John Wood Group PLC

Well, good morning, everyone, and thank you for joining us today for our first half results presentation. We hope you're all staying healthy during this difficult time, and we do look forward to meeting you all in person, as and when circumstances allow. As always, our CFO, David Kemp, will take you through our financial performance shortly, and I'll be bookending David's presentation focused on three major themes running through our business. Firstly, how we've responded to the needs of today with resilience. Secondly, how well we are positioned in the right markets. And thirdly, how fit we are for the future, leading the pack on ESG. So my three themes will then be resilience, positioning and the future fit nature of our business. We're facing unprecedented challenges in this time of a global health pandemic that is really affecting people's lives and livelihoods across the world. Since the start of April, over 40,000 of our people have been successfully working remotely, with many others continuing to work safely at customer sites supporting vital services. It's their effectiveness in delivering for clients that supports continued demand for our services. We've maintained a regular ongoing dialogue with our people throughout this challenging period, and I'm really encouraged by the extensive positive feedback to our recent staff survey around our approach to people's health, wellbeing and support for flexible working. This informs our cautious approach to returning to the workplace. Resilience is a hallmark of any successful business, but absolutely fundamental in today's environment. And I'm very proud of how Wood has risen to the challenge so far. The personal resilience of our people across the globe to keep delivering for our clients. Financial resilience, providing a solid set of first half results thanks to deliberate actions taken to control what we can control. And enduring resilience as a result of a broader business as well positioned for future growth as the world recovers. The resilience we've built in the business is by design, and it's allowing us to move forward with confidence in an uncertain period. Looking at how we're responding to the world in which we find ourselves today, benefiting from the breadth of our end market exposure, we've seen relative resilience in around 65% of our end markets. We took early and decisive actions in response to the impact of COVID on oil price volatility and our ability to leverage our asset-light model has obviously been key. We've successfully protected margin and delivered first half EBITDA of $305 million. We also completed the actions required to deliver overhead savings of over $200 million in the year. We made excellent progress in portfolio optimisation and completed the disposals of our industrial services and nuclear businesses, and the steps taken to protect cash flow and ensure balance reach strength have helped deliver the reduction in net debt of over $200 million. Looking ahead, crucially, we continue to win work in the first half, securing new orders and scope increases of over $3 billion, and we are seeing encouraging early signs of markets stabilising. In our capital markets event last November, we set out our strategy and our repositioning across three differentiated service lines and two end markets. Throughout today's presentation, we will demonstrate how the delivery of that strategy and our position across the right markets with the right service offering has underpinned our first half performance. Sustainable growth is delivered by embracing a culture which retains talent, customer relationships and our shareholder confidence. Our objective is to be recognised as leaders in sustainability underpinned by our membership of the UN Global Compact. In the first half of 2020, we extended our diversity and inclusion programmes through the modern slavery and human trafficking statement, continued to uphold the Universal Declaration of Human Rights and strengthened our governance in wood. We also announced our pledge to reduce greenhouse gas emissions by 40% by 2030. We're also very well-placed to be responding to the energy transition Decarbonisation is one of the most important opportunities for our business and I'll walk you through some of our expertise in that later. I'm very proud that our differentiated performance is recognised by the leading ratings agencies. Sustainalytics rank as 6th out of 137. 6th. of 137 in the energy services sector and ahead of E&C peers, and MSCI have awarded us a consistent AA rating over the past five years. Further detail about our sustainability performance can be found in our latest sustainability report, which is published later this month. I'll now hand over to David to discuss our detailed financial performance.

Thank you, Robin. As Robin noted, our first half results reflect relative resilience together with our focus on reducing cost, protecting margins and cash flow, and ensuring balance sheet strength. Revenue of 4.1 billion benefited from our broad end market exposure, with 65% of activity derived from chemicals and downstream, renewables and other energy, and the built environment. Oil price volatility impacted upstream oil and gas activity, which accounted for 35% of revenue. We delivered EBITDA of £305 million at the upper end of guidance and ahead of consensus. Our ability to leverage our asset-light model together with our differentiated services has been key to protecting margins. We took early and decisive action on cost, maintaining operational utilisation at high levels and reducing overheads in anticipation of lower activity. EBITDA margin was down only half a percent on H1 2019. In the first half, we completed actions to deliver full year overhead savings of over 200 million, with around 70 million recognised in the first half. This supports our confidence in delivering stronger second half margins and our objective of maintaining full year margins at the 2019 level of 8.6%. The savings include the synergies relating to the creation of TCS and previously announced margin improvement initiatives. Our actions took effect quickly and typically incurred a low cost. Actions included voluntary salary reductions of 10% from 1st of April until the end of the year for the board, executive directors and senior leaders. Temporary and regrettably permanent headcount reductions and lower discretionary spend. Around half of the $200 million will endure beyond 2020, which supports our medium-term margin improvement strategy. Looking at performance on a light-for-light basis, we delivered margin improvement in two of our three business units. In the Americas, lower revenues reflected market conditions in upstream, where activity was down as expected. And this was partially offset by continued strength in capital projects activity in chemicals and downstream, where the YCI and GCGV projects continued to progress well. We also saw higher activity in both solar and wind. EBITDA margins reflect lower activity and cost overruns of around 30 million on legacy projects, which we expect to complete in Q3. And this was partially offset by action on cost. In EAAA, we saw lower upstream work, partly offset by robust activity on capital projects work in chemicals and downstream. EBITDA margins remain strong and were up in 2019, reflecting excellent execution and action on cost. In TCS, lower revenue reflects progress on the TCO automation project and a reduced appetite for low margin construction work. Built environment activity accounted for 55% of TCS and was pretty resilient. EBITDA margins were up significantly, benefiting from good execution, synergies from the creation of TCS in Q4 2019, and maintaining good operational utilisation. It's helpful to bridge the H1 2019 to H1 2020 EBITDA. The earnings impact of lower volumes was partially mitigated by our focus on maintaining good operational utilisation. There was no material impact from pricing. We further offset this with early impact of our overhead cost savings of £70 million. The EBITDA impact of businesses disposed, principally the nuclear and industrial services businesses, was £17 million. Despite the impact of overruns on legacy projects in Americas, we delivered EBITDA of $305 million, representing a margin of 7.5%, just 0.5% down on the first half of 2019. Actions to preserve cash and maintain balance sheet strength are reflected in the first half cash performance. We delivered a reduction in net debt to £1.22 billion from £1.77 billion in June 2019 and £1.42 billion in December 2019. Cash generated pre-working capital of £135 million is stated after provisions of £75 million and this compares to provisions movement of £114 million previously. As expected, we are seeing a lower impact from legacy items and we expect a significant reduction in the future. As previously guided, the working capital outflow was driven by the expected unwind of advance payments, principally related to the large US contract due to complete in H2. We saw an inflow from receivables and delivered an improvement in DSO days from 71 in the first half of 2019 to 62 days. A reduction in payables reflected lower activity and the temporary benefit of government payment deferral schemes. Further details are included in the appendix. Cash generated pre-exceptionals was £68 million. And cash exceptional costs of £62 million included restructuring and redundancy costs of £41 million. We made excellent progress with portfolio optimisation and completed the disposals of both industrial services and nuclear in Q1. And as you know, the Board withdrew its recommendation to pay the final 2019 dividend of £160 million. An asset-like cash generative model continues to underpin the basis of our investment case. In the first half, we saw a drag on cash generation from the impact of provision movements on legacy items, exceptional levels of advanced payments unwind, and cost incurred as we took action in response to COVID-19 and oil price volatility. Although EBITDA is at a depressed level in H1, our underlying operational cash flow, excluding these legacy and temporary items, remains strong. For 2020, we have provided guidance for cash outflows in respect of provisions, exceptional items and capex. We expect to benefit from a significant reduction in provision movements relating to projects, asbestos and disposed businesses. particularly as legacy FW items close out and complete. Compared to previous expectations, exceptional items in 2020 will be higher as a result of costs to deliver overhead savings, and this is heavily weighted to H1. The timing of any settlements on regulatory investigations is uncertain and could impact on the outlook on exceptionals. CAPEX includes ongoing costs on engineering software licences. And we've pulled back the pace of the next phase of our ERP implementation, resulting in a lower than expected cash outflow for full year 2020. As you know, risks to second half activity persist and the full year working capital movement will be dependent on activity and the general trading environment. We currently expect a further unwind of the balance of advances on EPC work in H2 to be more than offset by improved working capital performance. Our capital allocation policy is focused on maintaining a strong balance sheet and we remain committed to achieving our target leverage of 1.5 times net debt to EBITDA on a pre-IFRS 16 basis. We have considerable levels of liquidity, with undrawn facilities of over £1.6 billion, with no near-term maturities. Given the levels of global economic uncertainty, the Board considered it prudent not to pay an interim dividend. The Board remains committed to reviewing the future policy once there is greater clarity on the impact of both COVID-19 and oil price volatility. Our success in diversifying our end market exposure is evident in the breadth of work secured in H1. We booked new orders of 3.3 billion in H1, of which 1.7 billion were booked since early March. And these illustrate the breadth of our business and include EPC work for GSK in Europe, onshore and solar EPC wards in the US, an EPCM scope in Iraq, upstream contract extensions in the UK, and an LNG renewal in the Asia Pacific. We also secured a five-year agreement with the US Navy for engineering, design, and maintenance of fuel installations. Order book was $7 billion, down 16% on June 2019 on a light-for-light basis, with $3.1 billion due to be delivered in 2020. we continue to see lower levels of short cycle work coming to market, although our order book gives us higher visibility than is typical at this point. In 2019, we had around 90% either delivered or secured at this point in the year. Whilst we're starting to see early indications of trading conditions stabilising, the risks of downward scope variations, deferrals and cancellation of secured work persist. and we're prepared for a wide range of outcomes. A focus on margin has been at the heart of our actions in the first half. As I outlined earlier, our objective in 2020 is to maintain EBITDA margins at the 2019 level of 8.6% and we're confident of delivering a stronger second half margin. At the Capital Markets Day, we set a specific medium term goal for margin expansion. Delivering on this objective will involve being in the right markets, winning work at the right margin that reflects the value we add, delivering exceptional execution consistently and by being more efficient. The strategic goal remains very much in focus and our delivery in H1 supports this. We remain committed to delivering our medium term EBITDA margin target of over 100 basis points improvement on 2019. Looking to the full year, we'll continue to benefit from the breadth of our activities and see relative strength across chemicals and downstream and built environment, together with a significant increase in renewables activity. We're starting to see early signs of market stabilising and have 3.1 billion due to be delivered in H2. In prior years, we've had circa 90% of revenue delivered or secured at this point. Our focus remains on controlling what we can control. We will maintain high operational utilisation and benefit from the full year impact of over 200 million overhead reductions already completed. These actions and the completion of the legacy energy projects in Americas will deliver a stronger second half margin and our objective is to maintain EBITDA margin at the 2019 level of 8.6%. The benefit of our focus on working capital management, together with lower outflows and non-trading related items, and the decision taken on the interim dividend to protect the balance sheet, will lead to a further reduction in net debt in the second half. In summary, first half results reflect the benefit of our broad end market exposure. and our early and decisive action on cost in response to tough market conditions. We delivered EBITDA at the upper end of guidance and successfully protected margins, and we delivered a significant reduction in net debt. Looking at the full year, we are focused on maintaining our aim of maintaining margins at the 2019 level. and delivering strong cash flow to reduce net debt further in the second half. I will now hand over to Robin.

Thank you, David. As you've heard today, aspects of our investment case have been key to navigating the unique and unparalleled challenges facing the engineering and consultancy market. The breadth of our market exposure has been crucial. If I look back, even as recently as 2014, around 90% of our business was related to upstream oil and gas, compared to 35% today. We also have a balance of CAPEX and OPEX activity in the circa 40-60 ratio, and this really demonstrates the progress we've made to diversify our business. David's outlined how a flexible asset-like model has been crucial to managing overhead costs and utilisation and our ability to maintain agile and position for success. We've an unrivaled track record of controlling what we can control to protect margin in response to changing and challenging market conditions. The early and decisive actions we have taken are a strong example of that. The mixed quality and distribution of our clients is also important to us, We've a high degree of loyalty within our broad, blue-chip client base and around 90% of what we do is repeat business. These strong relationships mean that our client interactions are focused on partnering rather than purely transactional. They also position us well to unlock the significant opportunities in helping our clients achieve their own ambitions in the energy transition and achieving more sustainable infrastructure. As the world recovers from the downturn, we will need engineers to create the right solutions to the world's most critical challenges, not least across energy and the built environment. When it comes to energy transition, we're not simply positioning or building capability like some of our competitors. We're already delivering and earning significant revenue today. This snapshot of what we've delivered to date illustrates the point very clearly. with over 650 projects in wind, 100 plus of which were offshore. 200 plus solar projects over the last 13 years. 30 years of experience in carbon capture and storage, including establishing the best practice model for the UK through our engineering work for the OGCI on their flagship carbon capture and storage transport project. and leading-edge solutions in both blue and green hydrogen, pioneering modular hydrogen units and designing and delivering over 120 units to date. There's a lot of excitement around hydrogen and carbon capture, and to reiterate, they're not just a big part of the future, they're actually part of our past. Our technology and our track record of delivering projects at an industrial and commercial scale unequivocally differentiates us. Our playbook is unrivaled. I'm also very encouraged by the momentum we're seeing in renewables, which really helps to cement our position in the wider energy services market. I'll now share with you just a few examples of the great work we're doing. As discussed, a renewable business is both diverse and growing. In wind, we've supported over 600 projects, totalling 120 gigawatts. To put that in context, that's 20% of the total installed global wind capacity. In 2020, higher activity in solar and wind work will double the size of our renewable revenue stream in the Americas. Our solar business alone will deliver $500 million worth of revenue in 2020. In hydrogen, we're actively advising several clients on innovative solutions and recently completed work on a world's first project with SGN to use green hydrogen in homes. Of course, energy transition will also create opportunities that expand beyond our renewables business. It's also about helping our traditional clients get ready for the future. While the relative proportion of what we do in the oil and gas sector will reduce over time, oil and gas will remain an important part of our energy mix and will remain committed to that sector. Our focus is on engineering solutions for a net zero world, and enhancing the way we partner with clients. Decarbonisation is one of the most important opportunities for our business and the breadth of capabilities that ideally position us as a partner of choice for oil and gas and industrial clients looking to achieve their own net zero goals. We're already delivering some great projects with Equinor. We're integrating offshore wind to electrify the Snow and Goldfax platforms. With Ithaca, we're introducing an industry-first solution to make decommissioning of the offshore Jackie platform carbon neutral. Some of the biggest decarbonisation opportunities will come in retrofitting existing industrial clusters. I've talked about the work with the OGCI Humber Zero, the UK's largest and most ambitious project in terms of the volume of CO2 emissions avoided. And it's another fantastic example of energy transition in action. We're delivering concept and early design to integrate carbon capture technology with industrial sites, treating up to 8 million tonnes of CO2 per annum and then storing it under the North Sea. We're applying a range of technologies, renewable power to generate green hydrogen through electrolysis and blue hydrogen generation with integrated carbon capture. With our trusted clients, we're also moving to more collaborative strategic partnerships and innovative commercial models that offer greater reward for delivery. This is a big shift in the sector that is part of what we mean when we talk about building a premium differentiated business. A good example is a work with BP where we co-identified over 200 opportunities to improve the way we execute work both onshore and offshore. Since then, a dedicated team has been developing solutions aimed at increasing efficiency, productivity and reducing costs. The success of this project in the UK has led to a more extensive rollout of similar projects globally by BP. We also continue to grow in sustainable infrastructure development, including in the planning, design, build and operation of connected and resilient infrastructure across the world. In transportation, we're supporting Metrolink's and Toronto's transit system expansion and upgrade programme. This will improve mobility for the people who live and work in the city and in the wider Ontario region. Our flood risk management solutions are helping improve the resilience of existing infrastructure in coastal areas across the US, the UK and the British Virgin Islands. We're future proofing utilities by delivering innovative digital solutions to clients like Northumbrian Water to help optimise their water and wastewater infrastructure and improve reliability of water supply. We also have world leading capability in creating cleaner environments through remediation and other technical solutions. As the momentum to a cleaner planet continues to gather pace, we see even greater opportunity in the high-margin consultancy work in this field. This work, largely undertaken by the TCS business, remains a core focus of our efforts in 2020 and beyond. I'm really encouraged by the breadth of our portfolio, and it positions us well for growth in the medium to longer term. The outlook for renewables and other energy is positive. CAPEX budgets will be less affected by the impacts of COVID as clients seek to deliver their lower carbon strategies. Pockets of growth in solar and wind in the US that are driving and doubling the renewable revenue in 2020 are expected to continue. Longer term, we expect investment of new technology and government initiatives to support demand. Uncertainty over global growth and demand is pushing some investment decisions in chemicals and downstream to the right. In the near term, we expect increased capital projects activity in asset solutions AAA, but reduced activity in the Americas as existing projects such as YCI progress to completion. The combination of oil price volatility and impact of COVID has translated into significant cuts in upstream CapEx budgets and continued constraints on midstream investment. As a result, we expect upstream activity to continue to be subdued, with projects being initiated to smaller scopes and concept pre-feedback. The longer-term outlook will be dependent on the rate at which global demand recovers. Relative resilience in the built environment in the first half is expected to continue. While there is some risk in the near term that government contract deferrals, our opportunity pipeline is robust. And looking further ahead, we're well positioned for growth opportunities from fiscal stimulus packages, if approved, as well as opportunities from public and private sector bodies seeking to achieve their own sustainability goals. In summary, whilst the uncertainty around the impact of COVID and oil price volatility continue to feature in the near term, the breadth of our end market exposure is expected to continue to deliver relative resilience in two thirds of our business. Longer term, we see good growth prospects as the energy transition continues to gather pace and the world seeks solutions to more sustainable infrastructure and a more sustainable future. We've remained very agile and active and managed the shape of our business. We feel that through this journey, the platform which delivers today and positions as well for the future has been created. We're well-placed to grow as markets recover and benefit from opportunities to engineer solutions to achieve lower carbon energy systems and sustainable infrastructure. The chart on the far right gives an indication of the shape of our business in terms of markets and services we're establishing over the period to 2023. This is a business with a highly differentiated consultancy and project management capability combined with an enduring operational platform. This is a business that will serve the key energy and built environment markets whose growth is very much aligned to climate change imperatives. As energy transition gathers pace, we expect to increase the proportion of revenue derived from renewables, alternative energies and the built environment through the strategic cycle and to reduce the relative proportion of revenue derived from traditional upstream oil and gas markets. So in conclusion, We've talked to you about our resilience and our response to the challenging markets we find ourselves into today. We've also talked about the success of our strategy in delivering a breadth of end market exposure, which is driving revenue resilience and our early and decisive actions on cost. So these steps have really protected our business. They've ensured delivery, provided strength on our balance sheet and helped us win work, even in these most challenging of times. We've highlighted the strength of our strategic position and how our extensive track record and capability set differentiates us in delivering energy transition solutions. And finally, we've shared our thoughts on the future, pivoting towards growth in renewables and built environment and leading the pack on ESG. We have built resilience into the business by design, and this is allowing us to move forward with confidence in an uncertain world. We'll now take questions. Thank you.

Thank you. Ladies and gentlemen, we will now begin the question and answer session with Robin Watson, Chief Executive, and David Kemp, Chief Financial Officer. If you wish to ask a question, please press star and 1 on your telephone keypad. If you wish to cancel the request, please press the hash key. Once again, star and 1 for any questions. Over to you now, Robin.

Thank you, and good morning, everyone, and thanks for joining the Q&A call. I think it's worth, and I know we've just went through the presentation, just reiterating a couple of the broader themes from the presentation, just to set some context before launching into Q&A. So our first half performance, we feel, really demonstrates the successful execution of our strategy and the benefits of the business model across three broad areas. fronts. Firstly, the market exposure we have, which has driven revenue resilience. Secondly, the importance of the asset-light model and the actions we've taken to protect margins and reduce debt. And thirdly, the leadership position that we've attained in regard to ESG matters. The way we've repositioned the business over the last strategic cycles means we've already not just got the capability, but also the track record of delivery. to benefit from opportunities to engineer the solutions to achieve lower carbon energy systems and sustainable infrastructure. And it is worth just highlighting, you know, in bullet fashion, that track record. It's active delivery across over 600 wind projects. It's a decade plus of delivery in solar projects. It's technical advisor on something like 150 carbon capture and storage projects. It's 120 licensed hydrogen units over the past six decades, as well as a legacy in the built environment going back 40 years. We feel that listing really does differentiate us from our more traditional peer set quite significantly, and it's why we're excited for the opportunities that the increasing pace of energy transition presents, and it's why we have been repositioning the business over the past five years around this. So our strategy and our business model underpin our ability to continue to win work and protect margin in the short term through the remainder of 2020. And it's why we can talk to you with confidence about delivering medium-term growth and increasing the proportion of revenue derived from renewables, alternative energies and the built environment through this strategic cycle. So, hopefully that framing and reiteration is somewhat helpful. So, we'll now just open the line up to questions as per the instruction, please.

Thank you. Our first question is coming from the line of Amy Wong from UABS. Please, Amy, ask your question. The line is now open.

Hi. Good morning. Hope you're well. Had a couple of questions, please. The first one is a bit kind of bigger picture. on when you talk about your renewables energy business, could you talk us through how you think about the scope of work that's available to the energy services supply chain and why, you know, Wood Group has chosen to kind of, you know, the market that it's addressing, like why it's the best part to address, or would you actually consider expanding the scope of services that you can provide to this end market? So that's my first question.

Okay, Amy, you know, from a service perspective, I think what we've been quite clear on is focusing on our project capability, our consultancy capability, and our operational capability. So narrowing that down, and in the creation of TCS, we've obviously got a very high scale and high margin, you know, part of our business, which has been very resilient in the first half, as you can see from the numbers. In terms of renewables, I think the attractive thing for us is the fact that there is a good legacy there from what was an ARW footprint. You know, so we've got a strong track record in solar in particular. And then from a wood group footprint, we've had a wind legacy for a number of years, as you know. And that goes from EPC lump sum work right through to, you know, very high-end technically advanced consultancy work. I think I would broaden renewables, however, to look at alternative energies in the form of the hydrogen, carbon capture and storage, all in the space of kind of getting to net zero footprint. So I think from our perspective, we see it as an attractive market because it's got good growth potential. And if you look at the first half of the year, it's part of our business that's actually doubled in size despite COVID and the challenges of a global pandemic. As well as that, we've got a broader playlist that we feel actually fits very well with our great consultancy reputation. We've built that consultancy reputation. The hydrogen units became project delivery opportunities for us, and that's a really good balance across our portfolio. So that's why we like the sector. We see it as a high-growth sector with good potential. That's why we like our track record positions as well in it. It differentiates us. And from a service perspective, we've just narrowed the bandwidth on being very clear on the type of projects that we will and won't do, the type of operational services that we can provide, and obviously the consultancy part of our businesses are really exciting, you know, a new development over the last 12 months as we pull TCS together.

Just to follow up on that point, so with the capabilities that you have in-house at the moment, Does that enable you to potentially kind of expand and address more areas in those three spaces like solar, wind, and hydrogen? Or are you more kind of limited to what you can do and you just kind of repeat doing the same thing but doing it better and doing, you know, try to get more market share there?

I think it's a bit of both, Amy. You know, we're very clear on revenue synergies, so the kind of piece of, doing more is a really good hybrid and blend of pulling together, you know, our wind capability. It can be anything from live hour consultancy work that make individual turbines and turbine sets more reliable and more efficient and generate more power that's obviously sellable, right through to, you know, some of the wind work we've done in the U.S. this year's EPC lump sum project. So, in effect, we can do onshore wind from an open field and create development. So I think the breadth and the revenue synergies are one of the big overlaps of it. I think also, and we only need to look back five years, I mean solar now in certain parts of the world is a stand-alone commercial competition for what is traditional energy provision. So we do feel once you kind of break that Rubicon and you no longer need subsidized funding to unlock some of these new and different technologies in alternative energy, then the growth is significant because we do feel energy transitions here forever. The only discussion is what pace it goes at and how quickly these alternative energy sources and or net carbon, net zero carbon alternatives accelerate the market growth for them.

I think just to add to that, Amy and David, you can really look at the breadth of services we provide and it's over the full life cycle of a renewable project, right from initial concept, helping financing, development, right the way through, as Robin said, around EPC. Even we do some operations work in terms of control rooms around wind farms as well. We have quite a broad range of services right across the life cycle. Probably the only area, you know, we don't intend to get involved is obviously offshore installation, which, as you would expect, we're asset-light. We want to be asset-light. That doesn't fit.

All right, great. No, that's very helpful, Keller. Thanks, folks.

Thank you. And your next question is coming now from the line of Vlad Sergeevski from Bank of America. Please go ahead, Vlad. The line is open.

Yeah, thank you. Good morning, Rob and David, and thank you for taking my three questions. The first one on revenues. In terms of returning to growth, when do you think book-to-bill ratio could start approaching one time again, signaling a turnaround in revenues? The second one would be on cash flows. Given lower expected exceptionals in the second half and supportive working capital potentially, would it be fair to expect wood to be a frequent flow positive for the full year 2020? And lastly on renewables, how growing exposed to renewables is expected to impact your margin profile? The reason I'm asking here is that across many other sectors, renewables have already delivered a powerful revenue driver. but the effect on margins has been mixed. Thank you.

Let me start with that, and Roman can add to that. I think in terms of revenue and returning to growth, you know, as you know, we haven't given out any guidance for the full year of 2020. And so, obviously, we've not given out guidance for 2021. but we've tried to give you a number of data points. And one of those data points is that we've seen some stabilization of the market recently. And so what do we point to? If you look in, effectively, June, our book to bill was one. And so our backlog has stayed constant over the period. And if you look to the period before that, March, April, May, we'd seen a reduction in backlog. So work was either being postponed or deferred into future years. So we are seeing, we think, the early stages of the market stabilizing. And equally, you know, what we've also seen in terms of the first half is a really excellent performance from the business outside of upstream oil and gas. And so, you know, if you look at that 65% of the revenue, it's actually been flat on the first half of 2019. which in the challenging environment, you know, that we face is an excellent performance. And obviously an upstream in the remaining 35%, you know, we've been impacted by the volatility in oil price. So we do point to, we think there's some stabilization in terms of backlog. I think, you know, as we all know, and it's the reason we're doing this remotely, we are in the middle of a global pandemic. and there is quite a considerable amount of uncertainty out there, and we flag that there is still a risk of further work being deferred or postponed. In terms of the cash flow, again, we're pleased with the reduction in net debt, over $208 million since the end of the year, and we've also tried to give out guidance around what we think the full year impact will be around items such as provisions where we're seeing a very significant reduction compared to last year. Exceptionals, you know, we booked the charge in the first half. That's largely driven by redundancy and reorg costs of just over 40 million. And that, you know, we don't expect that to repeat in the second half in that you know, we've been very quick to get through the actions. And so we've delivered the 200 million in the first half. So the cost of delivering that 200 million is largely in the first half as well. So we do see our free cash flow opening up. And the guidance we've given out for the full year, we do expect our net debt to reduce further in terms of the second half. And then as we look beyond, you know, 2020, we do see those legacy items reducing further. And we try to give you a bit more color, Vlad, in the presentation. And we do see things such as the unwind of advances as not being a recurring feature of our business. I think we've been quite clear we benefited from that in 2019, which was great. It was great that our teams secured effectively excess advances, but that wasn't sustainable and we expected an unwind of that in 2020. And that that's happened, but we don't expect that every year. In terms of your third question, in terms of margin profile, again, we touched a bit in this in our trading update. Typically, we're not bidding significantly different margins in terms of renewables projects compared to other parts of our business, but it does depend on what type of activities So if we look at our consultancy margins, are they dramatically different from any other sector margins? No. If we look at our EPC margins, again, are they significantly different in terms of bidding margins compared to other industrial EPC projects? No. So we're not seeing that structural difference just now. As ever, the key for us keeping our margins up is around our differentiation. And again, we've highlighted some of the differentiation that we've got. It really is in our track record of delivery. We're not talking about stuff we could do. We've got long track records in delivering renewables and alternative energy projects. So that's a bit of a long answer, but hopefully covers your three questions, Vlad.

That's very helpful. Thank you very much.

Thank you. And our next question is coming now from the line of Mark Wilson from Jefferies. Please, Mark, ask your question.

Hi. Good morning. A few points from me. Good morning, yes. Just check if there is any expectation of disposals in the second half of the year and comment on the ethos situation at the moment. And secondly, David, it follows on from comments on short cycle works out there in the market. It looks like you'd have to add about 800 million new work in the second year to get to an 8 billion level that consensus seems to be around. Is that a realistic level, do you think, given that's what you added last year? And then lastly, you just mentioned lower unwind of advantages in future years? Is that because contracts are different or you just expect you much less lumps on EPC work in the future? Thank you.

Okay. Let me work my way through those. In terms of the disposals, again, to be clear, we, you know, we're not in any process around disposing of ethos. We previously flagged we were pretty mature on a turbine JV in terms of a disposal process, and that had been paused because of COVID. And so that is unchanged. It is still paused. And again, as we look forward, there's a reasonable chance of it proceeding, but there's also a reasonable chance of it not. It is in that pause phase. In terms of other As you work your way through the accounts, you'll see that we're selling a trading business in Kazakhstan, but it's very, very modest. That's the only two areas of disposal activity that's ongoing just now. In terms of the new work and around revenue, it's probably worthwhile me just looking at taking you through the overall picture again. So we delivered, you know, 4.1 billion of revenue in the first half. Within our backlog, we've got 3.1 billion of effectively revenue backlog attached to 2020, you know, so giving you the 7.2 billion. You know, in June of last year, we had effectively 90% revenue coverage at this point, and that would be a sort of normal level for us at the end of June. However, as we all know, this year has been anything but normal, and we do see a risk to both things slipping out of backlog. We've seen postponements and deferments, more postponements and deferments than cancellations, and that risk still exists and that uncertainty still exists. And that, at the heart, is why we haven't given out revenue guidance for 2020. But hopefully what we have given you is a number of the data points that set the range for that revenue. In terms of advances, if we look forward, we don't expect significant movements in the advances balance in future years. You know, we flagged, we had a really great outcome in 2019, and we expected an unwind of that in 2020. And, you know, that was hopefully well flagged to everybody. What we've also done is over the period 17, 18, 19, we've actually reshaped our portfolio in terms of the type of work that we want to pursue and, you know, that's largely around the risk-reward balance. Again, if we look forward, we don't see another fundamental reshaping of that risk-reward balance in terms of the proportion of lump sum work that we do going forward. So, all things being equal, you would expect advances to be being replaced with new work as we look towards next year. Again, it's worthwhile reiterating, and I know I've said this a number of times. Part of that reshaping is being very clear around expectations around our lump sum work that advances are a feature. Cash flow is very important to us. Last year, we were really successful in driving that, and it's a part of every discussion we have when we're bidding lump sum work. Hopefully, that answers your question. Sorry, Robert.

I was just going to add a couple of things because I think there's a... a few questions just around bad logging. If it helps you to add a wee bit of colour on it, you know, we continue to win work. You know, we won $3.3 billion worth of work in the first half of the year, which we're very pleased about. And for 65% of our markets, just to reiterate David's point, it's been pretty flat, actually. You know, the impact has been very limited. Obviously, with a significant impact in our upstream oil and gas market, it's what we've experienced the first half. To put some broad context, if we kind of top and tail it with an opportunity pipeline, that has remained actually quite resilient at the $50 billion to $55 billion level, and that's broadly our kind of rolling opportunity pipeline, unfactored. I think just to, again, emphasize a point that David made, The go, get, and when question is the one that just gives us a degree of uncertainty. However, we are experiencing good win rates across our business units, so there's no market share challenge that we are experiencing whatsoever, even in upstream oil and gas. We've got good win rates across our 3BUs, and we feel good about that. All that being said, there's just a broad range of potential outcomes as that big opportunity pipeline manifests itself in terms of ITTs and bidding opportunities. And we've just seen some decisions being, you know, kicked to the right. Our coverage for 2020 remains robust, to David's point, 90% revenue coverage. And the broader opportunity pipeline remains, you know, a very attractive one. and our win rate is solid. Just the range, second half of this year, going into 2021 with COVID-19 very much, you know, active across our world. It just gives us a broad range of potential outcomes.

Got it. No, very good answers, James, and very well done in a very tough quarter. Great performance. Thank you. Thanks, Mark.

Thank you. The next question is coming from the line of Kira Regen from RBC. Please ask your question, Kira.

Hi. Thanks for taking my question. First, on the EBITDA margin guidance, if you had to retain one factor that could drive your guidance before you to the upside or to the downside, what would it be? And I guess the second question is on renewables and a follow-up on the very first question of this UANET session, but can you just clarify your ambitions outside of America across the end markets that you've mentioned, wind, solar, and CCUS and hydrogen? Thank you.

Well, why do I think the margin and Robin can address here is renewables. EBITDA margin, we've been clear around what our objective is. Our objective is to try and keep our margin flat with 2019, which we think in this environment would be an excellent performance. In the first half, we actually grew our margin in two of our three business units. Again, we point to that being an excellent performance in those two business units. And in the third business unit, we had some challenges around execution. Actually, in the two business units where we've driven, you know, improved margin, you know, what's been the main aspects of that? Firstly, you know, great execution. You know, we've executed projects well. And so, as we look forward, you know, what drives good margin? It is good execution. And secondly, was the delivery of overhead cost savings and maintaining good utilization, so that call space. And again, if you look at the impact in TCS, TCS was earlier in terms of addressing costs because we effectively had flagged back in November of 2019 in bringing together TCS from STS and E&I, we saw some cost synergies. So they had an earlier start in terms of that cost work than EAAA did. And EAAA was more of a reaction to the environment we faced in March. And so you see the impact on the margin there. EAAA has gone up slightly, but TCS has gone up by over a percent, which is great in this environment. So again, if you map forward, what's going to deliver the 8.6 objective? It is going to be good execution. It's going to be maintaining good utilization across our business. And it is around benefiting from the overhead savings that we've already delivered. And so the overhead savings, given that they have been delivered, allows us to have confidence around driving improved second half margin.

On renewables, Kieran, we've got, yeah, we're very active on sector impact teams. So we do view our end markets with a global perspective. And it was one of the reasons that we created the TCS business to have a global consultancy and broaden that, if you like, you know, worldwide influence of our consultancy capability. What we've also had in the downstream world is a very good model of process consultancy definition work, giving you pull-through work from a project management, project delivery perspective. So we do have some models there that we are actively looking at how we globalize with more impact across these growth markets. As regards renewables, I would probably broaden that into alternative energy, and there's two ends of our offering here. One is at the consultancy end, which is already global. So the consultancy capability we have across wind, onshore and offshore, across hydrogen, CCS, and to a certain extent solar, the consultancy aspect of it is already global. So that's already unlocked from a global perspective. So it's a lower volume, if you like, higher margin proposition, and that's been a really key part of unlocking TCS and its footprint as a business unit. In terms of the project delivery, and I think it may be where your question was coming from, Kieran, that is confined to the US as we speak just now. So we're quite thoughtful on how do we globally unlock that with execution confidence in different parts of the world. What we'd like to ultimately be capable of is having full lifecycle across the globe. We're thoughtful in the EPC delivery, and if we are going to unlock that globally, we'll almost certainly need to look at our organizational structure to get that delivery beyond, you know, North America. So that's something that we're actively looking at just now internally as to the capacity of that market, the kind of, to be like that we prioritize in terms of potential growth opportunities and then look at the nature and balance of the customer set, confidence and delivery, you know, existing capability footprint and how we unlock that from a global perspective. So I think just now I would look at renewables. I would broaden it into looking at it as an alternative energy proposition from a consultancy perspective, be it wind, solar, hydrogen, carbon capture and storage. You know, the range of things we talked about today, that already is global, and there's been a variety of revenue synergies that we've achieved on the back of it. In terms of the project delivery, to your point, yes, that is confined to the U.S., North America just now, but we are thoughtful about how we impact what will be a large, growing global market. Again, with the balance of our risk appetite, you know, the risk we're willing to take on, et cetera. So that'll be all played part of our, you know, considerations as to unlocking the life cycle.

Thank you so much. That's very great on both questions. Thank you.

Thank you. Thank you. The next question is coming from the line of David Farrell from Credit Suisse. Please ask your question, David.

Good morning. Hi. Morning, David. I just want to delve a little bit more into carbon capture and hydrogen. So just on the carbon capture side of things, do you plan to remain technology agnostic? And do you think your expertise lies more in post-combustion capture rather than pre-combustion? And then just on the hydrogen side of things, in terms of the steam methane reforming technology you have, which I think came from Foster Wheeler. Can you kind of position that against the competition out there, why that product might be perceived as better and where you think you stand in terms of market share?

Yeah, well, so from a carbon capture and storage perspective, David, we've got, I say both of these areas, I say carbon capture and storage and hydrogen have both come from the Foster Wheeler market. heritage by and large. So that's a key component part. And as you know, you know, the global capability and where Foster Wheeler, you know, positions himself with some real operational credibility was around unlocking scalable commercial solutions to, you know, downstream with crackers and flame and fire heaters. And really that kind of, if you like, technical application has been something that's really at the core of their DNA. From a carbon capture and storage perspective, the challenge with carbon capture and storage, as we all understand, is doing it on a basis that's commercially viable and scalable on an industrial basis, that it becomes a reasonable way of reducing the carbon footprint. You know, what do we know? We know, for example, there's a real political role in the UK to be a world leader in being able to unlock that on a scalable industrial basis that's commercially viable. We've certainly got plenty of reservoir space, you know, in the form of the North Sea, so the storage side of it's not so much of an issue. From our perspective, we are very broad-based in terms of what we offer in the carbon and capture sector. and carbon capture and storage space. We've done a lot of conceptual studies, a lot of front-end engineering studies, and I think it is something that can only be solved as a proposition with companies like us that have got the technical wherewithal and know-how to actually industrialize and scale up on a commercial basis the technical proposition. I do think it does require intervention and some support, funding, from government in one of its shapes or guises because I do feel it's an inevitable part of the net zero journey. And it almost certainly requires some investment from traditional oil and gas players. And really that is the way it's played out in terms of how that market will unlock itself. So from our perspective, I think we can provide a technical component to that And, you know, we feel that there are progresses you can make from a technical perspective and from a logistical perspective that will make carbon capture and storage an attractive proposition, particularly as the net zero agenda becomes, you know, mission critical if it's not already. As regards the hydrogen footprint that we have, I mean, we're quite thoughtful across, you know, blue, green and grey hydrogen. So that would be the first thing I would say. It's not an immediate jump that the whole world goes to electrolysis and we take it from there. We don't think that's a feasible proposition. So there's a balance with doing what we do traditionally, which has been in the units that are designed and licensed by us. There's a very long history within Forster Wheeler of doing this and doing this successfully and see it from the largest train unit and looking at, you know, some of the more advanced stuff we've been doing actually in the UK just this year. I think we have a view that it will be a blend of all types of hydrogen. It will be viewed as a more attractive alternative fuel source than pure hydrogen. fossil fuels. So we do think that's the way energy transition will play through from a hydrogen perspective. And I think, you know, from our perspective, we provide, again, the technical part of that jigsaw. But actually, for blue hydrogen, it's perfectly economically viable and perfectly commercially feasible. So, again, we feel that that broad alternative energy agenda is inevitably something that's got tremendous growth potential for us. And we feel that we're very well positioned, you know, to unlock it. And probably hydrogen's a bit more advanced, albeit not necessarily in the green hydrogen. Again, the challenge of making it industrial scale and commercially viable remains there as it does with carbon capture and storage. But there's no doubt at all we're having the same discussions about these two technology unlockers as we were having about solar, you know, a decade ago. It's never commercially viable and subsidies have been supported. And then, you know, we've seen in that decade a very rapid development of solar such that it's perfectly economically viable as a standalone basis. It's free of subsidy in various parts of the world and it provides a very feasible technical alternative to, you know, traditional fuel sources. we feel carbon capture and storage and hydrogen to varying degrees with different challenges in them are both in that space.

Thanks. And just kind of staying on a kind of similar theme, interested to see kind of your position in Sustainalytics. Obviously, when you look at the emissions of the company, 68% come from the Martinez Gas Pavillon in California. Are there any plans to divest that

No, I mean, we've looked at our carbon footprint, and as you say, there's a Pareto analysis we can do in terms of the impact that we have. We'll be on a, what we see is, firstly, we took an absolute journey, so it's an absolute reduction in our carbon footprint, rather than a net zero kind of, pay your way out of it. So we felt that that was the right journey to take. It would be science-based scope reduction in terms of our scope one and two. And yeah, we've certainly got individual sites that are more of a challenge and give us more of a hydrocarbon footprint than we would ideally like. So we remain very diligent. We will certainly meet our target of 40% reduction over the 10-year period. And we're very thoughtful in the sites that provide the largest component parts of our footprint. And, you know, you specifically highlighted one individual site.

I think, David, you know, there's probably the broader point that we, you know, we try to highlight around ESG. Again, you know, we think our, you know, the work we've been doing with our strategy, some of the work we've set out in terms of targets and, you know, whether it's around carbon emissions, whether it's around D&I, whether it's around modern slavery, positions us really well from an ESG agenda. And we've highlighted, you know, a couple of the rating agencies, Sustainalytics, you know, put us in, you know, really in the top tier around the whole energy sector. And we have that leadership, AA leadership position as well with MSCI. from an ESG perspective, in terms of it being a differentiator against the wider peer set, we think it is. And it's embedded in our strategy. It's been embedded in our strategy for a number of years, and it will continue to be.

Okay. Thank you very much.

I think just to close the ESG point, the broader ESG point, we're thoughtful on our own green footprint, to David's question just there. And we're also thoughtful on what we call our green handprint, you know, helping our customers. And that's how we indicated in our presentation a good couple of examples where we're using alternative energy sources to provide power and doing that for, you know, conventional upstream oil and gas customers doing, you know, a carbon neutral, a net zero, decommissioning of the Jackie platform for NQS, you know, was in there for the North Sea. So we're quite thoughtful in both the green footprint and what we've notionally called internally the green handprint, you know, the effect we can have in helping our customers meet their either net zero or, you know, fundamental reduction of carbon footprint.

Thanks, David.

Thank you. Thank you. Your next question is coming from the line of James Thompson from JP Morgan. Please, James, go ahead. Your line is now open.

Hi, James. Great, thanks. Hey, good morning, Chaps. You know, firstly, thanks for the disclosure and the presentation on the cash flows. I think it's very helpful. You know, a question really around your slide 26 and thinking about this strategic cycle to 2023 and, you know, you're pivoting to growth. I really just wanted to see if we can get any colour understanding the kind of underlying assumptions there. You know, so I guess firstly in terms of the kind of 2023 ambition for the renewables business, you know, clearly you've been able to double revenues in that business this year, which is clearly a good result. I mean, should we expect a similar sort of clip in terms of growth rates to fit into this strategic cycle to 2023 and the ambition to get that back to or get that up to a billion dollar business? And You know, how much is that dependent on a kind of regime change in the U.S., given clearly what Biden and Democrats are saying about renewable energy sources? And then secondly, thinking about the growth outlook for the built environment business, you know, we think about that, I suppose, as you kind of coined it before, a GDP plus business. But I wondered if that was set to change with the potential for this massive US infrastructure bill coming through. Can that sort of supercharge that? And is that driving the growth you see in that business? And could it be a sort of 10% double-digit type top-line growth business over the next three or four years?

Thanks. Reluctant to jump onto the numbers and recognize the emphasis of the question. So if you can forgive me just to answer maybe the emphasis of the question around it, and it's Robin speaking rather than David. I mean, we do see the renewables and alternative energy market as a good medium-term growth market. So I think everything we've said to just qualify, you know, expectations, second half of 2020 there is a wide range of potential outcomes in the second half of 2020, just because we're still in the middle of a global pandemic. You know, we cannot understate that in any way. 21 million cases of COVID and two quarters of a million deaths and 20% of GDP in most of the developed world is a significant, you know, impact. So I just qualify around that. Do we, however, in the essence of your question, see renewables and alternative energy as a really attractive marketplace for us in the medium term? Is it an enduring marketplace for us to work in? You know, absolutely. You know, we've seen this year, even in the U.S., and particularly in the U.S., we've seen a double in our renewables business. You know, so I think there is room for improvement. confidence and optimism that that will be an enduring shift from an energy transition perspective and any of the modern we've done on energy transition renewable alternative energies and the drive to net zero and the kind of unstoppable momentum to a cleaner planet will actually give good legs and good investment opportunities in that particular sector and just I'd refer probably to my earlier commentary and has been very thoughtful in how we impact that you know, from a global perspective. I think in terms of the built environment business, we have tended to see GDP plus type growth. And I think there's a kind of yin and a yang to it in terms of if there is a stimulus program, a big stimulus program in U.S. infrastructure, then that would be a very encouraging market unlock for us. You know, I think it's maybe a bit less than certain, firstly, that there will be a stimulus to kind of a massive degree, you know, because I think there still is a volatility. And I think in the US, you know, we're seeing a lot of pockets of a second spike in COVID cases. So again, I would probably be a bit reflective on the second half of the year, because I think we will see, you know, local spikes, second wave, third wave spikes across the US is our kind of view of the world there, and that will cause a degree of disruption, you know, we're quite sure, so we're prepared for that. Balance with, you know, the built environment and stimulus, you know, we've seen it in the UK, we've seen it across Europe. You know, infrastructure, modernizing infrastructure and investing and build, build, build, build, jobs, jobs, jobs, is a bit of rhetoric that's kind of across the developed world that we do anticipate there will be some stimulus in the developed economies, including the U.S. in particular, to unlock that infrastructure market. As regards to numbers against it, James, you know, we're very reluctant to do that. You know, our base case, as we see GDP plus type growth, if there is a large stimulus package in the U.S. in very much a heartland of our built environment business, we'll, of course, I think, be well positioned to benefit from that. But I think there's a degree of pandemic uncertainty, political uncertainty and some challenges for us to get through in 2020 before we reach that point of finessing how we anticipated. But we do anticipate it being resilient and we do anticipate it growing as a base case.

Let me just add something to that, James. It's probably reflecting what we're trying to say. I guess what we're trying to to point out is a direction of travel. And it's worthwhile just recapping, you know, what that direction of travel has been and why, you know, we're on this journey. You know, since 2014, you know, we're around 90% upstream oil and gas. You know, today we're 35% upstream oil and gas. And what we're flagging is we expect that journey to continue. So we expect growth in renewables. And this year, you know, we've doubled the size of our renewables business, which is great. We expect the growth in renewables, alternative energy, and the built environment to continue to grow as a proportion of our business. I think you then get into, well, actually, why was that important back in 2014? Why is it important now? You know, actually, we were clear, you know, the volatility we faced in our business in 2015-16 was too high for us. we wanted to actually broaden our business away from upstream oil and gas and away from being so cyclical and so cyclical around upstream oil and gas. And I think you're starting to see the demonstration of that in our results. It's worthwhile just reiterating in 65% of our business, the revenues were broadly flat versus 2019 in the middle of a global pandemic. In upstream oil and gas, we've we've had almost the typical reaction of upstream oil and gas in a lower-priced environment where you have significant volatility in terms of price. And so we've seen significant falls in U.S. shale. We've had some revenue falls in the Middle East around our upstream oil and gas business. But the underlying reason was to take out volatility in our business. And we think the first-half result actually demonstrate that and why we've been on this journey and I guess why that journey will continue.

Thanks. That's very clear. David, just one follow-up, please, on an earlier comment. You said that when I think about the EBITDA bridge, none of that was due to changing pricing in bidding in the first half. Is there any reason to think that that will change at all in the second half or do you expect to continue to bid similar sort of pricing and margins in the second half to the first half?

Yeah, you know, there's obviously a generalization in this. You know, we're quite a broad business and we cover a range of markets. Generally, pricing wasn't a significant issue for us in the first half. And, you know, that would be our expectation that that would continue in the second half. And, you know, particularly around upstream oil and gas, that That was a difference to, you know, 2015 and 2016.

Great. Thank you.

Thank you. And your next and final question is coming from the line of Amy Surgeon from Morgan Stanley. Please, Amy, go ahead. Hi, Amy.

Hi there. Thank you for taking my question, and congratulations on delivering these results in quite a challenging environment, to say the least. I'll keep it fairly brief. So just to come back to some comments earlier, particularly around the renewable margins, I think a lot of your competitors are kind of also trying to move into the space and expand. And so when you think about sort of the margins going forward, are you factoring in that these could start to face some pressure or do you think that your kind of track record and differentiation can allow you to sort of maintain this higher pricing in that space. Thank you.

I think there is a degree of barriers to entry. We're well experienced. As you say, some of what would be our conventional peer comparators talk about energy transition and certainly have done that. None of them have been involved in over 600 Wind projects, none of them have a decade of delivery. And solar projects, you know, the carbon capture and storage footprint that we've had and the hydrogen footprint is one that's, you know, 60 years in the making. So I do feel in that alternative energy space, not only are we well positioned, in these marketplaces. We've got the customer relationships, we've got the reputation, we know what we're doing around the delivery model across the life cycle. So I do think these are significant barriers to entry to be quite candid. And there's a world of difference between talking about energy transition and implementing it strategically. And it's why it's taken us five years of quite a pivot in terms of you know, firstly addressing the upstream oil and gas volatility to David's point that challenged, you know, our conventional OFS peer group and sector and being able then to do the AFW acquisition, which, you know, helped accelerate access to some of these broader markets and then bring together the consultancy capability in wind, for example, that we had already in-house, with an EPC capability and wind that the AFW had, you know, had been partly developing that we've taken on. So I do feel there's significant barriers to entry. You know, the notion that an OFS company can just talk about wind transition, you know, energy transition, and then just appear in all these marketplaces would be the wrong one, would be our view of it. And it's been a long time in being established through a variety of heritage organizations. that we've got the footprint that we have. All that being said, we're never complacent. You know, we know the win rates that we want to get and need to get. You know, if our win rate's too high, we're not commercially astute enough is always our view of the world. And if the win rate's too low, we're not priced well in the marketplace. I am encouraged by what our win rate through the first half of 2020 has looked like right across our three business units. and we see plenty of opportunity out there. So I do think there's something of a kind of theme of energy transition, but it's one that we've been actively delivering against for five years. Now, for three years, there's wood, and the heritage is decades long, and you do go into the constituent parts of what makes up wood today, and that's quite a deliberate piece of positioning for us.

Great. Thanks very much.

Thank you. There are no further questions. Please continue.

Okay. Good. Thank you for calling in, folks. I hope that was a helpful Q&A and actually feedback on doing the presentation a bit differently because unfortunately, obviously, we've not been able to get in a room together this year. So any feedback on the presentation would be helpful. in terms of maybe it's better than listening to us in the room. I don't know. But feedback, always welcome.

Thank you, guys.

Thank you. That does conclude the conference for today. Thank you all for participating. You may now disconnect.