Q1 2020 Tsakos Energy Navigation Ltd Earnings Call
Thank you for standing by ladies and gentlemen, and welcome to de Tacos Energy Navigation Conference call on the first quarter 2020 financial results.
We have what does Mr talk is out of paddling chairman of the board Mr. Nicholas Tacos.
President and CEO Mr., Paul Durham, Chief Financial Officer, and Mr., George Saroglou, Chief operating officer of the company at this time all participants are any listen only mode. There will be a presentation followed by a question and answer session at which time if you wish to ask the question. Please press star one on your telephone keypad.
<unk> and wait for your name to be at now.
Advise you that this conference is being recorded today Thursday 11 of June.
Second.
[music] Thursday 11.
Jim Twentytwenty and now I'll pass the floor over to Mr. Nicolas Bornozis. Thank you President and President of capital Link Investor Relations.
I just have tacos energy navigation. Please go ahead sorry.
Thank you very much and good morning to all of our participants I am Nicolas Bornozis hooked up at the link Investor endeavor for buys working capital spend as you may begin.
This morning, the company publicly released financial results for the fourth quarter, all but 2020.
Did you do know public copy of todays earnings release, please call us.
The one to one big 175.
[laughter] or email us at them.
Got it the link Dot Com D N. That's got the link Dot com and we wouldn't have a copy for you email right away.
Please note that bottom to todays conference call. There's also a live audio and slide what Scott.
Which can be accessed on the company's website on the front page W.W.W.
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The conference call wouldn't follow the present business like so please we owed to access the present this was like formed the company's website.
Please note that the slides of the webcast president there for would be available an archived on their website up a company after the call profitable.
Also please note that this life of the webcast prevent them from our user controlled.
And this means the by clicking on the proper bought them you got moved to the next well to the previous slide on Euro.
At this time I would like to read the Safe Harbor statement.
This conference call Im slide prevent them from over the webcast contain certain forward looking statements within the meaning of the safe Harbor provisions over the private Securities Litigation Reform Act of 1995.
Investors are cautioned the such forward looking statements involve risks and uncertainties, which may affect them business prospects and results of operations.
This moment I would like to pass the floor to Mr. Buck you brought up a new determine upcycle energy nobody gives from <unk>. Please go ahead sorry.
Thank you Nicholas good morning, and good afternoon on cool.
I hope that do on yours are all well in state staying safe and healthy.
Yes, I think you want a result.
It's more deliberating.
Consistent justification of the.
And operating model.
As we've said many times that passed a model that provides stability earnings that's all times and flexible enough to capture all market opportunities as they arise.
This coupled with best in class cost containment, and an impeccable health and safety record.
Allows us to comfortably meet our obligations to reduce debt.
And as you've seen increased originally in declared dividend by 50%.
All of which we believe is gradually beginning to be reflected enough stock price, which is in any case expected to benefit from our announced reverse split.
As it would it make our shares so we hope more attractive to a much broader professional investor audience.
Once again, congratulations by all to Nikolas Tsakos, then he's do you wish them continuation of the good markets and greater success for the rest of the year.
Thank you and or would you go Nicholas.
Hi, Andrew Germano number.
Good morning.
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It is really very modest should I think.
Oh, I mean thoughts with you again.
Wakes, where we have no rush.
Oh last earnings call a thing a lot 'cause going on there.
Since then.
Well watch over experienced a I'm presented.
And many of our scalable had a lot of four I would say brain.
Within the family due to physical that a virus.
We had last May think girls.
Discussion on March 20 before.
I am I, saying.
We were in the beginning Oh, we're very appealing but.
Our store so that's another shoe month for our solid on the personal publishers.
Very important no has been to see people to 2000 Sheepherders from border ships all over the world.
I'm proud as Oh my God.
I was a made there.
Made all <unk>, good area and wiser vis a vis these losses.
In a 10 weeks, but we're hoping to announce.
Not only about we weren't able to operate and do some presented time with 97%.
If you shouldn't see.
Oh sure are not to cover might not want because it there now but nothing remember seeing these games will fall for the body, we should be over the virus in her new role or Oh, watercress. So I think I would not be mindful you not only we had a very.
All.
A border, but there are more importantly, sherfey unsafe quarter portal.
I think are going forward.
We believe about a.
During the course, we may be to not be Gary third simsarian. The during period appears that would be known to public markets for fourq.
Very significant extraordinary guard, she's not not scotches coming out of shipping.
But I mean, we Stockton.
The fathers glycerin affair.
Grounder I don't want to remember between 96 or nine be Charlotte and doors I would say these youngsters skills are all for our development and there are big Newbuilding program.
All right. So the company came much stronger than that.
In 2001 for two years, we had a the 911 garage is that something out of stock and look both for world trades and put on the Washington shot, but again the company was able to.
Come out of up even stronger.
Significant growth.
And then in 2009.
The good dukakis', what's really did not come out there with the oversupply of tonnage. It was just talking to come out or three until 2019. When we started enjoying finally, a balanced market and then we wouldn't you do with a with garbage. So month again I believe but we have placed the company in a more.
What's gone.
Right.
No I mean successfully and profitably. This crisis honestly, we are proven and we're looking at this work is the most important parts of it it's not the financial crisis I mean, I think it's a human factor is the most important and I was a new stopping point then twentytwenty for the company at the border where do we believe.
But the fundamentals are money, that's probably are very strong.
We believe at least guys is oh.
When it comes around who would probably be shape recovery.
The the order book income partly from the order book for the we'll show you what else you should remember in 2009 was about 4% older World split was no due in 2009 or less.
11% on the one sleep is or not to do do 50% of the new building capacity of 2009 has completely being eroded and has been closed down.
And what it is growing.
In 2009, we don't need immediate 5% reduction of seaborne trade the median.
Seaborne trade the reduction in the last couple of months was a 2% and I think we are rebounding from that so this gives US you know very good John Smith, who you're going to be seeing.
The strong fundamentals for 2020 and forward what we'd be during Bruce B, what do we took advantage over the crazy rates moved from March a neighbor Linda in the middle of for long dice relationship the walks remember the parks.
There are for instance had over one voting rights for $200000 for two years out six feet and and then $70000 talking about via Institute and other types of questions. So it's a with Dr. mind, we have placed the company to be able to not be given again the.
The following quarters and years going forward. If you simply we're looking at a very attractive Bush should be looked is coming from a major or from a major clients, who I think we might be I'm announcing right. After the transaction. So that we haven't asked strong effect on bottom line coming forward.
Finally, the policy sort of negotiating VIX and with this overview in mind I would ask George I'll go back to school to remind us what was going through in the last 19 more days and then we wouldn't be Buck George Thank you very sneakers and good morning to you all.
Went it went because real hard being a year for the history books.
What started in China has a local health problem and the top gradually spreading around the world.
Creating a global pandemic of unprecedented proportion, which almost put the core warrant a complete stansfield are the result of government mandated lockdowns social distancing measures to contain the spread over the virus.
This global have supplies crisis, our first priority priority was to help.
Safety and well being of our families our office personnel and the growing border vessels.
People importance wants to make sure that there was no business disruption failure or downtime as a result of working remotely they look down and the difficult is global containment measures imports on shipping.
Both onshore and offshore personnel adopted quickly and successfully to the new reality.
A big saying Q2, everybody.
And while life the economy and the World. It's opening again, let's be on guard on Theyll go with 19 poses no longer any threat to anybody.
We are pleased to report today, a very strong and profitable first quarter.
One of the best quarters for Dan as a result of favorable market conditions.
Oh oil price environment Super contango with record land and floating storage at sea.
And limited new supply of Donuts, despite the unprecedented demand destruction from the global looked down.
There is a spillover effect over the strong grapes into the second quarter.
Not currently up the headline record breaking rate levels, which are not sustainable, but the freight environment and the medium long to long term outlook continues to be very important.
Let's go to the slides.
So far presentation.
In slide three we see that seem stems inception in 1993 allows our CEO mentioned, we have faced four major crisis.
It's time.
Company, Thanks to each operating model, which is built to be crisis resistance has come out growing.
Stronger and bigger in size.
From for modern vessels in 1993 pro forma fleet of six to nine vessels today.
On an average 15% on your growth in terms of deadweight fee in the fourth decades, we operate.
In slide four we see the pro forma fleet and its current employment profile.
We have a combination for fixed time charters and flexible employment contracts.
Time charter with profit sharing choice and spot charters that capture the markets upsides.
All blue collar vessels 30 in the slides are on fixed rate time charters, while the red and dark red color vessels 39, or 60% of the fleet currently in the water has exposure into markets upside.
We have 11 vessels opening for chartering nuanced during the here, which one vessel opening before the end of this quarter nine vessels in the third quarter and one in the fourth quarter.
Slide five the left side presents the all in breakeven of course for the various vessel types, we operate and then.
As you can see the course bases low in addition to the low shipbuilding course, which must highlight the purchasing power of Tacos Columbia management.
The continued cost control efforts by management to maintain a low opex Chavez for the fleet and the low general and administrative expenses, while keeping a very high fleet utilization rate quarter after quarter with 97% been utilization number for the first quarter of Twentytwenty.
On the right side of the slide you see that the fixed vessels governor basically all the course.
In the spot trading vessels, thanks to our fine.
I now turn commercial strategy are there to pay for the dividends.
[laughter].
[laughter].
Now.
In addition in addition for every $1000 inquiries in the spot rates, we have a positive impact or five cents can be on your earnings per share based on the number of 10 vessels are currently have exposure to spot markets.
That reduction as we can see in the next slide is an integral part of the company strategy. Since the end of 2017, we have to reduce debt by 282 million, we have any baby inform the 50 million prefer to this b shares in 2019.
And intend to initiate hotspot repayment of the 50 million series C preferred shares during the third quarter.
Net debt to capital ratio at the end of March Twentytwenty is 46.5%.
We're not just taking advantage of the strong market to pay down debt, but we continue to reward our shareholders with healthy dividends.
We announced today, especially as dividend of two and a half centsper share.
In addition to the fixed five cents per share we paid semiannually.
This seven of half Centsper share, maybe then we'd be paid on June 26.
The company's listing in the New York Stock Exchange in 2000, do we have paid back in the form of dividends $10. A 93 cents ventures, an IPO price of $7 in 50 cents, which represents an average yield of 5.25%.
On the market block April appears to be the month, where oil prices and global oil demand bottom.
China.
Is the first country, where broke down distinctions I used and now demand appears to be coming back at the pretty Corbett 19 limits.
They were gradually return from Lockdown restriction Boise mine gradually call. This.
International Energy agency.
And other market experts.
Believes that the oil market is going to rebalance sooner than you initially forecasted.
Thanks to the unprecedented mandate that that market related production cuts by OPEC and non OPEC producers and the stimulus packages by governments and central banks to restart the economies and restore consumer confidence.
At year end demand level at about 92 million barrels per day will take us back to the 2015 oil demand levels.
Back to the 100 million barrels per day, the pretty Cobiz 19 levels. It would be it would take us back into 2021.
Provided that we will not face a second global look down with a similar proportion.
International Monetary fund also expects a stronger recovery for global GBP 2021.
Which always this pause before energy demand.
Let's not forget that the oil price as long as it last besides being good for the global economy is a blessing as it stimulates stockpiling and reduces the bunker fuel bill for shipping companies.
On the supply of Donuts and slide nine the order book currently stands at 8.3% or 381 tankage over the next three years, which is low compared to historical levels.
We should or shouldn't northeast that's a big part of the fleet is over 15 years and environmental regulations could push more tankers approaching or above 20 years so for scrapping.
And this figure of vessels for 20 years is currently 7% of the fleet, which more or less balances. The order book of 8.3% as it stands right now.
On the last slides slide 10.
2018 was one of the highest scrapping yourself records last year scrapping was lower as expected.
The strong freight market on the pandemic has put scrapping to a standstill.
But with more than 1200 tankers older on 15 years, we could see a pickup in scrapping with more environmental regulations on the horizon.
And especially for those vessels approaching or currently above 20 years.
And with that we conclude the operating a profitable for the discussion and we move onto ball and the financial discussion Board.
Thank you George.
Well, we've had a strong quarter one.
Ending with significant cash reserves, mainly due to voyage revenues $180 million held by full employment and with only one dry docking.
This was 22% high than in the prior quarter one.
Led to a doubling of operating income to $55 million and as net income $21 million after noncash OCA hedge losses.
And including a 1.6 million gain on the sale of the Suezmax Shelia tea.
Broken down we had 46 tankers on pure time charter, adding revenue of $18 million.
These 16 vessels have profit share arrangements that provided $20 million.
The two LNG carriers enjoying increased rates together and $10 million.
Well, so 17 vessels Aframaxes LR twos handysize operated in the spot market, adding 70 million.
EBITDA amounted to $90 million, 40% to increase over the prior quarter one.
In addition, free cash from vessel sales totaled $27 million.
Operating expenses increased 4%, mainly due to loading extra provisions and supplies in light of the spreading.
And then make.
But daily average opex per vessel remained at $7900 today.
The sale and leaseback of two Suezmaxes resulted in increased charter in costs by $2.5 million, but much of this is offset by the interest save by repayment of the related loans.
Gionee costs increased $1 million, partly due to one off professional fees otherwise daily average GSK costs remained below with no increase in management fees for many years.
Falling oil prices, let's finance costs to rise to $33.6 million.
Which noncash negative bunker hedges valuations totaled $16 million.
These are already reversing as oil markets rebalance.
Our two loan interest filled by nearly $5 million to to reduce debt and low interest rates.
[noise] vessel sales led to pre payments of $37.5 million related.
We also paid $15 million shit, you repayments in quarter, one reducing outstanding did to $1.49 billion.
For our two suezmaxes being built we will pay about $19 million for delivery by year end, mostly from a range the loans and for the LNG carrier $36 million by year end.
And $135 million next year.
Indications.
Quoted to will be a straight quarter and as such we have secured a number of vessels on charter is at attractive rates as Nicholson mentioned that has put us in a stronger position, but even in a weakening market, we will generate healthy cash flow to meet all our obligations.
However, we actually believe that the market new remains strong due to positive underlying fundamentals.
It's a possible command rebound as locked down features state [noise].
Now I'll hand, the call Dr. Nicholas.
[noise]. Thank you Paul I'm, not give formal bringing those Gordon yours.
Well do Uh huh.
Thank you.
And I concur with here's what we would like to open the floor for any question I'm sure you might helpful. Thank you very much.
Thank you and your first question comes from the line of Ben Nolan with Stifel.
Yeah, Hi, good morning, guys.
I have a couple of things first of all.
Nick goes through fully appreciating that the deals not done, but you did allude to some things that you're working on could you maybe just characterize that the they kind of thing that you're currently pursuing them in our are we talking about newbuilds with long term contracts have we seen as we've seen you done before or Oh.
Or maybe the segment just a little bit more color as to sort of where your head that with respect to opportunities.
Yeah.
You're going to sport surprise.
No. We're sure drafting this implies a press release for next month.
Yes, I mean, similar to our strategy of long term deployments in specialized types of.
Business.
Bills negotiations for up to three units.
Not all have of course are significant Oscar delivered double digit.
Locked in.
Parents soon.
No I think this is this is.
Well I'll just repeat it is in our strategy to build on wears off after your pipelines look worse not better speculatively.
In our business.
Okay. So that leads to another question and I believe that the LNG carrier. That's on order does not have a contract.
Through what's your thinking about that appreciating that theres, a little little time before now and then but obviously, that's a very expensive ship and Oh you know.
Getting employment on it I'm curious is.
Top of mind as respect to your strategy.
I think this is a very who the board management.
The company, we as a goal finding hardware luxury.
Because we got a if you look on slide four of our presentation out over 66 to nine vessels, we have a very diversified fleet. So we are actually we are looking at any business that make sense in including oil and gas transportation.
So although we have been one over the first movers in gas, we order first the vessel, but rather good the new energy back in 2004.
We have never.
No I think.
So far we have not really glad to do we have not been convinced that this market really because of all infrastructure or the months behind it will skyrocket, Brazil as our good brokers were trying to two point reinsurance when they will bring in a lot of newbuilding contracts for us to shine bottomed, but how do we believe.
Oh gosh is an important time instead, good part of our business and being a diversified company, we want to follow that developments, having one vessel with another option.
For our latest put in for the fourth quarter is there something to that or even if that market does not.
Boy as expectations.
We're not we will not feel it isn't that you know sort of six to nine veteran Felipe sure. In December we are continuing to follow developments, we have one vessel redwood performer for steam turbine with photo do the.
Hi fuel technologies is earning is one of our best earners today, the muddy energy.
Coming I think something like $75000 a day for the next couple of years, So I think thats.
Very accretive to our bottom line and then we have the new vessel unnamed still are named which is for delivery in January 2022 sure thing.
They are starting varies a lot of time until then to play the market to the market. There are people out there, but not opening as business, where the ship, but it's nothing that would have shared one way or the other company, but it is our obligation on the Woodford is the way to follow the developments in that market.
Okay. That's helpful and and then lastly from me and I'll turn it over.
From a capital allocation strategy you guys are are doing a lot of things there little bit of a dividend increase you're buying back preferred your sounds like you're in the market to go spend core growth.
Can you maybe there's rank order, what you're thinking about especially given your you're optimistic for the future, but I I think anybody would said still a little bit of an unknown.
How are you balancing safety versus growth opportunities in and where are the best places for Ah where your dollars.
Fair enough.
I think in the banking order repaying the expensive grabs come come first.
And then and then we can.
You know as.
Eco said.
Investing in ships, it's a question of markets on demand and prices. So you kind of rank that this is always a priority top priority.
But in terms of we have enough.
Yes, two repaid before we find something else to do.
Yes when.
Okay.
Alright very helpful. Appreciate thank you.
Thank you.
Your next question comes from Randy Gideon with Jefferies.
Okay.
[laughter].
Randy Your line is open.
Okay.
How would it down and how's it going.
On an under very well thank you.
Maybe still fairly low now this year.
I know I know hopefully in October.
Question around the profit sharing is with the what was the amount there for the first quarter and with that a record and then just kind of.
I'd answer the second quarter, I know rates for installing especially on the product tankers in April.
It's falling.
Since then.
Maybe give a little more commentary on the markets that today.
Uh huh.
No I think the market.
Yeah.
I think it was very strong.
In a you know.
In the first quarter.
And we had at least the 20 million or additional revenue from the profit sharing and.
This is 10% this is significant and of course, you know the markets has been very strong all show.
Until now so it is expected to have a there is a continuation of for the profits they have sharing.
Adding to the bottom line as long as a market stays at these levels.
[noise] I'd.
This will do that.
Yes.
Well good thing.
Yeah, and then it was a thing in terms of the second quarter are you expecting kind of something similar to that 20 million or little more little that's.
Yeah.
What we're expecting is perhaps.
Might be similar.
Similarly, we might see a bit higher letters from the from the fixed vessels, because we fixed five ships going going forward.
I think that.
Would be similar to profit sharing and then Oh, hopefully a little bit more from this sport medicine is put the sort of put it to fix the versus.
Got it okay.
And then a turning to the dividend I guess two questions around that.
What was the kind of thinking of of raising it by the two and a half cent.
Instead of keeping it flat or doubling yet or whatever so how did you kind of get to that seven and a half events for the quarter and then secondly, looking at the chart on slide seven.
It seems like in 2017, there were four quarterly payments up five cents to see after $17 million 28, senior debt repayments of five cents to shift the $30 million 20, nice email it to payment.
My sense is there for $9 million. So it's the court is the dividend now semi annually or how should we think about that.
Well, yes, the dividend has gotten semiannual from 2018, and that's why I think the.
That's why you're seeing 2018 be the missing one quarterly payment and then we'd have to semiannual payments are going forward.
Yeah.
June June June.
June and in December.
Okay, and then just in the calculation of the of the special dividends is solid rocket science.
We felt that because of a good market. So.
Our investors should be rewarded as a bit more.
This is a a one off.
Our base dividend continues to be.
And five cents a share.
Twice a year.
And going forward, we'll we'll see how the market develops and act accordingly.
Got it and then last question on the reverse split kinda same question around methodology, you're thinking there for one for five instead of a smaller or larger number.
In that low double digit range.
What we tried to do is fine.
Figure that would not.
There will not completely dried up liquidity essential for how many centers there would be always funding because if we have done one to 10 wouldn't be 11 million shares outstanding would be very small amount.
So we decided to wouldn't want one to five is a good.
Last one country, having to serve about $3. It only really higher than we started sometime ago.
Got it sure.
Oh, well that typically think beginning else they say.
Okay.
Your next question Cassava Jay.
My here with the value investors edge.
Hi, good afternoon, gentlemen, thanks for taking the questions.
Thank you.
So at first question I had it sounded like the first LNG carrier has been moved to January 2020, just confirming or 2022, just confirming that one and then secondly, I know you have an option for a second LNG carrier, what's the timeline on what you'd have to exercise that option or cancel that.
Well I didn't answer would be reviewing the third quarter, but of course the yard studying as you might know I'm sure you're all because you do follow things right very closely they are starving for orders.
The MD.
Yes.
Willing to give more.
Optionality as we say so.
Okay look at for the third quarter, maybe add the ability of pushed that back and then of course are you targeting to January.
And decision by the end on a year.
Okay, we'll look for more color on that and what was the worst degree upon price for that option that second one.
It is similar to the price we have 44 for the existing soup, but.
Depending on market conditions, we might if we decide to take it reminds they get the.
Discount.
Okay, well have to continue to watch that in terms of the remaining Newbuilds here you had three more left the two tankers and the LNG carrier can you remind us of deep remaining capex and the timeline for those payments waterborne or no on what on the topic. So many many topics.
Right so as far as the two Aframaxes second said I think it probably suezmaxes I would have been.
Going to be delivered towards the end of the yeah.
Looking at.
Another.
19 million, though so we have to pay.
LNG carrier.
We have about 36 million.
Remaining.
This year, but another 135 million.
Next year.
Well actual delivery.
Thank you for that so I'm tracking 90 million for the tankers and about 170 million for LNG carriers, and then I guess on your repurchase authorization do you started a 50 million program last quarter. It looks like in a press release I didn't see any indications that you use that so is that correct I know repurchases.
Yes, and then secondly, I think there's a little bit of discussion earlier on that but can you confirm your priority on that is that mainly for preferred or are you also considering repurchasing common at this time.
It's mainly for preferred at a and we have a 50 million press that a clean tends to to add to buyback idle part a in the third quarter and of course, you know on for common shares as well.
But the priority because the first priorities on press.
And is that did that 50 million of authorization is that in excess of that 50 million that you have reserved for the series C.
It's in combination.
And my final question for you I know you mentioned at the start of the call that you're looking into a refinancing transactions about prior to those so just currently as it stands can you remind us of the amortization curve for 2020 and in the repayments for 20 122 as well.
Paul.
Let's say a repayment.
Oh, Yeah, Twentytwenty are about 113 million.
And and 21, we're looking at about 160 million.
And 2200 50 million.
And 23.
About 130 million.
Well of course the balloons.
But we usually I assume that the balloons will be a refinanced.
[noise] definitely makes sense. Thanks for your time today and thanks for taking the questions.
Thank you.
[noise] I can't you ask your question. Please press star one.
[noise] [noise].
I don't do we have any more questions on.
Nick.
Thank you and I'll turn the call up back over to Mr. Taco.
Thank you. Thank you very much and.
Yeah, not ours, we certainly would like to send all of you.
The last.
10 weeks since we launched.
We lost the spoke about in Oh.
Really.
Sure.
Changing for 94 or maybe.
And for sure.
Our main target has been to make sure that the safety overseas partners around the world are well has been the most important gays and so far we have been a officials and most importantly, what reason we could not have achieved that to the here over the whole organization in the in the dark hours over there.
Don Wood Jewish people experience in a much smaller.
Women.
So it's good night.
Very interesting 10 weeks since we spoke on March 24th revenues that would go we are reporting today or are very positive news about the most important be part of our newest doesn't mean, they're safe guarding or under here.
<unk> safety overall sheepherders all over the world alone the I don't divergence.
So what does that bush mix for the markets that damage as a company that has gone through for crisis in the.
For a foreign crisis.
Extraordinary to shipping.
Not if I'm not I'm not shipping crisis, we have the quite a few of those in between but Oh, we started with a flattish crisis, where the company came out stronger than we had nine 911 woo with two or three here so for almost a.
Significant reduction of gold global trade be because of the but again the company took the opportunity to come up to come up a ultra with a stronger.
Then in 2000 and mining the financial crisis, which really.
Until 2000 2019, we were still.
Absorbing the overbuild over that period and as soon as we started enjoying your good market in 2019, a the covert crisis, but again with the caliber of everybody. The company. We believe is coming out stronger from that period. The fundamentals in France ahead of US are positive we believe it or we.
Could you give reshape recovery there not assigns a cool but the.
Now, which was the first country in the long, though that could be the first one that's driving this the recovery we.
You bet reduction cost us some silver lining Singapore, sometimes create more don't mind, which in many cases, we already are seeing that India is a doubling its imports a in the last thing was insertions months and it has to take imports from not the directly close OPEC countries, but for now.
Onto a ton mile Rouge, we're seeing China, probably no reduction as it opens up some of about seven to 9 million models.
Good day and is looking for trades from a much or.
For export Im confident well provide more on milestone was does show a lot of Oh, well Chinese fixtures from a the from the non sponsor for Oh brush up from the European bump to Russia, Affordably and she sees what are fixed for more from a school all the way to China.
Just on don't mind syndicate.
And the new building.
The Newbuilding says Mrs. I don't know said that down to eight or 9% of the word flip it was a.
40% of the one fleet in the last crisis in 2000 and 2009. So this give gifts companies likes ourselves a good or a good future fundamentals will be there might be some appeal, but things, but we took the opportunity to.
Six of our versus long term during the strong market over the first quarter and then maybe quantify.
And we hope well when we talk to do next denied in September two if I were much better news and find everybody's missing from the world again, so tournaments.
Oh, Thank you all for joining us.
Lets wish nickel and his team a successful quarter the second quarter.
And let's hope that the market continues to be a to be boy and pass it is as it has been.
And I'm sure we'll be.
Able to announce to you equally good results next time.
Thank you all.
Hey safe.
Thank you for your participation. This concludes today's conference call you may now disconnect.
[music].