Q3 2020 Diana Shipping Inc Earnings Call
Greetings and welcome to Diana shipping 2023rd quarter earnings Conference call.
At this time all participants are in a listen only mode.
A question and answer session will follow the formal presentation.
If anyone should require operator assistance during the conference. Please press star zero from your telephone keypad. Please.
Please note this conference is being recorded.
At this time I'll turn the conference over to Ed Nebb Investor Relations for Dan shipping.
You may be good well, thank you, Rob and thanks to all of you for joining us for the Diana shipping Inc. Twentytwenty third quarter conference call.
Members of the company management team, who are with US today include Mr., Simon Kaleo, Chairman and Chief Executive Officer, Ms. semi Ronnie Polyols.
<unk>, Chief Executive Officer, and Chief operating Officer, Mr., Anastasios, Margaronis, President Mr. youngest Zafirakis interim Chief Financial Officer, Chief Strategy Officer, Treasurer, and Secretary and Ms. Maria Day, Chief Accounting Officer.
Before managements remarks, let me just briefly summarize the safe Harbor notice certain statements made during this call which are not historical fact are forward looking statements.
As defined by the Safe Harbor provisions on the private Securities Litigation Reform Act and such forward looking statements are based on assumptions expectations projections and beliefs as to future events that may or may not prove to be accurate description of the risks uncertainties and other factors that may cause future results to differ MACI.
Really from the forward looking statements are.
Contained in the Companys filings with the FCC.
And with that and it's my pleasure to turn the call over to Mr. Sun, Palios, Chairman and Chief Executive Officer.
Thank goodness [noise].
Good morning, and thank you for during year two day to discuss the results of Diana shipping Inc. on <unk> third quarter 2000 and blending.
Oh sure challenging year, one so where's the globe, you, where there's still feeling the effect or b, well and 19 pandemic.
And.
H and Bucks on People's lives and global economic activity.
Why and the recent developments and doesn't show up on 10. She has got true approaching and be me a them well free shipping they were locked down and you do a research or do we brought on a light on.
[noise] Church, moving Roche will continue to negatively affect the global economy, and the market demand for well wed wide shipping.
[noise] and he's gone through these uncertainties. The GAAP on TV every company has continued to bench true that's been years, who pulled and they might not justify and non coding services.
Our fleet and Oh got on or better price.
[noise] Bruce I'm on page on the 2020, and third quarter and Diana shipping reported and net loss of 15.2 million on your his daughters, and and net loss attributable to common shareholders of 14.6 million on your lunch.
For the third quarter of 2000, and Glenn and.
Looking at 6.8 million and Gerdaus impediment laws, which city jobs and from the agreement or try and be registered should that he has and quote on news.
This compares to net income from 1.8 million on your dollar and net income attributable to come on so orders <unk> point 3 million on your dollars and.
Reported being used and worked out of 2019 [noise].
Time charter and have been which were 42.3.
And your your dollars hobbies and go through 2000, and frenzy compared with 53.5 million on your balance on your same theater until 2019 [noise].
This decrease was mainly due to the sales. This is in 2019 and 2020 and to get each other it's time charter rates.
[noise] the bundle should remain challenged we thought on gosh, including average thinks that book value 94, and 4 million.
And your and your non that's had shut them down and that's the 2020.
We have taken share let us know your strength and our financial goals, you can use and Didier.
In July.
He pitches and not going to get them out.
Well do.
8 million and your thoughts on the outstanding senior unsecured bonds.
[noise] may recall that we also extended and tell you find on say let alone facilities during the check on import data, which then yeah and maturities.
[noise], where it is best to London's range and then there were agreed to sell the 2006 built vessel going on this quarter and your sales price Oh said on boarding alignment or you're gonna, it's because I'm sure.
Later that month, we agreed to settle and the 2016 and Red since you that age and G.S. holiday sales price.
Oh, 11 point and finally, when you're on your daughter's before income.
Oh, well as residents will be did you get on to the buyers late by January Grant is two sides and during Q1.
In conclusion, Joe what could be done that Diana shipping Inc. camp on few new navigate you pretty railing challenging Palm Beach and.
Why and then in Maine, and sharply focused on preserving and building shareholder value.
With that I will now turn the call already from price then Stacey Margaronis Jorge perspective in England sort of go do share here.
He will then be followed Oh on intending to find on for your long true and what I've done that.
And just your nikes who'll provide and more detailed financial overview. Thank you.
[noise] [noise]. Thank you Simon and thanks to all who have taken the time and probably to participate and they said quarterly conference call on the Diana Shipping Inc.
The dry bulk market has responded that there was and see it to be disruption and upheaval caused by default we'd 19 pandemic.
Yes, we'd be discussing further later on in this short presentation for.
And now we can look at the bulk carrier indices and compared where these and stood at the beginning of the year and that's what the levels. They closed last Friday November 20.
On January 2nd this year, the B.B. I stood at 976.
Last Friday and closed at 1148.
The Baltic Panamax index started the year and too.
1003 and closed at the end of last week and 1353.
The Baltic Cape Index was at 1646 on January 2nd and ended last week at 1435.
Yes, and I look at the net effect of Leap and then and then we have to get part and on the major economies of the world and its effect on world trade and where the growth.
According to Howe Robinson and the current recession caused by the call. We'd 19 pandemic is unique in the economic sectors. It has hit pockets usually.
These are the heavy and topicals good industries or in the case of financial crises. The banking sector. However, this time, what would normally relatively immune sectors, such as retail entertainment docs hotels restaurants have contracted by between 15 and 25 per cent, India, we see need during the first half of 2000.
He 20 and more things and then.
Why manufacturing mining construction and power utilities have been less hard hit.
I've got a culture and the financial and insurance industries have remained more or less unchanged, while ASP on grain movements I really see later on.
I would expect it to rise significantly.
According to the IMF, India, we see the world GDP will shrink by 4.4%. This year, mainly due to the call was 19 pandemic and Twentytwenty, one and I hope that growth will return and GDP growth and 41 doesn't hold we'd be about 5.2%.
No doubt these non personally by several times over the next few months, depending on developments with the pandemic and the vaccination process and is when vaccines, we become available to the world population and Nicole.
In the U.S. GDP is projected to drop by 4.3% this year and increased by 3.1% in Twentytwenty one [noise] indeed.
And the Euro area GDP is expected to drop by 8.3% and Twentytwenty and increased by 5.2% and 2021.
China's economy is now expected to grow by about 1.9% and 2020. According to the IMF.
Did you pick materializes.
And we'll make a China the only the Gtwenty economy expected to reported growth this year and.
Twentytwenty, one Chinese GDP is expected to increase by 8.2%.
Let's look at seaborne trade now and be probably 90. According to Clarksons. The COVID-19 pandemic is projected to drive a 2.3 per cent declining bulker ton mile demand over the whole year.
On the other hand, the bulk carrier fleet is expected to grow by 3.4% and deadweight tons. He.
He has already brought a weighted average about credit earnings down by about 22% year on year so far.
However, the trends there have not been uniform across commodity yeah.
Yeah, I don't know trade continues to be supported by strong Chinese demand, while grain trade. He's also set free calls from growth this year.
And the other and to be commodity spectrum cold has already seen shipping dropped by 10% this year and the minor bulk trade is expected to show significant declines in the full year.
Overall, if only from a rebound from the dry bulk trade is projected from 2021.
Demand is expected to grow by 4% next year and supply is expected to increase by only 1.5%.
Even though the lingering effects of any oversupply from this year could present downside risks clarksons believe that the supply demand for costs for next year will allow us on domestic rebalancing to take place in the sector, which should eventually bring from <unk> earnings.
Let's take a look and I don't know and now clarksons predict that world I don't know seaborne imports will increase by 2% this year and by further 2% and 2021 China.
Chinese seaborne imports have gone up by 11% during the first three quarters of this year, mainly due to the following factors first some news I don't know what demand elsewhere, which has seen cargoes diverted so to speak to China.
Secondly from steel production growth in China and from the decrease of availability of scrap steel in China, which has boosted the iron ore demand from Steve Mooney.
According to Banchero Costa total steel output in China from January to September Twentytwenty came from 783.3 million tons up by 4.9 per cent compared to the same period in 2019.
According to Commodore research balance iron ore exports remain likely to surge during the final few weeks of this year and first couple of months and Twentytwenty, One Howe Robinson concurrent with this view based on guidance provided by value According to which the company. We try heats up most to meet its target of 310 million tons for this.
Yeah I.
I went up and some continued by stating that future production by volume it we'd be sold rather than store, meaning that inventory stocks will be replenished at a considerably lower pace between 2021, and 2022, then see and deposits.
Coking coal now.
According to Clarksons global seaborne coking coal demand is currently projected to decline 10%. This year due to major impact to steel industries globally. As a result on the call with 19 pandemic.
For next year, Clarksons predicts and increase of shipments by about 7%, which will bring volumes shipped about 259 million tonnes worldwide.
This would be low where then what was important worldwide in 2018, and only 3 million tons higher than shipping seen in 2017.
Being called.
According to Clarksons global seaborne steep steam coal trade remains under significant pressure due to the impact from the COVID-19 pandemic volume traded this year and expect it to drop by 8% and come to 937 million tons compared to last year's one point or two 1 billion times.
For Twentytwenty, one clarksons predict an increase of four per cent compared to this year in China. It is widely reported that to meet winter demand of steam coal. The government is keen to boost domestic production rather than imports coal for that purpose.
According to Clarksons Chinese demand for imported coal is projected to decline by 4% this year and by a further 3% and 2021.
Turning to grain now.
Drops and sporadic that's worth keep on grain demand is expected to reach a record 506 million tons. This year, which is about 6% higher than last year and.
2021, and further three percentage increases projected taking the total to 521 million times.
China is projected to increase it simple, it's a week and coarse grains by 80% and 45% respectively. This year as Chinese day buyers have sought to bolster strategic reserves and stock price.
Clarksons believe that Chinese heap on grain imports are likely to continue to expand into 2020 one.
Based on demand from sectors, such as animal feed which are set to continue growing strongly.
The U.S.D.A. reported sharply higher soybean shipments to China in September and October, reaching about 2 million tons per week.
This is a number not seen since 2017 before the trade war between the U.S. and China and began.
Let's turn to some environmental issues and alternative fuels.
According to gifts and if the European Parliament has adopted the recommendations on its and about a mental committee made in July this year and the voted to include greenhouse gas emissions from shipping in the emissions trading systems from January 2022.
This means that the 2030 owners must reduce emission levels by 43% from 2005 levels.
According to Gibson.
Turning to fuse now ammonia is attracting interest as an alternative carbon free fuel.
They claim it is easier to stored and hydrogen, though it does present plenty of challenges and batteries and.
And there is some industry expertise when it comes to handling it on board.
However, the main barrier to it being used as a fuel and for shipping is that it is acutely focused on.
He's believe it and I'm only I can be used and if you sell in the conventional engine plenty of significant technological advances, though are still needed for ammonia fuse sales to become a viable alternative technology for shipping.
Maritime transport currently contributes about not having a 40 million tons of C. O two annually, which is doing a high percentage of global greenhouse gas emissions.
And rather small percentage wanting to take considering shipping his contribution to world trade.
Turning to crew changes and the effects of COVID-19 had in that sector.
Moving to the IMO, there and about 300000 seafarers on board the vessels and able to be to lead the spike in some cases, having served considering beyond the 11 months and limit stipulated by the maritime Labor Convention and.
Numerous restrictions and obstacles that prevent grew changes have created the humanitarian crisis and see according to the IMO Secretary General feedback limb and unfortunately, the rate of progress is not keeping pace with the backlog of ships requiring grew changes.
Let's look at the Newbuilding order book now according to Clarksons as of the end of September diverse 633 buffers on order globally with carrying capacity and 59 million and gross tons deadweight terms. The dry bulk order book has shrunk by 35% so far this year they.
There were 226 capes on order, representing 7.8% of the World fleet by deadweight.
About 365, Panamaxes and post Panamaxes up 200000 tons deadweight wearing the order book amounting to 6% of the fleet like that.
Total Bobcat and order book came to 57.7 million deadweight equivalent to only 6.3 percentage of the trading fleet.
A quick look at the price spread and very low sulfur fuel and the high sulfur fuel prices.
And scrubber fitted bulkers GAAP.
Toxins reported from the beginning of October they were 1257 Bulkers of 187.1 million deadweight or 20.7 per cent of total capacity fitted with a scrubber.
As much as 40.9% of Capesize capacities now scrabble fit.
Whoever the share of the past per fleet and the retrofit.
Had fallen 2.2% by October down from 2.2% in January this year.
By the end of October this year bunker prices on the world's Florida largest bunkering ports, Singapore, Rotterdam, Houston and from Jeyaraj showed.
So the average spread and approximately $54 per ton book.
It was up from $49 per ton earlier in the month.
Commodore research reminds us that at the start of the year the spread stood at approximately $358 per zone.
[noise], Australia, and China relations.
According to Braemar. It has been widely reported that in July this year used trailer and government back the call for it and independent investigation into the origins of equal on a virus and China's initial handling on the outbreak.
Your first reaction by the Chinese government was the imposition of an 80 per cent static from BOLI purchases from Australia.
Since that time Chinese power stations and steam and have been told to immediately stop using Australian coal.
Apparently.
And deadline was said November six after which they all coal from Australia, reaching Chinese ports will not be eligible for customs clearance.
Well steel and coal shipments to China are likely to remain depressed for the foreseeable future and Australian coal is being resold into different markets.
Chinese buyers are looking to other suppliers of high quality coat, Russia has been one of the suppliers, but that's been unable to increase production fast enough to satisfy Chinese demand.
This could translate to more long haul trades from Canada, and the United States, but will also increase the flow of overland coal volumes into China from Mongolia, something we have seen already take place from September on what.
According to Commodore research on to the end of August this year, China imported 46% of its coal imports from Indonesia, 32% from Australia, 10% from Russia.
Seven per cent from Mongolia, and 5% from the variety of other exporters.
Tender marked a dramatic change with 50% so sourced from Russia, and 28% sourced from and go here.
Australia and imports have been reduced dramatically.
Question on remains if I don't know and natural gas will also be affected and I think deteriorating trade relations between the two countries.
A quick look at the age profile of the fleet. According to Banchero Costa about 10% of the trading fleet of Panamaxes is over 20 years old and.
And 14 percentage between 15 and 19 years old.
The age profile of Capes is better only 2% over 20 years old and 10% of between 15 and 19 years old.
We need to keep in mind that due to their trade cases have a life expectancy that is between three and five year shorter than panamaxes and the cash and Max.
Let's look at demolition now according to Banchero Costa at least 85 units on a combined 11 point 26 million deadweight have been sold for scrap after the end of October this year net.
This is 98% more tonnage compared to the same period last year apart from the case mentioned below NAV.
These numbers include the seven Panamaxes as well as one post panamax vessel and the rest was smaller ships.
According to Braemar, the case that sector has seen the highest level of scrapping so far this year and about 45 vessels have already left the trading fleet. We have total carrying capacity of 10.6 million deadweight. This.
This represents and deadweight terms about 78% of all dry bulk removals, so far this year.
On the fleet the numbers now quoted the bank there of course and net fleet growth. This year is expected to come in at around 4% why for 2021 and is expected to drop to 2% number slightly higher than what we mentioned earlier.
The Capesize fleet is expected to increase by 5% this year and by 2% and 2021 similar numbers are projected for the growth of the Panamax fleet, which are defined the ships up to 85000 beds.
And new building contracting in the first 10 months of this year at least 86 units of 7.34 million deadweight reported contract. This.
This includes 15 case eight post Panamaxes and 19 Panamaxes. The rest were smaller ships and there were noviello sees order.
Lets finally turn to the outlook for our industry, we agree with gifts and she broke or is that a freight rates and should move higher this coming quarter based on the investor interest in China, leading to increased seaborne volume and demand.
According to Commodore research, the Capesize market needs plenty of extra iron ore volume to import from express and planets, Fortunately Chinese iron ore demand prospects remain very encouraging and value recently has been indicating as mentioned above that but only its production, but also sales volume we fared well in the near term.
From grain shipments during the new grain shipment season should also help underpin panamax and post Panamax earnings over the next few quarters.
The statistics and four costs mentioned above make us reasonably optimistic as regard the prospect of the bus scattered industry for next year.
I've been consistently the case, thus far we and Diana shipping will protect the solidity of the company's balance sheet and make the best use possible low funds received from the recent sales of tonnage. That's has been the case over the last year or so.
We anticipate that and less heavy newbuilding contract and resumes next year the market. We finally get a much needed boost in earnings on.
On this note I will turn the call to our interim CFO youngest up here and he will provide us with the highlights from the third quarter and nine months Quentin Quentin.
I mentioned.
Thank you.
[noise]. Thank you Stasi.
Good morning to everyone I'm pleased to be discussing two day with you'll be diameter operational results from the third quarter on a nine month and at September 32000, and Glenn.
During the third quarter, we recorded a net loss I'd give you the equivalents so holder, so $14.6 million or zero 17.
<unk> dollars per share.
And thought to include that and.
And impairment, who lost shelf fix growing day $3 million Oh Wow game, a US you are probably aware in 2019, we sold six of our vessels from day in the third quarter of 2020, another two which are about to be delivered to the new on those.
And that's because the ownership days this.
This quarter to three point.
Seven on mine and 3007, well on nine sort of Honda and 19 compared to 4000 zero 27 for the same quarter in 2019.
The fact that we had less the ownership days.
And together with the D. theater range with a market conditions.
Led to lower revenues from $42.3 million compared to 53.5 million and.
For the same quarter in 2019.
Voyage expenses were two and $2.9 million compared to $3.3 million for the same quarter and 2019.
And.
The decrease in revenues should resolve and two degrees the daily time charter equivalent on rate, which was up from $10735 compared to 12000. She founded on 80 882 for the same quarter of 2019.
The fleet utilization was 97.3 per cent compared to 99.4 person on the same quarter last year.
During the quarter in discussion on vessels operating expenses decreased to 21.3 million compared to 22 million on all of last year.
Now of course on the total number of operating expenses was lower than the previous year.
And ER, which is why the daily operating expenses were a increase to 5732 compared to 5004 other 58 for the same quarter of 2019.
Everybody has to understand that this increase is mainly due to increased crew expenses and.
In other COVID-19 related issue.
Our general and administrative expenses increased to 9.5 million compared to 7.1 million and for the same quarter last year.
And this was mainly due to one or two on on one off accelerated vesting of restricted share, which resulted to increased compensation costs on the district and force.
Based on this is that the stock of other bus.
On the other hand, we are very satisfied that interest and fine on course seamless decreased and this quarter due to the decrease in interest rates and degrees of it is that.
And that was strengthened by the other pets are so the 8 million of Oh now for the month and the nine months ended September 32000 granted and net loss attributable to common stockholders amounted to a from a $31 million or one point, 53% and again. This included the comment on.
Zero 2.5 million impairment loss on 1.1 million loss from a sales.
Oh vessels.
Time charter revenues decreased to 127.1 million on compared to on 69 169.2 million for the same period last year.
And that was due to the same managers book, we mentioned value.
Similarly, the daily time charter equivalent rate decreased to $10900 per day compared to 12.
<unk> thousand 961.
Oh from last year.
Oh again fleet utilization on the was up 97.3 per cent compared to 99.2 per cent I mean 2019.
And that was Ah you to expand the delays face on force you to go with 19 issues.
ER and other increased number of dry docks scheduled dry docks that we thought for that period.
Vessel operating expenses amounted to 63.4 million on compared to 67.2 million.
And for 2019.
The decrease in operating expenses was due to the decrease in ownership days and was offset by increased operating expenses.
In insurance is from sort of person on taxes.
Value.
And your operating expenses in 2020, where a 5000 she's going to affect the mine compared to 5003 kind of 67 for 2019.
The general and administrative expenses again, as we said earlier regarding the per quarter.
For the nine months from increased to 25.7 million compared to $20.8 million in 2019.
And as I said, the only other up but that was because of the accelerated vesting of restricted sales of board members, which was due to the companys restructuring in 2002, NPL and niche completely separate from from performance shipping.
Interest and finance cost amounted to $16.9 million [noise].
Significantly lower compared to 22.7 million on well slots here and.
Again, we are very satisfied with up thank you for your attention and I would like now to turn the call to the operator, who will instruct you as to the procedure for us good questions.
Thank you at.
At this time, we'll be conducting a question and answer session. If you'd like to ask a question today. Please press star one from your telephone keypad and the confirmation tone indicate your line is and the question queue.
When it first started to feel like true love your questions from the queue.
Proficiency and speaker equipment, maybe necessary to pick up your handset before first and start keys.
One moment, please while we pull for questions.
[noise]. Thank you Sir our first question comes from the line of Randy Givens with Jefferies. Please proceed with your question.
[laughter].
How do you seem Diana how's it going on.
Hi, It on day.
And and great to hear your Ghana, some in hope you're feeling well.
Thank you very much sales I'm doing very well and indeed [noise] down.
Sounds like a good deal well you know looking at your fleet. You know you recently saw the series G. S. The Chronis you know what will you do with the proceeds and and maybe any plans for additional vessel sales here and the and the next few months.
[noise].
[noise], yes. It is our intention to share some of our older. So I'm not sure who have not decided yet which for US is we're gonna be selling in the next quarter. So I definitely were talking about one or two vessels to be sold in the next quarter.
Good thing is that are now selling out of us and she is a conscious decision that we do not because we have other plan for the money and.
And that we're going to get and here, we are not a price by anything to do show. So we think that are taking it slowly [laughter], we're going to have a good average I'll go to GAAP the sale of our vessels that they are Oh fall.
The vessels that they have been a and b the many years ago and of.
Of course, they are on the first candidate as well as the vessels, mostly on mortgages as we speak.
We have not true as I said other beginning and made up our minds, yet which is we're going to be selling during the next quarter, but oh, we will know soon.
Okay.
And then I know you and in July you repurchased 8 million on those unsecured notes and but non and and maybe the recent months, so and that a target here for use of cash going forward is it. The this the unsecured notes as a common shares is it just kind of keeping it on on the balance sheet and a more defensive posture.
And.
Yes, we're going to take 'em again and defensive and.
Position. So the first stop soon of hours that we are considering used to keep them on their side as well.
And I'm, taking them again on order and then the second and also needs to buy back on our bonds parts of our bomb. The third option is to buy back our sales and the forethought and.
We used to buy from.
And more vessels.
Uh huh.
Again.
I I want to stress to have your attention in or what I was saying earlier about we are the rule and so far destiny and we're on a in a very strong position to to have the option to decide what we want to do with a cash would be very simple to held for sale et cetera and.
This is the best positioned that a company could.
Could be as we speak today.
Okay.
That makes sense and I guess, one quick modeling question, you know GE and I fell pretty materially from the first quarter to the second quarter, but then increased again in the third quarter. So just trying to get on modeling guidance I guess for the fourth quarter and and 21 for DNA.
On the us are we.
And then be in my speech and we have.
The third quarter numbers like you show they were highly encouraged because of accelerated vesting of and accelerated vesting of sales force.
Of two board members and they have left a company and I'm also accelerated.
Share so from a company owned by Mr. Palios because of the restructuring that we said.
But we have to do and the fact that.
We have nothing to do now with.
With the foremost shipping and we are completely separate.
So are you from not expect to have this type of a and C. A nice I would suggest that are gonna be they are going to look like a a lot like the first quarter of 2019 or others on Uh huh.
But other than anything else.
Got it all right well that's it from me, Thanks, again, and a happy Thanksgiving from here on the U.S.
Oh, you try and do you.
Oh.
As a reminder to ask a question today and me press Star one from your telephone keypad.
The next question is from the line of Omar Nokta with Clarksons Plateau, and you see as your question.
Thank you hi, guys and I just wanted to maybe follow up on the on Randys questions about the you other than that and and whatnot and it was helpful and I think it's fairly consistent with what you said earlier in the year about the options you know you've got the cash you are live on the balance sheet option. One then buy back to Bob.
And then stock and then ships I know that you mentioned 8 million buyback about Norwegian bonds in July and I remember from the last call you had outlined your adjusted debt repayment schedule, which would be 10 million a quarter from each of the third and fourth quarters and then a toll.
Gross 40 million and and 2021 is that relative that still relative with the same amounts or as we look here for fourq <unk> for the fourth quarter and for for next year.
And was that this quarter.
And he.
The maturity is a two day as we speak we're talking about.
In 2021, we have zero maturities and then the only thing you have is amortization of debt and in 2000 and to the 22, if we do not exercise the option that we probably no yeah, there's going to be out on the from a million dollars of course, you have to understand but most probably there not be on.
Okay and is going to be exercised and our main target now ER and and we have to see what we're going to do and we will start from the beginning of next year is to try and bring forward.
Everything we have Oh of course 2023 that are we have a maturity of the bonds as well. So we will be very often to GAAP and spoken and this is one of our targets I know that someone on making sure that 2023 being a far away but.
You know, how we operate and and we will price.
Wow to maybe make it better and we will start from the beginning of next year.
Oh thanks.
Thanks, and for that and and maybe I'm just a true.
For clarity you mentioned I know that the north day loan and or the bank facility. Due in 2022, there is an option teacher and you mentioned, it's 100 million and that's due if you do not exercise the option.
Yes, it's a the maturities for 2000.
[noise] and 21, and Saudi from 2020 to each other and $8 million.
And we are talking about a low they are having $42 million or even much. If we do not exercise the option in March 2022, but we have no reason to believe that this is not gonna be exercise and accepted by Nordea.
Okay. So that would that would if everything is exercised and approved and that would imply something closer to maybe 65 70 million.
As a standard okay.
Okay and then just one one other question just on the Yeah, Randy mentioned the Corona send the SIDERIS vessels that were sold are those still on track to close on the in the first quarter with roughly maybe 17 18 million of cash coming.
And we are trying were trying for the one vessel to finalize and completely re sales during the fourth quarter of 2020, Everything's up we have a good probability sort of achieving that.
And the next one on it looks like you're being on the first quarter of 2002 and the one.
Okay. Thank you got it.
Right that's it from me.
Thanks, guys.
[noise] [noise]. Thank you.
At the simple I'll turn to flow back to management for closing remarks.
[noise] strength again for your interest in and true for two Diana shipping we look forward to speaking with you in the future. Thank you.
And this.
This will conclude today's conference you may disconnect. Your lines at this time. Thank you for your participation.