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spk00: Today's conference is scheduled to begin shortly. Please continue to stand by and thank you for your patience. Thank you. Hello and welcome to the Entity Incorporated Fourth Quarter 2021 Conference Call. I would now like to turn the call over to James Doyle, Head of Corporate Development and IR. Please go ahead, sir.
spk03: Thank you for joining us today. Welcome to the Anetti Fourth Quarter 2021 Earnings Conference Call. On the call with me are Emanuele Loro, Chief Executive Officer, Robert Bugbee, President, Cameron Mackey, Chief Operating Officer, Hugh Baker, Chief Financial Officer, David Morant, Managing Director, Sebastian Brook, Chief Operating Officer of CJAX. Earlier today, we issued our fourth quarter earnings press release, which is available on our website, committeeinc.com. The information discussed on this call is based on information as of today, February 23rd, 2022. It may contain forward-looking statements that involve risk and uncertainty. Actual results and events may differ materially from those set forth in such statements. For a discussion of these risks and uncertainties, you should review the forward-looking statement disclosure in the earnings press release issued today. as well as the NETI Inc. SEC filings, which are available at netiinc.com and sec.gov. Call participants are advised that the audio of this conference call is being broadcast live on the Internet and is also being recorded for playback purposes. An archive of the webcast will be made available on the investor relations page of our website for approximately 14 days. We will be giving a short presentation today. The presentation is available at netiinc.com on the investor relations page under reports and presentations. The slides will also be available on the webcast. After the presentation, we will go to Q&A. Now, I'd like to introduce our Chief Executive Officer, Emanuele Loro.
spk04: Thank you, James. Good morning and afternoon to everyone. Welcome to this fourth quarter 2021 earnings result call and the first with a fully integrated CJEX. Starting on the commercial side, we have seen the contract backlog on our existing fleet growing substantially. Since November last year, we've added nearly $90 million of additional revenue backlog, bringing the total to 193 million if we include the options. We anticipate this important metric to continue to strengthen through the year and beyond as the market tightens further. On the debt front, we recently announced our new 175 million green multi-currency term loan. This facility reduces our interest costs, welcomes new lenders, and completes the repositioning of the company's balance sheet. As per the operational side, during the fourth quarter, we have executed our option to construct a second international WTIV vessel at the SME for delivery in 2025. This is in addition to the previously announced original order. And more recently, CJEX has opened its operational base in Virginia Beach. This office will provide support to our partner, Dominion Energy, in the construction and the operation of their vessel. Their vessel will be the first Jones Act compliant wind turbine installation vessel. We continue to believe that the U.S. will be a high growth market for offshore wind. and the lack of an additional Jones Act-compliant vessel on order will further tighten an already undersupplied international market for the remainder of the decade. This is our view. The best years remain ahead of us from a supply and demand perspective, and tenders from new regions reaffirm our confidence in the demand for offshore wind through the end of the decade. That said, as far as we're concerned, this year we will install 145 turbines, which will generate over 1,000 megawatts per year of renewable energy and have a lasting contribution to a greener future. We remain excited about the outlook for offshore wind and our role in the transition to a cleaner and more sustainable future. I will now turn the call over to James Doyle, who has recently been promoted as to the role of head of corporate development and IR. He will go through a brief presentation. James, congratulations, and the floor is yours.
spk03: Thank you, Emanuele. I'm going to start on slide seven. Revenue backlog and project pipeline. Since November, Anetti has increased its revenue backlog by 76.4 million and 86.6 million, including options. The increase was driven by several new contracts on our NG2500s in securing employment for the CILA in 2023. This also excludes any contracts we are currently tendering for in 2022 and 2023. The contracting cycle for the NG2500s is shorter and closer to project start time. If you recall, at the end of last year, we had yet to secure any firm contractual backlog for the NG2500s. Sebastian, Blair, and the Sea-Jaxx team have done a great job securing contracts for these vessels. We're optimistic about the outlook and future employment of these assets. In February, the Sea-Jaxx Scylla arrived in Taiwan to start work on Orsted's Greater Chang Wah offshore wind farm. The Scylla is expected to install 111 Siemens Gamesa 8-megawatt turbine, after which the vessel will begin its 2023 contract in Europe with Van Oord. The Zerotan is contracted to install 22 4.2 megawatt turbines at the Akita Nishiro offshore wind farm in Japan. The start date of the Zeritan has been moved back from April to July this year. Slide eight, significant growth in the offshore wind and limited WTIV supply. One of the most attractive parts about this industry is the outlook. Offshore wind is expected to grow at a compound annual growth rate of 18% through 2026. This year, we have seen additional tenders in new regions which support our view of a continued increase in demand for offshore wind beyond 2026. As Emanuele mentioned, the best years are ahead, but we are pleased with the contract coverage we've added for 2022 and 2023, and there's still more to go. While demand for offshore wind has increased, supply has remained relatively subdued when compared to future demand. We are optimistic. especially on pricing and how it evolves by 2024 when there is demand for 19 vessels against supply of 20. As turbines have increased in size, the growth in vessels capable of installing larger turbines has been modest. After 2024, the demand for 12-megawatt-plus capable vessels exceeds supply, and this sets up nicely with our two new builds delivering in the second half of 2024 and 2025. Slide 10. Fourth quarter revenue was $16.6 million, a decrease from $65.7 million in the second quarter, but expected given the conclusion of contracts on our largest vessels, the Scylla and Zeritan in Asia. We were expecting slightly higher revenue for the fourth quarter related to a payment on the Zeritan, which is expected to come at some point in the first half of this year. Daily vessel operating expenses increased on the Scylla and remained elevated on the Zeritan. This is primarily due to higher crewing and travel costs, which increased around 50% due to COVID. We expect these costs to decline as COVID eases, but we recommend using a daily OPEX of $50,000 a day for the Xeritan and Scylla and $20,000 per day for the NG2500s in the first half of this year. G&A came in higher than expected due to certain one-time expenses related to employee severance, accelerated restricted stock amortization, higher G&A from the integration with CJACs, and unaccrued employee bonuses to CJACs and Anetti. The cash G&A is expected to be $7 to $7.5 million per quarter going forward. To the right, you can see the estimated contract revenue by quarter for 2022. This excludes contracts under discussion and project costs. In addition, we've provided a breakdown of expected project costs by quarter. Project costs are not rebuilt to the client. They are included in the overall contract amount. The cash flows in our business can be lumpy and often pertain to a milestone of a specific project. While this does not change the full year revenue figure, it does impact the timing which can move between quarters. We've tried to simplify and improve the transparency of this by providing quarterly estimates. Slide 11, our new loan facility. Our new $175 million loan facility completes the restructuring of the balance sheet inherited from CJACS. The facility has many positive features. It's green, multi-currency, has a revolver, performance bond component, and it amortizes, which allows the company to de-lever over time. In addition, it reduces the interest costs of the company. After drawing on the new loan, we will repay the remaining $53 million in redeemable notes, and it will be the company's only credit facility. To the bottom right, you can see the expected CapEx payments on our two new building vessels by year, as well as the expected debt drawdown on the vessels upon delivery. We expect the new builds to be financed at 60% of their contracted value. Slide 13, investment highlights. Anetti is a leading owner of the wind turbine installation vessels and the only listed in the U.S. We have an experienced managed team and a developed global platform with operations in Europe, U.S., and Asia. Since November, the company increased the contractual backlog in our existing asset base by 86.6 million, including options. And there is still more to go. Our two high-specification new builds offer attractive returns and allow the company to install the next-generation wind turbine. The outlook for offshore wind is significant. Demand for offshore wind has increased while supplies remain relatively subdued. As turbines have increased in size, the growth in vessels capable of installing larger turbines has been modest. creating a favorable supply-demand outlook for the industry. We're excited about the future of the company and our role in the transition to a cleaner and more sustainable future. With that, I will turn it over to Q&A.
spk00: As a reminder, to ask a question, you will need to press star 1 on your telephone, and to withdraw your question, press the pound key. Please stand by while we compile the Q&A roster. Our first question comes from Ben Nillen of Stiefel.
spk07: Thanks. Well, anyway, so I have a couple for you guys here. The first is on the Zeritan. I know that you said that the contract start update was moved from April to July. So there's still a decent amount of time between now and July. Any ability for that vessel to – win any short-term business between now and then.
spk08: Sebastian, do you want to take this? Yeah. So the delays in that contract startup are actually due to client delays. So I think that the most likely result is that we will stay on that project and we'll definitely be claiming client delays for those first three months. Okay. And then we'll continue to, so we won't be going elsewhere.
spk07: I see. I see. So there will, there could be some compensation for the, for the delays. Is that how we should think about it? Okay.
spk11: Yeah.
spk07: I should hope so. Yeah. Okay. Good. Yeah. That's helpful. And then James, I was going to come back on the, on the GNA side. I think you'd said seven to 8 million of cash GNA. Okay. As I look at sort of what's normal for the rest of the industry, most other companies, their full-end G&A on a quarterly basis is maybe $3.5 million. So that's quite a bit higher. Can you walk me through what's the difference, like why yours might be more elevated?
spk04: I think it's difficult to say why or compare because I'm not familiar with other companies, so we are only telling you what we are ourselves. I don't have the means to compare myself with others. other companies operating in the same space. As we discussed, we are just opening. This is the first quarter that we announced as a fully integrated company after the merger with CJEX. So there may be changes going forward, but this is what it is today. So we're guiding you to where we are.
spk07: Okay, that's helpful. And I was just really trying to understand if there was an apples and oranges kind of a thing. But yeah, I appreciate that it's hard to sort of
spk04: Sure, no, no, and it may well be. It may well be. I just don't know, but I'm very happy to, you know, discuss this further and more in depth whenever you want.
spk07: Okay, okay, that's helpful. And then lastly for me, James, you mentioned that in the first half of the year, OPEX, the two larger vessels was 50, and then the smaller ones was 20 or 25. I didn't get it, but the... As we move into the back half of the year and things begin to normalize a little bit, can you maybe just – what is the right way to think about sort of the run rate OPEX for those after repositioning and so forth?
spk03: I'll take a stab, and then, Sebastian, feel free to add. Pre-COVID, the Zerotan and Scylla OPEX was around $35,000 a day. And so the increase is really due to crewing. um and travel costs of the crew uh most of the crew is european and we have to get them to asia and also we've been running an additional crew to help us deliver on projects and timing which is hopefully going to stop but obviously it depends on the restrictions with covet in asia uh sebastian do you have more to add i i think that that's fair guidance i mean it's been as we all know rather a fluid situation with regards to covid and
spk08: certain countries' restrictions and policies. You know, we had Scylla working in China for a bit, which is very unpredictable, as you might guess, and involved renting trains and all sorts of things to get crews backwards and forwards. But, yeah, I would expect it to settle down going forward. But, again, trying to take a date to that is difficult. Again, so... It was the logistics on one side, the other pieces in order to meet the quarantine restrictions in certain countries. We've been running three crews instead of two because they've obviously got some unproductive time. So it's as soon as that situation settles down, we will expect the cost to settle down too.
spk07: Okay. All right. That's helpful. I appreciate it. Thank you, guys.
spk04: Ben, one of the things that I wanted to add on your previous question is actually that the you know, CJEX is the largest WTIV business currently existing. And as you know, we do have a global presence, Asia, US, et cetera. So we probably have more offices than most or than anybody else already having the largest fleet operating by a number of units compared to our second competitor. So, That could be one of the items for which you see the discrepancy. Sure.
spk07: No, that's a good point.
spk08: Thank you for that. And I do think that it's a fair point as well, Emmanuel, just to add on to that, that the organizations we have in Japan and in Taiwan are kind of fully functional and have actually delivered projects. So it's not like it's a shell company. There's actually substance to those, which adds real value to us as a company, but obviously incurs overheads. Perfect.
spk07: Great. Thank you. Thank you, Ben.
spk00: Thank you. Our next question comes from Colonel Holm of Clarkson's.
spk10: Hey, good morning, gentlemen, afternoon. Just want to dig a little bit more into the contracting outlook, into the backlog. So just first, for this year, it sounded like Maybe you thought there's some optionality for additional contracts on the NG2500. Did I kind of understand that right? Or should we just kind of look at the backlog as it is and assume that's what we got for 2022?
spk08: James, would you like me to have that?
spk03: Yeah, go for it, Sebastian.
spk08: No, we're currently in discussions about additional contracts. and in fairly advanced stages about additional contracts this year, but they haven't been included in the forecast to date.
spk10: Okay, so it's possible. It's not something you rule out, but not necessarily base case. Yeah, yeah. Probable, okay. All right, good. And then just on Zeratone, looking into 2023, after you finish up Kido Nishihiro, is there, you know, a natural project? that hasn't been awarded yet for that asset, either in Japan or another APAC market?
spk08: Well, it's a very good question. And it's actually got a hot topic at the moment. I'm not sure how familiar you are with the status of some of the Taiwanese projects, but there are three projects which are having significant delays. And if you start looking at what the available supply is in the Asia Pacific, it's very limited. So... I would say that the prospects of Zaratan in 2023 are very positive. And we're definitely, I think we are actually the only available vessel for the periods required during the 2023 period. Don't hold me to that. I mean, that's the first of the recognized vessels. I think Fred Olson had one or two vessels, but they're kind of tied up on projects now. And so, yeah, we're in active discussions about projects outside of Japan, actually, in the Taiwan region. I mean, it's also worth noting on that we've got this kind of established relationship with China as well. So, you know, that's always an option for us. So, yeah, there's optionality on Baratang in 2023.
spk10: Okay, very good. And then just with regards to, you know, one or more contracts, one or more of the new builds, just thinking about, I think you said when you placed the first order about a year ago that you know, within about a year that you thought you might have a contract on the first one. So is there any update on timing for, you know, your expectations for potential contracts? I understand that, you know, it's tough to handicap, but any thoughts on that? And then also, sure, yeah, I know it's a tender-by-tender issue. And then any thoughts that you have around, you know, what you're seeing happening with leading-edge stay rates for the high-spec WTIVs? Absolutely.
spk08: I think if I take the DSME new building first, it's exactly like you said. It's very difficult to gauge the interest. I think the company previously indicated in summer that, as you suggested, our focus is actually to target projects with kind of highest commercial merits at the moment that can maximize our revenue. And if this means that we elect to focus on a project that's going to come a little later in time, then so be it. Yeah. that that's kind of where we are. And I don't see any reason why we wouldn't, for instance, target something this year, but again, they want to be handicapped by the timing as opposed to being able to focused on kind of optimizing, optimizing our returns.
spk10: Sure. And then you felt from the day rates, what you're saying?
spk08: Yeah. I mean, without being too granular about it, you know, the market's tight and it's tightening. We, um, We announced the recently announced Scylla contract is at similar day rates to the highest profile contract that was announced in Taiwan for Taiwan insulation work, which was Scylla on Prairie to Changhua. And it's actually for ancillary foundation work. So what I'm saying is that there are opportunities across the value chain for us going forward. And we see those rates headed in the right direction for us. I don't see any reason why that would soften. In fact, based on the tendering activity going forward, I'd expect the rates to continue to go up. I mean, that's just the fundamental, in my view, shortage of vessels in the future. Okay, I appreciate it. I'll turn it back to you. I think that's quite an interesting question, just to add on to that, right? When you're looking as an analyst at, you know, the demand side, I have said this once or twice previously, but you know when you look at like Scylla's recent contract that's an ancillary job on a foundation contract which isn't assessed in any demand curves going forward so you know her history is that this year she went off to China which is not in any of the demand curves and she also has gone into kind of ancillary foundation work and I think that going forward the market will be tighter than it actually looks on the on the kind of two-dimensional demand forecast because There's this acceleration work and incinerary work, which isn't really provided for.
spk10: I get it. Fair point. Thank you. I appreciate it. All right. Let's look together.
spk00: Thank you. Our next question comes from JB Lowe of Citi.
spk11: Hey, guys. Good morning. Good afternoon. Question was just a clarification. James, did you say that OpEx on the larger vessels would be 50K and on the smaller vessels would be 25K for the remainder of the year? Or is it just for the foreseeable future?
spk03: JB, look, we hope they come down. I think at this point, 50 on the larger, so the Zeritan and the Scylla for the first half of the year is reasonable. and 20 on the smaller. There's a slight uptick on the smaller vessels just because you'll see that the majority of them will be working.
spk11: Gotcha, gotcha. And then, I mean, you said part of the reason was because of COVID and getting crews out to Asia. So when, I believe the Scylla's coming to Europe at some point, right? Do you imagine that that would be a big driver of costs coming down when that vessel gets closer to where all the crews are, essentially?
spk08: Sebastian, you want to take that? Yeah, I think it's a fair assumption. Most of the complications have come or the additional costs have come from the disparities between trying to get crews from Europe to Asia rather than crews within Europe.
spk11: Okay. And then another clarification was – so I know that we talked about one of the new builds potentially getting a contract or having a contract announced here in the next however many months, but – but you're saying now that we should not essentially expect a contract to be signed for the first new build necessarily this year, just because, you know, we want to get to obviously the most favorable contract terms. Is that kind of the message that you guys are sending now? Is that just, it's kind of a wait and see right now, but don't expect necessarily anything in 2022. I just want to make sure that that's kind of the message. Uh,
spk08: Actually, for me personally, based on experience, I'm not saying that we won't announce anything in 2022. There is a possibility, probably we will. It's just that going forward, I'd like to set the precedent that we really are trying to achieve optimal day rates and not box ourselves in with Canada dates. It's more of a principle thing than whether or not it's relevant to this particular, you know, to the new bill that's coming out now.
spk06: Okay. Okay. I'll... I would add, James, that it's important for us not to create... We're focusing on what Sebastian is saying and correct execution on this, and we have a balance that allows us to do that. There are obviously projects that we're working on that can come quite early in this year, as well as quite others that can come late in this year, but we don't want to get boxed into... especially with negotiating with customers with promises to people like yourselves or the market at the moment. That's not constructive. So we're going to choose to, as we've done with the NG2500s and the other recent revenue, we're going to choose to sort of err on the just announcing what we've done as opposed to suggesting what we will do.
spk11: Right. Got it. Okay. Um, and last question for me was just on, uh, you know, now that the Jones Act festival, you guys decided not to move forward that what, how do you guys view or how do you think the, the, the U S market is going to play out over the next several years? Because I mean, there's a ton of projects in the backlog. Obviously there's constantly delays on projects, but there's also a lack of vessels. So, um, I guess just kind of from a 30,000-foot view, how do you think the U.S. is going to kind of play out in terms of bringing vessels in from the international market when necessary and how you guys can capitalize on those opportunities?
spk08: I think it's a really good question, and I think that the lack of Jones Act vessels means that the U.S. will be less U.S.-centric than it's kind of planned to be, as it were. and they are going to be subject to the vagaries of the international market and demand and supply, and they're ultimately going to help drive rates for us because it is additional demand of high-end vessels. It will play out. I mean, you know, people find solutions, but those solutions will inevitably require international tonnage.
spk11: Great. Thanks for answering all the questions, guys. Talk to you soon. Thank you.
spk00: Thank you. Our next question comes from Greg Lewis of BTIG.
spk09: Yeah, thank you, and good morning, good afternoon, everybody. Sebastian, I want to follow up a little bit on your comments around the work for the CILA. The Zaratan, does the Zaratan have operational capabilities that potentially enables it to go find work you know, in foundation or something beyond the traditional installation work that it's accustomed to doing?
spk08: Yes. So she has, in her time, installed transition pieces on projects, both on a time charter basis and on a T&I basis. And the logic behind that is, If you want to install your foundations in one season, then obviously having one vessel doing monopiles and the other doing transition pieces could be an efficient solution. She's also going to be available to do O&M work, and she's also going to be available to do geotechnical work, which is coring, kind of the pre-planning coring before the foundations are designed and put into these wind farms.
spk09: And otherwise, you're not going to talk about pricing, you know, just given the tightness in the market. And, you know, I guess it's we'll see how things play out over the next six, 12 months. But there is the potential that this rate could almost be as good as the seller or is it something where the market just can differentiate between the quality of vessel and really push the rate lower for a less qualified vessel?
spk08: So that totally depends on what it's being used for. Typically, if she can be used for acceleration demand, you're talking about offsetting the spread costs of the developer, which might be a million bucks a day or whatever that number is, which is storage of components, putting other vessels on standby. And so it's really what the value of that vessel in an acceleration capacity is pretty high. So I would say that It is, yeah, I mean, honestly, it's a nice place to be, having some available capacity in Asia for next year.
spk09: Yeah, understood, understood. And then just one more for me. You, I'm not sure if you're on the call, but maybe James can help me with that. You know, you announced previously the commitment for the $175 million facility. Is there any way to think about... you know, the asset base behind that facility, i.e., should we be thinking about this as, you know, the conventional loan-to-value model? And if so, is there any way to think about, you know, what type of barring we are doing against those, I guess, core CILA and Zaretan assets?
spk05: Yeah. Hi, Greg. I think that the conventional loan-to-value model is not necessarily relevant here because, The $175 million is secured by assets with quite a high value above that $175 million. So I think we can characterize the loan as being a relatively low loan to value. I think the banks who finance us look at a number of things when they finance the assets, including the asset value, which is perhaps the traditional way of doing it, but also they're looking at the cash flow of the company and the underlying business. I think we're very happy with the facility in pretty much every way. I don't want to promote it too much, but it's $175 million. We can borrow 50% of that in euros, which is very helpful to us in terms of managing our revenues and the currencies that our revenues come in at. It covers us for performance bonds. It really is – it's revolving, which helps us manage our working capital. And we've got five really experienced banks in there who are really – sort of providing a lot of validation to our future financing needs. I mean, these banks are going to support us. They're supporting us now and they're going to support us in the future. And, you know, it makes me very comfortable, you know, about the discussions we're going to have in the second half of this year about the finance for our new buildings. So generally speaking, we're really happy with the loan. I'd also like to point out it's a green term loan. The loan is accredited by the governance group in Norway as being essentially a green loan, or at least the assets are green assets. And that's something that, again, the banks are taking very seriously and they're very comfortable with. But look, we like the pricing, we like the terms, we like the relationships, and we're really happy with it.
spk09: Very helpful. Thank you very much.
spk00: Thank you. Our next question comes from Randy Gibbons of Jefferies.
spk01: Howdy, gentlemen. How's it going? Hi, Randy. Hey, Randy. Two questions. I guess first, how should we think about utilization for the smallest WTIVs this year? Is it kind of ramping by quarter or basically full employment, maybe 2Q, 3Q, and nothing really, 1Q, 4Q?
spk03: Randy, we have the slide in our presentation, so I think for utilization for the full year, right now we're at somewhere around 30%, and then higher with options. And so if you look at what we've contracted so far in our table, I think it's the third or fourth slide in the presentation, you can see which vessels are available. and which ones are booked. And I think you're probably right that most of the additional contracts that could arise would be later in the year.
spk01: Got it. Yeah, I see the table here just saying for upside possibility. And then on slide five, you mentioned you, in quotes, I guess, discontinued discussions with the U.S. shipyards to construct a Jones Act compliant WTIV. So I guess why not continue these talks? And then does this mean now that any new Jones Act project would be 2025, 2026 at the earliest? The second part of your question – go ahead, Robert. I think that the –
spk06: Clearly, with the yard capacity where it is and the ability or lack of ability for the United States shipyards to deliver Jones Act vessels within, let's say, 2024 now, clearly it's going to be into 2005. And we would most probably, the earliest opportunity would be the second half of 2025. And I think that's partly what Sebastian was alluding to, that you've now as far as international ships concerned, you know, the US market itself has either, you know, got to cancel projects, which I don't think is going to happen, we're not hearing that from customers, or they're going to have to go the international route, which is also goes back to the conversation we had with James earlier from Citi that, you know, we're very reluctant for commercial reasons to show any of our cards because we see this market just really tightening up for the international fleet, partly because of what's happening in the U.S.
spk01: Okay. Well, that covers it for me. Thank you.
spk00: Thank you. Our next question comes from Liam Burke of B. Riley.
spk02: Thank you. There's been a lot more offshore oil production activity. How has that affected or tightened the supply of available vessels?
spk08: If I take a stab at that, I'd say that As a general commentary, yes, even in our home market, which is the North Sea, for the smaller vessels which are involved in infrastructure, maintenance, and what have you, is that there have been increased levels of activity. So supply of those vessels, availability of those vessels has actually decreased, which is obviously a positive for us as we market these vessels in both offshore wind primarily, but also kind of oil and gas infrastructure projects.
spk02: Now, does that change your view on what utilization rates will be for the smaller vessels, depending on how long the price of oil stays that high and offshore activity continues?
spk08: I actually think that supply in the North Sea had decreased anyway because a number of vessels had moved out to the Middle East while the oil and gas price was down. And so I think that even kind of regardless of the oil and gas market, the market dynamics here have improved significantly over the last year or so, and that in turn has tightened up. the accommodation requirements on the substation work that we look at, and also on the offshore maintenance of the wind farms. So it's difficult to be more specific than that, but I think from a kind of high level, I think that the market's just tightening.
spk02: Great. Thank you.
spk00: Thank you. I would now like to turn the conference back to Emanuele Loro for closing remarks.
spk04: Thank you very much, everybody. We do not have anything to add at this stage, but thanks for your time and look forward to speaking to you soon.
spk00: This concludes today's conference call. Thank you for participating, and you may now disconnect.
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