Q4 2020 Safe Bulkers Inc Earnings Call
Yeah.
[music].
Thank you for standing by ladies and gentlemen, and welcome to the Facebook. This conference call to discuss the fourth quarter 2020 found out she was out.
Today, we have with us from safe bulk of chairman and Chief Executive Officer, Mr. Polish How did you Wanna President Dr. Lucas from borrowers and Chief Financial Officer, Mr. Konstantin of other my Palace.
At this time all participants are in a listen only mode. There will be a presentation followed by a question and answer session at which time. If you wish to ask a question you will need to press star one on the telephone keypad and wait for your name to be announced.
Following this conference call if you need any further information on the conference call on the presentation. Please contact capital link at 2126617 and 566.
And I must advise you that this conference is being recorded today.
Before we begin please note. The this presentation contains forward looking statements as defined in section 27, and eight of the Securities Act of 1933 of the mandate.
Section 21 E of the Securities Exchange Act of 1934 of the amended concerning future events, the Companys Grace stretchy and measures to implement such strategy, including expected vessel acquisitions and entering into south of the time charters.
And that's such as expects intends plans believes anticipates hopes estimates and variations of such words and similar expressions are intended to identify forward looking statements.
For the company believes that the ex.
Although the company believes that the expectations reflected in such forward looking statements are reasonable and never chevron's can be given that such expectations will prove to have been correct.
These statements involve known and unknown risks and the based upon the number of assumptions and estimations, which are inherently subject to significant uncertainties and contingencies, many of which I'll be honest the control of the company.
Actual results may differ materially from those expressed or implied by such forward looking statements.
Factors that could cause actual results to differ materially include but are not limited to changes and the demand for dry bulk vessels competitive factors and the market and which the company operates risks associated with operations outside the United States and other factors listed from time to time and the company's filings with the securities and exchange.
Commission the.
The company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward looking statements contained herein to reflect any change in the companys expectations with respect to or any change in events conditions or circumstances on which any statement is based.
And now I pass the floor to the Doctor Bambara. Please go ahead Sir.
Good morning, and Lucas for the bodies, but as it looks safe margin.
Welcome to the conference call and webcast to discuss the financial results for the fourth quarter of extreme strength.
Starting all of presentation and slightly.
Like to express how the good attitude to all of <unk>, hoping that we think 'twenty 'twenty, one and we will reach a point that all the efforts of the global community to produce three dimension vaccines will conclude and the <unk>.
<unk> will be controlled.
The AMC, but this has become mission you have total of the net and the glad Asia.
We have joined the global coalition and signed by more than <unk>, the combination of organization and the shipping industry the share initiatives and actions and putting the crew change Ashish and repatriation of ownership guidance.
We are committed to the safety and well being of occupiers, while excluding a stronger and my time supply chain and the.
And <unk> got up and flow of gourmet and around the world.
As a general comment for 'twenty and 'twenty, despite the negative effects of COVID-19 the.
Companies, maintaining strong liquidity position and provides us with flexibility and this volume if Glenn which in the first place and space and archived for keeps up I missed the sleep testing two out of 42 vessels with built in advantage of standby a moment of true footprint compared to the global dry bulk fleet.
And said this is Jamie and good evening and good that's really the new altra.
The fleet, we set of Shaw of.
<unk> and environmental changes and sensibly deleverage, our balance sheet targeting to create value for our shareholders and be the leading quality of dry bulk company.
Management alignment with shareholders and the performance and crush the built over the years out of there by the amount of importance and the success of this plan.
Moving on to slide five and the industry section, let us analyze the market conditions.
The recent comments about the seen announcements of broad optimism in the global freight markets.
Together with the underlying demand.
The good and present the development of the charter rates for Capes and comes from Axis as published by both the good safe.
Both games and final months of discovery Guy that's after the low prices a couple of 'twenty to A&P.
Which was mainly due to the COVID-19 outbreak.
When it comes to the marks of the market is trading above the USD 10000 seats June 22, A&D and the more impressively, especially the trading and the return of 17000 or more which the exceptionally strong given the seasonality low market. The during the first quarter of each year.
Similarly for Capes the market the big three times as of June 2020, where the most of the recent in January of 'twenty 'twenty, one when it reached the 25000 per day.
But essentially the market the slower and it's sitting at about 11000 and for Capes. However, the gasoline face since the market levels closer to 20000 for the remaining of the year.
The resumption of economic activity and the sales volumes of iron ore coal and grain the.
The major drivers of this of surge on right now.
19, you Silicon and said, although acceleration of vaccination.
And lastly controlled and of this pandemic.
Turning to slide number of ships, we present certain aspects of the saying this activity.
Indicators of the open et cetera, the market conditions.
The iron ore imports of sign ups have been the driving force of the Cape market and the during the course of 2020 were up nine 3% year on year, despite despite finishing lower towards the end of the year.
Regarding the thermal coal imports as shown in the midst of good afternoon. So a big surge of imports during the end of year at the inaugural increase of one four per cent for the whole calendar year.
The year of 2020.
The high demand for thermal coal, especially towards the winter months has been reflected in the Panamax and Thompson I'm excited and markets.
It is important to analyze the drivers of this big surge and demand for the settlement of a cold.
As presented at the bottom graph, we see that the bumps and Edison in mainland China in December of 'twenty, two and he jumped by 15, 4% and Martin Botha and by 11, 2% year on year.
Most importantly, the total China power generation was up 4% year on year, reflecting the overall economic development.
And the demand for Panamax and <unk> is expected to remain firm and.
Turning towards the Green infusion of ex Bush ex East Coast South America.
The grain harvest of this year and is expected to be remarkably high and essentially the months of biomass and it comes out of much of it is also expected to be higher.
How big of a life of the three important drivers for the.
The demand next step and now turning to slide seven and what would present the Panamax order book as a percentage of the existing fleet for the less than five years.
And I didn't see the order book for both the Capes and Panamaxes and the lowest since 2002 in combination with the 20% of sleep being over 16 years of age.
Moving on the slide eight we see that the remainder for of 'twenty 'twenty, one and the new orders are above 3% of the existing fleet for Capes and three 7% for the Panamax and <unk>.
I'm sort of matches.
After 2022 and the other is the main the minimal taking into account the aging the aging of the fleet because cash is possible that the scrapping activity will increase.
It is also important to note that the shipyard capacity is presently covered with all of this of other sectors, such as container ships and tankers on top of that youre going and bedroom and the discussions for the emission and <unk>.
Kind of both aviation and definitely do not index New August.
Turning to slide nine we present the latest developments on the <unk>.
The markets.
During 2020 due to the pandemic and the world wide Lockdowns and the demand for distillate products dropped and there might be.
The ones at the end of 2020 and the year to date the has been gradual reopening of the economies.
The intent of stimulated the demand for oil and distillate products, leading to higher prices.
The futures market of Banca as indicators of sustainable spread differential between the aim of 'twenty, two and the compliant fuel the very low sulfur fuel oil and the three five but since I said the pure Lloyd the so called high fives.
Tony and the grass and according to <unk> and two IC ear of both center of the spot price for the high five using the region of one side of the 30 ton spin and what have you said the dollars per metric tonne weighted for the remaining of a calendar 'twenty one 'twenty two and 'twenty three is fading of above 100 and <unk>.
And the dollars the spread differential of about both of the current ready, but the metric ton for the what's the Panamax vessel.
Which on average it's been sort of above 7005 thousand metric tons per year of described the feed it could be the insulated to a good game of about $900000 per year for them.
About 2.5 thousand per day.
Let me remind you that the all the company in the vessels with scrubbers and has already retrofitted scrubbers for a couple of our fleet.
The recovery of the global economies.
And the distillation of mobility and the recovery of crude oil prices may boost this the high five differential to pre COVID-19 levels.
Let me summarize the ship and the key market the takeaway from slide 10.
We have experienced in the exceptionally strong start for the 'twenty 'twenty, one with healthy volume and provided our north coal and grain trade as the recent COVID-19 vaccine used for road optimism and global markets.
For the trade tension between China and Australia.
The global Lockdown has adversely affected demand for oil and this is the viewers and we may have a slow oil demand rebound as global lockdowns ease with the sorry the if.
Non of mobility, which will eventually may lead to the recovery of Brent prices and driven and why did a high five spread the financials.
We have the lowest order book since 2000 to US is the ongoing and we've got one aviation discussions do not favor of new orders and the aging of loot and the increase of environmental recipient for the emission from manifest the scrapping activity and the <unk>.
Lastly on the PUC the gets have developed the elemental efficient vessels.
And slide 11 represent of our fleet growth over the last years.
And the next context in the appendix of our fleet strategy, we have entered into agreements the wired to Japanese built off of the science ships, which are designed to comply with it with the energy efficiency design index phase III and the tier three in relation to Nox emissions and we just get with scheduled delivery.
Dave first half of the.
2022, and third quarter of 2022.
But it isn't the only a few shipyards have developed this new antivitamin the efficient designs at the same time, we have agreed to sell two of load all the the best since 2000 and at three and 2000 and for beef.
The operations they want and immediately with the 22011 built Japanese panamax at the modest price differential. It is important to note that all the growth is gradual the gabonese had never ending to share that our orders ex have distorted the supply side at the same time, the Gaba and if I skip a pay rate of growth even at loss making market.
And the cash invested all of which in the forefront of the technologies and ahead of the competition.
So I think the slide 12.
I'd like to focus on the on our fleet mix and.
Wiped out the 75% for about fleet is Japanese vessels, 46% of the World Fleet.
Providing us with the lower environmental footprint overall lift the variations and of course the build in advance.
And then more as shown in slide 15 directly only a small number of vessels compared to the Bartlett is built with E. D I index.
We believe that we can identify and less efficient and versus those that are not built in Japan and the.
And all the designs before going to day.
And we expect that such vessels and we finished increased restrictions and the additional growth for carbon emissions, DOCSIS and making them less attractive less attractive for the following years.
Actually it doesn't and slide 14 safe August and the context of each element of the social responsibility policies has ambitious ahead of competition and other took significant environmental investments and new technologies and modern design and energy efficient vessels for an aggregate amount of 67, and one 2 million as of December 5th, especially and strength.
Already retrofitted all go into about scheduled scrubber installations with and additional scrubber order placed in 2021 and two.
Safety of our versus our ordinary already approved with the ballast water treatment systems.
At the same time and funding our fleet renewal strategy, we have placed two orders for our greenhouse gas and E phase III and globally for 2022.
Now, let's move to slide 15, and what do we have plotted the BPA in the special market performance and outlook price the.
The correlations historic has been very strong and good things in the correlation of the government due to trade war and during 2020, we have seen for the gapping due to Covid pandemic.
At the present, we believe the tariff stuff is trading at levels lower than the southern market the floor of us.
And now let me summarize our key points for safe buckets.
While the pure dry bulk fleet.
Without the share should have a history of 60, yes, plus or the uninterrupted presence for the dry bulk market.
All of the management team has more than 30 years of experience and continuous presence and the dry bulk index.
We had here for the longer that we preserve our liquidity, which provides financial flexibility security and deadlifts and opportunistic asset acquisitions.
The spot market exposure allows expansion of profits and we'll talk to the market conditions.
We have a lot of good 58% of 2021 fleet days startup and the beat of <unk> 68 per cent of week of index linked and joined the improving charter market conditions.
About 75% of our fleet is up I need to build for providing us with lower environmental footprint lean operation and of course building the advantage from the scrubber fitted vessels based on increased fuel spread differential.
We have actively standard the environmental preservation and the health of our competitive strategy by investing more than 65.002 million 19 in 'twenty and 'twenty net.
The trading 50% of our fitted with exhaust gas cleaning devices the skirt.
Robert.
Okay.
Items with extra income capability investing oil price environment.
Management team has skin in the game that offers full alignment with shareholders. We have demonstrated twofold fleet to the U S strategy.
The one.
Looking towards plenty of therapy with ordering getting jobs done EBITDA phase II Nox tier III debt.
And on the other fans and capturing the present market by opportunistic secondhand acquisitions of replacing all the vessels at the a modest differential.
And at the same time, we continue with the gradual delevering of the company now I will pass the floor to our CFO for signature the multiple of floods the analysis of our financial results. Thank.
Thank you Luca and good morning Doyle.
Let me start with our chartering of the four months implied a day, where we present the quarterly time charter equivalent rate.
Stood at 12015 $319 vessels, our quarterly Opex for the <unk>.
Same period, which stood at $3978.
Moving on to slide 19 represent of our quarterly daily Opex.
The restaurants are quarterly daily did and they would stood up 1000 and 406 to $9.
The aggregate figure for both Opex and G&A for the last quarter of two and it Randy was 5470.
For the for $5447.
And then we're setting our focus on the nobody is from so we believe the this number for both Opex and G&A when comparing the Apple Docker is one of the industry's lower if not the lowest given the fact that were included in this figure or a dry docking and be the liberty of expenses and.
It also and our DNA out of management fees, and directors and officers compensation and all expenses related to the other ministration of our company as a public entity.
Moving on to our debt profile I've seen the slide 20.
We present, the other payments schedule as of net of the year of demand for 'twenty.
Total liquidity at the end of the year, so that $171 $2 million.
Consisting of cash and bank of time deposits the stick discuss contracted undrawn borrowing capacity.
The revolving credit facility and secured commitments, including sale leaseback financing.
And slide 21, focusing on our liquidity relative to our capex commitments.
As of February 12, we had liquidity of over $184 $3 million moving.
These include the Gaza cash equivalents time deposits restricted cash funds available under the sale and leaseback of agreements new Tam of loan agreement and the revolving credit facility.
And I didn't get the remaining capex for the acquisition of the total new blades as well as of the secondhand vessel were $64 million.
And with $12 6 million on his view.
2021, and the remaining $51 4 million in 'twenty and 'twenty two.
And slide 22 represent the debt amortization schedule the vessels the scrap value of our profile of our fleet.
All of a small.
Battery bearing and the profile for the next two years gradually the deleveraging our company.
Let's now move the slide 23, with our quarterly financial highlights for the fourth quarter of 2020.
Back to the family of over 2019.
Other than the our notes during the fourth quarter of 'twenty directly operated and a relatively weaker charter market environment with low in a way of doing any of those expenses compared to the same period and 2019.
While our revenues were partly supported by the addition of learnings from scrubber fitted vessels the operator.
And of one additional vessel.
We took delivery back in April of 'twenty, and 'twenty and.
Also from the reduced the mortgage expenses.
The net effect is reflected in other abuse TCE of $12319.
For the fourth quarter and two of 22, and this compared to 17000 and $770.
The same period in 2019.
Net revenue decreased by 2% for from $53 2 million to $52 2 million.
Mainly due to the use of TCE because of the weaker part.
The market.
The offset by the additional revenue and by a scrubber fitted vessels and the additional vessel delivered in 'twenty two and.
Daily vessel operating expenses decreased by 22% to $3978 for.
Per the 5100 and if it goes for the same period and 2019.
The decrease is associated with the reduced dry dockings and provision of technical services.
And the increased growth and by the answer and expenses due to the.
Covid pandemic.
Daily running expenses, excluding dry docking and visited with the expenses also decreased by 13% growth.
<unk> thousand nine kind of $55 for the fourth quarter of 'twenty 'twenty compared of 4000.
$540 for the same period and 2019.
Our adjusted EBITDA for the for quarter and post 2020 increased of $26 3 million.
Compared to 23 point of 1 million for.
For the same period and 2019.
Our adjusted earnings per share for the fourth quarter of two and as Randy was for that.
And ladies and the weighted average of 100 points to millions of sales compared to one share in 19.
Calculated and the weighted average number of 100 point to $102 6 million sales.
Well the table of slide 24, we provide the estimation of the expected downtime and.
And Q4, 2020 and fuel one 'twenty 'twenty one in order to assist the analysts were there.
The actions.
Closing our presentation on the slide 25, we present, our quarterly flow data the average daily indicators compared to the same period last year.
We would like to emphasize that the dispute we have worked extensively despite the tough market conditions.
And we have completed the order of foods. Upon these modern design and technologically advanced new builds with delivery in the first half and third quarter of 2020.
And with limited impact on our liquidity by agreeing 90 per cent financing for the sale and leaseback agreement for one and.
For meeting our term loan facility.
Facility for the other ones we.
We have sold to all of our oldest vessels built 2003, and 2000 and for us.
The other attractive prices and immediately agreed the acquisition of 2011th of and it's built vessel day.
Please proceed to two of our vessels with limited the Mark on our liquidity.
Well have a strong balance sheet with comfortable of evidence. It's most of the profile for this and for the next year and.
The liquidity position of $184 3 million as of February 12.
And finally, we took measures to protect our seafarers and sort of employees' health and wellbeing and kept all of our vessels sailing continuously servicing outside the us.
Once again, we'd like to thank our seafarers for their commitment and dedication throughout the stock video.
And drive the industry sedan sales to efforts for the living and preserving the word being a lot of semen.
Our press release presents and more detail, our financial and operational results and we are now open to take your questions.
Thank you very much ladies and gentlemen, who many of you wish to ask a question. Please press star one on your telephone keypad and wait for your name to be announced our first question today is from Randy given please go ahead.
Ah the gentlemen, how's it going.
The site.
And.
Hey, I guess.
A few questions looking at first.
The agreement for the acquisition of the 2011 and built you know the.
The panamax there what are the thoughts behind that in terms of the ages and also comparing that with the recent announcement for the two new builds and you know of over additional vessels on the water, so kind of comparing and contrasting.
10 year old vessels and and new builds.
Yeah.
And the seven was the non not the time when we sold.
Two of the older ships of the company the all three of the all for vessel.
And the small no premium and we manage the buy and they live and built vessel.
Before prices start rising.
And in which case and in which case, a with a small increase where the newell the H factored by the ideas.
And then you build some more long term and my investment and new and new regulations and the new.
The energy efficiency environment.
And that would be delivered in the middle of second and third quarter of 'twenty and 'twenty two.
Which is.
And it was done ahead of the game in order to have a good day Liberty Helios because.
Right now.
The deliveries.
The fully booked on the team.
And 23, so it's the difference is the flip of the new all of these is twofold for fleet renewal.
It's partly sending all the ships and replacing them with the younger ones and the.
The replacing them with the brand new new technology the vessels.
Got it okay.
And then I guess also looking at the repurchasing of the series a right what is the.
Kind of thought process around that and the savings with that would you look to maybe started dividend or kind of what is your thoughts around that incremental capital that's not being paid out now and the C V day.
It looks that of course the.
The financing of for the new build the bedroom, let's say in the ratio of which and it was done the three years ago. So we thought it was the time to.
And to call it the to redeem it and and its place with somebody finance the vessel the way.
Standard leaseback transactions increase and also of liquidity.
Yeah, the minerals and the liquid.
And I see the industry, resulting in the wheel.
I mean this is circle.
According to our strategy to into the increase our liquidity and be more flexible and the market now having a the.
And she would have the substantial liquidity for the budget flexibility.
<unk> seen for other acquisition and for future orders and I mean, the for whatever so this is the the thought process for the.
For redeeming the preferred the a.
And but at the script.
The stock that was issued by one of our subsidiaries.
Got it and then in terms of maybe a potential dividend at some point or are we still maybe too early in the AR and the up yes.
Yes, and cash of the potential dividends debt.
At the very safe I mean, there are two.
Yeah, let through first of all and the management of the has about 50% of the company. So the basic I'll get of the family is to create the management of to create.
Baidu for shareholders and to be able to restore the dividend and the second point is that the we just the I mean, it would have come out of.
Several years, so very true, but markets and even the last year.
It is profitable at the end, but it was overall and not profitable and so we need to see let's say the development of the market entered two to be able to communicate more sustainable.
With the market in order to to consider additional dividend, which always is at the end of the day the target.
Of each one of the investments in the A&D company, including Uh Huh.
And and good including the hours monitoring and basically the.
The fourth quarter of 2020 was the first profitable quarter after the very but the first half of 2020 and the breakeven for Q3.
The company Yeah.
Shows up.
Both of these profits and it's our stock price is bouncing back after the after the freight rates.
The west So we are adjusting of very fast the tools.
For the new environment and turning of the losses of COVID-19 into profits. So if things develop like Oh, we expect incentive the way into one we will have more profit double of Corpus and then it will be more likely to go and see the how we distribute the funds.
Yeah. The completely makes sense, we are expecting a many more profitable quarters and so we can have some patients on the dividend. Thanks so much.
And thank you. Thank you.
That's the reminder, at still one of you wish to ask a question. The next day from Ben Nolan from Stifel. Please go ahead.
Yeah, Hi, this is Frank galanti on for Ben.
For my first question and I just wanted to ask a.
Kevin.
I guess the that's the.
The sales and a buyback or.
The instead of the fleet transactions and then the ordering of the new vessels, how much dry powder do you think you have.
And.
In order to grow the fleet without tapping the ATM.
Thank you Sir.
There is some dry powder and theres more to be created by possibly selling.
And then 'twenty 'twenty one.
Couple of more of the older ships.
Replacing them with the younger tonnage.
And for the most important the stool shift to how much of the profit sort of all of <unk>.
Two for will be developed and although the market is developing and a nice way.
The freight rates stopped.
And the increasing meaningfully for the first two months of this year.
And believe that all of our Oh, the proceeds are will strengthen.
And Bob.
And we have to bear in mind that also the company wants to do.
Deleveraging because of all of it is.
Long term sustainable and and all.
Profits and dividends for the shareholders and not making.
Two of three quarters of dividends and debt.
With both of them when the markets are.
Changes so we want to at the same time and de lever and one of the way ways to deliver it is true.
As of the market. The increase has said many of the older deals of ships and replacing them with the U N of one source, but the who.
We'll be debt free and the plan the right now for the new acquisition is to remain debt free.
That's why we win and it sounds.
Contributing to the.
And to the earnings.
Much of the two all the ships were contributing.
At the at the.
The same time, so it will be a combination of factors slipped the will decide the things we're very optimistic as in some of the moment.
Because of the dry bulk market is getting out of a very bumps.
The situation we have the depression of 2015 2016, then with all of the trade War and 2018 when the market starts improving then in 'twenty and 'twenty without the COVID-19.
And so as the major events in the last six years.
Right now we are happy that the as I said and the puzzle of it.
And there's not the boxing without the good thing the coming all of these crises of resulted into very little ordering of new ships.
And we have one of the lowest order books of the last 20 years the.
This I believe is the key point that will drive the profits higher and will drive of the dry bulk market.
The two very very broadly double levels and.
The order book is below 6% of we haven't seen this order book for for ages and the.
And you have to remember and the previews and the preview so.
And commodity commodity wood mingles of all of 2013, the 2014 without the order books of 50 or 45 50 per cent. So the point that we could and the.
And we call them the.
And the patio with the sustainable market.
Right now I think that the the partner and.
Everyone is missing is the visit recovery.
EBIT the divi.
Relative to the way and the of course, and nobody knows but if it develops the way we are thinking the engine.
And the most of the people are thinking it will develop along with the commodity and.
And we'll it will coincide with the with the two or three years of low order book.
Which are coupled with the aging of the fleet and the decoupling the decarbonization of the.
And the requirement for.
Some of the ships the slow down in order to meet the the greenhouse gases.
The strength shows I believe that this will give a major boost to the vessels up.
And well prepared for that space of the market.
If I may add on that the if you consider the slide two and you're in 'twenty, one and where we show the liquidity reached about 184 million against the capital expenditure requirements of about 60.
And I think a 1.2 shades of the looking in the future and the rest of the market environment. We can say that the bi for each $1000 that are the <unk>.
Time charter equivalents increases the.
The the.
All of it over the company will be about a 50 million shows the liquidity, we foresee that the liquidity will increase in the following the let's say walk us from from the markets, which is very important and very warranted.
Okay, Great and that's really helpful. And then I guess I wanted to ask about the like the subpoena and the Capesize I had the contract terminated early and can I.
You know a bit more context on why that transaction was completed and if you'd be interested in doing the same for other vessels.
And look at the and lead this for novel is Oh.
<unk> made the washout of agreement with the chocolate and all of the vessel on the on their request.
Are they are too stupid to pay the differential between the market and.
The of the time and the.
And.
And what was the charter rates for the ships the shipyard around so yes, the remaining on the share.
Charter of the $24800 per day.
And we made the calculations of came out two 8 million and our compensation we received already this money now.
And all of the ship has sort of de lever, we decided that we should keep the ship because of the premium shape and the spot market and fix it on the index link like we have done a big part of all of our period of the vessels.
We have done this one of the 19% above the Baltic Cape Index, We believe the Baltic Cape.
Cape Index.
We'll start performing a lot better of course, and John you already with almost 30000 of the Baltic Cape Index.
And right now and the Chinese new year the.
Dropbox, but I think the up in the next couple of months, we'll see.
The Baltic Capesize index above 20000 and.
And I think that sets the call from the company because of the spot market and the Baltic Cape Index.
Back to 20000 of which as you know it's not the it's not the big events.
These days.
The company will be receiving the money it was of the saving on the origin of the charters. So we have this flexibility we took the decision on Linda and the last quarter of last year of any periods of the business we were fixing to.
And to keep it to keep it index linked because we believe the we believe and the market and we wanted to enjoy the website does for US. It will happen we have a volatile seven panamax vessel and two capes and index linked.
So even the ships built oh, three or all four of them now that are enjoying a range of 17 and $18000 per day.
All of their video of the charters so.
I think that was a good opportunity for the us towards.
The Warsaw disruptive and also the good for all of our charters of which were first loves the perform.
Brilliantly for seven years, and they paid the new compensation.
Now on the on the on the on the other contract true that we never had the hint about the the the respective charters want to make.
Anything like these are the want cheap and that has the long term.
No time periods. The remaining of another 10 years of loss of 11 years.
The charter of make an investment of the shape of the malls and environmental investment of auditing the.
The scramble and things like that so I mean, the our intention is to maintain the shape and the perform all aspects of the party. The other big company conglomerate of whenever had the problem and the first 10 years of the chunk of it.
So we don't expect any more contracts to be treated that way.
At the same time, we're very happy with the with the with the standup the Wow wall Counterparties and the because when we fix ships, we've things of this and most important to us.
Element.
Our long experience and so with whom we fix and the not only the rate, but all of the reputation of the charter and the security to send the and the guarantees that we get for although long term chocolates for.
So it's it's looking good at the moment, but you know I mean, and we'd have to wait and see.
All of the market develops the right now you know we are seeing.
And the middle of Chinese new year. The ships are earning 25000 of the loss of day, and the Atlantic or $18000 and the Pacific.
So it's a it's sitting on the looking good because the last time I remember the sort of market and the first quarter was 2011.
And I think something similar is happening of the moment.
Okay, great. Thanks very much.
Thank you.
Ladies and gentlemen, as a reminder, its star one if you have any questions.
Yeah.
Okay that all makes all of the questions coming sort of I will now hand back to management for closing remarks. Thank you.
Thank you very much for attending our.
Presentation, and our quarter results.
And.
We're looking forward for discussion you and about three months for.
Our first quarter results, thank you to own and the other.
Out of a nice day.
Thank you very much ladies and gentlemen, and that does conclude the call. Thank you everyone for joining you may now disconnect.
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