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In 2019, the Oil & Gas sector faced a difficult year, wrought with challenges like trade sanctions and a potential war with Iran. Now, major players are being asked to address the global issue of Coronavirus and how it is impacting demand.
We’ve compiled a snapshot on the widespread impact COVID-19 is having across the Oil & Gas industry. Learn which companies are communicating on Coronavirus and how they expect the virus to affect financial results.
- All eyes are on the clock as Coronavirus drives Oil & Gas demand down - companies can only speculate how long the virus will impact them.
- Business continuity is top of mind. Companies are looking at capital programs and contingency plans.
- Companies with operations in China have had to react to potential upstream impact, some shifting operations to different locations and some taking a hit.
Here are the highlights:
[Note: We are updating this post and our compilation post to reflect the most recent commentary. Last updated 3/20.]
Petroleo Brasileiro SA - Petrobas 6K (3/20)
Petrobras on sale of refineries
Rio de Janeiro, March 20, 2020 – Petróleo Brasileiro S.A. – Petrobras, following up on the releases dated November 22, 2019, December 20, 2019, and January 31, 2020, informs that, due to the prevention measures to the coronavirus, it will postpone the receipt of binding offers in the processes of divestment in downstream and its respective logistic assets, in order to ensure the effective performance of due diligence by potential buyers.
The processes include the refineries Abreu e Lima (RNEST) in Pernambuco, Landulpho Alves (RLAM) in Bahia, Presidente Getúlio Vargas (REPAR) and the Shale Industrialization Unit (SIX) in Paraná, Alberto Pasqualini (REFAP) in Rio Grande do Sul, Gabriel Passos Refinery (REGAP) in Minas Gerais, Isaac Sabbá Refinery (REMAN) in Amazonas, Lubrificantes e Derivados de Petróleo do Nordeste (LUBNOR) in Ceará.
Petrobras reinforces its commitment to the project to sell the downstream assets and their respective logistic assets, as specified in its 2020-2024 Strategic Plan.
This transaction is in line with the company’s portfolio optimization and improvement of capital allocation, aiming at creating value for our shareholders.
Imperial 8K (3/19)
Over its long history, Imperial has faced numerous periods of low global crude oil prices. In the current challenging market environment caused by the COVID-19 pandemic and commodity price decreases, the company continues to demonstrate its long-standing commitment to financial strength, capital and operating expense discipline and maximizing long-term shareholder value.
Imperial is currently in a low capital investment period; however, the company is currently reviewing spending plans in an effort to identify further efficiency opportunities.
We are naturally at a lower spending period in the cycle, with the majority of our capital being focused on maintaining safe, reliable and productive operations, said Brad Corson, chairman, president and chief executive officer of Imperial. We will continue to closely monitor and have flexibility in our plans to respond to market conditions, and rigorously examine operating costs and capital investments to maximize long term shareholder value in whatever business environment we operate.
Imperial is taking proactive and preventative measures to protect the health and safety of our workforce and do its part to limit the spread of the novel coronavirus in the community. The company is monitoring the situation closely and has implemented comprehensive plans across its operations.
We remain focused on maintaining safe and reliable operations and on the health and wellbeing of our employees and their families, business partners and local communities during this difficult time. We are committed to doing our part to reduce the impact of COVID-19 in our communities, said Corson.
ConocoPhillips Conference Transcript (3/18)
Answer – Muhammed Ghulam: So given your status as a global player in the oil markets, have you guys seen coronavirus impact demand for your customer specifically? Can you provide any insight into where you've seen the greatest impacts?
Answer – Ryan Lance: The greatest impacts on -- did you say on customers, Muhammed?
Answer – Muhammed Ghulam: Yes. Have you guys been -- have your customers been -- have there been any impact delivering crude or them being able to take the crude, given how much demand has fallen in some regions?
Answer – Ryan Lance: Okay. Thank you. I'll -- Don can handle that. He runs our commercial organization.
Answer – Don Wallette: Yes. So far, we haven't seen any impacts on the marketing side. We've got LNG sales into Japan and China, and we haven't had any force majeure notices or request to reduce deliveries yet.
Saudi Aramco Earnings Call (3/16)
I would now like to discuss our future capital spending plans, which demonstrate both our discipline and flexibility. With our strong financial framework and a disciplined CapEx governance process, we are able to successfully invest to meet the vision and strategies that Amin described earlier. We have launched dynamic CapEx review in response to prevailing market conditions. As you may remember, at the time of the IPO, we indicated that our expected 2020 organic CapEx to be in the $35 billion to $40 billion range. We have now optimized our spending plan, and I can today confirm that our 2020 organic CapEx is expected to be in the $25 billion to $30 billion range. As yet, no one knows the precise impact on economic activity and energy demand from the coronavirus outbreak, especially in the longer term, and additional efficiencies may be required. Our CapEx budget for 2021 and beyond are therefore currently under review. Furthermore, for the longer term, we are examining plans to increase our maximum sustainable capacity to 13 million barrels per day. It is worth highlighting that our low-cost structure is a great advantage in facing the current challenge. Our upstream lifting cost in 2019 was only $2.8 per BOE produced. And our upstream capital expenditures only $4.7 per BOE produced, both being the lowest in the industry. Given our low-cost, our flexibility and our low sustaining Capex, the company can sustain a low breakeven oil price.
Weatherford International PLC Earnings Call (3/16)
Now let me discuss the year ahead. The industry was challenged throughout 2019. And clearly, 2020 will be even tougher. The impact of a weakening demand environment for hydrocarbons due to the COVID-19 pandemic has been exacerbated by plants from OPEC members and their partners to introduce significant additional supply into the market. As a result, our North American customers have recently made deeper reductions to their capital spending, resulting in weaker demand for oilfield products and services.
Moreover, there are risks associated with potential operation and supply chain disruption, travel restrictions, government enacted measures that may negatively impact our ability to operate. We have developed plans to mitigate any disruptions, and we continue to closely monitor the situation and will adjust as required. Given these developments, we are retracting the guidance of the company prepared in September of 2019 for the full year 2020 and onwards.
CMS Energy Corp Form 8-K (3/16)
The Coronavirus Disease 2019 (“Covid-19”) is currently impacting countries, communities, supply chains and markets. To date, Covid-19 has not had a material impact on CMS Energy nor Consumers. However, CMS Energy and Consumers cannot predict whether Covid-19 will have a material impact on CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations.
Neste Corporation Analyst/Investor Transcript (3/12)
Well, let me then move to our focus areas in 2020. And I think it's very important to note that the demand for waste and residue has been growing. We are looking at a tightening market in 2019. So the efforts in this area are a very important driver for our competitiveness. If I first reflect a little bit on what has happened in the market, already in early 2019, we started observing a trend where the prices for both animal fats, used cooking oil, went on an increasing trend. In the second half of the year, also, for example, palm oil clearly showed an increasing trend. If I now look at what has happened in 2020, I can see that the increasing trend has clearly continued for waste and residues such as animal fats and used cooking oils. For palm oil, in the very recent history, we have seen a clear decrease, which follows from the overall situation around the macro -- the coronavirus. So in the last 2 months, we have seen actually a 25% drop for palm oil. But still, we see a tight market for animal fat and used cooking oil. So that underlines that our efforts in this area continue to be extremely important.
So what are the most important areas in 2020? First of all, it's continued organic growth in existing markets. So we continue looking at opening new terminals, making our supply chain more efficient. And examples would be, for example, China or the United States. Another area is, again, geographic expansion. We do see opportunities in areas such as South America and also Eastern Europe, where we intend to go closer to our partners. And finally, we keep working on M&A opportunities to strengthen our strategic positioning in the most important supply chains. And here, I'm pleased to give you an example. We were just able this week to announce that we have acquired a used cooking oil collector in the United States called Mahoney Environmental. And I would be happy to give you some background on this acquisition as it's a great example of that work we are doing on the acquisition side.
OMV AG M&A Special Transcript (3/12)
Answer – Thomas Yoichi Adolff: A few questions please. Just kind of looking at 2020 and maybe you can provide some guidance in terms of profitability, et cetera. I mean, when we look at Shell and Exxon's chemical earnings in the fourth quarter, they were both loss-making. So perhaps you can comment about your expectations for 2020 and then how that compares to 2019 as it relates to the Borealis business.
And then just secondly, just going back to your prior comments on M&A. You said M&A is pretty much done and dusted. We know we're confident about the outlook to 2025, et cetera. And how -- this deal came kind of out of the blue. So perhaps you can talk about how this deal came about. And also what it means for your plans as it relates to Indonesia. You're looking at building a chemical plant in Indonesia.
Answer – Rainer Seele: All right. Thomas, 2020 guidance is a little bit difficult. Everybody is looking into this crystal ball, talking about a virus infection, playing the psychology in the trading markets. So that's a little bit difficult to give you a clear guidance for the full year in comparison to 2019 because the environment in 2019 was a little bit different. But I would like to give you a little bit of an idea what we do see right now in the market and how we started into the year. Well, if you look into the market, definitely the oil and gas prices are going to challenge our Upstream business in 2020. If I look what has been reported in the newspaper so far, I don't see a quick change of this trend. So that the oil and gas prices will go up quickly. But there are some scenarios which would tell me also an upside in Upstream. I don't want to exclude this, but I think Upstream business in 2020 will be more a challenging year than one of these most prosperous years we have in our history. In terms of the Downstream business, the picture looks different. The picture looks very positive as we speak about our petchem business in Europe. We have seen as a reaction of the lower feedstock prices, especially the lower naphtha prices. We have seen now, in these days, very high petchem margins in the markets over here in Europe. The Asian markets, a bit more challenging as the corona is more playing down China, but we see first signs of a slow recovery, especially in China.
When it comes to the refining margins, I just would like to ask you to look into the refining margins development. We are enjoying now a real good refining margin in fire environment in Europe as well as also in Asia. So the only product to make that story not too positive, the product which is really a challenge, is jet in these days. You see that not only the airline industry is struggling, the refineries as well. So in 2020, the picture is, as we speak about the first months, and as we speak about the current development, it's a mixed one. It's a challenge for Upstream and it's a positive development so far in Downstream, especially, we do see a good business in petrochemicals in these days. It may have to do with our strong presence, we do have in Europe that other competitors might tell you a different story. When it comes to Indonesia, a clear message. This project has a big question mark in our discussion in our Board at the moment.
Empresas Copec SA Earnings Call (3/12)
Similar situation for Argentina, still some volatility there. We are seeing a good outlook in general for panels, not so much for sawn timber. Volatility in political terms also in terms of exchange rates, and that could affect our margins, again, when measured in U.S. dollars.
In Chile, we had a first few months of good sales in general. We are still, of course, subject to the uncertainties that we have during the social situation in Chile. But so far, during the first month, we've seen good sales.
Asia is basically affected by the uncertainty related to the coronavirus. However, we are seeing some signs of increased demand for lumber in some markets. And in Europe, some initial positive signals related to prices basically, but once again, subject to how the coronavirus unfolds.
Same thing in the Middle East, signs of stability and in general, good signals, but in this particular area, of course, subject to the development of the virus and those of the oil market.
Moving on to the fuel division, which we are detailing as from Page 21. We're taking a look here at Copec in consolidated terms, so it includes Copec, Terpel and Mapco essentially. You can see here that the EBITDA in local currency went up by 10%, which is a very good figure for the quarter. Accumulated is 80.4% for the year. So EBITDA measured in local currency is 8.4% up for the year as a whole. So all in all, a good year for our fuel division when measured in local currencies.
Lukoil 2019 Full Year Earnings Presentation (3/11/20)
Question – Ildar Davletshin: I have a couple of those. And let me ask those upfront. My first question relates to your -- or the OPEC+ deal, which failed to be extended. What's your attitude to that as a private company, given that some of the members of OPEC, say, Saudi Arabia, for once, have decided to increase their production output, would you have to follow suit as well should all the industry in Russia decide to hike production? Or would you have flexibility in your strategy? My second question relates to your share buyback program. You mentioned $3 billion in total. Would that cover up to 2022? And whether you're going to provide any more insight to that?
Answer – Vagit Usufovich Alekperov: My first answer is on the OPEC+ transaction. Mr. Alekperov speaking. Myself and LUKOIL stood for the deal to be extended, but decisions are made at the very senior level. Tomorrow, I'm going to participate in a meeting with a minister, and I'm going to deliver our opinion. I'm convinced that in an environment like today with the coronavirus present and problems in the -- with Chinese economy, the oil-producing countries must coordinate their efforts. So hopefully, on March 15, the OPEC committee is going to meet and find a mutually acceptable solution that would enable stabilizing the prices and the whole market.
As far as your second question on buying back is concerned, we are not entitled to comment on that. So at this point, I wouldn't dwell in detail upon the future transactions.
Exxon Mobil Corp at Investor Day (3/5/20)
You all know, today, oversupply is driven by industry investments and some of these growth markets have exceeded demand, and we've got a very challenging short-term margin environment, which is now being compounded by the growing economic impact to the coronavirus that we're seeing around the world. And that is creating a lot of uncertainty, particularly in the near term, and I would say, particularly here in Wall Street. However, the longer-term horizon is clear. And today, our focus is on that horizon and the future. And I'm providing all of you an update on the progress we've made on our long-term plans to structurally grow our earnings and cash flow while improving returns.
Kinder Morgan Inc at Credit Suisse Summit (3/4/20)
Question – Spiro Michael Dounis: Yes. So thanks, Dax. So I'll kick it off here. Just thinking about the landscape and really what's changed, it feels like forever since your Analyst Day at this point. I can't believe it's only been a little over a month. And of course, lot's changed since then. So just wondering if you can give us a sense if you guys have already started to augment your strategy before, as you said after the year? And if you've seen any sort of demand or supply responses so far to kind of what's been happening vis-à-vis coronavirus and just the market [sell-off]?
Answer – Dax A. Sanders: Yes, that's a good question. I mean, obviously, it's incredibly early. I mean we're sort of a week into -- kind of 1.5 week half into the macro response on -- from a coronavirus perspective. I mean, in terms of like real-time bleeding stuff, we haven't yet. In terms of -- we're obviously -- we, in large part, are a service provider to our customers, be they existing customers, be they future customers for anchoring additional capacity and we're in constant contact with them.
Obviously, the broader equity -- the broader risk markets have been volatile and energy markets within the broader risk markets have been especially volatile, even more volatile, which there's no doubt, I'm sure our customers and people are looking at. And so that certainly could affect conversations. But just to reiterate, so many of the customers we have, which I talked about earlier, are demand pull, they're LDCs, they are people that are ultimate consumers and users of gas. They're tied to people heating their homes, people using power, things like that. And so in terms of what we do on an everyday daily basis, we haven't changed much. But you're right, it seems like an eternity since the Analyst Day.
Chevron Corp Security Analyst Meeting (3/3/20)
Moving to the macro. First, let me address the short-term impacts of the coronavirus. No doubt, demand for our products is down. Our focus is on protecting our people and maintaining safe operations. This time, our operations and supply chains are functioning normally. We're taking all appropriate precautions to keep it this way, but it's a fast-changing situation.
Moving to the long term, the demand outlook for our core commodities remain strong. Over the next 20 years, the world's population is expected to grow from 7.8 million (sic) [7.8 billion] people to more than 9 billion. The world will continue to need more energy to support a growing population and an improving quality of life.
The chart on the left shows IEA's stated policy scenario, an independent view of demand that accounts for known and expected changes in both policy and technology. Total energy demand is projected to grow by nearly 25%, and oil and gas by a similar amount, representing roughly the same share of the total energy mix in 2040 as it does today. Even in IEA's sustainable development scenario, which is Paris-aligned, oil and gas is still expected to be about half of total energy demand. And as you see on the right, the underlying decline in supply requires significant investment to replace 80% of production from existing fields by 2040 and also meet the growing demand for liquids. Any way you look at it, the world will need more of what we produce, not less.
Valero Energy Corp at Credit Suisse Energy Summit (3/2/20)
Answer – Joseph W. Gorder: Yes. I mean it's interesting. So -- I'd give you some background. I've heard that Dr. Fauci -- I was at a business council meeting a week ago in D.C., and he got up and spoke. What we're dealing with is a kind of a strain of flu, right, with the coronavirus. It's spreading. It's gotten hyped. We were talking about in the airplane, do you think it would have been this hyped if we weren't in an election cycle with a strong economy and somebody trying to make this an issue, right? So who knows? But based on what I see, if the treatment right now is wash your hands with soap and water, try to stay healthy, and I heard on the news a guy's treatment for -- is coronavirus was Gatorade for 3 days, and he was okay. I mean this is one of those things that, could it be serious? I guess it could. It's more the Chinese impact than anything. We're all trying to figure out, is the data we're getting out of China good and real? Is it going to last a long time? Is it going to force their economy to screech to a halt?
The U.S. economy right now is strong. And as Lane mentioned, we're really not seeing any big impact on demand for our products. And the products that were -- except for jet.
Answer – R. Lane Riggs: Except for jet.
Answer – Joseph W. Gorder: And the products that we're moving into Mexico, there doesn't seem to be any impact there and so on. So I wouldn't anticipate that we're going to see a recession.
The question is how long does this last. And seasonally, does it phase out? And that's why, frankly, we are looking at this as an opportunity, okay? This whole market sold off. I mean personally, I'm looking at this as an opportunity. What should I be buying out there because people have gotten beaten down. And Valero is no different this week than we were 2 weeks ago. Our operation is absolutely no different. And we have the same people in place, and they're running the business, and we're making money. And so anyway, it's a -- one of these deals, it's a little bit like we had at the end of '18 when we had the IMO hype and then it just started selling off so hard. You'd love to be able to come out and say something. I'd love to come out and say, you guys, don't worry about this, it's not an issue, everything is going to be okay. And I guess that's kind of what I'm doing. But I'm not a doc, and so I can't speak to it directly. But I think it's -- my guess is this is going to be short lived, it's overhyped, sure. Might I get coronavirus? Could well happen. Is it going to kill me? Well, history with -- that we've seen so far with this virus would say, no, it's not. So anyway, I hope next year, you're sitting in that same chair, and I hope I'm here to say we are right again, okay?
Occidental Petroleum Inc. (2/28/20)
Question – Paul Benedict Sankey: Understood. And just to be clear, could you talk a bit more about your flexibility to cut? I mean, at the moment, you're growing, obviously, you could conceivably go growth flat or growth negative. And if you could just talk about some of your flexibility because it is important for people.
Secondly and finally, could you just reiterate on the divestment program, because I think that's the other very important thing to people? Obviously, you've gone through it line-by-line. But to be clear, you're reiterating that by midyear, you will have done the $15 billion. Is that what I've read or already said, sorry, then seen re-reported online?
Answer – Vicki A. Hollub: I'll address the dividend first, and you're right. We have built a scenario around currently -- certainly, the environment we're in. We don't know how long the -- this coronavirus impact will last. So what we've done is we've actually initiated our business continuity plans. And we started to look at various scenarios and what we would do in a situation where this looks to be lower for longer. So we have the flexibility to first lower our growth to no growth. Beyond that, we have the flexibility to go even lower than that and still maintain our production.
So -- and beyond that, we -- I think we've said in the past that because of the high-growth assets that we have, we could actually allow our production to decline a little bit. If we're in a scenario where the lower prices are being driven by an event, and this is that case. Because remember now, prices were $55 or above before the coronavirus hit. So we believe that this is not a scenario that's going to last for so long that it would put us in a scenario that we can't deal with it -- with the situation that we have. So we've got those scenarios built in, and we've got timelines on when we would make decisions and pull triggers. So we're well prepared to address this.
EOG Resources Inc. Earnings Call (2/28/20)
Question – Arun Jayaram: Yes, Bill, I was wondering if you could comment on how EOG is thinking about some of the demand impacts from the Coronavirus and the state of the oil market today? And what would be the company's game plan if we did move into an environment where we have sustained oil price that caught in the low 40s for some bit of time?
Answer – William R. Thomas: Yes, Arun, certainly, this is a huge world event, and it's developing. And we like everybody else is watching really daily the developments around the world, and we certainly hope and pray it's a short-term event. But if it turned to a longer-term event, as Billy said, we're in a fantastic position. Number 1, we got a great balance sheet, and we are committed to that, and that's certainly been a strength of EOG for years and years and years. And so that puts us in a great position. And then we're very flexible. We have an operational ability to adjust activity. And I think I'll let Billy comment a little bit more about that, maybe some of the specifics.
Answer – Lloyd W. Helms: Yes, Arun. So the way I would add to that is we have the capability to adjust our rig activity and frac fleets down to really be in line with our sustainable CapEx or smart maintenance capital numbers. So we've set out a plan that really allows us to capture the highest performing rigs and frac crews in the market, but we have a tremendous amount of flexibility to adjust downward if we need to and so -- and the same would apply to our allocation of capital to our infrastructure spend and other things. We have the same capability to adjust that downward if needed. So we'll just be patient here and watch to see how the market unfolds and adjust accordingly.
Husky Energy Inc. Earnings Call (2/27/20)
Question – Benny Wong: Great. And just my final question, and it's related really to Jeff's prepared remarks. I think you mentioned you guys are looking at opportunities to further reduce capital. Just wondering if you're able to provide some kind of early sense of what you're looking at and sense of magnitude that we should be thinking about.
Answer – Robert J. Peabody: I'll let Jeff, if he wants to add in a second. But let me just give you the kind of overall context. First, just, clearly, when we put out our guidance at the end of last year, we did actually reduce our CapEx guidance relative to what we had said we were going to do at the Investor Day earlier in that year. We took $100 million out of 2020 and $400 million out for next year, and kind of again indicating that we would expect that the run rate capital level will drop on a more sustaining basis beyond 2021. And so we've already baked that into the plan.
We are, of course, and I'm sure most of our colleague firms out there will be looking at capital programs again, given what we're seeing with oil prices and margins, given the virus outbreak and all these things going on. So what I assure you is we've done enough to understand we do have more capital flexibility. There is more room that we can reduce CapEx this year. We haven't finalized those plans. But our finger's over the trigger, I guess you could say, if they're required.
Continental Resources Inc. Earnings Call (2/27/20)
In 2020, we plan to take the stewardship of our shareholders' assets to the next level through continued capital discipline and operational excellence. In this current price environment, we are moderating our near-term growth and keeping capital spend flat year-over-year. We see the oil and gas market as fundamentally oversupplied, with demand even further impacted by the coronavirus. By preserving our high-quality asset for a more structurally sound market, we are further enhancing future value for shareholders.
Continental Resources Inc. Earnings Call (2/27/20)
Question – Neal David Dingmann: That was my follow-up, Harold. Just overall, could you talk just a little on macro, your thoughts for the remainder of the year. If -- I'm just kind of curious if you think that we're going to be -- continue to oversupply. And obviously, prices are going to impact like they are because of that. Do you see any reason to build DUCs or do anything like -- as such that you all have in the past?
Answer – Harold G. Hamm: No, we don't see any reason to build DUCs. We can answer that quickly. Let's back up just a little bit. Before this coronavirus came about, we saw the market correcting very, very quickly as far as balance of supply and demand. Obviously, this is going to take something away from demand. We'll have to see how broad that is given a few weeks here, but it just means cut back a little bit and wait and see how that plays out. Hopefully, it won't get any worse than anybody expects, but who knows at this point? So overall, we see the market strengthening. Certainly, this is a reaction to what we're seeing around the world right now.
TechnipFMC PLC Company Presentation (2/27/20)
TechnipFMC PLC Earnings Call (2/27/20)
ld provide a bit of color on the operating cash flow guidance? I recognize some of that may be partly driven by cash advances that you might expect from clients, but I was just wondering if there's also any underlying improvement that you're seeing on your own working capital dynamics?
And then the second question I had is, on the back of what we're seeing on the coronavirus, is there anything -- I know you are working with certain Chinese errands. Is there any delays or any concerns at this point in time?
Answer – Douglas J. Pferdehirt: Okay. Sure. So thank you, Lillian. I'm going to make a comment around the coronavirus, and then I'm going to pass it to Catherine MacGregor who's with me and as you know, is the CEO-elect, for Technip Energies and has been very involved and is currently the president of the GBU for Onshore/Offshore and is very involved in those projects. So I'll let her add some additional color. And then Maryann will add some additional color around the cash flow comment that you made, which I appreciate you pointing it out. We're very proud of the progress that we've made, the continued progress that we've made and a good progression and just remind you that we are a business of projects, and there will always be new projects coming in and projects closing out, and we are very pleased with the trend of our cash flow and the projections that we were able to share for 2020.
Just in terms of the coronavirus, look, first and foremost, we are deeply concerned for those who have been impacted. We are very much monitoring the situation and have put in place the appropriate actions to try to ensure the health and well-being of all the 37,000 women and men of our company and the many, many more contractors that we work with in the various sites and the various projects around the world. I'll let Catherine, again, put some additional color around maybe an example or two of what's actually happening on the projects.
Answer – Catherine MacGregor: Yes. Thank you. And indeed, we are, in light of the context of the coronavirus, working very actively, and I would say, collaboratively as well with our customers, but also with our subcontractors and with our partners to make sure that we take appropriate measures to really mitigate the impact on our projects. So what we've said is that the guidance that we gave you on Onshore/Offshore reflects what we see today as the impact of the coronavirus. So to give you a little bit of example of some of the things we're doing, again, working very collaboratively with our customers and with our suppliers in one of our projects, for example, we were able to transfer some engineering hours from one of our Chinese-based subcontractor to one of our operating centers.
In another project, some orders were placed or were diverted from a Chinese supplier to European-based supplier. And we have a number of actions like this that we are able to take again working as proactively as possible with our partners, suppliers and customers.
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