Hello, everybody, and a warm welcome to the Vår Energi first quarter 2022 presentation. My name is Melissa, and I'll be your operator. If you would like to ask a question following today's presentation, that will be star followed by one on your telephone keypad. I now have the pleasure of handing over to our host, Ida Fjellheim, to begin. Ida, please go ahead. Thank you, and a warm welcome to Vår Energi's first quarter 2022 results webcast and conference call. Joining us today will be our CEO, Torger Rød, and our CFO, Stefano Pujatti. Torger and Stefano will present the first quarter results, and afterwards, we will open up to questions. I will now turn the call over to Torger. Thank you, Ida. Good morning to all of you. This morning, I am welcoming you from Vår Energi's office in Hammerfest, where we have operation office of Goliat. As for the rest of Vår Energi, Goliat is concluding one of its best quarters ever. I am very happy to be here today and present Vår Energi's first quarter 2022 results. We presented the Q4 results March first this year, and due to the Russian invasion of Ukraine just a week earlier, we all felt a significant uncertainty. Standing here today, it is fair to say that this uncertainty has not been reduced. Our heartfelt thoughts and support are with the Ukrainian people and all the innocent involved. This really put things in perspective. We are proud of our company being a leading pure-play independent on the Norwegian continental shelf. This is based on key assets, our people and our diversified and robust portfolio with a substantial gas position. Based on our core hubs, the Barents Sea area, Åsgard area, Tampen, and the Balder/Grane, we have four solid legs to stand on for high-value creation and continued growth. We delivered exceptional cash flow generation for the first quarter of the year, reflecting good execution of our long-term strategy and a strong commodity price environment. However, this partly reflects the significant uncertainties created by Russia's invasion of Ukraine in February, which comes on top of already tight energy markets as global demand recovers from the COVID-19 pandemic. Combined with increased inflation and disturbance in global supply chains, this adds uncertainty with regards to the future global economic development. Against this backdrop, Vår Energi maintained solid operational performance with material gas volumes delivered to customers in Europe. We have a tangible growth ahead, which makes us stand out to deliver a production of more than 350,000 bbl by end 2025, representing 10% average annual growth the coming years. This is based on development of sanctioned project portfolio with a break-even price less than $30 per bbl. With a CapEx profile that allows for continued attractive and resilient shareholder distribution, as well as an investment-grade balance sheet. This growth is achieved by five key growth levers. Material long-lived resources, 1.7 billion bbl in 2P and 2C reserves, improved recovery, project development, exploration, and selective and value-driven M&A. We have clearly stated our intention to provide attractive returns to shareholders, and today we are raising our 2022 dividend guidance to $1 billion from $800 million communicated previously. We also set the expectation of paying $260 million for the second quarter. This demonstrates our flexible dividend policy as previously communicated and reflects our expectations to generate a material free cash flow from our business at oil prices above $30 per bbl, as shown to the left of this slide. Also, as previously communicated, we will pay a dividend of $235 million for Q1, and this will be paid on May 12. From 2023 and onwards, our dividend policy is to return between 20%-30% of operational cash flow after tax to shareholders. Diving into the highlights of the quarter, we had record earnings on the back of high oil and gas prices and a robust operational performance. We had our best operational performance with production of 242,000 bbl, down from Q4, mainly due to adjustments of gas conversion factor, as well as other operational impacts and natural decline. As earlier communicated, we had a leak in a flow line of the Balder field in January, which has now been repaired and production was fully restored in April. The incident was classified as an actual serious incident in accordance with our classification criteria being related to the leak rate. However, important to stress, no personal injuries and with minor environmental impact. We had exceptional cash flow generation in the quarter. We delivered record high cash flow from operations of $2.2 billion after tax, realizing high oil and gas prices with average weighted hydrocarbon price of almost $120 per bbl for the quarter. Natural gas representing 35% of the volume and 47% of revenue in the quarter. As I mentioned earlier, this is reflected in our raised 2022 dividend guidance of $1 billion. We are in a strong financial position. $3.8 billion in available liquidity, cash and undrawn facilities, and a leverage ratio further reduced to 0.6 net interest-bearing debt on EBITDAX at the end of the quarter, from 1.1 at end 2021. On strong cash flow from operations, increased cash and low debt. All of this, of course, supports our investment-grade rating. We are on track to deliver on our high value production target of above 350,000 bbl by end 2025. However, we are mindful that increased macro and supply chain uncertainties is affecting inflation for our industry and society in general, which represents uncertainties we are monitoring and managing. Here you see the key performance indicator defining our strong quarter one. We have strong focus on safety being a prerequisite in all we do. Focus is always safe, and our ambition is to be the safest operator. Again, we are very pleased that no one got seriously injured when working for Vår Energi in Q one. Our clear target is zero serious incidents and injuries. As mentioned, we had one serious incident in the quarter, as reflected in the actual serious incident frequency. Being the leader on ESG brings continuous focus on emission reductions. The CO2 total emission intensity for operated fields in the first quarter is estimated to 7.6 kg per bbl. A slight improvement from 8.1 kbo in the previous quarter. Q1 production of 242,000 bbl is well within our guidance for the year and reflects overall robust operations across our portfolio. The change in use of gas conversion factor has an impact of 5,000 bbl a day, meaning a Q4 production rebased equal to 253,000 bbl. When it comes to production cost per bbl, this is down from last quarter due to seasonally low maintenance, but as well brought some higher due to the Balder leakage repair. To summarize, our production cost guidance for 2022 is maintained. We have generated exceptional cash flow from operations, which I'm proud of, and we are delivering on our dividend commitments. Turning to operations. Vår Energi's highest priority is to carry out our activities without causing harm to people and the environment. We had high activity through 2021, which continues into 2022, driven by project activities, turnarounds, and drilling operations. The company's key performance indicators, serious incident frequency, SIF, and total recordable injury frequency, TRIF, developed positively in 2021. For Q1, falling object is still a concern, representing four potential SIF incidents. This is an industry challenge, and a lot of effort is put in place to improve this. The actual SIF was zero throughout 2021 and are now at 0.1 due to the Balder leak. We want to ensure always safe and zero incidents and to further strengthen the culture and focus on safety, Vår Energi will relentlessly drive for implementation of key initiatives, such as the industry-wide Always Safe annual wheel, the lifesaving rules, and the company's internal TIR tool: take time, involve, report. The CO2 emissions intensity for operator-operated assets is slightly improving from last quarter at 7.6 kg per bbl. Vår Energi has set an ambitious target to become a net zero producer on emissions from our Scope 1 and 2 by 2030. We believe that the decarbonization of oil and gas production is a prerequisite to ensure our resilient business model and long-term value equation. This quarter, we made progress in the Barents Blue joint partnership with Equinor and Horisont Energi. The partnership was awarded the Polaris CO2 storage license located in the Barents Sea. The Barents Blue project partnership plans to utilize the Polaris reservoir to permanently store CO2 capture from the Barents Blue facility in Hammerfest. It will enable the production of carbon-neutral ammonia, reforming natural gas from the Barents Sea to clean blue ammonia using carbon capture and storage. The first stage of the development will include capture, transport and storage of more than 2 million tons of CO2 per year. We are still in an early phase of the partnership. However, this is clearly a step in the right direction. We saw robust operational performance in the quarter, with production of 242,000 bbl, which is in line with the 2022 production guidance of 230,000 bbl-245,000 bbl. The production is some down from Q4, and this is mainly related to the adjustment of gas conversion factor, which has an impact of approximately 5,000 bbl. This is not related to operation performance, but are technical adjustments to the conversion factor method. Other operation impacts include unplanned losses at Balder, a compressor failure at Sleipner, which is expected to last until September, and some downtime at Åsgard and Mikkel. In addition, we have natural decline in the portfolio. On the opposite end, we have experienced very strong performance on Goliat. Our four strategic hubs provided 74% of the total production in the quarter. As you can see from the right chart of this or right part of this chart, gas makes up a large share of our production, with 35% of produced volumes in the quarter, meaning that we have a significant exposure to gas. We are reliable and a secure supplier of gas to Europe and UK and have full exposure to the current strong price environment. We have flexible gas sales agreements, and in the current market we have up to 85% of our gas production exposed to the short-term market, being spot and month ahead. I also want to give an operational update on our operated assets, starting with Balder and Ringhorne. As mentioned, the quarter was impacted by the incident in January resulting in an oil leak and shut-in of some of the production templates. The production from these templates has been reestablished in April following a successful repair job. Corrective measures are being implemented and will be followed up closely and learnings will be shared. We are happy to see that the Ringhorne infill drilling program is progressing according to plans. Turnaround activity is scheduled in Q3. Impact is approximately 4,000 bbl per day for the quarter. Goliat has been a strong performer in the quarter, with operational efficiency increasing from 94% in Q4 to 96% in Q1 due to high regularity. This exceeds our 2023 targets of 95% uptime being part of the Goliat improvement program, targeting efficiency and OPEX improvements. We are happy to see this program progressing somewhat ahead of plan. Production from Goliat was marginally down from the last quarter due to natural well decline. Currently, we are preparing for plant turnaround during the second quarter. This will commence late May and have an impact of approximately 7,000 bbl in the quarter. Since 2018, our unit OPEX has reduced from $44 to $14 per bbl to $12 per bbl in 2021. In the quarter, we are reporting a production cost per bbl of $12.1, mainly due to seasonal lower maintenance activities in Q1. Vår Energi maintains its full year 2022 guidance for production cost per bbl at $12.5-$13.5. We are seeing good progress on the unit cost improvement programs, which will take us in the direction of our medium-term production cost ambition of $8 per bbl. There are several levers to take us towards the $8 per bbl. Ongoing projects with strong economy and very competitive production cost, with our production cost around $3 per bbl. Uptime improvement initiative, as mentioned for Goliat. Cost-sharing and strategic partnership with suppliers. Portfolio optimization and cost reduction programs and active portfolio management. We are on track to deliver on the year-end 2025 production target, driven by the fourteen projects in execution. Overall progressing well. These projects underpin our production target of more than 350,000 bbl by end 2025. This growth is largely based on already sanctioned projects, many of which are well into execution. The three main projects are Balder X, Johan Castberg, and Breidablikk, and an update will be given for this in the coming slides. That said, we are very mindful of the challenges facing the world and our industry at present. The current high oil and gas prices partly reflect increased macro and supply chain uncertainties due to the war in Ukraine and continued COVID-19 shutdowns in China. Supply chain disruptions and tight commodity markets are key factors driving inflation in oil markets. While we in Norway now seem to have put COVID-19 behind us, it is still a factor impacting people and operations well into 2022. We all experienced the impact in December 2021 to March 2022, including high level of sick leave. Against this backdrop, we work every day to mitigate risk, to ensure good project progress, to keep the schedule. While all these items add pressure on cost, we seek efficiency to mitigate the impact. To summarize, we are maintaining our overall plan for our production growth, and we are maintaining our CapEx guidance of $2.3 billion-$2.6 billion for 2022. The Balder X project is an important element of our growth plan. It is highly profitable project leveraging existing hub infrastructure to deliver significant high-value production. As a hub in the area, it positions us for significant upside potential from infill drilling and future tie-ins even beyond 2045. We are progressing on schedule for planned first oil in Q4 2023. Results from the inspection program on Jotun FPSO, completed in Q4 2021, is incorporated into the integrated execution schedule without affecting plan, planned first oil. Both the drilling program and the 2022 subsea installation campaign are ongoing. When it comes to important milestones for the year, final equipment orders to be concluded in the second quarter of this year. Further, PEM Gate 5, which means engineering documents issued for construction to be done by end Q3, and AHTO dry dock and completion of the subsea work to be done by end Q4. Hence, we have an important and exciting period ahead of us. We have continuous focus on mitigating project risk and maintaining schedule. Challenging weather in Q1 has impacted drilling operation. Drilling is now progressing with one out of 15 planned wells completed. The incorporation of the Jotun inspection program has led to increased procurement scope, and we have seen additional engineering hours to compensate for continued COVID-19 effects. Another exciting project is Johan Castberg, which has now arrived in Norway. This is set to become the second oil producer in the Barents Sea besides Goliat. It will strengthen the very prosperous Barents Sea hub and opening for high-value infill drilling and likely tie-ins. We see significant value upside in this important region and are actively working with our partner, Equinor, to maximize value and ensure efficient operation. We are on track for planned first oil in fourth quarter 2024. To mention some key activities. The FPSO left Singapore in mid-February and arrived at Stord in April. Phase one drilling campaign are completed ahead of time and below budget. The next important milestone for this project including turret and topside installation, which is planned for second and third quarter this year. A total of 22,000 tons of modules will be lifted on board. We are on Breidablikk. Breidablikk is another major NCS development project progressing according to plan. It is a highly attractive and cost-effective development being developed with 23 horizontal oil producers drilled from four subsea templates tied back to the Grane platform. All four subsea templates successfully installed during first quarter 2022, and the drilling program will commence in May 2022. First oil planned in Q1 2024. Our 2022 exploration campaign continues to target high-value bbl and to replicate the 2021 success. We plan for a similar level of pre-tax exploration investments in 2022 as in the 2021 campaign, with nine wells to be spudded during the year. During Q1, we participate in the dry Statfjord Kile well. The Ormen Lange Deep and the Snorre Lomvi flank wells are currently being drilled, with the outcome of both exploration wells expected to be announced in the second quarter. All planned wells are located close to our key hubs, with potential for high margin bbl, which in case of discovery, will be considered for early development. I will then conclude the operation update. I hope this provided a thorough review of our activities, and I'm very happy to hand over the word to Stefano, who will elaborate on our strong financial results. Thank you. Thanks, Torger, and good morning, everybody. I'm very pleased to present another record quarter for us, driven by special times, as you previously mentioned. Some highlights on key financials. We have seen increased commodity prices. We achieved record revenues and cash flow generation. We have reduced the leverage ratio quite substantially. Record available liquidity, and we confirm the dividend for the quarter to $225 million to be paid in May. This slide shows some of our key financials for the quarter compared to Q4 and Q1, 2021. I will now move on to explain in more depth the company first quarter financial performance. As mentioned, this has been a record quarter with strong operational performance and favorable market conditions. Petroleum revenues from sale of liquids in the quarter was $1.3 billion, roughly 53%, whereas revenue from sale of gas was roughly 47% at $1.2 billion. Total petroleum revenues was $2.5 billion, an increase of 9% compared to the previous quarter. $200 million was the increase in petroleum revenues, and that was mainly driven by a combination of higher oil prices, roughly $340 million, offset by $140 million due to lower production. During the quarter, we continued to divert gas from injection to sales to capture high gas prices and generate additional revenue. We also reduced methanol production and added the ethane to the gas export from Kårstø to generate additional revenues. Average oil price realized in the first quarter was $100 per bbl, up from $80 per bbl in the fourth quarter. The average realized gas price in the quarter was $163 per bbl, up from $148 per bbl in the previous quarter. This is roughly equivalent to $27.5/MMBtu or 83.6 EUR/MWh. The weighted average price per BOE amounted to $120 per bbl in the first quarter. Sold volumes in the quarter were 20.7 million bbl, down from 22.1 million bbl in the previous quarter. Total production cost on sold volumes after adjustments like over under lift, that was the most relevant one in the first quarter, amounted to $341 million, so pretty stable quarter-over-quarter. The decrease was mainly due to the lower cost of operations, as there normally are low maintenance and overall activities in the winter season on the NCS. In addition, Q4 included one-off restructuring costs and restructuring, cost build also from partners that together with revised bonus provisions, further decreased the cost of operations in Q1 versus Q4. Transportation costs, environmental taxes, and insurance costs combined were stable quarter-on-quarter. We had record net cash flow from operating activities, CFFO, in the quarter amounting to $2.2 billion, so an increase of 137% compared to $900 million in the fourth quarter of 2021. That was mainly driven by higher product prices, as mentioned earlier. Tax payments in the quarter amounted to $183 million, down from $572 million in the previous quarter. Tax payments in the second quarter are estimated to be $348 million. Note that taxes payable is seasonal. Only one of six annual tax payments are due in the first quarter. CapEx in the quarter was marginally lower when compared to the previous quarter. We have $621 million versus $710 million. CapEx on Balder, Johan Castberg, Fenja, Grane, Snorre, and Statfjord amounted to 85% of the total CapEx. The strong operating cash flow covered the company's CapEx with good margin. The CFFO to CapEx coverage was 3.5 in the quarter, up from 1.3 in the fourth quarter. 2022 guidance of $2.3 billion-$2.6 billion in development CapEx and $200 million in exploration and abandonment CapEx is maintained. As mentioned before, we had record CFFO in the first quarter amounting to $2.1 billion before changes in working capital and taxes, driven mainly by higher product prices. As part of the group's working capital and finance cost optimization, Vår Energi has entered into a credit discount agreement with seven-odd banks. Under the arrangement, the ownership, including credit risk of invoices for oil cargo sold, are transferred to the respective banks, and the receivables to which the payments relate are derecognized from Vår Energi balance sheet. Payments to the banks are made when Vår Energi receives payments from the customers. This has significantly contributed to the positive movement in the working capital that you see in Q1. CFFO was $2.2 billion in the quarter after investment activities and debt repayments. The cash position at the end of the quarter was $539 million. Combined with undrawn credit facilities, the available liquidity amounted to $3.8 billion, so quite a strong position to be in. The strong cash flow generated in the quarter, combined with debt reduction, led to a leverage ratio of 0.6 at the end of the quarter, down from 1.1 at the end of the year. We keep being committed to maintaining an investment-grade rating, and the strengthening of our balance sheet will continue to support material shareholder distribution also going forward. We generated exceptional cash flow driven by very strong commodity prices. Therefore, we raised the dividend guidance for 2022 to $1 billion. The guidance for Q2 is $260 million. We confirm $225 million as of Q1 2022 dividend equal to $0.09 per share to be paid in May. Dividend policy from 2023 onwards is to distribute a range between 20%-30% of the CFFO after tax. Finally, I would like to sum up this section with our forward-looking guidance elements. These are unchanged since the IPO process, with the exceptions of the dividend. I just want to highlight the following. We expect production in 2022 of in a range between 230-45,000 bbl a day, increasing gradually toward 350,000 bbl a day in the medium term based on the current strategic plan. We are targeting an OPEX per BOE between $12.5-$13.5 in 2022, which is targeted to decline toward $8 as new projects come on stream and we progress our cost-saving program. Our CapEx is targeted in a range between $2.3 billion-$2.6 billion next year, excluding exploration and abandonment, which will add approximately $200 million. We confirm the leverage through the cycle target of 1.0 through 1.3 of net debt on EBITDA. As addressed earlier, we raised the dividend guidance for the full year. With that, I leave the floor back to Torger for some concluding remarks. Thank you. Thank you, Stefano. Vår Energi is delivering another record quarter. It really proves the unique combination of value creation, growth, and our significant distribution to our shareholders. I want to leave you with the main takeaways. We have a robust operational performance, exceptional cash flow generation, strong financial position, being on track to deliver on year-end 2025 production targets, and we are raising the dividend guidance for 2022 to $1 billion. With that, thanks a lot for the attention. Thank you. If you would like to ask a question, please press star followed by one on your telephone keypad. If you change your mind, that will be star followed by two. To ask a question, you can press star followed by one. Our first question today comes from Teodor Sveen-Nilsen of SpareBank 1 Markets. Teodor, over to you. Good morning, and thanks for taking my questions, and also congrats on a strong first quarter. Three questions from me, if I may. First, as Torger, you mentioned cost inflation. Just wonder, could you briefly discuss which of the projects that are maybe most exposed to any potential cost inflation, and what kind of measures you have taken to avoid any cost increases? Second question is on financial leverage. You currently have 0.6 net debt to EBITDA, and obviously that's well below your long-term guidance. Just wonder how you think around that or what should we expect. Should we expect even more dividends? Should we expect more CapEx or lower EBITDA going forward? And final question is on the share buyback versus a dividend. Just curious on your conceptual view on share buybacks versus dividends. That's all from me. Thank you. Okay. Good morning, and thanks a lot for your question, Teodor Sveen-Nilsen. To start on the inflation side here. You know, as stated in my presentation here, you know, we see this as a growing concern. I think I would like to say that, you know, in general, we see it generally. You know, we have at the moment 14 projects in execution, as well as a set of early phase projects. As well as of course, we have operational activities that also could be exposed for this. I think rest of us, you know, we are monitoring this, you know, we are getting the reports both when it comes to inflation, it comes to increased interest rate. You know, we see impact on the supply chain or the disruption in the supply chain. Of course, this is things that we are monitoring, you know, and managing as good as we can. I don't have any specific projects that I would say that, you know, I think it's a bigger concern than others. If I continue on that path, of course, that I think what is good for us that when it comes to those projects that the 14 projects that gives us this significant growth, they are all sanctioned and they are well into execution. That means that they have placed the contracts. We have, you know, predominantly bought the equipment and the steel, which should reduce the, let's say, the impact of inflation. Of course, when it comes to supply chain disruption, that could still be there. That what I'm then alluding to is what, and it's yet to confirm, is of course to assess what could happen on more of the early phase projects. As we have also stated before, we have, you know, many projects and FIDs, you know, we have taken them ahead of this big wave that is now coming on the NCS, you know, the last half of this year. Which might, you know, lead to, you know, a lot of activity and then potentially also constraints on personnel and performance. On the mitigating side, it's good to state that we have, for instance, rigs on long-term contracts. That means that of course, the drilling activities for the projects, for our exploration, you know, we have them tied in. So that is part of the set of mitigations that we have. We are also looking into some specifics, you know, what and to avoid some specific materials, alloys, which, where we see a higher price increase than other areas. So we are, let's say, in a general perspective and also into a detailed perspective on this matter. As said, really assessing this on a macro picture and reading all the reports and all the, let's say, the feedback we get from the market there. That was inflation part. Then I think on the leverage, maybe I pass the ball to you, Stefano, and for you to start on our philosophy and how we are thinking around the leverage. I think that also ties into the last question when it comes to the share buyback. You to start there, Stefano. Sure. Thanks, Torger. Yes, we as far as leverage is concerned, we have a target of 1.3 net debt on EBITDA, as we showed. However, the number will fluctuate in some periods, will be higher, and in others, will be lower, like we are seeing today. The target of 1.3 is actually a target that we have over a market cycle. Therefore, we have the flexibility to go higher in case of good investment, accretive investments or M&A. Let me say that really, our main focus is to execute the ongoing development projects, which will fuel our growth and actually be an investment-grade balance sheet, and at the same time address dividend increase like we are seeing today. As far as the share buyback versus dividend, definitely share buyback is an option that the company has as a listed company now. We believe that currently dividend let's say serve better the remuneration of the shareholders. You see that we have been quite proactive now in capturing the upside and being proactive in sharing this upside with the shareholders by increasing the dividend from $800 million - $1 billion. Of course, share buyback can be an instrument or an option that the company has in the toolbox, and that can be used when we think it will fit the best. Yeah. Maybe want to add one word on the inflation side, because also we are factoring in some of this and what we expect here, for instance, into the operation. I didn't mention that. That is part of also the mitigation and taking some, let's say, room for it. Yes. Thanks. Okay. Thank you. Thank you, Teodor. We'll take our next question from Sasikanth Chilukuru of Morgan Stanley. Sasikanth, over to you. Hi. Thanks for taking my questions. I had two, please. The first was, I was just wondering if it was possible to provide more color to the 10% quarter-on-quarter increase in gas price realizations. Perhaps any commentary regarding the exposure to spot or day-ahead contract prices in the first quarter. And also, partly related to this, is it possible to get the profile of the 9.2% of estimated 2022 gas production that has been forward sold? Is this primarily in the second and third quarter of 2022? Now, the second question was most related to the 2023 - 2025 dividends. I was just wondering, do you expect the 2022 dividend of $1 billion to be sustainable till 2025? Will you be looking to lower the dividends in line with your 20%-30% cash flow from operations guidance if there was a reduction in CFFO generation? Slightly related to this, can you please confirm that the dividends paid in 2022 will be lower than the $1 billion confirmed for 2022 and also the $950 million paid in 2021? As it seems like the full Q4 2022 dividend payments will likely fall into the first quarter of 2023. Thanks. Thanks a lot for your question. Gas is a hot topic. Stefano, I know you have been looking into that particularly, so maybe you can start this. Yes. Let me try to clarify a bit the question. The gas sale strategy really that we have is to have 70% of the gas sold into long-term agreements and 30% to be sold in the short-term market. Within the long-term agreement, we can influence what indexes the gas will be priced at. Just to be specific for Q1, we sold 50% of gas linked to a day ahead with roughly $190 per bbl, and 35% was linked to month ahead at a price of $183 per bbl. Then we have roughly 15% that is linked to other like two months ahead, quarter ahead and year ahead. That is, let's say, forming the 163 that you see as realized price, which is in euro megawatt hour. We achieved a gas price of EUR 83.6 euro megawatt hour. Now, related to the, to the, in general, for the remainder of the year, we have sold roughly 12% of our volumes on fixed contracts, and that is with an average price of $157 per bbl. In addition, roughly 9% of the volumes are sold on year-ahead prices, which was actually nominated in 2020. They are not reflecting the most recent spike in natural gas prices. That actually will continue until the end of September. For Q4, we have sold roughly 18% of the gas on a gas year ahead basis, and that is expected to be priced around $133 per bbl. All the remaining volumes are exposed to the short-term prices, so that means day ahead or month ahead. As far as the dividend is concerned, let me say. Of course, the $1 billion of this year is linked to this moment, to this context, to the very strong supportive macro that we are seeing. On this, we have visibility. Therefore, that is the commitment that the company is taking. For 2023 onward, we state the policy that will be a dividend between a 20%-30% of the CFFO. The payments of the dividend will actually you're right. Actually, we are paying actually every quarter then we will announce the dividend, and that will be paid in the following month. Overall, you will have three installments paid this year. You will have Q1, Q2, and Q3, which will be paid in 2022, and Q4 will then let's say, shift to February 2023. Great. Thank you very much. Thanks. Thank you. We'll be taking our next question from Mark Wilson of Jefferies. Mark, the floor is yours. All right. Thank you very much. Yes, excellent sort of first numbers. Well done on that. I'd like to dig in a bit further to your main operated growth project, Balder X. Because I think the presentation, it said that Balder X is going to produce over 70,000 bbl of oil a day once it's fully on stream. I think that is an increase from what you've showed before. I think previously it was 63. Just comment on that. Secondly, with relation to the supply chain inflation costs, clearly Jotun FPSO coming out of dry dock for the Balder X is a very important timeline and cost. You did mention how final equipment orders are to be placed now, and there's been some increase in procurement after inspection. Could you speak to that? Possibly is there an overall CapEx number you could give for the Balder X and Jotun, particularly with those procurement points? Thank you. Thanks a lot for your question, Mark. To talk a bit about the project portfolio. As I said, we have you know a significant amount of projects in our portfolio and the 14 is the number in development. As we also stated in our presentation here that you know in overall these projects are progressing well. You know, this is project that really brings you know high value to Vår Energi. You know, high production, high value. And of course, they have a very robust economy and you know high internal rate of returns. We are confirming the schedule on these projects to take us to about 350 by end 2025. What we confirmed in our presentation and our annual report is that we are, you know, maintaining our CapEx guidance for 2022 of $2.3 billion-$2.6 billion. That is really framing the status on our project portfolio. When it comes to Balder and the Balder Future project that is really building on this. As you know, Balder is an area we have been for a long time. It is really our core hub. It is, you know, represents a significant value creation so far, and it will do that until 2045 and beyond. When it comes to the production numbers here, I think the 70,000 is versus the 63, I think that is 100% production and Vår Energi production because we have a 90% equity here. That is the difference in those numbers. We are not increasing. We haven't increased the number of production, you know, of the Balder Future. With that said, of course we, as you know, we have this very interesting discovery in the King and Prince in the Balder area. Of course, there will be tiebacks coming when this is out and being the hub. When it comes then to the specifics on Jotun there. As you are right, you know, we have some very important milestones ahead of us. Of course, we had a very important milestone completed in December with an inspection. Now we are facing several important. One of them is today, as you also alluded to, placing the last, I think that is, to be precise, the last purchase orders for our equipment. A significant, you know, the majority is placed, and it is even arrived to Stavanger where the yard is. That's a good thing, so to speak. The greater magnitude is already done and in place. Of course, we have to monitor based on also the question from SpareBank 1 Markets, the inflation and the supply chains challenges on what's left to be done. When it comes to the overall cost picture, you know, on Balder. You know, we are maintaining the cost we have presented earlier. We don't think. I think it's, you know, we don't have any. There's not the time to justify any changes to that at this moment in time. Okay, no, very clear. Thank you for that. Most of those procurements are already placed. Very good. I also note you're drilling the Ormen Lange Deep well, is 10% working interest, but is the largest target you're involved in. Just give us some background on that. Is that a gas target underlying the Ormen Lange field? Correct. Yeah. Ormen Lange, you know, the Ormen Lange Deep is a gas play as Ormen Lange. It is what you call a high-risk, high-reward. That means that the probability is not necessarily the highest, but if there is a success, then it might represent significant resources. Exciting. Of course, that will then go into the Ormen Lange and to the new Nyhamna facility. Exciting, well that is ongoing as we speak. Good. Thank you very much. I will hand it over. Thank you, Mark. We'll now move over to John Olaisen of ABG Sundal Collier. John, over to you. Yeah. Good morning, everybody. In Dagens Næringsliv today, they wrote that Equinor is considering building a gas pipeline from the Wisting field via the Castberg field and via Goliat to the LNG plant at Hammerfest. I just wonder if this is something that you confirm or have any comments to. Maybe on that, if you could remind us what are the volumes of gas at Castberg and Goliat, and what are your alternatives. For that gas, please. Thanks a lot, John. You know, for me, I think I would rather prefer to comment than confirm, because I think that's the operator's task to confirm. You know, as you know, the Barents Sea is important for energy and it is one of our strategic hubs, and of course, that is based on all our insight, all our competence in that area. Of course, with Goliat, you also know that we drilled several wells last year with success both in the Goliat area with Rødhette and in the Johan Castberg area, and also that is what we're going to do this year with four wells in total, two in Goliat area and two in Castberg area. That is. One of the things that, as you know, have been discussed for a long time is what kind of alternatives or what kind of additional gas evacuation should we establish in the Barents Sea. I think in general, and I emphasize on general, you know, we are positive to the fact that, you know, infrastructure is being established, you know, when if or when confirmed from the operator here. Of course, you know that we are a license holder in Johan Castberg, and I already mentioned those areas, adjacent areas that you know could be of interest. I think it's very important that we look on the area solution for Barents Sea. I feel that there is a close collaboration and a strong partnership in the Barents to do that. Of course, also you know that we also are assessing the blue ammonia and the Polaris as one alternative, even though it's early, it's exciting together with Equinor and Horisont. Of course, we have this Norvarg as you also mentioned, John. I think that is the alternatives. Now we are assessing several to really find the best solution to have both a good capacity, a good area solution to create further value in the Barents Sea. How much gas is there at Castberg that potentially could be produced? Yeah, you know, this again, of course, the more accurate answer you, I'm sure you can ask Equinor about, is it tomorrow or the day after. Johan Castberg is not gas heavy. It's so first at Castberg it will be oil producing and then they will, if I recall this right, you know, it is in the 2040, they need some gas solution. So it's not, it is predominantly oil in Johan Castberg. My second question, if that's all right, related to the previous questions about cost inflation. How much of the rig capacity has been secured for 2022 and also for 2023, maybe? May I ask what kind of cost inflation you have assumed in your medium-term production cost target of $8, please? Yeah. Starting on the rig side, John, there we have, more or less to my knowledge, I know at least for the major campaigns, we have secured everything for 2022. You know what's ongoing now and exploration and of course, the production drilling. And also infill drilling. When it also comes to the majority for next year, and then I'm specifically thinking on the production drilling, we have also secured that. There is a significant part already secured. Then when it comes to what you have included in the production cost. You know, we have been factoring in some inflation as you know as we have seen across multiple industries, and that is related to raw materials, energy prices, and so on into our production cost plans for the years ahead. That is what we have been incorporating there. I don't know, Stefano, if you would like to add something on that topic as well. Just let me maybe add the fact that on the main contracts with suppliers, we adjust within the range of the Consumer Price Index on a yearly basis. As you mentioned, we haven't seen extraordinary inflation effects on our contracts or projects for this year. However, of course, due to the increase in raw material prices, especially steel and chemicals, commodities, the outlook might require additional attention. All right. Thank you very much for the answers. Thank you. Yeah, thanks. Thank you, John. We have two further questions registered. In the interest of time, please limit your questions to one each. We'll take our next question from James Thompson of J.P. Morgan. James, over to you. Great. Thank you. Appreciate you taking the time for me. Just I wanted to ask you, Torger, in terms of just some sort of background on the kind of M&A environment at the moment. You know, it's a part of your overall growth strategy. You've got plenty of liquidity at this point in time, but you know, oil and gas prices are clearly very strong. I was wondering if you could maybe give us an update on that general environment in terms of potential M&A and you know, bringing other projects into the portfolio at this point. Thanks a lot. Hi, James, and thanks a lot for your question. Talking to M&A and as you're saying, you know, it is one. It has always been one of the levers in Vår Energi, you know. It wouldn't be Vår Energi without M&A, so to speak. Also as we have been stating before, you know, we are assessing accretive M&A. I think that is. Of course, we are in it for the value creating value. Also as we are saying, you know, we have a fantastic robust portfolio. We have a significant organic growth ahead of us, and we like to focus on that. Of course, if we see value, you know, close to our strategic hubs and, you know, we might act on it. That is a starting point. Also, as you also alluded to, you know, of course, it's high prices now and high commodity things. Really, as I said, I think we are number one, we are focusing now on creating value through our portfolio. Also as you mentioned, you know, because it's two dimensions in your question about the project. Because we have a lot of excitement also in our early phase projects already, and to focus on that. We keep it as our tool in our toolbox. We are going to look for value and create value and bring it into our hubs. But you know, specifically, I don't have any comments. But I think, you know, again, zoom out, it's no doubt that, you know, the value creation on NCS is significant, and it's a good place to be for a pure-play oil and gas company as always, as such. I'm sure others are seeing the same. Okay. Thanks, Torger. I am gonna take a cheeky second, if you don't mind. I just wondered if you could, Stefano, give us a little bit of color in terms of expectations for cash tax in the second half of 2022 and whether we have any pointers for second quarter, third quarter production for the company, you know, in terms of you flagged a couple of shutdowns. Should we expect 2Q to be a little below 1Q there? Thanks. Yeah. In terms of cash tax, let me say that we envisaged to pay roughly $530 million in first half. That is assuming USD/NOK of 8.5. This will be paid in Q1 as we showed in the presentation. Roughly, out of this NOK 4.5 billion, 1.5 has been paid in Q1, and NOK 3 billion, so roughly $350 million will be paid in Q2. There is, in addition, a remaining tax payment in Q4 related to 2021, which we estimate to be in the range of NOK 2.1 billion. Yeah. Of course, as you know, in second half, we will also have 50% of taxes related to 2022 results, but that will be estimated in the coming weeks. Yeah. If I might then, Stefano, when it comes to the turnaround activities. You know, we have turnaround activities planned for Q2 and Q3. We are expecting, you know, an impact in the, I think it's in Q2, around 13,000 bbl on average, and then it's around 5,000 in Q3. So just to give our kind of info on that side. Okay. Brilliant. Thank you very much, guys. Well done on giving the results. Yeah. Thanks a lot. Thank you, James. We'll be taking our final question today from Matt Smith of Bank of America Securities. Matt, please go ahead. Good morning, and thanks very much. Just squeezing one last question in then. That was, please, if there's any update on progress or your expectations on the bridge-to-bond facility, please. That question, Stefano, that's yours. Please. Yes. As you know, Vår Energi is fully financed through the existing bank facilities that have been provided by the group of 12 banks, international banks. We have in place a bridge to bond of $3 billion. The maturity of this is in 2023. Let me say that we remain confident that we will be able to access the bond market at competitive terms during this timeframe. We are actually prepared to access that capital market when the timing is right. Understood. Okay. Thanks very much, and congratulations again on the quarter. Thanks. Thanks a lot. Thank you, Matt. As that was our final question, I'd like to thank everybody for attending today, and I wish you all a great rest of your day. Thank you. You may now disconnect.