Odd-Geir Lyngstad: Today's presentation. Good morning, and welcome to the Q3 results presentation for Elkem, and also the capital markets update. My name is Oddgeir Lyngstad, and I am responsible for investor relations. Today's event will be split into two sections. First, we will start with the Q3 results presentation, and then we will continue with the capital markets update. We will have one Q&A session after the Q3 presentation, and then one after the capital markets update.
Odd-Geir Lyngstad: To take us through today's presentations and start with the Q3 presentation, we have CEO Dag Teigland and CFO Morten Viga. For the capital markets update, we will also be joined by the senior vice presidents for each of the three divisions. We have Luiz Simão representing Elkem Silicon, Inge Grubben-Strømnes from Elkem Foundry Alloys, and Izaias Entringer from Elkem Carbon.
Odd-Geir Lyngstad: They will be introduced in more detail later. Let's move on to the agenda items for the Q3 presentation. As usual, we will go through the highlights for the quarter and give a business update. This will be followed by a market update and the outlook for the Q4. CEO Dag Teigland will take us through these agenda items. CFO Morten Viga will then take us through the Q3 results. As mentioned, we will open for Q&A after Dag and Morten's presentations.
Odd-Geir Lyngstad: We plan to continue with the Q3 presentation until around 9:45 AM, and we will then take a short break and start the CMU at 10:00 AM sharp. With that, I will give the word to CEO Dag Teigland.
Dag Teigland: Thank you, Oddgeir, and good morning to everyone. I am very happy to see such a great physical attendance today. In particular, since this is my first quarterly presentation for Elkem. It is really a privilege to take the helm at Elkem, not only because it is such a company with such a proud and long industrial history, but also because of the very motivated and highly competent organization. I am really looking forward to what we can accomplish together.
Dag Teigland: When it comes to the Q3, I think the best way to characterize the quarter is robust financial performance amid challenging markets. Elkem Foundry Alloys and Elkem Carbon delivered solid financial results due to their strong market positions. The foundry alloys performance improved slightly, both compared to the previous quarter and the corresponding quarter last year.
Dag Teigland: Elkem Carbon reported the best results since Q3 last year, with certain regions showing signs of improvement. The Elkem Silicon division was impacted by continued weak markets and low sales prices for both silicon and ferrosilicon. In September, Elkem finally received the 1.3 million additional free emission allowances for 2021 to 2025. For 2026 to 2030, our plants in Norway will receive allocations in line with the industry in Europe.
Dag Teigland: This is very important to secure a competitive and predictable framework, conditions, and a level playing field. Let me start out with saying a few words about ESG. The safety of our people is the number one priority in Elkem. We want every employee to have a safe and good working environment. We are not very happy with the injury rate level we are at for the moment, but the development is going in the right direction.
Dag Teigland: We will continue to work systematically to improve our performance. The target is, and always will be zero injuries. We also have clear and ambitious goals for reducing our CO2 emissions. Our efforts to reduce emissions starts from a very good level, as Elkem's CO2 footprint is less than 35% of the global average for silicon production. This is supported by renewable energy recovery at several of our plants, and the use of bioreductants. As part of Elkem's strategic update, we concluded to retain our target of reducing CO2 emissions by 25% by 2030.
Dag Teigland: Our long-term ambition is to reach net zero by 2050. However, these ambitions are challenging and will depend on the regulatory environment. The ambitions will also have to be financially sustainable. In addition to reducing our own emissions, Elkem's products and solutions are important to help others reduce their CO2 emissions.
Dag Teigland: We have many initiatives ongoing within this area. In Q3, Elkem Carbon and Danieli Corus signed an agreement where the aim is to reduce greenhouse gas emissions from steel production. By developing solutions to increase the share of recycled steel in the production process, CO2 emissions could be reduced by up to 20%. As announced in Q3, we are strengthening the long-term competitiveness at Elkem Rana by investing NOK 260 million to renew the furnace. The investment includes replacement of one of Elkem Rana's two furnaces and its off-gas equipment.
Dag Teigland: The furnace is at the end of life and is already causing production issues. The upgraded furnace will incorporate the latest proven technology, enhancing operational reliability, process control, and energy efficiency. This will secure continued safe and cost-efficient production at the plant.
Dag Teigland: The new furnace will also facilitate increased use of biocarbon and reduce fossil CO2 emissions in line with Elkem's climate ambitions. The installation is scheduled to start in Q1 2027 and will last three to four months. Elkem Rana's second furnace will operate as normal during the period. In September, Elkem received the 1.3 million long awaited additional free emission allowances under the EU ETS scheme for the period 2021 and 2025. The allocation follows the Norwegian Ministry of Climate and Environment's conclusion in 25 July, that Norwegian silicon, ferrosilicon, and manganese producers were unequally treated compared to EU producers. In addition, the plants in Norway have received confirmation that future allowances will be in line with comparable industry in the EU. This is very important to secure competitive and predictable framework conditions.
Dag Teigland: By the end of September 2026, Elkem had approximately 1.3 million allowances available for sale. The allowances are carried at zero value, while the estimated fair value is around NOK 1.2 billion. The plan is to sell these allowances over time as a normal part of our operations. Elkem Iceland was placed under strategic review in Q2 of this year due to consistently weak financial performance caused by the extremely challenging markets and a structurally higher cost base than our Norwegian plants. Under this strategic review, all alternatives were evaluated to secure long-term profitable operations. In October, Elkem Iceland entered into a new power purchase agreement. The contract will secure long-term electricity supply at competitive terms and increase the plant's operational flexibility. The agreement runs from 2026 to 2029 and covers a volume of 127 megawatts, which is approximately 1,035 gigawatt hours per year.
Dag Teigland: The contract will significantly improve the plant's strategic attractiveness, but the strategic review will continue as additional measures will be required to restore profitability to an acceptable level. In addition to Elkem Iceland, the retained assets from the silicones divestment are classified as discontinued operations. We will give you a very quick status of these assets. First of all, Elkem Silicon, which is the plant in Roussillon, France, remains under strategic review. The plant has a take-or-pay contract with Bluestar for 50,000 tonnes of siloxane per year until 2031. In addition, the plant has entered a strategic partnership with US-based Milliken, which will position the plant for sales into the US market. The plant is well-positioned as one of only two remaining upstream silicon producers in the EU. The plant has a strong organization and currently a good operational performance with positive financial results.
Dag Teigland: In the middle, Silicones India consists of a very small downstream plant. Also, this asset is well-positioned with local customer base. The organization is strong and the operational performance is also good. When it comes to Yongdeng Silicon in China, this plant was closed in 2025. We have a sales process ongoing for the remaining assets, and we expect to conclude the sale. The sales process will, however, be fairly modest, reflecting that the plant is already closed. We continue our efforts to find the best possible solution for all of these assets, but cannot give an exact timeframe for when this can be concluded. Until further notice, these assets will therefore remain under strategic review. We will now continue with an update on the main markets that affect Elkem. The overall market conditions are challenging, but the development is somewhat mixed depending on the sector.
Dag Teigland: There are signs that industrial momentum is improving, but construction certainly remains weak. In automotive, there are signs of stabilization, but with regional differences. The EU is about to implement measures to limit Chinese hybrid imports. This could ease the competitive pressure and support a modestly improved outlook in Europe. In addition, rising European defense spending creates new opportunities across industrial and automotive supply chains. When it comes to construction, the activity remains weak. The Eurozone PMI stands at 43.4, which signals a continued contraction. Residential construction is particularly challenging, while AI and data center infrastructure are bright spots and remain key growth areas. The manufacturing activity in Europe has shown some signs of improvement, with Germany as the bright spot. Steel and aluminum production are important demand drivers for Elkem Silicon, ferrosilicon, foundry alloys, and carbon products.
Dag Teigland: Steel production in Q3 reflected a normal seasonal decline, with volumes at the level with the same quarters in the previous years. Still, European and global steel production are well below the 2021 level, which has been used as the base in this graph. Steel production in the EU is expected to increase following the implementation of the Carbon Border Adjustment Mechanism from 26 January, and stronger EU steel safeguards from July this year. Aluminum production has shown a positive development in Europe despite relatively weak demand. The Middle East conflict is disrupting supply and logistics, reducing exports to Europe and global markets. Let us take a look at the silicon and ferrosilicon markets. The overall picture is that silicon prices have increased modestly from historic low levels, while the safeguard for ferrosilicon in the EU has so far not had any significant impact on the prices.
Dag Teigland: The reference prices for silicon, here illustrated by the 553 quality, improved modestly in the EU in Q3. Prices have continued to rise marginally early in Q4, mainly because buyers in the EU increasingly prefer to source European material. Prices are, however, still at a very low level. In the US, on the other side, silicon prices have continued to rise due to tight supply and low inventories. Ferrosilicon prices in the EU were marginally down in Q3. We have yet to see any material impact from the safeguard measures that the EU implemented last year. In the US, ferrosilicon prices remained stable in Q3, and market conditions are expected to improve further. The Chinese silicon market is also important, as the persistent oversupply gives a continued downward pressure on reference prices in the EU.
Dag Teigland: The silicon prices in China remain at record low levels as price recovery continues to be hampered by oversupply and high stock levels. So far, higher domestic coal prices and higher electricity prices after the wet season have not yet resulted in an increase in silicon prices. Weak domestic demand in China puts pressure on exports, and China's global silicon exports rose with 4% so far this year. The silicones market, here referred by the DMC prices, is a key indicator as it is an important part of the silicon-based value chain. Also, this industry suffers from Chinese overcapacity. During Q3, the DMC prices in China have shown significant fluctuations. First, a steep decline in the prices, followed quickly by a recovery after very effective price management initiatives by the Chinese industry.
Dag Teigland: As already mentioned, the industry in the EU is suffering from competition from low-priced imports and unfair competition. Protective measures are therefore gaining momentum. This is important to Elkem as more than 75% of our sale from Norway and Iceland go to the EU. For silicon, the European Commission has now initiated an interim review of the anti-dumping duties on imports from China. The interim review will examine whether the current duties of 16.8% are sufficient, as Chinese oversupply put the downward pressure on prices, which adversely affect European producers. Now, most recently, on 23 October, the Commission also implemented registration of silicon imports originating in China. This decision could have an immediate impact on our markets, as importers may accrue potential liability if the ADD rate should be increased with retroactive effect. The investigation is expected to conclude within 12 months.
Dag Teigland: On ferrosilicon, the EU has renewed the anti-dumping duties on imports from China and Russia for another five years due to risk of renewed dumping. Chinese producers face a general anti-dumping duty of 31.2%, while the rate for Russian producers is 22.7%. Other protective measures in the EU, which are relevant to our industry, includes EU's Clean Industrial Deal and the Carbon Border Adjustment Mechanism, which aims to secure preferential treatment and a more level playing field for producers in Europe. The new safeguards for steel are aimed at increasing European steel production. A new proposal to limit the number of hybrid electric vehicles imported from China to 350,000 cars per year, potentially cutting the Chinese market share in half. Based on the recent market developments as presented, we will quickly go through the outlook for Q4.
Dag Teigland: First of all, Elkem's cost reduction program will continue to contribute positively to the results going forward. We have seen a modest increase in silicon prices in Q3, and prices have continued to rise marginally in Q4. This will not have much impact in Q4 due to time lag. The expectations for the Q4 results for silicon remain stable, while further price normalization strengthen the outlook for 2027. For foundry alloys, a stable result is anticipated, with seasonally lower sales expected towards the end of the year. The signs of recovery for carbon in certain markets point to a modest improvement in Q4. Going forward, the new protective measures in the EU are expected to improve market conditions ahead, although the exact timing and magnitude is uncertain. With this, Morten, I will pass it to you.
Morten Viga: Thank you very much, Dag, and good morning, everybody. I am pleased to go through the results for Q3 in more detail. Clearly, the markets are still challenging, but as you will see, we continue to deliver somewhat improved EBITDA compared to the previous quarter, and that is good. We now report on three segments, Elkem Carbon and Elkem Foundry Alloys, which are the specialty business segments and deliver stable EBITDA margins at a good level. While clearly the Elkem Silicon EBITDA margin is still hampered by low silicon and ferrosilicon prices. Please note that the Elkem Iceland and also our chemicals operations in Roussillon in France are classified as discontinued operations and are not included in the revenue and EBITDA numbers. Elkem's operating income for the quarter was NOK 3.6 billion, which was down 2% compared to Q3 last year.
Morten Viga: This is mainly explained by lower sales prices. The EBITDA amounted to NOK 554 million, which was down 14% from Q3 last year. The EBITDA margin for the quarter was 15%, supported by good and stable margins in Elkem Foundry Alloys, Elkem Carbon, and the materials segment within, or materials business line within the silicon division. As always, we have provided a summary of main financial numbers and ratios. I will not go through everything in detail, but the main takeaways are, first of all, as I said, the EBITDA was NOK 554 million, and this include realized effects from the currency hedging programs of NOK 38 million due to a stronger NOK. Other items amounted to NOK 111 million and consisted of gains on power and currency derivatives of NOK 169 million, currency losses of NOK 49 million, and other items of -NOK 9 million.
Morten Viga: The net finance income was NOK 225 million. This consists of net interest expenses of -NOK 80 million, currency gains of NOK 314 million due to stronger NOK, and net other financial items of -NOK 8 million. The income from tax was -NOK 139 million, which represents an effective tax rate of 24%. Net profit for the period was NOK 319 million, which was an improvement from NOK 29 million in Q3 last year. Let us take a look at the divisions. As previously mentioned, Elkem has changed the reporting structure and split the former Silicon Products division into Elkem Silicon and Elkem Foundry Alloys. We will get back to more details in the CMU presentations, but generally, silicon contains the commodity segments, silicon and ferrosilicon, while Elkem Foundry Alloys consists of a very specialized product offering.
Morten Viga: Elkem Silicon continued to be very much impacted by low sales prices for silicon and ferrosilicon. This is to some extent mitigated by strong performance in the materials segment, which includes our Microsilica products. We have very strong positions within the materials and Microsilica product lines, and here the prices are not linked to market reference prices, but based on more individual negotiations based on a CVM methodology. Total operating income for Elkem Silicon for the quarter was NOK 2,142 million. That was down 9% from Q3 last year. This reduction is mainly driven by lower sales prices for silicon and ferrosilicon, but also by currency effects due to a stronger NOK. The EBITDA amounted to NOK 127 million, and this was down 43% from Q3 last year, but it was an improvement from the previous quarters this year.
Morten Viga: The reduction from Q3 last year is mainly due to lower commodity sales prices and negative currency effects. The effects from our previously announced cost reduction program has partly offset this negative impact. As previously mentioned, good results from materials and Microsilica are contributing positively to the result for the quarter. The sales volume was generally in line with Q3 last year. Please note that the reported sales volume does not include materials or Microsilica, it is silicon and ferrosilicon. Elkem Foundry Alloys is a very good business segment, and it improved its financial performance despite challenging markets. In Q3, the division accounted for 26% of total income on the group and 43% of the group's EBITDA. Total operating income was NOK 1,056 million, and this was up 5% from Q3 last year.
Morten Viga: The increase in total operating income is mainly driven by positive volume and sales mix effects. The EBITDA was NOK 235 million in the quarter, which was up 7% from Q3 last year. The improvement is explained by positive volume and sales mix effects. This is, however, partly offset by negative currency effects and also somewhat higher raw material prices. Foundry Alloys, as I said, has very strong market position, and this has enabled a high capacity utilization and stable and good sales volumes. Our Carbon business is still experiencing challenging markets, but we see signs of improvement. The division now in Q3 accounted for 20% of the group's total income and 34% of the group's EBITDA. The reported operating income for the quarter was NOK 782 million, which was down 5% compared to Q3 last year.
Morten Viga: This is also mainly driven by lower average sales prices and negative currency effects. The EBITDA amounted to NOK 183 million, which is down 21% from Q3 last year, impacted by lower average sales prices and also somewhat higher raw material costs. The overall sales volume is in line with Q3 last year. Let us take a closer look at Elkem's key financial ratios. The EPS earnings per share amounted to NOK 0.87 in Q3 2026, and the improvement is largely driven by currency gains in other items and financial items. However, it is also important to bear in mind that the weak performance that we reported in Q2 was mainly explained by losses in discontinued operations, which also included a fair value adjustment in our Yongdeng operations.
Morten Viga: Our EPS year-to-date is -NOK 1.18 per share, and this number is based on the current number of issued shares, as we find this more relevant than the average number of shares, which include the Bluestar shares which were canceled on 30 April. Total equity as per end of Q3 amounted to NOK 13 billion, and this gives an equity ratio of 45%. The reduction in equity ratio after the first quarter is mainly a reflection of the cancellation of the Bluestar shares. However, we believe that 45% is a very solid equity ratio, and this underlines our very solid financial position. As you know, we have raised new equity, and we have also refinanced a significant portion of our debt in the second quarter. This has certainly provided Elkem with a very strong financing and liquidity position.
Morten Viga: By the end of the third quarter, we had net interest-bearing debt of NOK 6.5 billion, and this gives a leverage ratio of 3.3 times last 12 months EBITDA at the end of third quarter. That is a slight increase from the 3.2 that we had by the end of Q3, just because of the fact that Q3 this year was somewhat weaker than the Q3 last year. A key priority going forward will certainly be to ensure a further reduction in net interest-bearing debt and the corresponding leverage ratio. After the refinancing in the second quarter, we have a very attractive maturity profile on our debt, with all major maturities coming in 2031 and onwards. In addition, we have a very strong cash balance amounting to NOK 5.5 billion, and this means that technically we are able to handle all debt maturities until 2029 with the current cash position.
Morten Viga: Needless to say, we are very comfortable with the financing position and certainly that gives us a very good opportunity for management to fully focus on strategic and operational matters. Our cash flow has improved compared to 2025. In fact, all three quarters this year have been better than the corresponding quarters last year. This has mainly been driven by strong focus on capital allocation and capital improvements. In connection with the first quarter, we communicated a target to improve working capital this year by NOK 1 billion and also to limit reinvestments to NOK 1 billion. The purpose was clearly to improve cash generation and to reduce debt. I am very happy to say that we are delivering on these targets. The cash flow from operations this quarter was NOK 421 billion, and year-to-date it is NOK 1.4 billion.
Morten Viga: By the end of third quarter, Elkem had realized working capital reductions of almost NOK 1 billion for our continued operations. Also our investments, including the reduction that I talked about, have been according to plan. In the third quarter, total investments amounted to NOK 207 million, with reinvestments of NOK 148 million and strategic investments of NOK 58 million. Investments year-to-date amount to NOK 510 million. As I said, we are very pleased to have a good direction to deliver on the investment and working capital reduction targets for the year in total. Let me wrap up this presentation by a couple of main takeaways. First of all, we are very happy to see that Elkem Foundry Alloys and the Carbon divisions maintain good results and good margins, even in a very challenging market sentiment.
Morten Viga: We will certainly get back to the drivers for this in the upcoming CMU presentations. As I said, the Silicon division is clearly more exposed to commodity prices, and that is a tough place to be for the time being. We have seen silicon pricing increasing modestly in Q3, and that is good. We have also seen that prices have continued to rise moderately in the beginning of Q4, and a continued price normalization will certainly improve the outlook for 2027. Elkem Foundry Alloys' specialized business model certainly means that this segment is very well-positioned to continue delivering good results and attractive margins. The same basically applies to Elkem Carbon, where we have very strong market positions and a very good competitive edge.
Morten Viga: I am also happy to say that we have got clarity on the CO2 quota frame conditions in Norway, and that we have received the outstanding emission allowances for the period 2021 to 2025, and that we now have a very good clarity on frame conditions going forward up until 2030. This provides predictability, and it also provides, let us say, fair competition frame conditions versus our European competitors. We also clearly believe that the new protective measures in the EU give rise to optimism with regard to improved market conditions going forward in the EU, as there is now clearly a willingness to take more actions, more specific action to protect European industries from unfair competition. That concludes this presentation, and I am happy to give the word back to Øyvind, who will take us through the Q&A.
Odd-Geir Lyngstad: Thank you for that, Morten. We will then, as I mentioned, open for Q&A session now after the Q3 results. There is a good audience here today, so I would just like to check with the people here today if there are any questions. I expected that, Magnus.
Morten Magnus: Yes. You announced the cost cuts, obviously, earlier this year, I think NOK 600 million, mainly due to staff reductions, as I understand it. Those staff reductions were mostly completed in Q2 was my understanding, at least. Can you share some light on what is the impact from that cost-cutting program in Q3? We do not really see any significant EBITDA change, and prices are slightly up. You also guide for flat results, basically, it seems like in Q4. So, yeah.
Morten Viga: No, I am happy to say that we have delivered on those targets. As a matter of fact, we promised to take down manning by 300 full-time employees. That was corresponding to 10% of the total manpower. We have reduced manpower by 400, so that is very good. That is basically done. We have also taken down total indirect cost by NOK 600 million in line with our targets. You will see that already from Q3, but Q3 is a bit of, let us say, an extraordinary quarter as it is vacation season, both in our own operations and also certainly among our customers. But from Q4, you should see this in our P&L. But of course, this is also when it comes, for instance, to salary. There is, of course, an opposite effect by salary inflation.
Morten Magnus: When you guide for stable quarter in Elkem Silicon, stable results in Elkem Foundry Alloys, marginally higher results in Elkem Carbon for Q4, that is not including then the cost cuts or?
Morten Viga: That is including everything that we see.
Odd-Geir Lyngstad: Okay. Marcus, please.
[Analyst]: Just touching upon the Elkem Carbon margin, which has declined materially over the last couple of years. Of course, steel production has come down, and steel price also come down. Is there any sub-segment within Elkem Carbon or something with the product mix that has changed over the last year? We have also seen margins come down so much. Is there anything, just to think about how we should see the recovery ahead? Is this predominantly an overstock liquidation thing or is there a change in price?
Morten Viga: I think if I can start, you should think about this as a reflection of the very weak market that we have experienced and that we are experiencing. Our main markets are still in the Western world, in the EU and in Americas. 80% of what we produce goes to customers, which then deliver into steel industry. Of course, steel industry has not been a good place to be in the Western world during the last five years, and that is clearly hampering demand for our products. We maintain very high market shares. We have very strong products. I think we have a unique product offering, both offering top-notch quality products, but also technical support that no one else is able to offer.
Morten Viga: But of course, when you have lower volumes, then you also get a lower dilution of the fixed cost, and that is the main driver behind this. We expect that when we will see a normalization in market demand from steel, we should also gradually see a more normalized demand for our products and a gradually improved market. I think on a good spot, since you are mentioning also, let us say, good news, 20% of our Elkem Carbon business goes as ramming paste to the aluminum industry. Here we have certainly seen very good progress. There is a good sentiment in the aluminum industry. We have some unique products that we will get back to later today, and we see that this has been very well received in the market. But also here we see problems in logistics, et cetera.
Morten Viga: A big portion of our customers are in the Middle East, big aluminum smelters. Of course, it is not easy to sell products to the Middle East these days.
Odd-Geir Lyngstad: Any other questions from the audience? You have the chance now. If not, I will take one question that has come in on the. Those following us on the webcast. It is a question on the impact of commodity inflation on profitability in Q3, what will the impact be?
Morten Viga: On commodity?
Odd-Geir Lyngstad: Yeah, I guess it is on raw material and higher raw material prices, how that will affect the profitability in Q3.
Morten Viga: Yeah. I think the main question mark, of course, when it comes to profitability in ferrosilicon and silicon, which are our commodity segments, that is the development and finished good prices. Just to repeat it, today's prices are extremely low. We are significantly lower than the prices that we saw from 2020 to 2025. In real terms, we are at all-time low prices. Then it is good to see that we observe some improvements in silicon and that is highly needed. That is very encouraging. That can also lead to higher ferrosilicon prices because we know that ferrosilicon prices are also under extreme pressure, also due to the fact that there has been a substitution from ferrosilicon to silicon among steel customers. When we see, or if we see more normalized silicon prices, that can be reversed.
Morten Viga: Of course, we also follow the raw material prices, but here we are very well-positioned. We have a fundamental competitive advantage on power cost, and that's the major input factor that remains. We have stable contracts in hydropower while our competitors are facing higher prices. We have our own electrodes, we have our own quartz, and basically, the cost related to reduction agents that follows world market prices. We are not too concerned about that.
Odd-Geir Lyngstad: There are some more questions on the webcast which are more fitting to the strategy or CMU presentation, so I will come back to that later. But one last question before we take a break. There have been discussions on ADD and protective measures and do we have any thoughts or ideas on what the new ADD rate on imports from China could be?
Morten Viga: I do not think we can speculate in that. The most important positive news for us right now is that the commission initiated this registration of all material imported from China. This is a very clear signal that the commission is also considering to introduce more quick reactions rather than waiting all the way until Q3 next year. That's very positive. But I think looking at, one example is the US where the ADD rate is now 140.
Morten Viga: Yeah. In the US it's 140%, but we cannot speculate what it will end up with in Europe.
Odd-Geir Lyngstad: Okay. Thank you to Dag and Morten, and that concludes the presentation for Q3. We will then take a short break, approximately 15 minutes, and start here again at 10:00 sharp. For those following us on the web, please stay tuned and we will start again 10:00 sharp. Thank you.
