Scatec Asa

Good morning everyone and welcome to our fourth quarter presentation. Our growth continues and we deliver on our strategy with a high level of activity across all of our segments and all of our portfolio. We are growing our pipeline at the same time we continue to also strengthen our financial position. And we are operating in markets with strong underlying demand, and we're focusing on markets with strong underlying demand for clean, affordable, and flexible power. Renewable energy is the most competitive source of power generation in our markets, and we continue to see strong and attractive long-term demand for renewable energy in our markets. And this is reflected in the additional projects that we are able to secure in our markets, and it's also reflected in the growing pipeline that we are presenting today. And today, I will start with a summary of our 2025 achievements, and then I will take you through the highlights of the quarter. Hans Jakob will go through the financials, and then at the end, we will also provide comments on our outlook for 2026. And then to summarize our full year 2025, we are scaling the platform while maintaining, continuing to maintain financial discipline, and we have also strengthened our balance sheet. We see strong near-term growth, and we have 11 gigawatts of generation capacity across our projects in operation, in construction, and in our backlog. And this is our largest near-term growth that we have ever had. We have also significantly strengthened our position in storage and hybrid solutions, reflecting the increasing demand for flexible and hybrid systems. Our growth portfolio now includes more than 6.5 gigawatts of battery storage systems. And this development is supported by battery prices falling over the past two years, and we aim to continue to increase our pipeline in this space. During the year, we have also reduced our gross debt, corporate debt, by 25%. And our corporate debt now stands at 6.7 billion. And this is something that we have done while we continue to invest in new projects and new capacity. So overall, I'm very happy with the performance that we have achieved last year. And they are proving that we can execute on growth while we continue to deliverage, building a resilient and a very scalable platform. So let me then take you through the highlights of the last quarter. We delivered strong group revenues of 3.4 billion. This is an increase of 25% relative to the same quarter last year. And this is mainly driven by high activity in our development and construction segment. We have very good progress on our projects under construction and in the quarter we recognized 2.3 billion in revenues and also a gross margin of 14%. And the key drivers here were Obelisk in Egypt and also the Mogobe best projects in South Africa. And it's important to emphasize that the attractive gross margin that we are recognizing, it is based on a very strong underlying economics of the projects that we currently have in our construction portfolio. We also continue to mature our pipeline and secure new projects for future growth. with a backlog now reaching an all-time high of 5.3 gigawatts of generation capacity and 4.7 gigawatt hours of battery storage capacity. This is driven by new PPAs that we've been signing over the quarter in Egypt, in Tunisia, and also in the Philippines. And one of these projects, which is Energy Valley, is really a landmark project in Egypt. And we will come back and talk a bit more about that later. In parallel, we have also improved our corporate debt maturity profile. We have issued a new bond in November during the quarter. We also paid down a term loan. And at the end of the quarter, at the end of the year, we have a very strong liquidity position of 5.6 billion Norwegian kroners. So with that, let me also then take you through the key elements of the power production segment. Last quarter, we generated one terawatt hours. And this is in line with last year when we adjust for the divested assets. New projects contributed with 73 gigawatt hours. This is from Grote Fonteyn in South Africa. And it's also from the Madinara project in Botswana. While when it comes to the Philippines, we generated slightly lower megawatt hours, and this is due to hydrology. Revenues from power production amounted to around 1.1 billion, and this is broadly also in line with last year when we are adjusting for the divestments that we've done. And overall, this demonstrates the resilience and the predictability of our contracted generation portfolio. even as we continue to actively optimize our portfolio. Now a few words on Ukraine. And here the ongoing war obviously represents a challenging environment for operations. We own and operate five projects in Ukraine in the central and the southern parts of Ukraine with a total capacity of about 336 megawatts. And during the fourth quarter, the substations and transformers related to one of our projects were targeted and damaged by a Russian drone attack. Our first priority in this situation is our employees in the country. And it's very good to know that those are unharmed, at least physically, after this drone attack. But the power plants, the power plant is disconnected due to the damage and is currently not delivering energy onto the grid. Ukraine Ergo, the state-owned utility, and our team is working very hard to repair the damages, and we are currently targeting to get the plant reconnected to the grid and start delivering energy again in the beginning of the second half of this year. This is obviously impacting the power generation from Ukraine during the year, and Hasakov will come back and comment on this also in the outlook for the year. So let me now talk about the Philippines. Here we delivered yet another solid quarter, and the Philippines continues to be a major financial contributor to the company. We generated 249 gigawatt hours in the quarter, and despite the slightly lower generation compared to last year, the financials from Philippines were better than last year. Overall, we reached net revenues of 403 million. This is up from 390 million same quarter last year. And here we are now seeing the benefits of having a flexible asset portfolio and active trading operations in the country. This is now demonstrated as we have several revenue streams. and that we're able to capture attractive trading opportunities. And through this, we are able to deliver good and strong financial results, despite the fact that the hydrology is slightly lower in the quarter. And we also continue to allocate a significant part of our capacity to the ancillary services market in the country. Again, based on the fact that we are seeing attractive revenue opportunities, earnings opportunities in that segment, and based on our ability with the flexible asset portfolio that we have. Prices in the quarter were also up. And additionally, we've been able to capture higher than average prices on our contracts. And this is also contributing to the financials. So in terms of EBITDA, that increased by 31 million in the quarter to 363 million. Then, in terms of construction, we currently have 1.5 gigawatts of solar and 700 megawatt hours of battery storage projects under construction in five different countries. Andreas is fixing that. In addition to this, we are also progressing well in our release platform, and we are also having a few projects in that platform being installed as we speak. Since last reporting, we've had a very good construction progress across the portfolio, and we have recorded 2.3 billion in revenues, and a gross margin of 14%, as I've already said. And the EBITDA for the D&C segment was 251 million, which is a very high level. Grotfontein in South Africa, and also the second phase of Madinari project in Botswana, reached COD during the quarter, and is now in operation. In Tunisia, we target COD for the Tosa project and the Sidi Bouzid project by the end of the quarter. And for the solar project in Brazil, and also for our battery projects in the Philippines, we are expected to reach COD by the end of the first half of the year. When it comes to Mogobe in South Africa, our first battery project in South Africa, okay so when it comes to the solar project in brazil and also the battery projects in in the philippines we are expecting to have cod by the end of the first half And then when it comes to Mogoma, our first standalone project, standalone best project in South Africa, we are for this project expecting to reach financial close in the second half of this year. In general, I'm very pleased with the progress that we're seeing on the construction activities across our portfolio, and I'm very proud of the teams that are doing a very good job on this. At the end of the quarter, we have 1.8 billion in remaining contract revenues related to the projects that we currently have in construction, and we continue to expect to have a gross margin of 10-12% related to these projects. Beyond this, obviously, we continue to mature the projects that we have in backlog, and we foresee that we're going to continue to have a high activity level in the construction segment going forward. Now, let me also take some time to appreciate our largest project to date, the Obelisk project. Total capex of this project is close to six billion Norwegian kroners. And then it's finished, it will generate in the range of three terawatt hours on an annual basis. And it will provide 1.3 million tons of CO2 emission reductions. It's a massive project, and it's being constructed at record pace. We have already completed phase one, which is including 50% of the solar capacity, 100% of the battery capacity, and obviously also a very large substation. And this is only about 15 months since we signed the PPA. We are having about 5,000 people on site, and this team is installing in the range of 200,000 modules on a monthly basis. So we're working very hard to secure commercial operation for phase one ahead of schedule by the end of this quarter, and also accelerating the completion of phase two, and we're targeting to reach COD for phase two already this summer. And obviously, Building this project, constructing this project, gives us a lot of very valuable experiences and learnings. And we will use these learnings when we are moving forward also and preparing to start construction for the other projects in Egypt, like for instance Egypt Aluminium and also the Energy Valley project. I will now zoom out a bit and talk about our growth portfolio. We have an all-time high backlog of 5.3 gigawatts of generation capacity. And this is including projects in Egypt, in South Africa, in Tunisia, in Romania, and in Colombia. And then the construction of these projects, including the ones in backlog, have been completed over the next few years. We will reach a total generating capacity of 11 gigawatts. This is up 2.5 times relative to where we are today. In addition behind this, we have a pipeline of 7.4 gigawatts that obviously we will continue to mature and convert into backlog also over time. Our growth portfolio also includes battery storage, either in hybrid systems or as standalone storage systems. Here we have a backlog of 4.7 gigawatt hours in South Africa, Egypt, and the Philippines. And we have now chosen to show this portfolio separately so that you can see also how this is growing over time, and we believe that there's going to also be significant growth opportunities in this space going forward. And let me now also turn at the end to a landmark agreement signed in Egypt, which is a 25-year PPA, for 1.95 gigawatts of solar and 3.9 gigawatt hours of battery capacity. So the Energy Valley project, as you will see on this page, includes two standalone best installations and one solar and battery hybrid facility. And part of the production from this hybrid facility will be used to provide 24 seven green base load power. And this is a first of its kind. The project will generate about six terawatt hours when it is in operation. It will provide about 2.4 million tons of CO2 reductions. And it will save Egypt $150 million on an annual basis in saved fuel costs related to the alternative, which is running their thermal power plants. $150 million on an annual basis. And with the signing of this agreement, we are cementing our position in Egypt as one of the leading players in renewable energy in the country. And they have a very strong team on the ground which is driving this. And in total, we now have five large growth projects in Egypt across different technologies, solar, wind, batteries, and green hydrogen. These projects, they will generate substantial DNC revenues over the next few years as we move them through construction. And on a longer-term basis, obviously, they will also generate predictable revenues in the power production segment related to the 25-year PPAs that we have for these projects. And finally also this portfolio will contribute to reduction of five million tons, five million tons of CO2 emissions. And just for reference, this is more than 10% of Norway's CO2 emissions on an annual basis, more than 10%. So we now focus on finalizing construction of Oblisk and securing partners and financing for this portfolio with the aim to move this portfolio into construction by the end of this year. So with that, Hans Jakob, I will hand it over to you to take us through the financials.

Thank you, Terje. Is the microphone okay? Yeah. So it's been said before, but we are pleased to present strong results across the group, high DNC activity, and a good quarter in the Philippines. I'll walk you through the group financials and the performance of our operating segments, and I will also comment on capital structure and further improvements. Starting at group level performance, the last three years has been a transition period with increased capital recycling and accelerated growth. The full year consolidated revenues was 5.2 billion and EBITDA 4 billion. Our proportionate revenues was 11 billion and EBITDA 4.6 billion, both positively impacted by the D&C segment. Looking at the quarter on group level, the all-time high DNC activity is driving proportionate revenue growth, positively impacting our group financials. Consolidated revenues was 1 billion compared to 1.1 billion in the same quarter last year. EBITDA reached 697 million compared to 816 million year-on-year. The reduction is mainly driven by divestments which has been instrumental to our long-term strategy of funding growth and reducing debt. This will result in additional revenues from new projects and lower interest expenses and reduced debt. Our proportionate revenues was 3.4 billion compared to 2.7 billion in the same quarter last year. And the proportion at EBITDA was 1 billion compared to 1.4 billion year on year. Now let me take you through the segments. Starting with power production, which delivered revenues close to 1.1 billion compared to 1.6 billion in the same quarter last year. The reduction is mainly explained by divestment gains of 380 million booked in the fourth quarter last year. EBITDA was 842 million. And on a 12-month rolling basis, you can see stable development, adjusting for sales gains as we are managing to offset the EBITDA from divested assets with new projects. The last 12 months, we have delivered 5.2 billion in revenues and 4.3 billion in EBITDA. Overall, we are very pleased with the value generated from our operating assets. In our development and construction segment, activity levels continue to increase. Proportionate revenues more than doubled to 2.3 billion, and EBITDA was 251 million, significantly up from the 51 million in the same quarter last year. The trend from the last 12 months confirms the long-term strength and scalability of our DNC business, underlying strong growth. DNC revenues the last 12 months have reached 5.8 billion, with a steady increase of the last quarter. five quarters in a row. The rolling EBITDA ended at 462 million, with contribution from high-margin projects and disciplined cost control. The increasing trend reflects higher activity levels across several geographies, with Obelisk in Egypt and Mogobe in South Africa being in the forefront in this quarter. With a strong backlog, including eight projects in five countries expected to start construction in the first half of this year, we expect DNC to remain a key engine on our continued profitable growth. At the end of the quarter, we had available liquidity of 5.6 billion. Let me explain some of the main movements. We received 631 million in distributions from power plants, had positive working capital movements of 596 million, mainly related to milestone payments for Obelisk. We invested net 220 million in growth projects and paid 130 million of interest and reduced our corporate debt by 73 million. The EBITDA from the DNC covered investments in the quarter, which is a confirmation of a robust business model. And the RCF is currently undrawn. We continue to strengthen our capital structure. Net corporate debt was reduced to 3.4 billion, down from 5.6 in the second and 4.3 in the third quarter. The reduction was mainly driven by the change in cash, on 900 million. We also repaid the outstanding term loan with the proceeds from the 1 billion NOC bond. On project level, net debt increased by 800 million to 16.7 billion. And the project debt in operation increased by 2.3 billion. As Grootfontein in South Africa and Madinare project in Botswana, debt moved to operation after COD and the net debt for project under construction was reduced by 1.4 billion. And now, the outlook for the year. So commenting on the 2026 outlook, I will start with the full year estimate of power production between 5.2 and 5.6 terawatt hours. Our estimated full year EBITDA is in the range of 3.8 to 4.1 billion. And let me explain some of the main items affecting the guidance compared to the 4.3 billion we delivered in the full year last year. Last year, we reported 500 million in divestment gains and operational EBITDA related to Uganda, Vietnam, which we sold during the year. We had 200 million of retroactive payments for tariff adjustments in the Philippines and Pakistan. In this year, we expect reduced EBITDA from Ukraine due to the repair of one of our plants and lower payment levels for the remainder of the portfolio in the country. Lower EBITDA from the Philippines and Laos due to the normal hydrology expected compared to the high levels we saw in 2025. These effects will be partly offset by contributions from new projects that are starting operations during the year and other operational improvements. For the first quarter, we expect a total power production between 950 and 1050 gigawatt hours. EBITDA in the Philippines are 180 to 240 million, based on the normal hydrology and strong contributions from ancillary services. In our DNC segment, we have 1.8 billion remaining contract value and a gross margin estimate of 10-12% on average across the portfolio of projects under construction. For corporate, we expect a full year EBITDA of 125-135 negative. And these estimates reflect a strong base of operating assets, high construction activity, and healthy cost control. And by that, I invite you back, Thalia, to take us through the summary.

Thank you, Hans-Jakob. So to sum up, 2025 was a very good year for Skatec. We've had good financial performance, high construction activity during the year. We have significantly increased our pipeline and backlog during the year, and we have also strengthened the balance sheet. I like to think that 2025 was a transformative year for Skatec. We also launched our new targets and our strategic priorities during our Q3 presentation. And in 2026, in line with this, we will focus on strong operational performance, execution of our significant growth portfolio, divestment of non-core assets, and also take further steps in terms of deleveraging our corporate balance sheet. I think it's going to be a very exciting and a very active and hectic year. Thank you very much. And now we will move to questions.

Thank you, Tarjan and Jacob. Over to the Q&A. We will, as usual, start with the audience in the room, and then we will take some online questions. So if you want to ask a question, just raise your hand.

OK. In your guidance for 2026 on power production, you provided some soft comments about the changes in Ukraine, but could you be more explicit on how much the contribution in Ukraine is expected to be compared with 2025 levels? Some rough indication? Yes.

I think in one of Thalia's graphs, he showed the impact in the fourth quarter last year of 67. I think it's also in the fact sheet. Looking at the outlook, as Thalia said, the team is working incredibly hard to reinstall the capacity. And it's anticipated to take until summer. And we haven't provided a figure, but in ballpark, around 100 million.

Okay, but you also made a comment about, which I interpreted as somewhat lower payments from Ukraine.

Lower payment levels. That Thalia is very much aware of. As the rest of us, we have basically had very high than expected payment levels last year. So starting the year with a more cautious approach to more normal as expected payment levels is a fair assumption.

So if I just to summarize, the baseline should be somewhat lower and roughly 100 million below the baseline for the first half. Okay, thank you. I have another question as well. In the development and construction segment, I appreciate that you're progressing projects and are trying to sustain activity also in the first half, but there are some financial closures which needs to be in place for that to happen. How should we think about the first half in DMC upon completion of the projects currently under construction, the 1.8 billion?

Your question is what is going to come potentially in addition?

Or how quickly? Is that a second half event or are you still comfortable with the commencement of construction as you've indicated in the past during the first half of a number of these projects?

Yeah, I mean, we're typically not commenting on specific dates or exactly sort of when the projects in our backlog are going to come into financial close and start of construction. But we see that sort of across the backlog that we currently have, there are also some projects that we anticipate will come into construction, reach financial close and come into construction the first half of the year.

Okay, thank you.

Thank you. Andreas Nygaard, Nordia. You have huge projects now going on in Egypt. Should we assume that you can continue to originate two to three gigawatts of projects annually in Egypt?

I think now, I mean, as we went through here, we now have five significant projects in Egypt that we're going to focus on securing financing, bringing in investors, bringing to financial close and start construction during this year. And I think that's going to be a main priority for the year. There's still significant more opportunities in Egypt. related to renewable energy. Renewable energy makes sense in Egypt. It's basically saving costs related to the alternative sources of power generation. And Egypt is trying to accelerate their program for reaching their targets when it comes to renewable energy in the power mix. They had certain targets. I think it's 42% by 2035. They took it back to 2030, and now they're trying to reach it even earlier. So in that context, And based on our position in Egypt, we see more opportunities in Egypt.

Okay, that's very clear and very nice to hear. But this scale of projects, could you find it outside of Egypt, or is Egypt quite special right now in terms of the scale of the projects? Could you see two gigawatt projects in South Africa, for instance?

Yeah, I do think you could also see projects at that scale also in South Africa. But obviously it also depends a bit on how the regulations are developing. But I think as the power sector also in South Africa will continue to be deregulated, we will also see more opportunities. to do corporate PPAs and to build out large portfolio of projects that can basically sell energy to more corporate uptakers. So I think that's a development that we will see. And then we will obviously look for developing larger clusters of projects also in South Africa. So there is also potential for larger projects in South Africa.

So in summary, the activity level you're expecting in 26 and 27, that run rate could likely just continue in 28, 29, and for eternity?

Let me answer your question like this. We continue to see that renewable energy becomes more and more competitive in the markets where we operate. With batteries, it becomes more flexible. It can provide baseload green power. And in many of the markets where we operate, the countries are in principle saving money, reducing alternative costs of power generation from implementing renewables. So I don't see a reason why the current pace in the industry is not going to continue. And I think based on everything that we are currently doing and the track record capabilities of the organization that we have, I think that we are in a good position to capture part of that growth.

Okay, that's it from me, thank you.

Okay, thank you. We have a couple of questions from our online listeners as well. We can start with Jorgen Lande from Danske Bank. Good morning, in terms of recent movements in input costs like silver and copper, can you comment on how this potentially has impacted the progress of reaching FID?

I think there's a couple of things happening in the industry. Some component prices are going up. The VAT rebate in China has been removed or is being removed over time related to panels and batteries. On the other side, we also see that other components that we are using, we are able to achieve savings. And the things that are happening in this industry is obviously not it doesn't come as a surprise to us. So we don't see that any of these things that are happening in the industry will have any significant impact on where we will be able to reach FID and take financial close and start construction of the projects that we currently have in the backlog. We will obviously continue to be very disciplined in terms of our hurdle rates, in terms of making sure that all the projects that we are doing are value creating for us and our shareholders. But based on what we are currently seeing, we see that sort of the changes in the industry is manageable and not all surprising.

Thank you. One question from Helene Brønby from DNB Carnegie. Can you shed some more light on the status of your ongoing asset rotation program?

Yeah, that's the one we are not sharing a lot of detail on, beyond announcing transactions. What we have said is, of course, that we have clear, ambitious targets. Another 3.4 billion proceeds to 2030. This is within a time frame which should be manageable, and its main focus on the non-core. It's also reaching certain ownership stakes deliberately on project carefully timed. So we have discussions ongoing and we are in terms of our long-term plan according to plan.

Thank you. Helena also asked about the input cost. I think we have covered that. Another one from Helena. To what extent can we expect the solid DNC gross margin in Q4 to be repeated?

Yeah, here, I mean, we have commented on that in our outlook, and we're saying that with regards to the 1.8 billion that we have remaining in construction revenues or contracts, we are expecting and we are indicating that we will continue to reach in the range of 10 to 12% gross margin of those contracts.

Thank you. Another one from Jørgen Lande, Dansk Bank. You guide 2026 power production production to a midpoint of 5.4 terawatt hours, which is higher than the midpoint of consensus, while EBTA implies a softer margin. Can you comment on how you think about power production EBTA in 2026?

Yeah, so I understand, I think I understand at least where Jørgen is coming from. So is there a misalignment on the EBITDA side? I mean, it has to do with the composition or the contribution. So I think we have to stick to the guiding that we have provided today. And 3.8 to 4.1 is explained also in contrast to last year, the one-offs. Any divestments is, of course, a potential deviation, but also the impact and the pace of the new projects coming in. I think it feels at least a bit special for us taking the development into account. Ken Hart and then doubling to Obelisk and then we have energy value but we're not pre announcing anything we just signed a PPA but we are working very hard to mature this project and that is of course a significant potential contribution how this is forecasted I think we have to stick to professional secrets

Thank you. We have some questions from Anis Sagaia from ODBF. One on Ukraine. I think we covered that one. Another one on the Philippines. You show sustained contribution from ancillary services and a favorable water fee settlement in 2025. How should we think about AS ancillary services pricing and volumes in 2026 versus 2025? And what's your assumption for a hydrology normalization embedded in the guidance?

I think when it comes to the ancillary services market, there are two elements of the ancillary services revenues that we are currently generating. It's partly related to a contract that was secured a couple of years ago. We have very predictable revenues. And that contract is representing maybe around 50% of the volumes that we are typically seeing in that segment. And in general, when it comes to the pricing, on a short, medium-term basis. I mean, it's very difficult to provide input and outlook in terms of prices, but we don't see a reason on a short, medium-term basis that the prices in the ancillary services market is going to change.

Yeah, and on normal hydrology, it's just that when you use these data for up to 10-year period, you see variations. And last year, I think we agreed that it was above normal hydrology. And it's a bit hard to start the year without normal hydrology as an assumption. So that's where we start off, just being transparent about the relative change.

And obviously the interesting thing when it comes to the Philippines now is that we have two new projects, two new battery storage projects that are in construction and that we are anticipating to reach financial COD in the first half of this year. And that is increasing our capacity related to battery storage from 24 megawatts to 80 megawatts. So a tripling of capacity that comes into operation first off this year that enables us to increase our participation in the ancillary services market. And then on top of that, we are also intending to move more projects. We have more projects in backlog, also related to battery storage, that we will also aim to move into financial close and start of construction also relatively soon. And that will further then increase our capacity on the ancillary services market and increasing our flexibility in the Philippines and increasing our ability to tap into several revenue streams as I talked about in the country.

I just flipped to the slide that you showed how significant ancillary services has been sustained over several quarters. So with the ramp up of battery capacity, it's even more robustified.

One follow-up on Ukraine. Any insurance recoveries or compensation mechanisms you can detail?

No. Currently, in the current situation in Ukraine, and we have to remember that the war is soon entering its fifth year, it's not really possible to get insurance which is going to cover these kinds of events in Ukraine.

Quite a lot of questions today. Just, I think, two more. Lars H. Kristensen, Fernley Securities. Congratulations on the strong results. For the Energy Valley project in Egypt, should we expect any asset rotation to help fund the investment?

As we said, we are continuing to work on our divestment program. And we will continue to work on optimizing our portfolio over time and have a very active perspective on our portfolio. And then we also in previous presentations discussed the fact that we will in certain projects also go down in ownership stakes. through a layered structure where we are still able to maintain control over the project but to take down our direct equity investment into the project and through that manage also the capital investments over time.

Okay, I think we'll talk just one last question. Do you see any problems of the power grid in any of your countries where you have large projects and how do you solve these problems?

It is clear that with the increased penetration of renewables, especially intermittent renewables, there are situations, I think, in all grids, in all countries, where you will have temporary challenges with the grid that will either have to be managed through strengthening the grid over time or also with the addition of storage capacity and batteries. And there I would like to draw the attention to the Energy Valley project. It's three installations, two pure battery installations at two different locations, and one hybrid facility. And obviously, those standalone battery installations, they are put where they are in order to help balance the grid. and mitigate those types of concerns in those situations. Similarly, same thing is happening in South Africa. where we are now building one standalone battery project, and there we have another one in our backlog. And these batteries are obviously also put into places where they help balance the grid and mitigate the challenges that will, in certain places, come into the grid. So this is an important part of our business going forward. We have to be on top of the grid situation in the markets where we operate and make sure that we focus on the areas where there is grid capacity and where we will be able to implement new renewable energy projects and deliver the energy onto the grid.

Thank you, Terje and Jacob. One more from Anders, SEB.

Just a final question on asset rotation. The 3.4 billion, when you refer to asset rotation, that relates to projects already in operation as of today, right?

That's correct.

Thank you. One more from Andreas in Nordea.

Thank you. So just the last one on your investment target, 1 billion NOx of equity annually. The Energy Valley project, I guess you will structure it perhaps the same way you're doing Obelisk, aiming for an equity bridge perhaps. The way you're seeing your backlog now, are you actually using the full of your 1 billion NOC equity injection capacity, the way you're looking to structure that backlog? Thank you.

We will fight to answer that question. Do you want to go? Okay. Under construction and in backlog, there is equity around 3 billion, and that is excluding Energy Valley. So Energy Valley is... sizable as you could imagine and we will come back to more granularity on the project as it as it is progressing but we are well underway to reach our target and the guiding from the strategy update that's basically directionally what i would like to say but under construction and backlog is around 3 billion equity and will that be cash We haven't provided super detailed analysis of this today, and I think we'll come back to it. But I read your question, Andreas. Is this in line with what you said you would inject of equity? And I think we are fairly aligned what we have on the plate as is. Okay, thank you.

With that, I think we say thank you to everyone and today's presentation. Thank you. Thank you very much.