Frontline plc.

Dear all, thank you for tuning into Frontline's fourth quarter earnings call. I know it's been a busy day for at least those of you who are analysts. It's quite a few companies reporting today. I have a feeling some of the questions in the upcoming Q&A will be focused on the termination of the combination agreements with Euronav. But let's for now focus on Frontline and the smoking markets we've had in the fourth quarter. Although the implications of Russia's invasion of Ukraine caught most of the headlines, we believe from a tanking market perspective, China was the catalyst to frontline posting the best quarterly result in over 14 years. As we finally fired on all cylinders throughout the quarter and our lean and mean business model got to shine. Let's quickly look at our TC numbers on slide three in the deck. In the third quarter, Frontline achieved $63,200 per day on our BLCC fleet, $57,900 per day on our SUSEMax fleet, and $58,800 per day on our LR2 slash Afromax fleet. And finally, the inverted earnings relationship between our segments were at least temporarily reversed. So far, in the first quarter of 2022, we've booked 87% of our VLCC days at $58,300 per day, 77% of our ZeusMax days at a cool $72,400 per day, and 68% of our LL2 slash AfroMax days at a solid $63,900 per day. Again, all these numbers in the table are on a load-to-discharge basis, and they will be affected by the amount of ballast days we end up having at the end of Q1. Before I give the word to Inger, let's just quickly jump to slide four in the deck. I'll repeat a few key points on the frontline fleet composition. Frontline continues to hold one of the most efficient fleets in the industry, and our diversification has proven profitable for all our shareholders during 2022. Scrubber spreads continue to incentivize investments, hovering north of $200 per metric ton, and we are installing scrubbers on two additional wheels. We have only two wheels left without a scrubber. The average age of our fleet is a comfortable five years and Frontline is well positioned in CRI terms and also for the upcoming EU ETS considerations. I'll now let Inger take you through the financial highlights.

Thank you Lars and good morning and good afternoon ladies and gentlemen. Then let's turn to slide five. In the fourth quarter we achieved the total operating revenues of 353 million dollars and we had an adjusted EBITDA of 287 million dollars. We came in at the net income of 214 million dollars, which is the highest quarterly net income we have had since 2008. Then we had an adjusted net income of 215.5 million. The adjusted net income in the fourth quarter increased by 133 million dollars compared with the previous quarter and that was mainly driven by an increase in our time chartered equivalent earnings due to the higher TCE rates that Lars went through earlier in the presentation. This was partly offset by a general increase in expenses. We declare a cash dividend for the third quarter of 30 cents and for the fourth quarter of 77 cents. And the fourth quarter dividend gives a direct return of 17% on the share. As of December 31, 2022, we have revised the estimated use for life of our vessels from 25 years to 20 years, which is expected to increase the creation expense by approximately 59 million for 2023. Then let's take a look at slide six, the balance sheet. Total balance sheet numbers have increased with 227 million in this quarter, and the main drivers are delivery of Front Gaula, revaluation gain on the Eurona shares, increase in working capital, and also the net income that we earned in the fourth quarter. As of December 31st, 2022, Frontline had 556 million in cash and cash equivalents, including un-drawn amounts under our senior unsecured loan facility, marketable securities, and minimum cash requirements. Then let's move to slide seven, and let's take a look at cash flow potential. We estimate average cash cost break-even rates for 2023 of approximately $27,000 for VCCs, $21,500 for sluice maxes, and $17,600 per day for LR2 tankers, with a fleet average estimate of about $22,300 per day. This average estimate includes dry dock of two Wilson Seas and one LR2 tanker in 2023, all in the first quarter. With respect to operating expenses, we recorded $8,800 per day for VLCCs, $7,600 for series maxes, and $8,700 for LRQ tankers. And we dry docked two vessels in the fourth quarter, that was one VLC and one LRQ tanker. Looking at the right-hand side of the slide, We saw free cash flow in millions and per share after debt service basis currencies and operating CTC rates. If we look at assumed VLC-TC rates of $75,000 per day with five-year historic spread to VLC-C for SUSEMax and LRQ tankers, The annual free cash potential will be more than $1.4 billion or $6.46 per share. And with that, I think I leave the word to you again, Lars.

Thank you, Inger. Yeah, we are in kind of a market where the potential is substantial. If you move to slide eight, I'll just recap what happened in Q4 in the tank market. You know, I have the title here, sneak peek of what's to come. I think it's probably not a secret that we are tremendously bullish for the next couple of years. And during the quarter, all segments from panel of praise performed. It was finally the turn for the VOCCs to shine. the average weighted market earnings for tankers are actually flirting with 2004 highs so you see in this in the chart below on the left hand side with the yellow column And I think kind of in general the market hasn't recognized how substantial Q4 ended up being. And why this is the average weighted earnings for all tankers and obviously what's happening on MRs, on LR1s, LR2s, FRs, AN2s and VLCCs together. has made this possible. We are in market conditions where it's not only the VLCC outperforming, it's basically all segments outperforming. Chinese imports are back above pre-COVID levels, hovering around 10 million barrels per day. And the VLCC shipments to China are actually at all time high. And I would like to say the big ships are back. During Q4 we saw the G7 crude oil price cap come into effect on December 5th. We have seen already a lot of crude oil and fuel oil being redirected to, you know, around Europe, to Asia and Middle East predominantly. So the effect of the 5th of December cap was somewhat muted. We also need to keep in the back of our head that during the mild winter in the northern hemisphere, oil prices were also hovering below or around 80 dollars per day, making Russian crude comfortably priced below the price cap. Let's move to slide nine and look at what we believe is the three major themes as we embark on again this upcycle. First it's oil demand. As long as we have oil prices in the area where we are now hovering 80 to 90 dollars per barrel we believe oil demand will continue to be fairly strong. If you look at the chart at the bottom left, this is from EIA, it's kind of a confusing chart, it goes in one direction, but it shows a lot of volatility going forward, but By the end of 2024, EIA expects global oil consumption to be more than 4 million barrels per day, higher than where we are now. Asia, and in particular China, is expected to be the key driver as China is returning from COVID lockdowns. The second big part of this equation is obviously fleet supply. And total tanker fleet growth is set to turn negative during 2024. This has not been seen since 2002. And if you look at the middle chart below, you'll see the columns for the various years of growth. And as we kind of go through 2023, we expect to have about 3% growth in the total fleet of tankers globally. That will be reduced to 1% in 2024, and it will actually turn negative during the year. And in 2025, the overall fleet is expected to reduce by 1%. A change in trade dynamics may actually accelerate this. Right now, 12% of the tanker fleet is above 20 years. We've had very limited scrapping. and the ships are in fact trading kind of beyond their expected lifespan. So obviously any regulatory changes or any initiatives in this respect could accelerate the fleet reduction. World seaborne trade, and this is the bottom right hand graph, is expected to grow by 67% annually over the next two years. This is a function of the key demand centers being in Asia and key production growth coming out of US and Latin America predominantly. The overall order book stands at 5% or actually slightly below. And now we're looking at delivery windows in 2026. Let's move to slide 10 and look at a bit further on the order books. During last year, we had the lowest contracting activity in decades. If you look at the graph on the top left-hand side, you will not find one column since 1996. And this is the history I actually have available. That is lower than around 7 million deadweight tons that was contracted in 2022. And as we go into 2023, this activity continues to be muted. If you look at the VLC, fleet isolated there are now during 2023 will have 112 VLCCs passing 20 years. That will be 13.2 percent of the entire fleet. The order book stands at 28 units and that represents 3.3 percent of the existing fleet. If you look at the Suez Maxis, this is even more pronounced. By the end of 2023, 85 vessels will be above 20 years. That represents 14.5% of the fleet. The order book is that the model is 10 vessels, and that represents 1.7% of the fleet. The LR2 market, it's a bit more balanced. There's a few more ships on order, but they have the same age profile. So of the about 400 LR2s in the world, 25 will turn 20 during 2023. That represents about 6% of the fleet. The order book is currently at 51, and that represents 12.8% of the fleet. A point that I made before on the LR2s is that the effective kind of age of an LR2 or the effectiveness of trading on LR2 starts to be reduced after it turns 15 years due to quite a few charters limiting their charting activity for vessels that go beyond the 15-year threshold. If we then move to slide 11, And we're going to look at some of the key exporting regions and what the state of the market is. I mentioned earlier that the three major themes are with the oil demand, fleet supply and distances. But in order for demand to be kind of sufficient supply, we need production as well. World crude oil exports are now back to pre-COVID levels finally. We're hovering about 42 million barrels per day of ocean-going volumes. That's just north of 40% of global oil production. West Africa continues to struggle, but saw modest improvement in the fourth quarter. Latin America is becoming an increasingly important export region. and in particular Brazil and recently Guyana are the keys for growth. Russian exports are surprisingly resilient and exports are back to pre-invasion levels. I think some of the statistics there may be colored by kind of increased exports ahead of the 5th of December price cap, but still Russia still seems to find home for its crude. U.S. exports continue to be firm and we're particularly surprised after the SPR releases stopped during November in or more or less stopped during November last year. U.S. continues to be the region where we will see production increases and over the next couple of years U.S. alone will actually represent close to 80 percent of new oil coming online globally. Then if we move to slide 12 and go through the summary. So Frontline reports the highest quarterly net income since 2008, a cool $240 million. Our cash dividend, which is obviously the combination of Q3 and Q4, is $1.07. We took delivery of the three remaining VLCC new buildings from Hyundai and sold one VLCC and one SUS Maxis, both 2009 builds. As far as we see it, China took center stage in the fourth quarter, and imports to China are back to pre-COVID levels. Oil demand continues to recover. There is limited fleet supply, and an increasing tonne mile demand are the key drivers for the years to come. We continue to believe that Frontline's efficient and transparent business model will generate shareholder returns. And with that, I would like to open up for questions.

Thank you. As a reminder, to ask a question, you need to slowly press star 11 on your telephone keypad and wait for a name to be announced. To withdraw your question, please press star 11 again. Please turn back or we'll compile the Q&A roll start. This will take a few moments. Now we're going to take our first question, and it comes from Lan of Mar Nocta from Jefferies. Your line is open. Please ask your question.

Thank you. Thanks, Lars. Thanks, Ingrid, for the update. You know, clearly a lot of positive themes developing here. You touched here on the last slide, Lars, about the new building program now being, you know, officially complete with the delivery of these final three VLCCs. You did sell a couple of older tankers, the SUAs and the APRA. What are you thinking about? front lines fleet here strategically as we move forward? You know, absent large-scale M&A, how do you think about the fleet from here? It's the first time in many years, I would say, that you don't have an order book. Do you look to sell more ships in this market? Do you replace the ones you sold? How are you thinking about that?

It's a very good and timely question. You know, what we've kind of What we're observing is that asset prices are moving a bit ahead of the markets. To defend investing in, say, a new build, if you look at the VLCCs, you need closer to $50,000 per day of earnings consistently for the next 20 years to make 15 to 20% return on the investment. so so we we feel that you know as the prices have moved maybe ahead of of of times of of time charger rates and spot rates so we don't really have we're not comfortable and also secondly due to the the lead time to receive a new building you know you probably wouldn't get it until 2026 You know, you have two and a half years there of substantial kind of asset price risk should something happen to this market. On the resale side, the prices continue to be elevated. And again, you know, the spot and the TC market doesn't give us kind of the returns we were looking for. And then again, we have some assets in our portfolio that probably we should consider selling due to the high kind of asset prices. The thing is that, you know, the earnings potential remains so high on these kind of more mature assets to call it that, that we are a bit split minds. You know, are we just going to continue and harvest? and keep these units on as long as they make a lot of money? Or are we going to take kind of used opportunity here at elevated asset prices and take a profit on these assets? All our assets are actually fairly okay from a CII perspective, so we're not too nervous about that. But I think kind of the question you're raising here is probably the question most chip owners are asking themselves.

yeah that's an interesting one uh yeah lots of different ways to to look at this but expensive um as you mentioned the the return profile needed uh so on new buildings at least so then um you know maybe as you kind of hinted at early on the call about you know the discussion of the combination uh with uranav to the extent you can you can say uh anything about this but you know the you know clearly there are lots of change here over the past several months um When it comes to Euronav, for instance, can you envision revisiting that combination or that merger if for somehow CMB were no longer either involved or no longer an obstacle? Just simply wanting to know, as you think about the termination of the agreement with Euronav, is that just simply specifically because of the CMB situation or is there something else?

Well to do the last part first, which basically or probably answers the first part of the question. So it was not only the CMB blocking position that triggered the termination. There were also certain legal requirements that weren't in place. So I think the blocking position was one of the major reasons our board decided to terminate, but there were other factors, legal factors in play as well. As it is right now, a combination of Euronav is off the table. But obviously, you know, there could be a scenario in the future where that discussion comes up again. But as it is right now, you know, there has been absolutely no discussions with Euronav since the termination in this respect, and it is firmly off the table.

Got it. Well, thanks for that color, Lars. I appreciate the time. I'll turn it over.

Thank you.

Thank you. Now we're going to take our next question. And the question comes to the line of John Chappell from Evercore ISI. Your line is open. Please ask your question.

Thank you. Good afternoon. Apologies for the minutiae of this question, but it's pretty important. So your dividend policy, you know, we're back to paying dividends, and I think with the ruling on February 7th, kind of all handcuffs are off. You can do whatever you want to do with your cash. If we look at the third quarter and the fourth quarter distribution based on adjusted earnings, it looks like about an 80% payout ratio. So the first thing I wanted to do was, you know, confirm if there is a – an actual payout policy that we can model to 70, 80% off adjusted earnings. And then the second part of it is this depreciation reset that you're doing where you're adding 59 million in annual depreciation. That's not cash, but it is earnings. So does that mean that the payout would potentially be pegged to cash as opposed to EPS going forward because of this DNA reset?

Let's take the first first. There is actually no set payout policy in stone, if that's what you mean, but I guess you can use the 80% that we have been paying now for the last quarter. That's a good estimate. But obviously it will be the board that will decide that going forward. With respect to the depreciation policy, I wasn't sure I got your question, but could you please repeat?

Yeah, sure. So if your payout policy is based off of net income, adding 59 million of depreciation is pretty meaningful. It's over 50.

It means probably five, six cents a quarter in a way. It's not more than that.

Hello? I think we lost you there, John. Did we lose you? Okay.

Thank you.

Now we're going to take our next question.

And the next question comes from from Deutsche Bank. Your line is open. Please ask your question.

Hi, everyone. This is Chris Robertson on for a minute. Thanks for taking our questions.

Hello. Hi, Chris.

Hi. Yeah, you spent quite a bit of time here in the presentation talking about the older end of the fleet. And I think it's an important question moving forward. So in your mind, the owners with vessels over 20 years of age, do you think that they're simply going to ride out this current cycle and then exit the market? Or do you think these owners will engage in fleet replacement ordering at some point in the future? So I guess in other words, how much of the older end of the fleet is likely to get replaced at some point versus simply just going away forever?

Yeah, that's again a very good question. I think if we start with the, you know, the older portion of the fleets, we have, you know, two brackets of fleets. You know, we have the absolute dark fleet, the one who have gone completely rogue and trade and sell in an Iranian crude. that basically is a fairly large portion of the 20 year plus fleet and they are probably not going to reinvest in modern tonnage at any point in time they're probably just going to ride these assets as long as they float then we have the more kind of mature ships you know if you probably hovering around 17 and a half years, which we now tend to call the gray fleet. A large portion of this fleet is currently being engaged in trading of Russian crude and products. Again, I think the same goes for this fleet as well. In the future, where hopefully there's peace in Ukraine and the trading patterns normalize, I would envision some of these owners just exiting the market altogether and probably not doing much of a replacement. So I think kind of where you're going to see the replacement activity is with normal compliance ship owners as ourselves as assets come to age. And we are in the industry for the long run, meaning that we're actually going to be here for the next 20 years as well. And so it's going to be actors like ourselves that are probably going to make up the order book at some point. But again, back to Omar's question in the beginning here, we need the economics to work to make that financial decision. And you could say that we've had inflation on asset prices, we have inflation on wages, you know, actually certain countries struggle to even get workers into the arts. But what we really need now is inflation on rates because the rates are simply not high enough to defend that investment at this point.

Okay. That leads into an important follow-up question, I think. You mentioned the yards here and the labor shortages. So my understanding, and correct me if I'm wrong, is that the limitations on shipbuilding capacity at the moment is more to do with a lack of specialized labor than it has to do with a lack of infrastructure. So in your mind, what – I guess what is the likelihood that certain governments either engage in stimulus or try to revitalize their shipbuilding industries or try to incentivize training of laborers that could help kind of offset that in the future?

I think that's Very likely and particularly in China who is you know met short hydrocarbons in general they have a huge incentive kind of from a government side to try and revitalize you know the the shipbuilding industry. And we're actually already seeing that a couple of yards in China that are kind of getting back online again, obviously to a modest degree at this stage. But if you look at orders that can be placed in 2025, these are predominantly Chinese yards. For Japan, it's a structural issue. I just learned that the average age of a Japanese a shipyard worker is 57 years. I'm only 62 myself, but I wonder how much steel you want to cut when you reach 60. And Korea, extremely efficient, high technology. They actually have a higher margin building LNG carriers or VLDCs or even container ships. It's a difficult, I can't really give you a straight answer, just the color I just gave.

No, that's really interesting color. Thanks for that, Lars. I'll turn it over.

Thank you.

Now we're going to take our next question.

And the next question comes from Greg Lewis from VTIG. Your line is open. Please ask your question.

Hey, thank you, and good afternoon and good morning, everybody. Lars, you know, I was hoping you could talk a little bit about the market, and really, you know, I guess some of the questions that we've been having and we've been hearing from investors is, you know, the market is, the VLCC market is strong, and really some of that strength in the market more recently has come in the face of really lower crude exports out of the Middle East, i.e. Saudi Arabia. And we can appreciate that China is absolutely importing more crude oil. But I guess we're kind of wondering, is there a little bit of a zero-sum game in there where if China's importing more, it just means another Asian producer or Asian consumer is consuming less? And really, just kind of any color you have around the strength in the market,

despite opec slowly ratcheting down production um of course greg um basically what we witnessed during 2022 was obviously it was a smaller segment that started to perform uh you know in the mr segment first then lr1s then lr2s LR2s that were trading dirty were cleaned up to trade products. That pushed kind of Afromax demand up. And then the Suezmaxes started to have a field day on Afromax stems. And the VOCC started trading Suezmax stems. So you are right in a way that a lot of the demand for VLCCs currently is actually what you typically would call a SUSEMAX trade, US Gulf to UK Conf, for instance. We've seen a large activity and high amount of fixtures where VLCCs are actually stepping in. We also saw it briefly in Q1, as soon as the West African market for VOCs started to become a bit shaky, the VOCs were quickly to cap the SUSEMAX earnings. So to try and make sense of it, I think the situation around oil being redirected from Russia to, you know, from going to Europe, being redirected to Middle East and Asia, you're basically seeing both Afro-MAXs and Suez-MAXs getting drawn into that trade, limiting the amount of natural ships in those markets, in the compliant markets. That has given the VOCs opportunities to enter that market and, you know, basically have good returns in that market too. So it is a bit of, you know, the various asset classes in eating into each other's business segments and you're right in saying that for pure kind of traditional we also see trade there probably isn't enough oil to engage the fleet fully at this point but you know it's it's uh this is going to move back and forth in in cycles i believe as we proceed um and i think it was quite encouraging to see where everything bottomed out in the first quarter where uh we're still uh very solidly north of at least our cash break events uh when the markets turn okay great you know that's super helpful and then

Another question that I think people are wondering around, and I know there's not an easy answer here, is around the Dark Fleet. I mean, clearly everywhere you read, I guess sanctioned cargoes are still moving. I guess I'll ask it this way. Do we have any sense for how many vessels... Obviously, excluding the Russian flag fleet or the Russian-owned fleet could potentially be in that market. And really, as vessels are in that market, is there any way to kind of gauge? what the utilization of those vessels would be and say if I'm trading in I guess a dark type fleet I'm assuming that's less efficient but you know kind of any color you have around there I think would be helpful yeah regretfully it's going to be a bit of guesswork and your guesses are better than mine

But first I'd like to say that just with the grey fleet and the fleet trading on Russia, that is still a good quality fleet, trading in accordance with the IMO rules, well-maintained ships and so forth, although they may be a bit challenged by age. So I would kind of leave that aside. On the dark fleets, I've seen estimations of five to six percent of the BLCC and SUSEMAX fleets being engaged in that trade. If you look at the efficiency, if you call a compliant modern wheels to sea a 100%, I would say these ships are probably a 30%. We've previously modeled the overall wheels to sea fleet in that manner, where we would say that a over 20-year vessel that has an owner you've never ever heard of, you would attach the 30% efficiency to that ship compared to, say, a dark, sorry, gray fleet Russian trader who probably only get the 50 to 60% efficiency out of the ship basically due to the limitations in the compliant market a ship with Russian history has. And thirdly, the modern compliant normal velocities that we own will then be 100% and if you do that exercise you would even see how the fleet growth is or rather the fleet is not growing anymore and it's actually the capacity to freight oil globally is being reduced as we go forward on the dark fleet the ones trading illicit barrels I don't think that fleet is growing as much as it did for the last couple of years. That is obviously good, but it's also scary as it is growing older. And mind you, these are ships that are not being properly maintained. So we're probably getting closer to an environmental disaster at some point here.

Okay. Well, hey, thank you very much for the time and have a great rest of the day. Thank you.

Thank you.

Dear Mr John Chappell from Evercore, if you have any further questions, please kindly press star 11. Now we're going to open the next line. And the questions come from John from Evercore.

Your line is open. Please ask your questions.

Thank you. Sorry. I don't know what happened there. Yeah, it's probably my fault. Just to revisit that topic again, and I'm sorry. I know it's only $0.07 a share, but I just wanted to know, like, with the depreciation going up so much, it's going to have an impact on earnings. So, you know, front lines historically – been a dividend payer based off of net income. I was just wondering if that may shift to from free cash flow, given the fact that the depreciation is changing by so much.

Now, as I'm going back to why we have done this then, I mean, what we have done in a way is to just reassess the useful life of our vessels. And we believe in a way that 20 years is a more realistic estimate of useful life than 25 years is. So that is why we have done this change and if you look at many of our peers they already have 20 years so this is not only us in a way it's a kind of common thing and what I said with respect to numbering so if you just divide it by four quarters so you obviously get to that you The number using a payout policy of 80% would be about 5 cents per share. So that's what you're talking about.

Okay, thank you. And then you paid down 60M of the HEMN facility. I think there's some use of proceeds from those vessel sales. With the cash that you're generating illustratively based off of this year, do you foresee a more aggressive paydown of debt and especially the Hammond facility just with cash from operations, or do you think you need to sell more older tonnage to kind of accelerate that to leveraging?

We have not made any specific plans of further repayment of the Hammond facility or the Sterna facility, which actually is called. It's in May 2024, and that's it in a way. Okay.

Well, thanks for letting me back in. Have a great day, guys.

Thank you. Thank you.

Now we're going to take our next question.

And the next question comes to the line of Amit Mehrotra from Deutsche Bank. Your line is open. Please ask your question.

Hi, this is Chris Robertson again. I'm just going to try to sneak in one last question here as it relates to Chinese demand. You know, there's been an impressive demand recovery so far. I guess, how much further do you think this can go just based on post-COVID recovery? And then in the coming years with the new refinery additions that are being added, where do you think that overall Chinese import demand can shake out over the coming 12 months?

I'm not... that sharp as an oil analyst I must admit that we have seen China act quite aggressively in periods where they feel that the oil price is discounted and they're preparing kind of for increased demand domestic demand it's And I believe the highest we've seen from China is around 13 million barrels per day of imports in a sustained period of time. It's difficult to say. What I'm hearing a little bit is that I did allude to some of the oil production growth or oil export growth that we've seen and we're back to pre-COVID levels. China is not back to pre-COVID levels in terms of domestic demand. They actually have a very big and high consuming airline market internally in China. And as we kind of go towards the summer where Europe is going to recover, we're going to go on holiday too, so are the Americans and so are then the Chinese. I think that's going to be quite exciting considering the fact that the oil production levels are not really higher than what we had and we're missing a couple of years of normal demand growth which historically at least has been between one and two percent per year so I do subscribe to those that are quite bullish oil prices in the second half of the year And I'm a bit worried about how the supply and demand picture is going to look once China is fully up and running again. Obviously, OPEC has spare capacity, so they can still supply China with more barrels. But, yeah, I'm looking forward to see how that story evolves. We also need to keep in mind here that although China has imported a lot of volume, they're also exporting a significant amount of products. That will obviously stop when domestic demand catches up. So, yeah, it's going to be an interesting one.

Yeah, definitely very interesting. Thank you for that. That's it for me.

Thank you. Thank you, Chris. If any participants would like to ask further questions at this time, please kindly press star 11 on your telephone keypad.

There are no further questions at this time, and I would like now to hand the conference over to our speaker, Mr. Lars Bastad, for closing remarks.

Thank you very much again for dialing in and listening to our Q4 presentation. Frontline management is always available should you have further questions over the coming weeks. I would like to obviously thank the frontline organization for a fantastic result and a fantastic quarter. Thank you.