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Earnings Call Transcript 2021-Q4

[Euan Shirlaw, executive]

Good morning. I'm Euan Shirlaw, the acting Managing Director and CFO of Noreco. And it's a pleasure to be here today, together with Marianne and Cathrine to tell you more about Noreco's progress during 2021 and also our outlook for 2022 and beyond.

Please do feel free to submit any questions you might have as we go through via the online portal.

Before we start in earnest though, I wanted to give you a flavor of what Noreco represents as a company because we're not your typical E&P.

Firstly, our asset base is entirely non-operated. Total Energies operates the DUC on our behalf. Secondly, our geographic exposure is exclusively in Denmark, a country that's progressing through the energy transition in a way that provides certainty over the future, both our ability to continue producing oil and gas until at least 2042, but also the availability of a wide range of future sustainability-linked opportunities. Finally, we're focused on producing and developing gas resources with a business model that already has significant growth baked in.

Energy security for gas, in particular, is getting ever more attention. And with Tyra, we're doing our bit to help. With Tyra already significantly progressed, we're also not holden to future sanctioning decisions to deliver a field that will transform Noreco once on stream by the middle of 2023.

With that said, let's turn over so I can walk you through how we see the business in terms of recent results, how we're thinking strategically today and our view on the future.

So what is our focus? Well, simply put, we're focused on delivery. That means delivering operationally, where our base business produced 27,500 barrels a day in Q4 2021, at the top end of our annual guidance, and 26,900 barrels a day over 2021 as a whole. Here, we're looking to maximize production, minimize costs and reduce emissions. It also means delivering Tyra, which will unlock over 1 Tcf equivalent of gas resources. And once on stream, the project drives significant production and cash flow growth for us. As already mentioned, it also supports long-term energy security in Denmark. Here, we are progressing the final stages of the project to safely achieve startup as scheduled in mid-2023 on a fully funded basis. It also means delivering our potential through a wide set of long-term, value additive opportunities. In practice, we'll have a disciplined approach to capital allocation, prioritizing shareholder returns and measuring future investments against the extent to which they support our overarching objective of maximizing volume.

The bottom line is that the next 12 months will see us demonstrate significant progress against these objectives and ultimately allow us to deliver the Noreco of tomorrow. All of which will be built upon a strong operational base.

I'll hand you over to Marianne shortly, our EVP of Upstream, to take you through in more detail. But firstly, I wanted to share my observations on how we best achieve our objectives.

As you may already know, I joined Noreco as CFO in 2019 and became Managing Director on an acting basis at the end of 2021. I've seen firsthand Noreco's evolution since completing the DUC acquisition more than 2.5 years ago. And with that history, I've seen what we do well and where we can further improve by sharpening our focus.

The operational methodology we want to employ can be broadly categorized into 3 key themes. We don't need to be all things to all people. What we need to do is concentrate our activities for our expertise and knowledge of the DUC are of most use. Practically, this means where they can be constructively and persuasively used to support the operator in maximizing production, maximizing productivity and maximizing efficiency.

We also don't want to rely on others to deliver our value proposition. What we need to do is recognize that well-known operated, we are independent. We have control over our own destiny, and we need to Use it. Valuable opportunities, like Halfdan North and Valdemar Bo South, are good examples where we need to position ourselves to deliver these in the way that best suits us and our objectives. That said, we don't want our wide opportunity set to dilute our focus. What we need to be is disciplined in how we allocate capital. Our primary focus post Tyra first gas is maximizing free cash flow generation and prioritizing shareholder returns. Beyond that, we'll be held accountable for taking decisions to support the longevity of our profile and also the extent to which we create value for our shareholders.

I appreciate this might also in a little high level, but it is important because it's the set of principles that guide how we as an organization act on a day-to-day basis. And why is it important? Well, it's important because having a clear operational methodology will ensure our current strong performance continues into 2022 and beyond, and that ultimately, we deliver on our promises.

It's frankly impossible to consider the outlook for Noreco over the next 18 months without focusing on Tyra, the project which has been at the heart of our growth story since we closed the Shell acquisition in 2019. Tyra is predominantly a redevelopment of topsides, and as such, is relatively low risk. The reservoir is well understood. It has a long history of previous production, and the wells are already drilled. The projects advanced significantly since FID in 2017 to the point today where significant milestones have already been achieved. Material further progress like all remaining yard sale aways will happen in 2022. And this will culminate in mid-2023 when we will have new state-of-the-art facilities, with an outlook of production to 2042 that is only constrained by our current license expiry. So as we get closer to first gas, let's not forget how much of a step change the project will be for us once on stream.

For Noreco, it will result in an almost doubling of production to roughly 50,000 barrels a day and significantly increase our gas weighting. This will also lead to a material reduction in operating cost and emissions and material free cash flow generation.

Tyra is very much a game changer for Noreco. And the project -- and the progress made to date brings us just around the corner from delivering the finished product. And while it does make sense today for discussions to be Tyra-focused, it's also important to remember that we have extensive organic potential remaining within our portfolio that will help us define our future.

First and foremost, once Tyra's on stream, we'll prioritize shareholder returns. And this will be delivered through a material and sustainable distribution profile. We'll communicate more on that in due course. But the principle should be clear for everyone. Whether through dividends or buybacks, rewarding the shareholders who have seen us through the Tyra redevelopment project is front and center in our minds. We do though also have an eye to the future. We'll continue to look to create long-term value through recovering as much of the economic DUC resources as we can. And economic is really the key word here. Our focus is very much on value over volume, and certainly not the other way around. In practice, this means we'll review opportunities in our existing portfolio as they become available. And we'll look to progress those that firstly meet our criteria of enhancing shareholder value and our long-term free cash flow profile. However, they also have to be executed within our set framework: maintaining a strong balance sheet and having a material and sustainable distribution profile going forward.

Cathrine will talk more in detail about our contribution to the energy transition, but I wanted to firstly highlight a couple of points upfront.

By developing Tyra at a time when few other E&Ps have progressed a project of this scale, we've helped safeguard access to reliable and affordable energy in Denmark. It's important because as we look to successfully move down the energy transition pathway, we must recognize that the need for gas is not going away anytime soon. So we see our job as to produce these volumes while they still required with the lowest emissions possible.

Tyra is the first step for us. The modern facilities and approach will result in a significant emissions reduction on a per unit basis, but we can and will do more. We're actively pursuing further reduction opportunities. And our commitment here is demonstrated through the linkage of these goals to the margin payable under our RBL facility.

We're also actively considering longer-term sustainability-linked opportunities. The concept study for CCS in the DUC Bifrost is underway. While still early stage, it has the potential to be an important part of Noreco's business in the future. But it needs to be right for us, both from a capability and a capital structure perspective. Our focus today is doing what we can to ensure we end up with an actionable proposition that is indeed fit for purpose.

Funding is key to all of these topics. And ultimately, it's our capital structure that will enable us to deliver going forward, whether we're talking about distributions or investments.

We'll continue to seek to have a strong balance sheet, and we have inherent deleveraging once Tyra's on stream. Beyond that, we'll look to keep within our 2x net debt-to-EBITDA construct. All in all, we're exiting 2021 with an exciting 18 months ahead , where we expect to continue to deliver strong underlying performance and significant progress on Tyra. Both of which will support the transition of Noreco into a material cash flow generator from 2023 onwards.

With that, I'd like to hand you over to Marianne, who I'm extremely pleased to introduce as our EVP Upstream, having joined at the start of 2022 and leading our operational activities. Marianne joins us from Shell with an abundance of non-operated and projects experience. Both of which would fit our business very well. She's also a quick study and is fully up to speed with our recent activities. So I look forward to her taking you through our recent operational performance and the outlook for 2022 and beyond.

[Marianne Lie, executive]

Thank you for that introduction, Euan. It's great to be on seat and being part of the Noreco team.

Our portfolio is high quality, with a lot of opportunities remaining. Tyra is the key one we're focusing on right now. But beyond Tyra, we also have some very interesting development opportunities that can provide a good return on capital and keep Tyra running for decades.

The Noreco operations team is very strong, with a lot of years of experience from the DUC assets and in the joint venture, Noreco staff often provides the continuity and can bring up valuable learnings from prior years. This is also a very exciting time to be joining Noreco with the transition that we are going through. Right now, our portfolio is weighted towards late-life oil and with high operation cost and emissions. With Tyra, we will see a significant shift towards more gas, new facilities with lower operating cost and a significant reduction of emissions. And this fits very well with the Danish society's expectation of us.

Coming in with experience from late-life fields on the U.K. Continental Shelf, I am quite impressed with the safety and the operational performance and how our operator Total is running these mature assets on a day-to-day basis.

I'm also very pleased to tell you that we came in at the higher end of our production guiding for 2021, with a strong production in the fourth quarter.

Starting with safety. We have seen a significant reduction in the number of HSE incidents through 2021. We also see a good focus on maintenance of safety critical equipment, which is also production critical equipment. We have a backlog of 13,000 hours, and that is a very healthy number. I'm used to seeing at least an order of magnitude higher. I believe that this is what has delivered the improvement in uptime, and the uptime of 94% seen in December is a result of this focus. We have also been successful in accelerating well interventions by prioritizing activities that add production.

We also had excellent subsurface outcomes for our interventions, both on Halfdan and Dan. We do a chemical treatment of all wells on Gorm at regular intervals to reduce blockage that is gradually building up in the wells. This time, we slightly changed our recipe and managed to increase the gains on all 11 wells, so another good win.

Our focus going into 2022 is obviously to continue this excellent performance, with high uptime and good production additions from well interventions.

Our production guidance for 2022 is the range between 23,500 and 25,500 barrels of oil equivalents. This corresponds to a decline of around 9%, which is good for offshore fields in late life. In addition to the Noble Sam Turner rig, we will also have the Maersk Reacher from the middle of the year, which means that we have more opportunity for well work and also bed space to continue the important work on maintenance of critical equipment. We're also working with a longer-term outlook. And our subsurface team is using their expertise to identify the highest value opportunities, with the objective of getting these into the plan and budget for 2023. As mentioned, the Noreco subsurface team have many years' experience from these assets and have a lot to offer, in particular, on the water flooding.

Our team is working on total direct the injection water where it's needed most. We had to shut off water, ensuring we get maximum oil production and reduced water production, which is also helping on fuel consumption and emissions. We have targeted Halfdan as the field with most potential in this area. So we have high hopes that our team will be able to mature some good opportunities that will make it into the plan.

In 2022, we also plan to further mature 2 smaller incremental projects Harald East, Middle Jurassic and Svend reinstatement, which will also help to reduce the natural decline of production that we are experiences. These are single well projects, with time from investment decision to first oil or gas of less than 2 years and a very healthy return on investment towards the 40% mark.

I'll now move on to the big one, Tyra. As mentioned by Euan in his introduction, the Tyra redevelopment project is transformational for Noreco and for the Danish Underground Consortium.

So the Tyra redevelopment is the true mega project, with removal and recycling of 9 old offshore installations that's been in place since the 1970s. 8 new platforms to be constructed and installed. We have construction in Italy, in Singapore and Indonesia, and are using Danish yards for the recycling of the old platform.

In previous jobs, I have been working on several megaprojects. I was leading BG's work on the Knoll FPSO in Norway, which was constructed in Korea and onstream in 2014. I've also followed Shell's Penguins project, still under construction in China, and BP's Clear Ridge project in the U.K., which came on stream in 2018.

I recognize the discussions we're having at Tyra right now. How to ensure the construction yards are motivated to deliver a 100% complete product at sell away and not losing their motivation towards the end when they have new clients they also need to attend to. The good thing about Tyra is that Total is a major operator, with a large portfolio of current and future projects that the contractors are very keen to be awarded. The offshore phase with hookup and commissioning is also critical. Bed space is so important. Do we need another flotel for bed space? Do we have enough workers? How to optimize the permitter work system? This is an area where Noreco has a lot of experience from older projects. And we will work with the operator to ensure that we have a realistic and efficient plan for this critical phase.

Another special thing about Tyra is that the subsurface risk is very low. We are using existing wells that have been suspended since we ended production in 2019. And on the production side, we actually have a little bit of upside as we assume that the wells will produce at the same rate as when we shut them in. However, we do expect the reservoir to recharge during the 4 years pause so we could get some nice additional flush production during the first year we are on stream.

So I'll now recap how the Tyra redevelopment project will transform the Noreco portfolio.

In line with expectations of the Danish Society, Tyra will contribute to Danish energy security, providing much needed gas for wholesale consumption and replacing gas from Germany. Our portfolio will shift from late-life oil with high unit production cost and emissions to state-of-the-art gas production facilities, with lower unit production costs and reducing the greenhouse gas intensity with around 50% from our operations.

Tyra Onstream will also open up a lot of field development opportunities. We are aiming to keep a stable production level around 50,000 barrels of oil equivalents per day going forward. And we will also face CapEx and prioritize the high-margin projects to ensure that we can deliver a healthy dividend to our investors while continuing to invest.

From the start of the project, with an investment decision taking in 2017, we are now approaching the home stretch. With the 6-year duration of the project, we are now entering our last year of this project, with first gas expected June next year. Demolition of old facilities is going well and almost finished, with an impressive recycling rate of 98%. Of the 8 new installations, we have installed the 3 Tyra East wellhead and riser platforms. The 3 Tyra West wellhead and riser platforms arrived in Rotterdam yesterday morning, 6:30, and are going out to the field in April. Our 7th platform, the accommodation module will leave Ravenna in Italy on the 6th of March and arrive at the offshore location also in April for a joint campaign with the Tyra West platforms. The 8th platform, the TG processing module, is scheduled to depart from Indonesia in the third quarter this year, and will move straight to the offshore location for hookup and commissioning.

I'm now pleased to show you some progress photos. These photos were taken last month at the Sembcorp Marine yard in Singapore when the 3 Tyra West platforms left the yard. We are really pleased with the Sembcorp efforts on Tyra West. We have something called punch list, which is a list of stuff that still needs to be completed after quality control. It's very normal to have some hundred or even 1,000 items to be completed. With Sembcorp, we actually arrived at 0 actions required from Sembcorp, which is a great achievement. They have also delivered all the documentation already. So with respect to platforms, I would say that we are 6 done and 2 to go.

And what you're seeing here is the accommodation model in Ravenna, which is also in very good shape. The site team is working well with the yard, Rosette, to tick off punch list items and reduce the amount of carryover. 3 weeks ago, we estimated 28,000 hours to be taken offshore at Sailaway. 3 weeks later, the team has reduced this to 19,000 through excellent cooperation with the yard. With the world opening up again, we are also able to travel to the Sailaway of well celebration on the 25th of February. And I'm really looking forward to be able to take a look at this very impressive accommodation model before it goes offshore.

The TEG, which is the processing module, is less complete than the other platform. We are on plan with mechanical completion, that is the building, but without the testing, and we are at 90% there. However, there is still a lot of testing, we call it pre-commissioning, to be done before we can declare that the module is complete and ready to go to the offshore location. We will be using overtime and to Sailaway in 3Q to ensure we complete as much as possible before going offshore. But we do expect some carryover work to be done after hookup for this one.

Let's move on to cost. This chart is showing 100% cost in Danish kroner, so DKK 22 billion growth corresponds to around $1.3 billion net to Noreco. Based on our own evaluation, Noreco has carried a cost estimate around DKK 1 billion higher than the operator. Most of the expenditure on the project have already been incurred. DKK 5 billion or $290 million Noreco net is left, which is less than 1/4 of total cost.

I would now like to look beyond the Tyra redevelopment project. So what is next after we have delivered Tyra?

So as mentioned earlier, we have a very good portfolio of development opportunity to go after when we have Tyra on stream. Our intention is to keep a production level of 50,000 barrels of oil equivalents per day. I would say it's very rare to find this amount of fully discovered and economically healthy development projects in such a mature area as the DUC. We have the luxury of picking and choosing to build a good sequence of future field developments. Some of these developments have already been worked off in detail.

Halfdan North and Valdemor Bo South are 2 good examples of the fields that we have already discovered within our concession area. Both these developments are medium-sized and require a new jacket installation and 5 and 9 wells to be drilled. We have other developments like Ada, not mentioned here that require some more maturation work before we can submit a development plan, but with even higher upside potential. These 2 are fully worked up and ready to go. However, we need to find the optimum timing with respect to available capacity and CapEx phasing. We are discussing the timing of these with our partners, Total and Nordsofonden.

So with this very exciting outlook, I'm very happy to hand over to Cathrine. You know Cathrine as our EVP, Investor Relations. She has now in addition also taking on the very important role as EVP ESG, and she will present our ESG strategy now.

[Cathrine Torgersen, executive]

Thank you so much, Marianne.

I will now take you through our sustainability approach and talk about how we see Noreco's role in the energy transition.

Before I do that, I want to give an overview of the geopolitical backdrop in Denmark and how it is not only placing the country in the forefront of the transition, but also creating exciting opportunities for companies like Noreco.

Just like Norway, Denmark has from the early days acknowledged the climate challenges and has also taken responsibility by playing an active role as a nation. Achieving the goals of the 2020 Climate Act is an overarching theme for the policymakers. And the industry-specific 2015 North Sea agreement was announced about a year ago as an extension of this.

The detail that probably received the most attention globally was that Denmark will stop producing oil and gas by 2050. It's important to note that our license expires 8 years prior to this in 2042, and as such, were not impacted by the stop date. And more importantly, the North Sea agreement has provided stability and predictability for our future as an oil and gas producer.

And for the next 20 years, we will continue to be committed to maximizing the recovery of the resources in the ground and deliver profitable barrels with the low CO2 footprint achievable. We do this today with our already producing assets. We do it next year by bringing on the gas producing hub Tyra. And we will continue to do so in the future by further developing our low-CapEx, high-value 2C resources.

As clearly stated by the Danish government last year, in order for Denmark to reach their climate targets, we will need a well-functioning CCS industry at the national level. Carbon storage will be key, both onshore and offshore. As the second largest oil and gas producer in the Danish North Sea, Noreco owns significant infrastructure that could potentially be used for both storing and transporting CO2 in the future.

Our participation in Project Bifrost, which I will speak a bit more about later, is the first tangible step taken by Noreco to potentially extend the lifetime of our offshore facilities beyond 2050 and contribute to developing Denmark as a CCS hub. For that to happen, it's important with the cooperation between the industry and the government. Through our own dialogue with the government and other industry players, we see a great willingness and support to get frameworks and conditions in place that will make CCS viable for all parties.

So in conclusion, we're operating in a dynamic and progressive country, which is supportive of both maximizing recovery and at the same time with an ambition to be a global CCS hub, both creating exciting opportunities for the company, which leads me to my next slide that outlines Noreco's sustainability approach.

There are different ways of thinking about sustainability and the energy transition. And there are different ways to contribute to a net 0 society and a better future. This is also true for oil and gas producing companies. Some ambitions and initiatives are quite easy to accomplish, while others will never see the light of the day and some look better on paper than others. And each company has its own set of preexisting conditions that could be an advantage or a challenge.

In Noreco, it is crucial that we make choices based on the ability we have to follow through with our commitments and at the same time meet our corporate objectives, where shareholder value creation is a dominant factor.

The world still need oil and gas as energy sources. In Europe, we have observed extreme gas prices this winter. And one of the drivers behind this is that there has been an underinvestment in gas supply for almost a decade now. 5 years ago, in 2017, we took FID on one of the largest gas redevelopment projects carried out in the North Sea.

The delivery of Tyra does not only mean that we will increase our output and return cash to shareholders. It also means that we will contribute to the power supply of approximately 1.5 million Danish homes. Denmark is today depending on imported gas from Germany, which again imports gas from Russia. And by delivering Tyra, we will contribute to safeguarding Danish access to reliable and affordable energy for decades. With Tyra onstream, we will also see a significant reduction in our emissions. The Tyra field itself will have a 30% lower reduction compared to the old Tyra.

For the other 3 hubs, we also have a continuous focus on improving efficiency and reducing emissions. This is done through flare reduction initiatives, emissions monitoring and phase out of chemicals, to mention some of them.

Through the DUC, we have carried out a broad range of studies to also understand the effects operations have on offshore biodiversity. And finally, Noreco has for years invested in R&D through the establishment of DHRTC, which conducts research aimed towards responsible and efficient oil and gas production.

Exactly one year ago, we announced refinanced RBL facility. As one of the first RBL facilities, at least at that time, it has a set of sustainability-linked KPIs attached to it. This means that we are incentivized to reach defined KPIs on, for example, emissions reduction and renewables as this will lower our funding costs.

And the final sustainability commitment I would like to highlight is Project Bifrost. This is a partnership between the DUC, Orsted and DTU. Together, we are assessing the potential for CO2 storage on Harald. The project received DKK 75 million in EUDP funding in December, and it has kicked off this year. Over the next couple of years, we will carry out a study on Harald, which is a sandstone reservoir. The study is expected to broaden to cover the entirety of the DUC, which is chalk to understand the storage potential of our assets, including the use of existing pipelines to transport the CO2. The expected start-up capacity of Harald alone is 3 million metric tons of CO2 per year. And it goes without saying that we are very excited to potentially extend the lifetime of our assets long into the future and at the same time contribute to Denmark reaching its climate targets.

And with that, I will leave the word with Euan, who will take you through the financial results for the quarter.

[Euan Shirlaw, executive]

Thank you, Cathrine.

And with that -- with Marianne having taken you through the operational performance, I'd now like to walk through how that performance has translated into a similarly strong financial result.

With a positive production cost and commodity price backdrop, our financial result in Q4 is the strongest that we've had since closing the acquisition in 2019.

Looking at Q4 compared to Q3, our revenue was up roughly 20% at $175 million in the quarter, resulting in total revenue for 2021 of $565 million. And our EBITDA was up roughly 50% at $97 million, resulting in total EBITDA generation for 2021 of $250 million.

While our net result does reflect a higher noncash tax charge, it's important to note that this is primarily driven by the impact of a weakening Danish kroner in the fourth quarter, and the impact that has on the U.S. dollar value of our tax losses. And while near-term performance is only part of our story, it does give an early insight into the potential we have and also strengthens our already robust capital structure, where we continue to be fully funded for Tyra.

We exit 2021 with a liquidity position of $223 million and an outlook that is further supported by a strong operational outlook and the current commodity price environment.

Taking a step back, the last 2.5 years have allowed our business to demonstrate the importance of being able to maneuver through challenging times, like 2020 and the impact of COVID-19, while maintaining a strong capital structure. One of the key drivers of us being able to do that though has been our hedge portfolio. So while it has an impact today on financial performance, what it ultimately enables us to do is have confidence in our ability to deliver on our key objectives. The most material of which at the moment is ensuring that we are fully funded for the Tyra project. During 2022, we expect to have greater relative spot price exposure, but we do not expect our overall approach to change.

Let's turn over now to look at the next page and our current hedge book in some more detail. The primary purpose of the price hedging that we have in place is to provide visibility over future cash flow. In simple terms, while we finalize Tyra, we see more value in protecting our downside through setting minimum realized prices than maximizing upside with uncapped exposure. That's a path you'll continue to see us take with minimum levels set by our RBL hedge policy. However, given the positive progress that's being made on Tyra and current market sentiment, we are comfortable with a more relative spot price exposure in 2022 than we've had over the 2019 to 2021 period.

Looking at what that means in practice. Based on our production guidance for 2022, we expect roughly 60% to 65% of our production volumes to be hedged on oil at $56 per barrel and roughly 30% to 35% hedged on gas volumes at prices ranging from EUR 30 per megawatt hour in Q1 to EUR 50 per megawatt hour in Q2 and Q3 of 2022. Looking at the period into 2023 and beyond, we're unhedged on the gas side and have a steadily decreasing profile for oil hedges.

Having covered hedging and the role it plays in supporting our capital structure, let's turn over for a broader overview of our balance sheet. In short, our capital structure remains robust. The balance sheet is stable, with no principal maturities prior to Tyra first gas. Net debt at the end of 2021 was $1.162 billion on an accounting basis and $977 million excluding North 13 as this will convert to equity by November '23 at the latest.

Turning to our liquidity position. With cash on balance sheet of $123 million and undrawn RBL capacity of $100 million at the end of Q4, we're fully funded to deliver Tyra. And the outlook is further supported by the strong commodity price environment where we have increasing spot market exposure in 2022. Ultimately, our balance sheet has been set to enable us to achieve operationally. And what you've heard today is that these components are continuing to work well together.

So for closing remarks, where are we today? Well, we're delivering, and we'll continue to do so. I'm very pleased with the recent performance. And as a company, we're all very excited about the outlook for the next 18 months, which will ultimately culminate with Tyra coming on stream in mid-2023.

And in that vein, I hope today, you have a good sense of our confidence in both the delivery of the project and its contribution to Noreco once onstream. It will lead to a near doubling of our production and will turn Noreco into a material cash flow generator. After Tyra first gas, our focus will be on building and maintaining a material and sustainable portfolio of returns to shareholders. But it doesn't stop there. We'll continue to look to progress projects that drive value and support our long-term cash flow profile. In short, our position today is strong and our bright future is just around the corner.

And with that as a summary, I hope this has been a helpful run-through of where we are. And we'd like to welcome any questions that you may have.

[Cathrine Torgersen, executive]

We will give it a minute. Please submit your questions.

[Euan Shirlaw, executive]

Thank you. And it's good to see that the presentation has been positively received and we have more focus today. But with no Q&A, hopefully, that reflects the fact that we've covered all of the important topics. So it just leaves it me to say thank you very much, and we look forward to continuing to tell you more about Noreco as we go forward.