Enauta Participacoes SA
BOVESPA:ENAT3
US |
Fubotv Inc
NYSE:FUBO
|
Media
|
|
US |
Bank of America Corp
NYSE:BAC
|
Banking
|
|
US |
Palantir Technologies Inc
NYSE:PLTR
|
Technology
|
|
US |
Uber Technologies Inc
NYSE:UBER
|
Road & Rail
|
|
CN |
NIO Inc
NYSE:NIO
|
Automobiles
|
|
US |
Fluor Corp
NYSE:FLR
|
Construction
|
|
US |
Jacobs Engineering Group Inc
NYSE:J
|
Professional Services
|
|
US |
TopBuild Corp
NYSE:BLD
|
Consumer products
|
|
US |
Abbott Laboratories
NYSE:ABT
|
Health Care
|
|
US |
Chevron Corp
NYSE:CVX
|
Energy
|
|
US |
Occidental Petroleum Corp
NYSE:OXY
|
Energy
|
|
US |
Matrix Service Co
NASDAQ:MTRX
|
Construction
|
|
US |
Automatic Data Processing Inc
NASDAQ:ADP
|
Technology
|
|
US |
Qualcomm Inc
NASDAQ:QCOM
|
Semiconductors
|
|
US |
PayPal Holdings Inc
NASDAQ:PYPL
|
Technology
|
|
US |
Ambarella Inc
NASDAQ:AMBA
|
Semiconductors
|
Utilize notes to systematically review your investment decisions. By reflecting on past outcomes, you can discern effective strategies and identify those that underperformed. This continuous feedback loop enables you to adapt and refine your approach, optimizing for future success.
Each note serves as a learning point, offering insights into your decision-making processes. Over time, you'll accumulate a personalized database of knowledge, enhancing your ability to make informed decisions quickly and effectively.
With a comprehensive record of your investment history at your fingertips, you can compare current opportunities against past experiences. This not only bolsters your confidence but also ensures that each decision is grounded in a well-documented rationale.
Do you really want to delete this note?
This action cannot be undone.
52 Week Range |
14.33
29.68
|
Price Target |
|
We'll email you a reminder when the closing price reaches BRL.
Choose the stock you wish to monitor with a price alert.
Fubotv Inc
NYSE:FUBO
|
US | |
Bank of America Corp
NYSE:BAC
|
US | |
Palantir Technologies Inc
NYSE:PLTR
|
US | |
Uber Technologies Inc
NYSE:UBER
|
US | |
NIO Inc
NYSE:NIO
|
CN | |
Fluor Corp
NYSE:FLR
|
US | |
Jacobs Engineering Group Inc
NYSE:J
|
US | |
TopBuild Corp
NYSE:BLD
|
US | |
Abbott Laboratories
NYSE:ABT
|
US | |
Chevron Corp
NYSE:CVX
|
US | |
Occidental Petroleum Corp
NYSE:OXY
|
US | |
Matrix Service Co
NASDAQ:MTRX
|
US | |
Automatic Data Processing Inc
NASDAQ:ADP
|
US | |
Qualcomm Inc
NASDAQ:QCOM
|
US | |
PayPal Holdings Inc
NASDAQ:PYPL
|
US | |
Ambarella Inc
NASDAQ:AMBA
|
US |
This alert will be permanently deleted.
Good day, everyone. Welcome to Enauta's First Quarter 2022 Earnings Video Conference. My name is Renata Amarante, and I'm the Investor Relations Manager of the company, and I will be the hostess in this event.
Before we begin the presentation, I would like to make some important announcements. This event will be broadcast live with simultaneous translation into English, and the presentation is available for download at the company's IR website as well as here on the webcast platform. After the presentation, we will begin the Q&A session. [Operator Instructions]
Before proceeding, let me mention that forward-looking statements that might be made during this video conference, relative to Enauta's business perspectives, projections and operating and financial goals are based on the beliefs and assumptions of Enauta's management and on information currently available to the company. Forward-looking statements are not a guarantee of performance. They involve risks, uncertainties and assumptions because they relate to future events and therefore, depend on circumstances that may or may not occur. Investors should understand that general economic conditions, industry conditions and other operating factors can significantly affect the future performance of Enauta and can cause results to differ materially from first expressed in such forward-looking statements.
Today with us, we have our CEO, Decio Oddone; Carlos Mastrangelo, COO; and Paula Costa, our CFO and IRO.
Paula, you may begin the presentation. Please go ahead.
Hello. Good day, everyone. Thank you for joining us in this video conference call to discuss Enauta's first quarter '22 results.
Starting with our highlights. The first point to comment is the EBITDAX growth. The company delivered an EBITDAX 250% higher compared to the same period last year due to 3 factors: increased oil production in the Atlanta Field, which was higher year-over-year; and the price adjustment of the gas from Manati; and thirdly, the rise in the price of the brand in the international market, which obviously affects the sale price of the oil from Atlanta. As a result of this EBITDAX, the company posted an operating cash generation of BRL 200 million. The fact that we are a cash-generating company contributes a lot to the ability to fund our new projects, future projects, including the implementation of the Atlanta Full Development System. We ended the quarter with a cash position of $500 million, approximately BRL 2.4 billion, which once again confirms the company's investment capacity.
Since last year, we adopted a cash dollarization policy. This is basically a hedge strategy, aiming to protect our investment capacity because a good part of our future CapEx, most of our future CapEx is also dollarized. So we ended the quarter with almost all our cash, 95% of our cash in dollar packed investments.
Another important point, another important progress we had in the quarter is related to the Full Development System at Atlanta. We approved investments in the Full Development in the end of February of this year. And since then, we started implementing the system. So it bring good news.
Most of the contracts for the Full Development System has been signed, which brings important predictability for the necessary investments, the cost of the project and the time we need to deploy it. Also, this was positive because we were able to sign the contracts before we saw this heat up of the oil and gas industry. So we were able to enjoy very competitive costs for the contracting of services and the purchase of equipment and material.
At the end of April, we had the company's shareholders' meeting where we approved the distribution of dividends of BRL 1.71 per share to be paid to shareholders in the end of the month in May 30. Also in the shareholders meeting, we had another progress in terms of governance. We increased the number of independent board members, had the election of 2 new members. So we currently have 3 independent Board members, almost half of the Board being independent.
In addition to governance, another advance was in sustainability. We had a significant reduction in greenhouse gas emission intensity at the Atlanta Field with more than 20% reduction in emissions over the same period of 2021.
I'll now move to Slide 4 for our operating performance and results. We had a significant increase of 264% in net revenue year-on-year. The factors contributing to this were a favorable market environment for the oil and gas sector with Brent price on the rise; increase of Atlanta's production compared to the previous quarter; and an important share of Manati Field on the back of the price adjustment of gas in January 2022 of around 17%.
Moving to Slide 5. We see our operating costs. I'd like to comment on the company's lifting cost. Lifting cost was affected by lower production in Q1 '22 when compared to Q1 '21, and by the rise in which impacts the diesel cost. On the other hand, I think the company is very much focused on operating efficiency on reducing operating costs. And I believe we've been very successful in that regard.
Along last year and also in the end of Q1, the effect is more seen in the second quarter of 2022, but we were able to further optimize our logistics costs by reducing the number of support vessels. Obviously, without compromising the safety of the project, but seeking to have higher operating efficiency. That reduces not only cost but also emissions of greenhouse gases related to the project.
Moving to our financial results on Slide 6. Again, I'd like to stress the significant growth of EBITDAX, up 250% in the year-on-year comparison which contributes to the company's operating cash generation and clearly to the ability to fund our projects. Commercial appreciation of the Atlanta oil, which is currently sold at a premium in the refinery. I think this helps to boost even further the results of the company.
As to our bottom line, we have this operating bias, which was very positive in the quarter, both for Atlanta Field and Manati Field, but it includes other effects resulting from the company's hedge policy, such as foreign exchange oscillation. In Q1, the dollar was depreciated and the BRL was appreciated by about 15%. The fact that we have a good part of our cash in dollars brings this kind of volatility to our bottom line. If on one hand, we can fulfill our goal of protecting the fundability of the company, our ability to invest. On the other hand, we suffered this impact on our result, this kind of FX volatility.
So our earnings were impacted by foreign exchange variation, but we know that this is a snapshot at the end of the quarter. If we were to look at the dollar price yesterday, it closed yesterday at BRL 5.15. The result would be different. We would have lower depreciation and lower impact of FX variation and most likely a positive net income for the company.
Now moving to the company's strategy. This is our last slide, Slide #7. I think that Enauta's results posted this quarter reflect how the company has been positioned to create value to our shareholders. We want to continue to be a company which is operationally speaking, very efficient with a strong cash generation, which ensures our ability to invest in the future, which ensures our ability to grow the company through investments in Atlanta's Full Development system, which in the future, will drive production revenue, EBITDAX even further. So again, cash generation and our ability to invest. This is a virtuous cycle that we want to create and see looking forward for Enauta.
And the way we want to position ourselves. We want to be positioned strategically in the E&P chain, generating cash in the short term in the most efficient way possible. I believe that the whole optimization of operating costs, the search for efficiency, all of that strengthens Enauta's cash generation in the short term, creating an ability for the company to invest in the midterm. In other words, you use this cash to broaden the company, invest in the full development of Atlanta bringing more revenue, cash and EBITDAX and so on and so forth, leading to a growth cycle for Enauta.
On the other hand, we want to have an exploration portfolio as an additional option to grow, but we want to be very selective here. The idea is that part of the cash generated in the future will be used selectively to invest in exploration and to create another growth driver for the company.
In closing, well, I will turn the floor now to Decio for his final remarks. And then we will start the Q&A session. Again, I would like to thank all of you for participating and say that the company is always available to you through our Investor Relations department. Thank you.
Good morning all of you who are joining us right now. Paula already delivered the general presentation. I would just like to make some comments.
Firstly, there's very good results in EBITDAX in cash generation in the quarter, which is the most important to the company, particularly a company that is investing as we are in Atlanta's Full Development System. Cash generation is the most driving indicator. But this high cash generation is fruit of what is going to happen in the international market, a lot of volatility, a lot of geopolitics and commodity prices.
Over the last few years, we can see that in companies like ours, it brings a positive scenario because restrictions to investment, which happened in the past or refinery shutting down or changes in consumption habits in the pandemic, consumers having more goods than services because they stayed home and the resumption after the pandemic, the lack of wind in Europe early last year that increased the price of natural gas and now the war, this all increased the volatility in the energy market, particularly coal, gas and oil.
And the level of price as well, prices soared. And it became a challenge to the company and consumers because together with the increase in oil prices, we also had an increase in refining margins, unprecedented, over $50 per barrel. And for consumers, the apparent oil price is higher than $100, which is the price of the barrel today. So the shutdown of refineries brought this effect. And today, consumers pay more than $150 per oil equivalent in byproducts.
This whole scenario that we're going through and this pressure on Russia might eventually lead to an increase in oil prices for the coming months. Potentially, there will be an increase in the facts of European sanctions to Russia and a possible return of lockdowns in China and a potential increase that might bring oil prices up. And we have to benefit from this moment as a production company.
Our cash amounts to BRL 500 million, which is quite positive, so we can fund Atlanta development and also pursue further opportunities. Our cash is packed to the dollar and brought this impact on net income like Paula said, but this is very volatile. In 2020, 2021, we had quarters that had significant foreign exchange variance, but now that we have operations denominated into dollars, which is important to the company. Anyway, if we decided to do this work today, the negative result would be reversed. And today, it would be positive. So this volatility has come to stay and we have to be ready and diligent in order not to be damaged by this move.
And the most important for us is to preserve the company's ability to invest in dollars because it's in dollars that we make our moves. The first move or the most important is Atlanta, 4 years of production in the Early Production System. According to the early plan, it should have been discontinued by now. We set this EPS to gather information and we collected very precious information in order to approve a robust full development system.
However, now we are maintaining the Early Production System to generate cash and support the fundability of the company, which is very important to us. Oil was appreciated, production is back. So we did manage to maintain our production to date and we expect to have a certification of the plant, so we can continue by 2024 continuously with no interruption in cash. We want to get into the full development system. And like Paula said, we're very fortunate with the timing of our contracts for FDS. We closed 90% of the agreements with a price last year before the inflation that is ramping today in the industry, owing to the increase in oil prices and also opportunities.
Well, I went to Dubai and I saw some things related to Atlanta, and I was surprised, plenty of good conditions and we started up very well with no surprises in the unit. So we're working hard to converge the FPSO. We already have significant agreements signed. It's hard to contract too early like some support vessels. We could say that the start-up of Atlanta's FDS is doing well.
Our indebtedness is pretty low, net cash. So with that, we have plenty of room to optimize our capital. We are analyzing opportunities and financial funds, both in reals and also in foreign currency in order to fund potential investments in new business. We keep on pursuing and looking at the market -- other assets in the market to diversify our opportunities to invest and diversify our asset base, which is very important for Enauta.
In the shareholders' meeting, we had the approval of significant dividends, dividend yield about 7.5% to shareholders. We pay our shareholders by increasing the price of the share and dividend payout, growth and cash. So over this time frame, we managed to have a very positive return to shareholders, the greatest return in the industry, 75% year-over-year, which is quite positive.
In addition, we also had an important governance move at the company level like Paula said, with the entry of new independent members. One is very experienced in the gas market. The other, very experienced in international markets and M&A. Their contribution will be very valuable to this new phase of Enauta.
To close, I would just like to thank the team, the employees for another quarter delivering results. I thank everybody and out for the quarterly results. And now we'll be here to take your questions.
[Operator Instructions] The first question is from Tacio Vasconcelos with UBS.
Can you hear me well?
Yes, we can hear you. Please go ahead, Tacio.
Great. Let me begin with 2 questions. First question, Decio, do you think you could give us more color on negotiations with Karoon? Is there any sensitive point that is damaging or prices or entries? And what is the idea? Will they immediately get into the early production system after negotiations and then focusing on FDS? We know there is a due diligence period until the filing closing of the deal. So what about the breakdown of investments? Would it be according to each one's share? Or are you considering any payout if the FPSO remains on your side?
And maybe your second part of the question, we know that the end of exclusivity will expire by the end of the month. Do you have a perception of a potential agreement 50-50? Maybe just more to one side or another. Could you give us an update?
And a second question, this time more related to pricing and Atlanta oil. According to our maths in the quarter, pricing was slightly above $120 per barrel. So I wonder if you could give us more color about this dynamic in the quarter and particularly envisaging the future, the rest of the year and particularly 2023, once we have the expiration of Shell agreement. Is Shell interested in extending the contract. Any conversations in this regard? Or would you have to search for new buyers? And what about the conditions you expect to see next year? Should we continue to this $1 discount? Could it be improved? Or should we have a slightly higher discount? These are my questions.
Two questions in between, but anyway, Karoon. The term is up to May 31 to negotiate exclusivity with Karoon. So let us wait and see until we have the end of the deadline. So we can say something about it. It's too early to say anything. With regards to oil prices, this quarter, we had a good price, a good realization price. You mentioned a $1 discount. The discount is lower than $1. We don't disclose the real discount, but it is less than $1. That's for the vessel.
FOB, Free on Board. We don't have to pay any transportation cost in the destination market. As for the future, we're still talking about it, the agreement with Shell is valid until the end of this year because our forecast, when we work on the agreement in the past, was to stop the -- or the Early Production System early 2023.
Now with the potential extension of the Full Development System by 2024, we resumed our conversations with Shell. And as we speak, we are in the middle of these conversations, we might consider to close an agreement with Shell or we might start conversations with other stakeholders who are interested. Atlanta oil is being appreciated. We don't believe there will be a reduction in discount. Quite the opposite, we believe with this oil of this nature, conditions remain positive.
This oil is very interesting when it comes to emissions, low level of emissions. We had a dramatic reduction in remissions this year, CO2, and there is no residue left. Not necessarily it has to be refined. It could even mix with other current and be sold as maritime or bunker and fuel or to generate electricity with no refining. So it's an extremely appreciated oil today, and we expect this appreciation to remain or even become stronger in the future.
We'll move on to the next question. Well did I answer your question?
Yes, yes. The price is very clear. What about Karoon? Any update you can give us at this point?
Let's wait. Let's wait until May 31. And because that's the exclusivity agreement we have with them until then.
Next question by Guilherme Levy with Morgan Stanley.
Hello, everyone. My first question regards the dividend payment process that we had in the last month. We saw that the controlling shareholder made a proposal of distribution, which was much higher than what was suggested by the management of the company. I'd like to understand what led to this different perception regarding the best strategy to use the capital? The management's opinion, the controlling shareholders opinion and perhaps there was an M&A proposal in the different dates. So when the proposals were submitted, perhaps that generated to a different cash vision of the company that could allow perhaps a higher payment of dividends, maybe?
And my second question, I'd like to understand now that a good part of the company's cash is dollarized, wouldn't it make sense in a review to change the functional currency of the company to U.S. dollars?
Guilherme, regarding dividends. We always say that the compensation of our shareholders is given through share performance and dividend payout. The company has had a surplus of cash recently and we have worked to put this money to work. We approved a number of projects. The extension of the Full Development System of Atlanta. And still, the company remains with a robust cash position. That allowed us to have the controlling shareholders' proposal to distribute dividends, which is totally compatible with the company's cash position, with the expectations we have.
If there is any possibility of a deal in the future, we can do it whether we pay the dividends or not. And that is why we approved dividend payout in the shareholders' meeting. Regarding the functional currency dollars, that's something we've been thinking about. We haven't made a decision yet.
And I think I can turn the floor to Paula for her to add something.
Hello, Guilherme. I think that this discussion about the functional currency is a natural discussion, particularly as the Atlanta gains relevance in our portfolio. We still have Manati that generates cash in BRL. We are in the Brazilian economic environment. And as you mentioned, this is a discussion that is ongoing, but we haven't reached a decision yet. It could be an option in the future as dollarized asset gains more relevance, but we haven't made the decision yet, but this is a natural discussion for the company.
Perfect. Thanks.
Next question by [ Carolina Rezzato ].
About Manati. In Europe, it is coming to store natural gas given the seasonality of the weather. What are the challenges for such a project to be implemented at Manati? Regarding Atlanta, Brent price and inflation. Can they delay the Full Development System? Would you be interested in any new asset currently? Or will the company be growing organically?
All right. I was writing down the questions, so I won't forget anything. Manati, Gas Bridge tried to acquire Manati to store natural gas. We even looked into that possibility with them. We've never completed the studies. So it's a possibility, but there are many challenges related to costs of the storage operation in the arbitration that would be entailed in the storage of natural gas and the arbitration that might take place given the volatility of gas prices.
But more important in Manati is its potential to generate cash independently of changing the business model. We had a recent ratification in the end of last year, which increased by 52%, the remaining reserves of Manati. That extends the lifespan of the field until close to the end of the decade if no changes occur to the plan, which ensures us a stable and relevant cash generation in that time frame. You also asked about whether Brent price and inflation can delay Atlanta, FDS?
Yes.
No, on the contrary, the main contracts have been signed. Our level of risk is much lower. The Full Development System has strict control of costs. There's no price risk. We were also very cautious before signing the major contracts for Atlanta, we adopted some measures to accelerate the delivery of the most critical items for the project. For example, before signing the contract through a letter of intent, we acquired some materials coming from China, the Christmas tree, for example. So we brought that forward for the main contracts with low risk, low cost but expecting possible supply issues.
So in the end of last year, we triggered the acquisition process of the main items. So that's all under control. For the moment, we don't see any risk of delays in the project or delays in the supply of goods and services for Atlanta Full Development System. And the Brent price, on the other hand, increases our cash generation, which facilitates our growth looking forward.
Growth. While we continue to grow with the strategic vision that Paula mentioned, 3 pillars: strong cash generation in the short term, midterm growth, short- to mid-term growth with the Full Development System of Atlanta. It is hard to find a project with the characteristics of the full development system at Atlanta. In the transition from EPS to FDS, it will take just 2 years. By 2024, we are going to have a Full Development working in full scheme. It's hard to find this kind of project for a company the size of Enauta.
And then using a part of that cash generated for exploration. Every oil produced today, 1 day, it was discovered. So we can devote a limited part of our cash generation to exploration and considering the company's robust cash position and debt. We continue to pursue M&A opportunities that will allow us to increase production and cash generation in the short term and diversifying our portfolio, which is one of our goals. So with the strong generation of cash in this quarter, it helped us execute this strategy. We continue in that same direction.
[Operator Instructions] The next question is from Christian Audi with Santander.
Good morning. Can you hear me?
Yes, we can hear you.
I have 3 questions. The first question, Decio. Naturally, you've been in this process with Karoon, potentially selling the 50% of Atlanta. At the same time, do you think you managed to continue to pursue M&A opportunities? Or do you want just to settle Atlanta first and only then come back to pursue M&A opportunities? That's the first question. Second question also about M&A, Decio.
Naturally, there was a lot of M&A activities in Brazil for the last couple of years, particularly with Petrobras' asset sales. In your opinion, where are we right now when it comes to the M&A wave in Brazil? 50% over it? I know it's hard to be specific. What I'd like to understand, are we halfway through or at the end of the wave. Naturally Petrobras has already been with many assets. But I would like to understand your vision about where we are right now in this M&A wave.
And then the other question, did you turn back your strategy to focus on oil-producing assets and generating EBITDA. So my question is, why is it that you should continue in exploration rather than focusing 100% in potential acquisitions of assets that are already generating EBITDA and already under production?
Thank you, Christian. Firstly, Karoon. I would answer by using a mathematical expression transaction with Karoon and our search for working on other M&A transactions, these are independent events. They're not directly related to one another. So we don't expect to see or we're not waiting for Karoon's outcome so we can envisage new opportunities. You also asked me about the overview of the M&A context. I recall Churchill's statement back in the second world war when the British stopped to progress in Northern Africa.
They said it was the beginning of the end. What we see in the consolidation process -- I'm sorry, M&A in Brazil, we can see the beginning of the end of the process of the massive sale of Petrobras' assets. But this is far from being the end of the process. We are beginning to see the beginning of a second step, a second stage in which private agents, stakeholders are making moves regardless of Petrobras. There was AMP permanent offer and many companies acquiring assets in the fields that they acquired from Petrobras.
So that was one of the basis of the concept of the permanent offer. Some buyers of Petrobras' assets are pursuing funds in order to pay for the acquisitions. So we might expect to see some partnerships taking place with these players. And maybe in a more intense manner, more consolidation in the Brazilian market. Many companies already listed, others not yet, small companies. And in order to become more relevant in the oil market, scale is an issue.
So we're moving away from this first move with many small companies, and we believe there will be a consolidation, and Enauta wants to be ready for this consolidation phase as a consolidator.
And lastly, also asked us why is it that we remain in exploration since we have the opportunity to buy assets that are already under production. The answer is we already have exploration assets, very low cost in our portfolio. This, at the end of the day, may add significant value under the cost, below the cost. And that's an option for us to do and very few players have it.
So if we think about all our exploration opportunities, if we decide to do nothing in any of our exploration blocks, the cost would be around BRL 300 million. We're speaking of $60 million. So that's the cost of Enauta's exploration portfolio, if we do nothing. So our strategy is very selectively watching the market moves and take a stance. We have 9 blocks altogether in Sergipe-Alagoas, with Murphy and Exxon. We just drilled a well which proved to be another dry well. And Campos Basin was discovered second. So it doesn't mean that Enauta, Murphy and Exxon are going to drill 9 wells. We don't even know if you go for a second well, we're going to analyze the Sergipe and Alagoas first.
And with a last that Enauta drilled was in Carcará, this big discovery, which is now and the first well in Carcará was dry. Only the second one was considered a discovery. So this low-cost opportunity, well, that's an asset for the company. We have blocks in Pará-Maranhão, Foz do Amazonas and Petrobras will start an exploration campaign soon in the same region.
There was a restriction in the past and if Petrobras is successful, our blocks will be appreciated in the end. So these options are very rich to announce this portfolio, which doesn't mean that we are not going to spend a lot of money on this. No, we're not going to burn our cash. I repeat this since I joined the company, we're not going to burn our cash in exploration.
However, some selective exploration, very cautiously, using part of our cash generation might be possible. And if we have the opportunity, and it's attractive to us, we can go for it. That's the third pillar. We see it in our strategy. It's not the priority, but still a pillar.
Priority for us today is to have the extension of the early production system in Atlanta and have an on-time, on-budget FDS in Atlanta. And if you can have an acquisition that increases cash generation in the short term, we might decide to have selective explorations around some acquired assets. So that's the strategy.
Crystal clear, Decio. Just a follow-up question. Coming back to Karoon. What is the purpose? Are you looking for a partner that allows you to divide and share CapEx risk and as a result, managed to derisk Atlanta or Karoon has -- I don't know, maybe has a technology characteristic or something that would add value to you?
For us, the risk of the final development system in Atlanta, the risk is controlled. We don't need technological support in order to run operations in Atlanta. However, it's also nice to diversify risks and release resources and funds to get into a larger number of projects. So conceptually, for a company like Enauta and for most of the companies, the more diversified the portfolio, the better.
So if we have conditions to have a partner in Atlanta, joining at an adequate price level according to the market and generating value for us, that would be adequate to have a partner, an additional shareholder in Atlanta. And if we have an offer that makes sense in the current scenario to bring a partner in, great. Otherwise, we keep on working in Atlanta as we're doing today.
Fundability is enough. We also have technological expertise. We don't need any IT support, not financial support. Only if the transaction allows us to diversify the portfolio, which is one of our goals.
Perfect. I'm sorry. Last question, Decio. You said that you visited Dubai operations. Was there any positive surprise when you visited the asset there? I want Mastrangelo to tell us more about it, but the conservation condition of the FPSO for the year, it was in Indonesia. It was just there. But maintenance that happened over this time frame was surprising. Most equipment were very well greased, protected, good maintenance. Early adaptation was fine. And the first inspection for 2 months now, the first inspections did not bring any negative surprise. Quite the opposite, I think. Mastrangelo can tell us more about it.
That's precisely what you said, Decio. Christian, we did the whole evaluation assessment of the Full Development System. You're not adding new technologies, only conventional technologies that are known by the market.
As for the FPSO, which is the adaptation of an existing unit, the whole design was based on the inspections that we made. Periodic inspections, not a full inspection of the unit only this time in the shipyard. And in the original design in the project, we use margins, possible margins for any possible surprises for an item, an unexpected item.
And once the unit arrived in the shipyard in Dubai, then it was possible to have a thorough inspection of the FPSO status and truly maintenance, the preservation when it was there, idle maintenance was great and brought no negative surprise. Quite the opposite, it only confirmed all the information we had prior to the project.
We are ending the Q&A session. I would like to turn the floor to Decio for his final statements.
Well, we would like to thank all of you for attending this video conference. This was a positive quarter for us. And hopefully, we'll continue to record positive results along the year. So that by year-end, we'll have always a good news for our shareholders. Thank you very much, and I'll see you next time.
And now this video conference has ended. We would like to thank everyone for participating, and we wish you a great rest of the day. Thank you.