Q1 2025 Evogene Ltd Earnings Call
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With us on the line will be Mr. Ofer Aviv, President and CEO of imaging and Jan Who's the CFO of Virgin.
Speaker Change: Now I will turn the call over to Mr. Ofer Levy Mr. Habayeb. Please go ahead.
Good day everyone.
In today's conference call I would like to begin with a review of the financial and business highlights for the first quarter of 2025 and up to date.
Speaker Change: Followed by an overview of Imogen point activities and activities of the subsidiaries.
Jan Edwards: My remarks, Jan is that Edwards is CFO will provide a financial update on the first quarter of the year.
Speaker Change: We will then open the Q&A session.
Jan Edwards: Let's start with the financial and business highlights.
Jan Edwards: In the first quarter of 2025 total revenues were approximately $2 $4 million.
Jan Edwards: Compared to approximately $4 2 million in the first quarter of 2024.
Jan Edwards: The reason for the difference is that in the first quarter of 2024 revenues included license fee payments totaling $3 5 million, which were $2 5 million from the <unk> license fee, Andrew each collaboration with Teva and 1 million.
Jan Edwards: Atlanta's license be Andrew its collaboration with buyer.
Jan Edwards: Primary driver of revenues in the first quarter of 2025 was an increase in situ bypass Debra.
Jan Edwards: During the fourth the fourth quarter of 2024, and the beginning of 2025.
<unk> established an expense reduction plan, which will be completed by the second quarter of 2025.
Jan Edwards: This reduction in expenses is already partially reflected in the financial results of the first quarter of 2025.
Jan Edwards: In the first quarter of 2025.
Jan Edwards: <unk> expenses were approximately $3 $2 million compared to approximately $4 $8 million in the first quarter of 2024.
Jan Edwards: This decrease is mainly due to the decrease in biomarker <unk> R&D activity.
Jan Edwards: In the first quarter of 2025.
Jan Edwards: Sales and marketing expenses were approximately <unk> $6 million compared to approximately $1 million in the first quarter of 2024.
Jan Edwards: This decrease is mainly due to the decrease in <unk> <unk> and.
Jan Edwards: In marketing activity.
Jan Edwards: In the first quarter of 2025 total operating expenses net were approximately $5 million.
Jan Edwards: Compared to approximately $8 million in the first quarter of 2024.
Jan Edwards: This decrease is mainly due to the decrease in la <unk> and biomarker operating activity.
Jan Edwards: As of the end of the first quarter of 2025.
Jan Edwards: The company's cash and short term bank debt.
Jan Edwards: It was approximately $9 $8 million.
Jan Edwards: Including approximately $5 $5 million.
Jan Edwards: To BELBUCA.
Jan Edwards: This cash balance.
Jan Edwards: It does not reflect approximately $2 million.
Speaker Change: You from customers outstanding customers.
Jan Edwards: Two of which were received in the second.
Jan Edwards: For 2025.
Jan Edwards: It also excluded the expected proceeds from the sale of <unk> assets and the micro most AI for uptick engine to ICL, which we announced in April at this.
Jan Edwards: This transaction is expected to close in the second quarter of 2025.
Jan Edwards: I would now like to highlight key achievements of the Epogen group in Q1 2025 and to date.
Jan Edwards: Starting with <unk> itself.
In relating to campus AI for pharma I am pleased to report substantial advancement on the following areas.
Speaker Change: We haven't refined campus AI value proposition clearly articulating each distinct competitive advantages.
Speaker Change: The pharmaceutical and biotech sectors. The design of novel compounds that are both highly potent and multiple critical development criteria.
Speaker Change: Considerable progress has been made in developing the foundation model application as part of our collaboration with Google Cloud.
Speaker Change: This modern constitutes.
Speaker Change: The core of our campus GPT lead optimization package.
Speaker Change: Moving on to our subsidiaries starting with <unk>.
Speaker Change: As I stated in our previous call.
Speaker Change: Hamilton is focusing on creating exit events with respect to part of our subsidiaries.
Speaker Change: Such events will generate value and cash to Amgen and its shareholders.
Speaker Change: The transaction between <unk> and ICL is the first result of such efforts.
Speaker Change: On April 21, 2025, we announced the acquisition of most of the activity of <unk> by ICL for an aggregate value of $15 million to $5 million.
Speaker Change: In addition, ICL, we acquired Epogen macro boost AI <expletive> engine for the agriculture field for approximately $3 $5 million.
Speaker Change: As part of the transaction ICL state investment in <unk> is being redeemed.
Speaker Change: The acquisition is expected to be completed during the second quarter of 2025, following the completion of certain customary and regulatory closing conditions.
Speaker Change: Can also envision long term upside for Evo Jin from certain existing assets, which remain with la <unk> bio and are not part of the transaction with ICL.
Speaker Change: More details on the transaction will be provided later in the presentation.
Speaker Change: Okay.
Speaker Change: Now, let's move to Castilla.
Speaker Change: Since the beginning of the year customer has delivered 250 tons of castle seed to its partner in Africa.
Already surpassing the 250 bonds.
Speaker Change: Delivered through all of 2024.
Speaker Change: Yeah.
Speaker Change: In Brazil.
Speaker Change: Castilla strength its sales teams and started the execution of a new marketing and sales strategy.
Speaker Change: I am pleased to report that <unk> initiated.
Speaker Change: Roof of concept trial.
Speaker Change: For grain not cede to be sold to caster crashing factories.
Speaker Change: In partnership with one collaboration in Kenya, and one in Brazil.
Speaker Change: Twice are already underway in all location and the company expected initial results in the third quarter of 2025.
Speaker Change: Moving to <unk> plans.
Speaker Change: In February 2025, <unk> announced the discovery of a new mode of action for fungicide against fifth Doria in wheat.
Speaker Change: The company made significant headway in the discovery phase with the identification of several promising candidate compounds targeting the new mode of action.
Speaker Change: <unk> intends to commence formal discussion with prospective licensing partners by year end.
Speaker Change: I wouldn't envy spot with Miami highlights the phase one clinical study of BMC 128 is progressing.
Speaker Change: New data has shown early signs of BMC 128.
Speaker Change: Monotherapy effectiveness through immune activation.
Speaker Change: Observe within 14 days of treatment.
Speaker Change: Regarding the newly launched obesity and longevity programs in Mitchell competition at analyses indicate that micro microbiome based solution can be effectively designed and developed to target those areas.
Speaker Change: Early stage of discussions are currently underway.
Speaker Change: Value add potential partnerships opportunities.
Speaker Change: It is important to highlight that additional funding is necessary to advance to phase II of the clinical study.
Speaker Change: Meanwhile, Biometry established an expense reduction plan, which will be completed by the third quarter of 2025.
Speaker Change: This reduction in expenses is already reflected in <unk> financial results of the first quarter of 2025.
Speaker Change: I will provide more details for each subsidiary later in the presentation.
Speaker Change: I will now continue with a short overview of <unk> and its growing focus on utilizing and improving its campus AIG take engine specifically for drug discovery based on small molecules.
Speaker Change: As you all know our vision is to position ampligen as a pioneering company in the development of groundbreaking life science products rooted in microbes small molecules and genomics.
Speaker Change: To realize this vision, we have concentrated on integrating life science expertise.
Speaker Change: Advanced Big data and state of the art competition technologies.
Speaker Change: This approach led the development of our three proprietary AD Tech engine.
Speaker Change: Each.
Speaker Change: Designed to drive it.
Speaker Change: The <unk> discovery and optimization of life science products.
Speaker Change: Our AI driven tech engines offer a strong value proposition by efficiently identifying and optimizing the most promising candidates. We believe that this enhance the likelihood of achieving innovative products within competitive timelines and cost effective way.
Speaker Change: To capture the value of the tech engines offering we established a business messaging that.
Speaker Change: Designed to maximize potential while minimizing risk.
Speaker Change: This through a diverse network of collaborative partnership for life Science product development.
Speaker Change: We partner with experts in complementary field, forming licensing collaborations agreement with companies that bring domain specific knowledge.
Speaker Change: This strategic alliance, we aimed to co develop innovative product.
Speaker Change: The appetite for evil, Jim Steams from revenue sharing mechanisms of the end product.
Speaker Change: Through equity holding in the company developing the end product.
Speaker Change: There is a current snapshot of our business achievements.
Speaker Change: To date, averaging currently owns four subsidiary companies each focused on a specific market segment.
Speaker Change: I previously presented Ics <unk> and Epogen signed a definitive definitive agreements in April and in which ICF. We acquired most of the activity of the <unk>.
Speaker Change: Closing is expected by the end of the second quarter of the year.
Speaker Change: In our last call I presented this slide to clarify the guidelines directing <unk> efforts in the near future to develop a more capital efficient model to generate greater value.
Speaker Change: This by focusing further on the use of our campus in the field of AI.
Speaker Change: Our drug discovery.
Speaker Change: And generating value and cash flow from our subsidiaries.
Speaker Change: In todays call I would like to focus on the first items in each section.
Speaker Change: In bold.
Speaker Change: And elaborate on relevant achievements.
Speaker Change: Let's start with <unk>.
Speaker Change: We are focused.
Speaker Change: On enhancing campus a value.
Speaker Change: Value proposition for the pharma market segment.
Speaker Change: In recent months, we have refined and assessed the value proposition of campus AI, highlighting <unk> unique competitive advantage for the pharmaceutical and biotech industry. We aim to tackle the key challenge in small molecule drug development.
Speaker Change: Discovering and designing.
Speaker Change: Normal compounds.
Speaker Change: And not only highly potent.
Speaker Change: But also met multiple terrific.
Speaker Change: <unk>.
Speaker Change: Our solution empowers drug development companies to develop breakthrough therapies, while securing robust and broad intellectual property protection.
Speaker Change: At the heart of our offering is campus AI, our proprietary computational platform built on in house developed generative AI.
Speaker Change: Designed to explore unchartered chemical space.
Speaker Change: <unk> AI could use it.
Speaker Change: Lastly, optimize molecules that meet complex product requirement with high potency.
Speaker Change: In the following three slides I'll review campus AI offering for the pharma industry.
Speaker Change: This is a typical drug discovery and development pipeline.
Speaker Change: Working with <unk>.
Speaker Change: Identification of a protein target continuing with the small molecule screening and optimization phases.
Speaker Change: Then validation in preclinical assays.
Speaker Change: Ending with clinical studies.
Speaker Change: Tampa AI uniquely enable the discovery and design of highly potent.
Speaker Change: Compounds.
Speaker Change: Optimize across multiple parameters.
Speaker Change: And tailored to a specific target protein.
Speaker Change: Boosting the likelihood of success in preclinical and clinical studies and holding strong commercial value.
Speaker Change: In each of the screening and optimization phases.
Speaker Change: Campus AI offers unique computational capabilities developed by the evident team.
Speaker Change: That support the researchers networks to discover and optimize the most promising candidates.
Speaker Change: In the next slide I would like to present, how our foundation model, which is being developed in collaboration with Google Cloud.
Speaker Change: Announced in October 2020 for enhanced both novelty and the ability to address multi parameters optimization challenges.
Speaker Change: This condition model is at the core of our campus GPT lead optimization package.
Speaker Change: Two additional generic team AI models in drug discovery.
Speaker Change: I struggle with smaller training the deficit, which frequently results in the generations of molecules lacking the desired properties.
Speaker Change: Ampligen proprietary campus GPT Foundation model trained on extensive chemical space.
Speaker Change: 38 billion molecules.
Speaker Change: In designed to overcome these.
Speaker Change: These limitations dramatically expanding the boundaries of molecular discovery.
Speaker Change: By exploring.
Speaker Change: Obviously and theft Simi talent territories, our model enabled us to generate novel diverse and valid molecular structures.
Speaker Change: Enhanced predictions of efficacy.
Speaker Change: Optimize complex multi parameter profiles with greater precision and flexibility.
Speaker Change: This unprecedented scale and depth of chemical understanding will uniquely position averaging at the forefront of next generation AI driven drug discovery.
Speaker Change: We expect to update on our progress in the near future.
Speaker Change: I will now move on to the second item our effort to create meaningful exit event for evil Jim through certain subsidiaries.
Speaker Change: As mentioned earlier in April of this year, we announced the acquisition of the majority of the Big Bang theory.
Speaker Change: <unk> and assets by ICF.
Speaker Change: This transaction is expected to generate value for imaging in two ways directly so the sales of micro most AI for AGA.
Speaker Change: And indirectly through future dividends as epogen remains a major shareholders in <unk>.
Speaker Change: In addition, more value may be generated from assets that are kit with <unk>. After the transaction I will provide additional detail in my overview of EOG subsidiary.
Speaker Change: We remain committed to pursuing and updating you on further milestones that unlock value or generate cash from epogen subsidiaries.
Speaker Change: We will now continue with an overview of <unk> subsidiaries.
Speaker Change: I would like to begin with <unk>, a global leader in developing next generation and biological products powered by macro boost AI for AMETEK engines.
Speaker Change: On equity 21, 2025, we announced the acquisition of most of the activity of levy value by ICL.
Speaker Change: For an aggregate value.
Speaker Change: $15 million to $5 million.
Speaker Change: In addition, ICL will acquired <unk> micro boost AI Tech engine for the agriculture field for approximately $3 5 million.
Speaker Change: As part of the transaction ICL of safe investment in the B bio is being redeemed.
Speaker Change: Key assets to be transferred to ICL include <unk> core team.
Speaker Change: Selected epogen as employees.
Speaker Change: The bdd technology platform.
Speaker Change: Levine values microbial bank.
Speaker Change: And data assets and most of its development programs.
Speaker Change: As I noted earlier <unk> <unk>.
Speaker Change: Existing agreements with its current partners.
Speaker Change: Tampa and Syngenta.
Speaker Change: We'll not be transferred to ICL and.
Speaker Change: In may generate future revenue for La <unk>.
Speaker Change: And indirectly to Evo Jim.
Speaker Change: The acquisition is expected to be completed during the second quarter of 2025.
Speaker Change: Following the satisfactory completion of certain customary closing conditions.
Speaker Change: I would like to emphasize that this transaction followed more than two.
Speaker Change: Close collaboration between ICL in Q4.
Speaker Change: For developing innovative bio stimulant solutions for row crops.
Facing various biotic stresses.
Speaker Change: The integration of <unk> activities into ICL and to significantly advance the global AD buy logical field and drive impactful innovation in agriculture.
Speaker Change: This transaction reflects epogen ongoing strategy to unlock the value of its assets for the benefit of shareholders.
Speaker Change: Continuing with Castilla <unk> wholly owned subsidiary dedicated to developing an integrated solution for large scale commercial cattle farming leveraging each unique elite seed varieties.
Speaker Change: <unk> comprehensive approach is designed to address the growing global demand for stable and sustainable cost of oil supply preliminary for use in bio based products and biofuels.
Speaker Change: The company's is utilizing epogen generator AI tech engine to drive and accelerate the development of which Proprietaries elite cost of <unk>.
Speaker Change: The third we began 2025 with strong momentum achieving meaningful progress toward all of its annual targets.
Speaker Change: Today, I would like to highlight achievements related to the first three.
Speaker Change: Increase in peso seed revenue in Africa.
Since the beginning of the year <unk> has delivered 250 tons of cash proceed towards partnering in Africa one.
Speaker Change: One redknee, so pricing the 215 tone Dilip.
Speaker Change: It delivered through all of 2024.
Speaker Change: We anticipate receiving additional orders for delivery later this year.
Speaker Change: In Brazil, we have strengths our sales teams and launched the execution of our new marketing and sales strategy.
Speaker Change: Initiating a proof of concept trial for green cultivation in turning in Brazil.
Speaker Change: I am pleased to report that we have initiated.
Speaker Change: Yossi trial for green not seats to be sold to castle crushing factories in partnership with one collaborator in Kenya, and one in Brazil.
Speaker Change: Why is already underway in all locations and we expect initial results in the third quarter of 2025.
Speaker Change: With respect to development of new varieties.
Speaker Change: There was a third target currently significant multilocation field trials are taking place in Kenya and Brazil.
Speaker Change: I look forward to providing further updates on these initiatives and additional milestones as they progress.
Speaker Change: Next in Atlanta's comp.
Speaker Change: Company dedicated.
Speaker Change: Two developing innovative and sustainable crop protection solutions powered by <unk> campus AI engine.
Speaker Change: Since the start of 2025 <unk> has focused primarily on advancing its strategic collaboration with Biogen and on progressing its sartorial.
Speaker Change: Program.
Speaker Change: The collaboration with Bayer.
Speaker Change: Marketing the development of broad spectrum herbicide is progressing according to plan and remains in line with the agreed walkman.
Speaker Change: Meanwhile, in each of donor program in February 2025, and <unk> announced the discovery of new mode of action for fungicide against the dollar in wheat.
Speaker Change: Additionally, <unk> has made significant headway in the discovery phase identifying several promising candidates.
Speaker Change: Compounds targeting the new mode of action the company plans to initiate engagement with potential licensing partners by year end.
Speaker Change: Importantly.
Speaker Change: We expect that act claims activity will be funded primarily through strategic collaborations with leading tier one companies.
Speaker Change: Mr. <unk> is the focal point for Atkins management, and a key area of support from <unk>.
Speaker Change: We believe that the evidence substantial investment in its 10, plus AI for pharma will significantly enhance and accelerate these efforts.
Speaker Change: Now.
Speaker Change: Turning to biomarker a company focused on developing microbiome based therapeutics for human hands.
Speaker Change: Bridging ampligen micro most AI tech engine as discussed in previous calls <unk> primary focus remains on advancing its immuno oncology program led by its lead candidate BMC 128.
Speaker Change: The ongoing phase one clinical study is progressing toward completion with the majority of enrolled patients demonstrating prolonged clinical benefits.
Speaker Change: Since the beginning of the year <unk> has shown progress toward both in its first and third annual targets.
Speaker Change: The phase one study is advancing in accordance with the clinical protocol.
Speaker Change: Importantly, new data collected this year.
Speaker Change: Provided additional mechanistic insights.
Speaker Change: Clinical response outcomes, although now we enforced by immune oncological analogy.
Speaker Change: With show activation of multiple immune cells types following administration of BMC 128.
Speaker Change: These findings serve as early growth of the candidate effectiveness observed as soon as 14 days.
Speaker Change: They are initiating BMC 128 monotherapy.
Speaker Change: Regarding the newly launched obesity and longevity program.
Speaker Change: Initial findings from competition analysis suggested that Mikkel bio based solution could be effectively designed to address these areas.
Speaker Change: Early stage discussion are underway.
Speaker Change: To explore potential partnership.
Speaker Change: I would like to emphasize that in order to proceed to phase III.
Speaker Change: The clinical study for BMC 128 <unk>.
Speaker Change: Additional funding will be required.
Speaker Change: This will require substantial effort from Wyoming cause management with evidence supports.
Speaker Change: Additionally, biomarker established an expense reduction plan, which will be completed by the third quarter of 2025.
Speaker Change: This conclude my section of the call and I will now hand, it over to you Ron for the CFO update.
Ron: Thank you.
Ron: Thank you Ofer.
Ron: As of March 31, 2025, several yen helped consolidated cash cash equivalents and short term bank deposits were approximately $9 $8 million.
Ron: Compared to approximately $15 $3 million as of December 31, 2024.
Ron: This cash balance does not reflect approximately $2 million due from castells outstanding customers.
Ron: The majority of which were seen in the second quarter of 2025.
Ron: Excluding the <unk> bundle and biomarker.
Ron: <unk> and its other subsidiaries used approximately $3 million in cash during the first quarter of 2025.
Ron: Revenues for the first quarter of 2025 were approximately $2 4 million a significant decrease from approximately $4 2 million in the same period of the previous year.
Ron: This decline was primarily due to revenues recognized in 2024.
Ron: From <unk>.
Ron: Licensing agreement with Bayer and <unk> Bio's licensing agreement with Teva.
Ron: In 2025.
Ron: Revenues were mainly driven by Costa has increased seed sales.
Ron: Research and development expenses for the first quarter of 2025 were approximately $3 2 million.
Ron: A significant decrease from approximately $4 $8 million in the same period the previous year.
Ron: The decrease in expenses was mainly due to lower research and development expenses in biomarker and novel Bio <unk>.
Ron: <unk> to the same period the previous year.
Ron: As well as the closure of economics operation during the first half of 2024.
Ron: Sales and marketing expenses decreased to approximately $645000 in the first quarter of 2025 compared to approximately $992000 in the same period last year.
Ron: The decrease was primarily driven by a reduction in the Zimbabwe with sales and marketing activities.
Ron: General and administrative expenses decreased to approximately $1 3 million in the first quarter of 2025 comp.
Ron: Compared to approximately $1 $7 million in the same period last year.
Ron: The decrease was primarily attributable to reduced expenses.
Ron: The tool of embargo and Virginia as well as the closure of economics operation during the first half of 2024.
Ron: Other income of approximately $191000 was recorded in the first quarter of 2025.
Ron: As part of the accounting treatment relating to a sublease agreement.
Ron: The decision to cease economics operations in the first half of 2024.
Ron: <unk> in other expenses of approximately half a million dollars.
Ron: American due to the impairment of fixed assets recorded in the first quarter of 2024.
Ron: Operating loss for the first quarter of 2025 remained stable at approximately $4 1 million.
Ron: Similar to the operating loss reported in the first quarter of 2024.
Ron: Net financing expense income for the first quarter of 2025 was approximately $1 $1 million compared to net financing income of approximately $241000 in the same period last year.
Ron: The increase was primarily due to the accounting treatment of pre funded warrants and warrants issued in August 2020 full fundraising.
Ron: These instruments were classified as liabilities on our consolidated statements of financial position.
Ron: Initially recorded at fair value and subsequently we measured at each reporting period, using the black controls option pricing model.
Ron: As a result in the first quarter of 2025.
Ron: The company recorded net financing income of approximately $1 $5 million.
Ron: Related to the re measurement of these pre funded warrants and warrants.
Ron: The net loss for the first quarter of 2025 was approximately $3 million.
Ron: Impaired to approximately three point the $8 million in the same period last year.
Ron: Zero point $8 million decrease in net loss was primarily due to reduced operating expenses and increased net financing income.
Ron: Partially offset by decreased revenues as noted above.
Ron: Operator.
Ron: Thank you.
Speaker Change: Ladies and gentlemen at this time, we'll begin the question and answer session.
Ron: In order to send the question. Please use the chat box located at the bottom of your screen.
Ron: Please state your full name and your company's name before the question.
Ron: Please standby, while we poll for some questions.
Ron: Yeah.
Ron: Okay.
Speaker Change: The first question is from Greg Van Cleef with Lake City Lake.
Speaker Change: Blake Street capital markets.
Speaker Change: With the 250 tons of cost of seats of Liberty.
Speaker Change: In the first quarter, but this complete the initial order from any place in mid 2020 free or do you expect additional sales from this order later this year.
Speaker Change: Question two.
Speaker Change: You noted I believe.
Speaker Change: That you will receive additional orders.
Tara: Tara this year.
Speaker Change: Relative to the initial orders from 2020 free which totaled $11 million.
Speaker Change: $7 $1 million.
Speaker Change: Do you expect a follow on order.
Speaker Change: Should we have to be an increase or decrease.
Speaker Change: And do you expect additional orders.
Ron: So we still delivered in 2025.
Ron: Or will this be the delivery in 2026 and beyond.
Ron: Hi, Matt This is ofer and thank you for this question and notify to disclose as much as they can so desktops.
Ron: In short explanation that the.
Ron: The.
Ron: Yeah, Dara to selling season.
Ron: Yeah.
Ron: Uh huh.
Speaker Change: And in Brazil, there is a certain now you're only one channel in those certain areas.
Speaker Change: But the majority of nuances.
Speaker Change: And the order that we received are usually.
Speaker Change: Six months.
Speaker Change: Okay.
Speaker Change: And so you see them, sometimes even more.
Speaker Change: Let's take us time to Gms disease. So the current.
Ron: Shipment that we said.
Speaker Change: Well steel related today.
Speaker Change: Based on the same time.
Speaker Change: The first one.
Speaker Change: And that we received in.
Speaker Change: Two loans that game, but we are working now with our partners and with respect to the second season this year.
Speaker Change: And how much do.
Speaker Change: The unique.
Speaker Change: Or the next season.
Speaker Change: So.
Speaker Change: Yes, we are still waiting to receive additional orders for this year now with respect to when we are delivering this data to our partners.
Speaker Change: Of course, it's very important to deliver on the C series.
Speaker Change: As a specific shift in that.
Speaker Change: Sales are expected to be strong.
Speaker Change: So.
Speaker Change: In NAND and in the retail location.
Speaker Change: And.
Speaker Change: And the good news is that it.
Speaker Change: When we receive the order density for could you have this data. So now we just stay disciplined.
Speaker Change: And next quarter.
Speaker Change: Inventory and gave us we're receiving the orders during this year.
Speaker Change: The next year.
Speaker Change: You may be able to deliver additional savings.
Speaker Change: <unk> year end.
Speaker Change: Look I was taking all of our build to give us a forecast on how much they believed they would need it.
Speaker Change: Alright.
Speaker Change: For the future our expectation is that again.
Speaker Change: Thanks, so much.
Speaker Change: So I also reflect what's going on in our <unk>.
Speaker Change: Yes.
Speaker Change: Activity in this area.
Speaker Change: But I believe that there is.
Speaker Change: The interest in <unk>.
Speaker Change: Uh huh.
Speaker Change: Is it growing.
Speaker Change: I'm talking about.
Speaker Change: So by then.
Speaker Change: And then oriented.
Speaker Change: Yes.
Speaker Change: We see them.
Speaker Change: Nice Indeed yesterday morning, Brazil, David Rockwell ahead, rather than in Africa, and we are now and I think I mentioned it in my presentation is where we're spending our marketing of <unk> in Brazil.
Speaker Change: So what we have what we've done already.
Speaker Change: Okay.
Speaker Change: No that's exactly our intention and our statements we made this past year.
Speaker Change: And we started.
Speaker Change: Well, what do we see the demand for capital.
Speaker Change: In his yields actually.
Speaker Change: We hear from more and more of a.
Speaker Change: Company.
Speaker Change: Crash.
Speaker Change: Pastel grade below the layout, we aim to buy every quantity evaluable.
Speaker Change: But the demand for oil.
Speaker Change: Much module.