Neptune Energy : Transcript

Neptune Energy - Q3 2020

Results

Wednesday, 18th November 2020

Introduction

Sam Laidlaw

Executive Chairman, Neptune Energy

Welcome

Well, good morning, everyone, and welcome to our earnings call for the third quarter ended 30th September 2020. We hope you and all your families are healthy and well. I would like to draw your attention to the disclaimer on slide two of the presentation regarding forward-looking statements.

General Economic Backdrop

Turning first to the general economic backdrop. Despite positive recent news on vaccine developments, COVID-19 remains a significant challenge for us all. Rising case numbers and renewed lockdowns are impacting societies and the global economy once again. Despite this, however, energy markets remain relatively stable and while oil prices are still soft, gas prices have recovered to pre-pandemic levels, reflecting seasonal factors and supply disruption in Europe.

As a gas-weighted business, we remain well positioned as we move forward and have temporarily increased output from Cygnus to benefit from higher gas prices in the short-term. The operational impact to our business from COVID-19 has been limited, reflecting the early measures put in place to protect our people, our assets and our operations.

While the majority of our scheduled maintenance activities are now behind us, we will continue to monitor the risks and adapt our programmes as necessary.

Good Operational and Financial Performance Despite Challenges

Our third quarter results were resilient, demonstrating an improved safety performance and continued strong cash flows. This was achieved despite production, which was lower than expected due to issues at some of our joint venture assets.

Most recently, production has been impacted by a serious fire at the Equinor-operated Hammerfest LNG facility in Norway. While investigations are ongoing, Equinor, is currently advising that production may not restart until October 2021, reducing net output at Snøhvit by around 14,000 barrels of oil equivalent per day for the next 12 months.

Despite lower production, our earnings and cash flows through this period are protected by business interruption insurance. While the cause of the fire is still under investigation, the performance of our joint venture assets in general in 2020 underlines the benefit of a diversified portfolio and our desire to operate assets, where we can, so that we can deliver safer, faster and better operational performance.

We are well protected through both strong liquidity and a healthy balance sheet, while our hedges have also protected us well in 2020 against lower commodity prices and will continue to do so in the fourth quarter.

The organisation changes we announced in June are progressing well, with new structures in Norway, the Netherlands and the UK now in place. Changes in Germany are due to be concluded in the first half of 2021 as planned. In October, we revised our production guidance for 2020 to between 140,000 to 145,000 barrels of oil equivalent per day to reflectthe lost volumes from Snøhvit and lower production from Touat due to the need for further repairs there. We remain on track to achieve our other full year targets for cost reductions, capex and opex.

In the medium-term we are well positioned for growth. So while our new projects due to come onstream in 2021 will only partly offset production outages at Snøhvit and Touat, we expect to exit next year very strongly, with significantly higher production. And we intend to move swiftly by appraising our recent high value discoveries in the UK and Norway with further wells planned.

While this demonstrates our intent to aggressively target upside within the portfolio, we will only do so within the targeted and disciplined strategy consistent with growing our free cash flow as we outlined at our half year results.

So with that, I would like to hand over to Jim who will take you through the operational details, before Armand takes you through the financial highlights. Jim, over to you.

Operational Update

Jim House

CEO, Neptune Energy

Welcome

Thank you, Sam, and good morning to you all. I would like to echo Sam's comments at the start of the call and hope that you, your family and friends have been safe and well.

Q3 Performance

Turning first to our Q3 highlights on slide six. In the third quarter of 2020, our total recordable injury rate improved to 1.9 events per million working hours, compared with 2.1 in the second quarter. Health and safety is our highest priority and we continue to focus on improving our performance across all regions.

Our process safety event rate metric, which is considered to be a leading indicator, also improved down to 1.9 per million working hours, compared with 2.1 in the second quarter and ahead of target.

Turning to our operating KPIs. Production in the third quarter of 2020 averaged 134,500 hundred barrels of oil equivalent per day, reflecting planned shutdown activity, curtailments in Indonesia and issues at joint venture assets in Norway and Algeria. The operational issues in Norway and Algeria, which I will talk through in more detail on the next slide, combined to reduce our output by around 10,000 barrels of oil equivalent per day for the quarter.

Production efficiency at our operated assets in the third quarter reflected our planned shutdown programme and declined to 73% compared to 83% in the second quarter. However, year-to-date production efficiency, whilst stripping out planned shutdowns, has averaged 90%, which demonstrates an improvement on our 2019 performance levels.

Our financial performance in the third quarter was resilient, with operating cash flows higher and investment lower than in the second quarter. Due to lower production and negative foreign exchange rate effects, operating costs averaged $10.20 per barrel of oil equivalent inthe third quarter, up from $8.50 per barrel in the second quarter. However, our year-to-date performance remains well ahead of plan at $9.10 per barrel.

Post-tax operating cash flow in the third quarter increased to $259 million, reflecting $123 million impact of net tax refunds in the period compared to net tax payments of $86 million in the second quarter. Further, net tax refunds are expected in the fourth quarter, supporting our full year cash flow forecasts.

During the period, we invested $163 million in development capex, which was 10% lower than in the second quarter. Development capex is expected to increase in the fourth quarter, reflecting the restart of activity at the Merakes project in Indonesia.

Finally, as previously guided, our net debt to EBITDAX leverage ratio increased to 1.64 times, reflecting an increase in net debt and a reduction in our 12-month rolling EBITDAX. We expect leverage to increase further in 2020 as our 12-month rolling EBITDAX moves lower, but it will remain well within our threshold of 3.5 times.

Robust Q3 Operating Performance

Moving on to slide seven, and a review of our operational performance in the third quarter. As previously mentioned, production in the third quarter averaged 134,500 hundred barrels of oil equivalent per day. Output was lower than in the second quarter, but still modestly higher than the same period last year.

In the third quarter, production was impacted by a deferral of planned shutdown activity into Q3 and a number of operational issues at joint venture assets in Norway and Algeria and further curtailments in Indonesia. Meanwhile, our operated production performed strongly.

Turning to Norway first. In Norway, output was impacted by well issues at Gudrun field, constraints at Troll C, which is a platform, which impacted output from our Fram subsea development and towards the end of the quarter, a three-week unplanned outage towards shutdown at the Hammerfest LNG facility to investigate a power outage.

On restart of the Hammerfest facility, a fire and the subsequent use of large quantities of sea water to control the fire, caused significant damage to the plant and production remains does remain shut-in.

The operator of the plant, Equinor, is continuing to assess the damage and required repairs, but has advised that the plant is unlikely to be operational before October 2021. Our earnings and cash flows from the plant are protected through business interruption insurance, which Armand will provide further details on. We will also submit insurance claims for our share of repair costs.

Finally, at the start of the fourth quarter, industrial action at Norway disrupted output from our Gjøa and Gudrun fields for several days, but were resolved quickly.

Moving on to Algeria. At our Q2 results, we advised that a shutdown was planned in August to rectify start-up issues identified during the commissioning phase. More substantial work has been required, with additional shutdowns undertaken in September and October.

However, while some problems are now behind us, a technical issue has been identified, which will take some time to resolve, impacting production in the fourth quarter of 2020 and into the first quarter of 2021.

In Indonesia, production in the third quarter was higher than expected, but curtailments due to high inventory in the Bontang LNG facility continued to reduce output. This was partially mitigated through the sale of spot cargoes in September and October. Production for the fourth quarter is expected to be marginally higher than in the third quarter due to stronger seasonal demand.

Production in the UK remained relatively strong in the third quarter with a planned shutdown completed safely and on schedule. During the period, we constrained output below available export capacity due to lower gas prices as we prioritise value over volume. Meanwhile, gas prices are now significantly stronger and we are exporting at higher rates when able to do so and we are at full capacity now.

In the Netherlands, production was lower than planned in the third quarter due to additional unplanned shutdown activity. A sustained effort has been ongoing to reduce maintenance backlogs and output has been higher since September.

Production in Germany and Egypt was broadly in line with expectations in the third quarter. In Germany, output will be boosted in the fourth quarter from the Adorf-Z15 well, which was brought onstream at the start of November. This will be partially offset in Egypt, when the Ashrafi licence expires and is relinquished in mid-November.

While maintenance activity is behind us, strikes in Norway, the outage at the Hammerfest LNG facility, along with further repairs at Touat, means that production in the fourth quarter is likely to be marginally lower than the third.

Despite the temporary loss of contribution from these two important assets, Group production remains at a strong level, demonstrating the benefits of our diversified portfolio. For the full year, our production guidance is unchanged from the update provided in October at 140,000 to 145,000 barrels of oil equivalent per day.

2021 Outlook

Turning to slide eight and our near-term project outlook. We have several new projects in Norway and Indonesia scheduled to start up in 2021, which together will partially offset production losses from Snøhvit and Touat and will provide significant further growth over the full year of 2022.

In Norway, the Gjøa P1 project is expected to come onstream early in the new year adding 8,000 barrels of oil equivalent net per day. This will be followed by the Merakes project, which was restarted in September and is scheduled for first gas in the first half of next year. To facilitate this, a shut-down is planned at Jangkrik in January reducing first quarter production from Indonesia. Meanwhile, Merakes is due to add 10,000 barrels of oil equivalent net per day at plateau.

In the third quarter, the Duva project is also scheduled for first production adding a further 8,000 barrels of oil equivalent per day to our Norwegian operations. Together, these projects are expected to contribute 26,000 barrels of oil equivalent per day. In the fourth quarter of 2021, the operator, Equinor, has advised that the Hammerfest LNG plant is expected to come back on line restoring around 14,000 barrels of oil equivalent of net production from Snøhvit.

In addition, Equinor, has scheduled first production from the Njord Future Project before the end of 2021 potentially adding a further 26,000 barrels of oil equivalent per day at plateau for Neptune.

As such, while average output in 2021 will be limited by the outage at Hammerfest, we will be adding significant new production and expect to exit the year at materially higher rates. As a reminder, in 2022, we also have the Fenja and Seagull projects to come online adding a further 29,000 barrels per day of net production growth.

Turning to our exploration activity. 2020 has been a very successful year for exploration for Neptune, which has included material discoveries at Isabella in the UK and Dugong in Norway, among others. We plan to return to both of these discoveries in the near term. In the first half of 2021, we plan to drill an appraisal well on the Dugong discovery, which will be followed by an exploration well targeting the on trend and contiguous Dugong Tail prospect. The Tail prospect has the potential to add material additional resources.

If the results from these wells are positive, we aim to accelerate our development planning activities and submit a plan of development in 2022, thereby, potentially benefiting from the temporary petroleum tax regime change in Norway. We are reviewing a number of development concepts and first production could be achieved as early as 2025, which would be just five years from discovery to first oil.

In the UK, we are progressing plans for an appraisal well at Isabella to commence in either late 2021 or early 2022. Results from this well are likely to be available in the second half of 2022. Isabella and Dugong both illustrate just two of a number of notable projects we are progressing, which could contribute additional production to Neptune in the longer term.

And with that, I will pass you on to Armand, who will run you through the financial results.

Financial results

Armand Lumens CFO, Neptune Energy

Financial Highlights

Thank you, Jim, and good morning, everyone. Turning to our financial highlights on slide 10 now. Our financial results in the third quarter ended 30th September 2020 reflect continued weak commodity prices seen since the start of the pandemic, as well as lower production.

Our hedging activity continues to provide mitigation to lower commodity prices, while tax refunds in the third quarter contributed to higher operating cash flows. Importantly, our liquidity position remains very strong and our leverage outlook is stable.

In the third quarter, underlying operating earnings before financing, restructuring costs and impairments were $16 million, compared with $87 million in the second quarter. While production was lower in the period, earnings were also impacted by lower R&D credits and a loss at our equity accounted entities.

EBITDAX was robust at $172 million in the third quarter compared to $228 million in the second quarter. Post-tax operating cash flows increased from $62 million in the second quarter to $259 million in the third quarter. Cash flows in the third quarter benefited from a

$123 million tax refunds compared to a $86 million tax payment in the second period. Excluding tax payments, operating cash flows were broadly stable in the third quarter.

In the fourth quarter, we expect to receive a further $62 million in tax refunds, with the majority of these attributable to our operations in Norway. In 2021, we expect to receive further cash taxes at around $185 million. In the third quarter we invested $163 million in development capex, down from $182 million in the second quarter. We also capitalised a further $19 million of exploration expenditure.

Due to repayment of the $237 million Touat Vendor Loan, net debt under our RBL definition increased to $1.8 billion as we drew upon the RBL to repay this loan, and as a result, our leverage ratio increased to 1.64 times. The increase in leverage also reflected a reduction in rolling 12-month EBITDAX, which now also includes a contribution from our Touat asset. While leverage has increased, our total net debt has remained broadly flat and leverage is well within the RBL limits.

Hedging Activity Protects Cash Flows

Moving now to our average realisations and hedging positions on slide 11.

In the third quarter average oil and gas realisations increased quarter-on-quarter, but remain lower than in 2019. Gas prices have since strengthened reflecting seasonal factors and supply disruption in Europe, and are now back above pre-pandemic levels. Average LNG realisations declined in the third quarter reflecting lag effects in our commercial contracts, but remain close to $5 per million BTU. LNG prices are expected to increase in the fourth quarter.

Our hedging activities continue to enhance our returns with post-hedge realisations for oil, gas and LNG all higher. In aggregate, we realised hedge gains of $75 million in the third quarter. The unrealised mark-to-market gain on our hedges at the end of the period was $145 million, including $43 million relating to contracts that are maturing in 2020.

Turning now to our hedge positions. We remain well hedged for the remainder of 2020, with an aggregate post-tax hedge ratio of 70%. And for 2021, we have added further oil and gas hedges and have increased our aggregate post-tax hedge ratio from 30 to 40%. Importantly, we have been able to hedge at higher prices, increasing both our average floors and caps. We expect to add further 2021 and 2022 hedges in this fourth quarter and the first quarter of 2021.

Continued Low Costs and Resilient Operating Profits

Moving now to our income statement on slide 12. As previously mentioned, our earnings in the third quarter were impacted by a number of factors including continued weak commodity prices, lower production and a loss at our equity accounted entities. We also incurred a further net restructuring provision of $2.4 million.

Excluding impairments and reorganisation costs, our underlying operating profit before tax and financing was $16 million compared to $87 million in the second quarter.

Turning now to operating costs. In the third quarter, operating costs increased to $10.2 per barrel, and this reflected lower production during the period and unfavourable foreign exchange effects. On a constant currency basis, opex would have been around $9.6 per barrel and close to a full year guidance of around $9.5 a barrel.

G&A expenses were also higher in the third quarter reflecting lower R&D credits in Norway, which were utilised in the first half of the year. Exploration expenses of $24.5 million in the third quarter were stable quarter-on-quarter and included a write-off of the Schwegenheim discovery in Germany, which is not considered economic in the current environment.

Moving on to tax now. In the third quarter, the tax charge equalled a net credit of $21.8 million, comprising of a current tax credit of $104.3 million and a deferred tax charge of $82.5 million. In the third quarter, we received net cash tax refunds of $123 million and anticipate a further refund of $62 million in the fourth quarter.

The majority of these refunds reflect temporary changes to the Norwegian petroleum tax regime. We expect to receive a further $185 million of tax refunds in 2021, of which about $170 million are coming from Norway.

Robust Operational Cash Flows and Strong Balance Sheet

Turning now to slide 13 for an update on our cash flows and balance sheet. For the first nine months of 2020, post-tax operating cash flows were $676 million, down from $947 million in the comparable period of 2019. We expect operating cash flows for the full year to be around $900 million.

In addition to our operating cash flows, we have also received $34 million of net cash returns from our Touat project, $3 million from our pipeline interests in the Netherlands and dividends of about $2 million from infrastructure assets owned in Germany.

Year-to-date, we have invested $577 million in development capex and capitalised $77 million in exploration spend. For the full year, we expect development capex to be around $800 million, which is in the upper end of our guidance range due to the restart of our activity at Merakes and foreign exchange effects. Development capex is expected to decline materially in 2021.

At the end of the quarter, we repaid the Touat Vendor Loan through a combination of cash and a drawdown on our RBL totalling $237 million. As a result, net debt under our RBL definition increased by $180 million to $1.8 billion at the end of the quarter. Importantly, the repayment of the Touat Vendor loan provides $275 million of additional liquidity through inclusion of the asset in our RBL, as well as reducing our estimated interest expense by about $12 million per year.

As a result of higher net debt and lower 12-month rolling EBITDAX, together with the proportionally lower EBITDAX associated with Touat, leverage increased from 1.31 times in Q2 2020 to 1.64 times at the end of Q3 2020. Leverage is expected to remain below 2 times in 2020 and decline to around 1.7 times by the end of 2021 as our production, earnings and cash flows increase. It remains well below the 3.5 times threshold, which is included in our RBL covenant.

Resilient Full Year Outlook

Finally, turning to slide 14 and our full year guidance. We continue to make good progress against our cost targets for the year, with capex and opex significantly lower than anticipated at the start of the period. To-date, we have realised reductions as part of our resilience plan totalling around $290 million and expect reductions for the full year to be around $330 million, with capex and opex being the main components of this.

Due to the early restart of activity at Merakes, we now expect development capex to be at the top of our previous $700 million to $800 million guidance range. Exploration spend is expected to be $145 million in 2020, with a small increase, reflecting higher spending at our discoveries this year and additional planning for our 2021 exploration campaign, which will focus on high value opportunities, including Dugong and Isabella.

As we already outlined, while the performance of our operated assets has been strong, due to the outage at the non-operated Hammerfest LNG plant and lower production from Touat since August, production volumes for 2020 are expected to be broadly flat compared to 2019, with guidance unchanged from the October production update at 140,000 to 145,000 barrels of oil equivalent per day.

Importantly, our EBITDAX and cash flows from Snøhvit are protected through our business interruption insurance. Losses are calculated in accordance with a formula agreed with our insurers and are based on assumptions in our business plan for production, prices and costs.

Due to the lower expected production in 2020, we now anticipate opex to average around $9.5 per barrel for the full year. Turning to 2021, while the loss of production from Snøhvit will result in slightly lower average production in 2021, we expect to exit the year at a significantly higher rate. Development capex is expected to decline materially in 2021.

In summary, against a challenging back drop, we have achieved resilient financial results for the third quarter. We remain committed to delivering growth in production, earnings and cash flows, while maintaining a strong balance sheet and liquidity in 2021.

And with that, I will hand you back to Sam for the closing remarks.

Conclusion

Sam Laidlaw

Executive Chairman, Neptune Energy

Summary and Outlook

Thank you very much, Armand, and thank you, Jim. With COVID-19 rates increasing, our focus, of course, remains foremost on protecting our people, our assets and our operations.

Significant disruption to societies and economies is now certain over the winter period. However, energy markets remain relatively stable and prices are significantly higher than during the first wave. Our resilience plan, diverse portfolio, our effective hedging programme and insurance policies have all protected our business from shocks in 2020 and will continue to do so in 2021.

Our low leverage, strong balance sheet and liquidity also allows us to continue to invest in growth, whilst maintaining a disciplined approach to capital allocation. In 2021, we will have new projects coming onstream in both Indonesia and Norway. And while average production will be curtailed by the outage at Hammerfest, the expected return of these volumes towards the end of the year, will enable us to exit 2021 at significantly higher production levels.

Further growth will be delivered in 2022 with new projects scheduled to come onstream in both Norway and the UK. In addition, we are working hard on several new potentialdevelopment projects, including Dugong, where schedules can be brought forward to benefit from the temporary tax changes in Norway.

And our new energy initiative continues to make good progress, with the team now in place and potential hydrogen and CCS projects being identified.

As our results have shown today, Neptune is a resilient business, delivering continued earnings and cash flows despite a challenging environment. We have material growth prospects throughout our business and continue to unlock value through cost reductions and selective investment as we prioritise value over volume.

And with that, I would like to hand back to the operator to open the lines for questions.

Q&A

Sebastian Kaufmann (Tresidor Investment): A couple of questions from my side. First of all on Hammerfest. What are the chances that you get the repair costs also covered by the insurance? And what would those costs be, do you have any indications already?

The other thing is the Touat problems that you had. Is there also possibility that you can claim from the insurances for the cost of the issues we have there?

Then on the RBL. I checked the Q2 presentation that we also shown an availability of the RBL of $2.3 billion there. And it is also $2.3 billion in Q3 even though Touat included. Is it because the underlying borrowing base is declining because of assumptions from the bank?

And also, if you can just give us a bit more detail in terms of 2021 production and capex, it would be great just to get an idea of where we are, where you guys think you are going to be overall in 2021 and what the potential exit could look like, just broadly.

Sam Laidlaw: I think I counted three questions there, Sebastian. But let me take the first and last one and I will let Armand take the second one. I think in terms of insurance with the Hammerfest, yes, we would expect the cost of repairs to also be covered through our normal insurance programme, obviously, subject to deductible.

We do not yet know what the cost of that is. Equinor is still doing the work and doing the engineering, so it is too early to say. And also, likewise with Touat, we are still actually working through the engineering at the moment, but we do have insurance in place for repairs.

In terms of the RBL, Armand, do you want to just touch on the inclusion of the capacity of the RBL and the inclusion of Touat, how that works?

Armand Lumens: Yeah, Sebastian. Nice to have you on the call just like anybody else. But thanks for your questions. The repayment of the Touat loan was actually completed on 30th September and then the documentation had to take place still with the banks. So the actual inclusion will occur in Q4.

And just an additional point on the insurance on Hammerfest. The loss of revenues is basically covered by what is called loss of production insurance. The repairs is really linked to insurance related to the assets as you would normally have for your house insurance if youhad a fire. So there are two different insurance processes, but we can confirm that both type of costs are covered by two types of different insurances.

Sebastian Kaufmann: Fantastic. Okay. Just very quickly on the RBL. So does that mean basically as of 1st October, the RBL capacity is actually higher than $2.3 billion?

Sam Laidlaw: Yes, it is. So I think in your supplementary you suggested that the capacity might be coming down. We have not had a re-determination.

Armand Lumens: And this comes back to the earlier statement that we had upside the $2.6 billion early in the year during the re-determination in April.

Sebastian Kaufmann: Fantastic. But the drawn amount of the RBL includes the drawn part for the Touat project finance that you repaid?

Armand Lumens: Yes.

Sebastian Kaufmann: Okay. Fantastic. Okay.

Sam Laidlaw: And then I think your final question was around production and capex guidance for next year, Sebastian. And clearly an important question, but one that actually is too early for us to respond to because we are going through the process at the moment in terms of agreeing budgets for next year with our partners and operators where we are not the operator. And that process obviously will be complete later on this year and we will have, I think, more guidance when we come to the full year.

And that obviously has consequences to the production next year. The big moving parts are obviously quickly Hammerfest comes back on and the progress of the new developments.

Sebastian Kaufmann: And if you assume that really Hammerfest only comes back in October next year, would you expect that production next year to be at least flat or further declining, given natural declines and the fact that you have more projects coming on stream over the course of next year?

Sam Laidlaw: I think it is too early to tell because it will depend on the timing of those new developments.

Sebastian Kaufmann: Understood. cannot comment on that?

Okay.

And then the capex?

Is the same thing youSam Laidlaw: Yeah. It will be down on this year, as Armand indicated. That much we know. But the exact guidance I think is probably premature at this stage. We are literally in the middle of the budgeting process, which we are agreeing with all our partners. It will go to our Board at the beginning of December. So I think we will be able to talk more about it in January.

Teo Lasarte (Marathon): I was wondering if you could just little bit more details on the troubles you are having in Algeria and give a sense of, if you can, about the timing of when you expect productions to come back on stream?

Sam Laidlaw: Sure. I will let Jim speak to this. Jim, are you able to pick that one up? The question is around little bit more colour on the problems in Algeria and when we expect to have full production back?

Jim House: Sure Sam. Yeah. I am not in the room with the guys. I'm actually in Houston at the moment. The outlook is sometime in the first quarter. Of course, we are working forward. We have a large piece of equipment that we have had to address as well as we had the original equipment manufacturer in and we have decided to take it out of service and replace it with the new equipment.

We have worked with the original equipment manufacturer in the US and they have prioritised schedules. We have been able to knock off about 16 weeks. And we will get it done in early January. And then putting together the replacement and we are addressing other issues in the plant, so when we come back, the Touat gas plant is good as working orders possible.

So sometime in the first quarter. We do not have a definitive timeline yet. But we decide sometime in February of March at the latest.

Tom Hemmant (Invesco): Just a really quick follow-up from Sebastian question actually. Just to clarify. So the RBL availability gets bumped up from 1st October as the documentation is done and Touat gets added in. But I was not sure in terms of drawings on the RBL, it is kind of a positive picture because the drawings were to made Touat is already reflected in these end of Q3 balance sheet numbers. So we get a pure bit to availability as opposed to being availability go up but also drawing.

Sam Laidlaw: Yeah, indeed, Tom. Any other questions?

Sam Laidlaw: Okay. Well, if there are no further questions, Jordan then I think might we might draw this call to a close. Can I just thank you all for your continued interest and support. I hope you all stay safe during these uncertain times and stay well. We will obviously update you further when we have the full year results. And I think you will continue to see strong cash flows from the business hopefully an improving macro climate but also the progress of the new developments which will drive growth for the future. So thank you all very much for showing interest in the Neptune story.

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