Q4 2019 Earnings Call
<unk>. Thank you first on the my I will come to that Q4 2019, they hate GP Holdings Inc. earnings Conference.
In school at this time, but it's a bunch analysis multimode I've said this because presentation there will be aggressive on insufficient to ask a question that other session you will need to Brad that I'm one of the telephone I must advise you that this confidence been Dakota today.
I will never liked a lot that confidence over two years because today Lady luck.
Hi runs on please go ahead, let them.
Thank you.
Good morning, and good afternoon, everyone welcome and thank you for joining Ghd holdings fourth quarter 20 to 20 feet earnings calls.
I'm joined by the its east Coast No I know, that's all I can say Goodman.
As usual.
We will go through financial.
Before we open up real quick so.
The linked to the sound they found on our website <unk> Dot com.
Before we get when they go I would like to make the following remarks.
A replay of this conference call will be available at <unk>.
Yes, thanks for Subcom until February 13.
And at least one our earnings press release will be available on our website and I'm absolutely Edgar system up an exhibit to our form 6K.
As a reminder, on this conference call will discuss matters that are forward looking in nature.
These forward looking.
It's a month or based on our current expectations about future events.
During the next piece prospect dividends share repurchases that's repayment.
The outlook for the thanks to market in general.
So anyway I read some of us loop utilization for cost of rose economic activity well.
Right. So some oil trading pot M anticipated level of rebuilding of scrapping some project a driver that's true.
Actual results may differ materially from expectations reflected in these forward looking statement.
We are true to read our periodic reports are available on our website and on the exit.
We had very good so including the risk factors amateur sports.
For more information regarding <unk>, that's we fight.
Yes, that's reported.
There were so they're not.
Given your history, it must think I'm not I'm fiftyk no M or 52 cents per share.
<unk>, which came in at 816 Rona.
Yeah, but down from.
Do you mind seems them, if not 254 million on it.
Oh, it's 4 million or 51.
Yeah.
Adjusted for amount that's changed heard about where you don't related thing.
The strength derivative of 9.9 million.
And 84 million or <unk> per share for the full year 29.
The average earnings for the company, we also see.
We also see writing in the spot market. They may actually be myself I'm sure I'm here today in the fourth.
What are some of them Yeltsin fees on time charter earned its fit for.
Oh from 600 per day.
The results were impacted by I'm kind of course 15 adjustments totaling 4007 under today and there is so for the V. occupancy so writing off market adjusted for the I've personally any impact.
Well, it's good spot 900 today for the fourth quarter of 2019.
<unk>.
Okay for the quarter was 22 million or a 5.8 hundred per day average for the sweet.
During the first on other chemical and says Hey, it's true IMO 2020.
Opex per day for the full year of 29 team well.
900 per day average for the sweet.
Yeah, and I have for the quarter was 3.5 million equal to 1400 friendship per day.
And the full year up 29 seen was equal to 50 another person per day.
Or the school year, I'm 29 schemes have no fees operating in the spot market generated 36400 per day and remedy funky basis.
I think today, we have booked 58% of our first course update.
81600 per day, when I'm sorry.
The gets trucks facing.
The company has elected to pay a touch dividend for the fourth fifth consecutive quarter.
David I'm 32 cents per share for the quarter. Its payable on February 20 to hit their shareholder somewhere [laughter] February 18.
According to our capital allocation policy, we were Uh huh.
Super fans of ordinary nothing.
Our net income for the fourth quarter over 29 team includes along that's fair value gains related to our interest rate derivatives, so pretty amazing.
Moving over.
Over to the Boston the quarter and they would excuse.
No in enough cash.
During the quarter, we repaid 35 million under our revolving credit facility.
And then missionaries Prepaids outstanding amounts from gets delayed VHP Raven totaling 22 million.
In October 2019, 80% over the coming reticle, no fear 29 <unk> recorded.
The company issued 4.4 million shares and the remaining 6.4 million Wall Street paid in cash.
Currently available under our revolving credit facilities.
Yeah.
Actually leveraged to moderate with interest bearing duct until locked up from 42%, but some market value that's for sure.
Looking at cash bridge, we generated hundreds in real inhabits out.
[laughter] repair my question first and welcome to 20.
Alan.
Paid related to maintenance Capex.
I'm not I'm.
7.5 million with pets are bereft weapon.
6.4 million with news related to redemption of convertible bonds.
7.3 million, we're paying dividends.
Oh prepaid long term debt totaling 57 million during the quarter.
Changes in working capital of 56 million.
Mainly related to increased accounts receivable and acquired revenue.
Near to the strong market, hi, fragrance, and I did something pretty smart grid inventory for the.
Quarter.
On the quarter, and then with 67 million of cash.
We'd like to Suncoke overcome.
Thank you Laurie.
Do you see we do not make excuses, we do think our spot earnings for the fourth quarter and the first quarter.
To date deserve some explanations in colon.
As you know I answer as shifts team has limited our ability to recognize revenue even when the ships are in Dallas.
And it so happens steadily in the fourth quarter had an unusually large I address adjustment to the channel 9.4.
10 million.
Without going into the details we think you should note the main point.
Which is that in the discharged discharge basis, which we believe by the way. So most of all appears report.
Oh spokes insurance 63100 per day in the fourth quarter.
When it comes your first quarter to date spot bookings, we have frankly being a bit unfortunate scheduling.
Over the past two loans, we have had a number of ships tied up in congestion in Chinese ports.
This affected our numbers negatively in two ways.
Firstly, because these ships were only.
Good morning, yesterday's diminish wage when the prevailing market was much higher.
And secondly, because the ships you missed opportunities to get fixed when the market was added strongest.
Hi, Good times you should just finally came three of the Chinese delays the spot market has already started receiving.
Frustrating indeed, but this is how the cooking crumbles Ross this time around.
On the cost side on the income statement, we'd like to highlight that the company continues to demonstrate good cost control and deliver competitive numbers.
For the full year operating expenses pretty.
It's came in at $7900 for days.
And gionee for the year totaled 14.8 million.
Both of which we believe compares favorably with a peer group.
As far as capital allocation goals, we like it you know to falling four factors.
One.
We have reduced debt by 97 million in the quarter.
17 million as ordinary payments.
$47 million net prepayments.
33 million conversion and cash redemption, no convertible notes.
Two.
Following a significant buildup in working capital in the fourth quarter cash flow is trying to strong as to switch to form the voyages fixed in the high market.
Sorry, the company will pay 47 million in dividends at least one day sales from February.
For you should expect further debt free.
Payments in the term quarters.
We're not once you update you on our scrubber program and scrubber economics in general.
So let's start with a different she sees obtainable in today's market, depending on what type of shipyards, you have and whether or not it is equipped with a.
Scrubber.
From the matrix on slide eight you see great two different GCB returns based on the same worldscale rates.
While staying on April one scrubber ship will make about 16005 under the day in the current market.
Global system Eco ship.
We'll make more than twice that mainly about 35400 per day.
You can also see that described the premium base. Some touring bunker prices is about 13007 number today, so non eco ships and 9400 today for eco ships.
It is lower 48 ships depressive overconsumption Bush.
The eco premium is about 9500 today, so known scholarship ships, while the guts to 5200 today, so scrub it sort of chips.
The value of the fuel efficiency was lower for discrepancy that ships.
Because nature, it's always cheaper than complain too.
In this context, you may want to note that the condition. The composition of our 23 start chips is such that we would averaged about 25600 per day in the these worldscale when does the price assumptions.
I guess about 90.
$9100 today, both non scrubber non eco ships, which typically the type of ship east into many daily broken reports.
What is now I'll give you an update on the exchange scrubbers situation.
From the table.
On slide nine you'll see that returns you have to all ships with scrubbers.
As you will get calls from our last earnings call. We elected to push stone six retrofits in view of the dramatic increase in freight rates that we witnessed in the fourth quarter.
The plan is to do these retrofits this year.
From a market.
Perspective, one would think that now would be a good time to go into retrofits we agree.
But the problem is that this work is to be done in China.
We all know how they will homebuyers.
Thats country answered this away.
Right now the shipyards are not in a position you can do the scheduled work.
Let alone any additional tanker retrofits.
Hey, simply do not more when this will labor force is going to be able to return to work.
We already have continued dialogue with our yard and would certainly be as well as we can get into limits what is possible but.
But at this stage was simply cannot provide you more accurate information.
When these six retrofit smoking.
Finally on this topic, we'd like to highlights that the company has today, maybe 15 bunkering so heavily towards route scrub it sort of vessels.
Total serving a $15 million.
Compared to its again dumped it.
Please tell us Oh.
That means that we have already received 31% will be to retrofit Jeff. Thanks 48.
With that I'll turn the call over design for the commentary.
Thank you taking it.
Hi, Michelle to the cable into earnings commonly known as TCT.
Just a key terms and the nice thing written in shipping companies.
It del Sol ever increasing ecosystem are wearing a learning in fits and assumptions, hence per se insolvencies in conserving unleash the 40 by companies and he can ship slow lives to brokers to let's say indexes.
It's holding components and learning bowls needs to be fully appreciate taking longer to make good sense of Tc lumber.
So Steve Steve you mentioned, our industry knowledge for captive lose some ships very difficult to look a little niche depending on spot live study designs.
Secondly should close.
Hey spreads between legacy legal and compliance to both ways and fluctuates geographically.
Thirdly wage durations ranging between 20 and home begins on todays we'll just letting us to extent folded in all close the chief accounting periods.
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Lastly, the introduction of my first each team is doing well, let's say the cancer earnings already well the type of business.
I'm beginning this is not impede instability, so stakeholders endeavor to understand earnings in our industry.
In addition to these points continent kids.
Report Kecy it gets thinking.
The differences may represent the tolling alone or in combination.
Well accounting numbers that include for 16.
Q2 earnings without our unit for 16.
Key excuse me the ships assisted by August.
First in 16.
For the test vacation ownership CNH gauge.
Let's go fishing, it's all this might seem to stakeholders in Washington, D. cycle performance.
We believe the conventional resulted in past earnings per share to look well when analyzing performance and.
Turning potential.
Let me know it in relation to share price Insulza looked in Boca Raton late on the investments.
And this regarding is lumpy supplies to known that DST pitch up a very good showing.
Oh, yeah, well defined capital allocation policy.
Okay, and giving earnings per share Polish it up kinston or all the general side ensures that investors are climbing awarded quarterly cash dividends.
We will now provide some market commentary.
Yes, sure meeting some headwinds in the spot markets.
Well first of the global wireless is playing its Paul can you ever right sectors.
It is really interesting near term on consumption in China by meaningful Loon, hence imports transportation assets.
Well, all places smelting and refining margins have silke.
Reducing nickelodeon consulting for refinance to ramp up high utilization.
It is constant taking on additional production tuck in response to this in order to manage for us.
Since September last year, some tickets keeps needs to ceased owned by coal school has.
Tied up in sanctions preventing them from trading.
These ships on the only way back into the markets. All bite debit Sagiv has various operational is just needs to be sold subjects cytopenias local operations nave challenging by quarantined imports like Singapore.
He.
Also at time of year that typically see some reduction of seaborne trade as his finest carefully close towards stand over the quarter and beginning on the next.
It is somewhat of an important to note.
Recent strong rates and volatility.
Yeah, Hi developed strong underlying fundamentals.
Hi, good long this short term volatility on seasonality excluded.
Still growing at a steady pace.
In parallel to supply the oil comes from get like demand growth in Asia.
This initial a combination that drives longer justification distances, thereby increasing utilization obviously.
Feeds.
Keith is quickly aging with almost a quarter this needs to be molded on 60 minutes.
Importantly, based and meaningful number of ships turning to initiate alleged Hamilton Beach expects these ships to retire that milestone.
The order book is in decline.
Good schedule supply of ships over the next couple of years now below eight those efforts.
This whole new ordering on your ships lifting and shifting to oversee a consignment kick while luginbuhl negative propulsion Nancy.
So in some we are realistic bump in answering decommissioning the spot markets and we named positive.
On the outlook the oldest.
You bet, we open up the questions operator.
Thank you if you wish to ask a question. Please press Star then one the telephone.
Turning to Vietnam as you wish to contact center question.
This does that ASCII once again, please press star one if you wish to ask a question.
And this one is coming from the language John Chappell from Evercore. Please go ahead.
Thank you.
Hi, good morning, or good afternoon, guys.
During the first one for you I'm on the scrubber.
Thanks for the detailed that you provided this morning, I'm trying to back into it PC impact quarter to date.
Maybe far too simplistic, but if we use the 14.6 million.
And then a number of days estimate on your 12 ships. It seems like it's about 10000 a day so far so first of.
Could you confirm that and then second of all to the extent that you can and second of all the 81000 that you've booked quarter to date I just wanted to be sure does that include that.
Potential 10000 impact on this quarter for the chips. So if we looked at the non scrubber fleet it would be somewhere in the seventies.
Hi, today due to less.
Yes, part first John.
Yes, the number we reported that is for our entire spots lease rates. Both it goes with scrubbers and there are non it goes without struggling so it's it's a mixed mixed results.
And actually the first question on those savings and how he conducted into rates I think you got to be.
Closest because.
This is really at the time when we bumped it up on these ships with compliant and how much we bunker can vary and how long it's going to take to consume that bunkers. We're also very so therefore, it's a little difficult you too.
Sort of calculate.
Correct number based in that don't really have.
So their coal that at this point.
Okay.
The other thing I want to dress was that the time charter rates can you. Just a reminder, there's five vessels on time charter. It seems like your time charter rates are substantially higher this year. So do our this quarter do all of them to include profit sharing and element.
Yes first of all those four ships in time charter and all of them have the profit sharing elements.
In the three of them as.
Base rate that is guaranteed and then we've launched our goes 100% loss and then as speeds above that in the fourth long best Multivitamins launch its just.
Higher.
Based on the immediate share units to that.
Okay.
Five as of December 31, So I assume one is expired in the last 36 days or so.
That's correct.
Thank you finally, one kind of technical modeling on for Layla now that the.
Diluted shares come into account.
Given the profitability and the convert what's the adjustment to the interest expense when we do the the diluted.
Calculation.
Yes.
Sure.
Ladies and gentlemen, now.
Absolutely.
Great. Thank you Sir.
Due to the income in the corner.
They pass.
Okay.
If you looked at fiscal year.
Okay because I.
I mean impact from.
Diluted earnings per share.
Right, but so we'll assume that you'll be profitable going forward, we had 20.
Million shares are so to the diluted count I think it's more than calculation for diluted EPS. There is a add back to the stated interest expense.
Maybe if you take it offline I know in prior with your prior convert it was it like I really in the quarter I'm. Just wondering if you had an updated a calculation for that.
No.
Interest from our Carnival Boehner 4.9 million shares.
Sure.
Yeah.
Hi, Rob the period on the card below.
Okay.
Right. Thanks, Thanks Theresa.
Next question is.
From the language Crown the give them from Jefferies. Please go ahead.
Thanks, operator, Saudi all how're you.
Right.
Yes.
See I guess the first question just on the 60% payout and obviously your share prices falling below the current levels of October 1st.
Before the fourth quarter surge. So why not include some kind of share repurchases as part of that $47 million return of capital and then I guess going forward do you expect continued full dividend payout for the 60% of net income or will they receive share repurchases included.
Our practice on.
And 60% is that.
If we didn't do any repurchases in the quarter that we're reporting saw you this fourth quarter now which begins.
We will pay off the 60% of dividends.
If we had.
She has been is in the fourth quarter than dividends might to be lower.
But.
Suffices to say that.
Share price was doing very well up until midyear and bastide actually.
Yep.
[music].
I think also maybe add to that that a share buybacks is just a question or whether you're trading at both or maybe at any given timing and still so where are.
And the cycle.
So.
He already sort of a nickel we all are still part of us like the goal by the this for both of US ahead of it so.
So it it's just it's also an appreciation of assets such as compared to say 70 late teens. So.
That period it was more affected.
Foreign exchange lingual 16 evenly spaced at this point to point.
Hello.
And of course, the exact dividend this or do you have to boost discretion, but we've had to pose your minimum 60% of ordinary net income for five years now and we think it serves.
Our oldest role and in terms to company.
So you shouldn't really expected deviation from that in the initial drug.
Sure.
Alright, and then I know you touched on it briefly during the prepared remarks, but.
Thank you set your your first quarter bookings decent you know at 58% at 81600.
Relative to.
Some of your peers, who reported maybe 60% of course are 90000, that's without scrubbers can you help reconcile that a little more other than just kind of the vessels being stuck in Chinese yards is that issue now behind us.
And then obviously with rates falling recently, what are your kind of expectations first quarter.
Relative to fourth quarter kind of on an overall basis.
I think two into the first part scrubbers versus non scrubbers and the peer you're talking about due course, maybe it's very clear to everyone that they will and delta early on acquired.
Blayne Chealander cheap and of course still have detected that.
Certainly fleet wide from January one.
And hats off to the numbers they presented that was very strong indeed.
And.
To our number I think the key point is that we work to start.
Ships fixed before to spike in the market that lasted longer than that.
Because of these questions. So.
And then kind of full quarter first quarter relative to the fourth quarter.
That's.
That's very difficult to George we're in there and we're in that that is very unusual those.
Certainly a very weak freight market out there and I guess already convenience stores play with numbers and then I think one of the reports from from what are you guys. This morning with said.
Grades in the mid twenties sort of sort of fixed portion of the spot fleet you should see a quarter not too distant from from Q4.
We haven't done those numbers ourselves, but I think thats, a meaningful way to approach it.
Hi, just wanted to give you a chance there and then it gets real quickly obviously fourth quarter was pretty Harry in with the converts and debt repayments cover off hire days, all the things, but what's your full average or your average for the full year 2020.
S breakeven rate for the fleet.
Is it low 20 thousands currently.
Yes, it's higher than that so net income why is it certainly the heightened this.
And your cash breakeven.
And just fill CIT is specific it's been relatively thousands.
Factors that XML that's it for me thanks, so much.
Thank you.
Next question is coming from the language Ben Nolan from Stifel. Please go ahead.
Yeah. Thanks.
So I had just a couple of quick ones.
The first is on the spreads that you guys are able to get.
On the scrubbers I was just curious it just making sure that those are actual real numbers are real time based on the ports that you're right not just a an average or the market or something like that correct.
That's correct view that.
Each individual of those 15 bone springs.
Torque and.
They paid to the HFO unwinds.
Why don't you was quoted out but the same time and its weighted by how much we don't within each one of them.
Testing.
Very impressive results on that front.
The my next question relates to just sort of where we are in the market.
I'm, obviously this problem market is.
And it sounds like you guys thing. There is you know just temporary and then that things will pick up.
In your experience at what point do you think asset values might be a little bit at risk or people begin to get a little bit nervous in terms of.
Yeah.
Buying.
We're looking to locking gains how how how Ah how long or how long does it have to go before we might see a little bit of retrenchment there.
You said, you say that the liquidity in general we need to see a certain purchase is.
This while retaining a the transactions you had the over this past due loans.
Dan.
Handful of a solid value ships suites for loose change. Thanks.
The opinion passing by then there's been a number of ships serving an 18 19. So good that kits that said what.
Hey, Good places in response to the spot markets.
The.
So good luck I sort of a captive they expect maybe some of those served dose of the transactions are quite deleverage given your livia into in the spoke budget.
So there's been a third achieve those actions.
I mean, the ships given some of the to say between 5 million Celtic in years of age is doing very very points.
[music].
Okay, great well that I'll I'll turn it over I appreciate it. Thank you guys.
Next question is coming from that angle Omar.
Patterson's Plateau. Please go ahead.
Hi, there. Thank you hi, guys.
I'd tell you know just maybe comment the started I think it's.
Interesting time that we're in.
I feel at the tone of this call is a bit somber.
And you wouldn't think that you reported your best quarterly results. However, if I recall and your guidance is for the potential of even better in the first quarter.
Having said that I wanted to ask about.
Policy I know you've been addressing it then as we think about a year.
The 60% after the fourth quarter clearly you paid that out as you think about here. We are in 2020, we started off very strongly there's a lot of uncertainty in rates have come off.
Well, how should we think about the payout.
For set of one.
Results with all southern Don should should we look at it as its own specific period or you think about more of a smoothing out process throughout the year, where maybe you hold some back in the first quarter and then by the end of the year, you're paying a bit more out.
Can you give some color on that.
Sure No we're not gonna smoothing things out we think the Formula <unk>, yes, what it is and if we earn a you know.
X. numbers won't improve sporty will pay on 60% return, 60% of the that'd be people going to be in by banks and force and if the end of the <unk> break even with no net income we will 6% to that and of course based on past the past record she'd seen that we'd been paying.
A nominal dividend, even when we are being.
Under break even.
Well, there's no desire to smoothing out we'll we'll pay as we are.
Okay not thank you and then maybe you know obviously you guys have been you know obviously focused on paying down that as well as repaying shareholders you prepaid the 57 million in the fourth quarter. It's obviously quite impressive I'd say in just one quarter being able to pay off that much and it looks like you're going to have another significant cash build in the first quarter you know.
When you think about the the the cash and that that.
Looking ahead here in the near term what do you prefer to do do you think you've won a pre pay further or just maybe built up a bit more of a war chest and prepare yourselves for you know certain opportunities down the line.
Figures are they expect us to.
For the depth to keep in mind that boat to launch it just seemed to pacing book evolving.
So that they sort of <unk> <unk> <unk>.
So anyway, you can do both you can reduce debt like you have a agree on the ability to see the.
Tempting opportunities.
Okay. So he can tap into that.
Okay I'll leave it there thank you.
Thank you.
The next question, it's gone from the line of how they.
They are from I.E.C. that I just.
There's going to happen.
How are gentlemen, and thank you for taking my call.
I want to compliment you in this world all of 'em, where we're operating now.
<unk> confusion from so many different conflicting kinds of things from geopolitical <unk> disease to everything else in the face of that I think you have done a wonderful job.
I listened to the J. and then Smyre podcast that you had.
You had spoken in there about are heading toward.
Zero debt, which I like the idea because we're in a cyclical business as we all know.
And that's planning for far in advance for when the time Commons when rates are very low it that we can still be a strong company.
Idle loved that kind of philosophy on your part I compliment you guys on the job you've done and your long term attitude toward what you've done.
I do have a question and the voluntary pre payment of long term debt you pre paid 57.3 million.
However, you drew 30 million on the scrubber financing under nor do Ya.
That sounds kind of interesting to me because you're borrowing on one hand, but you're paying off early on the other hand why borrow.
If you are out of sufficient funds to pre pay.
Yet.
Is it an issue different interest rates.
That's a good question Robert and.
It is partly that the we pay on prepayments we did work for the most part into involving facility. So just like on the on the plane question. Those funds remain available to us should we ever want to to use them for something.
So so that has really that is that as part of the that you you take money that's available to you.
<unk> elsewhere, we didn't actually read <unk>, if you should and should be since you'd want to do it.
And then the the last part of the payments moves into two ships Lake and Raven.
We think it leaves any advancing company did have a certain number of unencumbered assets in any given time.
It.
<unk>.
<unk> you know you're gives you a lot of flexibility and if you went to sell those ships. You of course is it easy closer and all the cash flows to do to sell and no to the bank in some for it. So we we think that has some evidence as well so that's why use one mix.
Sleeping on revolvers clearing out to death, and two ships and then actually doing up for done several program.
Let me ask this that and if you've completely cleared out the debt and two ships how many in the fleet to we have in that shape, where where completely clear.
We we have four ships turn to that are without any that on them.
[noise] wonderful okay.
So bad that by clearing out all that on the ship it has significant impact on the all the wrong break even levels. So what would you be payments you you look at some future availability and then that's when you do with older prepayments and then when you want to drive down you just make even for in time for me. It will then maybe he was too too.
Clear out the individual segments.
Yes that is why I say your longterm philosophy, the way you run the business.
I'm So pleased with our company is pleased with very much.
That's my only question.
The rates have softened.
But do you see this corona virus, having a long term effects rather than a short term effect now that they have talked about.
The possibility of.
Curing it.
I think is impossible to really be.
Educated and you spend the students fat games. So it is a very tough or the people in gold in particular, and it has saying that some of our business and many businesses t., but.
<unk> and how deep and Oh, why they say well influencing the businesses.
It's impossible to saying so.
I think all pumped in general is strong it is very healthy balance sheet laying old test make even levels and then so it enables our company to safety tests voltage like they say if you don't really subtle then thing the company, but yeah, it's impossible to say, we call them how long it alone.
Okay, well, we have no we have no intention right now are increasing the size of the fleet either right.
That's correct.
Good.
Thank you gentlemen, I think you'd do within a wonderful job and I sure. Appreciate the dividend idea of 60% I can stay with that.
Oh wait another question one other question do you have any more of these convertible bonds.
Or are they only go on now.
Well, we have local local bonuses Soviet Union or Vista tend to take you home and <unk> send to them simplify Megan.
20, 125 or 25.
Under them 25.
25 million still inconvertible bonds.
Conversion price now.
He said dividend adjusted so so just you know $6 and still holding the because given them for the fourth quarter that it'll be a further reduction in the strike.
Send out there, especially some of that particular <unk> Wilson's don't so.
Yeah.
Yep.
<unk> the notes or some type of instrument.
Maybe that looked like to have an aren't that still stuck so weakness or a conventional mortgage steps and it could simply so we have a sort of did you know getting rid of that used to that's one way or another on the best sent me by just paying about.
Very good.
I like that idea. Thank you very much gentlemen.
God Bless your work.
<unk>, it's coming from a line of.
Right.
From the M.B. a month again before.
<unk>.
<unk>.
Hello, just just to clarify your touched upon that.
Second Additionally covers to be Retrofittable Tonya dark several from running qualifiers.
We have six projects that they've been postponed so.
So we had he you know came over told gates and we had won't get get lung cancer Gummed engineering and we have it. They can't do you know the equipment connected to this so settle in Atlanta to install this at at the end opportune time.
I guess, it's a bit.
<unk>.
Some gardens home, but on the.
In January compared to the loans.
I think about you know maximizing that time talking for horn them or to.
Focus on.
So typically when you are laden did cargo. This is a a concept so <unk> going to clients and the most used speed and it's hard to but they did a phone companies. He said 13 mother's maiden. So you can appear to change steps.
<unk> said typically a functional the market then tightening in reaching can some for the cargo as in case I do want to do.
Interfering or.
You don't dollar.
Of course, <unk> evaluation, so depending on where the market this and they let it makes sense to speed up to slow down or if they're particularly loading any won't see reaching if the kicking a date and so forth of their supplementing evaluation in developed speed and the margin. The the non smokers ships are incentivize to slow down quicker.
And.
<unk> that makes sense.
Yeah.
Thank you.
The next question is kind of <unk> <unk> <unk> <unk> <unk> <unk> <unk>.
Hi, guys.
Quick question, you guys have $50 million available on the scrubber facility, but if you've only drawn 30 million on at correct.
Yeah, it's around that number asbestos yep. So are you planning on drawing the remaining got 20 million.
Yes, so the the two buttons for all of the Retrofits was 70, a $2 million and so on we haven't facility on 50 million. So what we'd been doing is that keeping that ratio debt and equity in this basically all those levels. That's why we haven't grown everything yeah.
[laughter] coming from I feel like dancing with these 245 million after that P. payment <unk> 51.5 million what's on.
13.5 million now available.
So I can and just some questions around thrown in <unk> you guys had that there were some of my port delays in China that sort of negatively affected your T.C. equivalent. Thank you for now I'm looking forward with Corona virus and some negative implications there at least currently.
Do you think you could be stuck in a thin Chinese for some that could positively affect your T.C. because you're on their marriage from higher levels and Q1.
<unk>, mostly for the launch their bookings to evade for the first quarter. So that we have a I think city, okay mixed though give ethical this nation. So <unk>, let's go to try and also at this point in time.
So that <unk> very busy in in China, and just the most recent lace and that smoked it's not as bad as soon as it was.
And then have to survive questions surrounding trying to the year US you know with the phase one deal. There was a 50 billion dollar commitment for buying a you know energy related come up studies have you guys seen increased the inquiry by Chinese Charteris to get U.S., a crude car goes over to Asia.
Loved yes, but.
So he say given the whole package, because or less significant value. So you understand it up to those discussions about getting infection. In these trade. So we have certain expectations sensor will see that the comments and then up to this constituent.
And there were sort of a a lot of market participants have been thing that costs go over so we'll be doing the majority of this trade that that's not something we personally agree with but what are your thoughts on that do you think it's going to be a Chinese dominated trade bike pasco vessels and the like or do you think it's going to be mmm Max mixed bag.
I don't think it mothers'. He ships are doing this because the meeting because the marketing fatality.
And <unk>. These these trade is a extending transportation distances and will increase the heat utilization and it's supposed to take so check it he should pick you up doesn't really nothing too much.
Alright, that's all the questions I have today, thank you very much.
<unk>, it's coming from that I know, John Wayne County from.
Them to scrap.
That's good I am things for taking my question.
The Libyan Civil war shut down there well export capabilities.
Sitting with some of the <unk>.
What would be more to the based on the L.C.C. market.
<unk>.
Spec <unk> my name.
Tremendous amount along the day the.
It usually does and like spring.
<unk>.
He did a first question, there's always some level of substitution between shapes sizes.
And so partly driven by how afraid is probably some of these different <unk>.
Tough sometimes the time so for instance, if.
So as soon as Maxim that that makes don't they why these are then people might sort of considered smaller ships and vice versa.
And the Bolivian trade is not really done a key impacting the needs to see business that such a it'd be just a trade that typically mostly perhaps I might just to some extent.
<unk>.
So we haven't really seen enough that a a student if I understood is second question correctly, you talked about how deep the potential main things spare the refiners can be in the spring.
I think you read reports that the the expectations are that turned around the well being looked as deep as it was last year.
Vehicles that once once it's done.
Thank you.
No more questions. Please cooking it.
Well, let it remains for us to just say thank you to everyone for continued interest in D.H.D. thinks it and have a good day.
That that's something that comprise heard today. Thank you for participating M.L. disconnect.
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