Orrön Energy AB (publ)

Hi everyone. Welcome to our energy second quarter 2025 webcast. My name is Jenny and I'm working with communication at our energy with us today. We have our CEO Daniel Fitzgerald and CFO Espen Henny who will describe the report and the latest developments of our energy. We will end the session with a Q&A session. If you look at the bottom of your screen you have a Q&A function. So please send across questions as we go along and we will collect and go through them at the end. And with that I would like to hand over to Daniel Fitzgerald to kick off this presentation.

Thank you Jenny. And welcome to our Q2 results for 2025. It's pleasure to have you here. I'll be joined by Espen who will run through the financial results for the quarter. And before then I'll give a quick update on where we are within the within the business. As a short introduction Oron Energy is a renewable energy company. We have just shy of 400 megawatts worth of producing assets in Sweden and Finland. And all of those are wind farms. We have organic growth across the full life cycle. We're able to step into greenfield developments project construction into operating wind farms and other assets batteries solar etc. And we have the ability for life extension repowering etc. So within the company we have the ability to to work through all of the stages of the life cycle of a renewable asset. We have a large scale greenfield pipeline primarily in Germany in the UK with projects also in Sweden Finland and France. And the UK and Germany are really leading in terms of the the large scale opportunities that are now moving into a monetization phase. And I'm pleased to share that our first project has been sold and we'll touch on that later in the presentation. And that was represents a really strong return on capital and something that we've been we've been working towards for the last two years to build this element of our business and start to see the returns from that. And finally we remain as we have done since the inception of the company we remain fully funded for investing in growth and investing in the platforms that we're starting to build. And so in challenging market times like this I think that's really important to ensure that we continue to have a strong liquidity position that underpins our ability to go and invest countercyclically and invest in longer term value accretive options for the company. If we then step into our second quarter results and first half performance we've generated four hundred and thirty nine gigawatt hours worth of production year to date. And in addition to that we've also had 20 gigawatt hours worth of what we call compensated volumes. And these are becoming more and more important in today's markets where we're bidding our assets into ancillary services and we're seeing stronger revenues coming out of that side of the business as potentially we see a little bit weaker markets like we've done in Q2. This becomes a more important share of our revenues moving forwards. As of the end of Q2 we only had MLK qualified into this. In Q3 we're moving into having cast group qualified into this service and we should see more and more volumes coming out of these ancillary services. And we'll touch on that in the coming slide. But I think that's a really important differentiator as as we see markets like they are at the moment. With the revenues we've achieved 16 million euros of revenues here today and that results in an EBITDA of minus two. And we have seen slightly higher balancing and other costs through the course of the second quarter. And Espen will touch on the financial impact of that as he goes through his section. And that's offset to some extent by the increased revenues from the ancillary services. As I already touched on we do have a strong liquidity position. We have 77 million euros of net debt and over 90 million euros of liquidity headroom within our finance facility which gives us the ability to continue to to draw down for some of the growth elements. And as we're starting to move into monetization of the greenfield portfolio we should see over the coming quarters and year we should see a return to reduction in the debt facility as we monetize more and more of these projects. And on that we've sold the first German project. We have a slide detailing a bit more detail around that. I'm pleased to share that we've received two million upfront consideration for that and we expect to receive a contingent payment of two million once we satisfy the contingencies. And that represents a good return on capital and a profitable element for this part of the business which is which is a really exciting position to be in now that our first projects have hit the market. In the UK we continue to see strong progress on our projects. We came out in our first quarter results with only two projects that ready to permit. Our second one was had the land position secured. We're now at seven projects which have all of the land secured to move them forwards. Those have been submitted into the UK grid reform process and we're likely to hear back in the second half of this year on the results of that. And then a portion of those we expect to move into a sales process as as we enter into the new year which will start the monetization of the UK UK portfolio. So again there's a strong portfolio of projects that are coming forward. We need to see the results of the grid reform and what that means for our projects and then we'll be able to share more information as we come into the tail end of this year or early into next year. And finally the higher balancing costs that we've seen in in the second quarter. We've also seen higher ancillary services revenues and balancing costs. So when the system operator has to step in and balance electricity markets to ensure that the supply and demand in real time are being matched. And unfortunately with increasing volatility in the power systems we've seen in Q2 more of an impact from these balancing costs. And the primary areas where we've seen that are in Finland and in Sweden and Finland certainly for MLK we've implemented a solution in early July which now mitigates our exposure to balancing costs by managing our production in a slightly different way. So we still see some of the challenges in the market that for sure is impact impacting our financial results year to date so far. But as we look into the future we're starting to see futures pricing increasing. We're starting to see that not only at the tail end of this year but also into next year. We've also hedged a portion of our volumes for the second half of this year. So 40 percent of our volumes have been hedged at an average price of around 52 euros per megawatt hour. And that gives us protection against a downside case where we see potentially lower pricing like in Q3 of last year. So I think the market is starting to pick up again. We're starting to see increased pricing. We're starting to see some of the revenues from Greenfield. So I think it feels like we're on a trajectory which is which is going to push us higher in terms of our financial performance as we move through the second half of this year and into next year. Looking in a bit more detail at our production volumes I think the first first thing to cover is that we remain on track for the guidance range that we put out at the start of the year or the forecast range that we put out at the start of the year. We've delivered around four hundred and fifty nine gigawatt hours worth of both produced volumes plus compensated volumes. And I think those compensated volumes are really important going forwards. The way we manage our producing assets and operationally controlling our assets has become increasingly important in today's markets and the ability to restrict the amount of balancing required on our assets and reduce the costs associated with that but also to profit from elements of ancillary services and bidding our volumes into these markets. It's quite a complex piece of work to put in place for all of these services and controls to be able to manage the assets. But on MLK which is the asset where we have the most probably the most cost exposure the most opportunity. We've now put a full suite of services where we can step into both restricting the output in low pricing increasing the output when pricing is higher ensuring that our output is controlled to match what we bid. So we minimize balancing costs that more and more is becoming really important in our in the way we operate our assets and also with the increased cost and increased ancillary services revenues it becomes it starts to play a much more larger role in how we bid our volumes. And so Kass group has some of those services implemented. We're expecting that the remainder of the services come in through the course of Q3 and we move from 20 percent of our portfolio being eligible for these services up to closer to 50 percent. And we'll keep pushing through the second half of this year to lift that even further. And this gives us a lot of things. It gives us resilience against some of the higher costs and low prices. But it also gives us other avenues to to take revenues from when the markets are volatile or challenging or have opportunities. And so more and more we're going to see that rolling out across our production fleet. And finally for me before I pass to Espen a few words on the German project sale I think it's been it's been a long journey for us and I'm sure for the investor community as well to get to the first project sale with we're now two and a half years into this project. We're going to be doing a two year venture with the Greenfield portfolio. And this project is a 76 megawatt agri PV project located in north eastern Germany. And we've sold that project to sex event renewables. We have an upfront consideration of two million euros and the project has all the sale has closed and we've we've received the initial payment. The contingent payment is requiring two elements to be met. One is the municipal the final municipal approval of the project which we expect in the first half of next year. And secondly we need the EU Commission approval of the German solar solar package one legislation which is the which allows this project to be eligible for tariffs. Once we meet those two then we will realize the second part of this payment. And we we are hoping to see the conclusion of both of those in through the course of 2026. Now this project is not the only one. It's the first of many. We have a second project similar location of 93 megawatts which has now reached ready to permit. So the same point as we were with this project back in the first quarter of this year and we expect during the third quarter that this will will hit the market as well. And we should hope to see some revenues from this project either tail end of this year or at the latest early in the new year. And so this really is the start of a monetization phase in Germany where we have a multitude of projects a multi gigawatt pipeline where we expect multiple projects coming through each year. And we said at the capital markets that day that we expected at least five projects over the course of 2025 and 2026. We remain firmly on track with that delivery cycle. So I'm excited to see more from the German team and the German projects. And I think the multiples that we've received on this project in terms of Europe per megawatt hour are very accretive from for us to continue investing in this business and in line with with where we have expected the market to be. And so over the course of the next quarters and into next year we should see the results from Germany. And then with the conclusion of the grid reform in the UK we should start to see the monetization from the UK. And so with those two I think we should be moving into a place where the greenfield business is starting to return that capital back back to our own energy which is a really exciting phase as we move forwards. And so with that I'll pass over to Espen for the financials before Q&A at the end.

Thank you Daniel and good afternoon everyone. I'll go to the financials for the second quarter starting here with some of the highlights. We had the reported quarterly power generation of one hundred and eighty eight gigawatt hours for Q2. And in addition to these reported figures as Dan mentioned we do receive compensation for another nine gigawatt hours related to volumes that are allocated to ancillary services and also some operational downtime which will be compensated through our availability warranties. Achieve price for the quarter was 30 euros per megawatt hour. And we will go through that a bit more detail in a later slide. The quarterly volume and the cheap price equates to revenues of six million euros and the EBITDA excluding non cash GNA items totals minus three million euros in Q2. And we ended the quarter with a proportionate net debt position of 77 million euros. And when comparing that to our debt facility of 170 million euros it is obvious that the company is in a very robust financial position with ample liquidity. Taking a look at our full year guidance and the short story here is that we did deliver in line with guidance on all parameters with operating costs which have been impacted by elevated balancing costs throughout Finland and Sweden. And we are increasing our full year guidance for operating expenses as a result from 17 to 19 million euros. And as you can see on the right hand side of the slide the balancing costs for the first half of 25 are up almost two million euros compared to the corresponding period last year. And this is very much an industry phenomenon in the regions where we operate although it has been more pronounced in Finland and northern Sweden to date. But we are of course taking all measures we can to limit these costs. And for MLK wind farm for MLK wind farm in Finland we have commissioned an automated solution designed to reduce both exposure and associated costs related to balancing. That went live in July and we are pleased to see that the initial results are very encouraging. Also very important to take into account ancillary services revenue in this total picture when you consider the increasing balancing costs. Our ancillary revenues were almost one million euros for the first two months or two quarters of this year. And obviously this is then offsetting a significant portion of the increased balancing costs. So the ancillary revenues are to a large extent a hedge against also future variations in balancing costs since the two items are quite strongly correlated. And as Dan mentioned today our ancillary revenues are coming from MLK. But we are now in the process of also implementing it and making sure that car screw is going live with ancillary services shortly. So going forward you should expect our potential for ancillary revenues to be to increase and be even higher than what we have reported here today this year. And should be in a very good position to offset a majority and if not all of the increase that we are observing in balancing costs. For GNA Sudan legal costs and capex the costs and developments here today have been in line with expectations and plan. And we are then reiterating our fuller guidance for those items as a result. Then some key financial metrics for Q2 and the previous quarters going back to the corresponding quarter in 2024. If you start with revenues they were in line with the corresponding quarter last year which is due to very small year over year variations in power generation and price. And the same holds true for EBITDA when we adjust for the like going divestment in Q2 last year. And I think this chart if you look at this chart if you look at the quarterly variations the seasonal pattern in our revenues is very obvious. Where we normally have most of our volumes during Q4 and Q1. But we also typically enjoy stronger pricing throughout the Nordics which is also something that we expect for this year with revenues picking up during Q4 compared to the summer quarters. But with that being said we are very pleased to see that based on current futures prices and also taken into account that the hedges that we entered into as Dan mentioned we do expect revenues over the next two quarters to be significantly stronger than what we experienced last year. Then a bit more details on our achieved price for Q2 and also year to date. If we start with the Q2 the Nordic system price averaged 26 euros per megawatt hour. Whereas the average production weight the spot price of our portfolio was 32 euros. So sort of the normal premium due to the geographical location of our assets which is very which is favorable with a large portion in high price regions. Ancillary service income GOS and hedging impacted positively by 4 euros per megawatt hour on the cheap price before then deducting capture price discounts to arrive at our achieved price of 30 euros per megawatt hour for the quarter. If you look at the same reconciliation on the first six months you had an average system price of 36 euros per megawatt hour. And again the premium of our portfolio due to the favorable location resulted in an average spot price of our assets of 43 euros during the first six months. And positive impact from ancillary hedging and also 3 euros and an achieved price of 36 euros after netting out the capture price discount which is similar to the average system price during the same period. And although capture price discounts obviously are depending on a lot of moving parts and hard to predict precisely we do expect the average to end up not too far away from the observed level in 24. But you should also expect this to fluctuate quite a bit on a quarter to quarter basis. But the more the longer term average you expect to end up somewhere close to where we are today and the 24 level as you can see on the chart here. Moving on to the quarterly reported cash flow and our liquidity position. Our CFO excluding working capital for the quarter was minus five point two million euros and we had a positive working capital impact of point eight during Q2 and cash flow from investing activities had a total impact of minus five point one million euros in Q2. And out of that those five point one three point nine million euros are capex which is mainly investments into our greenfield portfolio and projects with them the balance or one point two million euros being the net cash flow impact from acquisitions during Q2. And the resulting proportion of net debt position at the end of the quarter was 77 million euros as mentioned which corresponds to more than 90 million euros of liquidity headroom when we combine the cash balance with the 76 million euros of undrawn portion under our revolving credit facility. Summing up then with cash flow outlook for the full year for 2025 where we reflect the actuals for the first half of the year. Before we start very important to note here that here we are excluding all revenues and EBITDA and cash impact from greenfield projects. So the financial impacts from the recently announced project sale in Germany which will be reflected in our third quarter financials will come on top of what you see here on this slide. And we are applying achieved prices ranging from 30 to 40 euros per megawatt hour for the second half of the year which we view as a likely range of outcomes based on current futures. And at the same time also taken into account the price hedges that we have entered into with details shown on the slide here. Starting with revenues we expect to end up between 31 and 36 million euros for the year with a corresponding EBITDA excluding Sudan legal costs ranging between three and eight million euros and EBITDA break even price of 30 euros per megawatt hour for the year. Just keep in mind that that break even price is elevated by lower than average power generation volumes for the year and also then partly due to higher balancing costs which I have explained earlier is partly or fully offset also by higher revenues trans-Hillary services. When you are including Sudan legal costs which largely is a thing of the past only a year from now or less than a year from now EBITDA is expected to end up between minus four and plus one million euros for 25. If we're moving to free cash flow before CapEx we anticipate minus 10 to plus three million euros excluding legal costs and minus nine to minus four if we include them. And I think this chart when also considering our liquidity had room of more than 90 million euros highlights the resilience of the company and underlines the financial capacity we have to continue pursuing a creative growth opportunities going forward. So with that I'll hand over to Dan for some concluding remarks.

Thank you Espen. And before we move to Q&A I think I think it's important to note Q2 and certainly the first half of this year has been challenging financially. We've seen higher costs lower pricing than where we expect to see the long term. But I'm pleased to see that the futures pricing is starting to pick up as we move into the second half of this year. With the hedging that we have put in place which is new for for the company this quarter it really protects us against the low side case where we saw in Q3 of last year extremely low prices on the system and regional pricing in the Nordics. And so with the hedging in place it allows us to secure against the low side but we still have exposure to the upside. And when we look longer term the assets we have have a significantly long lifespan. So when we look at the price forecast as averages into the future we do see that the revenues out of the operating assets are much much stronger. And with the controls we've put in place as Espen touched on on MLK with some of the balancing reducing some of the balancing risk we have the ability to manage our optics and our costs. So I do see that the assets we have will deliver long term cash flow but impacted this year by some of the lower pricing and increasing costs. We're starting to see greenfield revenues coming through and that large scale portfolio is a multi year portfolio that we're going to see projects coming out of year on year. So I'm really excited to see that starting to gain traction and delivering deliver some returns back. And I think as markets pick up we're still building the foundation for growth in this company. So we're constantly adding new projects and new opportunities into our asset base. We have the ability to extend lifespans and repower projects. So all of that is still alive. It's just sitting in the background at this point in time given where markets are. So companies in still in strong shape financially. We see a future that's starting to pick up now and we're starting to see revenues coming in. So it it really is a turning point I hope in the second half of this year. And so with that I'll invite Espen to come and join me again and we'll move into Q&A.

Great. We have received a lot of good questions online. And if you're joining us and you haven't yet submitted a question and you have a question please do so now we will start going through at the moment. So there's a few question around the market. How do you see a path to profitability unless market conditions change.

Yeah I think I think there's a number of things coming. So when I look at greenfield projects as there is significant value in the greenfield projects that are coming we're seeing futures pricing picking up and there's no doubt we need to see higher pricing than as Espen touched on 30 35 euros a megawatt hour. We need to see pricing at or above those levels to see some of the return to profitability. And also with the Sudan costs we're still spending seven million a year on Sudan legal fees which as of next year it drops to probably around half of that level. And hopefully from there it drops to zero. So I think as the market moves slightly we see more revenues from greenfield and Sudan dropping away. I think there's a there's a forecast where we we see the return to profitability much stronger cash flows and the ability to redeploy that capital.

And then there's a question around the volatility and balancing markets. Do you see this systematically higher for the Nordic markets going forward. And how much do you think is driven by the introduction of the automated quarterly hourly balancing model in March.

I think it all has an impact. The change to much higher resolution on the market has had an impact. We're seeing more volatility from more renewables coming into the market. We're seeing the impact of that and we're starting to see the response by operators and others on how to manage this. So for us on MLK now we when we bid a volume into the market we have the ability automatically to match that. And when we match that we have zero exposure to balancing and that that helps some more players that are doing this and more players that are active in the market to manage their production the less cost there's going to be to balance the grid. So I think it is a it is a state of flux where people are getting comfortable or getting up to speed with how the system has changed. But with more volatility we will see balancing costs increasing. That's directly related to the ancillary services that we're providing. So we've seen a similar increase in the ancillary services revenues and we need to get more of our assets qualified into that market to to then be hedged on both sides of it.

So given that the market for wind assets is weakening which has been of course widely reported in the media especially SC1 and 2. What significant risk is there that Oren will have to take impairments.

I think maybe you touch on impairments and I can touch on market. There's no doubt it is challenging SC1 and 2 are really challenging and the media has covered it well in in Sweden. We see an achieved price or even a system. Sorry not system a regional price or an achieved price significantly below where the variable costs are. And with the rest of our assets we will take decisions to shut down production where it is more profitable to not produce. And I think for a lot of players in SC2 that's that's the reality as it stands today. As we see demand increasing which we expect to do over time we will see the pricing coming back up. And as of today there will be no new wind investments in wind solar any technology investments in SC1 and 2 if the price we're seeing today persists long term. I think we don't have a great deal of exposure into that. So it's less of an impact for us and maybe on impairments you want to touch the broader

portfolio. I will. So thanks for a question. I mean obviously that's something we are reviewing periodically. I think it's important to note that we have high quality assets with many many years left of cash flow with low breakevens and also to take into account that many of our assets in particular the one we have in SC2 and we have very limited exposure to SC1 basically zero are already quite heavily depreciated. So we haven't seen any triggers or signs or any risk around that to date given the high quality of our portfolio and the low breakevens compared to future price expectations. And it is important to keep in mind as Dan said that current prices are basically below breakevens for all new supply when it comes to renewable technologies in the Nordics.

Great. And then we got quite a lot of questions actually around the Greenfield pipeline. Looking at the UK process can you confirm that your position to receive grid connection offers and what is a realistic time frame for your first product sale in the UK.

Yeah. So ahead of the grid reform in the UK we had confirmed grid for all of our projects with the grid reform process. We need to now go and confirm those positions and there's a number of new criteria that the UK system operator has put in place. And so we have seven projects that have already been submitted into that process. The window for applications is still open and we're qualifying potentially one or two projects that we may add into that should we secure the land positions in time. And then we have to wait and see the outcome from that process to see how to move forward. There's some of our projects that are guaranteed to get a gate to connection because of the size scale type of project. And there's some that we will wait to see what the system operator provides. Now longer term there's a there's a pathway in the UK where you move into the gate one process which is a more softer commitment and then gate to which is a much firmer commitment on grid. All of our projects that we have today will remain in gate one as a minimum and have the ability every year to move forward through the gate to process. So we expect to see some some of the results from the gate to giving us confirmed grid of the right date and location which then allows us very quickly to move into a sales process for either a portfolio of projects or individual projects depending on the outcome. So by the end of this year I think it would be difficult to see any results from a sales process. We should see the results of the grid reform through the course of Q3 or Q4. And then we step into sales potentially in the early in the new year. So I would say it's it's in the early part or certainly first half of next year when we see the results of a process. But we'll share more information as we receive it from the system operator later this year.

And then for the German project that you sold end of July. What was your IRR for this project.

Yeah I think we'll disclose more details in the in the Q3 results with the profit on sale and everything linked to the project which will be in our Q3. And at this stage what I would say is that it's a it's a healthy return on capital employed. I think IRR is probably the wrong way to look at this investment given the returns on on capital deployed into the project. But we we certainly see multiples that are very very healthy to continuing investing. And it underpins a business case that we originally set out to achieve on this.

And on that note we also just received a question around the pace of sales in Germany. Are you expecting one product sale per year or more.

I think we should expect two to three as as we said earlier first project sold now second project is at the same stage that this one was around three or four months ago. So the second one we expect to launch imminently which then proceeds tail end of this year or next. So I'd say at a minimum two to three projects a year in Germany. And they are smaller scale than what we see in the UK where the UK is more like gigawatt scale projects. These are closer to 100 megawatts of projects. So two to three a year in Germany. And then once we see the outcome of the grid reform process we'll be able to share more in the UK.

And are you also looking at the best in Germany given the strong penetration of renewables and the face out of fossil fuels.

Yeah we have so across our portfolio we have solar battery and data centers in both the UK and Germany. And we have in the Nordics we have solar wind and batteries. So we have exposure to all of those in the UK. We have a couple of data center projects that are in this gate to application and we'll move forward on all all opportunities we have within that greenfield portfolio.

And in terms of the full pipeline what does it look like in terms of scale products at RTP or expected to reach RTP soon etc.

I think there's there is a large scale pipeline. We have everything from initial land leads through to ready to permit projects across the country. So we said earlier multi gigawatt in Germany which is right. And you should expect that two to three sales processes a year is about the right level as we mature this. And we could have some years which are stronger than that and some years which are less depending on the progress. We have come out before with around three to four gigawatts in Germany. We're around that level depending on how you look at the early stage projects. And in the UK we came out originally with in total a 40 gigawatt pipeline of which 36 was the UK. We're still at that level. I think as we mature this platform though it's more important to look at the tangible projects that have reached all the permits that are hitting the sales process to be able to forecast the revenues. And I think that two to three projects a year in Germany of around 100 megawatts a project is right. The UK is a bit more difficult until we see the outcome from the grid reform.

Great. And going into more of the business strategy. Do you have you considered a potential sale of for example MLK given that it's in Finland and that it's in a potentially not that attractive price area according to some people looking at the past.

I think Finland Finland is a relatively strong price area. We've seen increased capture price discount and other challenges in Finland over the course of this year. So I'd say like always all of our assets are for sale at any point in time. And if the transaction looks accretive for us then we'll move forward on it. I think at this at this point in the market if we are able to realize revenues from an asset that are that are above where our holding values are on the asset then we will certainly look to move forward with something like that. And that allows the ability to deploy that capital into a number of more creative opportunities. So I think you shouldn't be surprised if something comes to market like we did with like anger. But there's nothing to share at this point in time.

So previous quarters you kind of why you decided to do this at this time and place.

Yeah I think I'll pass to Espen in a sec. But the price hedging with we have said we don't believe it's the right thing to do for a number of quarters. That's that's correct. And we've also said that when the conditions are right and we start to see a bit more accretive markets that we will step into opportunistic hedging. We've only hedged the second half of this year at this point in time and we've hedged at an average of around 52 euros a megawatt hour. If we compare that to the cheap prices in Q3 of last year at close to single digit low double digit achieved pricing I think it's a it's a very prudent measure to step in when markets are recovering like this. It's not like we're locking up a 10 or 20 year hedge at this level. It's two quarters to protect in what we have seen in the last quarters as a very low price. I don't know if there's something to add. No

I fully agree. I think that's that's the key point that you need to distinguish between locking in significant portion of our volumes long term and now taking a more short term opportunity. What do you do as attractive pricing over the next six months to reduce some downside risk basically especially over the summer quarter but also Q4 pricing which we view as quite attractive when we look at it. Keep in mind that this is 40 percent around 40 percent of our C3 and C4 volumes. So typically around a quarter of total volumes. I mean so we are you know if you look at it generally we are obviously first and foremost the merchants but then they now have a additional or hedge to all of them also to protect the downside risk.

So given where the share is trading today what is happening around the buyback discussion that you mentioned previously.

Yeah I think there's no doubt that we remain undervalued and even even when we bring news like the Greenfield sale which I think is a very accretive return on capital we still see undervalue in the in the share price. I think the financial performance yet today has been challenging no doubt. And as it stands today we have a mandate from the AGM to buy back shares. So the discussion is very very much alive within the company management and board to explore this. And I think we need to we need to see some further capital coming into the company to move into a buyback scenario. But as soon as that is available then we will look to execute on it. I think that the best thing we can do from a capital allocation perspective today is to buy back our own shares. And secondly we need to ensure that we're starting to see revenues and focusing on getting the revenues into the company from Greenfield.

And how do you prioritize between many opportunities project developments or buyback in the current market environment.

I think it's it's challenging to move into large scale lemonade today with the use of debt. I think the use of equity to move into capital is something is much more attractive but not at these price levels. So I think the best thing we can do is ensure we're delivering revenues from Greenfield seeing the benefit of that Greenfield platform we start to secure the revenues from the green from the producing asset side. And then we have a lot more capital to deploy into this. But I think all of these options are on the table. They're all measured equally against each other. And the most accretive use of capital is where you will see the capital deployed to.

And are you accepted or are you prepared to accept lower valuation on product sales in order to accelerate cash flow and strengthen the balance sheet.

I think all assets are for sale at the at the right price. And it depends if we roll back to 2022. It's a very different price to where assets are valued today. But if we look at the value of an asset in our share then you're willing to accept a very low value on the asset to be able to buy back shares. So I think each case is a different price. Is individually assessed on its own merits. What it means for the company what the valuation is and what the use of those proceeds is. But I think a fair value in today's market for an asset allows us to redeploy that capital into a much more creative use like a share buyback or an expansion or project development which then I think is very accretive for shareholders. So all options are on the table. You should expect us to explore them all.

Perfect. There are no further questions. So with that I would like to thank you. Thank you both. And thanks everyone for joining this webcast. Please reach out or send us an email in case you have any further questions and wishing you a great afternoon.

Thank you very much. Thank you.