Q2 2020 Euroseas Ltd Earnings Call
Please continue to stand by feel confident well begin shortly.
[music].
Thank you for stunning find ladies and gentlemen, and welcome to <unk> Conference call on the second quarter 2020 financial results.
We have with this mr. <unk>.
<unk> Chief Executive Officer Mr. testosterone.
Chief Financial Officer, if the company.
At this time all participants on the mission anymore.
<unk> presentation, followed by question answer session.
Each time, if you wish to ask a question.
Starting one.
Telephone keypad.
And what's your name to be announced.
I must advise you that is being recorded today.
Please be reminded that the company an outsized results with the press release that has been publicly distributed the full person that's supposed to Mr. Peter how about your mind, everyone in today's presentation and comfort school years, He's we'll be making forward looking statements.
These statements are within the meaning of the federal Federal Securities laws matters discussed maybe forward looking statements, which are based on current management expectations. They involve risks and uncertainties. The members on such expectations not being realized.
I kind of draw your attention to slide number two if the webcast presentation, which has the full forward looking statement and the same statement, which also included in the press release.
Please take a minute to go through the whole statement envied it.
Now I'd like to possible to must pay tough. Please go ahead Sir.
[noise] good morning, ladies and gentlemen, thank you also joining us today for those schedules scope and scale.
Got it leaves me stuff should assist Levy Chief financial Officer.
The purpose of Sunday School, just some discussion with financial results for six months period and go to have ended June Thirtyth 2020.
Let's now turn to slide city <unk> income statement highlights.
Well the circumstances, we booked a totally new if so to the 5 million.
Net income was 1.3 million net income attributable to common shareholders. After the point 2 million different didn't want to see this would be the services was one point 11 million <unk> 20 cents gain that said the basic and diluted.
Adjusted net income attributable to common shareholders would it be viewed was 1.4 million, what 25 cents specific basic and diluted.
Adjusted EBITDA was 4.4 million.
I suppose we'll give you a financial highlights include these days later on in the presentation.
Please turn to slide fool for these days of some of our recent developments.
During July Twentytwenty the company completed the sale of study of its best suits. Most of this minority speed, what's the best <unk>, Yeah, I mean uses and most especially cool skewing sort of total of approximately $7.6 million over net proceeds of which 7 million was used.
The baby outstanding loans and these ships.
Most especially monopoly speed was initially sold in mugs full $418 lightweight <unk> 2.7 to 2 million, but the deal did not materialize as the buys phased taken delivery of the vessel due to the government 19 circumstances.
Then later in July it will show the new for Scott well see you come to the than $18 spent like we've done well do for you don't 7 million, let's put overseas.
The second sheep.
M. V Nueces following the fire accident sensitive in January 2020, and the settlement was 2.7 million from the she button that I suppose the vessels was essentially sold for scrap so the amount of 3.6 to 9 million net proceeds.
Finally, the says vessels the motor vessel Cool School was also so for Scott for the amount of 1.8 to 5 million net proceeds.
During the second quarter of 2020, the company agreed to certain of its lenses. The defendant both some of which 2020 loan repayments to be paid together with the respective ballooning stones.
It doesn't know 4.7 million was a schedules to December 21 always been 22.
We have also the process of finalizing was the last banking the book a defendant over $900000 due to city in Q4 2022 their respective balloons as well.
Furthermore, the company agreed with the holders of the she appears to be percent says do haven't the option to Spain, the quarterly dividends and guide for the period. The slate is one 2022 January 29 2021.
By issuing additional series B preferred says and increasing the dividend at 8% to 9% <unk>, 8% if they didn't guide.
The company exercise this option.
Do you feel for Q2.
Please turn to slide five where you can see I've got him sleep profiles.
Upon the completion of the sale of the three vessels. We will now have 16 vessels, which includes 11 feed the container ships in five intermediates contained they've got it is with the folks mostly 500, the 90000 deadweight those and 46000 do you capacity.
The weighted average age of 15.8 years.
Please turn to slide six sort of shopping operations and dry docking highlights.
We have been able to the new most of the expired. So it is at that age Elizabeth no. It wasn't there last ones and without facing garden dimes, except for the Amy you need a and ninos would seats faced about 14 days are widely dying and that E M spaces, which faced.
53 days of lightly.
I will not go through the complete list of the new chapters achieved but you can see them all on slide six.
I just want to also note that fits into really flexible periods that.
The generally flexible be views that we have had to I'd give it to date.
Slide seven shows a that's an employment and guys go slow Ms. Liz.
As of June So, yes, we have about 58 cents governments for the remainder of 2020 based on minimum so to do nations.
Please turn to slide eight.
Over the last five years Ive operational fleet utilization has been in excess of the 98.8%.
Universities, because as I was standing safety and environmental tobacco, but at the same time, the company's managing to keep go slow despite the running a node to fleets and do you have the listed companies.
Well the second quarter of 2020 operational fleet utilization was 99.7% why did the commercial fleet utilization the base into second quarter 2020 was 94.6%.
The graph on the page compares daily costs, excluding dry docking since 2011 with the average about views.
Well, let alone cost achieved at among the lowest over the public shipping companies.
Let's go to slide 10 to discuss the agenda containership market highlights of the second quota.
I'm, sorry that age during the second quarter when they get to fix a a divorce all contains some sizes as shown by the cold fixed index. It started to recover towards the end of it and most profoundly in July.
Well feed doesn't that mean good sized vessels there was another <unk> close to 25% or six to 12 months' time charter rates observed between the first and second quoted.
According to Clarksons 17 kind of do you get that since then fell from an advantage of seven point $8000 per day in Q1.
To six point $3000 the day into two and currently stands at six point $6000 for they.
The two under 5000 to you did vessel sales whether that happens over 9400 in Q1 to 7700 into do currently stands at that out 8100 that day.
The <unk> 4252 do you did this vessel.
Well from an average over just about 17000 into one.
<unk> 8500 didn't you do and currently stands at 11500 approximately.
I wouldn't say comes in prices for older than 20 year old vessels remain down to Scott prices in Q2, which however was down.
20% versus Q1 due to the top of the prices get up by the.
Well younger investments of about five to 15 years old there was a price drop of 10% to 15% for the 1005 700 to 4250 do you have age we the bigger reductions into smaller sizes.
At this time, the newbuilding prices with no scrub those <unk>.
Were stable with downwards, but I suppose but the absence of transactions indicate the lack of interest it's got to asking prices.
The next containership fleet currently stands at about 5.1% totaling 1.2 million to you.
This includes I did you to scrapping it until seating which of course is mostly larger vessels and is about 280000, the your dog <unk>.
It has to be noted that these numbers are down sort of the 2.7 million do you all the 11th of sense. It over the fleet, which was idle as of mid May.
The number of vessels scrapped increased slightly in Q2 versus Q1, but was it assisted by the local down in India, Pakistan and Bangladesh that did not allow more seems to be scrapped.
Overall, the fleet has grown by 1% in 2020, so far without of course accounting for rise as best as Activations are what I believe it's it.
Please turn to slide 11.
As it is also dependent than me they cannot be country road environment has dramatically and negatively changed in 2020.
Yeah, I imagine its most recently the vision in June, let's say that that world GDP growth in 2020, we then the up at minus 4.9%, Steve did to the duration to its made this to be but said that they need.
The reduction stemming from the USA, China, India and views in five economies moves.
Well 2021, though the I didn't Miss global GDP growth is not connected at the start of 5.4%.
Major global economies are expected to be bounced the only in 2021 with the U.S. and they do it was owned and bounding by 4% to 5%, India by 6% inside and about eight plastic said.
In terms of demand for containerized trade, which closely quote in nature Global GDP growth is as we've said many times that the momentum as just didn't see EWP at my is expected by Clarksons have a significant drop to minus 7.7% in 2020.
Hi, good old today's of 7% is expected to it it doesn't 2021, owing to that eyes of the global economy.
At this point, we should note at the dividend growth projections currently made will probably be revised ascorbic 19 develops but also due to the uncertainty of digital political situation and especially trade between U.S. inside.
Therefore, my can development projections, I've, even harder than usually to make.
Please turn to slide 12, due to view the containership based qualified and loved it doesn't look at delivery schedule.
As you can seem to containership Bates profile soft on the left side of the slide we kept the young fleet with the me is 6% of ships being over 20 years old.
These however, it is concentrated into smaller size classes, where we operate.
Yeah, but I'd say, it's a shows a delivery schedule of the current containership order book, which is expressed as a percentage of the fleet.
The seven figures for the used 2017 to 2018, so the accident fleet growth after taking into account scrapping cancellations and slippages.
That's a good figures for 2000 22022, so they're all the book before in scrapping them Slippages.
I didn't leave the total contain the containership order book stands at 8.9% of the fleet a figure which is the lowest observed in more than 20 years.
This low level of all of the looked provides a source of optimism for the quick recovery of debates he's debate demand to be causes a supply side vessels will be at minimum levels.
Please turn to slide 15, where we discuss about summit.
Yeah, I don't know do they sort of depend then becomes final answer the consequences of end of any type of modeling Vivien reliable.
Oh base case supply demand <unk> and not just however is based on this scenario, where we experienced a deep recession in 2020 of minus 4.9% GDP growth side to be the strongest covering 2021 of 5.4% GDP growth I suppose the idea.
<unk>.
The current estimates from cloud seems to quantify the effects of that been demichele containerized today indicate an exaggerated the the axles to start in 2020 of minus 7.7% followed by subject I live in 2021 of 7%.
Therefore would send billions DCP, the very weak 2020, and the strongly strengths ending 2021 and 2022.
Meanwhile, shopping of vessels that would do it delivered by the chapters during most part of the cost of food difficult as indicated by the bought doubling over the course fixing Dixon that early June.
However over the past few weeks Furthermore rates have been observed.
I've been Newbuilding Order book, you said 20 year lows a significant both some of its scheduled to be the lives of it is scheduled to be delivered in 2020, along with the best is done from the federal seating scrubbers.
Well I made this might potentially dampened the effect of the everything baskets cover. The we're currently witnessing if pandemic disgruntled we remain have food.
That said they'll they'll look for 2021 onwards is very low and since owners do not yet to know what's the optimal fuel for the net not too distant future will be they are reluctant to place any new those.
Therefore, the second half of 2021 and the whole as 2022 may prove to be Boone periods, if global demand picks up as generally expected.
Let's turn to slide 15.
The left side of this nice this shows the evolution of the one year time charter rates for containers of 2500, the U.S since 2000.
Instead of financial crisis of 2008 of AIDS stayed about the depressed whiskey spikes within the five in the cost to $14900, but they age.
Secondly, we see chart of age Skava get that about $8000, but they.
The rights inside of this slide shows the vessel values in relation to historical prices since 2011.
As you can see containership values astute significantly below the median and I've its historical values.
This indicates that purchases of seats at todays cotton its values could prove vevey, a good investments and with that I'll now pass the flow through our CFO Desso Sicily. These to go over our financing highlights in most of these days.
[noise]. Thank you very much activities with Morgan for me as well, ladies and gentlemen.
I would love to take you through the next most lights.
Thank you and overview for financial results.
Three and six month periods ended June Thirtyth 2020.
Well, let's look first at slide 16.
Well this is important too far jumped Randy reported.
Net revenues of 15.5 million, representing 7.2 increase over but there's nothing really nice.
8.1 million during the second quarter of 2019.
Which was the result.
Increased our parents number and size of vessels, we all look into second quarter of this year compared to.
Second quarter 2018.
The company reported net income for the period.
1.3 media.
Net income attributable to common shareholders 1.1 medium as compared to a net loss 0.7 million net net loss attributable to common shareholders.
1.7 million, respectively Ferguson theater.
2019.
The results for the second quarter of 2020, Washington.
Zero point, Threemillion pro forma basis Asian or below market I'm tractor supply.
Yeah, there's another financing cost.
Shifting gears to frozen cranky among.
1.1 million compared to 40, making even for the same theme to 2019.
Would you mentioned included additional finance charges for about Europe, One seven me.
Yes. Your engine will go too far from Sandy was higher during this time of year its outstanding debt during the period as compared to last year.
Well the all ships why even lower libraries are bank loans shift too and you during that period as compared to the same period of Lucky.
Depreciation expenses.
Well the second quarter of 2020, amongst 1.7 million compared to 0.8 million for the same here to for last year again, reflecting the increased number of vessels we own viewing.
These periods.
Adjusted EBITDA for seven quarters to present, Randy was 4.4 million compared to 1.6 million achieved during the same period of last year.
Basic and diluted earnings per share attributable to common shareholders for the second quarter <unk>, Randy Werent 20 cents calculated on 5.6 medium basic and diluted weighted average number of shares outstanding.
There are two basic and diluted loss per share of one point $12 for the second quarter last year calculated on approximately 1.5 media.
Basic and diluted.
Weighted average number of shares outstanding.
Excluding the effect on the income attributable to common shareholders for the quarter.
I realized losses on derivatives, the amortization or below market time charters.
Right, and then last Tennessee and invest in held for sale.
Yeah, just sit there and its fair share attributable to common shareholders for the quarter ended June 32% Randy.
Were 25 cents compared to adjusted loss of $1.14 cents per share for the same period of last year.
Usually secure janitors do not include thereby teams and their problems estimates refracs pressure.
Well the first Oh 2020, now the company reported book I missed the revenues 28.9 million, representing 76.3% increase if it doesn't matter revenues of 16.4 million during the first half of last year.
Yeah. This is out of the increased average number of vessels and the size of vessels we all.
The company reported net income for the period <unk> 0.2 medium and net income attributable to common shareholders was 2.9 here is from Baird graft loss. He needs me here and that loss I can remember Coleman, Sir well, there's 2.2 media respectively for the first from 2019.
The results for the first half of 2021, shake loose 1.2 million or from a position or below market time charters are quite.
<unk> interest and other financing costs.
Among the 2.4 million shares compared to 1.5 media for the same period of last year.
Year to which again included some additional finance charges for both points I mean.
This increase in our interest charges.
Are you being good amount of debt in the car you first half of this year as compared to the same period of 2000 I'd is partly offset by the degrees LIBOR rates that are bank loans should be paid during the period again as compare.
To the same theater took last year.
Depreciation expenses for the first half of 2020 were 3.4 million compared to 1.6 million for the same here into 2019, reflecting the quite a number of vessels wheel.
Adjusted EBITDA for the first half of 2020.
<unk> 8.4 million compared to say media not cheap during the first Scott.
Yeah.
Basic and diluted earnings per share attributable to common shareholders for their first half Strensiq Randy was 52 cents.
They just again five approximately 5.6, New York basic and diluted weighted average our various number of shares outstanding compared to $1.44 cents loss for the first half of 2019 translates to an average of 1.5 media basic and diluted share.
Okay.
Excluding the effect on the income attributable to common shareholders for the first reference this year.
Yeah unrealized loss on derivatives, the amortization or below market time jets supply and the loss on a same crescent sets per se.
Yeah, just sit there and experienced said I think <unk> common shareholders for the six month period ended June 32% frenzy, what's your being 42 cents.
[laughter] bear.
Launch.
One dollar unfortunate concerns fair share.
Basic and diluted for the same here took last year.
Let's now turn to slide 17 to review our fleet performance.
Let's first look at our fleet utilization rates and let's start with our second quarter numbers and they left part of this life.
As usual, which are broken down our fleet utilization rate equal matters, you know paresh.
As you can see this slide for the second quarter of two farms and granted we reported 94.6% chromadex utilization rate.
And then 9.7% a passionate utilization hey, compared to 96.7 question from axiom and the hunger for stepping up their national utilization rate for their second quarter last year.
I would like to remind you hear that our utilization rates inflation does not include vessels.
No scheduled repairs or dry docks, if anyone should happen during the period.
I'm not <unk>.
19 vessels, where no where all the not parity during the second quarter of 2000 Randy.
And now it's time charter equivalent hey.
$9458 per day.
Compared to.
$8607 per vessel per day did we earned during the second quarter of 2019.
I want to your wage we operated 11 vessels.
Our total daily vessel operating expenses, including management fees general and administrative expenses, excluding during the course.
Whereas 6001, some of them in $20 per vessel per day.
During the second quarter as compared to 6000 $4023 per vessel per day during the same theater to for last year.
Let's now look at the bottom of the table to our daily cash flow breakeven levels.
Got it here I know better, especially for a day basis.
Well the second quarter of 2000, Randy our cash flow breakeven level was 8005 times in $12 per vessel per day compared to $9092 per vessel per day for the same period last year.
It's not it's our first car figures there I'd probably stable.
So for the first half of 2020, we bought.
96.9, they're saying commercial utilization right, and then 749% bearish inflationary compared to 98% from axiom and it sounds a person or passion for the first half of last year.
Knowledge, we operated 19 vessels during the first half of 2000, trendy everything 9005, founder and $41 Professor per day compared to 8006 kind of $96 per vessel per day.
We are vessels and during the first half of last year.
During which we operated 11 vessels.
Our total daily vessel operating expenses again, including management fees general and administrative expenses, but with all drydocking costs averaged $6003 prevention for a day during the first half of this year compared to $6324 progressive for a day.
First for the same period of 2019.
Looking again at the bottom of a day when we can see that our cash flow breakeven level for the fair stuff is going to kind of terrorism per day basis, and we can see that that was 8000 to kinda natomas <unk> grain compared to $9144.
<unk> per day for the first for the first half of 2000 Nike.
Yes, I'll move to slide 18 to review our debt profile.
Slide show, some very nice inside our cash flow breakeven 11 expectations for the next 12 months and from the left side, we can see our scheduled debt repayments over the next several years.
As you can see in 2020 <unk>.
Less so far you didn't mezzanine carbon far along in repayments set in media.
Q2, they say over the three vessels the guys, Steve as mentioned that yet.
Well there me about 4.4 million he's their loans you to related party and the company can they pay that long incest under subsequent dish.
He leaves about 7 million loan repayments during 2000, Randy Moss of wages, though were making their first talk about 5.3 meeting, especially interested as mentioned another point 9 million will likely be differ.
Our loan repayments as you can see again the chart.
Over the next two years keep decline.
Densify balloon payments in 2021, we will shift to repaid 16.1, you're gonna for balloon payment that discovered by six you're far reticence.
2000, Randy berries, there's more of their bundled payment of 1.9 million you get covered by you want to four restaurants, and finally, just wasn't going to free we serve bundling payments.
We're about 70 million and presenting launch collateralized by the remaining nine photographs we.
We believe that.
Should we did in the past, we'll be able to doing fine I'm, sorry balloon payments as they come to you.
We can not on the cost of our funding before we move to reviewing our cash flow breakeven.
Well, here's another its margin or not a bump that well for about 3.6%.
Assuming a library.
<unk>, 0.3% <unk> senior debt costs are not minutes is about 3.9%.
If we take into account cost of the related passing along the preferred equity dividend Oh, its course for non equity funding and sure 72000, Randy He's about 4.5%.
Moving on to date when they're high.
You can see that if we express our long repayments over the next <unk> dollars per vessel per day, we get in $1050 contribution to our daily cash flow breakeven.
We probably more make assumptions for the remaining components are for cash flow breakeven level that these are buried in your expenses G and H frenzies embarrassed their idle costs.
And cost payment are far prefer spoken everything we've come up with their customer breakeven Lebron from an extra money for about $8450 their investment for a day.
It's usually mentioned.
The company says I did want their folder suffered series B preferred shares however, the option of paying the quarterly dividend in time for the period starting from April 1st as far as intended to January 29003 into one I used shrink.
As you know series B preferred shares any good easing. The TV then take 9% for made that said, if if <unk> dividends paid in guy.
We hear about shoot in making these cash burn cash flow breakeven rejection without professors, we collect they do everything time until January 2021.
That's not on slide 19.
You slide provides some highlights from our balance sheet.
Actual June 17th 2020, we shed cost another assets other current assets are for about 10 million.
The book value far message was about.
Sounds good affecting me here do you think it stopped giving us a book.
Valuable for.
Total book value across its well for about somebody that Transitionary me.
Reliability site.
Okay can I was spending banca debt back another debt of 84.3 million.
<unk> <unk> of about 8.2 million another liabilities for about 8 million.
Boston, leaving us with a net book value of 22.4 million for approximately $4 per square.
If we adjust to the book value of our vessels with their market value, but based on our own estimates over their value. We can calculate the net asset value for our fleet.
But to be there Angels 19 to 20 million or about 2.5 dollars per se.
We believe that aren't assess your son dictating girl two minutes after $3 per share Wasik, then discuss them well below book and net asset value is then a good appreciation potential for shareholders and investment opportunity for other investors.
That's a reluctance on the floor backdoor, Steve is minus the remaining political.
[noise]. Thank you does so I would now like to open up to the flow for any questions you may have.
Thank you, ladies and gentlemen, as a reminder, she would like to ask your question. Please press Star then one on your telephone keypad.
Yeah.
And if you wish.
<unk>.
Good question.
I'll now take our first question.
Great.
Hello.
Hello, and thank you good day I Tate Sullivan from Maxim Group, Bob just can we review a change in cash and balance sheet for this current quarter given that the sales. After the end to 220 I think you had vessels held for sale of 7.1 at the end to 220 and then.
7.6 million of sales and so just about you write that up and is that and I mean can can you just clarify some at the changes in the balance sheet. This current quarter. Please.
And the I mean, they policy so see slightly older vessels young for say, Hey, sorry, Steve as mentioned the.
I see the vessels were sold for a net 7.6 media reach seven New York Yeah.
We were used to repay their debt. So there was a net contribution after understanding of the message <unk> cash balance.
Okay. Okay.
And then for the insurance proceeds received in the quarter, where did you receive cash what those insurance proceeds or maybe do you have a cash inflow risk related to that accrual in the upcoming according to current in upcoming quarters here, but it seems about 40% well then I'd and there is about the remaining about 1.6 million remember in 7 million.
Yes, as receivables, which were expecting to see me in Q3.
In Q3 can you give after the sales in that cash collections can you give any updated total cash balance and I apologize if I missed it for the current quarter.
Did you see.
Yeah of course, the remaining proceeds from the insurance claim.
The remaining from the same nothing you listen to something close to 2.3 million incremental cost.
2.3 incremental cash this quarter. Okay. Thank you and then also on the current makeup and after those sales in July for.
Are you comfortable with your current fleet mix or you always evaluating maybe selling some of the older vessels for Scott going forward or can you comment on that please.
We might might the Scott or one or two more of a base is within the year, depending a little bit on how the market develops.
Over the next few months, because we will need to buy something that I dockings and do we will have to evaluate the if it makes sense to.
That I took the vessel in span the amounts needed all it's best to scrap some at least will be determined based on the downside surveys that we see in the next couple of months.
Okay and you mentioned my last for me part in his art you mentioned rates around 8000 per day, what do you say the volatility in the rates.
As decreased in the last couple of weeks or I am I mean, I know your comments on I mean, it's hard to.
Predict the near term versus the China, U.S. dynamic, but I mean has all tilt volatility decreased in the rates at least a little bit last couple of weeks yes.
The rates have ER and who they are little bit didn't allow us a month or so, especially for the larger vessels less so for the small little bases, but it is always you know a matter of positioning way you have a a does that study a there is no.
What a huge inquiries by each of those you know jumping to date, you'll see this <unk>. This was never the situation and of course, it's not too.
That again.
Okay. Thank you for your time.
Thanks, Dave <unk> <unk>.
<unk>.
Thank you and your next question comes from.
From never come to market.
Yeah, Hi, good morning poll CRAD from noble capital markets, Good morning, or just money good morning content.
Can you highlight you're off hire days in the current quarter in fourth quarter that your planned right now.
You know holidays.
Yes. Please.
Well you must show did because you were showing that our historical average of about eight five days a year for vessel show, where we're shooting for four or five days there vessel.
For the remaining to be here.
And we have a scheduled the off hire days is too I mean for that I invested stupid that I talked as the the Athens. He's the one that is scheduled to be today, but we can't one vessels I did mention that Oh, we are evaluating whether to dry bulk it or not.
That's it from a survey if if we keep the vascular prostitutes survey then would probably have another thing dressed five days well there I go further throughout this year myopic.
Okay and would that be third quarter fourth quarter, sorry, Oh, I think it before well.
Okay.
Concerts can you just.
I wasn't.
Correct I'm following exactly what you're amortization schedule that you have can you just highlight how much amortization have currently right now for the third and fourth quarter.
And then you talk about potentially deferring 900000 amortization ended.
Hey, you know thrown it onto the maturity date as well can you just give me a little clarity or more clarity on that place we're talking about debt amortization.
Yes.
Sure So sure where we sit paid about a Friday as I mentioned 5.3 in the fair well like in the second Uh Huh.
There is 1.7, roughly 1.7 million that Oh.
They expect a week huh 49 million very likely wouldn't be before we hear from it seems that there's some their banking where were about to document to go through the documentation of it. So we would probably have to pay something like a it's kind of thousand amortizations the remaining govies year.
Okay, Great and then can you talk about attacks.
And your other costs.
Looking forward it seems like they might be a little bit higher than what.
Your run rate where has been can you talk about cost a little bit.
You mean.
Your marriage divorce, yeah operating costs and then it looks like you know maybe with the smaller suite your teenage per day, it's gonna go up a little bit.
Looking at just clarifying.
I think Greg I'm asking message was shown on slide 18 include the but it's actually not far from eastern deposit that lever so far Ginnie Mae.
So.
That is what we expect to see I mean, it's based on our budget and the saying are the same is true for your bearing expenses.
Okay, Great and then just to make sure that they insurance.
Collectible or.
You know insurance.
Proceeds would booked in the third and the second quarter and it was you know 2.7 million and that had a positive impact on your EBITDA reported 4.4 million correct.
Right.
Okay.
<unk> was the vessel.
This is really an amount or claimed good built over the last six months after the vessels or accident related claim. So you truly reflect the the and especially with your Kid during the first half of the here and it was collected he was finalized areas in the second quarter.
Okay. That's wasn't candidates in the second quarter no talking to first off in the second we kept well, let's think about 40% of the claim and the remaining what used to be collected as explained earlier.
The third quarter.
Okay, and then you highlighted that 4.4 million UBS.
Related party debt.
And I haven't maybe I've seen that maybe I missed it before but you're highlighting now that it could be paid shares. It's it's something that you know is a high power probability or likelihood looking for it or do.
You will you just continually pushed that out not acts and repay always shares are more do we'll decide to when you're when it comes to pay today do you at December 31st a this year.
It does not mean under certain conditions should the company can pay insurers.
Probably who will not baked in shares but a that used to be decided by our board.
Just before the the payment is to be me.
Okay, and and then when you talk about on you have 58% of the remaining 2000 2020 days.
Booked or committed.
Do you have been adverts right that's associated with those days.
Yeah, I mean, I don't have you can be a right I can't get back to you on.
Okay, great. Thank you so much.
Thank you. Thank you go.
Thank you and we now have no further questions.
<unk>.
Yeah.
Thank you. Thank you everybody for participating in the cool and we hope to be able to come back to you in Q3 with a good results a again.
With the goal we are having.
Having come a little bit beside the not totally behind us but.
Not deteriorate.
Thank you very much.
Thank you that does conclude.
All for joining you may now disconnect.
Appeal comes Ensco. Please continue to stand by your conference where begin shortly.
[music].