight market, and we see clearly inflation, but in sort of the projects which are sanctioned, you know, we have good control. I mean, the non-sanctioned projects, I mean, we are not immune, so we see more exposure there

Carlos: And that work is progressing on beta Nora also.

Carlos: Progressing well.

Carlos: And and.

Carlos: We do hope and expect to too.

Carlos: Yeah.

Carlos:

Speaker Change #104: To bring that forward to the two sort of a concept select not too far into the future. We have an ongoing drilling program.

You know in in the in those waters.

Speaker Change #104: Hopefully can prove up even more volumes there.

Speaker Change #104: In a contracting environment.

Speaker Change #104: It is generally.

Speaker Change #104: The tight market and we see clearly inflation.

Speaker Change #105: Bert in sort of the projects.

Speaker Change #105: Which are sanctioned.

Speaker Change #106: You know we have a good control I mean, the non sanctioned project I mean, we are not immune.

Speaker Change #106: So we see more exposure there.

Unknown Executive: You know, as a large sort of investors and operator, clearly, we were able to steer this on a portfolio level and limit the exposure to inflation as such. We have what we need, but clearly, we are not immune to inflation. We see synergies between what we already do and this, particularly with the subsurface and sort of activities, and we do see lithium-eth as sort of an interesting commodity for the future as such, and taking an early and small position in that line of work. Thank you and thank you Kim. Next one on the list is John Olaisen from ABG. John, please.

Speaker Change #106: As a large sort of investors and operator, clearly we were able to steer this on a portfolio level in and limit their exposure to two two to inflation as such so we have we have what we need but clearly we're not immune to two inflation on lithium yes, we are.

Speaker Change #106: Made an acquisition into standard lithium early this year.

Speaker Change #107: We see.

Speaker Change #107: We see synergies.

Speaker Change #107: Between what we already do and this particularly with the subsurface and sort of.

Speaker Change #107: <unk>.

Speaker Change #107: And we do see lithium as a sort of an interesting interesting commodity for the future of search in and taking an early early and small position into that that line of business.

Ron: Thank you Ron and thank you Kim next one normalized this normalized from a BG you. Please.

John Olaisen: Yeah, good afternoon. Thanks for taking my question. Two very quick questions. First, could you please elaborate on the dry well you had in Argentina in 2002? Was the result so disappointing that you will give up exploration of the area, or do you plan further exploration while it's in the area, please? exploration well with a naturally lower expectation for discovery as such. So that's the way it is. You know, the license that Argridge sits on is called CAN 100, which is a very significant and large area.

Speaker Change #109: Hey, good afternoon. Thanks for taking my question two very quick questions.

Rick: Rick on the dry wells you've had in Argentina in Q2.

Speaker Change #111: So it's disappointing that we will give up exploration of their own right.

Speaker Change #111: Okay.

Speaker Change #111: Yeah.

Speaker Change #112: Okay. Thanks. Thank you, yes, so the <unk> well was dry.

Speaker Change #113: It was a frontier.

Speaker Change #113: Exploration well with a naturally lower.

Speaker Change #113: Lower expectation for for discovery research. So so that's the that's the way it is.

Speaker Change #114: Yeah, you know the license that argues sits in this call can 100, which is a very significant and large acreage.

Unknown Executive: But clearly, we have not made up our minds on the way forward, and we will clearly analyze and consider what we will do here. We have covered the area with seismic, and we have a good overview of the area. Okay, so no conclusion as of now, whether you're going to drill more or abandon it? No, we haven't made a decision. I mean, clearly, it's still analyzing, but the well was dry.

Speaker Change #114: But clearly we have not made up of mind on the way forward and we will clearly annualize and then and consider what we what we what we will do.

Speaker Change #115: Do we have we have covered area with seismic.

Speaker Change #115: And we have good overview on the area.

Speaker Change #115: Okay.

Speaker Change #115: Conclusion.

Speaker Change #116: Whether youre going to drill more or abandoned no. We haven't made a decision I mean, clearly is still analyzing but the well was dry.

Unknown Executive: Thank you. My second question is related to the renewable business. Given equity accounting practice, only a small portion of the underlying debt from that part of the business is reflected in the balance sheet.

Speaker Change #117: Alright. Thank you and then my second question is related to the renewable business given the equity accounting practice only a small portion of the underlying net debt from that part of the business is reflected in our balance sheet is it possible to give an indication of the size of our balance sheet.

Unknown Executive: But is it possible to give an indication of the size of the balance sheet debt in relation to the renewable business, please? Yes, that is $3.4 billion. So it's $3.54 at the end of the quarter. But that's not very accurate.

Speaker Change #118: It relates to the renewable business case, yes that is $3 $4 billion.

Speaker Change #119: So the 3.3 points 54.

Speaker Change #120: At the end of the quarter.

Unknown Executive: Is that number given somewhere in the report? No, no, it is not sort of written in the report, but we are happy to provide it, you know, in calls and discussions on an ongoing basis about the size of it. Right. Joon, thank you. But I think, Joon, I'm sorry, but I thank you.

Speaker Change #119: Alright.

Speaker Change #119: Great.

Speaker Change #121: Is that number given hour in the report.

Speaker Change #122: No no. It is not sort of written in the report, but we will be happy to provide it in calls and discussions on an ongoing basis on the size of it right.

Speaker Change #123: Thank you, but I think.

Speaker Change #124: Thank you have had your two questions I know you have a lot on the list. So thank you.

Speaker Change #123: No.

Unknown Executive: You have had your two questions, and I have a lot on the list. So, thank you. Yeah. Thank you, the next one is Henri Patricot from UBS, so Henri, please. Thank you, everyone. Two questions, please, from my side.

Speaker Change #123: Thank you.

Speaker Change #123: The next one this Patrick.

Patrick: Patrick go from from UBS, So hungry place.

Henri Jerome Dieudonne Marie Patricot: The first one in MMP and the other subsection in MMP, which was a more negative number this quarter. You mentioned developing low-carbon projects. I was wondering if that's something that we should expect to be an increasingly negative sort of a drag on earnings in MMP, or was that quarter particularly weak, just in terms of performance to expect next quarter in that particular subsection? And then, secondly, a follow-up on Burger Bank.

Patrick: Well. Thank you everyone. Two questions. Please from my side the first one in MMP.

Speaker Change #126: And the other subsection in MMP, which was a more negative number this quarter you mentioned developing low carbon projects I was wondering if that's something that we should expect to be.

Speaker Change #127: And increasingly negative.

Speaker Change #127: <unk>.

Speaker Change #127: Earnings in MMP or was that quarter.

Speaker Change #128: Particularly weak just a sense of.

Speaker Change #129: Performance two do you expect next few quarters in that particular sub section and then secondly, a follow up on a bigger bank.

Henri Jerome Dieudonne Marie Patricot: So, you mentioned some delays in phase A. I was wondering what the implications are for phases B and C of the projects and whether we should expect maybe some delays there as well and effectively full capacity of the project a bit later than expected. Thank you. Okay. No, thanks, Henry.

Speaker Change #130: Mentioned, you had some delays to phase I was wondering.

Speaker Change #131: What the implications you see for <unk>, B and C for the projects.

Speaker Change #132: Or whether we should expect to be some some delays here as well.

Actually full capacity of the project a bit later than expected. Thank you. Okay. Thanks, Henry So the MMP result came in at 521, which is sort of within the guided range.

Unknown Executive: So, the MMP result came in at 521, which is sort of within the guided range. And I'm happy to see that MMP has been able to deliver within or above the guided range, all since we introduced the increased guiding. So, I would argue that they continue to deliver strong results across the business. This quarter, LNG trading and gas trading, in particular, are worth mentioning.

Speaker Change #133: And I'm happy to see that MMP had been able to deliver within or above the guided range. All since we introduced sort of the increased guiding. So so it was argued that they continue to deliver strong results across the business.

Speaker Change #133: This quarter.

Speaker Change #134: You know LNG trading and gas trading in particular, it's worth mentioning however, sort of the older areas within within MMP delivered you know.

Unknown Executive: However, sort of the other areas within MMP delivered fairly around sort of what you should expect this quarter. The asset that has sort of been under maintenance is Mongsa and the refinery. So, that is sort of very limited results from sort of that part of the business. But when that is in operations, they typically provide, you know, a meaningful part of the earnings from MMP. So, I would say that MMP is sort of here.

Really around sort of what you should expect this quarter. The expected then you know the the.

Then the asset that has sort of been in the maintenance is Mong song and refinery. So that is sort of very limited risk.

Speaker Change #134: Results from sort of that part of the business, but when that is in operations. They provide typically.

Speaker Change #134: A meaningful part into the the.

Speaker Change #134: The earnings from MMP, So I would say that MMP sort of fear on your question on the on low carbon.

Unknown Executive: On your question on low carbon spending, clearly, we are in a growth phase, and clearly, there are business development and early phase costs. We have taken that well into account in our guidance when we put forward. You know, the costs that we do spend, you know, here are specific project-related costs, not administration or general costs. They are linked to projects, but projects which are in, you know, an early phase, so you don't book them as investments; you have to book them as operational costs as well.

Speaker Change #134: Spending clearly we are in a growth phase and clearly there are business development and early phase cost, we have taken that well into account into.

Speaker Change #134: Into our guidance when we put forward.

Speaker Change #135: The costs that we do spend you know here is specific project related cost is not administration or or a general cost they are linked to two projects but.

Speaker Change #135: Projects, which are in.

Speaker Change #137: In an early phase. So you don't book it as investments you have to book it as operational cost as well.

Unknown Executive: Right, the second question was Dogger Bank B and C. So they are planned to come sort of following each other with sort of one year between them. So it's sort of a, you know, long-term, you know, operational sort of, you know, we do it one after the other too, and all of that. So they are planned to come, you know, with one year between them. So I'm not in a position to say whether what we see now is impacting them.

Speaker Change #136: Right. The second question was Dogger Bank, B and C. So sort of the sort of they are.

Speaker Change #136: Planned to calm sort of following each older with sort of one year between them.

Speaker Change #136: So it sort of.

Speaker Change #135: You know.

Speaker Change #135: The long term.

Speaker Change #135: Operational sort of.

Speaker Change #135: We do it one off the older two and all of that so they are planned to come you know with one year between them. So so I'm not in a position to <unk> to <unk> <unk>.

Speaker Change #135: Two to say, where what we see now is.

Unknown Executive: But what we do see is that Dogger Bank B, we expect the first power in first, [inaudible] and full power in first half of 2016, and Doggebank C. First power, first half in 26, and then full power, first half in 27, which is one year after what we expect from Dogecanker. So that's sort of the latest update I have on this. SSE as the operator is the one that we really need to provide with more details. Thank you for your question, Henri. Next one is Michele de la Vigna from Goldman Sachs. Michele, please, the mic is open.

Speaker Change #135: It is.

Speaker Change #135: It is.

Speaker Change #135: Impacting them, but what we do see is that.

Speaker Change #135: That.

Speaker Change #139: Dogger Bank B, we expect the first power in first half of <unk>.

Speaker Change #135: 25.

Speaker Change #135: And full power first half of 'twenty six.

Speaker Change #135: Dogger Bank C.

Speaker Change #135:

Speaker Change #138: First power first half in first half 'twenty six and actual power first half in 2007, which is one year. After what we expect from Dogger Bank case, So that's sort of the latest update I have this FSC as operator is the one that really need to provide with more details here.

Speaker Change #142: Thank you. Thank you for your question Andre next one is our mckellar della Vigna from Goldman Sachs Michela, because the market is open.

Michele Della Vigna: Thank you very much. And congratulations on the good delivery. I will be quick.

Speaker Change #140: Thank you very much and congratulations on the good delivery I will be quick two questions first.

Unknown Executive: Two questions. First, I was wondering about Johan Sverdrup. If you could provide us with a little bit of an update, one more quarter of good production. When do you expect the field to start declining if this has been pushed back into next year? And secondly, we've heard of some disruptions in the offshore wind supply chain, especially in the UK. I was just wondering if you are finding it difficult to get, especially vessels, or if, effectively, this is just the normal course of business.

Speaker Change #141: Was wondering on Johan Sverdrup, if you could provide a little bit of an update one more quarter of good production. When do you expect the field to start declining. If this has been pushed back into next year and secondly, we've heard of some disruption in the offshore wind apply change, especially in the UK.

Speaker Change #143: I was just wondering if you're finding it difficult to get especially the vessels are actively piece is just normal course of business. Thank you.

Unknown Executive: Okay, thanks, Michele. On Johan's word, progressing according to plan. As you remember, we sort of increased the production plateau level earlier this year to 755,000 barrels per day. And we expect it to come off that sort of increased plateau level towards the end of this year or next year. So the key here is to drill wells to manage, you know, water, and water handling.

Speaker Change #144: Okay. Thanks, Mikael on Johan Sverdrup progressing according to plan.

Speaker Change #145: As you remember, we sort of increased the production plateau level earlier this year to 755000 barrels per day.

Speaker Change #145: And we expect it to come off that sort of increased Porto level too.

Speaker Change #145: Towards the end of this year or next year. So the key here is to drill wells to manage order and manage water and water and water handling. So all of that is is progressing. According to plan two new wells. This quarter. We plan 10, new wells during the year then it will be around 41 wells drilled on it.

Unknown Executive: So all of that is progressing according to plan. Two new wells this quarter; we plan 10 new wells during the year, then it will be around 41 wells drilled in Johan's word group. Next year, we will launch a drilling campaign focusing on multilaterals as well.

Speaker Change #145: Huntsville Group next year, we will launch a drilling campaign focusing on multilateral ups as well and then we have a year you know Johan Sverdrup phase III.

Unknown Executive: And then we have, you know, Johan's word on phase three, where we plan for a concept select in the fourth quarter and start by end, you know, 27 on phase three here. You know, I just want to say this is what we do. I mean, this is absolutely the core competence of the company.

Speaker Change #145: And where we plan for a concept select in the fourth quarter and start to fly and 27 on the phase three here.

Speaker Change #146: I just want to say you know this is what you do I mean this is absolutely the core competence of the company and here, we apply and all the competence and technology sort of deep knowledge that we have in managing reservoirs is a sort of.

Unknown Executive: And here we apply all the competence and technology and sort of deep knowledge that we have, and managing reservoirs is sort of equine or at its best, and we apply that at Johan's word group, and it's progressing well, and it continues to deliver as we expect. You had one more. Offshore wind, supply chain, yeah, I think it takes too much to give a full answer on that. We are sort of doing well on the projects that are ongoing, but clearly there are supply chain issues within offshore wind. We do recognize that, but for our own projects, we are good. Thank you, Michele. Paul Redman from BNP Paribas. Paul, please. Hi Paul, are you there?

Speaker Change #146: I think ex interacted best then we apply that Johan Sverdrup and is progressing well and it continues to deliver as we expected.

Speaker Change #147: You had one more offshore wind supplies and yeah, I think it takes too much to give a full answer on that.

Speaker Change #147: We are we are sort of well.

Speaker Change #147: The projects that are ongoing but clearly there are supply chain issues within offshore wind, we do recognize that both for our own projects. We are we are good.

Thank you Kayla.

Speaker Change #147: Paul Redman from BNP Paribas Paul please.

Speaker Change #147: Yeah.

Speaker Change #148: Hi, Paul are you there.

Paul Redman: Yes, can you hear me? Sorry. Can you hear me now?

Paul Redman: Yes, yes, sorry.

Speaker Change #150: Thank you Paul.

Unknown Executive: Thank you, Paul. Perfect. On turnaround quickly, you've gone into 125 NBOED for 3Q24.

Speaker Change #150: Perfect.

Speaker Change #151: Turnarounds quickly you got into a 125 and <unk> 24, if I look at 323.

Unknown Executive: If I look at 3Q23, what was the planned maintenance? And you also have a number for what unplanned maintenance impacted you last quarter. I'm trying to just see whether 125 NBOED is more or less year on year. And then second, when we talk about value over volume in the renewable division, just building a little bit on Lydia's question, if there's areas where you think that you could slow down capital, do I see that as CapEx out of the plan? Or would you see a reallocation to other parts of the business?

Speaker Change #152: What was the planned maintenance and you also have a number for unplanned maintenance impacted you last quarter I'm trying to just see whether a 125 mbd is more or less year on year.

And then second when we talk about value over volume in the renewable division I've just built.

A little bit on <unk> question.

Speaker Change #153: There's areas, where you think that.

Speaker Change #153: You could slow down capital towards it.

Speaker Change #154: Out of the plan or would you see a reallocation into other parts of the business. Thank you very much.

Unknown Executive: Thank you very much. Okay, so good. So turnarounds, you know, we expect 125,000 battles per day in the third quarter this year. And then last year, it was 38, you know, in the same quarter, and then I'm not sure I really got your question. And that was related to unplanned maintenance; we had some prolonged maintenance related to troll last year. But I think that impacted the fourth quarter more than the third quarter.

Speaker Change #154: Okay.

Speaker Change #154: So good.

Speaker Change #154: Turnarounds.

Speaker Change #155: You know we expect 125.

Speaker Change #155: Allison barrels per day in the third quarter this year and last year. It was 38.

Speaker Change #156: And the same in the same quarter and I'm not sure I really got your question and that was really the unplanned maintenance, we had some prolonged maintenance related to troll last year.

I think that impacted the fourth quarter more than the third quarter.

Unknown Executive: But I think maybe you should, you know, call investor relations afterwards to get the more specific details on that. But my point is, it is sort of, you know, a significant program we have in the next quarter, but production guiding remains firm on value over volume.

Speaker Change #157: But as I think maybe you should call investor relation afterwards to get more specifics the specifics on that but my point is it is sort of you know.

Speaker Change #157: Significant program, we have and then in the next quarter both production guarding it remains firm.

Speaker Change #157: On value over volume.

Unknown Executive: Well, you know, We are planning to invest 10 billion dollars in our oil and gas activities, and that sort of remains firm; it has a high priority in the capital allocation project and capital allocation process, and sort of if we should make any changes, you know, I mean, we have a guide out there, and sort of there's no sort of, Well, let me put this differently. I mean, we are not in a position where we want to change anything related to COPEX guiding for the time being.

Speaker Change #157: Well you know.

Speaker Change #157: We are planning to invest $10 billion into our oil and gas activities and that sort of remains firm. It has a high priority in the capital allocation project.

Speaker Change #157: From a capital allocation process and sort of if we should make any changes.

Speaker Change #157: I mean, we have we have a guiding out there and sort of.

Speaker Change #157: Theres no sort of.

Speaker Change #158: Well, let me introduce differently I mean.

We are not in a position, where we want to change anything related to or Capex guiding for for the time being things are progressing according to our plan and sort of in sort of the the value over volume.

Unknown Executive: Things are progressing according to our plan and sort of in sort of the value over volume process, value over volume considerations, that are typically impacting more the early phase sort of activities than ongoing investment programs. So I mean, you have seen that we haven't won in sort of lease rounds recently. That is because we just find them to be too expensive.

Speaker Change #158:

Speaker Change #158: Process.

Speaker Change #158: Value over volume considerations that is typically impacting more to early phase sort of activities than ongoing investment program. So so I mean, you have seen that we haven't sort of one in sort of lease rounds.

Speaker Change #158: Recently.

Speaker Change #158: That is because we just find them to be too expensive that is not impacting sort of a short term investment is more sort of the law.

Unknown Executive: That is not impacting sort of a short-term investment; it's more sort of the longer-term investment that it will have an impact on. So I have no update to give you on this for the time being, Paul. But clearly, we are not starting new projects unless we see that they create value.

Speaker Change #158: Longer term investment as they will have an impact on so so I have not an update to give you give you on this for the time being Paul but clearly we are not starting new projects unless we see that they are value creative.

Unknown Executive: Thank you. Next one is Chris Kuplent from Bank of America. Chris, please go ahead.

Speaker Change #158: Thank you. Our next one is Chris Coupland from Bank of America, Chris. Please go ahead.

Christopher Kuplent: Thank you for taking my question, Baud, and I'll try and keep it short. One remaining, Torgrim, would you mind updating us? What kind of macro deck was prevalent when these new tax installments were set for the second half? That's it. Thank you. Yeah, no, great, Chris.

Christopher Kuplent: Thank you for taking my question and I'll try and keep it short one remaining.

Christopher Kuplent: Would you mind updating us what kind of macro deck.

Speaker Change #160: It was prevalent when these new tax installments were set for the second half.

Speaker Change #161: That's it thank you.

Unknown Executive: So that will typically be, you know, close to forward prices that we are sort of in earlier this spring, so I don't have the number, Chris, particularly, but I think it would be around, I think if you have a look at sort of the forward prices in early June, I think that is a good estimate for sort of the assumptions we do for those calculations, and I can't remember exactly what it is, but have a look at that That's fine. Thank you very much. Thank you. Let's move on to Jason Gabelman from TD Cowen.

Speaker Change #162: Yeah, no great Chris so.

Speaker Change #163: That will typically be.

Speaker Change #164: You know.

Speaker Change #164: Close to forward prices.

Speaker Change #164: That we that we are sort of you know.

Speaker Change #165: And earlier this.

Christopher Kuplent: This spring so I don't have the number Chris.

Particularly but I think it would be around.

Christopher Kuplent: I think if you look at sort of the forward prices early June I think that is a good estimate for sort of the assumptions, we do for those calculations and I can't remember if I can just that one it is but have you ever looked at that and you'll find the answer.

Speaker Change #166: That's fine. Thank you very much thank you.

Jason Daniel Gabelman: Jason, please, the mic is open. Hey, thanks for taking my question. Just one quick one for me. Next year, you have a $2 billion range for shareholder distributions. Can you just talk about what the factors are when you consider the low end to the high end of the range? Is it commodity prices? Is it things like empire when it's farmed down?

Jason Daniel Gabelman: Let's move on to Jason Gammel from TD Cohen Jayson. Please the market is open.

Jason Daniel Gabelman: Yeah. Thanks for taking my question just one quick one for me.

Speaker Change #168: Sure you have a $2 billion range for shareholder distributions.

Can you just talk about what the factors are.

Speaker Change #169: What do you consider the low end or the high end of the range is it commodity prices is it things like Empire wind farm down is there kind of a one or two items that could tilt the balance to the low end or the high end for next year. Thanks.

Unknown Executive: Is there kind of one or two items that could tilt the balance to the low end or the high end for next year? Thanks. All right. Okay. Thanks. Thanks, Jason. Yeah. So, between $4 and $6 billion in share buyback next year. So, it is not linked to any farm down or empire wind or anything like that.

Speaker Change #169: Alright, okay. Thanks, Thanks, Jason.

Speaker Change #170: So between four and $6 billion and share buyback next years so.

Speaker Change #171: It is not linked to two and if harmed on our empire wind or anything like that.

Speaker Change #172: We are we haven't made up our mind, yet and they will communicate that on our capital markets day, but typically parametric to consider is the strength of the balance sheet and sort of.

Unknown Executive: We haven't made up our minds yet, and we will communicate that on capital markets day. But typically, parameters to consider are the strength of the balance sheet and sort of the macro outlook at that point in time. So, those are the two major parameters that will sort of go into that consideration. Thank you. We are fast approaching the hour, but let's take one final one, and that is Matt Lostedau from J.P. Morgan. Matt, please.

Speaker Change #172: The you know the macro outlook at that point in time as our stores are the two major parameters that's been sort of go into that consideration.

Speaker Change #173: Thank you we are fast approaching the hour, but let's take one final one on that this month.

Speaker Change #177: The loss to now from JP Morgan marketplace.

Matt Lostedau: Hi guys, thanks for the update. There is just one question left, please. I just want to ask you about full year operating cash flow generation. It struck me that the run rate in the first half looked somewhat light at under 8 billion pre-working capital relative to the 17 and a half or so I think that you'd referenced in Feb for the full year. So obviously, cash tax is expected to be lower in the second half, but equally, you're signaling a heavier turnaround effect, certainly in 3Q.

Hi, guys. Thanks for the update just one question left please I just wanted to ask you about full year operating cash flow generation. It struck me that the run rate in the first half looked somewhat light.

Speaker Change #174: That's up 8 billion pre working cap relative to the 2017 and a half or so I think that you had referenced in February for the full year. So.

Speaker Change #176: Obviously cash taxes are expected to be lower in the second half, but equally you're signaling a heavier turnaround effects.

Speaker Change #175: <unk> so how.

Matt Lostedau: So how do you sort of see the run rate gap second half versus first half and, in the absence of higher gas prices, where does that additional cash generation come from? Thanks. Okay, thanks, Matt. So you're right, 7.7 in the first half and then 17 and a half for the full year. So it's higher towards the end.

Speaker Change #175: How do you sort of see the.

Speaker Change #182: The run rate GAAP second half versus first half and then absent higher gas prices, where does that additional cash generation come from thanks. Okay.

Speaker Change #180: Thanks, Matt So you're right.

Speaker Change #181: Seven seven.

Speaker Change #178: The first half and then 17 and a half for the for the full year. So as a result of higher.

Unknown Executive: We actually see a relatively flat cash flow from operations before tax for the four quarters this year, and the tax, the shift in tax payment is actually the major explanation for this. And I would say that sort of should explain absolutely most of it. So, so, you know, the production is, You know, the, yeah, you know the, the... We are getting back quite a bit of U.S. production in the second half of the year, and that has a very low tax associated with it, so that clearly helps on sort of the after-tax cash flow if you sort of compare that to sort of the after-tax cash So, although it is a majority, the major explanation here is actually tax benefits.

Towards that end, we see actually a relatively flat cash flow from operations.

Unknown Executive: You know, through the four quarters this year, and the text, the shift in text payment is actually the major explanation to this, and I would say that sort of like should explain, absolutely most of it.

Speaker Change #179: Before tax.

Speaker Change #183: Through the four quarters this year and the tax this is a shift in tax payment is actually the major explanation to this and I would say that sort of like should explain the absolutely most of it.

Speaker Change #179: So so the production is.

Unknown Executive: So, you know, the production is, you know, then we are getting back quite a bit of US production in the second half of the year, and that has a very low text associated with it. It really helps on sort of the after-text, cash flow, if you sort of compare that to sort of the after-text, cash flow of maintenance or maintenance, yes, which has a large text coverage, if you like. So, but it is the major explanation here is actually text payments.

Speaker Change #179: Yeah.

Speaker Change #179: Yeah, you know the.

Speaker Change #179: The.

Speaker Change #179: We are getting back quite a bit of U S production.

Speaker Change #179: In the second half of the year and that has a very low tax associated with it. So that clearly helps on sort of the after tax cash flow. If you sort of compare that to sort of the after tax cash flow off of maintenance on the NCS, which has a large tax coverage. If you like so but it is a majority of the major explanation here is actually a tax payments.

Unknown Executive: Thank you and thank you everybody for calling in and for your questions. We are just above one hour, as usual. Let me remind you that the IR team is still available if there are any follow-up questions. So, thank you and have a good rest of the day.

Unknown Executive: Thank you, and thank you, everybody, for calling in and for your questions. We are just above one hour, as you are sure. Let me remind you that the IR team remain available if there are any follow-up questions.

Speaker Change #184: Thank you.

Speaker Change #185: Thank you everybody for calling in and for your questions. We are just above a one hour as usual.

Speaker Change #186: I knew that the IR team remain available if there are any follow up questions. So thank you and have a good rest of the day.

Unknown Executive: So, thank you, and have a good rest of the day.