Norwegian Energy Company ASA Noreco Aktie

Good morning, everyone, and thanks for joining us for our Q1 results. It's been a volatile couple of months. So before going into how BlueNord has performed over the last quarter, I want to start by giving some color upfront on what we think that means for us. If I look back to the turn of the year, we felt like we were well set. We were fully prepared to deliver on our return commitments based on $60 oil. That was ultimately the benefit of the design of our distribution policy. We'd be in good shape regardless of the commodity price environment. The whole point was to have something flexible and therefore, resilient.

I think it's fair to say that everybody who's going to be listening today is familiar with what happened since. The conflict in Iran has put energy security back at the top of the agenda and has pushed prices higher. And the same structure that was set up to protect on the downside will now let shareholders fully capture the upside. Higher prices are going to translate directly into higher returns. Now you're going to be happy to hear that I'm not going to stand in front of you today and tell you that I know where prices go from here. But thankfully, that isn't our job.

Our job is firstly to make sure that BlueNord is positioned for all eventualities. And secondly, to make sure that we're getting everything we can out of the business regardless of the commodity price environment. And on both those points, I think that we're well set. So firstly, the structure of the distribution policy means that 70% of operating cash flow goes back to you. So when prices rise, shareholders feel it quickly. But it's also important to note that the 30% that we keep also goes further in dollar terms, which means that the balance sheet keeps getting stronger in the background.

Turning then to the capital structure. So we've always been proactive in making sure that it reflects both the strength of our balance sheet and the underlying strength of our business. And today, we're continuing in that vein. We announced that we intend to have meetings with fixed income investors this week with a view to a possible refinancing of BNOR16. That's the backdrop. Now if we turn to the next slide, we can start going through how we've performed over the last three months. Before we get into the detail, I want to give a quick reminder of who we are for anyone that might be newer to the story. BlueNord is an independent E&P focused on Denmark.

We're producing over 40,000 barrels of oil equivalent per day through our 36.8% non-operated interest in the DUC. That's operated by Total Energies. What this position gives us is exposure to four hubs, 14 producing fields and resources of around 200 million barrels of oil equivalent. It's a high-quality, well-diversified portfolio. The base, Dan, Halfdan, and Gorm, has been producing for a long time. It's low decline, It's predictable and it does what it's supposed to do quarter after quarter. Tyra remains the growth engine even although we've already seen that step change in production and cash flow generation that we've been talking about come through, there is more room to run. So you've got stability underneath and momentum on top. That combination, together with our tax loss position drives not only our cash flow and distribution profiles, it's also what makes us particularly relevant to European energy security. And if we turn to the next slide, we will talk about that.

So if the last few months, in particular, have taught of anything, it's that where energy, and in this case, oil and gas comes from matters. Producing locally for local use has real benefits -- not least less reliance on imports and therefore, less geopolitical risk. The DUC sits right at the heart of that. It's the bulk of Danish oil and gas production. And with Tyra back online, Denmark is once again a net exporter of natural gas, contributing directly to EU energy security.

But what Denmark like is a place to operate? Well, the regulation is clear, the fiscal regime is steady, and there's an honest recognition from policymakers that domestic gas has a role to play in the transition. That last point, in particular, isn't always the case in Europe, so we don't take it for granted. But in that vein, it was genuinely encouraging to see the government signal recently that it would look at extending the DUC license from 2042 out to 2050. Landing that extension will be meaningful for us. It gives more time to produce the volumes that we already have, more time to invest in the projects that we've already identified and financially, pushing abandonment further out enhances the long-term profile of our business.

Now let's turn to the next slide and look at how we intend to make the most out of the position that we have to drive volume. I'm happy to say that the story here is actually pretty simple, and we do like to keep it that way. We've got a stable low decline production base. We've got Tyra, which has already delivered a step change with more to come and we've got a clear plan to hold production at or around current levels through at least the end of the decade. That last point leads nicely to one thing that I want to be really clear about. We're focused on value, not volume.

Our plan is built on real projects, not the promise of new volumes that need to be found through exploration. But equally, we're not trying to maintain or grow production for the sake of it. Every project that we have has to be genuinely additive. And it's our discipline here that feeds the cash flow story. Higher prices help in the near term, but the structural piece is that we've got a lower cost base and flexibility on CapEx. That's the model. We generate cash. We return as much of it as we sustainably can and we keep deleveraging in the background. For the scorecard on that, let's turn to the next slide. So distributions are the core pillar of our equity story, returning capital to shareholders.

In early 2024, we set a distribution policy that would see us return between 50% and 70% of operating cash flow through to the end of 2026. Since then, we've consistently delivered at the top end of that range. So far, across 2024 and 2025, we've returned over $500 million. And if I include the Q1 distribution that we're proposing today in that total, that takes us past $600 million. Looking forward, the position that we have in 2026 is significantly stronger than we expected it to be when we originally set our current distribution policy.

Two reasons. The first is because the power ramp-up took longer than we expected, our tax loss position is now set to shield us from hydrocarbon taxes well into 2027. Second, under the existing policy and with higher prices in the near term, the cash we keep that 30% of operating cash flow is also bigger in absolute terms. So the balance sheet gets stronger at the same time as returns get larger. It's not one or the other, you get both. And that's also particularly relevant in the context of the potential BNOR16 refinancing that we announced this morning. As we keep deleveraging, we want to make sure that we've got the flexibility to set distributions at a level that reflects the strength of the business and the cash flow that it generates. We'll set the distribution policy for 2027 onwards in due course, but I hope the direction of travel is clear to everyone.

We'll continue to be a company that targets an attractive return to shareholders. And in setting that policy, we'll continue to take into account four main things: First, our ability to manage our debt commitments, including the hybrid, Second, capital for our investment and operational plans; third, maintaining a strong liquidity position; and four, making sure that we have a sustainable capital structure through the cycle. And with that, let's turn to the next slide on the performance summary for the quarter.

Miriam, Cathrine and Jacqueline are going to take you through the detail in a moment. So I'm going to keep this as short as I can and just focus on the headlines. It was a good quarter for us, both on operations and financials. Production came in just over 43,000 barrels of oil equivalent per day, about 20,000 from the Base and just under 23,000 from Tyra. So the Base is doing what it always does, producing steadily, and Tyra has already delivered the step change growth that we expected. That said, Tyra does still have further to run. So we're absolutely not declaring victory yet. There's still work to do to get the full potential out of the hub. But the direction of travel is positive.

We have fewer unplanned shutdowns this quarter. It's running more steadily. And with the operator focused on fixing some of the identified constraints, we see a clear path to reaching peak production in the second half of the year. That's in line with the 2026 guidance that we set out last quarter. On the financial side, we delivered $318 million of revenue in Q1, just over $200 million of EBITDA and $141 million of net operating cash flow. The cost prices rose sharply in March, we did have a working capital build at the end of the quarter, but we'll see that start to come through in Q2. On the capital structure, leverage is down to around 1.7x and liquidity sits at around $460 million. So finally, the message that I want to leave you here is straightforward. We're delivering. We're generating cash, we're returning it and the balance sheet is getting stronger. And that's exactly what we plan to keep doing. And with that, I'll hand over to Miriam. Thank you.

Thank you, Euan. And as Euan said, I will now take you through the operational performance for the quarter. Overall, our Q1 performance was driven by three key things: the resilience of our base assets, continued momentum at Tyra and disciplined execution across the portfolio. We delivered within guidance for the quarter. And importantly, we achieved our highest quarterly production since the restart of Tyra. Dan, Halfdan and Gorm provided stable and reliable performance, while Tyra continues its progression from stabilization into growth. I will now show how this performance underpins our continued operational momentum and supports a clear pathway to further value creation through 2026.

Let me start with an overview of the total production for the quarter. We have delivered consistent production growth over the past 5 quarters. This reflects both the resilience of base assets and the continued progress on Tyra. Q1 delivered the highest average quarterly production since Tyra restart at 43,100 barrels of oil equivalent per day. This achievement underlines the progress on operational performance that the operator, TotalEnergies has delivered. Looking ahead, Tyra continues to drive near-term production growth, while our base assets remain reliable contributors to overall DUC performance.

Targeted maintenance through the year supports stable operations, and our focus remains on maximizing asset performance by reducing operating costs. During Q1, our base assets delivered resilient performance with average production of 20,100 barrels of oil equivalent per day. On Gorm, the benefit of lifetime extension program are now clearly materializing with operational efficiency exceeding 95% in March. Earlier in the quarter, Gorm production was impacted by lift gas compressor issues and weather-related delays following a generator trip. Once resolved, production stabilized and exceeded expectations towards the end of the quarter.

On Dan,underlying production potential remained robust, although realized production was temporarily impacted by compressor-related trips and an internal multiphase flow line leak. These issues were result and production recovered as the quarter progressed. Halfdan delivered stable production overall with short-term reductions linked to vibration issues on a compressor from mid-February. Normal operations were fully resolved from mid-March. ROM activities on Gorm will commence soon and continue through 2026. The work will be executed cost effectively from the platform. Dan rightsizing activities have been initiated to reduce OpEx.

So looking ahead, we expect stable contributions from the base assets through 2026. Planned maintenance will cause short-term production impacts, but this work is essential to maintain long-term integrity and high operational efficiency. Turning to Tyra. Q1 showed clear operational focus. We delivered a quarter-on-quarter increase in both production and operational efficiency with average production of 22,900 barrels of oil equivalent per day. The strongest quarterly performance since restar of Tyra. Tyra did experience operational issues during the quarter, each of them resolved within less than 24 hours. Issues were mainly related to facility work, third-party and weather. And in the stable periods, Tyra delivered around 25,000 barrels of oil equivalent per day.

In Q4 2025, Tyra demonstrated that the facilities can operate with very high reliability, achieving 95% uptime in December. Overall, operational efficiency in the same quarter was 69%, and reflecting that not all wells were online and capacity constraints remained. An average operational efficiency of 80% was achieved in Q1, which marks a clear improvement since last quarter and provides a strong foundation for continued performance uplift, reflecting increase in available well potential and a reduction in capacity constraints.

Our focus to unlock full Tyra potential is centered on three areas: firstly, to increase available well potential; secondly, to improve processing and export capacity and thirdly, to rectify reliability issues. Processing conditions have improved, supported by several upgrades to liquids handling and the operator continues to optimize processing and export. The planned October 25 shutdown materially improved stability and a further shutdown in June will address key reliability upgrades to the surface system to support more stable operations going forward. The improvement in stability has supported bringing more wells on stream. The March Walk-2-Work campaign successfully brought five additional wells on stream, materially increasing available well potential. A few operational steps remain to further increase production. I will provide more details on this on the next slide.

Overall, we see consistent quarter-on-quarter improvement, underpinning our confidence in Tyra's path to higher stable production and its role as a cornerstone asset. At full capacity, Tyra will also materially improve our cost base, which Jacqueline will cover in more detail later. As highlighted, operational reliability and stability continue to improve, enabling more wells to be brought on stream. A small number of operational impacts to production have been identified with clear steps defined to further increase production.

The production from the Harald East Middle Jurassic, HEMJ, is currently constrained by surface choke capacity. The reservoir is performing as expected, but the size of the existing choke limits the flow at service. This was a known constraint, but we need a shutdown to replace the choke. A larger choke will be installed during the already planned June shutdown. Oil-in-water challenges related to a small number of wells have been observed. To manage this, some of the wells have been choked but temporarily shut in. This was observed when a few particular wells came on stream. To mitigate this, water treatment optimization is currently underway to restore full capacity. As additional wells are brought online, well slugging has, at times, process stability requiring well to be temporarily choked or shut in. Work is ongoing to further strengthen separation robustness and operability.

So in summary, these impacts are temporary, operational and service related, not well or reservoir. Mitigations are progressing according to plan and we're solving these as a key step in converting improved operational stability into higher, more sustained production. To summarize the Tyra status, operational efficiency has improved more than 10% since Q4 2025. And whilst a few minor production impacts have been identified, there are mitigations underway. Both well and reservoir performance are maintaining robust levels. The operator continues to focus on process stability, reliability and unlocking the full well potential to further drive sustained production growth at Tyra.

The planned shutdown in June 2026 will deliver key reliability upgrades to enhance the operational stability. Tyra production has increased quarter-on-quarter since we start and efforts in the second quarter are expected to further increase production output during the second half of 2026. Our strategy is to maintain momentum, maximize the value of our assets and ensure long-term stability for Tyra. And with this overview of operational performance, I will now hand over to Cathrine, our Chief Corporate Affairs Officer, who will take you through the long-term outlook for BlueNord. Thank you.

Thank you very much, Miriam, and good morning to everyone. BlueNord current and future production is of great strategic importance, not only from an energy security perspective, but also as a source of revenues to Danish economy. Oil and gas revenues support the Danish welfare society through tax revenues, both from the companies and its state-owned entity Nordsofonden with a 20% working interest and also through the skilled employment. Previous quarter, we announced that we had been invited by the Danish Ministry of Climate Energy & Utilities to explore a potential extension of the DUC license to 2050. This is a proof that Denmark is taking a responsible and pragmatic position, recognizing its role in the European energy markets.

Today, is highly dependent on imported energy. Almost 60% of its current oil and gas consumption is imported from other countries. And of those volumes, only 30% of the imported gas and as little as 21% of the imported oil are from democratic countries. The current escalated geopolitical uncertainties, including the ongoing Iran conflict underlines the strategic importance of reliable European energy supply. Danish oil and gas production continues to play a critical role in supporting regional energy security, providing stable, low emission and domestically sourced volumes that reduce reliance on imported alternatives. And an extension of our license to 2050 makes more sense today than ever before.

And it would be something Denmark can be proud of as it's a tangible contribution in reducing Europe's dependence on imported energy. And then moving to the next page outlining our substantial discovered resource base. The 2025 annual statement of reserves we published in March, and is also reflected on this page. We have 173 million barrels of 2P reserves, of which 148 million sit in the producing assets and 25 million are approved and justified for development. In addition, 23 million barrels are defined as near-term 2C resources, meaning that they are progressed and are on a pathway to being converted into 2P reserves.

Our clear focus is to maximize the economic recovery from the DUC, meaning moving 2C resources to 2P reserves and also mature longer-term resources and unlock what we define as additional potential. The nonproducing reserves and resources from the previous page are here represented as high-graded projects. These are both development projects and infill wells. For the development projects, we have started reworking two of them: Halfdan North and Valdemar. Bo South. This is to simplify the complexity of each project and reduce CapEx significantly.

This means that the volumes are slightly lower, but each barrel will be more profitable. This is also reflected in the improved CapEx outlook for the next 4 years, where value over volume has been the key criteria. The third project and probably the one to expect first is Tyra North. This is a tieback to the new Tyra facilities, further utilizing the efficient and new processing facilities which we aim to backfill to the greatest extent possible. Tyra North is a material project in terms of value for us and is set to deliver almost 20 million barrels net to BlueNord. And for all three projects, the unit technical cost is low at less than $20. We also have several infill wells in the portfolio and a jack-up rig is expected to commence work next year is going to carry out these activities for the DUC.

Infill drilling is a very cost-efficient is very cost efficient -- a very cost efficient with a development CapEx of less than $13 and it's also really a quick way of adding additional production. As of today, we have planned 2 wells in Halfdan, 1 on Valdemar and 2 on Svend, together representing 11 million barrels. Infill wells typically reach peak production fast and have a relatively quick decline, but then flattens out with a long, nice production tail. So what you want to do is drill them in sequence such that you have an impactful collective tail of production. Finally, we have the undefined wells we today call additional potential. These are mostly wells on Tyra, where we see great potential for infill drilling. The redeveloped Tyra unlocked a gross potential of about 200 million barrels of resources, which means we have a high set of opportunities there. And then finally, bringing the previous pages together in this updated production profile.

This slide illustrates the materiality of existing business and the planned investment activities. With the reworked project, and phasing of activities, you will notice that the production looks a bit different now. We are expecting production to remain just shy of 50,000 a day this decade However, you should expect this production to be more profitable than the previous profile did. Also, you can clearly see that the volumes from 2031 and beyond are more material. Overall, the production is staying at a much more stable level for the next 10-plus years. And not only is the production more predictable the other barrels from the project are more profitable as they have been reworked.

This is where you see the value over volume take effect. We would rather execute the project, delivering lower production. If that reduction is more profitable per unit. And while we have a very strong commodity price environment today, with this approach to CapEx, we can also sustain any future low price scenario. The production is only constrained by the expiry of the license in 2042. On this day, production would still be profitable for us at about 15,000 barrels per day. One thing we have not illustrated yet is how this production profile may look if we extend to 2050 and further investment opportunities are unlocked as a result of that.

Again, value over volumes as a guiding principle, but we believe that there is a strong upside in an extension such that BlueNord can play a longer-term role in delivering into the energy needs of Europe. And I'm now going to hand over to our CFO, Jacqueline, who will take you through the Q1 financials. Thank you.

Thank you, Cathrine. I'll now walk you through our financial performance and how the operational progress you've just heard about is translating directly into cash generation and importantly, returns to shareholders. The key message for Q1 is still that Tyra has fundamentally changed the cash flow profile of the business, and we are now in a position where higher production, lower unit costs and disciplined capital allocation are aligned to deliver significant free cash flow. This continues the delivery on what we said we would do and is translating into meaningful returns. And with that foundation in place, let's turn to how this operational progress is showing up in our financial performance for the quarter.

At a headline level, we delivered strong profitability and cash flow again in Q1. all significantly up year-on-year. It is also a strong result quarter-on-quarter and has been supported by stable Tyra production and higher commodity prices. Revenue is $318 million for this quarter, EBITDA of $201 million and net cash flow from operating activities is $141 million. Cash flow generation showed some working capital build up this quarter, and this is due in part to higher prices driven by the conflict in Iran starting late in the quarter. and volumes of oil sold in the last month of the quarter being higher than we usually see. Now from a balance sheet perspective, leverage has continued to trend down as we have been targeting and liquidity remains strong with a continued positive outlook. This continued cash generation alongside a robust balance sheet creates meaningful capacity for returns. Now let's look in more detail at how this performance is delivered and managed through our key areas of focus: hedging activity, cost management and sensible capital allocation.

Our hedging program continues to do what is intended, downside protection for cash flow and also visibility. A significant proportion of both oil and gas volumes are hedged through to the end of 2026. This is smoothing some of the impact of market volatility. And we do continue to add volumes where it makes sense to do so. Now we have not added a lot since we last showed this slide in late February and early March, but it is important to highlight that we continue to monitor the market for good opportunities, especially now further out on the curve in time. We've hedged 67% of forecast oil volumes and 65% of forecast gas volumes through to the end of '26. But much of the remaining unhedged '26 exposure, we've added some downside protection through puts at $75 per barrel and EUR 40 per megawatt hour. Now the geopolitical situation remains uncertain and volatile, where commodity prices will head and over what time horizon is unclear.

This is why we see downside protection as valuable. It provides a flow and a level of certainty during times of significant uncertainty. With pricing volatility managed and the driver of cash flow growth is on volumes and cost efficiency which brings us to the cost base. As Tyra production has stabilized, unit operating costs remain at the low end.

The modern facilities at Tyra are significantly more efficient and as volumes increase, the largely fixed costs of the DUC are spread over more volumes. The Q1 26 unit OpEx is at $23 per BOE and lifting cost at $15 per BOE, tracking around the target level, and we will benefit further when Tyra reaches her full potential. This cost trajectory is a key enabler of sustainable cash flow growth and underpins the resilience of our margins going forward. Lower unit costs, combined with higher production drives the consistent step change we are now seeing in operating cash flow. So this is the key metric that ultimately defines distributions, net operating cash flow. For this quarter, it remains consistent with the prior quarter, driven by three factors: consistent production and costs, hedging and support from our tax loss position. As Tyra maintains stability, operating cash flow remains strong, and that directly drives our ability to distribute capital to shareholders.

This quarter ended with net operating cash flow of $141 million and before working capital, that is $186 million. This maintains our strong cash generation from the prior quarter. We also note that this quarter also had a higher tax payment than the prior quarter at $16 million compared with $3 million. So as cash flow grows, it's equally important to look at how we continue to maximize the business in a focused way with capital intensity significantly lower post Tyra. With the completion of Tyra redevelopment, capital expenditure has stepped down materially, and we reiterate our guidance from the prior quarter. For 2026, we expect CapEx to be in the range of $40 million to $50 million. And looking ahead, it remains in the $100 million to $150 million per year. This is, of course, subject to project sanction and timing. The future reinvestment though, will be disciplined, value accretive and carefully phased, which links with what you heard from Cathrine earlier.

This combination of higher operating cash flow and lower CapEx creates real financial capacity to deleverage, to maintain balance sheet strength and of course, to return capital. So now we can look at what strengthens our business with the liquidity, which underpins our financial flexibility. So by the end of Q1, we maintained a strong liquidity position, closing the quarter with $460 million. This was supported by robust operating cash flow generation after capital investments, financing costs and distributions. The $350 million of undrawn RBL capacity provides financial flexibility. So with liquidity covered, we'll now touch on leverage and the long-term balance sheet resilience on the next slide.

Capital management remains disciplined and proactive. There are no near-term maturities and leverage is declining as expected. Leverage at the end of this quarter was at 1.7x. Now we extended the RBL in February, moving the maturity out to 2031. The next key financing activity this quarter is our launch today of fixed income meetings in contemplation of a potential bond issue. This would be used to repay our existing BNOR16 bond. We see this as a proactive step after finalizing the extension of the RBL given the balance sheet strength we have now to continue to ensure the capital structure is fit for purpose.

So with a resilient capital structure in place, we continue to focus on what this means for shareholder returns. Returning meaningful capital to shareholders remains core to our strategy. Our policy of distributing 50% to 70% of operating cash flow through to the end of '26 is unchanged. The track record matters here. Distributions to date have been at the top end of the range, and the slide summarizes what has been paid to date and what is proposed for Q1. This quarter, we proposed a distribution of $100 million. From 2027 onwards, we plan to maintain meaningful and sustainable distributions supported by cash generation.

To close, the financial results demonstrate clear capacity to continue returning meaningful capital while maintaining balance sheet resilience. The combination of stable production and lower CapEx, growing free cash flow, combined with a resilient balance sheet underpins our ability to deliver meaningful and sustainable shareholder returns. In line with our stated distribution policy, and that -- with that, I will hand back to Euan, who will take you through the final section on our strategy and our future.

Thank you very much, Jacqueline. Before we open up for questions, I'd like to just bring it briefly back to strategy. So again, hopefully, a theme that you've heard quite a lot this morning is that we like to keep it simple. So we intend to keep doing exactly what we've been doing, getting the most out of the assets that we have, and making sure that we've got the right setup on the financial side to allocate capital in a way that's right for us. Today, that's very much focused on the DUC, the DUC, where we're a low-cost producer with long-life assets. We're reviewing potential growth opportunities in Europe, but as I've said clearly before, and to reiterate again, these need to be additive to our existing strategy and accretive to returns. We're highly selective, the bar is high, and it's going to stay that way.

The reason why we're so fixed on that is because one of the core principles of our story has been a focus on producing cash flowing assets. We have a clear view on what we do with the cash that we generate. We want to make sure that we maintain a resilient balance sheet, and we have a commitment to returning as much cash as we sustainably can to our shareholders. Those are the principles that we're going to stick to. So the test for any new opportunity then flows directly from that. Does what we're looking at strengthen or dilute our ability to deliver against those principles? If it's dilute, then we won't do it. And with that, if we can turn to the final slide, we'll wrap up.

So irrespective of how long the current market environment lasts, we're in a very different position today than we were even just 1 quarter ago. Ongoing supply disruptions have pushed prices higher, yes, but they've also put the physical availability of energy back at the center of the conversation. And that's a conversation that we think we're directly relevant to. We have a high-quality asset base in Europe, producing into a market that increasingly value security of supply. Tyra is getting more stable and there is more growth still to come. What that means for our shareholders is also straightforward, higher distributions in the near term and a stronger position to keep those distributions going for longer as the balance sheet continues to strengthen. So let me leave you with this. We delivered while prices were lower, and our approach in a higher price environment doesn't change. We're just able to deliver more. So thank you. We'll now pause for any final questions come in, and then we'll come back to provide some answers. Thank you.

So the first question, what was the Q1 working capital investments related to? And when will it reverse?

Yes. So the working capital buildup had two factors. Obviously, prices started to increase at the back end of the quarter in March. So that is a part of that increase. We also had higher than usual lifting of oil in March. So it wasn't smooth across the quarter, rather seeing it lower in February, but then higher in March, which then meant those volumes we end up receiving the cash in the following months in April. So in terms of then the question of when will it reverse obviously, with high prices, some of that will be remaining in the working capital until prices go the other way. The lifting, that's more of a timing thing of when our liftings occur on oil. So it can reverse next, but it is a timing thing.

And what explains the increased production costs quarter-on-quarter?

Yes. So a part of this is a phasing, we have a number of things in the admin cost. And there is also a part, of course, that we have a fairly fixed cost base. So with additional volumes that we expect from Tyra going forward, then, of course, the cost per BOE will then be lower going forward. One of the other things there was some additional costs just on the production side on it with fuel and the like that was slightly higher in this quarter. So nothing that we expect to be sustained.

And then can you shed some light on the $85 million unrealized derivative loss in Q1?

Yes. So this is -- we have some swaptions in place. So this is the value of the options. So it's an option for a swap that doesn't meet hedge accounting, which is why you see it in the P&L and as highlighted, it is noncash. It's a fair value movement on that option that will then convert at the end of the year, either the swap being taken out and then moves into hedge accounting at that point in time and will become part of the hedge profile from there on. So we will probably see some more volatility, obviously, while commodity markets and prices are volatile.

And does Iran war and current forward curves impact your thinking around hedging?

So we do have our hedging policy. And obviously, that's underpinned in the RBL. So we do hedge still at the base level at 50% in the year ahead and 40% in the second year. So that will still form the basis for our hedging. Of course, we do look forward and are very cognizant of when is it attractive to them. Add more hedges, particularly where prices are high. So we're being strategic about it. I wouldn't say that that's different. But obviously, I made the comment as well that we haven't put any more volumes on or significant volumes on. So I think that's an indicator that right now, it's not as attractive to put in over and above the base policy.

And regarding changes to proposed dividend covenants in the new bond, how is the support from existing bondholders on that change?

So we are starting conversations today, but I think the principles are hopefully already well understood. What I can say already is that this isn't just about a relaxation of distribution covenants. It's mainly about having a capital structure that reflects the strength of our underlying business and the balance sheet that we now have.

And then as is a sort of outcome of that is having flexibility on the distribution side that's then reasonable in that context. It's not about taking advantage of higher prices today. It's about making changes to reflect a position that we've been building for a long time now. If I just look back over the last 12 months, even with relatively lower prices and for making substantial distributions we've already delevered significantly, and we expect that to accelerate with higher prices. And even if the supply situation that we have at the moment is addressed today. So overall, the outlook for our business and our balance sheet is much stronger than it was when we originally placed the BNOR14 -- sorry, the BNOR16 bond in 2024.

Thank you. That was the final question. Thank you for listening in.

Good morning, everyone, and thanks for joining us today. Before we walk through our recent performance and outlook, I'd like; to start by reflecting briefly on BlueNord's year as a whole. 2025 was the year when what we offered to our shareholders really shifted. For a long time, our focus was on building the operational portfolio, getting Tyra back on stream. Then this year, that work has finally translated into tangible returns. We've moved from building the business to returning capital from it. Has everything gone perfectly? No. Have we had challenges to overcome? Yes. But the direction has been clear. The discipline has been there and the progress we're making is real.

And now let's look ahead to the remainder of 2026. The priority for us here is really straightforward, maximize delivery under our existing distribution framework, converting operational performance into cash flow, converting cash flow into distributions and maintaining a conservative capital structure. And what that means in simple terms is 2025 was about starting to deliver meaningful returns. 2026 is about maximizing them. And from 2027 onwards, it's about sustaining those distributions over the long term.

With that context, let's turn to the first slide. BlueNord has a focused portfolio built around our 36.8% nonoperated working interest in the Danish Underground Consortium. Together with the North Sea fund in TotalEnergies, that gives us exposure to a high-quality diversified asset base with more than 220 million barrels of 2P reserves and near-term 2C resources. These volumes sit alongside a meaningful longer-dated 2C resource base.

Since Tyra came back on stream, our net production has nearly doubled compared to pre-restart levels, and we still see upside as reliability and performance continue to improve. Importantly, most of that incremental production from Tyra is natural gas. So today, our role in supporting energy security in Denmark and more broadly across the EU is more direct than it has been in many years.

And with that context in mind, let's move to the next slide. So the EU still imports close to 90% of its gas. That makes assets like Tyra strategically important. With Tyra back online, Denmark has become a net exporter of natural gas, strengthening European energy security and reducing reliance on imported supply that's often more expensive, more carbon-intensive and less reliable. And that broader context matters for us in practice. Denmark offers a stable and supportive framework for responsible oil and gas production. There's regulatory certainty, predictable fiscal terms supported by a tax stability mechanism and a clear political recognition that gas has an important role to play in the energy transition.

And we saw that recognition again over the weekend. When the Danish government signaled its intention to explore a potential extension of the DUC license from 2042 to 2050. We view that as a positive and strategically important step. From a reserves standpoint, Tyra's current life is constrained by the license expiry rather than by its underlying economics. An extension would increase our 2P reserves and give us more time to convert our 2C resources into cash flow, using infrastructure that's already in place and volumes that are already discovered. And that's an important point. This isn't about us adding exploration risk to our business model. We don't need new discoveries to benefit from an extension. Our model is built around developing and monetizing resources that are already well understood.

More time simply means more flexibility to realize that value. And there's also a potential balance sheet benefit, extending the license with deferred abandonment liabilities, reducing their net present value today and pushing out the timing of funding requirements. That strengthens the long-term financial profile of the business. Bringing all of this together, a stable framework, high-quality discovered resources and a potentially longer production horizon, and it reinforces our confidence in the long-term distribution capacity of the company. And now to something that we'll keep coming back to because it sits at the very core of everything we do.

Our strategy is very simple: maximize the cash our assets generate and return as much of that cash as we responsibly can to our shareholders. At the center of our business is a portfolio of long-life, low-decline assets, now materially strengthened by the restart of Tyra. Tyra's increased production, its increased cash flow, while at the same time, structurally lowering unit OpEx. The potential of our operational portfolio also doesn't stop here. We're progressing a number of attractive near-term development opportunities that leverage existing infrastructure, projects that are designed to help sustain peak production into the 2030s, and while volumes and these production volumes, in particular, are important. You can also clearly see here our capital discipline at work.

Two of the 3 developments in the near-term portfolio that we have are being reworked currently to prioritize value over volume, focusing on returns and cash contribution rather than headline production growth.

From a financial standpoint, we're supported by a strong balance sheet, an active hedging program and a material tax loss position, all of which reinforce cash generation and distribution capacity. In Q4, we also achieved lifting costs of $13 per barrel, in line with our steady state post Tyra guidance. That's an important operational milestone for us and one that directly supports the resilience of our cash flow generation. So the result is a business that is delivering meaningful returns today with the financial strength and resource debt to maintain distributions through time.

With that foundation in place, let's move to the next slide. So we have a clear distribution policy in place through the end of 2026. And to date, every distribution we've made has been at the top end of the 70% range of operating cash flow. For Q4, that means we're proposing a dividend of $115 million, which is roughly NOK 43 per share. That brings the total to date for paid and proposed distributions to $506 million, of which $456 million or NOK 173 per share has been paid as dividends with a further $50 million returned through a share buyback.

While our current framework runs through the end of this year, our focus on shareholder returns extends well beyond this. The fundamentals supporting distributions, long-life production, growing cash flow, a resilient balance sheet and disciplined capital allocation extend well beyond 2026. And that is one of the reasons why balance sheet discipline today really matters. The financial position we carry into 2027 will directly influence the scale and sustainability of distributions from that point forward.

As we move through this year, we'll set out how the framework evolves from 2027 onwards. But what you should expect is a continuity of the theme, the same focus on maximizing sustainable capital returns, the same financial discipline and the same emphasis on cash generation.

And with that in mind, let's turn to the next slide to look at where performance sits today with our Q4 results. So I'll shortly hand over to Miriam, Cathrine and Jacqueline to take you through the detail. But before doing that, I'd like to highlight some key points from the quarter.

Starting with our base assets. Production from Dan, Halfdan and Gorm was in line with guidance at 21,700 barrels of oil equivalent per day in Q4. Activities in 2025 and those planned for 2026 will strengthen the long-term contribution from these hubs and position them to sustain low decline production well into the future. At Tyra, production averaged 20,700 barrels of oil equivalent per day in the quarter, continuing the quarter-on-quarter growth trend. This included a planned October shutdown, which we executed successfully.

In December, we have had our strongest month since restart, approximately 25,000 barrels of oil equivalent per day. The focus now is on improving reliability, increasing uptime and unlocking remaining well potential. While the operator continues to make progress here, we now expect to reach steady state operations around the middle of 2026 after the planned shutdown in June of this year.

In terms of guidance for the full year and including 2 planned shutdowns, we are expecting average production of around 25,000 barrels per day over the period. As we look forward, our view on Tyra's long-term potential remains unchanged. We continue to see the maximum potential at around 30,000 barrels per day once stable operations are fully established.

If we turn now to the project, our capital discipline is clear. We're reworking both the Halfdan North and Valdemar Bo South developments with a clear focus on value over volume, prioritizing returns rather than headline production. And in addition to this, the operator has also launched a rig tender for the infill well program that's scheduled to commence in 2027. Financially, revenue for the quarter was $270 million, adjusted EBITDA increased approximately 40% quarter-on-quarter to $190 million, and operating cash flow was up 30% to $165 million. During the period, we also hit our post Tyra lifting cost guidance of $13 per barrel.

If we move on to the balance sheet, we're pleased to announce this morning that we have agreed a refinancing of our reserve-based lending facility. This will result in the maturity being extended to 2031 with no amortization until the end of 2028. This materially enhances financial flexibility, better aligns the debt profile with our cash flow outlook and supports our distribution capacity.

And finally, our strong liquidity position of $493 million at the end of the quarter underpins the proposed Q4 distribution of $115 million. This again represents 70% of operating cash flow for the period.

And with that overview, it's a good time to turn over to Miriam to take you through the operational detail behind these results. Thank you.

Thank you, Euan. Today, I will present the strong base assets production in Q4 2025, close out 2025 and share BlueNord's guidance for 2026. I will also provide an update on Tyra and outline BlueNord's 2026 Tyra guidance.

We have delivered consistent production growth over the past 4 quarters, demonstrating the resilience of our base assets and Tyra's significant progress. In December 2025, Tyra reached its highest output since resuming operations with an average net production of 25,000 barrels of oil equivalent per day. This achievement demonstrates significant progress in addressing operational challenges. Tyra continues to drive near-term production growth, while our base assets Halfdan, Dan and Gorm remain reliable contributors to the overall DUC performance. Targeted maintenance for the year has ensured stable, reliable operations. As we look ahead, our focus remains on maximizing asset performance and reducing operating costs.

I'm pleased to share that Q4 production from the base assets reached 21,700 barrels of oil equivalent per day net, aligning with our guidance of 21,000 to 23,000. This marked our highest quarterly output in 2025 despite setbacks in October caused by a flow line leak on Dan and operational issues on Gorm, both of which have now been resolved.

Operational efficiency remained robust through Q4, exceeding 90% on average for the base assets and reaching 98% for Halfdan. Dan and Halfdan delivered consistently and Gorm recovered strongly after the issues were addressed. Highlights for '25 is the strong well and reservoir performance and the extensive maintenance activities being executed as planned. The Halfdan North East Gas Lift project was successfully commissioned in July, enabling steady gas production and extending well life.

Finally, the Dan well workover campaign was completed in August with 6 workovers supporting a low natural production decline. Looking ahead, we expect stable contributions from the base assets in 2026 with maintenance mainly of Gorm and Halfdan. While this will cause short-term production shortfalls, they are vital for long-term integrity and high operational efficiency.

WROM work on Gorm is planned for 2026 and would be done cost effectively from the platform. We anticipate maintaining an average annual production decline of 4%, demonstrating our effective long-term strategy. Our focus in 2026 will remain on stable operations and reservoir management, optimizing well performance and preparing for 2027 drilling activity. Based on this, our guidance for Q1 2026 is 20,000 to 21,000 barrels of oil equivalent per day net. Production will decrease slightly in Q2 and Q3 because of planned maintenance reaching 18,000 to 20,000 barrels of oil equivalent per day net in Q4.

I would also like to mention that the operator has initiated the Dan rightsizing project to reduce structural costs in the near future. Tyra continues to increase production, achieving higher monthly average and peak export rates. This has been achieved with only up to 75% of wells online. In December 2025, Tyra reached its highest monthly average production since restarting of 25,000 barrels of oil equivalent per day.

By the end of January 2026, a gas production rate of 227 million standard cubic feet per day was delivered. These milestones are the result of strategic facility interventions and process optimization. The planned shutdown in October has improved the reliability and the focus is to optimize processing, bring more wells online and further improve reliability. Our ambition is to elevate the performance from the current average levels towards peak levels and ultimately, to exceed them.

If we look at the facility uptime, which means excluding lock well potential, we obtain a clearer understanding of the potential for the Tyra facilities. In December 2025, Tyra achieved a 95% uptime, confirming the facility potential. Since the planned shutdown in October, there have been fewer reliability issues clearly demonstrating that the targeted improvements have helped maintain steady operations and reduced unplanned shutdowns. Further, the most recent disruptions were caused by external factors such as weather conditions, human error and third-party impacts. The optimized alarm settings have produced the time to resume production after unplanned shutdowns.

The high uptime potential and ongoing plans to improve reliability and processing capacity, reinforce confidence in Tyra's facilities. To unlock Tyra's full potential, we continue to focus on 3 areas, and we are taking action in each area. Main priority is unlocking remaining well potential. As operational stability has improved, additional wells can be brought online to further boost the production. We have planned a well campaign in March to bring more Tyra satellite wells on production.

Secondly, we need to further increase the export potential. Processing capacity has been meaningfully improved over the past 3 months, and there is a continued effort on process optimization and flow assurance. Finally, we need to ensure process reliability. The October 2025 intervention campaign successfully improved reliability and reduced unplanned shutdowns. However, it became evident from this work that the second shutdown was necessary to rectify the reliability challenges. Further upgrades are scheduled for the planned shut down in June 2026 including enhancements to the VSD and control system. By advancing all 3 areas together, Tyra will be able to deliver consistently strong results and demonstrate its status as a cornerstone of our production portfolio.

Let's look at Tyra's production and outlook. Q4 net deliveries reached 20,700 barrels of oil equivalent per day, an improvement over Q3 despite the planned October shutdown. To summarize the Tyra status. Facility uptime potential has been confirmed and reliability is projected to increase following the scheduled shutdown in June, during which system performance will be optimized and remaining process control system issues addressed. Both the well and reservoir performance are maintaining robust levels with additional well capacity anticipated to be available from March.

Optimization of liquid processing continues with notable progress already observed. Accordingly, our guidance for Q1 2026 is set at 22,000 to 24,000 barrels of oil equivalent per day net. Production volumes are expected to increase throughout subsequent quarters. However, both Q2 and Q4 will experience temporary reductions due to scheduled activities. We expect stable Tyra performance from mid-2026. Our strategy is to maintain momentum, maximize the value of our assets, ensure long-term stability for Tyra.

I will now hand over to Cathrine, our Chief Corporate Affairs Officer, who will share the long-term outlook for BlueNord.

Thank you very much, Miriam, and good morning to everyone. I will now run through the opportunity set we currently have in DUC and also shed some light on Sunday's announcement.

As we have repeated for several quarters, BlueNord's current and future production is a great strategic importance, not only from an energy securities perspective, but also to the Danish economy. Oil and gas revenues support the Danish welfare society through tax revenues and also through skilled employment. And with this as a backdrop, I would like to address Sunday's announcement from the Danish Ministry of Climate Energies and Utilities, where BlueNord and our partners in the DUC were invited to explore a potential extension of the DUC license beyond its current 2042 expiry.

First and foremost, we view this as a very constructive and positive step. It shows the government as being responsible and pragmatic, recognizing Denmark's role in the European energy markets. We have, over time, maintained an open and constructive dialogue with the Danish government and have consistently expressed our interest in extending the license to 2050, which is in line with the 2020 North Sea agreement.

And Sunday's announcement signals a clear willingness to formally explore that pathway. The government's invitation came at a time when taking responsible action is critical. The geopolitical situation over the past few months has not improved for neither Denmark nor Europe. It's rather the opposite. In addition, the EU as a whole is facing a scarce gas storage situation as a consequence of a very cold winter. And we are today seeing gas storage levels far below the average compared to previous years. This, coupled with the recent EU ban of all Russian gas molecules, including LNG makes EU further reliant on importing long-distance LNG, which carries a much higher impact on the environment and is less reliable.

An extension of our license to 2050 would provide a tangible contribution to reducing Europe's dependence on imported energy, and it would strengthen security of supply. And we look forward to continuing our constructive dialogue together with our partners in the DUC.

And that is a natural segue to the next slide, which outlines our substantial discovered resource base. We have 193 million barrels of 2P reserves, of which 160 million comes from producing assets and 33 million approved and justified for development. In addition, 28 million barrels are defined as near-term 2C resources, meaning they are being progressed and are on a pathway to being converted into 2P reserves.

We also have defined around 10 million as longer-term 2Cs. And in addition, there is a significant potential in the resource base, which can be unlocked if the license is extended. These figures are based on year-end 2024, and we will soon publish our 2025 annual statement of reserves, which is expected sometime during March.

And based on the resource base just shown on the previous slide, we are on a continuous basis assessing both development projects and infill drilling. We have 3 well-known development projects, Tyra North, Halfdan North and Valdemar Bo South. Tyra North is a natural tie back to the new Tyra facilities, and is expected to deliver 20 million barrels net to BlueNord. Halfdan North and Valdemar Bo South, we are currently reassessing.

The Halfdan North project is being reworked to potentially long-reach wells on Tyra Southeast. And for Valdemar Bo South, the project is simply being reevaluated to reduce costs. We are, as Jacqueline will discuss more in detail later, focused on keeping future CapEx at a responsible level in the business. And very simply said, for all 3 projects, we will prioritize value over volumes.

And then looking at the infill wells we have in the portfolio. Last month, the operator went out with a tender to hire a jack-up rig in the DUC. This rig will be on contract sometime first half of next year, and will mainly drill infill wells. Infill drilling is a very cost efficient and quick way of adding additional production, and the main cost element is really related to the rig you're using.

The infill wells in our portfolio all have strong economics with development CapEx below $13 per barrel. And as of today, we have planned 2 wells on Halfdan, 1 on Valdemar Upper Cretaceous and 2 wells on Svend, together, representing a value of 11 million barrels net to the company.

In addition, we have a significant potential to drill further wells around the Tyra hub. The redeveloped Tyra did not only represent a major step change for our business, it also unlocked a gross potential of more than 200 million barrels of resources. It's also worth mentioning that an extension of the license to 2050 will be a key enabler to continue to progress what is here defined as additional potential.

And finally, bringing the previous pages together in this updated production profile. With production outlook for the current year updated, this slide shows the materiality of the existing business, coupled with the planned investment activities.

On average, we stay around the 50,000 barrels mark for the next 6 to 7 years. And remember that this is possible even with a very responsible and balanced level of CapEx during the same period. On this page, there are mainly 2 things I want to focus at. First, the production we have on stream today from Tyra, Halfdan, Dan and Gorm coupled with contribution from the near-term projects. This you can see up until the point in 2030. The profile running to 2030 shows you just that. The impact of our producing fields and our near-term projects, which also includes infill drilling showed on the previous page.

And then secondly, you see the part in light green. We will be entering the 2030s well above 50,000 barrels per day. And the light green profile shows you the impactfulness of also developing the longer-term 2C resources. The production profile is only constrained on this page by the expiry of the license, and even without an extension of this, the barrels we produce all the way to 2042 are profitable for BlueNord.

And then one thing we have not included in this profile is how this can look if the license is extended to 2050 and further investment opportunities are unlocked as a result of that. Again, value over volumes as a principle, but there is no doubt that the output potential is significant.

And on that note, I will hand over to our CFO, Jacqueline, who will take you through the Q4 financials.

Thank you, Cathrine. I'll now take you through our financial performance, and most importantly, the operational progress you've just heard about is translating directly into cash generation and returns. The key message to keep in mind as we go through this section, is that Tyra has fundamentally changed the cash flow profile of the business.

We are now in a position where higher production, low unit costs and disciplined capital allocation are all reinforcing each other. This is exactly the phase we have been building towards. And with that foundation in place, let's turn to how this operational progress is showing in our financial performance for the quarter.

Starting with headline performance. We delivered strong profitability and cash flow in Q4, driven primarily by higher production from Tyra and stable realized pricing. Revenue increased meaningfully year-on-year to $270 million, reflecting primarily higher gas volumes, while EBITDA growth to $186 million demonstrates the lower unit OpEx now embedded in the business. Importantly, this growth is high-quality growth, and it is converting efficiently into cash.

We note that revenue is restated in this quarter to reflect a reclassification of gas penalties and purchases associated with meeting our gas nomination obligations. There is no net effect on EBITDA, but it does increase both revenue and costs, primarily in Q1 and Q2 reported figures. This impact is shown in detail in our Q4 report.

Turning to net cash flow from operating activities. This increased to $165 million, which is what we expect to see as Tyra ramps up. From a balance sheet perspective, leverage has continued to trend down, and liquidity remains strong, especially with the imminent closing of our amend and extend process for the RBL, which maintains the facility size and gives us flexibility both to return capital and to manage the business.

Now let's look in more detail at how this performance is delivered and managed through our key areas of focus, hedging activity, cost management and sensible capital allocation. Our hedging program continues to do exactly what it is intended to do, protect cash flow and provide visibility. A significant proportion of both oil and gas volumes are hedged through to the end of 2026, smoothing the impact of market volatility. And we continue to add volumes where it makes sense to do so.

This slide shows you the updated view as of the end of last week, where we have been adding hedges during times of higher pricing on both oil and gas. We also see the benefit of our positioning in Europe where we sell gas into the German market with pricing linked to [ TAG ]. The current premium on German pricing recognizes the lower storage in the area and the strategic benefit of our position in this market.

With pricing volatility well managed, the driver of cash flow growth is volumes and cost efficiency, which brings us to the cost base. As Tyra production increases, unit operating costs are coming down, just as we guided. The modern Tyra facilities are significantly more efficient, and as volumes increase, the largely fixed costs of the DUC are spread over more volumes.

The reduction in Q4 compared to Q3 on an absolute level reflects primarily that workovers were completed in Q3. But excluding workovers, lifting costs are already well down on prior periods, and we have hit our target this quarter with lifting costs per BOE at $13. This cost trajectory is a key enabler of sustainable cash flow growth and underpins the resilience of our margins going forward. Lower unit costs, combined with higher production, is exactly what drives the step change we are now seeing in operating cash flow.

And this slide catches the heart of the financial story. Net cash flow from operating activities has increased materially quarter-on-quarter, driven by 3 factors: higher production from Tyra, lower unit costs and the continued benefit of our tax loss position. Importantly, this is not a one-off step change as Tyra maintain stability, operating cash flow remains strong. And that directly drives our ability to distribute capital to shareholders. This is further enhanced by our tax loss position, which is expected to support operating cash flow through to the end of 2027.

Operating cash flow is the metric that defines our distributions, and we are seeing the trajectory we expected at this stage. As cash flow grows, it's equally important to look at how we continue to maximize the business in a focused way with capital intensity significantly lower post Tyra.

With the completion of the Tyra redevelopment, capital expenditure has stepped down materially. CapEx in 2025 was significantly lower than during the investment phase, and we expect a similar level in 2026. Future investment from 2027 onwards will be disciplined, value accretive and carefully phased.

For 2026, we expect CapEx to be in the range of $40 million to $50 million. And looking ahead, it will be around $100 million to $150 million per year, subject to project sanction and timing. This combination of rising operating cash flow and lower CapEx creates real financial capacity to deleverage, to maintain balance sheet strength and to return capital. This combination of rising cash flow and lower CapEx is what strengthens liquidity and underpins our financial flexibility. So we continue to maintain a strong liquidity position supported by robust operating cash flow generation, even after capital investments, financing costs and distributions.

An important development here is the RBL amend and extend process we initiated in early 2026, which is nearing completion. It reduces near-term refinancing risk and aligns the balance sheet more closely with the cash generating and investment cycle of the DUC assets. This facility extension feeds directly into how we manage leverage and long-term balance sheet resilience, and I'll talk more about this on the next slide.

So as you can see here, leverage is declining as expected with the Tyra ramp-up and there are no near-term debt maturities. As highlighted on the previous slide, we kicked off 2026, demonstrating our proactive approach to maintaining or managing the capital structure with an extension of the RBL facility, which is set to close imminently. This decision provides a long runway ensuring optionality and flexibility in the business with sufficient liquidity for the years ahead. It gives us the ability to invest in our assets, prioritize distributions and maintain financial resilience. We're extending the maturity to end 2031 and pushing amortization out to end of 2028, whilst maintaining the facility size and pricing.

With commitments above our needs, this outcome demonstrates the continued support of our lender syndicate and the quality of our base business. With a resilient capital structure in place, we continue to focus on what this means for shareholder returns.

So returning meaningful capital to shareholders remains core to our strategy. Our policy of distributing 50% to 70% of operating cash flow through to the end of 2026 is unchanged. What has changed is the level and visibility of our operating cash flow underpinning that policy. With Tyra now contributing meaningfully, CapEx materially lower and the balance sheet strong, we are positioned to deliver growing and sustainable distributions supported by cash generation.

So to summarize, the financial transition of BlueNord is now visible in the numbers. Tyra is driving sustained growth in operating cash flow, supported by higher and more stable production, declining unit costs and disciplined capital allocation. At the same time, the RBL extension strengthens our capital structure, extending maturity, improving flexibility and aligning the balance sheet with the cash generating and investment cycle of the assets.

Combination of growing operating cash flow, lower CapEx and a resilient balance sheet underpins our ability to deliver meaningful and sustainable shareholder returns in line with our stated distribution policy. This marks a clear shift from an investment-led phase to a cash generation and returns-focused business.

And now I'll hand back to Euan for closing remarks.

Thank you, Jacqueline. So as we wrap up, I want to bring it back to the strategy and to the platform that we've deliberately built over the past 7 years. We've shaped BlueNord into a focused low-cost producer with long-life assets, a resilient balance sheet and a clear distribution philosophy. That foundation is now firmly in place, and our priorities are equally clear, maximize cash flow from our producing assets and maximize what we can sustainably return to shareholders.

That takes operational execution from Miriam and her team and financial discipline from Jacqueline and the broader organization. But ultimately, what really matters is the strength of the platform that we've built and what it enables us to deliver going forward. As we mentioned last quarter, we are reviewing selective growth opportunities outside the DUC, but always within the boundaries of our existing strategy.

And the word selective here does matter. We're only going to deploy capital where it enhances per share distributions in the near to medium term. That's the test. If it doesn't strengthen our ability to return more capital to shareholders, then it's not for us, whether we are progressing organic opportunities, engaging with the Danish government on a license extension or evaluating external transactions, we apply the same lens. Growth isn't an objective in itself, sustainable distributions are.

The platform that we have gives us options, the discipline that we use ensures that we choose the right ones. And you can be absolutely clear on this one point. Our focus remains delivering sustainable distribution growth for our shareholders over the long term.

Finally, before we move to Q&A, let me just leave you with a few closing thoughts. First, on operations. Tyra continues to move forward during the quarter. Q4 was our highest production quarter-to-date, and December was our strongest month since restart. There's still more work to do, and we've been very consistent about that. But the focus now isn't just peak rates. It's about stable, repeatable performance, reaching steady state around mid-2026, and building consistency from there remains the key priority. We continue to see around 30,000 barrels per day is achievable over time, but reliability and sustained averages are what really matter.

Second, on shareholder returns. The distribution program is established and delivering at the top end of our policy range. The proposed Q4 distribution of $115 million takes total return capital in 2025 to over $0.5 billion. That's real progress. The refinancing of the RBL further strengthens the financial platform behind those returns. And as we move through 2026, we'll set out how we see the framework evolving from 2027 onwards. But the principle won't change, disciplined capital management and maximizing sustainable returns to shareholders.

And finally, on outlook. The platform that we have today is materially stronger than it was a year ago. Production has nearly doubled with Tyra back online. Unit costs are in line with our steady state guidance. The balance sheet is extended and aligned with our cash flow profile, and the potential license extension meaningfully lengthens the runway of our business.

So yes, execution and particularly at Tyra remains our focus, but we also see clear opportunity ahead unlocking Tyra's full potential, progressing value-led developments and leveraging our strategic position in the Danish energy system, all point in the same direction, increasing sustainable distributions over time.

And with that, I'll pause so we can take your questions, and then we'll come back to answer. Thank you.

Okay. So we have many questions today. When will you know if BlueNord will extend the license to 2050?

So we've been fairly actively engaging with the Danish government for a while now. I think we view the announcement on Sunday as being a very positive step and one that demonstrates that the government in Denmark is now firmly behind the potential license extension for the DUC. I think we'll be working as quickly as we can to get it done. It's difficult to give specific guidance on it, but we certainly think it's a near-term event.

Tyra has clearly been more challenging than expected. Can you give us more color on what additional measures and costs are needed in 2026 to achieve stable plateau production? And how this affects your confidence in the 2026 production guidance?

So what we have seen, as we presented today was a very high production performance in December of the 25,000 barrels of oil equivalent per day. That is what we can achieve without having all the wells online. So what we need now is to get more of the wells online, and we have that in the plan for March. So that is our way to get to a higher production. That doesn't need any, you can say, extra cost that comes with what we already have planned in the budget for what you do operationally.

We understand one plant shutdown is in June. When is the second plant shutdown?

So basically, you can say the first shutdown we had in October where we did a rectified work, and we have then the second one in June. What we have also included in our guidance for the year is that we need to do some work on Herald, some pipeline picking in October that will impact production, but it's not per se as second shutdown.

And how is the visibility for 2026 production guidance?

So we have -- so we have guided towards the 30 that we think we can get to. And we have included a realistic forward-looking plan for what we have seen in the performance in the past, and we have included that we will get more wells online in 2026.

Could you please comment on cost base OpEx per barrel into 2026, 2027, including how much of the cost base is variable versus -- to production versus fixed?

So the OpEx is -- the vast majority is fixed. So of course, as it will move with production and as production increases, then we are more in line and consistent with that $13 per BOE lifting costs, which we've guided on.

And how even will the CapEx spend be over 2027 to 2030?

So at the moment, we are looking at and we did talk about in the presentation, the CapEx projects and working those and reworking them at the moment. We do expect over that period as we guided, it would be somewhere between $100 million to $150 million. Now the amount will depend on that sequencing of the different projects and the sanction time line. So it's difficult right now to be more specific than that, but certainly within that range is what our expectation is right now.

And a follow on to the same question. Could it be quite lumpy? And would this have an impact on dividends?

So we wouldn't expect that to be driving the dividend. We obviously are planning our capital allocation with that in mind and that includes the dividend. So it shouldn't be the thing that then drives the amount.

And how much of this CapEx is maintenance versus growth investment?

So the maintenance amount within that usually is, on average, would be somewhere around the $25 million. So that could be a little bit higher, a little bit lower, but a ballpark average around $25 million in a given year.

How much of the reserves resources will be brought into production with the spend? Does it include Halfdan North and Valdemar Bo South?

So it does include the projects that are in our long-term plan. So again, just referring back to our presentation as well, we are looking at those projects and they are being reworked around the CapEx levels and the project setup or expectations. So yes, it does include it, is the short answer in the expectations.

And what assumptions on Tyra uptime and maximum output rates have been made when setting the 4-year 2026 production guidance?

So we made a realistic guidance for the year. It includes what we have seen in the past. We've seen performance where we've had to have shorter shutdowns and that has been included for '26. And of course, we hope to outperform this. We have set the upper range guidance of 30,000 barrels of oil equivalent per day, and we, of course, hope to get up to the upper end of our range, but we have included what we think is realistic for now.

In December, we saw a very high uptime, the 95% that we presented. And here, we just need to get more wells online. So we need the better weather, so we can go out in March and get more wells online. And in the forecast that we have guided to us, we are not at such high level of uptime.

Dividend for 2027 is restricted by bond covenants. Should we expect 50% dividend on net income for 2027 and beyond?

So one of the things that I think we've done well throughout is -- BlueNord is establishing a track record of making sure that the capital structure that we have in place reflects the underlying aspects of the business. So while at the moment, we sit with a distribution covenant in 2027, that is, as you say, 50% of net income after tax. I think the reality is that our distributions going forward will be much more driven by what is the cash generation capacity of the business and how much are we able to -- how much are we able to responsibly distribute.

There are a couple of things this quarter that are certainly supportive of that. One is the refinancing of the RBL facility to push out the maturity. I don't think that's necessarily an unexpected event, but it's certainly a positive one in terms of continuing the track record of moving the maturity of the RBL forward.

And then the second one is the lower CapEx on the development project portfolio as we go forward. I said this in the presentation itself, but it's definitely a reflection of the fact that we are focused on making sure that where we can spend less CapEx to get higher value barrels. That's what we'll do. And obviously, that in and of itself is supportive of the distribution capacity because you have lower CapEx.

So I think in short, well, we currently have a distribution covenant that may lower the dividend capacity, certainly versus where we are today. I think in reality, the more relevant driver when we get to 2027 is the cash generation capacity. And I think it is worthwhile just noting that BNOR16, which is the bond that you're referring to, does have a first call date in the middle of 2027.

Congratulations on another strong quarter and positive developments. First question. I understand that discussing reserves upside potential from a potential license extension may be premature. But could you please elaborate more specifically on the positive effects you see from such an extension?

So maybe I can start and if there's anybody else that wants to chime in, we can go from there. I think there's obviously the first just macro point and we can get into some more specifics. But I think the first macro point is just that it really does support the position that we've been putting forward for a number of years now that Denmark is a very constructive place to do business as an oil and gas company.

We -- the contribution that we make in Denmark is recognized not just from our energy security perspective, which is obviously important, also the contribution that we make from tax revenues and the fact that we keep skilled employment going. So I think it's a very, very firm base for our operations.

If we touch more on some of the specific things, as I mentioned also in the presentation, Tyra currently is only constrained by the license expiry. So you would effectively have a longer production life for Tyra. That then corresponds effectively to an increase in your 2P reserves, reserves that are currently not included because of the license expiry. It does strengthen the case for development projects that you have in your portfolio.

I think what we're showing now is a medium-term kind of development program to the end of the 2030s, which has 3 projects and several infill wells. It obviously strengthens those project economics. But on top of that, it potentially unlocks incremental further developments that are not currently included within our plan.

And what that means is that you would either see a reclassification of sort of near-term 2C resources into 2P reserves or an expansion of the near-term 2C resources because you're moving volumes that are kind of outside the current development plan into the current development plan.

Maybe some other quick points. I think one is that the longer cash -- the longer runway of cash generation probably leads to, through time, higher debt capacity given you have a longer runway. But the reality about the longer runway is that it's kind of driven predominantly by the fact that you're also able to defer some of your abandonment expenditure, so that will be now coming in later if you have a license extension, which obviously supports the kind of the medium-term cash flow profile. I think that's -- those are most of the points that I can think of any.

Now that the RBL refinancing is near finalization and the maturity has been extended by 2 years. How do you view the impact on dividend potential between 2027 and 2029?

I think that's probably a very similar answer to the one that we gave to the previous question. I think the active increasing -- or sorry, the active refinancing the RBL and pushing out the maturity. I mean that is certainly positive to distribution capacity because you don't have to repay debt over the horizon where you're talking about dividends there.

On the other hand, I think it's very much what we would expect. It's very much what we've continued to deliver. So yes, it is positive, but it's also in line with what we were expecting.

The 2026 production guidance appears to be around 10% lower than previous guidance. While this is influenced by planned shutdowns, maintenance and Tyra performance, have incorporated additional contingency related to the timing of when Tyra reached steady-state plateau production? Put differently, what, in your view, would need to happen to reach the top end of the 2026 production guidance?

So we haven't included what you can call contingency, but we have included our view on the performance of Tyra, so that's included in guidance. And we know that we need the shutdown in June to rectify the last scope of work. So that -- we have included that. And to just answer the question of what would we need, we need a month like December where the uptime is good, and then we need more wells online.

What CapEx level is consistent with the production profile indicated on Slide 21?

So I think we answered that a little bit earlier. So what we're showing on the production profile reflects the projects and the infill wells that Cathrine articulated in the presentation. So that CapEx estimate that we're guiding through '26, '27 and to '30 is reflecting that program of projects, so around the $100 million to $150 million over that time.

And then growth outside of Denmark, how do you assess U.K. versus Norway versus other areas?

So maybe if we just run through those in turn. I think the U.K., while it's seen quite a lot of M&A activity over the last year, a couple of years, predominantly that's been driven by companies that are operating within the U.K. already essentially coming together to realize tax synergies.

I think from a new entrant perspective, I think the U.K. is still a very difficult landscape to get your head around given the fiscal uncertainty. I think if I look at it from our perspective, particularly, we also look at it and say, well, actually, in Denmark, we're in this position where we have a tax stability mechanism effectively a compensation clause that prevents or restricts kind of your exposure to changes in fiscal regime.

Moving from that very stable position and then moving into a region that has a less stable fiscal regime, I think it's probably quite difficult. Ultimately, it does depend on the transaction, and there may still be some things that could be interesting, but it's still not at the top of the list, I think, given the uncertainty that we've seen.

On the fiscal stability point, that's obviously one area where Norway does compare pretty well. The reality on the other hand is that Norway is -- from an M&A perspective, is very competitive. There are lots of people who see the benefit of operating in Norway. So ultimately, you need to balance these things up.

And on your point around the other areas, I think when we talk about looking at growth outside Denmark, I think we are -- we're still operating within a framework that is broadly consistent with where we are at the moment. And what we've talked about as being our kind of key strategic drivers, the main one being the provision of gas into Europe and gas into the EU.

So I think that probably gives you a sense of, at least in the near term, when we talk about growth outside Denmark, we're not looking at a fundamental shift. And ultimately, just to reemphasize one point that I made earlier. The real focus when we talk about growth is that we will only do things that are accretive to our distribution profile. That's a very clear line for us.

And then given the strong cash flow outlook for 2026, could you clarify under what conditions you would prioritize share buybacks versus cash dividends given the authorization from the 2025 AGM is still not fully used?

So our starting point, at least at the moment, is that the distributions that we're making are predominantly dividends. I think that's based on, I think, something close to our consensus having spoken to our shareholders when we have gone through recent discussions with them. In some circumstances, it would make sense to prioritize share buybacks, but that's predominantly linked to what your share price is at the time.

I think given where we are at the moment, I think there's an expectation or the expectation should continue to be predominantly cash dividends, but we obviously do assess on an ad hoc basis as we go through whether it makes more sense from a value perspective and from a shareholder perspective for those distributions to be made as share buybacks.

5 infill wells are highlighted on Page 20. Do you expect to drill all in 2027? Also, when would we expect to receive more details regarding the additional potential for infill opportunities?

So we will start drilling in 2027, and we will start with Halfdan, Ekofisk wells, the 2 wells we have planned. And then after that, we will go to Valdemar Bo South, so that's the plan for '27. And then the plan to get more infill wells mature is something we're looking at when we get more results in from Tyra because they sit in the Tyra hub area.

And I think the rest of the questions we have already answered. So thank you to everyone who has dialed in.

Thank you.

Good morning. Welcome, and thank you for joining us as we walk through BlueNord's Q3 performance. So I'm really pleased to say that this was another quarter of progress, especially at Tyra. We've seen higher volumes and much greater stability. Also, operational cash flow has nearly doubled from the previous quarter, and that's allowed us to propose a significantly higher Q3 distribution of $89 million.

So that snapshot is encouraging, but a single quarter doesn't tell the whole story. Today, we want everyone, whether this is your first quarterly presentation or your 25th to leave with a clear sense of what makes BlueNord BlueNord, where we've come from, where we are now and most importantly, where we're going.

So here's how we'll do that. I'll start with the foundation that underpins our performance and returns. Then Miriam will take you through the operational delivery across the DUC portfolio, not only Tyra's ramp-up, but also the contribution from Dan, Halfdan and Gorm. Cathrine will look at the opportunity ahead, the discovered barrels not yet in production and the work underway with the operator to bring them on stream. Jacqueline will walk you through how that operational performance feeds into our financials and translates into a growing distribution profile.

And finally, I'll come back to talk about our priorities going forward, how we continue to strengthen the business and deliver long-term value. So for admin, please feel free to submit questions as we go through, and let's start by turning to the first page.

So BlueNord holds a 36.8% non-operated working interest in the Danish Underground Consortium. Together with our partners, the Danish state-owned North Sea Fund and TotalEnergies, a world-class operator with deep North Sea expertise, we're exposed to a high-quality, diversified asset base with over 220 million barrels of net 2P reserves and near-term 2C resources.

It's a strong platform of long-life production and value. And with the restart of the Tyra hub, we've already nearly doubled production with more growth still to come. With the majority of this new production being natural gas, we're also now more than ever, directly contributing to energy security in Denmark and across the EU. So let's turn to the next slide.

Even today, the EU still imports close to 90% of its gas. But with Tyra back online, Denmark is once again a net exporter. That's a major shift and one that strengthens energy security across Europe while helping to reduce reliance on imported higher emissions alternatives.

For us, Denmark also provides a really strong and supportive framework for oil and gas production. There's a clear recognition that gas is a critical enabler of the energy transition. There's regulatory certainty with an end date for production set in 2050. And we also have predictable fiscal terms that are governed by a tax stability mechanism.

That combination gives us the confidence and stability to not only keep contributing strategically but also drive long-term value for our stakeholders. And with that in mind, let's turn to the next page.

So our strategy is very clear. We want to maximize the cash generated from our assets and then return as much of that cash as we can to our shareholders. At the heart of our business is a portfolio of long-life, low-decline assets that's now being transformed by Tyra.

Tyra meaningfully boosts production and cash flow, while at the same time, lowering OpEx and CapEx. We're also pushing forward a number of attractive near-term development opportunities that make the most of our existing infrastructure. These projects will help us sustain today's high production levels well into the 2030s.

On the financial side, we benefit from a strong balance sheet, solid commodity price hedging and a material tax loss position, all of which further support cash generation and distributions. So all in all, the result is a business that's delivering shareholder returns for today while still offering plenty of long-term value creation. And with that value now starting to flow back to shareholders, let's move to the next slide.

So I'm happy to say that the transformation of BlueNord is now complete. We've delivered one of Europe's largest offshore redevelopments, strengthened the balance sheet. And today, we're producing nearly twice what we did before Tyra came back online. With this major investment phase behind us, that increase in volumes now translates directly into higher cash flow. And with our disciplined capital allocation framework, our focus remains unchanged to return that value to you, our shareholders.

And if we turn to the next slide, we can look at what that means in a little more detail. We have a clear distribution policy in place through to the end of 2026, returning 50% to 70% of operating cash flow to shareholders. For Q3, we're proposing a distribution of $89 million, and that brings total paid and proposed distributions to $391 million to date.

Every distribution we've announced so far across 2024 and the first 9 months of 2025 have been at the upper end of our policy range and that's exactly what we said we'd deliver, material and consistent returns to shareholders. And against that backdrop, let's move to the next slide and talk about exactly where our performance stands today based on our Q3 results.

So I'll shortly hand over to Miriam and Jacqueline, who will take you through the detail, but I do also want to highlight a few quick points before handing over. So starting with our base production, Dan, Halfdan and Gorm averaged 20,200 barrels of oil equivalent per day during the quarter. That was slightly below guidance, mainly because planned maintenance ran longer than expected. But that work strengthens these hubs and will support production well into the future.

At Tyra, production averaged 18,900 barrels a day in Q3, continuing the quarter-on-quarter growth trend. And while we initially expected a little bit more this quarter, it's important that the trajectory remains positive. September averaged 22,000 barrels per day, the highest rate we've seen since restart.

Financially, revenue and EBITDA were both broadly in line with Q2, but operating cash flow jumped significantly, which is key since this is the basis that we use to set our distributions. Combined with our strong balance sheet and liquidity position, this underpins the proposed Q3 distribution of $89 million, again, representing 70% of operating cash flow for the period.

And with that, it's a good time for Miriam to take you through the operational detail behind this performance. So Miriam, over to you. Thanks.

Thank you, Euan. I will now give more details to the operational status and outlook. We continue to see operational progress with production increase through each of the last 4 quarters. This reflects not only the resilience of our base assets, but also the growth achieved at Tyra.

In September '25, Tyra production averaged 22,000 barrels of oil equivalent per day net, marking the highest monthly output since the restart of the Tyra facilities last year. This is a significant achievement, especially considering the operational challenges we have faced since restart and the current water treatment system constraints.

Tyra continues to be the primary driver of near-term production growth, but it's important to acknowledge the contributions from our base assets, Halfdan, Dan and Gorm. For our base assets, active asset management remains a top priority. Q3 production was 20,200 barrels of oil equivalent per day net, which is slightly below our guidance of 21,000 to 23,000. This reflects an intensive maintenance program designed to underpin the long-term stability of our base assets.

With no significant maintenance planned for Q4, the guidance of 21,000 to 23,000 barrels of oil equivalent per day net is reiterated. Key maintenance and optimization work completed across the DUC hubs, Dan workovers, Gorm equity updates and Halfdan gas lift commissioning support production stability and long-term asset performance.

An annual production decline of less than 4% reflects the effectiveness of this strategy. Going forward, our focus remains on sustaining high operational efficiency and supporting long-term performance through facility maintenance as well as well on reservoir management.

Now let's look at Tyra. October 25 marked a major milestone with the formal inauguration of the Tyra hub. This event was not just a celebration of a successful project delivery, but also a recognition of Tyra's critical role in Danish and European energy security. Tyra's redevelopment is one of the largest gas projects in Europe and a successful delivery positions Denmark as a net exporter of natural gas.

Importantly, Tyra's gas has a significantly lower CO2 footprint compared to alternatives like LNG, supporting both national and European climate goals. September saw the lowest emissions intensity since shutdown in '19, reflecting operational improvements.

The inauguration event also underscored Tyra's contribution to stable energy supply at home and across Europe, helping to keep the wheels of industry turning while maintaining a lower environmental impact as highlighted by the MD of TotalEnergies. And this is also recognized more broadly. Denmark's Minister of Climate Energy and Utilities highlighted that gas remains a crucial transitional fuel.

Now let's talk about Tyra performance specifically. Tyra has consistently demonstrated strong production potential and with only 60% to 65% of wells online, we have achieved high export rates and have come close to plateau production levels. The observed performance strongly supports our ability to deliver and sustain plateau production.

Ongoing optimization of facilities and processing is key to unlocking the full potential of the hub. The Harald East Middle Jurassic well, in short HEMJ has significantly outperformed pre-drill expectations. Since March '25, HEMJ has contributed around 30% of Tyra's output and the investment achieved payback in less than 6 months.

HEMJ's success has also extended the Harald's hub life into the mid-2030s. While we believe there remains significant untapped potential in the reservoir that will become clearer as we gather further well test results and more stable production data, the focus is now building upon this strong base by significantly operational stability.

Our focus on operational stability at Tyra is showing tangible results. Since mid-August, we have not experienced any full facility shutdowns other than the plan in October, which is a clear indicator of a stronger facility reliability. In September '25, we saw the highest monthly average production of 22,000 barrels of oil equivalent per day net since the restart of Tyra.

In October, we achieved a record gas export of 221 million standard cubic feet per day and a total oil and gas production of 27,000 barrels of oil equivalent per day net. These improvements are the results of targeted interventions and a relentless focus on operational excellency. We are committed to building on this momentum and delivering even stronger results in the coming quarters.

To achieve full potential at Tyra, we have identified 3 focus areas, and we are taking action in each area. Firstly, we need to increase the export potential. A dedicated offshore task force is addressing water treatment constraints, which has been a limited factor for processing capacity. Specialist vendors are supporting these efforts to accelerate troubleshooting and implement effective solutions.

Secondly, on process reliability, the October 2025 intervention campaign completed just recently was designed to improve operational efficiency and reduce unplanned shutdowns. The scope was successfully executed with only a few minor items being finalized today. A brief issue during the restart of the IP compressor was quickly resolved and work is now underway to bring the LP compressor back online. In the meantime, production continues from Harald and HEMJ.

Thirdly, we need to unlock remaining well potential. As operational stability increases, we will bring additional wells online to further boost the production. Strong well and reservoir performance is expected to continue supporting our growth ambitions.

Looking ahead, the near-term production outlook for Tyra is very strong. Early Q4 delivery is robust with recent production reaching approximately 27,000 barrels of oil equivalent per day net.

We delivered Q3 Tyra production of 18,900 barrels of oil equivalent per day net in the upper end of our revised Q3 guidance of 17,000 to 19,000 and we are reiterating our Q4 guidance of 20,000 to 27,000 barrels of oil equivalent per day net, reflecting our expectations based on the recent work of TotalEnergies. And our strategy is to maintain this momentum, maximize the value of our assets and ensure long-term stability for Tyra.

And with that, I will hand over to Cathrine, our Chief Corporate Affairs Officer, to talk about the long-term outlook for BlueNord.

Thank you very much, Miram, and good morning to everyone. I will now run through the opportunity set we currently have in the DUC. A new of this quarter is that I will also show you the production profile of the business going all the way until the end of the license expiry, which currently is in 2042.

Together with the partners in the DUC, we have a robust plan with activities over the next years, which will not only support the production we're seeing near term but also allow us to stay above 50,000 barrels per day beyond the end of this decade. And for the first time, we're not only showing the profile until 2030, but until the end of the license, which currently expires in 2042.

On this page, there are mainly 2 things I want you to focus at. Firstly, the production we have on stream today from the base assets and Tyra, coupled with the contribution from the near-term projects, which will be sanctioned over the next few years. The profile running to 2030 is showing you just that, our producing fields and our near-term projects.

Secondly, and what is new is that we're illustrating the production from 2031 until the end of the license in 2042. This is what you will see in light green. We are well above 50,000 barrels a day at the start of the 2030s and the profile continues all the way to 2042. The production profile is only constrained by the expiry of the license. And even without an extension of this, the barrels we produce are profitable for BlueNord until the point where we potentially exit in 2042, which is around 50,000 barrels per day.

One thing we have not included in this profile is how the long-term production profile may look if the license is extended and further investment opportunities are unlocked as a result of that.

And as a general principle, all decisions made in the partnership to consider further investments to boost the long-term production in the DUC will be made through an economic lens where we progress 2C resources not only for the sake of increasing output, but to add valuable barrels that are profitable and support the long-term cash flow of the business.

And this takes me to the next page, where we show a breakdown of the discovered reserves base, which, together with the already producing assets constitutes the backbone of the long-term production profile shown on the previous page. We currently have 193 barrels of 2P reserves and it's worth mentioning that we have had a positive reserves replacement ratio since the acquisition of the assets in 2019.

33 million of these are projects justified for development, meaning they are mature enough to be included in the 2P base. In addition, we have 28 million barrels of 2C resources, which we define as near term and which we will aim to move from 2C resources to 2P reserves.

And we also have more than 10 million longer-term 2Cs, which are typically different infill opportunities. And lastly, there is definitely potential beyond what we're showing today as we're currently only constrained by the license expiry in 2042.

And then looking more in detail at the substantial resource base we have in the company, which are not only producing valuable barrels today, but also those resources, which will deliver new volumes in the near and medium term. We have a tangible plan in the partnership to sanction both infill wells and 3 development projects, which are adding not only to the future production, but also to our future 2P reserves.

The projects Tyra North, Halfdan North and Valdemar Bo South require simple infrastructure with unmanned platforms and all 3 of these are to be tied back to existing infrastructure. Two of them will be tied back to Tyra. And the idea is that these will help backfill the brand-new and efficient processing capacity we have on Tyra.

The fact that these projects are tiebacks also help to make them very competitive from a price point with unit technical costs sub-$20 per barrel. Tyra North and Halfdan North have already been progressed sufficiently to be included in our 2P reserves and all 3 projects add significantly to the future of the production profile with a total of 45 million barrels.

And then in addition, we have several infill drilling opportunities. Infill drilling is a very cost-efficient and relatively quick way of adding additional production. And the main cost element is really related to the rig that you're using. The infill wells in our portfolio have very robust economics with unit development CapEx below $13.

From what we have disclosed today, we have 2 wells on Halfdan, 1 on Valdemar and 2 wells on Svend. Together, these wells represent a total of 11 million barrels in 2P and near-term 2C resources. And in addition, we have a significant potential to drill further wells around the Tyra hub.

The redeveloped Tyra hub did not only represent a major step change for our business, it also unlocked a gross potential of more than 200 million barrels of resources. These opportunities will be communicated once further matured and will need to meet strict economic requirements in order to be sanctioned.

One of the truly impactful investments around the Tyra hub, we have already executed, which was the HEMJ, which we drilled last year. And with a payback time of less than 6 months, it definitely represents the type of investment opportunity we will continue to chase and which both utilizes the new Tyra facility and also contributes significantly to the current and future cash flow of the business.

And on that note, I will leave the word to our CFO, Jacqueline, who will take you through our Q3 financials.

As we've just seen, our operational achievements and strategic positioning have set a strong foundation for the future. With Tyra ramping up, we're now entering a phase where our financial strength and disciplined capital allocation are translating directly into material returns to our shareholders. Let's turn to the numbers and see how these efforts are reflected in our Q3 financial results and our outlook for value creation.

Let's start with our financial performance for the third quarter. We delivered strong profitability and cash flow driven by continued production growth from Tyra, of which HEMJ is a key part. Revenue for the quarter reached $246 million, which demonstrates relatively consistent pricing on both oil and gas as well as the impact of higher gas volumes from Tyra.

EBITDA of $131 million and net cash flow from operating activities of $128 million demonstrates our strong cash conversion. Our liquidity position remains robust at $447 million and our net leverage stands at 2.3x. This solid foundation supports our ability to deliver returns to shareholders and invest in future growth.

Now while strong results are important, it's equally critical that we protect our performance against market volatility. Let's look at how hedging -- our hedging strategy supports this.

We continue to use hedging as a way to provide visibility over future cash flows and we add volumes where it makes sense to do so. We've maintained stable realized prices over the year despite ongoing market volatility and this is well supported by our hedging program.

Positively and linking back to what we said in Q2, we have improved on the gas nomination process this quarter and have seen the level of penalties halve. This translates into better realized pricing on gas. Currently, 47% of our forecast oil volumes are hedged through to the end of 2026 and 45% of our forecast gas volumes are hedged through to the end of '26.

This approach provides price protection and supports visibility over our cash flow, ensuring we can deliver on our commitments regardless of market swings. Efficient operations are also key to our success and something we've been looking forward to as Tyra ramps up. Let's look a little more closely at how our cost base is evolving.

As Tyra production increases, our unit operating costs continue to trend downward. The modern Tyra facilities are significantly more efficient. And as we ramp up volumes, our fixed costs are spread over more barrels, driving down unit operating costs towards the level we have been targeting of $13 per BOE. This efficiency directly supports improved margins and enhances our financial resilience.

The chart demonstrates this trend and it is worth highlighting that 2025 year-to-date has also included workovers, which we didn't have in 2024. Excluding these workovers, lifting costs per BOE are now at $17, well on the way to $13 per BOE. With a lower cost base and stable pricing, we are well positioned to grow our operational cash flow. Let's explore this further.

Net cash flow from operating activities is the key metric that defines our distributions to shareholders. We're seeing significant growth in cash flow from operations, supported by our hedging strategy, lower unit operating costs from Tyra and the positive impact of our tax loss position. This growth enables us to deliver meaningful returns to our shareholders while maintaining financial flexibility.

Positively, during the third quarter, we saw improved cash conversion from EBITDA and thus the reversal of the large working capital impact noted during the second quarter. Net cash flow from operating activities for the quarter before working capital was $132 million and $128 million, including working capital.

But looking ahead, our capital expenditure profile is also changing. Let's discuss what that means for our investment plans. With the completion of the Tyra redevelopment project, our capital expenditure has significantly reduced from 2025 onwards. We expect CapEx to be around $50 million in 2025 with a similar level anticipated for 2026.

Future investments in 2027 and beyond will be carefully evaluated and sanctioned as appropriate, ensuring disciplined capital allocation. This lower CapEx in the short term further enhances our cash generation over the next couple of years. This disciplined approach to investment, combined with our strong cash flow supports a robust liquidity position. Let's turn to that now.

At the end of Q3, our liquidity stood at $447 million, including $250 million of undrawn RBL capacity. The third quarter also reflects the payment of accrued distributions relating to 2024 and the first half of 2025. This strong liquidity position ensures we can support both our operations and our commitment to shareholder distributions.

Alongside liquidity, we're also making progress on deleveraging the balance sheet, which you can see on the next slide. Our balance sheet remains stable with no near-term debt maturities. As Tyra ramps up, our leverage is declining as expected. The structure of our RBL facility amortization and bond maturities provides us with financial flexibility and positions us well for the future.

Finally, let's turn to our distribution profile and how we're delivering returns directly to our shareholders. Returning meaningful capital to shareholders is a core part of our strategy. Our policy is to distribute 50% to 70% of operating cash flow through to the end of 2026 and we aim to maintain meaningful returns in 2027 and beyond.

For 2025, we've already declared and proposed substantial distributions with a total of $302 million already declared and paid with a further $89 million proposed to be paid for Q3 2025. This maintains distributions at the top end of our target range and further emphasizes our continued commitment to delivering returns.

So in summary, our strong financial performance, disciplined capital allocation and commitment to shareholder returns positions BlueNord for continued success as we move forward.

With that, I'll hand back to Euan to discuss our strategic priorities and the path ahead.

Thank you, Jacqueline. So as we wrap up, I want to bring the discussion back to strategy. Our focus in BlueNord is deliberately narrow and our objective is incredibly simple. First, we want to maximize the value and cash flow from our producing assets. To do this, Miriam and her team work closely with the operator to make sure that we're getting everything we can from the DUC.

Second, we want to maximize the cash available for distribution. That means maintaining a fit-for-purpose capital structure, one that is aligned with our distribution objectives. But it also means continuing to progress accretive near-term projects that sustain production and extend the life of our assets. The impact of this is that it keeps the value of our portfolio high. It supports our leverage capacity. And importantly, it also pushes out the timing of when we need to start provisioning for abandonment costs, all of which strengthen our ability to keep distributing.

And finally, while we are perfectly comfortable with BlueNord having a finite life that ends when our DUC license expires, we also recognize that with the platform we've built and the clear focus that we have, there may be opportunities to enhance what we already offer to our shareholders. So we are looking at selective growth, opportunities that build on the story that we already have.

And here, we're applying a very simple test. Anything we consider must be accretive to near-term shareholder distributions. That's our red line. And on this topic, in particular, you can be sure that we're laser-focused on the outcomes that matter most to our shareholders and that we'll maintain the same discipline and approach that we always have.

And finally, before we move into Q&A, I want to close with a few final reflections. First, on operations. Tyra production is strong and still growing. The operators' focus on uptime and stability has really paid off and we still see room for more progress. That's not just in terms of peak rates, which we continue to believe can exceed 30,000 barrels of oil equivalent per day, but also in sustained averages as reliability continues to improve.

Second, on shareholder returns, our distribution program is well underway. Together with what we've paid, we're making real progress on delivering on our commitment to maximize returns to equity holders.

And finally, on outlook. I hope what you take away today is that while we've already achieved a lot, there's still significant value and opportunity within our portfolio. We see real potential to keep building on the strong platform that we have and we remain every bit as focused and disciplined as ever.

So I'll pause here to give everyone a moment to send any last questions and we'll be back shortly for the Q&A session. Thank you for joining this morning.

So first one is Miriam. Production is revised down for the full year. Have you overestimated the production possibilities? Or is it still just ramp-up hiccups?

Thank you. So today, we reiterated the guidance for Q4 for both base assets and Tyra. We revised the guidance for Tyra in September, reflecting the planned shutdown in October and the water treatment constraint that the operator is working on to resolve.

Thank you. And then again to you, Miriam, to clarify Slide 11, has there been a change to the expected plateau production specifically from the Tyra field. With the HEMJ well outperforming expectations, the field plateau should be higher unless they have this constrained by operational capacity?

So we have not changed our view on the expected plateau level. This is constrained by the IP compressor capacity. And this means that with the excellent production from HEMJ, we will be able to extend the plateau, we cannot increase it.

And then based on the low year-on-year decline on the base assets we have seen in the past 4 or 5 years, do you expect the operator to get to the same place on Tyra going forward?

Yes, absolutely. We see that the operator is doing a really good job on the reservoir performance on the base asset and we expect that they would do the same for the Tyra assets once we reach a stable production.

And then some questions for Jacqueline. First one, do you have a target net debt position that reflects the maximum efficiency level for the capital structure?

Thanks, Cathrine. So the leverage target, which we've always talked about has been achieving around 1.5x through cycle. So we're on that trajectory, particularly with Tyra production increasing. So the current net debt level is supportable for the near-term outlook of the business.

And then you produced almost 70% more than same quarter last year, but the dividend per quarter is almost the same as last quarter if you divide 2024 distribution per quarter. This seems because of still very high costs. When can we expect costs to come down to earlier guided levels?

So first, the point on distributions, at least comparing -- and I think we showed it in the presentation, comparing Q3 '24 distribution, if you spread out the amount we paid for '24 and compare that with Q3 '25, we're showing an increase from $60 million to $89 million. But then the question on costs and I'll also point towards the presentation we just did, where there is a downward trajectory on the operating cost per BOE.

So this is as Tyra continues to increase production. And as we've previously mentioned in Q1, the OpEx does include workovers for this year and this was a part of the change in our rig strategy. So Q1 to Q3 '25 does have a higher OpEx. We are expecting that for Q4, we will see lower OpEx because we won't have any further workovers. Currently, direct field OpEx is at $17 per BOE and that is on the path towards the $13 per BOE we've previously guided.

And then are there any penalties this quarter? If so, how much?

So there's been a significant reduction in the penalties this quarter. It's down to $4.9 million, which is about half of what we saw in Q2. Part of that is because of we still have some interruptions. So within day, there is a smaller penalty impact of that.

And then how is the additional $56 million of compensation bonds payable to the BNOR15 holders calculated?

So this was based on the fair value of BNOR15 at the time we agreed the transaction, and that was back in June 2025.

And then finally, why has the balance sheet at the end of Q2 included both BNOR15 and its replacement bond when one is contingent on the other. This has led to an apparent significant increase in net debt, which presumably has already reversed in Q3.

So the end of Q2 balance sheet does not include the replacement bond. It only includes the redemption value of BNOR15. And then in July, BNOR17 was issued and BNOR15 was then settled. I guess to explain a little bit on our balance sheet, BNOR17 is treated nearly 100% as equity and it's presented under equity on the balance sheet.

So just to walk through the net interest-bearing debt on the balance sheet. This is almost the same quarter-on-quarter as BNOR15 is settled, then you have BNOR17 treated as equity instead and we have paid out distributions accrued of $302 million during the quarter, which has, of course, significantly reduced our cash balance.

If you then look at interest-bearing debt for covenant purposes, this does not include BNOR15. So this has increased because the cash balance has decreased as previously noted. And then just to make the point on the balance sheet as it stands as at the end of Q3, interest-bearing debt includes the RBL and BNOR16 as before and these are largely the same as in Q2. There was a small increase on the RBL drawing, and that was the only change there.

Thank you. And when does the share go ex dividend and when will it be paid out? And I think I can answer this.

The shares go ex on the 21st of November and it's also subject to shareholder approval the day prior at the EGM, which is to be held on the 20th of November. And we expect payment date to be on or about the 27th of November.

And then some questions for you, Euan. You still have a quite substantial cash balance, partly driven by the release of escrow account. What is the plan for this? And why are you not paying this out as dividend?

So look, I understand the question and I appreciate that us having a strong balance sheet and a strong liquidity position does raise this as a topic. I think for us, our starting point is really the same as it always has been. We've set a distribution policy, and it's one that we believe is attractive to shareholders and recognizes the cash generation capacity of the business that we have.

We are fully committed to delivering not just the formal aspect of that policy, which is 50% to 70%, but also the spirit of it, which is we know that we need to maintain a conservative capital structure. We also want to maintain the cash -- sorry, maximize the cash that we're paying out to our shareholders.

So what I think I can say is that as we move forward, we're going to keep doing what we've done so far, which is we're going to take into account the outlook for commodity prices, the continued stabilization of Tyra and what we expect to be a growing quarterly cash generation profile. And when we do that, we'll keep evaluating the distribution capacity and we'll pay out as much as we can.

And what do you guys think about the share split to trade more in line with share price with other E&Ps in Oslo like Panoro, Var Energi, [ BV Energy ], et cetera?

So it is something that we've considered, but I think it would also be fair to say it's never been a priority compared to some of the other things that we've had on the agenda and making sure that we're fully delivering the rest of the business. That said, something we will continue to look at. And if it's something that we can get comfortable as genuinely additive, for example, if it increases our trading liquidity or we think it would increase our trading liquidity, then it wouldn't be something I would rule out.

And then the final question for today. Can you please comment on the potential license extension, if possible? Are those discussions taking place with local authorities in Denmark, assume an extension would be highly supportive for taking potential new FIDs.

So I can't say anything specific about specific license extension discussions, but I will point to 2 things. One is that, as Miriam covered, we had the Tyra inauguration during the quarter. I think that was positively received. And I think it was a positive recognition of not only the contribution of Tyra, but also the broader point about the role that gas has to play in the energy transition. So I think there is a generally supportive backdrop of what we're doing in the country.

And then I think the second thing I would say that for the first time today, what we've published is we published a profile that goes out to 2042. So not only can you see that we expect that plateau production at the current peak levels of around 50,000 barrels a day to continue beyond 2030, we also expect to have a meaningful production level in 2042 when the license currently expires. So there's certainly potential there.

And this part is probably obvious. But as you have a longer window for payback on projects, of course, that would support further investment. But we can't say anything specific about the status or otherwise of license extension discussions.

Okay. That concludes the Q&A session. Thank you to everyone who joined.

Thank you.

Good morning, everyone, and welcome to our results presentation for the second quarter of 2025. Before we dive into the details and take you through the key highlights of what's been another busy quarter for the company, I'd like to briefly take a step back and reflect on how far we've come.

Firstly, I think it's worth noting that everyone you'll hear from today has been with the company since the start of this journey in 2019. We've all been a part of shaping the business and, importantly, driving it forward. And if I look back now to when we adopted the simple clear theme of focused on delivery in 2021, I'm pleased to be able to say that it's exactly what I think we've done.

We've kept our base business robust with production declines averaging less than 4% per year. We've started up Tyra, witnessing production steadily increase as the ramp-up progresses. We've been consistently profitable, underpinned by a disciplined hedging program. We've transformed our capital structure, raising over $1.7 billion of debt in the process. And perhaps most importantly for our equity investors, we've made tangible the theme of maximizing shareholder returns.

Firstly, just by adopting our inaugural distribution policy. And then by starting down the path of delivering back to shareholders exactly what we said we would. We've navigated some extraordinary times from record high gas prices to becoming experts and transformers for gas compressors. And while things haven't always progressed as quickly or as smoothly as we'd hoped, through it all, we've protected the balance sheet and focused on executing what has been within our control.

And in that vein, the second quarter of 2025 is a period where much of what we've spent in the last 6 years working towards came together. We successfully met the Tyra Completion Test confirming the RBL Technical Bank's assessment that Tyra is no longer a project, but a fully operational production hub.

We declared our first dividend and announced an upcoming share buyback, marking the beginning of our capital returns program. And finally, we refinanced the BNOR15 convertible bond, removing a significant source of potential equity dilution. So while we're proud of the progress we made, we know the job isn't done. There's still plenty left to unlock across our asset base that holds significant remaining potential.

And with that theme in mind, let's turn to the first slide and take a closer look at what we've achieved this quarter and where we're heading next.

So starting with our base production. Dan, Halfdan and Gorm delivered 21,000 barrels of oil equivalent per day during the quarter, which is in line with our guidance and continues to demonstrate the predictable low decline performance that we've seen from these assets since 2021. During Q2, we had planned shutdowns to allow for activities, and we expect higher production to come in the second half of the year as a result of this.

As we highlighted last quarter, the above expectation performance of the Harald East Middle Jurassic well has reduced the immediate need for further infill drilling, combined with our continued focus on capital discipline and the flexibility that we have around CapEx.

We continue to expect 2025 expenditure to come in around $50 million below our forecast from the start of the year. And together with operating cost reductions that we're already seeing from higher Tyra volumes, we're well positioned to navigate any commodity price volatility.

If we turn now to Tyra, production averaged 16,800 barrels of oil equivalent per day in Q2, up more than 90% compared to the first quarter. We reached peak production of around 28,000 barrels per day net to BlueNord in June, which is right in line with our guidance for steady-state operations. The reservoir continues to perform well, and the operators focus is now rightly on increasing uptime and delivering more stable operations.

Looking ahead, we expect Tyra to be able to maintain plateau levels through the rest of 2025 and well into 2026. And this is underpinned by the continued strong performance from HEMJ, which extends the period during which our production is constrained only by processing capacity by at least another 10 months.

And when the existing Tyra well stock eventually does come off plateau, that's when we'll bring on additional volumes whether through near-term infill drilling or for more material projects like Tyra North and Valdemar Bo South.

Financially, this was a strong quarter. Revenue rose by 52% compared to Q1, and EBITDA was up 66% over the same period. Operating cash flow came in at $70 million. And based on this, we're proposing a distribution of $49 million for Q2. That represents 70% of operating cash flow during the period and sits right at the top end of our stated policy range.

With Tyra now driving meaningful increases in profitability and as production continues to grow, we fully expect cash flow to follow the same upward trajectory.

We ended the quarter with $718 million of total liquidity, adjusting for the dividend paid in early July and the $50 million share buyback we plan to launch next week, both of which are distributions related to prior periods. We have pro forma liquidity of $465 million. And if we also reflect for our proposed Q2 2025 distribution, our adjusted liquidity position stands at $416 million.

On the capital structure side, this quarter, we successfully refinanced BNOR15, our long-standing convertible bond, which we'll talk about more shortly. But in summary, we eliminated a significant source of potential equity dilution by refinancing this instrument with a new hybrid bond. So all in all, we're in a strong position to continue to deliver for all our stakeholders.

Let's now turn to distributions, an area where our strategy is clear with execution now underway. So backed by the strong and stable capital structure that we've built, one that provides resilience and flexibility, our near-term priority is clear to return meaningful capital to shareholders.

As Tyra production ramps up, our cash flow will increase in step and our focus is on firmly ensuring that this value is passed through to our investors. The start of our distribution program has always been tied to one key milestone, meeting the Tyra Completion Test under our RBL facility. We achieved that in Q2 and with it unlocked the ability to begin significant capital returns. Up until the end of Q1, we had proposed in total $253 million of shareholder distributions, covering cash flows generated through 2024 and the first quarter of 2025.

During the second quarter, we formally declared a $203 million cash dividend and announced plans to initiate a share buyback of up to $50 million. That buyback is expected to launch early next week. And today, we're pleased to be proposing a further cash dividend of $49 million for the second quarter. That again represents 70% of our operating cash flow for the period and is at the top end of our stated distribution policy. And as with the prior cash dividend, this payment will be treated as a return of paid in capital for Norwegian tax purposes, and we intend to declare it formally once the buyback is completed.

What all this means is that we're delivering clearly and consistently on our strategy of material returns to shareholders. Every proposed distribution to date covering 2024 in the first half of 2025 has been at the top end of our 50% to 70% policy range. That's not just a reflection of past performance, it's also a strong signal of intent as we look ahead.

Now if we turn to the next slide, I'd like to talk a little bit about what we did during the quarter to eliminate a key risk of equity dilution. So if we walk through the refinancing of BNOR15, this was an important transaction that we announced during the second quarter. To start with the basics, we agreed on a price to repurchase the outstanding BNOR15 convertible bond. And to finance that buyback, we issued a new hybrid instrument. This was a transaction that achieved multiple objectives at once, cleaning up our capital structure, eliminating potential equity dilution and maximizing our near-term ability to return capital to shareholders.

For background, BNOR 15 was originally issued in 2019 to help finance the acquisition of our assets from Shell. It was intentionally structured to have both debt and equity like features. That design was necessary to meet two conditions at the same time. One, it had to be treated as equity by our RBL banks for financing purposes. And two, it needed to offer fixed income-like characteristics to meet the investment mandate of the institutions funding the acquisition.

In short, it was a bespoke solution for a specific transaction. And while it served its purpose at the time, it's not necessarily the kind of instrument you choose if you were designing your capital structure from scratch. We took the decision to refinance now, because BNOR15 has features that would become significantly less attractive if we allowed the instrument to run to maturity.

Chief among them, the risk of mandatory conversion into equity at the end of the year and significant dilution for our existing shareholders. Given that the bond was significantly in the money relative to its conversion price, the risk of dilution was very real. We chose to issue a new hybrid instrument to finance the repurchase of BNOR15, because it's as close as we could find to a like-for-like replacement, but importantly, without equity dilution. It's an instrument with both equity and debt-like characteristics, and it doesn't increase our senior secured leverage levels.

The hybrid also supports our long-term capital return strategy, where we have a business with a long runway ahead of it. We expect to still be producing more than 50,000 barrels of oil equivalent per day by the end of this decade. So we're confident in our ability to deliver our business over a long time horizon.

We chose a hybrid compared to alternatives for several reasons. A senior unsecured bond would have increased our senior leverage levels, which we did not want to do. We want to keep this part of the capital structure in line with the approach that we've taken so far, thereby avoiding any negative impact on distribution capacity. And while we could also have considered a subordinated bond that may have come with features like amortizations that would have made it less attractive from a liquidity perspective. Ultimately, the hybrid was the best fit. It allowed us to remove the dilution risk from BNOR15, maintain our financial flexibility and preserve our distribution potential. From our perspective, we achieved the outcome that we were aiming for.

Now if we move on to my final slide, I'd like to finish with an overview of the factors that we believe position BlueNord so well in today's environment. So at the heart of our strategy is a very clear focus. We aim to maximize the cash flow from our producing asset base and then return a significant portion of that cash to our shareholders through our capital returns program. We deliver this by working with the operator to deliver the best operational outcomes possible, maintaining and optimizing conservative capital structure and actively managing risk in a volatile commodity environment. And while the first half of 2025 has seen its fair share of volatility, this hasn't dented our ability to deliver value for all our stakeholders.

First, we benefit from a stable base of low decline production from Dan, Halfdan and Gorm, now complemented by strong growth from Tyra. Importantly, both elements of our portfolio are now generating material cash flow and require no additional growth investment to sustain current levels.

Second, with Tyra approaching steady-state operations, we're becoming a low-cost producer. We expect lifting costs to fall below $13 per barrel of oil equivalent, and we've already taken steps earlier this year to scale back discretionary CapEx. That gives us flexibility to adapt to the market while continuing to generate strong returns.

And third, we take a proactive approach to risk management. We hedge selectively locking in attractive prices when the market gives us the opportunity to do so, so that we can continue to protect and enhance our cash flow outlook.

Looking further ahead, the long-term remains robust. We're building from a strong base, but there's still plenty of value to unlock. We see a clear path to sustaining production levels above 50,000 barrels of oil equivalent per day in 2030 supported by a stable regulatory environment and a portfolio of high-quality accretive investment opportunities.

Finally, on our capital structure. Well, this has certainly evolved over time, we have prior to Q2 at least, always been subject to certain constraints, particularly those linked to the Tyra completion test under our RBL facility. And with this milestone now behind us, we've taken what we see as the final shape -- sorry, what we see as the final step to reshape our capital structure with the convertible bond refinancing and hybrid issue.

The result is simpler and provides us with a platform that fully supports our strategy of maximizing shareholder value. All of this gives us the stability and the visibility to maintain a consistent equity story. One that is grounded in returning 50% to 70% of net operating cash flow to shareholders through the end of 2026.

And with that, I'll now hand over to Miriam, who will take you through a more detailed update on operations. Thank you.

Thank you, Euan. So today, I will take you through how we have achieved the strong production for the best -- for the base assets for the second of 2025 and share the outlook for the remainder of the year. We have completed a high level of planned maintenance to ensure the facilities maintain high operational efficiency. This quarter, work has been carried out on Dan. The HCA gas lift project is nearly complete, and we are progressing on the Dan workovers.

Today, I will also update you on the status for Tyra performance and the ongoing work to improve operational efficiency and ensure stable production for Tyra.

Let's first look at the production performance for the base assets for Q2 and the completed and planned activities for 2025, supporting the production. I'm pleased to share that the Q2 production from the base assets of 21 MBOE per day net, this meeting our guidance range of 20 to 22 MBOE per day net. The quarterly production was achieved despite the completion of a high level of maintenance work. I want to highlight the fact that we have now consistently met or exceeded our guidance for the last 18 quarters.

Following stable production in April with operational efficiency exceeding 90%, planned maintenance on the HP compressor of the Dan field was successfully carried out in May and June.

On the Gorm hub production has been lower than expected due to slow ramp-up after maintenance work in Q1, had issues with the lift gas compressor in the second half of June, but these have now been resolved.

Production from the Halfdan hub has been stable throughout second quarter with an average operational efficiency exceeding 90%. The HCA gas lift module was lifted onto the HCA platform in May by use of the Noble Reacher rig.

As per plan, installation of the gas lift module caused the production from the HCA wells to be closed in for approximately 3 weeks in May. Production from HCA was successfully restarted end of May, and the HCA gas lift module is expected to be operational from early July.

In this quarter, three re-active and one pro-active well workover were completed on the Dan field from the Shelf Drilling winner rig. The last plant workover on Dan is still in progress. After completion of the workover campaign, the Shelf Drilling winner rig will be released. The workovers will be adding volumes to 2025 production and beyond.

Well integrity work is planned on Gorm in Q3 and Q4 from the platform, adding barrels to the 2025 production.

So in summary, production from Q2 was strong despite a high level of maintenance and we will maintain focus on keeping operational efficiency high.

Now let us look at the performance for Tyra in Q2. Tyra continues to ramp up. In Q2, we delivered Tyra production of 16.8 MBOE per day net, which is an increase in production of close to 90% compared to the first quarter. However, this is still below our guidance of 26 to 30 MBOE per day net for the second quarter. The peak production to date was realized on 13th of June with gross production of 204.4 million scf of gas per day and 36 MBOE of oil. This equates to approximately 28 MBOE per day net. And currently, we are producing around 26 MBOE per day net.

I want to highlight that in this quarter, we have proven that we can deliver production rates only slightly below the expected plateau of 30 MBOE per day net. And this has been done with only up to 70% of the Tyra wells online. Process reliability and operational efficiency are key focus areas to maintain stable production at plateau production level.

Tyra has consistently demonstrated meaningful production, confirming facility functionality despite a slower-than-expected ramp-up of the facilities. However, this lower-than-expected operational efficiency and process reliability in the first two quarters of '25 have had a significant impact on the production. And as a result of that, we have updated the Tyra guidance for Q3 to reflect the ongoing work on the process facilities and execution of improvement plans.

I want to highlight that early performance from the different Tyra field supports that reserves are available. The slower ramp-up means that we delay production of the reserve and extend the period with higher production. Tyra has delivered meaningful volumes daily for the last 2 months. There have been several remits published during the past months. It is, however, important to be aware, that REMIT generally have been of a shorter duration than previous.

And in addition, this REMIT notification only address gas volumes exported to Denmark. The gas volumes exported to the Netherlands through the NOGAT pipeline are not addressed in the REMIT. In many cases, exports to Netherlands can continue during REMIT as gas specifications are less strict for this export route.

Now let us look at the status of the Tyra wells and the work being undertaken to ensure stable production. In June, the Tyra Completion Test was met -- sorry, I have to start again.

In June, the Tyra Completion Test under the RBL bank's requirements were successfully met as stated in the press release on 10th of June. After 7 months of actual production, the assessment focused on both oil and gas production, evaluating performance during a ramp-up phase that was influenced by operational efficiency while also confirming the functionality of process facilities. The peak production in June was achieved with 98% of the wells commissioned and up to 70% of the wells on production. As mentioned earlier, this means that the reservoirs are delivering above expectation, and we have already reached our estimated oil plateau rate.

To reach the production plateau, we need to increase the production potential of Tyra by getting more wells online, and we need to achieve stable operations and high operational efficiency. The remaining wells to be put on production have minor issues, which is to be expected after more than 5 years of being shut in. Plans are in place to fix these issues, including gas lift valves, chokes and hydraulic issues. This will be done over the summer.

It's also important to mention here that not all wells are needed for plateau level production. And regarding achieving stable operations, the operator, TotalEnergies, have completed the first phase of a reliability study to identify key factors impacting the process reliability and operational facility. These points are being worked by the operator with support from specialists.

Second phase of the study is ongoing and the execution plan from this study will further improve the operations. I want to highlight that no underlying issues has been identified. The findings are part of normal issues observed during start-up of this major scale project.

To conclude the operations piece today, I can confirm that the continued focus on Tyra progress on ramp-up and process reliability and our strong base asset production are all key components of our strategy for 2025. Together with the operator, we are committed to achieving these operational objectives.

I will now hand over to Cathrine, our Chief Corporate Affairs Officer, who will present the long-term outlook for BlueNord. Thank you.

Thank you, Miriam, and good morning to everyone watching today. With Tyra onstream, BlueNord is today one of the largest oil and gas producers in the EU. And Denmark is now a net exporter of natural gas having been an importer since 2019.

From an emissions intensity perspective, piped gas is undefeatable considering the alternative source, which is imported LNG. As you can see here on the chart that imported volumes carries a significantly higher emissions intensity versus the gas from Tyra. And with pipelines going directly to both Denmark and to the Netherlands, our gas production is a preferred option from an environmental perspective, both domestically and also to the broader EU.

With the geopolitical backdrop, these past 3 years, our future production, it's not only important from an energy security perspective, it's also very important to the Danish economy. The oil and gas industry, of which the DUC represents more than 90% is one of the largest contributors to Danish welfare through tax revenues and especially through the state-owned partner, the Nordsee fund, who has a 20% working interest in the DUC.

The oil and gas industry in Denmark is estimated to deliver state revenues of DKK 55 billion during the next 15 years, with an upside of an additional DKK 11 billion if further potential is utilized. And this brings me to how we intend to contribute medium and longer term, with the resources we have today in our portfolio.

Together with the partners in the DUC, we have agreed a tangible plan with activities over the next few years, which will bring an additional 65 million barrels on production. This plan will support the production we're seeing this year, such that we can keep the production more or less flat to the end of this decade and also beyond. This is done through a combination of smaller projects and also through the drilling of infill wells.

We can start with the project Tyra North, Halfdan North and Valdemar Bo South, which you can see on the left-hand side. These projects require simple infrastructure with unmanned platforms and all three can be tied back to existing infrastructure. Two of them will be tied back to the Tyra hub and the idea is really that these will help backfill the brand new and efficient processing capacity we already have on Tyra. The fact that these projects are tiebacks also helps to make them very competitive from a price point with unit technical cost sub $20 per barrel.

Tyra North and Halfdan North have already been progressed sufficiently to be included in the 2P reserves. And all the three projects add significantly to future production with a total of 45 million barrels.

In addition, we have several infill drilling opportunities. Infill drilling is a cost-efficient and relatively quick way of adding additional production. And the main cost element is really related to the rig that you're using. The infill wells in the portfolio also come with very strong economics with unit development costs of less than $13 per barrel. And we have more than 21 million barrels in both 2P reserves and 2P resources from the infill opportunities. These wells typically reach their peak production fast and the client quite quickly, but they have long production tails. So we try to pace them one after the other, like a string of pearls.

And that leads me on to the production profile. Everything you see on this chart in blue, both light and dark is production from the assets, which are producing today. Tyra in dark blue was limited last year, and this year will be the first meaningful year of production followed by an even more impactful contribution next year. As you see in 2027, output from Tyra continues to be high. And one of the key drivers for this is the success of the HEMJ well, which we brought on production end of last year. This well is processed through the Tyra hub and has alone extended the plateau from Tyra by almost 1 year. And it's also one of the reasons why we don't need to bring all the Tyra wells back on stream right now, but we can save them until later.

Pink on the chart represents optimization work we do to fight the natural decline. And in green, and especially from '27 and onwards, we see the projects and wells from the previous page that are categorized as 2P reserves. These will be significant contributors, keeping that output higher from 2027. And during the same time period, the projects that currently sit as to see resources in dark gray, helps support above 50,000 barrels per day production. And it's expected that these 2C resources will be converted into 2P reserves as they progress.

And then finally, in light gray, we have the longer-term 2C projects which have the potential to lift production closer to even 60,000 barrels in '29 and '30. So what we're really trying to illustrate on this page is how we face the different activities out in time. such that we maintain and keep a stable and reliable production profile for the company.

I think the key takeaway from these two slides is that after 6 very CapEx-heavy years, the company has finally entered into its harvesting mode. And with a very limited CapEx, we're able to stay in this mode well beyond 2030. And in contrast to many peers, we are able to keep this production where it is today without having to seek inorganic growth. This is going to further support cash flow generation and at the same time, deliver into the energy needs of Denmark and Europe.

And I'm now going to leave the word to our CFO, Jacqueline, who will take you through the Q2 financials. Thank you.

Thank you, Cathrine. So Euan shared with you reflections on the quarter, including our new hybrid bond issuance to refinance BNOR15. He also shared our proposed distribution for Q2 2025 of $49 million, which is at the upper end of our policy. I'll talk a little bit more about BNOR15 later. But here, I would like to now, I guess, talk a little bit more in detail around the performance of the financials first, which is, of course, underpinned by the operational performance and the outlook, which Miriam and Cathrine have already shared with you.

So Q2 2025 underlying financial performance stepped up when compared to the first quarter. As you heard earlier from Miriam, underlying asset operating performance is stable and Tyra volumes are now demonstrating a material impact.

As I highlighted in the first quarter, though, we continue to be affected by penalties on gas sales however, to a lesser extent, and this is non-recurring once Tyra is stable. The penalties impacted revenue in the second quarter by approximately $9 million. Excluding this impact, we had higher sales volumes for the quarter in both oil and gas of 66% and 37%, respectively. This was partially offset by lower commodity prices with the average gas price down around 14% when including hedging and penalties.

Now this actually compares favorably when you compare to the market pricing which was down around 24% quarter-on-quarter. For oil, the market price was down around 11% quarter-on-quarter. However, again, with our hedges in place, we were able to see a realized price only down by 2%. So this demonstrates the benefit of hedging we've put in place recently on both oil and gas.

Revenue for the second quarter is $260 million compared with $171 million last quarter. Underlying operating costs are up on an absolute basis, but they are trending down on a per BOE basis. This is as expected, as Tyra volumes continue to increase. And in June, we achieved a rate of around $22 per BOE, excluding workovers. Now workovers this quarter continue and they amounted to approximately $18 million. This contributes around $5 per BOE and will be completed partway through Q3 and until the rig contract ends.

So OpEx for the quarter is $104 million and OpEx per BOE on average, is $30 per BOE. Now excluding the workovers, that's $25 per BOE. As a result, the overall contribution margin is consistent for the second quarter, and it continues to, of course, be positive. Reported EBITDA is $133 million, and this compares with $80 million in the first quarter.

Turning to the summary income statement. You can see the full earnings position. So here, you can see EBITDA has increased significantly compared to the prior quarter as discussed on the previous page. The other production expenses is mainly an increase in overlift of oil and a reduction in oil inventory, which is timing related. We also note that G&A includes restructuring costs of $1.6 million.

Now this was a rightsizing of the company and the organization, and it will save us on G&A of more than $1.5 million per year going forward. When adjusting for primarily the penalties on gas and the restructuring costs, our adjusted EBITDA, as reported, is $145 million.

Moving on, depreciation continues to increase as we now have Tyra volumes increasing. And now if we also look at the net financial items, this is affected, this quarter primarily by the refinancing of BNOR15. The embedded derivative in BNOR15 is now derecognized and the value of the agreed buyback is fully reflected in the balance sheet.

The net impact of these two items is a $9 million expense. In contrast to last quarter, where there was a gain of $13 million on the fair value movement in the embedded derivative. So we will no longer have this volatility in our financial costs going forward. Non-cash volatility does remain, however, on tax expense line.

As we saw last quarter, this is mainly driven by the foreign exchange movement on tax losses, which are denominated in Danish krone and must be revalued each period end under IFRS. This quarter, there is a positive effect of $26 million compared with a positive effect of $17 million in the previous quarter.

Due to the size of the balance, movements in Danish krone have a large effect. However, we have started to utilize these losses and we will see the effect reducing over time. Underlying current tax expense is as expected. So overall, we ended the quarter with a net profit again of $19 million. If we now consider the balance sheet, the main items to highlight relate to working capital, BNOR15 and derivatives.

So firstly, to working capital. This quarter, we have higher receivables due to higher volumes of oil and gas sold. In contrast to the first quarter, we have, at the end of Q2 oil sales outstanding of approximately $45 million, whereas we only had gas receivables outstanding at the end of the first quarter. This means, we have an additional impact of timing where these sales will convert to cash in Q3.

We expect it to be the more normal state to have oil receivables outstanding at a quarter end but this is, of course, dependent on the timing and size of liftings. Gas receivables continue to increase as the volumes produced increase with Tyra.

Moving to interest-bearing debt. This has increased, but this is now taking into account the agreed buyback value of BNOR15. BNOR15 is now recognized as at $332 million. This is up from the $242 million last quarter. Add to that interest of $9 million this quarter and of course, the embedded derivative, which I mentioned previously, is now derecognized, which was $72 million. This, of course, comes to the net effect of $9 million mentioned on the income statement.

So turning to cash. We report an operating cash flow before tax of $71 million. This is compared with $70 million last quarter. Operating cash flow is consistent and not higher this quarter due to the working capital impacts described previously on the balance sheet, where we have higher receivables in oil and gas.

We also then paid $2 million in tax this quarter and have finance costs of $20 million. Now this relates to the RBL facility. This leaves cash of $50 million before capital spend. Capital spend for the quarter is consistent with the previous quarter at $16 million. So we do maintain our expectation for capital investment to be around $50 million to $60 million for the full year of 2025.

And overall, we finished the quarter with a net cash inflow of $34 million. The liquidity position is strengthened with $448 million of cash available and $270 million of undrawn RBL facility. This maintains our fully funded outlook with closing available liquidity, increasing to $718 million. Here, we have also illustrated the impact of the dividend and share buybacks that are to be paid early in Q3. This will result in an adjusted available liquidity of $416 million.

Now on the capital structure, here we illustrate what it looks like after the buyback of BNOR15 is completed and the hybrid bond is issued. The hybrid bond is set to settle today, so this is our capital structure moving forward.

On the next slide, I will just reiterate some of the key points Euan shared with you earlier regarding the refinancing of BNOR15. So this quarter, we announced the finalization of an agreement to refinance BNOR15. This has been a key objective ahead of the mandatory conversion at the end of 2025, and positively ensures no dilution of equity. The buyback price was determined using standard convertible bond market models and assumptions. So in order to fund the buyback, we have issued BNOR17 hybrid bond.

This is also an equity-like instrument and maintains a diverse capital structure with multiple sources of funding. It also enables us to maintain a level of flexibility and is a good fit for BlueNord as we look forward and focus on our strategy to deliver and maintain meaningful returns to shareholders. The hybrid bond matures in 2085. It has a coupon of 12%, and the first call and coupon step-up is in 4.5 years. We expect this hybrid will be primarily classified as equity on the balance sheet with a small debt element.

So moving on to the commodity price environment and how we are managing our exposure. We continue to use hedging as a way to provide visibility over future cash flows, and we add volumes where it makes sense to do so. Our focus for hedging this quarter has been on both oil and gas particularly where prices peaked and with higher volumes picking up.

Our focus was on the 2026 and '27 years. Taking oil first, the average hedged oil price in the outlook for 2025 is $73 per barrel, which provides good downside protection given the uncertainty of where oil will continue to head this year. Equally pricing in '26 of $68.5 per barrel, it remains a good level in this current uncertain environment.

Positions for 2027 are also being contracted, and we continue to monitor the market direction for good opportunities to hedge. In total, this quarter, we added 2.7 million barrels.

Gas hedging this period was also focused on seasons in '26 and '27. And you can see the additional volumes were approximately 450-megawatt hours contracted. We've been able to maintain the average prices per season as shown in the chart, and this remains consistently around the spot price. So hedging for oil for 2025 is at 54% of our production and for '26, 39% of our production. Gas is at 61% and 40%, respectively, for 2025 and 2026. So this hedging approach continues to support our balance sheet and our capital structure and it helps to bring a level of certainty over our financial performance.

So to summarize the second quarter of 2025. Our performance reflects a stable asset base and Tyra continuing to improve with earnings now increasing once Tyra is stable and underpinned by our excellent base hedging position during this uncertain macroeconomic environment, we continue to expect a strong cash flow and earnings year. This underpins our ability to continue to deliver on our priorities.

And with that, I will hand back to Euan for closing remarks.

Thank you, Jacqueline. So before we move into Q&A, I'd like to close with a few final reflections. So you've heard the key milestones from the first half of this year. And I really just want to underline again how far we've come. So we met the Tyra Completion Test unlocking the next phase of value creation for BlueNord. We've never officially begun our distribution program with material capital returns now underway. And we refinanced what we saw as the final necessary part of our balance sheet, removing a significant source of potential equity dilution.

Tyra production was up more than 90% quarter-on-quarter. And where that growth has been strong, we are now more focused on what's ahead with the operator prioritizing uptime and stable operations. So we see room for further increases, not just in terms of peak production, but also sustained average output as reliability improves.

Today, we've also announced our next shareholder distribution covering the second quarter. Together with the dividends already paid and the share buyback we plan to launch next week, we're making real progress on delivering on our commitment to maximize returns to equity holders.

What you've also heard this morning is that while we've traveled far on this journey already, we're only partway through. Our existing business has a long runway ahead well into the 2040s. And we continue to see real opportunities to drive further value from the portfolio we have.

So I'll close on this. Our focus on delivery remains as strong as ever. Thank you very much for joining this morning. And let's pause here to allow a few more questions to come in, and we'll be back shortly for the Q&A session. Thank you.

Okay. Thank you. We have received a few questions which are of a similar theme. So I'll now hand over the word to Euan, who will address some of these.

Perfect. Thank you, Cathrine. So I think one of the themes of the questions that we've received so far has been around Tyra production and particularly the change in guidance for Q3 in particular. So I just wanted to provide a bit more information on that, first of all. So during the second quarter, uptime at Tyra averaged about 60%. And that's been the key driver of production during the quarter. It's not been about reservoir performance or how wells are performing. It's really been about the time that the facilities have been online.

So based on the progress that we've seen so far, we continue to expect that uptime to improve. And for Q3, we're guiding to 70% to 80% uptime. And for Q4, we expect it to be in the 80% to 90% range. Our long-term assumption remains the same, so 90%, and we still expect to reach that level during 2025.

As Miriam mentioned during her presentation, the operator is very much focused on accelerating the increase in uptime. And of course, we want that to happen as quickly as possible, but we also want to be realistic in terms of what we're communicating to the market. So the changes that we've made to date to the Q3 outlook reflect essentially that, a change in the operational efficiency uptimes, but it's not a change in our view on Tyra's long-term potential. And that's why Q4 guidance remains unchanged.

So looking further ahead, as we've obviously noted a couple of times, we've also seen significant outperformance from, for example, the Hemjing well. However, in the longer term, the primary constraint remains for Tyra, the IP gas processing capacity, which is 390 million standard cubic feet per day.

And when we adjust for things like lift gas and third-party volumes, that capacity, assuming 100% uptime translates to production north of 30,000 barrels of oil equivalent per day net to BlueNord. But based on our 90% uptime expectation that equates to around about 30,000 barrels a day net to BlueNord, which is consistent with what we've always said we expect when we have stable operations.

So that was what I wanted to say on Tyra. I think, then the other key theme has really been about distributions in the context of our liquidity position. So firstly, as everybody will know, we've set a very clear distribution policy 50% to 70% of net operation cash flow. And so far, the distributions that we've paid out have been very much at the top end of that range.

As we look forward, we'll continue to assess future distributions, not just against that policy, but also against what we're actually able to pay taking into account things like our leverage position and retained earnings. This quarter, for example, our ability to distribute more has been constrained by our retained earnings position at the ASA level. So in simple terms, what we need to do is we need to distribute retained earnings from the subsidiaries before we can pay them out.

And importantly, we weren't able to do that until the Tyra Completion Test have been successfully met. So that will be done shortly, and therefore, we don't expect that to be a constraint going forward.

Finally, just on the logistics for the dividend that we've proposed today. So that will be formally declared once we've completed the share buyback. The share buyback is expected to launch early next week. So we would expect that it will be declared formally by the end of next week. We then have roughly a week to go x and then a further week for payment to occur.

And those were the things that I wanted to say as an introduction. I'll now hand back to Cathrine for the specific Q&A.

Next question, when can we expect costs to come down to the guided levels?

Yes. So a key element is relating, of course, to the Tyra production. And as Euan has obviously just given a lot more detail on the expectations with Tyra improving and seeing more production later in this year and based on our guidance. So that will obviously reduce the per BOE basis.

As highlighted also, there are workovers in this first half of the year, which is related to the rig contract and we talked a bit about that last quarter as well. So instead of doing the infill wells that is doing workovers at the moment. That contract ends in around mid-Q3. So at that point in time, we will also see a reduction in the OpEx where we won't be doing workovers then for the remainder of Q3 and then, of course, all of Q4.

That contributes around $5 per BOE to our OpEx in absolute terms, that was around $18 million this quarter. So if you exclude workovers, this quarter, OpEx was around $25 per BOE. And then if we focus in on the direct lifting costs and exclude workovers from that line, then we were at around $17 per BOE. And this is the figure to cross refer to the $13 per BOE that we have been, I guess, guiding and referring to. So putting that all together, Q4 should really be the first clean quarter where we are without the workovers and with Tyra producing as expected.

Next question, are there any gas penalties this quarter? If so, how much?

There are. So again, as indicated before as well, we did expect to still see some penalties that has gone down. So from Q1, it was at $11 million; Q2, we saw around $9 million, and it will continue to be on a trajectory downwards as Tyra stabilizes and we also have, in our process, reflected the Tyra performance when we're nominating for gas.

Then how is the additional $56 million of compensation bonds payable to BNOR15 holders calculated?

So the buyback price was determined using a standard convertible bonds market model and assumptions. So this was then based on a 5-day close on close average of the share price, and that was between the 16th and 20th of June.

I think just on that one sort of simplistically, the CB was in the money. So if you looked at the principal values, the CB, the actual values, the underlying shares was higher on the conversion. So it was taking account of that. And then also needs to take care of the fact that there was a small amount of auction value left until the end of the year. So that was the basic principle around how we set the volume.

And then, why has the balance sheet at the end of Q2 included both BNOR15 and the replacement bond when one is contingent on the other?

This has led to an apparent significant increase in net debt which presumably has already reversed in Q3.

So the balance sheet itself actually only includes the buyback value for BNOR15 so that rounds to $332 million. The replacement bond that will only be recognized in Q3 once that is settled. Looking at it, just this is for the balance sheet itself. When you do look at the alternative performance measures, it's probably best to exclude that item that related to the previous value of BNOR15 and only include the $331 million. Of course, for covenant purposes, the convertible is also just excluded entirely.

And then final question, do you have a target net debt position that reflects the maximum efficiency level for the capital structure?

So we've always talked about net debt on a through-cycle basis being around 1.5x. We're obviously, from a leverage point of view, quickly deleveraging and we can see that in our performance to date. So the net debt level will obviously be reflecting that covenant basis.

Thank you. That concludes the Q&A session. Thank you.