Okay. Thank you very much, Jennifer. And ladies and gentlemen, welcome to Shell’s First Quarter Results Call for 2020. Thank you so much for joining us from wherever you are around the world. Before I begin, can I just you and your families and your friends and your colleagues are safe and well and that you are taking good care through these extraordinary times. I will, of course, as usual, start by highlighting the famous statement that you can now see on your screens. But during these highly uncertain times and highly uncertain outlook that we are facing, can I also stress that it’s even more important to read and understand what we are saying in this note. So please take time to read it, and you have a moment after this call. In an environment like this, a strong company like Shell needs to stay resilient. It’s to stay prudent and act responsibly, and it needs to take decisive action to preserve the long-term health of the company, which is crucial staff, customers, the communities we operate in, debt holders, and of course, our shareholders. We are well positioned to maintain the resilience and the prospects and the performance of this company the main focusing on three key areas. The first one is care, care for each other, for our colleagues, for our customers, for our communities. We must put health and safety first. The second is continuity. We must continue to serve our customers in every way we can, possible, we must aim to provide them certainty. We need to ensure that our operations are delivering products that customers need to keep functioning. And finally, we are focusing on protecting the future health of our business. We must always generate and preserve cash, especially during these challenging times.…

Thank you, Ben and to everyone, for joining the call today. I hope you and your families are all safe and well. Let me start with outlining Shell’s financial performance in Q1. Our Q1 2020 cash flow from operations, excluding working capital movements was $7.4 billion. Under the current cost of supplies methodology, the cost of sales is adjusted to reflect the current cost of supply, the sales of our products. This is referred to as a cost of sales adjustments or COSA. COSA eliminates inventory holding gains, when prices increase or losses, when prices decrease that are included in the underlining FIFO margin due to a price fluctuation. When prices fall, CC earnings are higher than FIFO earnings, which does not translate into higher CFO, excluding working capital. First quarter of 2020, Brent was at an average price of $50 per barrel and our organic free cash flow was $10.3 billion. Earnings amounted to $2.9 billion and our return on average capital employed on a CCS earnings basis, excluding identified items 6.1%. At the end of Q1 2020, our gearing was reduced to 28.9%. Our cash capital expenditure in the quarter was $5 billion, which is in line with our path towards an expected $20 billion total spend for 2020. Now let us look at our Q1 earnings in more detail. Shell had a strong first quarter from an operational and cash flow standpoint, but the COVID-19 impacts not being significant until March. This supported our first quarter earnings, which on the CCS basis and excluding identified items were $2.9 billion. This decrease relative to Q1 2019 was due to lower prices and margin, while the COVID-19 pandemic started to impact global demand during the latter half of Q1. In our integrated gas business, total production was 12% higher…

Thanks, Jessica. Certainly, this combination of extraordinary events has somewhat impacted our Q1 earnings. Give the current dynamic, we expect this to impact much more severely through the second quarter. But we’re in the strong position to this crisis by demonstrating resilience. By responding thoughtfully and swiftly, we will get through this together. Please stay safe, stay healthy, look after each other. Thank you very much. Let’s now go for questions. And as usual, can we please have one or two each so that everyone has the opportunity actually ask a question. Jennifer, who can we give the first question to?

Thank you. We will now begin the question-and-answer session. [Operator Instructions] And we’ll go first to Oswald Clint with Bernstein.

Thank you very much. Thank you both for getting on the call today. Obvious one around the dividend, please, Ben, if I could. I remember back in 2016, I asked you around your 10% dividend yield and you said take advantage of it when the gearing levels were actually pretty similar. So I just want to get a little bit more color here on what’s really changed here. It feels like a complete 180 from your scenario team or something that’s happened here. And really, if you could outline what scenario you’re actually running to get to $0.16 a share being sustainable from here. And perhaps realistically, do you really see a path for dividend per share growth from this level? That’s the first one. And then, secondly, on the retail marketing business. You spoke around it being quite resilient, which is certainly impressive. But I just wonder if you could talk around the margin management side of that, the changed product offerings which helped offset the demand reduction. But primarily, do you think any of that can still show up in the second quarter when you’re painting a pretty bleak picture for product demand? Thank you.

Thank you very much, Oswald. And yes, on your first question, actually, both questions are really good. Of course, a lot has changed since then, and the dividend yield was high then. It was high also, of course, yesterday. It – what has changed in terms of how we look at the future. I don’t have to tell you, of course, what has changed in the world. I think what has changed is that, in our mind, is we are looking at two real big problems. One is that, of course, everything has become much more challenging, macro-wise, and we know it’s going to get worse before it gets better. The biggest challenge I find Oswald is this crisis of uncertainty that we have. That’s what we are in. And let’s be very clear, it’s not just the oil price. That’s just one aspect. What will happen to demand? Demand will come down massively in – well, first of all, in March, but also this quarter. If you look at the IEA reports, the reduction in demand that has been predicted just for April is going to be 29 million barrels a day, and we don’t know what May will bring. So there’s a lot of challenge coming from that. The margins in downstream, refining margins, who knows where they will go? Who knows actually where the viability of our assets will go. In many cases, we have seen people having to shut in simply because they do not have the logistics, inbound or outbound, to continue to operate. So it is that level of uncertainty that you cannot model with scenarios. It, of course, we can work our way through it on a day-by-day basis in our trading teams and supply teams and logistics teams and our operational people…

Yes. So we’ll go next to Thomas Adolff with Credit Suisse.

Hi, good afternoon, Ben and Jessica. Two questions from me as well, please. And the first one, going back to the dividend. Is it fair to assume even prior to COVID-19 that you internally debated a potential dividend cut? We know that you kind of wanted to get down to $12 billion over time, and there was no money for buybacks. And obviously, with this uncertainty, we have today the cut ended up being bigger. And once that uncertainty is gone, whenever that is, is that $12 billion still a valid number? Or will buybacks play a bigger role going forward and you prefer to keep the fixed distribution lower? And then, secondly, now with the dividend being reset and obviously, you talked about wanting to strengthen your balance sheet. But does that also provide you a bit more flexibility and be more opportunistic on the M&A front? Thank you.

Okay. I’ll take the first one. Jessica, if you take the next one. It’s very good questions, Thomas. And let me be very clear. Of course, after the BG combination, we were looking at an annual dividend bill of $16 billion. That’s a lot of money. And the view indeed was, could we bring that back to something more like 12, in an orderly fashion, i.e., by buying back shares, namely the shares that we had to issue on – in the lead in and on the back of the BG acquisition and also, the shares associated with the BG acquisition. So that’s why we started with the $25 billion buyback program. And of course, the view was to continue that over time to continuously reduce the headline dividend, but at the same time, of course, being able to then grow the dividend per share. And if you look at the numbers at MD ‘17, I’m sure you all remember, we said we think by 2020, we will be producing somewhere between $28 million and $33 billion of organic free cash flow. I can tell you one thing. We won’t be doing anywhere near 28 or higher organic free cash flow in 2020 now. But if you look back at the last 12 months, we have actually done $27 million. And that was at an average oil price of 61 brent, and that was, of course, with downstream market conditions that were below average. So if you were just to correct for brent and bring it to 65%, which was the reference price on which we made a premise, we would have made in the last 12 months, $29.5 billion of organic free cash flow, throw in another $5 billion to $6 billion of divestments and in the sort of…

Thomas, with respect to your second question and does the reset provide more flexibility. I believe all the actions we’re taking are in the spirit of providing more flexibility to the company, more resilience to the company. And that from a CapEx reduction perspective, the OpEx reduction and the move we’ve made today on the dividend are all in that spirit, is to ensure we’ve got, first of all, the financial resilience to manage the high degree of uncertainty that Ben has spoken to and provide flexibility depending on how things work out and how things unfold in terms of the pace and duration of the pending recession. M&A activity is not a priority for the moment. And just to emphasize, which perhaps does not need to – not necessarily need to be said to everyone, but just the scale and scope of the issues at play that are affecting the company today cannot be overstated. So the health issues that are affecting the world globally, the economic implications of that – of COVID-19, the knock-on effects from a commodity price perspective has some of the most dramatic impacts on the company in recent history. That’s affecting us today and we’re uncertain about how that will affect us for the coming years. But we’re expecting more of a U to L shaped recovery, certainly a V or short and sharp recovery. With all of that in mind, our priority is really about how do we ensure we have the financial resilience and the flexibility manage and be on the front foot of all of the challenges that the company is facing. And that’s what all of these actions are meant to serve.

Thanks Jessica. Jennifer, who would be next in line?

Yes, we’ll go next to Lydia Rainforth with Barclays.

Ben, Jessica, thank you both the Shell for the support for their communities over the crisis. Questions, if I could. The first one, just to doublecheck, in terms of the dividend decision, you’re talking about it being uncertainty. Was it linked in any way to the announcement of accelerating the low carbon ambitions from net zero from a couple of weeks ago? And then the second question is, given the uncertainty and the outlook that you painted, does that change how you allocate capital between the businesses? So effectively, should we think about seeing a step-up in the energy transition spending versus the Upstream and the Downstream from it? Thanks.

Thanks, Lydia. Really good questions, and I’m sure on the minds of many. So is the dividend discussion in any way, shape or form related to the net zero emissions that we made. Well, yes and no. We didn’t of course reset the dividend, because we had to. For these reasons, we reset the dividend because we face a period of unprecedented uncertainty and we have to have the company in a resilient mode financially be through that period. But of course, at the same time we also want to have resiliency and the flexibility to still flex our strategic muscle, so to speak, in areas where we have to. Had we not reset a dividend and had we resorted to just more CapEx and OpEx cuts to somehow keep this going and continue to borrow money to do so, which I think would be highly responsible that we would have had zero room to maneuver until we were at the brink and then we had to maneuver nevertheless. So yes, right now, we can be a little bit more thoughtful in how we are going to deal with capital going forward. So yes, indeed, we can protect some investments that we think are important. That’s not just a new energy investments, but indeed, we will of course look at where our investments much more positioning us for the future than what’s I have been doing in the past. But just give you an idea, the $5 billion the first cut that we made, about 45% of that saving if you like or reduction will come from upstream and that’s predominantly conventional oil and gas and Shales. About 30% will come from downstream, and quarter will come from integrated gas and new energy. So you can see a little bit where we are placing the priorities. But make no mistake, we will scrutinize every investment, including new energy investments, with the same vigor as we would scrutinize any other investment, also the ones in, say, deepwater or even refining. On CapEx allocation, Jessica?

Then I think you’ve actually given a good indication of the direction of travel. So Ben just laid out, the nature of the capital choices that we’re making in 2020. And yes, we want to be in line with our strategy and minimize the impact from a value perspective and also be sensitive to our desire to thrive through the energy transition, have all of those elements at play. There’s also just tactical and practical decisions, things where for logistics reasons or partner reasons, it’s more appropriate to defer that spend that’s also coming into play. And so these other criteria that have also been used that I think are more tactical in nature. So I wouldn’t overread it in terms of the allocation of capital in 2020. There’s some major strategic change happening with the choices being made. That being said, we are looking to ensure that we can meet our ambitions from a net zero emission standpoint and position our portfolio for the energy transition. And we’re ensuring by the choices that we’re making to have the capital and flexibility to do so.

Thanks very much. Jennifer, who’s next?

Yes, we’ll go next to Christyan Malek with JPMorgan.

Thank you, Ben and Jessica. And first of all, I hope you and your families are also keeping safe and the management team stay healthy through this trying period for the all markets. Against this challenging backdrop, to be the first of the super majors to take an historic decision on the dividend kind of been easy and admire the courage wisdom to do so of your peers. But maybe just take a break from the dividend as the first question. How do you model the industry supplier response to the current oil price? And what are the positive qualities that applies to the future oil outlook as the world transitions to sort of new demands supply equilibrium? My second question is with regards to dividend cut. Clearly, we had more discretionary cash flow around $10 billion from next year. And I appreciate it’s asked already, but I’m not entirely clear what you plan to do with the money. Is it all to reduce debt? Or is there some sort of trade-off we should be aware of? And finally, just to squeeze another question, I’m sorry. You’ve taken a more cautionary stance for long-term oil price assumption. Do you still believe the BG deal makes sense industrially? And the reason I ask is that I’d like to better understand which projects in both the BG pipeline and Shell are actually competitive in a lower oil deck, given your relatively high cost of capital and elevated share count, then you have said you’ll scrutinize projects even more heavily. But if I can be as bold to ask, what projects are actually profitable with $30 barrel.

Thanks very much, Christyan. I think I take the BG one and Jessica can take the other two, Christyan. Yes, I think the BG deal, if I look back on it, what it – I think it was the right call to make that at the time. It has changed the company quite considerably. On the back of that transaction, we have become the most successful deepwater and integrated gas player in the world and of the IOC, also the largest. And I think these are our two businesses at the moment that we are tremendously benefiting from integrated gas, where you’ve seen the resilience in this quarter. And I think there will be continued prospect for integrated gas much more so than perhaps other business. The deepwater business, you will also have seen that the CapEx savings that we take this year are not coming from deepwater. It’s not [ring fenced] [ph], by the way, but it is a very resilient part of the portfolio. So yes, I think the deal at the time did the right thing in high-grading the portfolio. Of course, bear in mind, we also divested $30 billion worth of assets. And of course, it really changed the dynamic in the company with significant amount of CapEx reduction, almost 50%, a $10 billion cost takeout, very significant dynamic in the company as a result of it. So yes, knowing what we know now, of course, yes, I would still do the same. But of course, many things, you would also do different had you know exactly that in February 2020 we would all be hit by a crisis like this. So there is, in that sense, no regrets. I do think the company is stronger as a result of it. Your other questions, let me go to Jessica first and then see whether there’s a few points I would like to add to it.

Thank you, Christyan for your questions. On the supply side, we have a team in Shell that stays very close to all the dynamics from a demand and supply perspective and informs our thinking and shapes our thinking, particularly at moments like this. I think one of the key words coming out of this quarter is uncertainty and the range of outcomes that can happen from a demand perspective, how effective will the various stimulus measures that the countries are taking have an impact, how quickly once people lockdown has been stopped in each of the countries will demand pick up. A huge range of outcomes are possible, similarly on the supply side, will be full compliance with the OPEC cuts are not, what will be the logistics implications for supply around the world, whether that be from a demand – downstream perspective or upstream perspective. All of these things we have a team being very close to and providing insight and analysis to inform our thinking. What I would say is that there’s a whole range of outcomes that are possible and we’re considering all of those ranges, when we’re making the very important decisions that we’ve made over the course of the quarter. On the dividend cut and the intent of the additional cash that will be available with the lower dividend level. First and foremost, this decision is driven by the current circumstances that we’re operating in, which is one of a very negative impact on our financial outlook for 2020 and a high degree of uncertainty going forward. And so it starts from a position of how do we ensure financial resilience and strength to manage risk and that’s really the starting point. Beyond that, we still have the main objectives for the company, which are to operate with a strong balance sheet to operate within AA credit metrics to ensure we have the financial capability to invest and create value today and going forward and to ensure the longevity of our cash flows, so that’s going to require us to continue to invest at CapEx to invest in OpEx to grow our businesses and to reshape our businesses for the energy transition. If we do both of these things well, we will then generate sufficient wealth to increase dividend per share execute share buybacks over time. And we need to achieve all three of those things. So if conditions improve, we will continue to balance all three of those objectives. We need to make sure we have a strong balance sheet. We need to make sure we’re making the right investments for the company and ultimately we need to provide compelling leading returns for our shareholders.

Thanks, Jessica. Thanks, Christyan. Jennifer, can I have the next question please?

Yes. We’ll go next to Biraj Borkhataria with Royal Bank of Canada.

Hi, thanks for taking my questions. Two questions, please. So you both mentioned resilience several times in the call. So I just want to get a sense of how you expect to manage the balance sheet going forward? One of the reasons you have to make this decision today is that gearing was already above your guided range. And actually, you’re obviously buying back shares up in the quarter anyway and rather than paying down debt. So when you think about that 15% to 25% gearing range you put out, is that sufficiently wide enough? And why shouldn’t we see through-cycle gearing, which is maybe lower kind of 5% to 10% range to protect against commodity price volatility? And then the second question is kind of related to that. But in the short term, that $10 billion difference in the dividend is cash you don’t have. But at some point, there will be cash available to pay down debt. I guess part of the attraction of these large dividends is it restricts your ability to invest and it’s a form of capital discipline. So maybe this could be seen as the early stages of rebuilding awards. So how can – I guess the question is how can investors be confident you’ll be disciplined around that medium-term CapEx framework? And any opportunities that might come up? Thanks.

Thanks, Biraj. I’ll take the second one, and Jessica will talk to the first one. I think you spotted it correctly. The $10 billion savings are not savings. It’s cash we didn’t have in the first place because of the situation we are facing at the moment. But yes, over time, hopefully, and that’s also what we expect, we just don’t know exactly when and how the situation will recover. And then we will hope to be in a position to have more choices than what we have at this point in time. I think it – the way I would like to look at it is that we – I hope, to some extent, we have reearned a little bit of a reputation for being disciplined for having done the right things. We have clearly set ourselves a capital range in the last years, and we have been very clear and disciplined stay at the bottom end of the range, and now we are going right back to the level that we think is sort of the minimum viable CapEx level. And I – yes, I – what I would like to think is that with time, it will become acceptable that we manage the company with sort of the wisdom and the acceptance that the wisdom is there to make disciplined and the right choices. I understand, of course, that if you have a very significant outgoing, there is immediately a limited room to maneuver. But I wouldn’t want to make that the main reason for having a high payout ratio. Going forward, I think we have to tell you the story where we see the company go, how we’re going to allocate, what we’re going to do in terms of strategic choices, what it means for shareholder returns and growth in it, et cetera. Today is not a day to do that. Today is a day where we have to focus, indeed, let me say it again, on financial resilience because that is what it will see us through the months, quarters, maybe years. Jessica?

In terms of the gearing levels and what’s appropriate for the company, I would like for the CapEx choices we’ve made, the OpEx choices that we’ve made and the Board’s decision on the dividend all reflect and demonstrate our commitment to ensuring a strong balance sheet and a resilient financial position for the company. The 15% to 25%, we remain committed to. And yes, we’re above that number. And again, that’s part of what’s driving the choices that are being made over the last months. There will be fluctuations up and down. We benefited from some working capital release this quarter that allowed us to reduce our gearing in the quarter. That can change next quarter. And as we’ve indicated, we expect the second quarter to probably be worse operating conditions, business conditions than we saw in the first quarter. Therefore, there would be an impact on our cash flow. So this will go up and down over the quarters. We take a multiyear view when making all of these decisions and thinking about the right financial framework for the group. And we’ll be working back towards the AA credit metrics and within the 15% to 25% range over the coming years. And that’s what the choices reflect is that commitment. And we believe it’s the right one for our company.

Thank you very much. Jennifer, who’s next?

We’ll go next to Martijn Rats with Morgan Stanley.

Yes. Hi, good afternoon. I had two questions as well. In the past, it’s often been difficult not to grow the dividend when CapEx increase. And this is a comment not just over the last few years, but just over the last decade. Quite often, we’ve seen CapEx and dividends go up sort of hand-in-hand. And I think that’s often also been a mechanism by which the dividend then ended up this very big number of $15 billion, $16 billion at some point. Now at the moment, the CapEx is quite low and now the dividend is also quite low. And I was wondering if you would expect from here on if the immediacy of the crisis is sort of over, are we going to see once again sort of when CapEx goes up that the dividend also goes up, that these two will go up sort of hand-in-hand? Or would you still say looking at the medium term, and then I’ll hang on a second, it is more important to get back to a level of investment for the company that is somewhat higher and that doesn’t necessarily trigger this old sort of expectation that many of us might have based on history that when CapEx goes up, also the dividend goes up. I was hoping you could talk a little bit about that. And secondly, I wanted to ask Jessica. You made some comments about the credit rating and the commitment to AA. I wanted to ask if you could give us an estimate of sort of the headroom that exists in terms of the incremental net debt that may or may not exist within the scope of that target credit rating.

Great, Martijn. Thanks very much, two good questions. Let me get going on the first one. Jessica will definitely take the second one, as you suggested, and then perhaps she will also add a few things to my story on the dividend growth. I think the dividend growth, of course, we can take all sorts of views on what happened in the past. And indeed, you will probably see that over the first decade in this century and maybe with the second decade, they have grown in tandem. I don’t think that correlation is necessarily causal and it also needs to be said that – sorry, I lost my train of thought. Let me step back. Yes, that indeed, the dividend growth that we had in the first part of this century at sort of 6% compounded on a year-by-year basis was indeed a very aggressive growth in dividend. Our policy at the time and the policy in principle hasn’t changed. We will be looking at all sorts of things, of course. But in principle, we still have a progressive dividend that is lower, but still, it is a meaningful dividend and it’s an affordable dividend that then subsequently, we aim to grow with the capacity that we have for growing the dividend. And the capacity that we have for growing dividend, of course, needs to come from the value creation in the company. And the value creation in the company needs to come from continued investment, particularly in a depleting business that we have as a business model. So while it is right that indeed dividend growth and CapEx growth, if you like, occur, it doesn’t necessarily have to be a causal relationship. What I can see happen is that if we have more room to maneuver, if we…

Yes. On the credit rating, a couple of points to make. The credit rating is assessed over a multiyear period. So it’s not just today. It’s not just this quarter. The credit rating agency perspective, also in terms of how we think about our own balance sheet and how we’re managing our own financial resilience, that’s important to keep in mind. So it’s not so much of what the net debt is today, but how we’re managing the company through this period of time and our expectation of what net debt will be in one, two, three years’ time, and particularly as the macro improves. Also important to point out, there’s not one great, one perfect metric. It’s a combination of gearing, net debt, FFO to net debt, all of those things need to be taken into consideration, both from a balance sheet strength perspective as well as from a credit rating perspective. What I would say in terms of headroom to answer your question more directly. As the macro improves, we will need to have our net debt go down. So all other things being equal in terms of ensuring that we deliver the metrics that are consistent with AA and have the balance sheet that we want to have to run the company, as the macro improves, I would expect our net debt to go down.

Thanks very much. Jennifer, who is next in the queue?

We’ll go next to Jon Rigby with UBS.

Yes, thank you. Hi, Ben. Hi, Jessica. Two questions. One on the dividend again, I’m afraid. I mean you said a number of times or you used a number of times the word uncertainty. I think everybody would agree with that. There’s virtually no visibility as we sit here right today. But you could argue, I think, pretty persuasively that there’ll be a lot more visibility in three months’ time at the end of July. Wouldn’t 2Q, for the sake of an additional $2 billion paid to shareholders, be a better time to make a considered choice around what you do with the dividend and indeed, what level you cut the dividend to? I haven’t really heard a strong contextualization for the 66% cut. And then the second part to that is, I think you did at some point reference the fact that your gut feel or your observation was that oil prices will be lower than you expected for the medium term. So maybe this is a question for Jessica. But if indeed that is the case, why have you only taken impairments on the balance sheet for a weak 2020 and left the long term unchanged? Thanks.

Thanks, Jon. Very good questions both. Yes. The first one, indeed, uncertainty, and I call it the crisis of uncertainty. I think I would have to disagree with you, Jon. And normally, I don’t do that. I’m not so sure whether by Q2 we will have more visibility. This is a very unusual type of dislocation that we are seeing. It’s not just, well, the oil price is down because we have a supply/demand mismatch and it will correct itself. Here, we are looking not just at that. We are looking at a major demand destruction that we don’t even know that will come back. So the oil price may come back. But if the volumes are significantly lower, we still have a major dislocation, of course, in our own cash wheel. We don’t know where margins will go. We don’t know whether there is a major recession coming from here that will permanently or for a long time also impact on consumer behavior that we are dependent on in our downstream businesses. And then as I said, at this stage, the relatively disorderly way in which whole systems starts to shut down is also going to affect us in ways that are very hard to predict. And then, of course, we don’t know what will happen with the pandemic itself. So I think it is highly unlikely that by June, July, we will be looking at something that is completely cleared up and we can understand what’s going to happen next. So when you are faced with a situation like that, believe me, we have been looking at it since mid-February on an almost daily basis, what’s happening? Can we understand this, et cetera. Have had a permanent crisis team on this since we saw this come out. What…

Jon, a very fair question in terms of connecting the dots on some of the language I’ve used and what we did in the first quarter. We provide a little bit of context starting in February, as things started to unfold from a COVID perspective and then the economic implications and then the gyrations we saw in the commodity markets as well. We have been looking at our prices and our financial outlook for the entire group pretty much on a weekly basis. And over the six to eight-week period and to the end of the quarter, we gradually shifted down the entire kind of range of outcomes we expected in terms of our low and our high case scenario. We had the most confidence in 2020. I say that with humility, and felt like we needed to make some choices around 2020, and that had implications for the balance sheet. We are, of course, evaluating our price outlook for 2021 and 2022. We’re trying to do this in a reasonably calm fashion, not jump to conclusions and follow our standard processes. Otherwise, we’re at risk of resetting our balance sheet or marking to market our balance sheet every week or every month, and we’re trying not to do that, but we’re providing visibility on the choices that we’ve made. And in the second quarter, we’ll be looking to update our longer-term prices.

Thank you very much. Folks, I see that we have quite a few questions left. And in principle, only 12 more minutes to go. So what I’d suggest is that we just carry on. We go to at least 15, 15. So for those of you who are still in the queue, keep on putting your questions in, we will go a little bit longer. But then can we have the next question, please.

We’ll go next to Irene Himona with Societe Generale.

Thank you very much for taking my questions. I had two. First, Ben, on the dividend, I’m afraid. Your first dividend cut for many, many decades, a very deep cut. You made the link between lowering the dividend and your new zero emissions target by 2050 by saying that in light of the uncertainty, you need to preserve financial resilience to be able to invest to grow these new lower carbon businesses. My question is, isn’t the dividend reset perhaps also a reflection or a recognition that these new lower carbon businesses, especially renewable power are, in fact, lower cash generation than conventional oil and gas portfolio? My second question for Jessica. Looking at your countermeasures on that slide, Jessica, can you help us understand how all those reduce your cash neutral oil price. By that, I mean, the price that covers both CapEx and dividend. So what was it full? And how do the countermeasures reduce it now? Thank you.

Thanks very much, Irene. Very good questions, and it allows me also an opportunity to clarify a few things. Yes, I did indeed say, you’re correct to point out that its lowering the dividend, we do have more room to maneuver, and that allows us to invest in growth in the future. It allows us to preserve also the value of the business that we have. I think where I would probably defer is to say, that – first of all, we did not lower the dividend, of course, to be able to continue to invest in power. We had to lower the dividend because of the uncertainty. And of course, you have to bear in mind that we will invest in the energy transition, whether that’s power or hydrogen or bio, or investing in different ways of interacting with our customers with a view that we have to have compelling returns. And quite often, I think the assumption that investing in the businesses of the future is bound to be a lower returning and a lower cash-generating business than investing in, say, deepwater, it’s just not entirely correct. If you look at the full cycle cost of these businesses, many of our businesses in the upstream side, indeed, do have the benefit of more compelling economics at the time of investment decision. But I also come with a lot of associated costs, pre-investment decision, sun cost, dry holes, disappointments geologically and everything else that these other businesses do not have. So it is – so in my mind, the jury is still out. And in my mind, therefore, we should aim to build a business that is not only the business of the future in terms of societal needs, is also a business that continuously makes us an attractive investment proposition because of the cash-generating and return properties that these businesses bring to us. Jessica?

Good. And I just want to make one comment on the last question as well somewhat quickly. Just to keep in mind that the investments we’re making in the energy transition are not just in power, that we are making important investments and building out new business models across Shell driving the energy transition. So our global commercial business, our retail business, our Chemicals business, our integrated gas business are all part of the energy transition. And a lot of those have very compelling returns, some of them higher than our Upstream returns. So just to keep that in mind, it’s not just a power story for us. In terms of the countermeasures, indeed, we’re looking to reduce our cash cost by some $8 billion to $9 billion over the next 12 months, which is CapEx and Opex. We’re also looking to structurally reduce working capital. Across the group, that’s more from an operational perspective. We do use working capital for our trading business. But we think there’s some operational opportunities for us to be leaner on the – on inventory and working capital more generally. And of course, there’s the Board’s decision to reduce the dividend, which will remove $10 billion of outlays in terms of cash going forward. So all of that in total some $20 billion impact on kind of the demand on cash from the company. My sense was that you were looking for a breakeven price number for me to provide. We don’t think in those terms. We’ve got the breadth of our business, the scale of our business does not suit kind of a breakeven price number way of thinking from our perspective. The number of assumptions that need to be made across the commodities, across the downstream margins doesn’t suit itself well to thinking of just one breakeven price. But structurally, you can see – and perhaps on the basis of perhaps calculation you think is more fit. I think it’s transparent, the amount of cash that we’re going to remove from the demands on the company and overall then should make us kind of balance out at a lower point. And as said multiple times, give us more financial resilience and flexibility going forward.

Thanks, Jessica. Thanks, Irene. Jennifer, who is next in line?

Yes. We’ll go next to Ryan Todd with Simmons Energy.

Great, thanks. Maybe I’ll give you a break on the dividend for a little bit and ask a couple of portfolio-related questions. On the production side, I appreciate the guidance on the second quarter, even with the range. Can you maybe give any color around regional impacts on reduced volume outlook and whether there’s a risk that – is there any risk that some of those volumes don’t return on the back end of this? And on the LNG side, can you maybe frame up the decision to opt out of the Port Arthur LNG project within your maintained desire to – for global leadership and market share in LNG. Is that driven mostly by a need to shed capital near-term, just relative project economics and maybe any commentary on relative competitiveness on U.S. LNG volumes within that portfolio?

Yes. Thanks very much, Ryan. Let me take the second one, and Jessica can take the first one. I’m not sure I heard it correctly. I heard you talk about the Port Arthur LNG project. It was the Lake Charles one, which is relatively closely related to it, of course, in terms of geographical distance. So indeed, we haven’t gone ahead with Lake Charles, which was a project that we have been working on for some time, simply because it does not fit in our capital program going forward. It – we felt it was impossible to delay, preserve it or do something else with it. So indeed, we have decided not to go ahead with it. And that’s one example, indeed, of how we get to a lower capital outlay for this year and, of course, for years to come. Jessica, production and the regional impacts.

So in the QRA, there is an outlook provided on the second quarter. I would draw everyone’s attention to first paragraph, which again, just highlights the degree of uncertainty that we’re working with even with respect to the next quarter. That’s why there’s a significant range. We do expect the production levels to go down in the second quarter, and that is a combination of effects. We are an equity participant in a number of assets around the world that are within OPEC plus plus countries, and we have some expectation that the production levels may be impacted association with some of the commitments have been made in terms of reduction within the OPEC family. In addition to that, there are shut-ins that we’re contemplating for various reasons. Some of it’s from logistic constraint reasons, some of its supply chain reasons. And in addition to that, there’s some choices being made for economic reasons as well. Roughly speaking, 40% of it is OPEC related, 40% of it is shut-in related and 20% of it is economics related across the portfolio. All of this is with a certain degree of uncertainty. It’s across the portfolio. So it’s really around the world. It’s not one geography that’s being impacted. We don’t expect any of this to be permanent on balance. There may be one or two wells or assets where perhaps we’re end of field life anyway, and that might make more economic sense to go ahead and leave those permanently shut in, but the expectation is on balance. This won’t be a permanent reduction for us.

Thank you very much. Jennifer, can I have the next question, please?

Yes. We’ll go next to Lucas Herrmann with Exane.

Gentlemen – Ben and Jessica, thanks very much for your time. A few remaining. Can I just start by going back to the climate ambitions and the 20% to 30% and what it really implies to the portfolio? I mean, getting to a 20% reduction in the carbon associates or the carbon footprint associated with the product seem dramatic enough, getting to 30% and within 15 years, to me, implies a very significant shift in the allocation of capital towards the business and indeed, the way you treat the Upstream business and invest in it. But I just wonder whether you can expand some degree on thoughts and direction there. I wonder, can you make any comment on what your thoughts are around CapEx as we go into 2021? My assumption at the moment would clearly be that you’d expect no increase whatsoever. I’m just cognizant of the guidance given a very long nine months ago, which clearly was a much higher spend. So just help us thinking a little bit about things as we move forward. I’ll leave it there. Finally, Jessica divestments. I presume that given market conditions, the expectation is not what you’ll realize in excess of the $5 billion target this year, and that number should be reworked?

Yes. Thanks very much, Lucas. And yes, indeed, you’re absolutely right, upping the ambition of a 20% reduction in net carbon footprint of the energy products that we sell by 2035 from 20% to 30% is a very significant step. And – but as a matter of fact, if you look at all the curves that you can dream of, that the IPCC calculates as curves that the world can follow to get to 1.5 degree C, it is probably the upper limit of what society needs to do, a reduction with only 30% get to this 1.5-degree outcome. It will be massive. But one important thing, and apologies if I’m stating the obvious, Lucas, but I feel I have to say it again. It is the energy intensity of the products that we sell. So it’s not the energy intensity of the resources that we develop. So indeed, the product mix that we sell and of course, you have to bear in mind that we sell 6 times as much oil products, if you like, then we produce oil out of the ground. So the mix of the products that we sell will have to have a 30% lower carbon intensity. So that is not just to be achieved by investing in lower carbon energy production. It is actually changing the mix. Some of it indeed will then mean that we also have to invest in producing these lower carbon energy products. But of course, we can also do that partly by just being a lot more critical how much bang we get for our carbon back. So there are many – there’s a long tail of products in our portfolio. But actually, the cash flow you get per tonne of carbon that you basically sell is actually quite modest. So it is also, at the beginning, not just a matter of continuously investing more in developing renewable resources, it’s also high-grading the carbon credentials of the product we are selling. And with a mix of these two, we will get to a lower carbon intensity. And ultimately, we have to get out of current intensity altogether. We have to get to net zero and doing that together with our customers. But you’re absolutely right, if you say from 20% to 30%, even if it’s not the asset metric, but a product metric, still a major achievement. But we are on track to achieve it if you can extrapolate very much from the first few years. So at this point in time, we have reduced the net carbon footprint of our products by about 1.2%, 1.3%. So you see we are getting on to the curve of reduction. Let me leave it at that and hand over to Jessica to talk a bit about CapEx.

Thank you, Lucas, for the questions. As we look at our financial framework over a multiyear period and all of the choices that we’re making are in that context, we have identified options and the ability to materially reduce CapEx also for 2021 and 2022, depending on how the circumstances unfold. So we have that – those levers available to us, and we’ll make those choices as and when we need to and provide that guidance when appropriate. On the divestment side, indeed, the market isn’t necessarily particularly favorable at the moment. That being said, we have completed just over $2 billion in divestments in the first quarter. So we’re almost halfway there to the $5 billion for this year. We do have assets that still are attracting attention from the market, and we have some optimism. But it’s – we’re not necessarily relying on it happen either. So it is possible for us to achieve that this year with certain assets that are on the market and given the level of interest that we’re seeing, but we’re cautiously optimistic.

Thank you very much. Jennifer, who’s next in line?

Yes. We’ll go next to Christopher Kuplent with Bank of America.

Thank you, everyone. Hope you can hear me okay. First question, I found another way to ask around the dividend, I’m afraid. And if we look back then from when you started with a DPS increase after your CEO appointment, you’ve been using that term, progressive dividend policy, for a while. But that turned out to be the only DPS increase. And in fact, your focus was very much shifted towards buybacks. Can you tell us now what you actually mean with dividend, with progressive dividends after this cut and whether your preference that we’ve noticed in terms of the significant buybacks implemented over the last few years versus DPS growth has indeed shifted. That’s question number one. And the question number two, coming back to lower carbon. Just wanted you to spend a bit of time reflecting on the attractiveness of returns, whether you think this current crisis that we’re in has materially increased your hurdle rates investing in oil products as well as oil upstream. Thank you.

Thanks very much, Chris, and two very good questions. I will have a go at both of them and then see what Jessica wants to add. Yes. I think your history is correct. But of course, if I can put a little bit of historical context around it. Relatively early on in my tenure, this opportunity of the BG combination came up. And then, of course, the whole idea was at the time that we had to almost guarantee the dividend and right at the beginning, of course, we heard the question of Oswald about a 10% yield, that – we had that 10% yield because everybody at the time was very concerned that with the combination with BG and the low oil prices, that a lot of people thought would not recover again, and our dividend would be insecure. And at the time, indeed, I said, "No, no, $1.88 is the dividend for the period that we are looking at here." And that’s why I could say with confidence, enjoy the yield. Now of course, we know how the whole thing played out. We digested the acquisition. We then said we will deliver on a number of commitments on which we, I think, delivered all including turning off the scrip, starting the buyback, and we were very clear that once we had line of sight to complete the $25 billion of buyback, dividend per share growth would be in the offering again. And the whole idea, of course, would be that by reducing the share count, we would increasingly have room to accelerate the dividend per share growth. As I said, that was a great plan until COVID-19 came along, and that has significantly disrupted that plan. But you can see the fundamental logic in there. Yes, I buy…

Maybe just a quick point to emphasize whenever I get the opportunity to do so, that low carbon businesses exist across our portfolio. It’s not just our power business. I think there’s a tendency for people to equate the energy transition, new energy to power. And then within that box, the PPA driven generational business, which tends to be the lower return, lower risk part of the business. And just to say, we have a much more fulsome portfolio of products and services and business models that are serving the energy transition that have a breadth of return profiles in our marketing business and the potential in the Chemicals business, which can have very important contributions to the energy transition, we can have returns of 10%, 15%, 25%, provide a little bit more color.

Thanks very much, Jessica. Folks, I see that we have quite a few questions still outstanding. And in principle, 4 minutes left. So let me make another offer of extending the call to 15:30 our time, so another 20 minutes or so. I think this is a really important day. There’s many good questions going forward. I think we have to take our time to answer them. So let’s take the next question and then carry on until half past the hour.

Yes. We’ll go next to Alastair Syme with Citi.

Thanks, Ben, and thanks for extending the call. Can I come back to the – well, I agree with your observation on dividend yield is never a good valuation at all because ultimately, a dividend is a choice, as we’ve seen today. But people often could level the same criticism with free cash flow yield because CapEx is also a choice. So can I sort of ask about the appropriate level of investment? And the observation is the SEC reserve life, of course, keeps on falling. We’ve seen the disclosure from 2019 now. It’s 30% below where you bought BG. You remain well below your key peers. So how do we have confidence that the spending level that you have been running at or indeed the revised $20 billion spending is enough to grow organic free cash flow?

It’s a very good question, Alastair. And it – and of course, we have debated this on a number of occasions before, and thank you very much for also sharing my view on dividend yield as being a relatively poor approximation of valuation, a very poor tool. I would have to say, unfortunately, that I also find, as you see reserve life a poor tool, to be perfectly honest. I don’t – I understand that that’s not what you are suggesting. But the question is, indeed, at heart, which I think is a very good question, what is the minimum spend level to protect the current value in the company. And we have gone through quite a bit of an exercise, of course, last year to point out in relatively great detail for the different businesses that we have, be that Upstream, Integrated Gas or our Downstream and New Energies businesses. What sort of sustaining levels we would need to bend that, sustaining levels being the level of CapEx that you would need to have in order to sustain cash flow generation from that business. And that, in aggregate, came up with $20 billion. That’s also the number that we are following back on. Now let me be very clear that, that $20 billion that we are falling back on is not exactly the same makeup as the $20 billion that we had a sustaining business, sustaining capital in our MD 2019 presentation. Of course, to give an example, it – we spend more in Chemicals than the sustaining level simply because we’re in the middle of building a large project, which wasn’t necessarily needed if you were just to sustain the business. Likewise was sustaining the cash flow at our projected 2020 levels is at this point in time…

Yes. We’ll go next to Jason Gammel with Jefferies.

Thanks very much. And hope that you all are just safe. First question I had was on OpEx reduction. It’s obviously a very steep cut to, what was already in my mind, a pretty lean level of spending. And I know you touched on some of the areas that would account for those reductions. But do you have any concerns that you may actually be cutting into some of the core competencies of the organization and perhaps even challenging resiliency? And the second question that I had is it seems that perhaps your evaluation in the medium-term of the industry may have changed a bit or at least, certainly, the level of uncertainty around it has increased. Do you think there are any structural changes to the way that the industry will be run on the other side of the crisis? And are there any parts of the portfolio that you think could no longer be viable businesses in particular, oil, sands and shales?

Very good questions, Jason. Why don’t you start on the first one, Jessica, and then see how far you get on the second one. I’ll get my thoughts together on issue.

Thank you, Jason, for the questions. In terms of the OpEx reductions, it characterizes a bit more. They’re in all parts of our business. So everyone is stepping up to meet the demands of the moment in our Upstream, Integrated Gas, New Energies and Downstream businesses, putting more pressure on one part of the business versus another. A good portion of it has to do with repacing our growth ambitions that we had, particularly like in our marketing business, and some of that will be also logistics driven. Some of these things blend in with one other. So with the COVID-19 impact, our ability to execute some of the growth programs that we had anticipated in the year, isn’t possible. Some of that will come back. But we’re looking for the $3 billion to $4 billion to be structurally lower from 2021 going forward. We’re taking all kinds of discretionary spend is being scrutinized, essentially freezing external hiring except for exceptional circumstances. Ben spoke to some of the choices being made on salary increases and the bonus for the year, so really across the board. When it comes to core competency and capability in the organization, we’re very sensitive to that. And I spoke – I mentioned some more structural works that we’re doing. That is always front and center in our mind, that for us to have a compelling investment case and to competitively differentiate, that needs to be driven by the advantages we have and the competencies that we have in the company, and we’ve got a number of them. And we’re very sensitive to any cuts that we make, not undercutting the long-term quality of the company and our ability to differentiate going forward. We’re very sensitive to the competency question.

Okay. Thanks, Jessica. And let me talk a little bit to your second question, which I think is a really important question, Jason, which I think a lot of people are pondering, of course, at this point in time. And while I would also say, let’s see how this crisis plays out and let’s see where we will end up on the other side of it, it is indeed very likely that there will be few areas that will continue to feel pressure. Again, depending on how the disruption has been and what sort of structural issues we’ve had around logistics, et cetera, et cetera, it may well be that for a long time, we are facing an overhang on the market that may depress oil and gas prices for some time to come. So of course, those businesses then that are sitting behind challenged infrastructure, those businesses that have a high breakeven price and I also fundamentally believe those businesses that have a very high carbon footprint in terms of the Scope 1 and 2 opera emissions, maybe also Scope 3, I think those will be increasingly challenged simply because of the base economics or simply because I think a crisis like this has the potential to catalyze society into a different way of thinking much as the Paris agreement has had. So yes, things like oil sands could be a challenge. Some very high CO2, very landlocked businesses, et cetera. That, by the way, has also very much been the lens through which we have been looking at our portfolio. And if you look back at how we have divested, you will probably trace back we have made the choice to get out of high breakeven, high carbon projects, landlocked projects. But I believe – and I believe that is a choice that we are not happy with. But I think more of that may still be to come going forward. We’ll go to the next question. Jennifer, who is next in line?

Yes. We’ll go next to Roger Read with Wells Fargo.

Yes. Thank you. I guess better late than never, right. A couple of questions I’d like to follow-up on. One that hasn’t, I don’t think, really been asked. But a lot of concern here about the uncertainty going forward. You have some exposure directly in China. I was curious, since that was the first country to head into the lockdowns and obviously, the first major country to come out. What you’re seeing there in terms of recovery and how that may reflect on our expectations in Europe and North America and elsewhere? And then the second question is, okay, we’ve made the changes on CapEx, OpEx and the dividend. As you think about the balance sheet going forward, should we think about a rapid deleveraging, if possible, assuming a relatively reasonable recovery overall? Or are we looking at cash being put in different places? I mean your liquidity seems significant at this point, cash on hand. I know things will get tougher in the next couple of months. But I was just curious how you really want to address the balance sheet issues?

Thanks, Roger. Good questions. Let me take a stab at the first one, and Jessica will take the second one. Indeed, we have seen, of course, very clearly what happened in China, and we had a relatively good window on it. We actually have an office in Wuhan even and, of course, quite a significant operation in China, an absolute – much in relative terms – relative to the size of the market. And we’re learning an awful lot from our Chinese colleagues on not only how to deal with the situation, but also how to deal with going back to work and how the economy is potentially dealing with the aftermath. I think it would be a bit premature to say, "Oh, we now know exactly how the curve will flow." And therefore, we just have to replicate China across the world because, of course, if you watch the news also, the way this pandemic is playing out in different parts of the world is fundamentally different. And we don’t even know whether in China, there will be a second wave at this stage. But we have definitely learned from it. We particularly learned that the protocols on how to run operations, how to run the company, what works, what doesn’t work, even how do you deal with at a very complex sort of psychological safety issues that come with people having to be quarantined at home, sometimes even quarantine at work sites. But I think it would be too early to say we now have a template to see how the economy will recover. Jessica?

Further strengthening the balance sheet is a priority. So as the macro improves, I would expect us to see deleveraging occurring with our balance sheet. This is all very dynamic, though. As you mentioned, the second quarter, we could see further deterioration. Working capital moves can have an important impact on our cash flow and therefore, our gearing and leverage in a given quarter. Through the cycle, we are working towards solid AA credit metrics and to support that as the macro improves, we would be prioritizing deleveraging.

Thanks, Jessica. Jennifer, who is next in line, please?

Yes. We’ll go next to Jason Kenney with Santander.

Thanks for taking the question. So just I’m slightly curious about the credibility of long-term investment cases in large-cap, integrated oil with what’s happened today. I mean, you mentioned in the call in various answers that COVID-19 is significantly disrupted the plan. Your best laid plans were waylaid, all the levers are being pulled. And it leads me to question what the crisis management actually is. And I mean, you also said that $10 billion was – we simply don’t have this year. So what happens if you have an exogenous event this year? I mean, God forbid that you don’t. But what is there still left for crisis management that could be company-specific Shell this year? And secondly, on Integrated Gas, I mean, Integrated Gas has a lagged effect relative to oil. And I was wondering if you give me maybe some shape on how Integrated Gas could move over the year, probably a third quarter, fourth quarter if you rather than the second quarter, third quarter issue. But if you could just maybe talk to that, that would be great.

Very good questions, Jason. And let me take the first one, Jessica, the second. Well, I would say, of course, yes, the crisis that has hit us all is unprecedented. It has hit the sector in an unprecedented way. And if you look at the report that came out from the IEA today, for instance, the amount of demand destruction that is happening at the moment is completely unprecedented. It will go very, very deep in the coming weeks and months. And for the year, the IEA talks about a demand destruction that is 7 times the impact than the demand destruction during the financial crisis. So it is wiping out the demand of equivalent to a country like India at this point in time. So yes, indeed, we – these things hurt us significantly. And the fact that it’s both so disorderly may also hit us in the viability of some of the operations that we have in the near-term. And that is the uncertainty that we are referring to. But precisely because of that, Jason, we need to take that action early – the financial resilience of this company. And while I’m not planning for and while we don’t see any signs of weakening of, say, the operations that we have, yes, absolutely, you cannot use up your resilience so that you have none left if even forbid exogenous events come to us or a second black swan hits us. That is the reason why we believe we need to be prudent as a boat and give ourselves the room to maneuver when there is not only no visibility going forward, but we don’t even know whether there’s a massive pothole in the road coming around the corner. So precisely for that reason, we are doing the things that we do, incredibly painful though it maybe. If you talk about, is this still an investment case? Yes, we have reduced the dividend. It is significantly lower for the reasons that we had to – that we mentioned we had to do this. But it is an affordable dividend in a very wide range, macroeconomic outcomes, and it is still a meaningful dividend. So I do believe there is an investment case in our company going forward. Jessica, Integrated Gas.

For Integrated Gas, 90% of our contracts are Brent-linked, and those tend to have a lag of three to six months. So indeed, in the latter part of this year, starting in Q2 with likely going through Q3 and Q4, we would expect to see the impact of the decline in Brent prices coming through in terms of the revenue and cash flow generation that we’ll see in the Integrated Gas business. So there will be an impact throughout the rest of the year associated with the contracts and the lag to Brent that I just referenced.

Okay. Thanks, Jessica. I’m going to take one more question, and then we’re going to wrap it up. If there are any further questions left or any further questions on your mind, by all means, get to our IR team, we will deal with all the questions that are still out there. I realized this is a big day. There may still be many sort of secondary questions coming into people’s minds. But Jennifer, can I have the last question, please?

Yes. We’ll go next to Peter Low with Redburn.

Hi, thanks for taking my question. Hopefully, just one quick follow-up. On the working capital release in the quarter, and sorry if I missed this, does any of that relate to the structural reduction you’re targeting? Or is the 1Q release more temporary? And should we assume a portion of that unwind in subsequent quarters? I’m just trying to get an understanding of the shape of the cash flow as we move through this year. Thanks.

Thanks, Peter. Jessica, can you take it?

Yes. This does not include some of the work we’re doing on structurally reducing working capital. So it’s more temporary. The bulk of it is simply repricing the inventory as prices declined in the quarter. That was partially offset by payables declining less than receivables did. And so there’s also a negative impact from a payables perspective that will also reverse. But the combination of those effects are temporary and will flow through, and we would see the impact from structural reductions coming through later in the year.

Okay. Thanks very much, Jessica, and thank you all very much for your questions and for joining today and for your patience to staying half an hour longer. We will have our second quarter results on the 30th of July, and I hope to be able to speak to many of you then. But of course, I also would like you to note that we have scheduled an additional shareholder webcast with the entire Board answer any questions that you may have on the 13th of May. That is in the lead up to our AGM, which is scheduled on the 19th of May. But that one will be a virtual only format because of the COVID-19 crisis. And with that, thank you very much again. Please stay safe and stay healthy. Goodbye.